Opportunity Search: Divergent Thinking Mode: Meaning ,Objectives Tools and Techniques: Environmental scanning for business opportunity Identification Opportunity Selection: Convergent Thinking Mode: Meaning ,Objectives Tools And Techniques: Market Survey Preliminary Project Report(PPR)

1. TYBBA 2020-21 TERM-I
Course- 502- Entrepreneurship Development
NBN College of Commerce & Science, Lonavala

2. UNIT II
Business opportunity Identification and Preliminary Project
Report (PPR)
 Opportunity Search: Divergent Thinking Mode:
 Meaning ,Objectives
 Tools and Techniques: Environmental scanning for
business opportunity Identification
 Opportunity Selection: Convergent Thinking Mode:
 Meaning ,Objectives
 Tools And Techniques: Market Survey
 Preliminary Project Report(PPR)

3. Business opportunity
• A business opportunity, in the simplest terms, is a packaged
business investment that allows the buyer to begin a business.
(Technically, all franchises are business opportunities, but not
all business opportunities are franchises.) Unlike a franchise,
however, the business opportunity seller typically exercises no
control over the buyer's business operations. In fact, in most
business opportunity programs, there's no continuing
relationship between the seller and the buyer after the sale is
made.

4. According to Peter Drucker there are three types of Opportunities:
Additive Opportunities
Complementary Opportunities
Breakthrough Opportunities
Types of Business Opportunity

5. Market oriented
Feasible
Profit oriented
Specific
Motivational
Legal
Ethical
Product
Essential requirements of Business Opportunity

6. Opportunity Identification
Opportunity identification and evaluation is a very difficult task. Most good
business opportunities do not suddenly appear, but rather result from an
entrepreneur’s alertness to possibilities, or in some case, the establishment of
mechanisms that identify potential opportunities.
Prime Areas of Opportunity Identification:

7. A) Prime Areas of Opportunity Identification:
1) Profits:
In profit making enterprises, profit should not be the end in itself. Profit should
be the beginning, acting as seed money for more products, more payments,
more dividends, more tax payments, more jobs and more opportunities.
2) Growth:
Growth is another primary objective of business. Business should grow in all
directions over a period. An enterprise, which remains stagnant for long, is
presumed to suffer from an organic defect.
3) Power:
Business has vast resources (in the form of money, materials, men and know-
how) at its command. These resources confer enormous economic and political
power on owners and managers of business ventures.
4) Employee Satisfaction and Development:
Concern for employees continues to be an important aspect of management,
contrary to an expectation the human element will lose its significance thanks
to automation.

8. A) Prime Areas of Opportunity Identification:
5) Quality Products and Services:
Those who insisted on and persisted in quality survived competition and
stayed ahead of others on the market Persistent quality earns brand loyalty, a
vital ingredient of success.
6) Market Leadership:
To earn a niche for oneself in the market, innovation is the key factor.
Innovation may be in product, advertisement, distribution, finance or in any
other Held.
7) Challenging:
Business offers vast scope and poses formidable challenges. Success in a
business venture snacks of the abilities of individuals who own and failure
betrays their inability and incompetence.
8) Joy of Creation:
New ideas and innovations are given a shape and are convened into useful
products and services through the business.

9. A) Prime Areas of Opportunity Identification:
9) Service to Society:
Business is a part of society and has several obligations towards it. Some of
them are:
a) Providing safe and quality goods at reasonable prices;
b) Providing employment;
c) Patronizing cultural and religious activities;
d) Maintaining and protecting ecology: and
e) Supporting less privileged sections of people in society like Scheduled
Castes and Scheduled Tribes, physically handicapped, women and
children.
10) Good Corporate Citizenship:
Good corporate citizenship implies that the business unit complies with the
rules of the land. pays taxes to the government regularly, discharges its
obligations to society and cares for its employees and customers.

10. Creativity
Definition:
According to Trott “The thinking of novel and appropriate ideas”
Role of Creativity:
•Generating and identifying opportunities
•Applying opportunities
Creative Output:
•Divergent Thinking
•Convergent Thinking

11. Preliminary Evaluation
Selection of Product or Service
Conduct of Market survey
Contractual programmes to collect
sufficient information about proposed
venture
Succeeding in the market
Steps of Business Opportunity

12. Compatible with the promoter
With Government rules & regulations
Easy availability of materials
Potential market
Cost of the project
Analysis of Risk in the project
Preliminary Evaluation

13. Demand for the product or Service
Infrastructure facilities
Government policies
Environmental factor
Location benefit of the product
Selection of Product or Service

14. Raw material availability
Equipment availability
Marketing & Distribution
Consumer behaviour
Conduct of Market survey

15. Several government organizations now-a-days assist
entrepreneurs in discovering and evaluating business ideas.
Development banks, state industrial development/investment
corporations, technical consultancy organizations, export
promotion council etc.
National and international trade fairs are a very good source of
business ideas. A visit to these fairs provides information about
new products/machines. Trade fairs and exhibitions provide
opportunities for assessing the market trends in terms of demand
potential and type of products required.
Contractual programmes to collect sufficient
information about proposed venture

16. EDP Programme
Objectives of the EDP Programme:
The EDP was considered as a part of the Industrial Policy which was
articulated in the Five Year National Economic and Social Development
Plans, with the following important objectives:
1) To identify and train potential entrepreneurs.
2) To develop necessary knowledge and skills among the participants.
3) To help in analysing the various options to select the most
appropriate product suiting to the entrepreneur and the market.
4) To give a clear picture about the process and procedures involved in
setting up an small scale Industrial unit or a bigger unit.
5) To develop and strengthen entrepreneurial quality and motivation
or need for achievement.
6) To motivate the entrepreneurial instinct.
7) To impart basic managerial skills and understandings to run the
project efficiently and effectively.

17. 8) To analyze the environmental issues to be addressed relating to the
proposed project.
9) To develop various business-related skills of marketing, quality
management production, distribution and human resource
management etc.
10) To make the potential entrepreneurs know about the possible risks and
failures of the project and make them learn how to overcome these
problems.
11) To enable the entrepreneurs to communicate clearly and effectively.
12)To develop team building, technology up-gradation, growth and above
all broad vision about the business.
13)To develop a passion for integrity, honesty and industrial discipline.
14)To make him learn the basics of Industrial Laws, Factories Act and
workers rights and expectations so that he can easily overcome the legal
problems.
15)To formulate the detailed Project Report or projects for the products

18. Following are the important features which help the
entrepreneur to succeed in the market:
1. Study people and their requirements before
beginning any project.
2. Recognize unsatisfied needs.
3. Design product better than competitor
4. Continuous feedback
5. Commitment to innovation
Succeeding in the market

19. Entrepreneurial Opportunity Search and Identification:
In order to establish an entrepreneurial system an entrepreneur needs to
take the following steps:
Establishing of the Enterprise
Personnel
Input Requirement
Idea Selection
Commercial Viability
Technical Feasibility
Process the Ideas
Study of Projects Profiles
Sources of Ideas
Search for Business ideas

20. B) Entrepreneurial Opportunity Search and Identification:
To establish an entrepreneurial system an entrepreneur needs to take the
following steps:
1) Search for Business ideas:
The first step of entrepreneurial system is search for business ideas. The idea
may originate from various sources e.g. success story of a friend or relative,
demand for certain products, visits the trade fairs and exhibitions, study of
project profiles and industrial potential surveys, meetings with government
agencies etc.
2) Sources of Ideas:
A business idea may be discovered from the following:
a) Observing Markets:
Careful observation of markets can reveal a business idea. Market surveys
can also reveal the demand and to take into the account anticipated
changes in fashions, income levels, technology etc.
b) Prospective Consumers:
Consumers knows best what he wants and the habits/tastes which are
going to be popular in near future. Contacts with prospective consumers
can also reveal the features that should be built into a product/service.

21. B) Entrepreneurial Opportunity Search and Identification:
c) Development in Other Nations:
People in underdeveloped countries generally follow the fashion trends of
developed countries for example video, washing machines, micro ovens etc,
3) Study of Projects Profiles:
Various government and private agencies publish periodic profiles of various
projects and industries.
a) Government Organizations:
Several government organizations now-a-days assist entrepreneurs in
discovering and evaluating business ideas. Development banks, state
industrial development/investment corporations, technical consultancy
organizations, export promotion council etc.
b) Trade Fairs and Exhibition:
National and international trade fairs are a very good source of business
ideas. A visit to these fairs provides information about new
products/machines. Trade fairs and exhibitions provide opportunities for
assessing the market trends in terms of demand potential and type of
products required.

22. B) Entrepreneurial Opportunity Search and Identification:
4) Process the Ideas:
Once business ideas are discovered, screening and testing of these ideas is
done. The following considerations are significantly in the evaluation and testing
of business ideas.
5) Technical Feasibility:
It refers to the possibility of producing the product. Technical feasibility of an
idea is judged in terms of availability of necessary technology, machinery and
equipment, labour skills and raw materials.
6) Commercial Viability:
A cost benefit analysis is required to ascertain the profitability of the ideas. An
elaborate study of market conditions and prevailing situation is made to assess
the viability and prospectus of the proposed projects.
7) Idea Selection:
The feasibility report is analyzed to finally choose the most promising idea.

23. B) Entrepreneurial Opportunity Search and Identification:
8) Input Requirement:
Once the promoter is convinced of the feasibility and profitability of the project he
assembles the necessary resources to launch the enterprise. He has to choose
partners/collaborates, collect the required finances and acquire land and buildings,
plant and machinery, furniture and fixtures, patents, employees etc.
9) Personnel:
People are the most valuable asset of an enterprise and this asset does not
depreciate.
10) Establishing of the Enterprise:
This is the last step of the entrepreneurial system. It is very important step. In this
phase, the entrepreneur integrates their resources to establish the enterprise.

25. Divergent thinking is a thought process or method
used to generate creative ideas by exploring many
possible solutions. It typically occurs in a
spontaneous, free-flowing, "non-linear" manner,
such that many ideas are generated in an emergent
cognitive fashion.
Divergent Thinking Mode

27. 1. Six Thinking Hats: (colours are given)
 Questions (white)
 Emotional (red)
 Bad points judgement (black)
 Good points judgement (yellow)
 Creativity (green)
 Thinking blue)
2. Brainstorming
3. Lateral Thinking (Random entry idea generating tool,
Provocation idea generating tool, Challenge idea
generating tool)
Divergent Thinking Tools

28. Environmental scanning
• Environmental scanning is a process of gathering,
analyzing, and dispensing information for tactical or strategic
purposes.
• Careful monitoring of an organization's internal and external
environments for detecting early signs of opportunities and
threats that may influence its current and future plans.
• It is monitoring and interpreting social, political, economic and
technological events to spot budding trends that could
eventually impact industry

29. PURPOSE OF ENVIRONMENTAL SCANNING
• Effective utilisation of resources
• Constant monitoring of resources
• Strategy formulation
• Identification of threats and opportunities
• Useful for the managers
• Prediction of future

30. Factors to be considered for
Environmental Scanning
External
environment of
business
Events
Expectatio
ns of
people
Issues
Trends

31. Ad-hoc scanning - Short term, infrequent
examinations usually initiated by a crisis
Regular scanning - Studies done on a regular
schedule (e.g. once a year)
Continuous scanning (also called continuous
learning) - continuous structured data
collection and processing on a broad range of
environmental factors
Kinds of environmental scanning

32. • SWOT Analysis
• ETOP (Environmental Threat and
Opportunities Profile)
• PEST Analysis
• Five Force Analysis
Environment Scanning Techniques

33. SWOT Analysis
• SWOT stands for Strengths, Weaknesses,
Opportunities and Threats
 Identification of the threats and opportunities in the
external environment and strengths and weaknesses
in the internal environment of the firms are the
cornerstone of business policy formulation.
 It is the SWOT analysis which determines the course
of action to ensure the growth / survival of the firm.

34. A scan of the external macro-environment in which the
firm operates can be expressed in terms of the following
factors:
Political Economic Social Technological
The acronym PEST (or sometimes rearranged as
"STEP") is used to describe a framework for the analysis
of these macro environmental factors.

35. •Political Factors :-Political factors include
government regulations and legal issues and
define both formal and informal rules under which
the firm must operate. Some examples include:
tax policy
employment laws
environmental regulations
trade restrictions and tariffs
political stability

36. • Economic Factors :-Economic factors affect the
purchasing power of potential customers and the firm's
cost of capital. The following are examples of factors in
the macro economy:
 economic growth
 interest rates
 exchange rates
 inflation rate

37. Social Factors
Social factors include the demographic and cultural aspects of the
external microenvironment. These factors affect customer needs
and the size of potential markets. Some social factors include:
health consciousness
population growth rate
age distribution
emphasis on safety
Technological Factors :-Technological factors can lower barriers to
entry, reduce minimum efficient production levels, and influence
outsourcing decisions. Some technological factors include:
R&D activity
Automation
technology incentives
rate of technological change

38. Five force analysis
• Threat Of New Entrants
• Threat Of Substitutes
• Bargaining Power Of Buyers
• Bargaining Power Of Suppliers
• Rivalry Among Existing Firms

39. • Macro environmental and industry scanning
are useful as they reveal current conditions of
market. it help managers to predict the future
characteristics of the organizational
environment and hence make decisions today
that will help the firm deal with the
environment of tomorrow
Why ?????????

40. Opportunities Screening and Selection
Factors to be considered when assessing the
viability of an opportunity:
• Market Potential
• Routes to the Market
• Protection
• Business viability
• Crawl-out costs

41. Stages of opportunity selection
• Sensing an opportunity
• Idea Generation
• Auditing the resources
• Business Environment analysis
• Opportunity acceptance
• Selection of a project

42. Convergent thinking mode:
opportunity selection
• Convergent thinking is the type of thinking
that focuses on coming up with the single,
well-established answer to a problem. It is
oriented toward deriving the single best, or
most often correct answer to a question.
• It provides structural thinking

43. • Convergent thinking is about:
• finding the best solution
• Also known as analytical thinking
– Solutions arrived at via logical arguments
– Try and find the best / optimal form of the solution
• Use your knowledge / understanding of what makes the
best solution to a given type of problem
• The ideas created by divergent thinking are source
material

45. •
•
•
•
•
Knowledge
Probabilities
Logic
Decision making strategies
Answers evaluated from multiple techniques.
Most popular techniques used in
convergent thinking are

46. • Create categories from the data by grouping similar things
together.
• What stands out about the different categories? Establish
evaluation criteria.
In a team use an affinity sort to
recognize patterns.

47. 47

52. Is thisa convergent or
divergent learning activity?

53. Difference between Convergent and
Divergent Thinking
S.No. Convergent Thinking Divergent Thinking
1 Aims for single correct
solution
Creative generations of
multiple ideas
2 Exact, Literal and orderly Creative, associate facts to
generate new ideas
3 Logical solution, focus on
particular aspect and ignore
irrelevant information
Generating alternatives
4 narrowing down of the
choices and choose the
best solution
Try new perspectives and
making connections across
categories
5 Depend on logics Its a natural brainstorming

54. A general view, examination, or
description of someone or
something.
look closely at or examine (someone
or something).
What is Survey???

55.  A market survey is a tool used to gather
information about existing or potential
customers in a certain market or population.
 The study of the spending characteristics and
purchasing power of the consumer who are
within your business's geographic area of
operation; a research method for defining the
market parameters of a business.
Marketing Survey

56. Problems faced by any organization in market are:-
 Customer related
 Product related
 Price related
 Promotion related
 Place related
 Competition
Problems in Market

57.  Problem Definition
 Development of an approach to the problem
 Research design formulation
 Analyzing the sources of information
 Preparation of Data collection forms
 Data processing and analysis
 Report preparation and presentation
Stages of the Market Survey
Process

58. Maintain competitiveness
Analyze market size
Analyze Customer need
Regulation of price
Effective promotion
Distribution Channel Management
Solution= Marketing Survey

59.  Telephonic interview
 Face to face Interview
 Focus group interview
 Direct mail interview
 E-mail interview
 Questionnaire
 Group Discussion
Marketing Survey Tools

60.  Define objectives & specify information to
be collected
 Select a sample
 Prepare questions for survey
 Collect data & analyze information
 Prepare report based on data analyzed
Designing Market Survey

61. Areas for information collection

64.  Desk Research
 Observation Method
 Experimentation
 Depth Interview
 Projective Interview
 Survey Techniques
Techniques of Market Survey

65. It is a formal document that describes specific activities,
events, occurrences, or subjects of a project to explain
progress of the project up to a certain point in time.
This document is presented and communicated at project
status meetings to explain what goals, deliverables and
results are produced and what activities are still in
progress. The document serves as the basis for developing
the final project report.
It is also knows as Feasibility study.
Preliminary Project Report (PPR)

66. A typical preliminary report for projects highlights the following
data:
• Problem/need: A clear description of the problem or need
the project aims to handle.
• Proposed solution: a brief description of how to address the
problem/need.
• Work effort: An analysis summary of work relevant to the
project.
• Status: current state of project work, including activities
completed and unfinished.
• Evaluation: an analysis and assessment of project work by
specific criteria such as cost-effectiveness, feasibility,
manageability, performance, others.
• Schedule: a timeline with specific milestones and events
related to project work.

67.  Understanding Demand
 Assessing Resources
 Marketing Feasibility
 Marking a Timeline
Need of Preliminary Project Report

68.  Background of the Project
 Terms of Reference
 Existing System
 System Requirements
 Proposed Systems
 Financial Aspects
 Alternatives Considered
Contents of Preliminary Project Report