Learning Packet

Module 3
OPPORTUNITY SEEKING, SCREENING, and SEIZING
Strand and Grade Level: ABM 12, HUMSS Crim. 12, HUMSS Teaching Aide 12, STEM Engr.
12, STEM I.T. 12, STEM Nursing Aid 12, Pre Bacc. Maritime 12
Duration: 1 week

At the end of this module, I can:

• learn how to seek, screen, and seize opportunities in business.
• discuss the methods of generating ideas.
• consider the 4 stages of creating new products.

LESSON PROPER

OPPORTUNITY SEEKING, SCREENING,

AND SEIZING

3S of Opportunity Spotting and Assessment

is the framework that most of the promising
entrepreneurs use to finally come up with the
ultimate product or service suited for specific
opportunity. An opportunity is an entrepreneur’s
business idea that can potentially become a
commercial product or service in the future.

General Rule:
“Find the opportunity first before coming up with a new product or service in the future”.

A. SEEKING THE OPPORTUNITY

Opportunity Seeking is the first step and is the most difficult process of all due to
the number of options that the entrepreneur will have to choose from. It involves the
development of new ideas from various sources as follows:
 • Changes in the environment
• External/Macroenvironment
• Internal/Microenvironment
• Technological discovery and advancement
• Government’s thrust, programs, and policies
• People’s interests
• Past experiences

An opportunity-seeking
Entrepreneur should scan the
environment. It is the
starting point of any venture
that involves understanding
and knowing the intricacies
of the whole environment.
Through environmental
scanning, entrepreneur can
recognize various
opportunities and at the
same time understand
thoroughly the arena where
the future business will
operate.

Importance of Environmental Scanning:

• It clearly portrays the trends,

activities, and development
happening both in the macro
and micro environment
including the interrelated
relationships between the
various forces in the
environment.
• It identifies the expected
threats and opportunities
existing in the environment.
• It points out the possible
factors that will determine the
success of the business venture.
 • It helps define the future path of the business.
• It assists in the formulation of the most appropriate business strategies.

In order for us to scan the environment, we must consider the following

factors/elements under the Micro and Macroenvironment. These are factors affecting
the business; it involves the larger forces (internal/external) that influence business
decisions. These factors can be further grouped into:

a. PESTEL – Political, Economic, Socio-cultural, Technological, Ecological, Legal

• a1. Political Factors are

mostly induced by government
policies and administrations,
which can have a strong effect
in the entrepreneur’s business.

• a2. Economic Factors are

factors which are primarily
caused by changes or
movements in the Philippine
economy that have direct or
indirect effects on the
entrepreneurial venture.

• a3. Socio-cultural Factors

represent a general view of a
locality’s traditions, customs, beliefs,
norms, and perceptions.
a4. Technological Factors basically refer to the
trends and developments in computer and
information technology that have impact on
business.

a5. Legal Factors are the elements

and bodies that are directly involved in
the legislation and interpretation of
laws and ordinances directly affecting
the business.

• a6. Environmental/Ecological
Factors should be given much
importance especially when the
world has already suffered
severely from human- induced
calamities.
b. Industry Environment -- Government, Suppliers, Customers, Competitors,
Employees, Creditors

• b1. Government
refers to the
system or
institution that
handles the affairs
of a particular
country.

• b2. Suppliers refer

to individual persons or
companies that provide
the required materials,
parts, or services to the
business.

• b3. Customers are the buyers of goods or

services produced or rendered by the
business. Every business must constantly
evaluate and study the behavior, tastes,
preferences, inclinations, and even future
activities of the customers.
 • b4. Competitors are the
forces existing in the industry
environment that produce, sell,
or render products or services
which are similar to those of the
business. Direct Competitors –
produce and sell similar products
or services. Indirect Competitors
– produce and sell substitute
products.

b5. Employees are the

workers of the business who
are highly responsible for
the production of goods or
delivery or services to the
customers. They help
ensure the quality and
quantity of products or
services provided to the
customers.

b6. Creditors refer to banks, financial

institutions, and financial intermediaries
engaged in the lending of money to the
borrower usually for a fee or charge in the
form of interest.

Methods of Generating Ideas

1. Focused Group Discussion (FGD) is conducted by an entrepreneur with the
assistance of a moderator to gather the views of selected consumers on certain issues
related to their buying behavior.
2. Brainstorming is an activity similar to an FGD that allows the participants to
share creative ideas using the following rules: (a) no destructive criticism or
judgement is allowed; (b) wider ideas are accepted; (c) more ideas are preferred;
and (d) improvement of others’ ideas is allowed. In short, brainstorming is a fun
discussion with lenient rules.

3. Brainwriting or Internet brainstorming is exactly the same as brainstorming

except that the channel used is not face-to-face, but in writing or online.

4. Problem inventory analysis is similar to the FGD except that the participants
are already given an inventory of product or service problems. Participants will just
identify from the list given the compelling problem(s) of a potential product or service
instead of generating the ideas from them.

B. SCREENING THE OPPORTUNITY

Opportunity Screening is the process of cautiously selecting the best opportunity. The
selection will depend on the entrepreneur’s internal intent and the external intent
which will address the compelling needs of the target market.

The entrepreneur should say no to an opportunity if it does not contain any of these
business opportunity elements:

• Has superior value to customers

• Solves a compelling problem, issue, a need, or a want
• Is a potential cash cow
• Matches with the entrepreneur’s skills, resources, and risk appetite

C. SEIZING THE OPPORTUNITY

Opportunity Seizing is the last step in opportunity spotting and assessment. It is the
“pushing through” with the chosen opportunity.
Innovation is the process of
positively improving an existing
product or service. It is a key driver
for economic growth. There are three
(3) types of Innovations according to

the degree of distinctiveness:

1. Breakthrough innovation may also include inventions; occur infrequently

as these establish the platform on which future innovations in an area are
developed. This type off innovation must be protected by patent, a trade
secret, or a copyright. Examples: Internet, computer, or airplane
2. Technological innovation occur more frequently than breakthrough
innovations. These are technological advancements of an existing product or
service. These innovations need to be protected too. Examples: wireless
fidelity or Wi-Fi, laptop, and jet airplane.
3. Ordinary innovations occur ordinarily as the name implies. These are
commonly originating from market analysis and technology pull instead of a
technology push. This means that the market has a strong influence in the
implementation of an innovation. Examples: unlimited Internet plans of
telecommunications companies, a wireless mouse, and airbus for economical
travellers.

The Four (4) stages of creating new

products:

• Idea stage – in this stage, the

entrepreneur determines what are
the feasible products and/or
services that will perfectly suit the
opportunity.
 • Concept stage – the developed
idea will undergo a consumer
acceptance test. This test includes
getting the initial reactions of the
primary target market and the
distribution channel.

• Product development stage –

in this stage, the entrepreneur
leverages on the information
generated from the prospective
customers via the concept stage.
Determine actual reactions from
prospective customers

▪ Test marketing stage – this stage

validates the work done from the first three
stages to measure success in the
commercialization of the product or service.

RESOURCES: Entrepreneurship in the Philippine Setting- K to 12 Curriculum (Aduana 2016)

Entrepreneurship- K to 12 Applied Track (Morato 2016)
Photos on Google