BUSINESS OPPORTUNITY SCREENING WEEK 2 BUSINESS OPPORTUNITY SCREENING 2/19/2019

MALAYSIA: A MOST ENTERPRISING CULTURE AND NATION Labour Driven Export of rubber, tin, palm oil & timber 1970’s Manufacture of import substitution goods 1980’s Investment Export textile & electronic goods 1990’s Productivity Export high value added electrical & electronic goods 2000’s Knowledge Knowledge-based goods & services Agriculture Era Industrial Era Technology Era Knowledge Era Agriculture-based led by Government Knowledge-based led by Private Enterprises 2/19/2019

Screening Environment OPPORTUNITIES THREATS Regional Economic/ Business trend Government Policy / Initiatives ENTREPRENEUR Strength Weakness Global Economic/ Business trend Private Sectors Initiatives Other Issues ( Education, Health, Social, Political, Culture) 2/19/2019

Steps to select new ventures Step 4 – Select one which is suitable to the entrepreneur and develop business concept. Step 3 – Analyze specific opportunities which are feasible to venture. Step 2 – Screening environment, evaluating self, community & society, value and culture of the potential target group. Step1 – Identify Customers needs and wants 2/19/2019

Step 1 : Identifying customer needs & wants Products Needs : something basic which people must have. Example: clothing, house, food, health, basic education, protection etcs. Services Something physical which can satisfied customer needs and wants. Non-physical but able to fulfill customer needs and wants Wants: desire to have more than basic needs. Wants will be fulfill after the basic needs were being fulfilled. Examples: cars, bigger house, traveling, golf club, latest fashions, jewelry etcs. 2/19/2019

Analyze Environment Self Community Step 2 : Screening environment, evaluating self, community & society, value and culture of the potential target group. Analyze Environment Self Community Population structure, Income, taste, preferences Country export & imports Local resources and new technology Industry linkages Government and Private development projects Global and Regional development Currents issues, social, rules & regulations. Experience Knowledge & skills Financial standing Interest Networking Norm 2/19/2019

Step 3: Analyzing the feasibility of Opportunities Legal perspective Market Competition level Analyze Funding Technology availability Raw material supply ? Feasibility Expertise & manpower Logistic Sustainability Risks Level 2/19/2019

Step 4: Select New Ventures Market Competition level / Marketing Plan Operational Plan ( Technology, Supply Chain) Analyze Organizational & Admin. Plan ( Expertise & manpower ) ? Funding ( working capital, fixed assets) Viability Profitability ( ROI, ROE, Pay back, Cash Flow, Risks Level 2/19/2019

Prepare Details Business Plan. Monitor and Improvement. Step 4 ( cont: ) New venture selected. Prepare Details Business Plan. Execute Plan Monitor and Improvement. 2/19/2019

Example business opportunities AGRICULTURE Forestry Fishery Plantation Poultry Veneer Plywood Logging Furniture Sawn timber Fishing Equipment Deep-sea fishing Fish Processing Wholesales/ distributions Poultry farming Processing Wholesales/ Supplies Clearing plantation Planting Processing Wholesale/ distribution Nursery 2/19/2019

Industrial Linkages Petroleum Refinery Explorations engineering FORWARD BACKWARD Petroleum Refinery Petroleum Trading Engine Oil products Hydrocarbon raw material Plastic / resin products Explorations engineering Steel Fabrications Oil Rigs construction Engineering Servicing Equipment components OIL INDUSTRY 2/19/2019

Business Opportunities High Risks Business Risk Financial Risk Risk could be transfer – insurance (fire, loss etc) Controlled risk but not 100% - market forecast quality products, Uncontrolled risk : economy recession, currency value, disaster Liquidity level Loan Credit Currency exchange 2/19/2019