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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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