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Entrepreneurship 8 th Edition Author: –Robert D Hisrich, –Micheal P. Peters –Dean a Shepherd

BZUPAGES.COM CHAPTER 5 Identification And Analyzing Domestic And International Opportunities

BZUPAGES.COM Group Member’s Usman Akhtar Roll No Danish Hussain Roll No M. Taha Khan Roll No Imran Khan Roll No 07-37

BZUPAGES.COM Opportunity Recognition And The Opportunity Assessment Plan Opportunity assessment plan is not a business plan: 1.Be shorter 2.Focus on the opportunity, not the venture 3.Have no computer-based spreadsheet 4.Act or wait on an opportunity

BZUPAGES.COM Opportunity Recognition And The Opportunity Assessment Plan Opportunity assessment plan contain four section: Two major and Two minor sections. MAJOR SECTIONS: 1.first major section: Develops the product/service idea, analyze the competitive products and companies

BZUPAGES.COM Opportunity Recognition And The Opportunity Assessment Plan MAJOR SECTIONS: 1.Second major section: Focus on the market its size, trends, characteristics, and growth rate

BZUPAGES.COM Opportunity Recognition And The Opportunity Assessment Plan MINOR SECTIONS: Third Minor section: focus on the entrepreneur and the management team in terms of skills and experience. FINAL SECTION: Timeline, successfully launch the venture and translate the idea in to a viable business entity.

BZUPAGES.COM Information Sources Helps in starting the new business. 1.General Information: Help taken from the online websites e.g. (non profit organization). 2.Industry And Market Information: There are the wide variety of database that provide you the significant information about the industry and the market e.g. plunkett (trends), frost and sullivan (specific info)

BZUPAGES.COM Information Sources 3. Competitive company and product information: supply significant information on product and services: Example: business source complete (industry information). 4. Government sources And Search Engine: Census reports & export/import authority Search engine provide industry, market and competitive information 5. Trade Association and Trade publishing: Trade association do market surveys. Trade publishing's provide insight on trends e.g. growth rate

BZUPAGES.COM International versus Domestic Entrepreneurship International Entrepreneur: An entrepreneur doing business across his or her national boundary. It is more complex due to uncontrollable factors: 1.Economics: In domestic: Single economic system, same currency In international: Dealing in differences in level of economic development, Govt. regulation. 2. Stages of economic development: Rational and regional variance. 3. Current Account: The trade status of import/export between countries.

BZUPAGES.COM International versus Domestic Entrepreneurship 4. Type of economic system: Distribution rights Barter (directly exchange) or Third-party arrangements (indirectly). 5. Political-legal environment: Price fluctuation - VAT (value added tax) Political risk analysis (prior to entering into business) critical areas (property right, contract law, product safety & liability 6. Language: Native tongue

BZUPAGES.COM Danish Hussain 07-09

BZUPAGES.COM Technological Environment Technology Varies Across Countries New Products are created based on conditions and infrastructure operating in the country

BZUPAGES.COM Culture Culture refers to common ways of thinking and behaving Culture Includes –Social Culture –Language –Religion –Manners and Customs

BZUPAGES.COM Culture in Entrepreneur’s Context Crossing Cultures are the Problems for entrepreneurs Entrepreneur must have command over country’s language Both Verbal and Nonverbal languages are important

BZUPAGES.COM Culture Norms and Values Social Culture Religion Political Philosophy Economics and Economic Philosophy Education Manners and Customs

BZUPAGES.COM Culture Norms & Value System Social Culture Religin Language Manners & Customs Economics & Economic Philosophy Education

BZUPAGES.COM Social Culture Refers to social institutions in a culture Social Stratification affect the behavior of the people in one particular strata Reference Groups provide influencing values and attitudes

BZUPAGES.COM Religion Ideas for life reflected in values and attitudes of society Impact on entrepreneurship varies Impact depends on dominant religious tenets on attitudes and values

BZUPAGES.COM Manners and Custom Particularly important for entrepreneurs in negotiations Gifts can be important part of developing relationship in a culture

BZUPAGES.COM Muhammad Taha Khan 07-06

BZUPAGES.COM Motivations To Go Global Profits Competitive Pressures Unique Products or Services Excess Production Capacity Declining Home Country Sales Technological Benefits Tax Benefits

BZUPAGES.COM Strategic Effects of going Global New set of wide ranging problems New set of domestic and international regulations Physical and Psychological closeness does matter

BZUPAGES.COM Foreign Market Selection Market selection and market entry strategies are critical issues Decision should base on past sales and competitive positioning Appropriate market-selection model should be followed

BZUPAGES.COM Entrepreneurial Entry Strategies Exporting Nonequity Arrangements Direct Foreign Investment

BZUPAGES.COM Exporting Direct Exporting Indirect Exporting

BZUPAGES.COM Nonequity Arrangements Licencing Turn-Key Projects Management Contracts

BZUPAGES.COM Muhammad Imran Khan 07-37

BZUPAGES.COM Direct Foreign Investment Minority Interests Joint Ventures Majority Interest Mergers

BZUPAGES.COM Entrepreneurial Partnering Amongst best methods for entering International Market Foreign entrepreneurs know country and culture Finding good partner can be beneficial for the entrepreneur

BZUPAGES.COM Entrepreneurial Partnering How to find Good Partner? –Information needed on industry and potential partners –Appropriate trade shows should be attended –Should Check References for the partner –Meet with the potential partner several times before commitment

BZUPAGES.COM Barriers to International Trade General Agreement on Tariffs and Trade Increasing Protectionist attitudes Trade Blocs and Free Trade Areas Entrepreneur’s Strategy and Trade Barriers

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