WEEK 2

BUSINESS OPPORTUNITY
SCREENING

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MALAYSIA: A MOST ENTERPRISING CULTURE

AND NATION
KnowledgeAgriculture-based
led by Government

Export of
rubber, tin,
palm oil &
timber

Manufacture
of import
substitution
goods

Export
textile &
electronic
goods

Knowledge Era

Labour
Driven

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1970s

Labour
Driven

Knowledge
Driven

1990s
1980s

1960s

2000s

Technology Era
Industrial Era

Agriculture Era

based
goods &
services

Export high
value added
electrical &
electronic
goods

Investment
Driven

Productivity
Driven
Knowledge-based led by
Private Enterprises

Screening Environment
OPPORTUNITIES

THREATS

Regional Economic/
Business trend

Government Policy /
Initiatives

ENTREPRENEUR
Strength
Global Economic/
Business trend

Weakness
Private Sectors
Initiatives

Other Issues ( Education, Health, Social, Political, Culture)

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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

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Identify Customers needs and wants

Step 1 : Identifying customer needs & wants

Needs & Wants
Products
Something physical
which can satisfied
customer needs and
wants.

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Needs : something
basic which people
must have. Example:
clothing, house, food,
health, basic education,
protection etcs.
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.

Services
Non-physical but able
to fulfill customer
needs and wants

Step 2 : Screening environment, evaluating self, community

& society, value and culture of the potential target group.

Analyze
Environment
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.

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Self

Community

Experience
Knowledge &
skills
Financial standing
Interest
Networking

Norm

Step 3: Analyzing the feasibility of

Opportunities
Legal perspective
Market Competition
level
Funding
Technology availability

Analyze

Feasibility

Raw material supply

Expertise & manpower
Logistic
Sustainability

Risks Level

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Step 4: Select New Ventures

Market Competition
level / Marketing Plan
Operational Plan
( Technology, Supply
Chain)

Analyze

Viability

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Organizational &
Admin. Plan ( Expertise
& manpower )
Funding ( working
capital, fixed assets)
Profitability ( ROI,
ROE, Pay back, Cash
Flow, Risks Level

Step 4 ( cont: )
New venture selected.
Prepare Details Business
Plan.
Execute Plan
Monitor and
Improvement.
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Example business opportunities

AGRICULTURE

Forestry

Veneer Plywood
Logging
Furniture
Sawn timber

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Fishery

Fishing Equipment
Deep-sea fishing
Fish Processing
Wholesales/
distributions

Plantation

Clearing plantation
Planting
Processing
Wholesale/
distribution
Nursery

Poultry

Poultry farming
Processing
Wholesales/
Supplies

Industrial Linkages
FORWARD

BACKWARD

OIL INDUSTRY

Explorations engineering
Steel Fabrications
Oil Rigs construction
Engineering Servicing
Equipment components

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Petroleum Refinery
Petroleum Trading
Engine Oil products
Hydrocarbon raw material
Plastic / resin products

Business Opportunities
High Risks

Business 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

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Financial Risk
Liquidity level
Loan
Credit
Currency exchange