Friday, November 28, 2014

Business Opportunities Lesson 2


 OPPORTUNITY IDENTIFICATION

I.    Entrepreneurial Opportunities
-those situations in which new products, services and processes can be introduced and sold at
greater than their cost of production

II.   The Process of New Venture Creation
III.  The Discovery and Evaluation of Entrepreneurial Opportunities

1.  The Opportunity Cost Principle
-The cost of passing up one investment in favour of another

2.  The Opportunity-Evaluation Process by Zimmerer and Scarborough
-responding to questions that can shed light on the potential for the idea to actually become a product/service upon which a business can be established. The steps can be verified through a business plan.

5 Steps:
a.    ___
b.    ____
c.    _____
d.    ______
e.    ________

3.  SWOT Analysis
Step 1 – List Strengths
Develop a list of all of the internal strengths of the business. Discuss the strengths and clarify any questions or confusion. Examples of strengths could include an experienced staff or good employee training program.

Step 2 – Identify Weaknesses
Repeat the process you used to identify strengths to generate a list of the business’ weaknesses. Weaknesses are internal factors that may impact workforce planning negatively. Examples of weaknesses could include an absence of procedural manuals or lack of an employee mentoring program. It is possible that a strength could also be a weakness. For example, long-time employees could be a strength because of their experience, but may be a weakness because it might indicate a workforce close to retirement.

Step 4 – List Opportunities
Repeat the process to list opportunities. Opportunities are external factors, as opposed to the internal factors of strengths and weaknesses. Opportunities could include new relevant training programs at educational institutions or an emerging diverse workforce.

Step 5 – Identify Threats
Repeat the process to identify threats. Threats are also external factors. Threats could have a negative impact on your workforce planning and could include a projected increase in the cost of employee health insurance or an expected reduction in government funding. Again it is possible that an opportunity may also be perceived as a threat. For example, new technology tools might be an opportunity, but also threaten staffing levels.

Step 6 – Establish Priorities
You will have four lists once you’ve identified your Strengths, Weaknesses, Opportunities and Threats. Use a prioritization process to reduce each of the four lists to five top priorities. Two options for doing this are:
1.    Give each person in the group five sticky dots and have them place the dots beside the options they prefer. They can choose five individual options or place multiple dots on an option they feel strongly about. The option with the greatest number of dots will determine the course of action.
2.    Ask participants to rank the options using a scale of 1 to 5, where 5 points represents their first choice, 4 their second choice, etc. The desired option is the one that accumulates the highest total score.


Step 7 – Discuss Next Steps
The next step begins the process of turning the results of the Environmental Scan and SWOT Analysis into something actionable. Encourage group discussion about the four prioritized lists by asking:
§  How can we maximize the use of our strengths?
§  How can we overcome the threats identified?
§  What do we need to do to overcome the identified weaknesses?
§  How can we take advantage of our opportunities?

Strengths (internal)
Weaknesses (internal)
1.     The agency has an experienced and dedicated workforce
2.     There is a good training program for new employees
3.     Senior management is committed to workforce planning
4.     Human resource staff are easy to work with and willing to try new recruitment ideas
5.     50% of the staff hold a professional certification
1.     Over 50% of the managers and supervisors are eligible for retirement
2.     The agency does not offer a mentoring program
3.     The agency lacks the technology tools to be more efficient
4.     Procedural manuals need to be updated
5.     The current workforce is not very racial/ethnic diverse
Opportunities (external)
Threats (external)
1.     New information technology tools can provide quicker data sharing between agencies and client information retrieval
2.     There are job sharing opportunities with other agencies
3.     A large number of retired baby boomers are considering returning to the workforce on a part-time basis
4.     Federal and state agencies have expressed interest in merging services
5.     Universities are looking for internship opportunities for their students
1.     The demand for workers in the field exceeds the supply of potential workers
2.     There is less federal money available for training grants
3.     Budget and full-time positions have been limited by the legislature
4.     Educational institutions are reducing the number of courses offered in this field
5.     The number of residential treatment centers has been declining steadily

3.  Other Opportunity Seeking Process
a.    Start with yourself
b.    Look at other successful businessman/entrepreneur
c.    Identify/fill market gap
d.    Respond to a problem area
e.    Scan the Media and the library
f.     Ask people
g.    Explore/exploit your creativity


















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