Getting From an Idea to Start-up

Murray Hunter

A Roadmap for today

Create IdeasDecide on what product each group

would want to be involved in.

Screen the Idea for opportunity

Determine whether there is a market and how much competition there is.

Determine if the product can be made.

Look at how to develop the opportunity

Resources, skills, Strategy, how to make, business model

How to get to Mars

We can land a man on the moon and return him successfully to Earth but we are still not too sure

what factors make a firm successful

I can’t tell you why

High Growth

Habitual

Needs based

Lifestyle

Hobby based

Inventor

Retail

Direct marketing

B2B

Product based

Service based

Manufacturing

Engineering

48 different types of Entrepreneurship

Strategic Business Analysis

Resources, networks, capabilities, competitive

environment, etc.

Business Goals

Family Values

The Vision Aspiration

Family Goals

Self Assessment (Self-efficacy)

Decision Making Skills

Knowledge Competencies

Personal Goals

Business Competencies

Knowledge

Production & Operations

Marketing

Personnel

Financial

Risk Management

Horizontal and

vertical expansion

Aspirations

Self view

Income needs

Time Horizon

View of retirement

Opportunity cost of doing

other activities

Passion

Family Considerations

Generational

evolution

Grooming successors

Family aspirations

Lifestyle

Attachment

Asset Fulfillment

Value

Type

Needs

Wants

Liquidity needs

Alternatives

Future (Retirement)

Time horizon

Investment

options

Risk management

Tax planning

Opportunity cost of doing

other activities

Exit barriers

The Individual & Family Family history, Current family

livelihood, Current Family Status.

Motivational Origins

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0mxS61GuTZSdvM&tbnid=ULQRNJeKTqeZrM:&ved=0CAUQjRw&url=http://phototop.info/running-boy-cartoon.html&ei=a33XUfbuK42Qrgeor4CgDw&bvm=bv.48705608,d.bmk&psig=AFQjCNF-Gos6gHy8HTS7SeOAX7HA0ph2UA&ust=1373163239617265

Social

Regulation Technology

Economy How we see & feel about the world

Alternatives:

Both for you and potential customers

The competitive environment

Resources

Skills, competencies & capabilities

Networks

Strategy

Business Model

Influence of com

petitors Influ

ence

of

com

petit

ors

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=43Xcdk3Ehi316M&tbnid=4q4gfg82BVPJtM:&ved=0CAUQjRw&url=http://blog.associatie.kuleuven.be/isabellelefevre/&ei=FX7XUdXFGYHJrQfd-4GYDQ&psig=AFQjCNG6ONJMOly0WdtmShbPXDAlf7yMrQ&ust=1373163409402357

Imitation

Almost straight imitation

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=VsGufXpui_UIJM&tbnid=nB5dsM8Yc1p87M:&ved=0CAUQjRw&url=http://www.jeremee89.com/2011/09/kopitan-logan-heritage/&ei=3uLSUZm1DonrrQelkIDoAw&psig=AFQjCNGPsdOgz1-F0Plq8JW0Lfo5Sxk-Ug&ust=1372861520554414

Even the big companies do it

Scarcity

Visiting nurse

Scarcity determines your level of success

Discovery

Construction

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vh7bZnYbEPkCmM&tbnid=CfQrqUfA8DaUqM:&ved=0CAUQjRw&url=http://guenxgwen.blogspot.com/2013/03/signature-bamboo-charcoal-bbq-pork.html&ei=AO7TUaLeBsaGrgeVjoDQBw&bvm=bv.48705608,d.bmk&psig=AFQjCNEhbeUtK_oeBe1ED0H6rrkOb-K0bg&ust=1372929876415987

Fastfood (General Characteristics)

1. Cheap 2. Good standard of hygiene 3. Good service 4. Fast and efficient 5. Specialize in a particular food 6. Know what to expect 7. A meeting place for people

Charcoal Burger Grill

1. Location near young people (university): convenient

2. Cheap and affordable 3. Good service 4. Authentic charcoal BBQ

burger grill (western style) 5. Convenient meeting place

with WiFi etc.

University

Location

Potential success parameters

Co

nce

pt

Extr

acti

on

Constructed Concept Concept Extraction

A (location) + B (characteristics) = C (constructed Concept)

A

B

C

What type of opportunity is Air Asia?

Images and Connections

Concepts

Ideas

Opportunity

Vision Platform - Perception

Time & Space Potential

Concept Generator – Making Connections

Sources of Opportunity Learning:

Conceptual World

Identifying concepts

Evaluation after experience

Complete re-evaluation (seek further information)

Real World

Experimentation & Testing

Structure common to all opportunities Vision – Outcomes

Time & Space Resources Networks

Skills, Competencies & Capabilities Competitive Environment Strategy – scope & depth

“A Narrative”

Evaluated and Elaborated Upon

The birth of an opportunity

Success recipes are just stories

Blocks to seeing opportunity

Industry & domain knowledge

No Sensitivity High Sensitivity

Ability to see the environment in different ways

Emotional Sensitivity

Locked into the same patterns

Locked into old paradigms of business

Farming in Fiji

Farming is primarily subsistence agriculture

Taro Yam Cassava Ginger

Chillis

Sunday

Monday Morning

Monday Afternoon at the Melbourne Wholesale Market

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=3uN2jrPvPOMmYM&tbnid=XJ5UXznAPzoPOM:&ved=0CAUQjRw&url=http://cjinl.blogspot.com/2013/02/dont-take-things-for-granted.html&ei=Ny_UUYn-HovtrQfai4FA&bvm=bv.48705608,d.bmk&psig=AFQjCNErFqFR6Waqx5dph5PKxyUU2gNTFg&ust=1372946595799558

Level One Imitation See and belief, little thought except for viability- logical thinking

Level Two Creative Imitation See and enhance, maybe with some connection, logic and holistic creativity

Level Three Creating a new business Model

Connectivity of different pieces of information, some imaginatively, or through re-engineering

Level Four Creating something new to the world

Complete holistic, imaginative construction, building from deep and sparse pieces of prior knowledge.

Opportunity Awareness

A

va

ila

bilit

y I

nc

rea

ses

Usefulness Increases

Media Reports

Ideas

Data

Information

Knowledge

Wisdom

The Continuum from media reports to wisdom in relation to availability and usefulness

Where does the informati on come from?

Some random ideas

Introduction

Banana, grape, Pineapple, apple, orange, papaya, Mango stein

6 kilograms in various proportions according to person’s own formula

Honey 2 liters Water 20 Liters Procedure: Place all ingredients together in a sealed tank and mix. Leave for at least one year. This process can be sped up by placing an existing enzyme in the mixture.

Formula I: A General Enzyme Base for Cosmetic Products

Hunter & Yothangrong (2006)

Enzyme (base) Base will consist heavily of citrus fruits

15 Kilograms

Coconut oil or CDE 2 kilogram Ash water 15 kilograms

Formula 4: Dishwashing Liquid

Organic Agro-Chemicals

Existing Thai Organic Products

Changing the paradigm

Small Business Verses Entrepreneurship

Standard food business

Value

New food offerings

Opportunity is about adding value

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=jnrdxqqrrlBWRM&tbnid=ObySGa2vFQUSDM:&ved=0CAUQjRw&url=http://goodfoodshops.blogspot.com/2012/03/dorothy-clive-garden-farmers-market.html&ei=-2_XUee9FozJrQfohoCIDg&bvm=bv.48705608,d.bmk&psig=AFQjCNHcPqduLAsnFOObokD34q_5sCIF6g&ust=1373159795893436

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Dkgn6u3y5-0ivM&tbnid=WCpFAtfRDwXE_M:&ved=0CAUQjRw&url=http://magnumlady.com/2013/02/19/the-sligo-farmers-market/&ei=MHDXUY2wM4nmrAfn1YDICQ&bvm=bv.48705608,d.bmk&psig=AFQjCNHcPqduLAsnFOObokD34q_5sCIF6g&ust=1373159795893436

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ZBOedn3Pbnfo3M&tbnid=AHLp1_nM4nbzHM:&ved=0CAUQjRw&url=http://www.ifood.tv/blog/best-10-grilled-chicken-recipes&ei=GdnUUcLJO4izrAemgoGIBQ&bvm=bv.48705608,d.bmk&psig=AFQjCNFXU8-UkJ8kMV3uxVaKSxBmmQEW0w&ust=1372990089156586

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Ec6jn6ajQ-dWFM&tbnid=I563h-rVWlAlnM:&ved=0CAUQjRw&url=http://www.jenius.com.au/2008/10/salamanca_market_hobart.php&ei=_NnUUdurGojTrQe-k4HoBQ&bvm=bv.48705608,d.bmk&psig=AFQjCNF7sC6oLt1E7aosiq0NnjTGluO2Eg&ust=1372990323110622

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JpiLJiMVCUCG6M&tbnid=XsgxEVJm3AvgtM:&ved=0CAUQjRw&url=http://north-fife.blogspot.com/2010/07/baked-potatoes-at-big-tent.html&ei=NMrUUfTROIbTrQfN7IGYDQ&bvm=bv.48705608,d.bmk&psig=AFQjCNHYWuAMRvgb2vgRHBArikeFCj8gPA&ust=1372986278483447

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=X1028_TwPVChDM&tbnid=AO9vbsQdiA0ikM:&ved=0CAUQjRw&url=http://burninlovebbq.wordpress.com/2011/06/03/tips-for-grilling-great-veggie-burgers-and-mock-brisket-recipe/&ei=CjfUUaaDHMiGrgeYnIHIBw&bvm=bv.48705608,d.bmk&psig=AFQjCNFd_UmVyYaK06IK5qlzkyRPxohzgg&ust=1372948613480704

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0yPUXSkKkdq-rM&tbnid=2uEGccHjGskGuM:&ved=0CAUQjRw&url=http://www.nomeatathlete.com/veggie-burger-reviews/&ei=PDfUUcKlFYHprQf8_YD4Cg&bvm=bv.48705608,d.bmk&psig=AFQjCNFd_UmVyYaK06IK5qlzkyRPxohzgg&ust=1372948613480704

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=gGW-LYDVr1wQwM&tbnid=ep-4at7d6WD0SM:&ved=0CAUQjRw&url=http://www.foodscrazy.com/2010/12/jerrys-vegi-burgers-meredith.html&ei=TzjUUfWyMcS4rgecqoDgDA&bvm=bv.48705608,d.bmk&psig=AFQjCNHk6PZOAS_Jd-wS3hPRnC2TUIhfUA&ust=1372948781572299

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=64MNJzeO-hkqMM&tbnid=3a3Y4PxcCqXytM:&ved=0CAUQjRw&url=http://www.closetcooking.com/2011/04/spicy-pork-bulgogi-banh-mi.html&ei=LMjUUfmsJcaprAeKtYDIDw&bvm=bv.48705608,d.bmk&psig=AFQjCNEeBaNr4cwFQGNrBaNBwqexFs73bg&ust=1372985768273535

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=fQ3Q2Ok-W4QebM&tbnid=EBnpOT5YjYxL9M:&ved=0CAUQjRw&url=http://gaytravelbelize.com/gay-travel-belize-blog/banh-mi-belize/&ei=YMjUUaSiKYatrAeumYCYDw&bvm=bv.48705608,d.bmk&psig=AFQjCNEeBaNr4cwFQGNrBaNBwqexFs73bg&ust=1372985768273535

Assessing an

1 2 3 4 5Does the idea create value over what might already be available?Is this value easily perceived by the potential customer?What risk is involved with the idea? (see risk chart)Does the idea have potential customers and will they support the idea? Can the idea make money? Will this be hard to do?Do I have alternative things I can do with my time? (what is the opportunity cost?)Am I committed? (Am I motivated enough?) Are there great barriers in front of me? (1=yes, 5 = no)Can I handle these barriers? (1=no, 5 = yes)

Idea Appraisal

Sub-Total (score out of 50)

Change In User Habits

Risk None

None

Some

Some

Great

Great

Dangerous

High

High

None

Change in how and where people buy the product

Medium

Medium

Medium

Low

Low

Appropriate Technology

Technology

Scientific knowledge used in practical ways in industry

Oxford Dictionary Definition

Scientific

A way of doing something or thinking: Careful and logical (Adj.)

Oxford Dictionary

Innovation

The introduction of new things, ideas or ways of doing things

Oxford Dictionary

that there “is also the tendency for Asian countries, including Malaysia, to deal with the issue of values in development by Importing many technologies and systems wholesale from

abroad without going through the process of mental transformation necessary to master them fully. Although

Malaysia is going through rapid transformation, our growth is one without development in the context of knowledge

contribution to science, engineering and technology. As long as we are consumers and operators of

sophisticated techniques, plants and technologies imported wholesale from abroad, we are to a certain

extent undergoing a technology-less form of industrialization. This transformation of values and attitudes is a key issue

in the nation’s development agenda”[i] .[i] Asma, A., Going Glocal: Cultural Dimensions in Malaysian Management, Kuala Lumpur, Malaysian Institute of Management, 1995, P. 179.

Tissue Culture

Microwave Oven Pressure Cooker

Chemicals & Spoons, etc. Glassware

• Minimise Production scale to account for initial low sales/production quantities and lower capital investment

• Mobile GMP Facility

• Simplified Technology

Appropriate technology is about keeping out of

Appropriate technology is also a way to gain

Competitive advantage

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=9hiM0xIJreDEIM&tbnid=lDuXIHjmSmgwlM:&ved=0CAUQjRw&url=http://www.anonymousartofrevolution.com/2013/01/the-person-who-says-it-cannot-be-done.html&ei=EuHUUeLUHMGQrQeMjYHoCw&bvm=bv.48705608,d.bmk&psig=AFQjCNEle1QepNiI3E9dhyGPs6TYwicUFg&ust=1372992092037776

1 2 3 4 5Do you have access to the required technology? How expensive is this technology? (1 = most expensive - 5 = least expensive)Are you able to develop the necessary technology? (1=no, 5=yes)Can you modify existing technologies in a way that will make it less expensive? (1 = very difficult - 5 = very easy)Will the technology give you any advantage over others already in the industry?

Technology Appraisal

Sub-Total (score out of 25)

The Summarised

Entrepreneurial

Process

Idea

Turn into Opportunity

Final Commitment

Start-Up

Growth

Sustainability

Creativity

Innovation

Strategy

Sales

NPD

Resource Gathering

Networks

Skills, Capabilities

Resources

Making Connection

Vision Platform

Time & Space

Strategy

Competitive Field

©Hunter (2011)

The Vision Platform Social demographics, culture,

generational outlook, experiences, Cognition, emotions, the psych & psychotic, & cognitive traps, etc.

Time & Space Stage of economic, social,

legal, & knowledge development,

The Ability to Make Connections

Cognition, creativity, problem solving, creative tools

The Sources of Opportunity

Market Void, Technology Infusion, Structural Changes,

Resource Monopoly, Regulation, Non-Innovative

The Resource Base

Personal Skills & Competencies,

Enterprise Capabilities

The Opportunity

Gap

The Ability to Build Networks

The Competitive Environment Influence of suppliers, customers,

complementary goods & substitutes, barriers to entry, the competitive field & influence of social,

technology, economic, & regulatory factors

Strategy

Hunter (2012)

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=s4Rq9Hv1vkEdxM&tbnid=JVFLB1L0tBaJtM:&ved=0CAUQjRw&url=http://blogs.extension.iastate.edu/moneytips/2013/05/30/whats-your-resources/&ei=lEbVUb_lFYTTrQfkhYGQBQ&bvm=bv.48705608,d.bmk&psig=AFQjCNEmMNMnb0GZkXV6dgXl1w43XIDmSg&ust=1373018056345689

Resources

Tangible Resources Intangible Resources

Product Designs

Knowledge

Intellectual property

Research & Development

Creativity Brands

Team Specific Experience

Reputation

Organizational Routines

Relationships

Passion

People

Plant & Equipment

Property & Location

Technology

Cash & Other Finance

Access to inputs

Business model

Time

Organizational Culture

New ventures with fewer resources and lack of history in an industry will have issues of legitimacy to overcome (Aldrich & Fiol 1994).

Patents

Brands

Channel Capacity

Product Design

Market Share

Firm Size

Financial resources

Technology

Size

Access to Inputs

Barriers to Entry & Differentiation Advantage

Bargaining Power

Cost Advantage

Competitive Advantage

Venture Growth

Time

Pre-start-up Start-up Growth Maturity Paradox Period Move to professional management

Management orientation and possible decline

Entrepreneurial orientation and the

pursuit of more opportunities

Evaluate opportunity & imagine what

resources needed

Create business model

Acquire & allocate resources

Cash & Finance

Initial asset & use and/or acquisitions

Creation of brands

Acquire tangible resources

Require more working capital

Seek equity partner or

finance

Develop intangible resources

Employ people Select location

Identify necessary

technologies

Create product designs

Forming organizational

culture

Develop organizational

routines

Formal research & development

Develop relationships &

reputation

Opportunity

Reso

urce

Re

quire

ment

s

Avail

able

Reso

urce

s

Reso

urce

Gap

Inputs are combined, transformed and converted

into capabilities. Organizational capabilities

are used to support strategies. The objective is to create value in line with

the value proposition through defined distribution

channels to generate a revenue stream.

Distribution Channels

Strategies

The Venture People Plant & Equipment Property & Location Cash & Other Finance Technology Product Designs Knowledge Brands Reputation Relationships Organization Culture Access to inputs Intellectual Property Research & Development Creativity Team Specific Experience Organizational Routines Passion

Inputs Outputs

Perceived problem observed and value

proposition proposed through a product and/or service

Product/Service

Revenue Stream

Feedback influences inputs such as reputation, R&D direction, available inputs, level of technology, etc

Determine your needs

Enterprise Capabilities

Specialized Resources

Applied Resources

Generic Resources

Input Resources Raw Materials Various Support Services Consultancies Fixed Costs

People

Property & Location Cash & Other Finance

Technology

Business Model

Intellectual Property

Knowledge

Brands

Reputation Organizational Culture

Organizational Routines

Basic Plant & Equipment

Office Space

Product designs

Proprietary Machinery

Creativity Team Ind. Experience

1 2 3 4 5Can you acquire all the necessary resources you listed above? (1 = no 5 = yes)Are there any resources I can't acquire? (1 = yes 5= no)Can I do without them? (1 = no 5 = yes)Can I develop them as I go along? (1 = no 2 = yes)Will the resources you have give you flexibility? (1 = no 5 = yes)

Resources Appraisal

Sub-Total (score out of 25)

Getting the right skills around you

Start-up Growth Stability

Various cognitive skills Research skills

Opportunity Competency

Entrepreneurial Competency

Relationship Competency

Strategic Competency

Management Competency

Idea Evaluation

Idea Discovery

Organizational Competency

Research skills Evaluation skills Decision making skills Networking skills Interpersonal & communications skills

Specific technical skills (product) Basic administration skills Resource gathering skills Interpersonal skills Business plan preparation skills Oral presentation skills Production engineering skills Organizational development skills Sales skills Promotional skills Start-up finance skills Networking skills Decision making skills

Various Cognitive Skills

General management skills Interpersonal skills Accounting skills Finance skills Cash-flow management skills Marketing skills Sales skills Human resource management skills Logistics management skills Manufacturing management skills

Leadership Competency

Creativity Competency

Entrepreneurial Start-Up Competencies

EntrepreneurialStrategic

Conceptual

Opportunity

Commitment

Management

Managed Company Competencies

Entrepreneurial

Strategic

Conceptual

Opportunity

Commitment

Management

Competencies Required During the Essential Oil Development Process

Screening & Bio-prospecting

Propagation & domestication or

introduction

Planting, cultivation & maintenance

Harvesting, Extraction and

wastage handling

New product development &

creation of value added products &

activities

Strategic, operations, finance and technical

management

Product & venture management

Marketing & commercialisation

Sustaining and growing the enterprise

(adapting & survival)

Output: Result/Performance, Sustainable and healthy enterprise or

a struggling and failing enterprise

Opportunity and technical competencies require:

Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical

chemistry. Market and specific technical product knowledge

Technical Competencies require: Plant physiology, micro-propagation, nursery

management, agronomics

Technical competencies require:

Bio-system engineering, Soil management,

entomology, plant nutrition, Agronomics, field

management, irrigation engineering

Technical competencies require:

Thermodynamics and plant physiology, heat transfer, distillation engineering,

chemistry, chemical engineering, agricultural

engineering, environmental engineering (waste

management)

Strategic, opportunity and technical

competencies require: Project management,

marketing management, chemistry, cosmetic

chemistry, perfumery/ flavour knowledge,

Packaging & design, manufacturing

engineering

Strategic, organizational, relationship opportunity competencies require:

Business strategic, industry knowledge, industry

networks, ability to raise finance, ability to plan,

implement & adjust, leadership, entrepreneurial

Strategic and organizational

competencies require: Administrative, financial management, technical management, strategic

management, personnel management, resources

management, entreprenuerial

Sub-Skills Book-keeping Product costing Administration Presentation Sales Business plan preparation Data-entry Negotiation Budgeting Empathy Imagination Sense of fairness Interpersonal Technical (product) Promotional Teamwork Communication Accounting procedures Self reflection Networking Ability to inspire Deal with uncertainty Resource gathering Paperwork

Skills Marketing Production Scheduling Delegation Product design Finance Planning Sourcing Human resources Organizational Decision making Finance Operational

Personal Competencies Entrepreneurial competency Managerial competency Opportunity competency Leadership competency Creativity competency Conceptual competency Ethical competency Strategic competency Emotional intelligence Commitment competency

Enterprise Capabilities New Product Development Logistics capability Manufacturing capability Management capability Growth capability Strategic capability Learning capability Marketing capability Innovation capability Technology capability Organizational culture

Dynamic Capabilities

Strategy Anchors

Competency Present Not Present Comments

Technical 1. Botany2. Plant Physiology3. Chemistry/Analytical4. Micro-propagation5. Nursery Management6. Environmental Engineering7. Chemical

engineering/thermodynamics/etc8. Soil Management9. Agronomy/plant nutrition/field

management10. Entomology11. Irrigation engineering12. Agricultural Engineering13. Regulation knowledge14. Cosmetic chemistry/food etc15. Perfume/flavours16. Packaging & design17. Consumer product manufacturing

Basic

BasicExperienc

eExperienc

eExperienc

eBasicBasicBasic

LowLowLowLowLowLowLowLowLow

Need guidanceNeed assistanceNeed guidance Assistance AvailableCan design Need appraisalUse contractorUse instituteReplicated experimentsWith EnvironmentUse contractorCan developNeed assistanceLearn from experienceUse contractor

Opportunity/Entrepreneurial/Commitment1. Able to screen environment for

opportunities2. Able to evaluate opportunities3. Commitment level

YesYes

Passionate

Need to see realistically

Relationship1. Have relationships in target

industries2. Have relationships in research

area3. Have relationships in finance

industry

A fewA fewSome

Organising/Management1. Able to project manage2. Able to administrate3. Able to financially manage

operation4. Able to undertake research5. Able to keep key people

motivated

YesYesYesYesYes

Strategic1. Understand dynamics of market

and industry environment2. Able to plan for a business

within this environment3. Able to implement, evaluate

and adjust plans in this environment

YesYesYes

Believe so but not tested

Curiosity

Exploration

Discovery

Excitement

Dedication

Mastery

New Skills

Confidence/ Self Esteem

Security & Purpose

Insight

Passion for the domain

Openness to Learning

Obsessive Persistence

Wisdom

Skills Appraisal

Sub-Total (score out of 25)

1 2 3 4 5Do I have the necessary skills to undertake the venture?

If, not can I acquire and develop these skills (1 = difficult 5 = yes)

Is there a large gap between what skills I have and what skills I need?

How critical are these skills I don't have? (1 = critical 5 = not critical)

Will these skills you have give you flexibility? (1 = no 5 = yes)

(Building) Networks

Different types of Networks

Support Networks

Resource Networks

Regulatory Networks

Development Networks

Sales Networks

Peer Networks

Two elements:

Technical Know How

Technical Know Who

Decision Maker

Inside the firm Father

Accountant

Bank

Customer

Employees

Property Owner

Competencies

Friends

Expectations

Suppliers

Auto Parts manufacturers

Automobile manufacturer

Coordination, Kanban, JIT, etc.

Independent Dealerships

Sales coordination, Custom Ordering

Service Centres

Consumers

In constant communication about service times and

other car owner information Road Side Assist

Schemes

This is what it is about

Business is technical

“Know howwho”

Doing business without networks is an

insurmountable barrier to entry

No Network – No Business

Sources of Technology

Suppliers

Customers

Competitors

Regulators Other

Stakeholders

Critical

Necessary

Important

Useful

Not Important

Customer A

Customer B

Customer C

Wholesale A

Wholesale B

Supplier A Supplier B

Supplier C

Backup Supplier A

Backup Supplier

B+C

Supplier D

Supplier E

Accountant

Bank

Father

EPA

Taxation

Systems Software

Best Friend Competitor A

Competitor B

Competitor C

Stakeholder category

Priority

1 2 3 4 5Do I know the potentially important stakeholders? (1 = no, 5 = yes) Can I get to know the important stakeholders I don't know? (1 = no, 5 = yes)Will these stakeholders support me? (1 = no, 5 = yes)How open and approachable are the important stakeholders in this industry? (1 = Closed, 5 = open)Are there any special membership restrictions in the industry (1 = yes, 5 = no special membership restrictions)

Network Appraisal

Sub-Total (score out of 25)

Networks are the keys to building value chains

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=o5fBFcUesRMXjM&tbnid=a_WUezdQDy3G8M:&ved=0CAUQjRw&url=http://catholicnotebook.blogspot.com/2010/09/september-26-2010-26th-sunday-in.html&ei=jobXUZnyAYL5rQfI0YCABw&psig=AFQjCNGdgRlVUg4kQjCr9nNp3V4ZNpNQ9g&ust=1373165567537054

Production Approach

Usually

OEM

Production

Sales Approach

Marketing Approach

The Branding ParadigmThe Level of

Competition

The Channel of

Distribution

The Marketing Mix

Product

Price

Position

Promotion

Customer Solution

Customer Cost

Convenience

Communication

Technology Approach

Veggie burgers

One stall Franchise Manufacture & Market

One product idea but 3 different types of business

1 2 3 4 5

Do I know exactly where I want to be in the value chain? (1 = no, 5 = yes)Can I get to that position? (1 = no, 5 = yes)Do I have the skills? (1 = no, 5 = yes)Do I have the resources? (1 = no, 5 = yes)Do I have the networks? (1 = no, 5 = yes)

Value Chain Appraisal

Sub-Total (score out of 25)

Strategy

Consumers

Positioning

Targeting

Segmentation

Market Identification

The Causation Process

Product idea to compete with

existing products in market

Attempting to create

some form of

competitive advantage

Opportunity

Refining the Idea

Concept

The set of possible ideas/products/markets

The Effectuation Process

Potential new novel product extending

market field or creating a new one through existing or new channels and business models.

How do you develop strategy?

X X X X

Evolved Strategy

Tactics Applied

Trial and error tactical use with various levels of Success/Non-Success

Vision & Goals

Modified Vision & Goals

Actual Path & Performance

Wind in the case of a yacht or environmental turbulence in the

case of a firm.

It’s about finding your own strategy

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=u0MXrDaaq-YwkM&tbnid=-bCfLM83Y1jL8M:&ved=0CAUQjRw&url=http://kualalumpurcity.olx.com.my/kedai-dobi-wash-n-dry-kini-dibuka-di-bukit-jalil-iid-40607983&ei=8CDWUemLDcjTrQf0wYGQDg&bvm=bv.48705608,d.bmk&psig=AFQjCNEVehnHO7wVM0SZOHka07ZoFtMq8Q&ust=1373074023465828

Customers

Laundry Service

Service Convenience Price Quality Relationship

Find the important mix for your business

Tools to help you

Industrial

Industrial Markets These markets usually buy

materials and components to manufacture other products, or supplies necessary to run a

business. Manufacturers usually deal directly

with industrial customers or act through distributors.

Consumer

Consumer Markets Consumer products include automobiles, white goods, electrical goods, fast moving consumer

products and services, including financial, insurance, travel, etc.

Companies market and sell direct to consumers, through distributors and/or retailers, etc. Many manufacturers tend to

service national markets, while many service businesses are localized, except where companies have overcome fragmentation.

International

International Markets An international market could be any type of the other markets excepting it

is in a remote location from the enterprise.

The entering firm will have to decide whether to enter directly through a fully owned

subsidiary, joint venture with a local partner, utilize a distributor or other representative,

license or franchise the product or service to a local company. The enterprise will also have to adapt its strategies to the local ways of doing

things.

Resale Resale Markets Second hand goods, some

internet sites like eBay, Auctions & Real Estate, etc.

Sales often undertaken by intermediaries, pricing varies

according to demand & supply, power in market according to scarcity

Government

Government Markets Usually high volume capital &

service products. Goods usually decided upon through issuing specifications and tenders. In

some industries the government market can be up to 60% of the total market. This market although decisions made

through tenders, strategies based upon building strong relationships necessary.

Types of Markets

Competitive Rivalries Lemongrass quick yield and straightforward to cultivate and distil – expect high elasticity of supply from both existing and new producers. Producers of substitutes very aggressive

Bargaining Power of Suppliers Collecting the most suitable planting material require effort. Extraction and harvest .technology needs to be acquired or developed Analytical equipment or service maybe expensive/remote.

Substitutes Citral (main constituents) can be produced from a number of chemical feed stocks. Alternative oils (litsea cubeba) cost much less to produce. Lemon myrtle oil much smoother and acceptable to end users Many alternatives to lemongrass in product formulations.

Trends & Technology Alternative technologies to steam distillation (CO2) can make much smoother oil but will increase capital needs greatly. Natural, exotic, organic, FAIRTRADE could increase oils popularity (?) if seen as exotic.

Substitutes

Tre

nd

s &

Te

ch

no

log

y

Bargaining power of buyers

Bargaining power of suppliers

Competitive Rivalries

Re

gu

lati

on

Regulation SCCP placed lemongrass oil under scrutiny as a cosmetic ingredient in EU.

Industry Competitors

Intensity of Rivalry

Bargaining Power of Buyers Currently small item of trade in flavour industry, strong relationships with established producers.

Opportunities

Cognitive Bias

An identified market where enterprise resources and competencies will be able to exploit

The potential opportunity will have a large enough market size to sustain the enterprise

The enterprise will be able to take advantage of this opportunity better than any other competitors

Outside elements in the supply chain will support the enterprise

Any factor or group of factors that will allow the enterprise to grow in a

sustainable manner within the market environment

Threats

Competitors identifying the same opportunities and enacting upon them

The regulatory environment and potential changes within it

Inability to penetrate the existing supply chain and make alternative strategies

Dependence on survival from a single or very few customers

Depending on a single product for total Any factor or group of factors that may potentially hinder enterprise growth in a sustainable manner without any contingencies verse

acts of God, bad weather, drought, etc.

Strengths

Personal and enterprise competencies, knowledge & experience that can be utilized for the benefit of the enterprise

Facilities, infrastructure, financial backing & liquidity, long timeframe view

Ability to learn through research and experimentation

Any network connections with industry and access to the supply chain for both information and marketing

Ambition and vision (but not delusional), focus & commitment

Ability to innovate technically, market and organizational wise

Any factor or group of factors that can assist the enterprise gain

competitive advantage over its competitors

Weaknesses

Competency gap Short term timeframe, no fall back position if positive results

delayed or there are technical or market failures Poor infrastructure that hinders production or marketing Shortage of funds to undertake project to completion Qualified or lack of commitment by any key people within

organization Lack of network, knowledge and access to supply chain

Any factor or group of factors that can hinder the enterprise gain competitive advantage over its

competitors

Opportunities are seen with bias according to knowledge,

experience, wisdom, educational background, market knowledge,

competencies, etc.

Risks/ Uncertainties

Any factor or groups of factors

that make outcomes uncertain

in the future

Any factor or groups of factors that may lead to venture failure

High Market Growth Low Strong Weak Relative Competitive Position

Crude Essential Oil Steam Distilled

Essential Oil under

CO2 extraction

Cosmetic production for international

market

Organic Cosmetic

production for international

market

Essential Oil Based Agro-

chemical

Organisational Capability Creative, Opportunity, conceptual, strategic, Learning, Organisational, financial, Technical,

Marketing, Networking and Commitment Competencies

How the Business is Currently Performing

The base for potential future Development

Resources Existing and Available to the Business

The Set of Potential Opportunities

Tim

e a

nd C

om

pany

Evo

lutio

n/C

han

ge

Enterprise Performance

Personal Objectives

Stre

ngth

s and W

eaknesse

s T

hem

e Personal Resou

rces Netw

ork Product M

anagem

ent Fin

ance

4 Ps & S

kills Facilities A

ttributes

Exte

rnal In

fluence

s &

Thre

ats

M

arke

t E

conom

y Reg

ula

tion T

echnol

ogy

P

ositio

n Soc

ial S

ituat

ion Chan

ge &

Com

petition

A

spirat

ions

D

evel

opm

ent

Key internal influences on the strategic

process

The process of product/market development

Key external influences on the strategic

process

Competitive Position

Cognitive Bias

Structural/ Support Strategies

Interventional Strategies

Your Moves

Your Competitor’s

Moves

Your advantages & Disadvantages

©Hunter (2011)

Range of Generic Strategies

Convergence

Divergence Aspirational Brand Strategy

Duplication & Replication

Creating Customer Utility

Tactical Combination

Extension

Synthesis

Segmenting

Differentiation

Creative Imitation Market Leadership New Business Model

Imitation

Cost Advantage

Technology Superiority

Overcoming Fragmentation

Dynamic Strategy

Opportunity

Foundation (Capacity Building) Strategies

Finance, Gearing, Asset Management, Location

Decisions, Identity, Mission, etc.

Enterprise capabilities

Administrative (Support) Strategies

Financial (operational), Procurement, Logistical, Human Resources, Operational Policies,

Work Procedures, etc.

Operational Strategies Competitive strategies: Marketing,

Sales, Advertising, Channel, New product development, Intellectual

property, supply chain, etc. General Operational: Manufacturing, product & customer service support,

accounting, etc.

Tactical Actions & Behavior

Field Promotion, Discounts, Incentives, Selling, Product

Styles, etc.

Sales Revenues, Profitability, Other market Measures, Growth, Sustainability, Survival

Opportunity

Manifestation as a set of strategies (Product, Channel, Business model, etc.)

Factors and causes leading to the Opportunity Conditions

(Social, Economic, Technology, & Regulatory Conditions)

The Sources of Opportunity (Market Void, Technology Infusion, Structural

Changes, Resource Monopoly, Regulation & non-Innovative Sources)

Resources

Resources

Resources

Resources

Resources

Capabilities

Capabilities

Capabilities Capabilities

Capabilities

Opportunities

Environment

Firm Opportunity Trajectory

Firm Alternative Opportunity Trajectory

Field of Network Based

Opportunities

Case study

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=YHN5BJEhuxUyQM&tbnid=3dhdAKs0ZW5PgM:&ved=0CAUQjRw&url=http://momoandcoco.wordpress.com/2012/02/28/paul-a-young-fine-chocolates/&ei=JyjWUc27CoSyrgeX44HICA&bvm=bv.48705608,d.bmk&psig=AFQjCNEbqqnCawuz8Dp4C4gY7LCR-EJDgw&ust=1373075231702556

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=e982652B72Y-0M&tbnid=E_Hi8AOfZliVxM:&ved=0CAUQjRw&url=http://www.mamorchocolates.com/category/47-lite-n-easy.html&ei=qyXWUeC1N5CnrAfGwoH4Bg&bvm=bv.48705608,d.bmk&psig=AFQjCNEbqqnCawuz8Dp4C4gY7LCR-EJDgw&ust=1373075231702556

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=mLpJGNY1oKamMM&tbnid=zkcKhZLlh_PQ1M:&ved=0CAUQjRw&url=http://www.mamorchocolates.com/36-our-fabulous-customers-enjoying/detail/972-michelle-bagnall-and-group-jpg.html?tmpl=component&ei=4iXWUfiHLoqyrAeKxYCIDA&bvm=bv.48705608,d.bmk&psig=AFQjCNEbqqnCawuz8Dp4C4gY7LCR-EJDgw&ust=1373075231702556

Mamor Chocolates- Melbourne Chocolate History Tours™

Organically produced high active concentration shampoo with product

variants to suit various conditions.

Central Theme (Product Proposition)

Underlying Assumptions High & discerning

market end. Customers who

want mass custom produced

products.

Low competition in segment.

Rapidly growing segment.

Products match personal values.

Sustainable

Strategy Characteristics

Brand Theme

Features Benefits Signal

Attributes Channels

Things are always a

mystery until we get there

1 2 3 4 5Are there a number of strategy options for my idea? (1 = no, 5 = yes)Can I overcome any barriers of entry within the market and value chain? (1 = no, 5 = yes)Can I overcome and/or react to external threats? (1 = no, 5 = yes)Do I have the right strengths to pursue my desired strategies? (1 = no, 5 = yes)Do any weaknesses I have prevent me from implementing the strategies I have in mind? (1 = yes, 5 = no)

Sub-Total (score out of 25)

Strategy Appraisal

New Product Development

Hunters Brands Sdn. Bhd.Standard Product Costing Sheet

Product: Ant Attack Liquid 100ml Size: 0.1

Formulation No: Date: 16/6/03

Units per packet: 1 No. Packets per Outer Carton: 6

Individual Unit Size: 0.1 Batch Size (Kg): 100

Part 1: Chemical Materials

Ingredient Quantity Price ExtensionEthanol 93 $2.500 $232.500Clove Oil 5.25 $35.000 $183.750Peppermint Oil 0.7 $38.000 $26.600Citronella Oil 1.05 $35.000 $36.750

$0.000$0.000$0.000$0.000$0.000$0.000$0.000$0.000$0.000

100

Batch Cost: $479.600 Cost Per Kilogram: $4.796

Wastage Cost per raw unit: $0.480 Factor Cost per Packet: $0.480

0.00% Cost Per Outer Qty: $2.878Ctn Cost per yield: $2.878

Ave. Yield/ Units per Batch: 1000 Date Last Updated:

Part 2: Packaging Materials

Item Unit Mea Quantity Price ExtensionAnt Attack Inner Box unit 6 $0.190 $1.140Ant Attack 50ml Label unit 6 $0.095 $0.570Ant Attack Bottle unit 6 $0.750 $4.500Ant Attack 50ml Outer carton unit 1 $0.450 $0.450

$0.000$0.000$0.000$0.000$0.000

Total Packaging: $6.660

Part 3: Labour

Mean Labour Cost $0.70Mean Fixed Overhead $0.00Mean Administrative Cost $0.00

$0.70 Part 4: Total Product Cost

Unit Carton % TotalMaterials $0.480 $2.878 28.11Packaging $1.110 $6.660 65.05Labour $0.117 $0.700 6.84Total $1.706 $10.238

Part 5: Selling Prices and Margins

Sell Price Gross Contribution % Margin Transfer Price -$10.24 #DIV/0! Sell 1: Whole/Distributor -$10.24 #DIV/0! Sell 2: Retailers -$10.24 #DIV/0! Sell 3: Export -$10.24 #DIV/0! Sell 4: Other -$10.24 #DIV/0!

Wholesaler Price Structure & Sales ProjectionWholesaler: National Location: Date: 1/6/03

1 2 3 4 5 6 7 8Super Roach Ant Ant Citro

Cit. candle Attack Attack (P) Attack (L) Fresh 500mlCarton Size 24 24 24 24 12

RSP (Unit) $3.50 $5.60 $4.20 $5.90 $7.90Margin 16.67% 16.67% 16.67% 16.67% 16.67%

RP (Carton) $70.00 $112.00 $84.00 $118.00 $79.00 $0.00 $0.00 $0.00Carton calculations:

Whl'slr Margin % 15.00% 15.00% 15.00% 15.00% 15.00%Whl'slr GP (RM) $10.50 $16.80 $12.60 $17.70 $11.85 $0.00 $0.00 $0.00

Gross Invoice Price $59.50 $95.20 $71.40 $100.30 $67.15 $0.00 $0.00 $0.00

A&P % 15.00% 15.00% 15.00% 15.00% 15.00%A&P Amount (RM) $10.50 $16.80 $12.60 $17.70 $11.85 $0.00 $0.00 $0.00

Net Invoice Price $49.00 $78.40 $58.80 $82.60 $55.30 $0.00 $0.00 $0.00

Media % 5.00% 5.00% 5.00% 5.00% 5.00%Media Amount (RM) $3.50 $5.60 $4.20 $5.90 $3.95 $0.00 $0.00 $0.00

Net Price (Before Mrkt) $45.50 $72.80 $54.60 $76.70 $51.35 $0.00 $0.00 $0.00Freight $1.00 $1.00 $1.00 $1.00 $1.20

Gross Margin % 54.29% 132.81% 178.86% 73.38% 39.30% #DIV/0! #DIV/0! #DIV/0!Gross Margin RM $15.66 $40.96 $34.38 $32.04 $14.15 $0.00 $0.00 $0.00

Cost $28.84 $30.84 $19.22 $43.66 $36.00

1 2 3 4 5Can I make this product or deliver the service? (1 = no, 5 = yes)Do I have the skills, resources, and advice available to help me develop the product? (1 = no, 5 = yes)

Do I have the time and patience to develop the product? (1 = no, 5 = yes)Will the cost of the product enable me to sell it profitability? (1 = no, 5 = yes)

Will the cost of the product enable me to sell it competitively? (1 = no, 5 = yes)

Sub-Total (score out of 25)

New Product Development Appraisal

Business Model

Idea/Product/Concept1. What is the idea/product/concept?

2. Is there a consumer need for this idea/product/concept?3. Do many people need this idea/product/concept?4. How do consumers cope with their problem/need/want without this idea/product/concept now?

5. Will this idea/product/concept provide a better solution to the consumer than what is already available?

Marketing1. Who are the potential customers and target market?2. How many potential customers are there (how large is the market)?3. Who are the competitors (and potential competitors)?4. How are your competitors doing in the market (decline, stable, growth)?5. Is it their major business (do they rely on other forms of business)?6. How will you promote the product (what advertising and promotion strategy)?

7. What will be your pricing strategy (what revenue over cost)?8. Do you have the ability to reach potential customers?

Skills

1. What skills do you need to realize the opportunity?

2. Do you have these skills or can they be acquired?

3. Are these skills commonly available to all competitors (and potential)?4. Can I manage this venture?

Networks

1. What networks do I need on the supply side?

2. What networks do I need to obtain resources (materials, people, finance)?3. What networks do I need on the sales side?

4. How crucial are these networks to success/failure?

Resources

1. What resources do I need?

2. Are these resources available?

3. Are these resources within my reach?

4. Are these resources available to everyone?

5. Will I have enough financial resources to sustain this venture?

Product

1. Does the product solve a consumer problem, or satisfy a want or need?2. Is this problem, want or need an important one?

3. What are the alternative solutions to the consumer?

4. What is the cost to the consumer of these solutions?

Product/Strategy

1. Can I develop a product/strategy that is different from others?2. Will this different product/strategy be valued (or provide benefits) to consumers?

Source of Opportunity

Vision &

Objectives

Networks

Key Stakeholders

Key Activities

Key Resources

Key Capabilities

Technology

Themes

Customer engagement

Channels

Cost Structure

Value Propositions

Revenue Streams

Strategies

It’s the business model that’s important

This turns into processes….

A strategic formula……

An exciting low cost airline to fly

on

Young & invigorating image

Baggage

No baggage transfers No connection with

other airline baggage services

Baggage surcharge Auto-check with no

baggage

Internet Bookings

Limited use of travel agents

Fast Aircraft turn-around times

Not burdened by traditional air and ground

crew procedures No connection with other

airlines

Standardized aircraft to cut down on

maintenance costs

Extra means of revenue

Paid snacks & meals Seating

Blankets Computerized ticketing

methods Related businesses -

hotels

General savings on overheads

Low landing charges and terminal fees

Headquarters located at airport terminal

Young good looking air & ground crews Modern and trendy

aircraft interiors Advertising image

Vision & Objectives

Strategy

Key activities

Key capabilities

Themes

Revenue streams

ChannelsSource of opportunity

Customer segments

Technology

Key stakeholders

Networks

Cost structure

Key resources

Value propositions

Business Model

1 2 3 4 5Is my vision and objectives clear? (1 = no, 5 = yes)Do I know what my key activities will be? (1 = no, 5 = yes)Do I know what my key capabilities should be? (1 = no, 5 = yes)Am I sure about how I should engage the customer? (1 = no, 5 = yes)Do I know what my revenue streams will be? (1 = no, 5 = yes)

Business model appraisal

Sub-Total (score out of 25)

Total EvaluationIdea Appraisal (out of 50)Technology Appraisal (out of 25)Resources Appraisal (out of 25)Skills Appraisal (out of 25)Network Appraisal (out of 25)Value Chain Appraisal (out of 25)Strategy Appraisal (out of 25)New Product Development Appraisal (out of 25)Business model appraisal (out of 25)

Total Possible (250)Multiple X 4/10 %

100% Outstanding (the ideal business opportunity)90-99% Very Good 80-89% Good (the plan is sound with a few areas

that need to be refined)

70-79% Above Average (this plan has some good areas but needs reevaluation and improvement)

60-69% Average (some areas covered in detail yet other areas show Weaknesses)

50-59% Below average (most areas evaluation and improvement)

Below 50% Poor (plan needs to be researched and documented much better)

Score Interpretation

Agro-based enterprises

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vLH8Bo45WjOVvM&tbnid=4125r6tugGZw-M:&ved=0CAUQjRw&url=http://www.iherb.com/21st-Century-Health-Care-Tea-Tree-Oil-2-fl-oz-60-ml/9058&ei=k3XXUbWXHYTnrAes-oCoDw&bvm=bv.48705608,d.bmk&psig=AFQjCNH7lup5QM9gyPiMhdquzCq2hlWZTQ&ust=1373161100400822

Yabbies

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ArPw8Q_vu8ZHaM&tbnid=BKDVeH41KieEyM:&ved=0CAUQjRw&url=http://www.blueyabby.com/edu-systems&ei=1nHXUaWnEYKPrgex9YDwAQ&bvm=bv.48705608,d.bmk&psig=AFQjCNED8qC4uVs3QRblcfgqSgrz7SGz3A&ust=1373160270133151

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=gVXx0NWW3FV4RM&tbnid=IlGyiz001ld6uM:&ved=0CAUQjRw&url=http://smiffy2011.wordpress.com/2011/03/15/broken-down-and-getting-back-to-nature/&ei=sHHXUZzHBIG_rgesg4CIBA&bvm=bv.48705608,d.bmk&psig=AFQjCNHsRCkCKdw4I0g9fgfLJeSNHB5jRQ&ust=1373160160296753

The novelty of a new essential oil

The potential uses & applications of the new essential oil

The closeness of any substitutes

The stability of the essential oil in applications

The cost/performance ratio

The Toxicity

The general consistency of quality and supply

The prevailing market/product trends

The current level of technology

Low Novelty High Novelty

Low Potential High Potential

Close Substitutes

No Close Substitutes

Poor Stability Good Stability

Poor Ratio Good Ratio

High Toxicity Low Toxicity

Low Consistency

High Consistency

Low Trend Match

High Trend Match

High likelihood of

synthesis

Low Likelihood of

Synthesis

A B D C

A Grid showing the characteristics of a new essential oil

Genetic Material

Habitat & Topography Suitability

Soil Type, Texture & Drainage Suitability

Temperature Range Suitability

Rainfall Suitability

Access to Irrigation

Diurnal Radiation

Crop Maintenance Cycle

Pest, Disease & Weed Control Issues

Easily Available

Need to Develop

Very Suitable Not Suitable or Need to Develop

Very Suitable Not Suitable

Very Suitable Out of Range

Very Suitable Deficient or Excessive

Yes No

Very Suitable Out of Range

Common & Generic

Require Specialized Processes

Common & Generic

Require Specialized Processes

Harvest & Extraction Processes

Common & Generic

Require Specialized Processes

The Agronomic Characteristics Required for the New Essential Oil

Technology Required

Level of Mechanization Required

Research & Development Time-frame

Capital Requirements

Crop Cycle Timeframe

(Additional) Infrastructure Required

Regulatory Issues

Skills, Competencies & Capabilities Required

Networks, Market, Potential Competitors, etc.

Low & Generic

High & Specialized

Low and/or Generic

High and/or specialized

Short & straight forward

Long & Complex

Low High

Short Long

Low High

Low Need of Consideration

High Need of Consideration

Common & Generic

Rare & Specialized

Available Networks, Wide Market & high

competition

Need Network, Specialized

Market, Few Competitors

Potential Revenue High Low

The Project Characteristics.

Thank You