Who was the inventor of the light bulb?

Discussion Today
The nature of opportunity How entrepreneurs really work Business Plan or Business Model? Forecasting The opportunity model A reality check: What entrepreneurs are really like

Small Business Verses Entrepreneurship

New Paradigms

Economic Growth

Pollution Fossil Fuels Export/Import

Transport

Farm

Raw materials Transport Government Diversity Production Transport Power generation

Warehouse Management Supermarket Conflict Research & Development Community

Regulation Competition & Tension

Consumption

Education

Air Transport

Poverty & Unhappiness Uncertainty

Development

Health

Waste

The External Variables

Social and cultural trends and drivers Reviving historical trends Influence of international trends

Social

State of the economy Shift in focus on where to spend money Level of disposable income Level of debt

Economic

Product Opportunity Gap

State of the art and emerging technology Re-evaluating existing technology Technology applied in new areas

Technology

Restriction of existing regulations New regulations and impact on product markets and supply chains

Regulation

Changing Domicile Outlook

Urbanization, growing confidence about social status, etc.

New knowledge about health, fitness, food, etc.

New Knowledge Experience

Changing traditions

Aspirations
Where am I now? Where do I want to be?

Perceptual Changes
Attitudes

The Environment

Changing Affluence

Global Convergence

New technology

Peers and Role Models

The benefits of exercise and working out in a gym Changing Perceptions Women wanting a safe and secure environment Pick up womens changing perceptions Result in creation of Fernwood Womens Health Club Concept

Women feeling intimidated in conventional gyms in the weight areas.

Not working out in conventional Current situation gyms

Support/Facilitate
Intellectual Property Laws

Legal System Property Laws Labour Laws Business Formation Procedures Opportunity

Capital Raising Institutions

Anti-trust Laws Environmental Laws Licensing & Permits Specific Regulatory Bodies i.e., Pesticides Board Product Standards & safety Board of Investment

Taxation

Trade barriers & Protection Fiscal & Monetary Policy Contract Enforcement

Education & Training R&D Policy Policing of Corruption

Encourage/Discourage

Regulate/Control

Flux & Transformation DVD Rental Airlines Computer & Mobile Phone

Automobile Manufacture Electronic Goods

Decreasing Stability

Changing Technology Wholesaling Routine Small Retail FMCG Manufacturing Market gardening Cash cropping Subsistence Farming Consulting Business Fast Food Medical Services Non-Routine

Relatively Stable

Increasing Complexity

Demographics Shock

Technology Competitors new products

New Information

Change

Merging Industries

New Opportunities

Lifestyle Economy Changing Tastes

Hunter (2012)

Gestalt Regulation

Degree of ambiguity

Active/Imaginative

Analytical

Allocative
Supply/Demand changes Demographic changes Value creation

Construction
New technologies New Business models

Intuitive

va no Locus of change In

n io t

Imitation
Deductive
(Black & white) Replication & Extension

Discovery
Incongruities Structural changes

Inductive

Passive/Reactive
Hunter (2012)

The forms of opportunity

Low High

Intuitive
Large Companies & Consumer Type Markets
High analytical & Low intuitive opportunities, high strategy & low tactical exploitation

High
Breakthrough Technology
High analytical and high intuitive opportunities, high strategy & high tactical exploitation

Low Growing importance of tactical moves

Hunter (2012)

Analytical

Imitative Business
Low analytical & low intuitive opportunities, low strategy & low tactical exploitation

Entrepreneurial
Low analytical & high intuitive, low strategy & high tactical exploitation

Growing importance of formal strategy

Imitative

Allocative

Discovery

Construction

Four potential firm opportunity seeking typologies

Market Orientated Firms High

High adaptability to the environment but low generative idea & strategy ability

Both Market & Entrepreneurially Orientated Firms

High adaptive and idea generative & strategy development ability

Market Orientation

Conservative firms Low Very low adaptability to environment Low

Entrepreneurial Firms High generative idea & strategy capability High

Entrepreneurial Orientation

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

University

Constructed Concept 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.

Location

(General Characteristics)

1. 2. 3. 4. 5. 6. 7.

Cheap Good standard of hygiene Good service Fast and efficient Specialize in a particular food Know what to expect A meeting place for people
Potential success parameters

Hunter (2011)

Concept Extraction

Fastfood

Brand Theme

Features Benefits

Signal Channels Attributes

Strategy Characteristics

Central Theme (Product Proposition)

Organically produced high active concentration shampoo with product variants to suit various conditions.

Underlying Assumptions

High & discerning Low Rapidly growing market end. competition segment. Customers who in segment. want mass custom produced products. Products match Sustainable personal values.

Customers

Service

Convenience

Price

Quality

Relationship

Laundry Service

Two ways to scan for opportunities

Matching product to some marketspace

Matching marketspace to some product

Risk

Change in how and where people buy the product None None Some Great

None

Low

Medium

Change In User Habits

Some

Low

Medium

High

Great

Medium

High

Dangerous

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

How Entrepreneurs Really Work

The Summarised Entrepreneurial

Creativity

Idea

Process
Turn into Opportunity

Innovation

Final Commitment

NPD
Strategy

Start-Up

Growth

Sales Resource Gathering

Sustainability

Your Competitors Moves

Your advantages & Disadvantages

Your Moves

Hunter (2011)

Ideas match

Opportunities

Strategies

Opportunity Match

Performance

Spots

Evaluates & Elaborates

Selects

Implements & Modifies

Management Capability

Perception & Creativity

Innovation

Strategic Thinking

Venture Operations

Uniqueness / Differentiation
Competitive Advantage

Capabilities Governing Competitive Scope

Competencies
Entrepreneurial, Opportunity identification, Network, Conceptual, Strategic, Commitment

Resources

Networks

Costs: To customers, to operate Knowledge: Competitive environment Relationships: Customers, suppliers, financiers, (relative power) Structure: Organizational ability Technology: strength

Opportunities
Firm Opportunity Trajectory

ork tw Ne
Firm Alternative Opportunity Trajectory

Field of Network Based Opportunities

Environment

Family history, Current family livelihood, Current Family Status.

The Individual & Family

Self Assessment (Self-efficacy)

Decision Making Skills Knowledge Competencies

Family Values

The Vision Aspiration

Resources, networks, capabilities, competitive environment, etc.

Strategic Business Analysis

Personal Goals

Family Goals

Business 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

Motivational Origins

The birth of an opportunity

Images and Connections

Vision Platform - Perception Time & Space Potential Concept Generator Making Connections

Concepts
Learning:
Conceptual World Identifying concepts Real World Experimentation & Testing

Sources of Opportunity

Evaluation after experience Complete reevaluation (seek further information)

Ideas

A Narrative

Structure common to all opportunities

Vision Outcomes Time & Space Resources Networks Skills, Competencies & Capabilities Competitive Environment Strategy scope & depth

Evaluated and Elaborated Upon Opportunity

Can and do entrepreneurs use a business plan?

The Secret

Forecasting

Rate of Adoption Innovation 100% 80% 60% 40% 20% Growth Maturity

1975

1980

1985

1990

1995

2000

2005

2010

Market Research

Less than 2% of filed patents are ever commercialised Does a new invention have consumer benefits or create any competitive advantage? Can consumers accept the new invention?

Product Evolution
Pre 1900s

Laundry Blue

Up to Late 1940s

Solid Soaps & Powders Laundry Detergent Bars

1950s until present

Laundry Liquids Detergents

1980s until present

Laundry Detergents Powders

Concentrated Laundry Powders

Detergents with Special Additives

Laundry Detergent Tablets

Present time The Past A Radical change in technology

We know the past and present

Will radically Thischange the changes the parallel of the a timeline into market gradually new industry The effect of competitor Without any changes our innovation will bring product timeline will remain relatively evolution unaltered

Media Reports

Availability Increases

Ideas Data Information

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

Knowledge Wisdom

Usefulness Increases

Product Cockroach Control Raid Advanced Baits (3 Baits) Mortein Roach Trap No Cockroaches

Supermarket Retail Prices New Zealand June 2002 Size Pak N Save Woolworths 30ml 4 traps 500ml $3.75 $6.07

Foodtown

Warehouse

New World

Gilmours $3.53

$6.99

$6.55

$6.75 $10.39

Ant Control Raid Ant Killer No Ants Gel Bait No Ants Bait Stations Mortein Ant Nest Stop Neverong Ant Raid Ant Baits Ant Ban No Ants 120ml 60ml 4 baits 250ml 3 pack 500ml $3.16 $3.69 $7.72 $3.95 $3.91 $4.25 $4.15 $10.99 $3.70 $7.60 $3.49 $3.79 $7.99 $4.99 $3.18 $7.30 $3.99 $2.90

$2.38

Moths/Other Raid Moth Proofer Mortein Mosquito Coils Raid Portable Mozzie Repeller Spiral Fly & Mosquito Rep. Mortein Mozzie Zapper No Fleas/No Spiders

10 coils

$3.65 $2.02 $12.33 $11.45 $10.45

$3.29 $10.65

$3.29 $10.99 $12.99

500ml

$10.99

New Zealand Sales Forecast (Net Invoice Price*) Account: Auckland/FoodStuf s/Progressive Product: Roach Attack 140grams
%Year No Stores 5.10% 4.96% 6.95% 10.92% 11.92% 11.92% 11.92% 11.92% 7.94% 5.96% 5.79% 4.70% 100.00%

Total Account

274 Vol Val Auckland/ 42 Vol New World Val Auckland/ 19 Vol Pak N Save Val Auckland/ 130 Vol Four Square Val Auckland/ 14 Vol Non Banner Val Progressive/ 30 Vol Foodtown Val Progressive/ 39 Vol Supa Value/Fresh Val

July August Sept. 61.46 59.78 83.70 $4,447.54 $4,325.97 $6,056.36 12.60 12.60 17.64 $911.74 $911.74 $1,276.43 5.70 5.70 7.98 $412.45 $412.45 $577.43 25.35 25.35 35.49 $1,834.33 $1,834.33 $2,568.06 2.73 1.05 1.47 $197.54 $75.98 $106.37 9.00 9.00 12.60 $651.24 $651.24 $911.74 6.08 6.08 8.52 $440.24 $440.24 $616.33

October 131.52 $9,517.13 27.72 $2,005.82 12.54 $907.39 55.77 $4,035.52 2.31 $167.15 19.80 $1,432.73 13.38 $968.52

November 143.48 $10,382.33 30.24 $2,188.17 13.68 $989.88 60.84 $4,402.38 2.52 $182.35 21.60 $1,562.98 14.60 $1,056.57

December 143.48 $10,382.33 30.24 $2,188.17 13.68 $989.88 60.84 $4,402.38 2.52 $182.35 21.60 $1,562.98 14.60 $1,056.57

January 143.48 $10,382.33 30.24 $2,188.17 13.68 $989.88 60.84 $4,402.38 2.52 $182.35 21.60 $1,562.98 14.60 $1,056.57

Februrary 143.48 $10,382.33 30.24 $2,188.17 13.68 $989.88 60.84 $4,402.38 2.52 $182.35 21.60 $1,562.98 14.60 $1,056.57

March April May June 95.65 71.74 74.99 56.63 $6,921.55 $5,191.16 $5,045.33 $4,098.04 20.16 15.12 12.60 12.60 $1,458.78 $1,094.08 $911.74 $911.74 9.12 6.84 5.70 5.70 $659.92 $494.94 $412.45 $412.45 40.56 30.42 40.56 25.35 $2,934.92 $2,201.19 $2,934.92 $1,834.33 1.68 1.26 1.05 1.05 $121.56 $91.17 $75.98 $75.98 14.40 10.80 9.00 5.85 $1,041.98 $781.49 $270.00 $423.31 9.73 7.30 6.08 6.08 $704.38 $528.29 $440.24 $440.24

Total 1209.42 $87,132.39 252.00 $18,234.72 114.00 $8,249.04 522.21 $37,787.12 22.68 $1,641.12 176.85 $12,415.63 121.68 $8,804.76

Estimated % Distribtion and Average Monthly Self Offtake (in Cartons)

Roach Attack Ant Attack 150grams grams %dist AMSO Ant Attack 50 ml ml %dist AMSO No-Moz 3x35 grams %dist AMSO No-Moz 100 grams %dist AMSO Fun Candles 3x35g rams %dist AMSO Prewash Stain 100grams %dist AMSO Living Scents Wardrobe 30g %dist AMSO

Group Auckland Foodstuffs/New World Foodstuffs/Pak N Save Foodstuffs/Four Square Foodstuffs/Non Banner Progressive/Foodtown Progressive/Supa Value/Fresh Woolworths/Prog. Welling Woolworths: Big Fresh Price Choppers Foodstuffs/New World Foodstuffs/Pak N Save/Right Foodstuffs/4 Square/non-bann Foodstuffs/South Island New World Pak N Save Four Square On the Spot

140grams grams %dist AMSO

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.5 0.5 0.5 0.5 0.5 0.4 0.5 0.5 0.5 0.5 0.5 0.4 0.5 0.5 0.5 0.5

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.8 0.8 0.8 0.5 0.8 0.5 0.8 0.8 0.8 0.8 0.5 0.5 0.5 0.5 0.25 0.25

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.8 0.8 0.8 0.6 0.6 0.5 0.8 0.6 0.8 0.6 0.6 0.5 0.6 0.5 0.6 0.5

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.6 0.5

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4

100% 100% 65% 25% 100% 65% 100% 100% 100% 100% 65% 25% 100% 100% 20% 5%

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Annual Sales Distribution

Product J A S O N D J F M A M J Total

Roach Attack 140gram Ant Attack 150grams Ant Attack 50ml No-Moz Cit. Candle 3x35gram No-Moz Cit. Candle 100grams Fun Candle 3x35grams Prewash Stain Bar 100grams L/S Wardrobe 30grams Percentage Distribution Gained
Account

5% 5% 5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5% 5% 5%

7% 7% 7% 7% 7% 7% 7% 7%

11% 11% 11% 11% 11% 11% 11% 11%

12% 12% 12% 12% 12% 12% 12% 12%

12% 12% 12% 12% 12% 12% 12% 12%

12% 12% 12% 12% 12% 12% 12% 12%

12% 12% 12% 12% 12% 12% 12% 12%

8% 8% 8% 8% 8% 8% 8% 8%

6% 6% 6% 6% 6% 6% 6% 6%

5% 5% 5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5% 5% 5%

100% 100% 100% 100% 100% 100% 100% 100%

Metcash: Nsw/Act Victoria Queensland South Australia Other Independents: FAL/Action

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Hunters Brands Pty. Ltd. Product Costing Structure

Roach Attack 140grams Ant Attack 150grams Ant Attack 100ml 3x70gram Candle 150grams Supercandle

Carton size
Unit calculations:

6 $5.98 $0.54 $5.44 $13.05 $19.57 $0.00 $19.57 $0.00 $19.57 $0.00 $4.89 $14.68

6 $3.45 $0.31 $3.14 $7.53 $11.29 $0.00 $11.29 $0.00 $11.29 $0.00 $2.82 $8.47

6 $3.49 $0.32 $3.17 $7.61 $11.42 $0.00 $11.42 $0.00 $11.42 $0.00 $2.86 $8.57

24 $3.99 $0.36 $3.63 $26.12 $64.15 $3.21 $60.94 $9.14 $51.80 $0.00 $15.23 $34.64

24 $3.99 $0.36 $3.63 $26.12 $64.15 $3.21 $60.94 $9.14 $51.80 $1.92 $15.23 $34.64

0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

RSP: GST: RSP (before GST):

Carton calculations:

Retail Margin 40% Gross Invoice Price Warehouse Allow. 0% Net Invoice Price Trading Terms 0% Net Pricing Case Deals (ave. 0%) Fertool Margin 25% Net Price

Hunters Brands Pty. Ltd. Product Costing Structure

Roach Attack 140grams Ant Attack 150grams Ant Attack 100ml 3x70gram Candle 150grams Supercandle

Carton size
Unit calculations:

6 $5.98 $0.54 $5.44 $13.05 $19.57 $0.00 $19.57 $0.00 $19.57 $0.00 $4.89 $14.68

6 $3.45 $0.31 $3.14 $7.53 $11.29 $0.00 $11.29 $0.00 $11.29 $0.00 $2.82 $8.47

6 $3.49 $0.32 $3.17 $7.61 $11.42 $0.00 $11.42 $0.00 $11.42 $0.00 $2.86 $8.57

24 $3.99 $0.36 $3.63 $26.12 $64.15 $3.21 $60.94 $9.14 $51.80 $0.00 $15.23 $34.64

24 $3.99 $0.36 $3.63 $26.12 $64.15 $3.21 $60.94 $9.14 $51.80 $1.92 $15.23 $34.64

0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

RSP: GST: RSP (before GST):

Carton calculations:

Retail Margin 40% Gross Invoice Price Warehouse Allow. 0% Net Invoice Price Trading Terms 0% Net Pricing Case Deals (ave. 0%) Fertool Margin 25% Net Price

Product Benefit Strategies Launch Immediate Product Ant Attack Powder 150grams Perceived Consumer Benefits a) can use indoors b) Non-Toxic c) Only use when problem arises a) can use indoors b) Non-Toxic c) Only use when problem arises d) Can be used on walls, etc. a) Realign product as a small space air freshener as well as insect repellent. a) Super strength boosted product. b) New presentation Promotional Strategies Instore POP material

immediate

Ant Attack Liquid 70ml

Instore POP material

immediate immediate

Roach Attack 140grams Lilin Serai Wangi

Instore POP material a) Instore POP material b) regional radio when wholesaler appointed. c) Newspaper a) Instore POP material b) block/demo/promoters a) Instore POP material b) block/demo/promoters a) Instore POP material b) block/demo/promoters c) regional radio when wholesaler appointed. a) Instore POP material b) block/demo/promoters c) regional radio when wholesaler appointed. a) Instore POP material b) block/demo/promoters c) regional radio when wholesaler appointed. a) Instore POP material b) block/demo/promoters a) Instore POP material b) block

immediate Nov. 2003 Nov. 2003

Citrus All purpose Cleaner 500ml Thick Bleach Non-Toxic Knock Down Aerosol

a) Powderful Natural solvent cleaner b) fresh orange citrus fragrance a) More powerful than ordinary bleach b) Can use on toilet bowl and walls a) Non-Toxic b) Safe near food

Nov. 2003

Non-Toxic Surface Aerosol

a) Non-Toxic b) Safe near food

Feb. 2004

Tea Tree Soap

a) Natural Antiseptic

April 2004 April 2004

Aromatherapy Bath & Shower Gel Incistern blue blocks

a) Use Essential oils b) Full Concept Price benefit

Essential Home Products Pty. Ltd. Cost & Pricing Matrix Product Roach Attack 140grams Ant Attack 150grams Ant Attack 50ml No-Moz Citronella Cnd. 3x35g No-Moz Citronella Cnd. 100g Aroma Fun Candle 3x35grams Prewash Stain Removal Bar Living Scents Wardrobe 30g Ctn 24 24 24 24 24 24 48 24 Landed Cost $24.73 $17.48 $36.46 $20.77 $15.45 $29.30 $35.44 $12.48 Net Price* $70.18 $40.49 $40.96 $31.10 $22.30 $44.60 $39.67 $19.83 Net Price** $77.63 $44.79 $45.31 $34.40 $24.67 $49.33 $43.88 $21.94 Net Invoice Gross Invoice RSP Value Value Price Carton*** $91.33 $96.14 $72.36 $52.69 $55.46 $75.36 $53.30 $56.11 $76.08 $40.47 $42.60 $57.84 $29.02 $30.55 $41.52 $58.04 $61.09 $82.80 $51.62 $54.34 $73.92 $25.81 $27.17 $36.96 RSP Carton**** $143.52 $82.80 $83.76 $63.60 $45.60 $91.20 $81.12 $40.56

* Net Price: After discounts, trading terms & brokerage fees ** Net Price: After discounts & trading temrs before brokerage fees ***Before GST ****After GST

Citronella Candle 100grams Citronella Candle 70grams Non-Toxic Knock Down Aerosol Non-Toxic Surface Aerosol Prewash Stain Removal Bar Citrus Cleaner Ant Attack Powder Ant Attack Liquid Roach Attack Wardrobe Small A/fresh

Planned Distribution Matrix Key A/C Supermrk't Convenience X X X X X X X X X X X X X X X X X X X X X X X X X X X X

M. Mrk't X X X X

X X X

Product Roach Attack 140grams

Direct Competitors Mortein Lure 'n' Kill

Sureguard Mini Strips Mortein Moth & Insect Strips Cedar fresh Moth Balls

RSP Position Decision Making Matrix Pack Price Cost/ Competitor Claims Size Unit 6 baits $3.34 n/a 1. Honey, malt, soya 21grams extract 2. Lasts 3 months 3 pack $8.89 n/a 1. Kills up to 6 months 60grams 3 pack $7.69 n/a 15 grams 18 balls $4.83 n/a 1. 100% natural cedar 2. Repels moths & oth. 3. Prevents mildrew

EHP Claims

Ant Attack 150grams

David Grey's Ant Granules

500grams

$5.39

0.01/g

1. Repels cockroaches, moths, silverfish & other crawling insects 2. Non-toxic 3. No insecticides 4. Natural citronella & Lavender oils 5. Leaves clothes & linen smelling fresh 6. Takes away the smell of pets from the home 7. No naphthelene or PDCB 1. Controls ants outside 1. Non-Toxic the home 2. No insecticides 1. Controls ants outside 3. Natural essential oils the home 4. Can use inside home

Sugg. RSP $5.98

$3.45

Mortein Ant Sand Baygon Insect Dust Hortico Ant Killer Dust Combat Ant Rid Baygon Ant Killer

500grams 250grams 500grams 50ml 200grams

$8.39 $8.53 $6.24 $2.66 $4.68

0.016/g

Ant Attack 50ml

0.034/g 0.012/g 0.053/ml 1. Indoor Ant Liquid $0.02

No-Moz Fly-Away 3x35grams Citronella Candle No-Moz Fly-Away 100grams Citronella Candle

Radience Citronella Candles No-Moz Citronella Candles Heat Beads Citronella Candle No-Moz (small bucket) No-Moz (large bucket)

3 pack 300grams 300grams approx 250grams

$1.99 $2.49$2.86 $3.99 $2.99 $7.99

Aromatherapy Fragranced Fun Candles 3x35grams

Haze Air freshener Candle Parrot Aromatherapy Candles Romantics Aromatherapy Candles 2 pack Aroma Scents 6 pack

120grams 300grams

$4.53$5.20 $3.59 $5.99 $2.99

Tea candle concept .0083/g claims 1.5% active .0095/g citronella 0.0133/g 0.015/hr 1. Claims 20 hours burning time 0.016/hr 1. Claims 50 hours burning time n/a

1. Non-toxic 2. No insecticides 3. Natural essential oils 4. Use inside the home 1. Non-toxic 2. Safe near food 3. 5% active citronella (not claimed on pack) 4. 3x35grams approx 27 hours burning time 5. 100grams approx 15 hours burning time 1. To help create moods to relax, relieve stress and invigorate

$3.49

$2.65 $1.90

$3.80

1. Awakens your passion, etc 1. To delight your senses

AMSO Coles Stores May 2002

Mentone Deodorant Blocks/Camphor/other small space Southland Coburg Nth Balwyn Hawthorn Malvern Glenhuntly Sandriham

Cedar Fresh Moth Balls Hovex Camphor (2 pack) Fragrascene Deodorant Block Parry's Fresh Guard Parry's Deodorant block Wardrobe Wonder
Small Space Gel Air Fresheners

28 24 44 8

16 44 12 44 20 12

32 56 32 80 4

84 20

56

12 48 20 20 0

0 24 28 16 48 16 8

9.33 48.67 27 31.33 31.33 6.4

Haze Mini Scents Gel (2 pack) Glade Secrets (2 pack) Generic Gel Haze Crystal Air Ambi Pur Gel Generic Gel Glade Country Garden Gel

52 40 84 36 32 60 36 52 76 112 28 84 20 24 24 48 40

36

0 56

64

40 48 52

48 48 36

44

38 48 84 33.6 40.8 86 46

Citronella Candles

Radience Citronella Candles (3 pack) No-Moz Citronella Candle Heat Beads Citronella Candle No-Moz Small Bucket Citronella Candle No-Moz Large Bucket Citronella Candle
Oil

12

20

24 8 8

24

14.67 8 12

16

Recochem Citronella Lamp Oil

Air Freshener/aromatherapy Candles

Haze Glass Parrot Aromatherapy candle Romantics Aromatherapy Candle (2 pack) Aroma Scents (6 pack) Parrot Tea Candles

0 0 0 0 0

56

16 0 8

12

20

17.33

Cockroach, Silverfish & Crawling Insect Market Survey Apr-02

Product Mortein Lure 'n' Kill Cockroach Baits Ave. RSP $3.34 Dist. AMSO Ave Vol. Ave Val. Ave Vol. per Month per month Per annum Ave Val. Per annum % M'ktshare

Sureguard Mini Strips (3 pack) Mortein Moth & Insect Strip (3 pack) Cedar Fresh Moth Balls Hovex Camphor (2 pack) Fragrascene Deodorant Blocks Parry's Fresh Guard 100grams Parry's Deodorant Block 50grams Wardrobe Wonder 60grams

$8.89 $7.69 $4.83 $1.64 $1.43 $1.62 $1.17 $1.56

1866 1172 1292 1866 1866 662 230 630 630

26 25 24 9.33 48.33 27 31.33 31.33 6.4

48516 29300 31008 17409.78 90183.78 17874 7205.9 19737.9 4032

$162,043.44 $260,477.00 $238,451.52 $84,089.24 $147,901.40 $25,559.82 $11,673.56 $23,093.34 $6,289.92

582192 351600 372096 208917.4 1082205 214488 86470.8 236854.8 48384

$1,944,521.28 $3,125,724.00 $2,861,418.24 $1,009,070.85 $1,774,816.79 $306,717.84 $140,082.70 $277,120.12 $75,479.04

16.89% 27.14% 24.85% 8.76% 15.41% 2.66% 1.22% 2.41% 0.66%

265267.4 $959,579.24 3183208 $11,514,950.85

Tariff Heading: 3808

Tariff Heading

3808
Column Heading Definitions

HS

Code

SS

Units

Description

Description INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH REGULATORS, DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR-TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS) Rate #

3808

INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH REGULATORS, DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR-TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS): Insecticides: Goods, as follows: (a) camphor; (b) fly-papers; (c) mosquito spirals Free and coils

3808.10 3808.10.10

---

22 23 24 3808.10.90 3808.20.00 39 40 3808.30.00 28 59

kg .. .. kg

Camphor Fly-papers Mosquito --spirals and coils 5% 5%

Other

Fungicides

kg kg

Mancozeb Other Herbicides, anti-sprouting plant-growth regulators products and 5%

kg

Goods wholly of, or with a basis of: (a) pentachlorophenol; (b) 2,4-dichlorophenoxyacetic acid, its salts or esters; or (c) 2,4,5-trichlorophenoxyacetic acid, its salts or esters Goods wholly of, or with a basis of: (a) chlorsulphuron (C12H12ClN5O4S); or (b) metsulphuron methyl (C14H15N5O6S) Other Disinfectants 5%

49

kg

50 3808.40.00 57

kg kg

Hunters Brands Sdn. Bhd. Standard Product Costing Sheet Product: Ant Attack Liquid 100ml Size: Date: 1 0.1 No. Packets per Outer Carton: Batch Size (Kg): 0.1 16/6/03 6 100

Formulation No: Units per packet: Individual Unit Size: Part 1: Chemical Materials Ingredient Ethanol Clove Oil Peppermint Oil Citronella Oil Quantity 93 5.25 0.7 1.05

Price Extension $2.500 $232.500 $35.000 $183.750 $38.000 $26.600 $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: Cost Per Kilogram: Cost per raw unit: Cost per Packet: Cost Per Outer Qty: Ctn Cost per yield: 1000 Date Last Updated: $479.600 $4.796 $0.480 $0.480 $2.878 $2.878

Wastage Factor 0.00%

Ave. Yield/ Units per Batch: Part 2: Packaging Materials Item Ant Attack Ant Attack Ant Attack Ant Attack

Inner Box 50ml Label Bottle 50ml Outer carton

Unit Mea unit unit unit unit

Quantity 6 6 6 1

Price $0.190 $0.095 $0.750 $0.450

Total Packaging: Part 3: Labour Mean Labour Cost Mean Fixed Overhead Mean Administrative Cost Part 4: Total Product Cost Unit $0.480 $1.110 $0.117 $1.706 Carton $2.878 $6.660 $0.700 $10.238 % Total 28.11 65.05 6.84

Extension $1.140 $0.570 $4.500 $0.450 $0.000 $0.000 $0.000 $0.000 $0.000 $6.660

$0.70 $0.00 $0.00 $0.70

Materials Packaging Labour Total Part 5: Selling Prices and Margins Sell Price Transfer Price Sell 1: Whole/Distributor Sell 2: Retailers Sell 3: Export Sell 4: Other

Gross Contribution -$10.24 -$10.24 -$10.24 -$10.24 -$10.24

% Margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Wholesaler: National 1 Super Cit. candle Carton Size 24 RSP (Unit) Margin RP (Carton)
Carton calculations:

2 Roach Attack 24 $5.60 16.67% $112.00 15.00% $16.80 $95.20 15.00% $16.80 $78.40 5.00% $5.60 $72.80 $1.00 132.81% $40.96 $30.84

Wholesaler Price Structure & Sales Projection Location: 3 4 5 Ant Ant Citro Attack (P) Attack (L) Fresh 500ml 24 24 12 $4.20 16.67% $84.00 15.00% $12.60 $71.40 15.00% $12.60 $58.80 5.00% $4.20 $54.60 $1.00 178.86% $34.38 $19.22 $5.90 16.67% $118.00 15.00% $17.70 $100.30 15.00% $17.70 $82.60 5.00% $5.90 $76.70 $1.00 73.38% $32.04 $43.66 $7.90 16.67% $79.00 15.00% $11.85 $67.15 15.00% $11.85 $55.30 5.00% $3.95 $51.35 $1.20 39.30% $14.15 $36.00

Date: 1/6/03 6 7 8

$3.50 16.67% $70.00 15.00% $10.50 $59.50 15.00% $10.50 $49.00 5.00% $3.50 $45.50 $1.00 54.29% $15.66 $28.84

$0.00

$0.00

$0.00

Whl'slr Margin % Whl'slr GP (RM) Gross Invoice Price A&P % A&P Amount (RM) Net Invoice Price Media % Media Amount (RM) Net Price (Before Mrkt) Freight Gross Margin % Gross Margin RM Cost

$0.00 $0.00

$0.00 $0.00

$0.00 $0.00

$0.00 $0.00

$0.00 $0.00

$0.00 $0.00

$0.00 $0.00 #DIV/0! $0.00

$0.00 $0.00 #DIV/0! $0.00

$0.00 $0.00 #DIV/0! $0.00

Curiosity

Insight Security & Purpose Wisdom Confidence/ Self Esteem

Exploration Discovery Openness to Learning Excitement Obsessive Persistence New Skills Dedication Passion for the domain

Mastery

Networks

Competitive Field

Skills, Capabilities

Strategy

Resources

Time & Space

Making Connection

Vision Platform

Hunter (2012)

Find the right opportunity

Changes in any of the factors

Social
Social and cultural trends and drivers. Reviving historical trends. Influence of international trends. Changing demographics. Styles, fashions & fads.

Randomness & Unexpectedness

A random or unexpected event that creates an opportunity

Interrelated Factors

Economic
Stage of economic development. State of the economy. Level of disposable income. Macroeconomic, general industry conditions, financial &geographical environment.

Product Opportunity Gap

Technology
Current state of the art and emerging technology. Re-evaluating and utilizing existing technology in new areas. New knowledge. Invention.

Government & Regulation

Government needs & priorities. Restriction by Government. New laws & regulations and impact on product markets and supply chains. Trade liberalization.

Our Inner Self

New Knowledge or Information

Our upbringing, domicile outlook, experiences, interests, skills & abilities, assumptions, beliefs, attitudes, perception, cognitive processes, patterning and biases, our inner psych and emotions, imagination, energy, and passion, etc. The way we interact and stimulated by the environment and make connections

Automobile Manufacturers Banks Universities

Airlines

Large Pharmaceutical Companies Independent Retail Chains

Mega Business

Large manufacturing Mall Type Shopping Centres Modern Extensive Farming Enterprises

Large Business

Lifestyle Businesses Independent specialty Retail Specialty Wholesaling Ambition, sense of mission, attitudes, beliefs, values, available (and potential resources), self efficacy, networks, skills, competencies, and capabilities, etc. Corner Shops

SME Level

Street Stalls Micro-enterprise

Microentrepreneurs

Vision Platform

Characteristics of Traditional Economies

Subsistence agriculture based on traditional knowledge Low level of urbanization, majority of population live in a rural and/or coastal existence Unwillingness to accept new ideas and little innovation, even resistance to new ideas, lack of research and development Extremely conservative society Very little credit finance capital available, low level of savings and very immature cash economy anyway, little or no investment Extremely low level of infrastructure, poor transport routes and communication Feudal and/or corrupt form of government where resources may be diverted to unproductive projects Very low level of education Very poor ability to recover from natural disasters Low national vision

Characteristics of Underdeveloped Economies

Some simple infrastructure development The adoption of basic modern farming techniques Reliance on natural resource factors to create new industries, i.e, fertile land and favourable climate for specific agricultural and/or commodity crops, or abundant labour, etc. (It is these factors that provide first opportunities) Very high dependence on imports Fragmented markets that are yet to segment A limited range of industries based on cost advantages owned by an elite group of society Usually highly regulated and restricted economy (though not necessarily)

Characteristics of a Developing Economy

An improving rate of saving leading to a higher rate of investment which becomes a driver of the economy The acquisition of technology through JVs, licensing, education abroad, consultants, etc. Through employment growth local incomes grow and begin a surge in consumption There is a shift from rural to urban areas in search of employment and opportunities

Characteristics of Developed Economies

The economy relies almost completely on consumerism for growth and prosperity, often criticized for excess

Post Industrial Economy

Characteristics of Post Industrial Economies

A rapid decline in the agriculture and industrial sectors (industries closing down as they lose international competitive advantage) and a rise in the services sector Corresponding increase in the imports of consumer goods from lower cost producing nations A decline in some urban areas and a rise in other parts (increase in inner suburban living) Investment tends to be wealth based focusing on minimal risk projects like shopping malls Innovative start-ups often come from new arrivals to the country (exception of Japan) Increasing rates of unemployment and often shortage of manual labour as other types of careers are preferred Usually a slightly declining population which signifies a declining workforce size, this lowers economic growth rates

Developed Economy

Under-developed

Economy

Traditional Economy

Government tries to attract foreign aid and investment Ability to allocate resources within economy not efficient at this stage Very low rates of SME formation and high informal economy

High level of research & development Developing High level of industrial Economy innovation High market segmentation and specialization Sophisticated logistic supply chains Higher emphasis on education Very high number of SMEs Surge in infrastructure projects High level of firm and that spur on economic growth individual compliance through improved transport links, regulation etc. Vast majority of population International markets entered resides in urban areas and channels developed through Very stable institutional OEM and contract production environment Increasing wages, productivity, Abandonment of elite and and employment leading to rising favored groups within the living standards business sector where an Increasing professionalization of egalitarian values prevail workforce and management society needed to compete Very high value placed upon internationally education in society

Market segmentation still weak Increasing market globalization

Post Industrial Economy

Still under-developed logistic systems Some wealth driven businesses (i.e., hotels) by elite families

Developed Economy
Local firms exporting to the world

Under-developed Economy
Still building infrastructure Some rent-earning feudal elements

Thailand Traditional Economy

Still some small remote areas

Developing Economy
Still factor and investment rather than innovation driven

Malaysia

Changing Demographics (Rural-urban drift)

Positive geographic disposition

Rapid Economic Growth

Increased Investment Increased Saving Population Growth Increased Demand Increased Opportunities Increased Knowledge New Skills & Capabilities
Those with natural talents emerge quickly

Increasing Education

Learn as you go Imported Technology

Emerging Culture

Shifting Values Traditional/colonialization Developing Economy Agriculture based lifestyle Connection with extended family Subsistence orientation Rural value base Acceptance of situation Little saving Urban based lifestyle Cut off from extended family Planning orientation Changing to urban values Seek to improve situation Saving for capital

Social mobility end of feudalism New wealth New poverty

1750

1775
Armed conflict forced American merchants to manufacture

1800

1825

1850

1875

1900
Bismarck instituted health & accident insurance

1925

1950

Establishment of cotton industry in American South invention of the gin

The decline of mercantilism

Regulation instituted to control banking, railways, business (a political The use of steam technology for transport the railways Britain invention) The development of the American West

The beginnings of governments using fiscal & monetary policy to control the economy Frederick Taylor developed Scientific Management

Development of canals in Britain and America Development of the steam engine Ocean going coal based steam ships Whaling industry for lamp oil & whalebone

Early beginnings of the petroleum industry

Flying shuttle invented by John Kay (1733)

Spinning Jenny invented by James Hargreaves

Formation of DuPont by Eleuthre Irn du Pont

Borden develops the process to produce condensed milk Development of the electronic telegraph

First Sears Catalogue published Henry Ford produces first mass produced automobile The invention of the telephone switchboard

Use of water frame to spin cotton credited to Richard Arkwright Spinning mule invented by Samuel Crompton First self powered automobile

Formation of the Western Union Telegraph Company Invention of the tire First useable electric light globe Invention of home refrigerator by Jacob Perkins

First air conditioner by Willis Haviland Carrier

Invention of the jet engine Refrigerated railway box cars (ice system) First electric power distribution Refrigerated railway box cars (mechanical system)

Discovery of aerodynamic principals by George Cayley

Invention of the fourstroke engine First manned glider by Otto Lilienthal

Wright Brothers flew the first airplane

The industrial revolution in Great Britain, Europe and the United States

The liberal age

Between the wars The post war and collapse of growth years international trade

Automobile

Chassis

Engine

Tires

Control & management Systems Electronics

Braking System

Environment

Suspension systems

Rubber Fuel

Alloys

Road Rules

Steel

Compression Chemical Microprocessors & Processes Combustion Plantations

Hydraulics

Roads & Carriageways

Time & History

Have a source of innovation

Sources of Opportunity (Opportunity Anchors)

Market Void

Technology Infusion

Structural changes

Resource Monopoly

Regulation

Non-Innovative

Incongruities

Invention

Changes in Industry Structure

Physical Resource

Effect on Product

Personal Service & Consulting

Demographic Changes

Incremental Improvement

Capability Resource

New Processes
Legal Resource

Effect on Process Duplication

Adaptation Perceptual Changes New Processes Adaptation, combination & integration Brand Resource Extension

Scarcity Power New Materials Cost/value Shift

Copy/ Imitation

Strategies for each source of opportunity

Develop into a source of competitive advantage

Figure 9.9. The General Tools of Intellectual Property in Business Strategy Influence of New Technology Competitors

Product Development
- New to company product - New Style, variant or benefits

- Invention (new to the world)

Patent, Registered Design, Proprietary Knowledge (secrecy and non-disclosure agreements)

Influence of Product Lifecycle

Process Development (manufacturing)

Patent, Proprietary Knowledge (secrecy and non-disclosure agreements)

Market Strategy
Market parameters (mix) Channels Knowledge Image & Story (target) Knowledge, Creativity, Branding, Trademarks, Copyright

The General Business Strategy

The Market Place Values Expectations Emotions Recognition Potential Emotional Connections

Getting the right skills around you

Competencies Required During the Essential Oil Development Process

Strategic, organizational, relationship opportunity competencies require: Business strategic, industry knowledge, industry networks, ability to raise finance, ability to plan, implement & adjust, leadership, entrepreneurial

Strategic, operations, finance and technical management

Strategic and organizational competencies require: Administrative, financial management, technical management, strategic management, personnel management, resources management, entreprenuerial

Marketing & commercialisation

Strategic, opportunity and technical competencies require: Project management, marketing management, chemistry, cosmetic chemistry, perfumery/ flavour knowledge, Packaging & design, manufacturing engineering

Product & venture management

New product development & creation of value added products & activities

Technical competencies require: Thermodynamics and plant physiology, heat transfer, distillation engineering, chemistry, chemical engineering, agricultural engineering, environmental engineering (waste management)

Sustaining and growing the enterprise (adapting & survival)

Harvesting, Extraction and wastage handling

Planting, cultivation & maintenance

Technical competencies require: Bio-system engineering, Soil management, entomology, plant nutrition, Agronomics, field management, irrigation engineering

Output: Result/Performance, Sustainable and healthy enterprise or a struggling and failing enterprise

Propagation & domestication or introduction

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

Screening & Bio-prospecting

Opportunity and technical competencies require: Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical chemistry. Market and specific technical product knowledge

Creativity Competency

Leadership Competency

Strategic Competency

Organizational Competency

Entrepreneurial Competency

Management Competency

Opportunity Competency

Relationship Competency

Idea Discovery

Idea Evaluation

Start-up

Growth

Stability

Various Cognitive Skills 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 Research 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

Management Commitment Opportunity Conceptual

Commitment Conceptual Entrepreneurial Management Strategic

Entrepreneurial

Strategic
Opportunity

Entrepreneurial Start-Up Competencies

Managed Company Competencies

Strategy Anchors
Dynamic Capabilities

New Product Development Management capability Learning capability Technology capability

Enterprise Capabilities Logistics capability Manufacturing capability Growth capability Strategic capability Marketing capability Innovation capability Organizational culture

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

Skills Marketing Production Scheduling Finance Planning Organizational Decision making

Delegation Sourcing Finance

Product design Human resources Operational

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

Competency

Present

Not Present

Comments

Technical 1. Botany 2. Plant Physiology 3. Chemistry/Analytical 4. Micro-propagation 5. Nursery Management 6. Environmental Engineering 7. Chemical engineering/thermodynamics/etc 8. Soil Management 9. Agronomy/plant nutrition/field management 10. Entomology 11. Irrigation engineering 12. Agricultural Engineering 13. Regulation knowledge 14. Cosmetic chemistry/food etc 15. Perfume/flavours 16. Packaging & design 17. Consumer product manufacturing

Basic Basic Experience Experience Experience Basic Basic Basic

Low Low Low Low Low Low Low Low Low

Need guidance Need assistance Need guidance Assistance Available Can design Need appraisal Use contractor Use institute Replicated experiments With Environment Use contractor Can develop Need assistance Learn from experience Use contractor

Opportunity/Entrepreneurial/Commitment 1. Able to screen environment for opportunities 2. Able to evaluate opportunities 3. Commitment level

Yes Yes Passionate

Need to see realistically

Relationship 1. Have relationships in target industries 2. Have relationships in research area 3. Have relationships in finance industry Organising/Management 1. Able to project manage 2. Able to administrate 3. Able to financially manage operation 4. Able to undertake research 5. Able to keep key people motivated

A few A few Some

Yes Yes Yes Yes Yes Yes Yes Yes Believe so but not tested

Strategic 1. Understand dynamics of market and industry environment 2. Able to plan for a business within this environment 3. Able to implement, evaluate and adjust plans in this environment

Resources Business model

Tangible Resources

Intangible Resources
Product Designs

Time
Intellectual property

People

Plant & Equipment

Knowledge

Research & Development

Property & Location

Brands

Creativity

Cash & Other Finance

Reputation
Team Specific Experience

Technology Relationships

Organizational Culture

Organizational Routines

Access to inputs

Passion

Determine your needs

Inputs
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

The Venture

Outputs
Product/Service

Distribution Channels

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.

Perceived problem observed and value proposition proposed through a product and/or service

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

Strategies

Revenue Stream

Enterprise Capabilities
Business Model Organizational Culture Reputation Knowledge Organizational Routines Creativity Team Ind. Experience Intellectual Property

Specialized Resources

Applied Resources
People

Brands Proprietary Machinery

Product designs Technology Basic Plant & Equipment Cash & Other Finance Various Support Services Office Space

Generic Resources Input Resources

Property & Location Fixed Costs Raw Materials

Consultancies

The Resource Pyramid

Dye & Chemical Industries

Perceived Opportunities
Developed Firm Value Chains

Incoming Trends & Ideas

Critics & Media

Raw Woolen Materials

Skilled Designers

Suppliers Regulatory Skilled Employees Finance Houses Support Businesses

Fabrics & Fashion

Research

Technology
(Universities & Research Institutions)

Wool Processing
Strategies

All kinds of Knowledge

Retailers Wholesalers

International Supplier Chains

Competitive Environment
(Direct & Indirect Competitors)

Domestic Supply Chains

Retailers Wholesalers

Spin-off Opportunities

Friends Customer Father

Inside the firm

Expectations

Decision Maker

Employees

Competencies Accountant

Bank

Property Owner

Suppliers

Auto Parts manufacturers Coordination, Kanban, JIT, etc.

Automobile manufacturer

Sales coordination, Custom Ordering Independent Dealerships

Service Centres

In constant communication about service times and other car owner information Road Side Assist Schemes Consumers

Arrange the necessary Resources

Think about how to develop a new product

Trends & Technology

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.

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

Substitutes

Industry Competitors Bargaining power of suppliers Bargaining power of buyers Intensity of Rivalry

Competitive Rivalries

Regulation

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

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.

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

Things are always a mystery until we get there

The Wright Bros. developed the airplane through effectuation (trial & error). They developed a new theory and a new invention.

It was only when a use for the new invention was found that an industry developed.

Could the Wright Brothers developed a business plan when they first decided to build a flying machine?

At the time this looked just as viable

Idea/Product/Concept 1. 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? Marketing 1. 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?

Hunter (2012)

History

Who was the inventor of the light bulb?

Thomas Edison

Sir Joseph Wilson Swan

PROFILE OF SMEs

144

DEFINITION OF SMEs
Manufacturing, Manufacturing Services and Agro -based Industry Related

Companies with annual sales turnover not exceeding RM25 million OR full time employees not exceeding 150 Services, Primary Agriculture, Communication Technology (ICT) Information And

Companies with annual sales turnover not exceeding RM5 million OR full time employees not exceeding 50

145

TOTAL ESTABLISHMENTS OF COMPANIES BY SIZE

LARGE
MEDIUM SMALL MICRO
4,542 (0.8%) 12,694 (2.3%) 100,561 (18.2%) 435,052 (78.7%)

Census of Establishments & Enterprises 2005 DOS Dec 2005

TOTAL ESTABLISHMENTS: 552,849

146

DISTRIBUTION OF SMEs BY SECTOR

Agriculture Manufacturing

34,225 (6.2%)

39,376
(7.2%)

Services
TOTAL SMEs : 548,307
Census of Establishments & Enterprises 2005 DOS Dec 2005

474,706

(86.6%)
147

CONTRIBUTION BY SMEs
(%)
60 8.1 50 40 30 20 10 0 3.9 19.7 8.4
G DP

33.9 0.1 7.9 14.5

E mployment

11
T otal E x port
contribution

Manufacturing

S ervices

Ag riculture
148

Preliminary Statistics by DOS - Dec 2005

Most Entrepreneurs look like this

Most people like to take things easy

Space
Global

National

City

Neighbourhood

Sectional Interest Today W Next Week Next Year Next Few Years Life Time Childrens Lifetime

Time

Tissue Culture

Microwave Oven

Pressure Cooker

Chemicals & Spoons, etc.

Glassware

Why let the train leave without you?

Product Reengineering Process

(Process for FMCG Product) Product from Market

Step 1: Examination of
the product to determine characteristics. a) What type of process was it manufactured by? b) What would be its formulation/recipe? C) What materials are used in its manufacture?

Step 2: Develop a full

technical specification for the product and production process.

Product Technical & Market Specifications

Step 3: Include any

improvements to the product

Probable Product Production Process

Step 4: Laboratory
development of formulation/recipe and development of production process

Laboratory Development & Production Trials

Return to lab. For any

modifications

Product Trials Step 5: Undertake

consumer product testing and production trials (Both consumer use & production)

Completed Product

 Insufficient Sales Insufficient Capital No business plan

No managerial focus
Inadequate records Lack of profit focus Cash flow Inadequate systems Failure to plan for taxation Inadequate resource management Break even point Failure to develop new products

Society & family, peers & role models, assumptions, values, beliefs, learning, mentors, perceptions

Influence on other paradigms

Cultural Paradigm
Peer groups mentors, society Commitment and ethics
Chance & Fate

Paradigm
Social & Educational Background Identify and exploit opportunities Resource gathering Customer orientated Sense of achievement Motivation & determination Adversity to risk taking Seek & identify opportunities

Upbringing and family background, education and life experiences, stressful unexpected events, fate

Strategic Paradigm Personality Paradigm Creativity Paradigm

Innovative

Looking for benefits, effective performance, able to secure resources, overall vision, able to weigh things up in strategic way
Environment, peers, family, culture, realities, motivation, dedication, self assurance, self perception, morality, responsibility, accountability, adversity to risk taking (courage), stand on beliefs, level of comfort

Environment, triggers, inspiration, lateral & serial thinking, technical skills, ideas, opportunities, solution finding

Attributes of the Entrepreneur

Action Paradigm Interpersonal Paradigm

Health, personal energy, focus, time orientation, orientation to getting things done, orientation towards getting the right things done

In control of the business Able to inspire people

Selecting the right people, team/individual orientation, view of outside expertise, networking, interpersonal outlooks, management style, leadership, dominance/submissiveness

Ability to work with people Networking Experience

Positive & negative experiences, success & failure, education & skills, soft skills, talents and abilities

Skills Paradigm

Technical skills Soft skills Talents & abilities

The Potential Socio-psycho Factors that Influence Opportunity Discovery and Behavior.
World and work experience, education, culture, family upbringing, etc.
Personal Paradigms Alertness Motivation Prior Knowledge The Psych
Sense of self. ego, encoded assumptions, beliefs and values. Expectations, goals, self regulating restraints, etc.

Skills Influencers

Behavior

Perception

Creativity Propensity to Action Talents and Abilities Interpersonal

Personality Traits

Feedback

Motivational Trigger

Idea

GAP

What I do Who I am External event or internal feelings A Trigger Situation

How I feel

Outcomes

Strategic Outlook

People start businesses for the wrong reasons and mistake something they like for an opportunity

Size

First entrepreneurial phase Usually NPD strategies Usually time of increasing organizational rigidity Sales

Possible mature entrepreneurial phase Regeneration Mid-life crisis

An era of complacency and rigidity

Decline

Enterprise begins to take a past orientation

Profit

Pre start-up

Start-up

Growth

Maturity

Decline or rebirth

Entrepreneurship is just a stage in the firm lifecycle

Entrepreneurship Curriculum & Teaching

Without

Relevant Technology Knowledge & Training

The education system is hung up about measuring intelligence

Entrepreneurship has very little to do with intelligence. It is all about creativity. Otherwise one would have to be a professor to start a new business.

Unlike intelligence creativity can be taught

Surrounding Environment Domain &Field

New Ideas Unknown Opportunities Developing Strategies Solving Problems

The Metaphoric Concept of Creative Intelligence

Environmental Factors conducive to creativity

Environmental Factors that hinder creativity

Internal Influencing Factors Focus & Attention Creative Sensitivity Energy Emotion Curiosity Empathy Confidence Discipline Interest Passion

Perception
Motivational Trigger

Patterning
Thinking Processes (Self Organizing System) Prior Knowledge Patterned Thinking Processes

Cognitive Thinking Tools & Styles

Applied Thinking Tools, Manifestations & Elaborations

Domain & Field Acceptance/ Rejection

Memory Heuristics Belief Imagination Fantasy Experience Tacit Knowledge

Creative Product

Hunter (2012)

Knowledge (vocabulary) of odorous substances

Creativity Tool

Cognitive Skill

Imagination
Knowledge of potential strengths, weaknesses and applications of odorous materials

Olfactory sensitivity

Knowledge of outstanding fragrance creations within the domain

Curiosity, enquiry and experimentation

Perfumer Excellence

Practical knowledge & experience

Interest and passion

Process & Product

Time, patience, perseverance

Emotion Knowledge Base