Opportunity Attractiveness Matrix (OAM)

of

Case 2 and Case 6

In Partial Fulfillment

of the Requirements of the Subject

Business Enterprise Simulation

Submitted by:

Reden R. Patacsil

Grade 12 ABM A – Mapagmalasakit

Submitted to:

Mrs. Ermilyn P. Ramos

Business Enterprise Simulation Teacher

February 28, 2018

Opportunity Attractiveness Matrix (OAM) of Case 2
Element 1: Attractiveness Score and Justification
Market Potential
Virtual Assistant
(25%)
1. Market Need Rating: 5
Justification: Virtual assistants are
preferred by many businesses
nowadays as it is cheaper than
hiring people. It has a short
payback period as a laptop and a
monthly internet connection can
be paid after working for around
100 hours. Virtual assistants are
priced reasonably based on their
skills and experience and it is
cheaper than regular employees.
2. Market Rating: 4
Structure
Justification: The need for virtual
assistants will continue to grow as
long as businesses trust them with
performing their functions and
that their salaries stay lower than
regular employees.
3. Market Size Rating: 5
Justification: The virtual assistant
industry, as a part of the business
process outsourcing (BPO)
industry, is already established in
the country. It is big enough to be
ventured on.
4. Growth Rate Rating: 5
Justification: The industry is
growing fast since more and more
businesses all over the globe
outsource their administrative
functions.
5. Market Rating: 3
Capacity
Justification: The market is fully Justification: The market is still
Online Freelancer Training Agency
Rating: 4
Justification: Many aspiring
freelancers who do not have
enough skills, experience nor
background to perform a
freelancer’s job can seek the help
of online freelancer trainers
through online agencies. It is
preferred by many as it is more
convenient and affordable than
face-to-face training. The payback
period may be longer than that of
virtual assistants.
Rating: 3.5
Justification: With the increasing
demand for freelancers, a market
seeking online trainings will also
emerge. However, this is not as
good as the market of virtual
assistants.
Rating: 2.5
Justification: The market may only
have an average number of
potential customers as many
freelancers nowadays already
finished a degree before working.
It is still not too famous in the
country.
Rating: 4.5
Justification: The market is slowly
growing since the more and more
are becoming freelancers due to its
increasing demand.
Rating: 3
 capacitated but with lots of unpredictable.
competitors including call center
companies.
6. Market Share Rating: 2 Rating: 3

Justification: The competition is Justification: Though the

very tough as there are millions of competition is not too much, it is a
other virtual assistants looking for bit difficult to acquire customers as
a job. this service is still not too famous.
7. Cost Leadership Rating: 4 Rating: 3

Justification: Doing the job is not Justification: The business is a bit

costly as a laptop and stable costly since you need to hire a few
internet connection is what is only trainers to make videos and other
needed. However, the course materials and assist the
entrepreneur must compete with trainees.
millions of other virtual assistants.
Average Score: 4.00 3.36
5+4+5+5+3+2+47=4 4 + 3.5 + 2.5 + 4.5 + 3 + 3 + 3  7
= 3.36
Description: High Market Potential Neutral Market Potential
Market Potential
4.00  25% = 1.00 3.36  25% = 0.84
Score:

Element 2: Attractiveness Score and Justification

Financial
Virtual Assistant Online Freelancer Training Agency
Feasibility (25%)
1. Net Income Rating: 4.5 Rating: 3

Justification: The market is Justification: The stream of income

considered to provide a somehow in the market of this business is
stable source of income as most unstable as they may prefer face-to-
employers hire virtual assistants face learning and they may not get
for a certain position already at a the service again once they received
company like a regular employee. training as they already acquired
Doing this job is also cost- the skills that they need. More so, it
efficient as only a laptop and a may be a little bit capital extensive
stable internet connection is as the online business needs to hire
needed along with some corporate a few online trainers to provide the
attires when facing the webcam customers with what they need.
while working.
2. Return on Rating: 4 Rating: 4
Investment and
Capital Justification: Return on Justification: Return on investment
Recovery investment is average. However, is high given an average to high
 Period given the small capital required to
start being a virtual assistant, it
can be said that the capital
recovery period is a little bit fast.
3. Capitalization Rating: 5
Justification: The capital is very
reasonable as only a laptop or
desktop computer with a webcam,
stable internet connection and a
few corporate attires is needed.
4. Free Cash Flow Rating: 4.5
Justification: The job will be
averagely liquid as the salary will
be received periodically. Income
growth depends on the ability of
Mrs. Bonfacio whether she will
be promoted. It will be more sales
or income intensive as the assets,
including the laptop and internet,
is not too large. The capital
required to start the job is low and
there will be a little research
development cost since a virtual
assistant needs to search
information to do his/her
function. The gross income will
be high as what is to be paid by
the virtual assistant are mostly
utility expenses like internet and
electric services which does not
cost too much.
Average Score: 4.5
4.5 + 4 + 5 + 4.5  4 = 4.5
Description: Highest Financial Potential
Financial
4.50  25% = 1.13
Potential Score:
trainee to trainer ratio. If this
happens, capital recovery will be
fast. However, this can only happen
if credibility is well-established.
Rating: 4.5
Justification: The capital is
reasonable for in an online training
agency, besides a laptop and
internet connection, the major
expenses will go the manpower
(trainers).
Rating: 4
Justification: The business is liquid
as online transactions works mostly
through cash and other cash
equivalents. However, sales growth
is low as the industry is still not so
known. It will be more sales
intensive as the assets which may
consist of laptops will only be
small. It will require a higher
working capital than virtual
assistants due to the payment which
must be made to the online trainers.
However, on the long run, it can be
said that there will be an average
gross income as there are salary
expenses besides the utility
expenses needed to provide the
training service to the customers.
3.88
3 + 4 + 4.5 + 4  4 = 3.88
High Financial Potential
3.88  25% = 0.97
 Element 3: Attractiveness Score and Justification
Competitive
Advantage and
Virtual Assistant
Entrepreneurial
Resources (50%)
1. Control Over Rating: 4
Prices,
Distribution, Justification: Mrs. Bonifacio can
and Costs demand a certain amount for her
salary with a company while
considering her ability and skills.
2. Barriers to Rating: 3.5
Entry
Justification: Entry is easy, but the
competition is tough given the
large number of virtual assistants.
Getting a job is highly dependent
on the skills and background of the
virtual assistant. There are
contracts or legal agreements
which must be made between the
virtual assistant and the employer.
Hiring a virtual assistant is also
accessible for the employers as
they only need to search at specific
websites which pools ready-to-be-
hired virtual assistants. Building
customer relationship is easy here
provided that you can do your
expected job or even beyond it.
3. Degree of Fit Rating: 5
Justification: Mrs. Bonifacio was a
banker for 5 years which is in line
with some of the skills
(accounting, finance, marketing,
and sales) needed for a virtual
assistant.
4. Entrepreneurial Rating: 4.5
and
Online freelancer training agency
Rating: 3
Justification: The price of the
service cannot be easily controlled
as the customers can easily switch
to other online training agencies.
However, it can be controlled a bit
if the business can significantly
improve its service and make a big
name in the industry.
Rating: 3
Justification: Entry is a bit more
difficult than virtual assistants as
there may already be some
established online freelancer
training agencies. Despite this, the
competition is still not too
aggressive as there are not too
many online freelancer training
agencies in the present. More so, it
is a business which is very
accessible to customers as it is
only one search away from them.
Building customer relationship is
easy in this business, provided that
you can provide to them the best
and unique online freelancer
training they need.
Rating: 4
Justification: Mrs. Bonifacio has
no background in training others
but she has gained significant
experiences and skills as a banker
for 5 years.
Rating: 4
 Technological Justification: Mrs. Bonifacio is
Differentiation differentiated to other virtual
assistants in such a way that she
has an experience of being a
banker for 5 years. This gives her
an advantage over other aspiring
virtual assistants.
5. Service Rating: 3
Management
Justification: Mrs. Bonifacio must
be adept in using the internet to
communicate with her employers.
Given her experience, she can
provide assurance to her
employers that she will be able to
provide the service that they need
her to do as a virtual assistant.
6. Timing Rating: 5
Justification: The job is right on
time due to the increasing demand
and it is also right on time in terms
of the resources since laptops and
internet connections are already
available, though it is somehow
expensive.
7. Fatal Flaw Rating: 4
Justification: The job has very
little risk since the capital required
is only small and the work which
is usually offered is for long-term.
Here, Mrs. Bonifacio can increase
her capital by getting promotions
by doing better service to the
employers.
8. Flexibility Rating: 4
Justification: Due to her
experience in the banking industry,
she can offer exclusive advices in
business, specifically, accounting
and finance. The business can also
be differentiated by training the
freelancers in a more unique and
efficient way and by offering a
wider range of trainings like those
for finance, marketing, etc.
Rating: 4
Justification: The business offers
training services to freelancers. As
such, the product of the service
can still be experienced after the
sale of the service through the
skills and abilities that the trainees
will gain. Also, services in here
are usually interrupted by the
internet connection by the clients.
Rating: 4
Justification: The job is right on
time as many want to be
freelancers but only an average
number of people know of such
service. As for the resources, it can
be said that the resources are
always available since what is
mostly needed to start the business
are laptops and internet
connections.
Rating: 3.5
Justification: The business is
averagely risky for despite the
capital needed which is somehow
higher than that of a virtual
assistant, a high return on
investment is not guaranteed since
the market is unstable. Also, not
too many know of this online
service.
Rating: 4
 Justification: Given Mrs. Justification: The business can
Bonifacio’s experience, adapt, in a fast pace, with the
adaptability in a much faster pace changes in the industry so that
can somehow be guaranteed. they can offer the latest need-to-
knows for a freelancer.
9. Opportunity Rating: 4.5 Rating: 4
Orientation
Justification: Mrs. Bonifacio can Justification: Mrs. Bonifacio can
look at her career as a virtual look at the business as a going
assistant as a going concern for it concern. It may somehow be long-
can offer lots of promotional term but not as much as that of a
opportunities and a long term virtual assistant.
source of income.
10.Pricing Rating: 4.5 Rating: 4

Justification: Mrs. Bonifacio can Justification: The prices may be

negotiate her salary with the affected by the competitors since
employer, provided that it is the potential customers can easily
reasonable considering her switch to other alternatives.
position as virtual assistant as well However, it can go for price
as experience and skills. leadership once the business
already made a name for itself.
11.Place of Rating: 4.5 Rating: 4.5
Distribution
Justification: The job is online- Justification: The business is
based. As such, it can be accessed online based. As such, services
and done in all places where there and transactions can be done
is a stable internet connection. where there is a stable internet
connection.
12.Margin for Rating: 3 Rating: 2
Mistakes and
Errors Justification: The margin of error Justification: The business cannot
for Mrs. Bonifacio as a virtual afford to make mistakes as they
assistant is only small since she may lose their credibility as a
has experience. However, she training agency if this happens.
cannot afford to make mistakes,
especially big ones, since it may
lead to the termination of her
contract with her employer.
13. Industry and Rating: 4 Rating: 3.5
Technical
Experience Justification: The entrepreneur is Justification: The entrepreneur is
highly skilled in the industry given highly skilled in the industry given
her 5-year banking experience. her 5-year banking experience.
However, she doesn’t have any
background in teaching nor

14. Integrity, Rating: 4
Concern for the
New Venture Justification: Mrs. Bonifacio has a
and Intellectual 5-year experience as a banker
Honesty which deals a lot with accounting
and finance. This makes her more
diligent with her job as she knows
how important it is to deal with
money and how her reputation as a
virtual assistant is at stake. She
also knows that if she does not
perform her job well, she may get
fired.
15. Personal Goals Rating: 4
and Fit
Justification: Mrs. Bonifacio’s
objectives are clear, and her
resources are widely available.
16. Desirability Rating: 5
Justification: Given Mrs.
Bonifacio’s situation as a mother
who needs to take care of her son
at home and her 5-year banking
experience, being a virtual
assistant is great for her.
17. Stress Rating: 4
Management
Justification: The work load of a
virtual assistant is less than a
banker. As such, given her 5-year
experience as a banker, it can be
said that she can bear the stress ofstress, especially those which are
being a virtual assistant.
Average Score: 4.15
4 + 3.5 + 5 + 4.5 + 3 + 5 + 4 + 4 + 3 + 3 + 4 + 4 + 4 + 4 + 3.5 + 4 + 4
4.5 + 4.5 + 4.5 + 3 + 4 + 4 + 4 + 5 + 4 + 4.5 + 2 + 3.5 + 3 + 4 + 5 + 4
+ 4  17 = 4.15
Description: High Competitive Advantage and
Entrepreneurial Resource Potential Entrepreneurial Resource Potential
Competitive 4.15  50% = 2.08
Advantage and
training. Thus, she must learn
more on those fields.
Rating: 3
Justification: Though Mrs.
Bonifacio has no experience in
training others, her experience as a
banker for 5 years makes her more
diligent as possible manager or
trainer, especially in finance and
accounting, at the online agency.
Also, she knows the financial
repercussions if the training that
they will give is not good enough.
Rating: 4
Justification: Mrs. Bonifacio’s
objectives are clear, and her
resources are widely available.
Rating: 5
Justification: Running an online
freelancer training agency matches
Mrs. Bonifacio’s lifestyle and
preferences as she is a mother who
needs to take care of her son at
home and she has a 5-year banking
experience.
Rating: 4
Justification: Since she will
venture into an online training
agency business, it can be said that
she will be able to handle the
financial in nature, since she has 5-
year banking experience.
3.74
 17 = 3.74
High Competitive Advantage and
3.74  50% = 1.87
 Entrepreneurial
Resources
Potential Score:

SUMMARY

Opportunity
Online freelancer training
Attractiveness Virtual Assistant
agency
(OAM) Elements
Market Potential High Market Potential Neutral Market Potential
(25%) 4.00  25% = 1.00 3.36  25% = 0.84
Financial Potential Highest Financial Potential High Financial Potential
(25%) 4.50  25% = 1.13 3.88  25% = 0.97
Competitive High Competitive Advantage and High Competitive Advantage and
Advantage and Entrepreneurial Resource Potential Entrepreneurial Resource Potential
Entrepreneurial 4.15  50% = 2.08 3.74  50% = 1.87
Resources (50%)
Total 4.21 (Highest Potential) 3.68 (High Potential)

The OAM results for Case 2 shows that between being a virtual assistant and establishing
an online freelancer training agency, the first one is more promising as it showed a result of
highest potential, specifically, high in market potential and competitive advantage and
entrepreneurial resource potential, and highest in financial potential. Despite having a good
overall potential, some specific elements are still rated neutral and low potential. As such, Mrs.
Bonifacio must come up with ways on how she can avoid risks or minimize the effects of the
risks which may be encountered. She must come up with contingency plans to avoid
encountering threats which may be brought up by the risks of her possible business venture.
Opportunity Attractiveness Matrix (OAM) of Case 6
Element 1: Attractiveness Score and Justification
Market Potential
Harana online booking
(25%)
1. Market Need Rating: 3
Justification: Nowadays, the
tradition of serenading is coming
back. It is very prominent among
young couples. Those who want to
do this can hire the Harana online
booking. The payback period is
about 2 years given the equipment
needed for the business like
musical instruments. The service is
new but it may somehow be
expensive since a single harana
entails lots of costs including
designs and transportation.
Moreover, a small number of
people may only be the ones who
will buy the service since they
may do the harana themselves or
they may seek the help of their
friends to do the harana.
2. Market Rating: 2
Structure
Justification: Services involving
Harana are a bit declining since
the youth of today are becoming
more straightforward. Also,
harana is usually done only during
special events in the life of a
couple.
3. Market Size Rating: 2
Restaurant with live band
Rating: 4
Justification: Many restaurants
today play music at their stores.
The people love it as it levels up the
service that the restaurant offers. It
makes a unique atmosphere and
source of entertainment for the
customers. Given this, it can be said
that a restaurant with live band is
something wanted, but not needed,
by many. The payback period,
which is longer than the Harana
online service, may be around 5
years since the business needs a
large amount of capital. The
business is not new to the public
already as many restaurants already
have live bands.
Rating: 4.5
Justification: Food is always a
staple need. This makes restaurants
needed, especially by people who
can’t find time to cook for
themselves. An emerging market of
people who prefers eating by
groups can be catered on by the
restaurant with live band since it
increases the level of intimacy
between the customers.
Rating: 4
 Justification: The harana is slowly
becoming a thing of the past.
Despite this, many are trying to
revive this tradition. From this, it
can be said that the industry,
though established, is not big
enough since it has a declining
trend.
4. Growth Rate Rating: 3
Justification: The market is
growing very slowly or not even
growing at all as evident by the
behavior of the youth.
5. Market Rating: 2
Capacity
Justification: The market can be
said to be undercapacitated since
not many people are interested
with paying money for harana.
6. Market Share Rating: 5
Justification: Competition is not
tough as the idea of harana online
booking is unique and if it there
are some who is offering it, it
would only be very few.
7. Cost Leadership Rating: 3.5
Justification: The business is
averagely costly since you only
need to buy musical instruments,
laptop, internet connection and pay
for transportation and designs
which may be requested by the
customer for the actual rendering
of the service.
Justification: The market is
somehow established since there
are already a number of businesses
offering the same service. Also, the
market can be said to be moderately
big for the business to venture on
because though many people prefer
to eat outside, a number prefer to
eat quietly for the purpose of
concentrating with what they are
doing or talking quietly with
someone.
Rating: 4.5
Justification: The market is
growing somehow fast since people
are becoming more open-minded
with the idea of live performances
and bands and the idea of eating
outside rather than spending time to
prepare their own food at school.
Rating: 3
Justification: The market is only
averagely capacitated as though
many like eating while being
entertained, a number of people still
dislike loud sounds while eating.
Rating: 3
Justification: The competition is
slightly tough in this industry
because there are already some
competitors as well as restaurants
with established names.
Rating: 2
Justification: The business is costly
as you need a kitchen and a space
which can be owned by the owner
or rented. Also, several staffs which
must cook, serve or play for the
band must be hired.
Average Score: 2.93 3.57
3 + 2 + 2 + 3 + 2 + 5 + 3.5  7 = 4 + 4.5 + 4 + 4.5 + 3 + 3 + 2  7 =
2.93 3.57
Description: Neutral Market Potential High Market Potential
Market Potential
2.93  25% = 0.73 3.57  25% = 0.89
Score:

Element 2: Attractiveness Score and Justification

Financial
Harana online booking Restaurant with live band
Feasibility (25%)
1. Net Income Rating: 2 Rating: 3.5

Justification: The stream of Justification: The market is

income is unpredictable as harana
is not always done periodically but
usually on special events or
proposals. Also, the business is
expected to have a little profit
margin. This is because the
services requires a moderate
expense which includes costs in
transportation, internet and in the
designs which may be requested
by the customer and the demand is
not too great.
2. Return on Rating: 2
Investment and
Capital Justification: Since it is expected
Recovery that not too many customers will
Period pay for this kind of service, it can
be said that investment recovery is
slow.
3. Capitalization Rating: 4
unstable as people can go to many
places other than the restaurant with
live band like coffee shops, bistros,
diners, regular fast food restaurants,
and the likes. The business is also
costly due to the equipment and the
maintenance needs of the
equipment needed in the business.
Also, the raw materials needed for
food preparation are another
expenses. However, because the
demand is expected to be high, it
can be said that the income is on
the high.
Rating: 4
Justification: Although the capital
required of the business is very
high, the capital recovery may be
somehow fast due to the current
demand for restaurants and the live
band that it offers.
Rating: 3

Justification: Capital is reasonable Justification: The capital is high

as it is on the moderate side
because even though you need to
pay for musical instruments,
laptops and internet, the cost is not
that large as a restaurant with live
band.
4. Free Cash Flow Rating: 3.5
since most of the expenses would
go to building, kitchen equipment
and musical instruments for the
band. Despite this, it can be said
that it is reasonable as it is very
needed for the products and
services to be offered.
Rating: 4.5
 Justification: The business can
still be liquid after allocating funds
to the capital expenditures since
services are to be made through
cash payment. Sales growth as
well as gross income is expected
to be low given the presumed
demand for the service. It is more
of a sales intensive business and is
likely to have a lower working
capital since it does not require too
many assets and may only spend
an average amount of expenses to
render service to others. Research
development may only be low
since there are not too many
changes in harana services and
most information are available for
free online.
Average Score: 2.88
2 + 2 + 4 + 3.5  4 = 2.88
Description: Neutral Financial Potential
Financial
2.88  25% = 0.72
Potential Score:
Element 3: Attractiveness Score and Justification
Competitive
Advantage and
Harana online booking
Entrepreneurial
Resources (50%)
1. Control Over Rating: 4
Prices,
Distribution, Justification: Here, Ms. Bakunawa
and Costs can have a strong control over the
price since they have very little
competitors. Also, the business
itself can price the talents of the
performers of the harana,
Justification: Since the business
will most likely accept only cash as
a mode of payment, it is expected
that the company will have a good
liquidity. Also, since it is offering
food plus a live band which the
customers can listen to as they eat,
sales growth is expected to be high.
The working capital is expected to
be higher than the Harana online
service due to the expenses needed
for the raw ingredients as well as
salaries of the employees.
However, since the food products is
expected to sell well, the gross
income is expected to be a bit
higher. The business is asset-
intensive due to the need for
different cooking and musical
equipment and a building to
operate. Research and development
is not too high since most
information needed by the business
can be found for free online and
others can be by observing nearby
competitors.
3.75
3.5 + 4 + 3 + 4.5  4 = 3.75
High Financial Potential
3.75  25% = 0.94
Restaurant with live band
Rating: 2
Justification: Ms. Bakunawa does
not have a control over the prices
since there are lots of competitors
and people are likely to compare
the prices of one restaurant with
another. Switching to other
 however, this must be done in a alternatives is also relatively easy in
reasonable manner. this industry.
2. Barriers to Rating: 3 Rating: 2
Entry
Justification: Though it is easily
accessible online, this industry is a
little bit difficult to penetrate as
you need to find people who are
really inclined and highly devoted
in music. Also, as an owner, you
must really have a background in
music to create the best music for
the harana which can really touch
the customers so that loyalty in the
business can be built. This may be
the reason why the competition is
not very tough even though there
is not much legal required.
3. Degree of Fit Rating: 5
Justification: Since Ms. Bakunawa
can be said to be capable of
managing the business, as evident
by her degree in business
management, and she also has a
background in music as a singer it
can be said that she is highly fit to
establish the business.
4. Entrepreneurial Rating: 4
and
Technological Justification: The harana online
Differentiation booking service will offer live
music performance for harana
which are already on the market
and music which is composed and
lyricized by the musicians or by
Ms. Bakunawa herself. It makes
use of the digital way of booking
Justification: The most prominent
barrier here is the seemingly tough
competition among the existing
businesses. Also, capital required to
start the business is very large since
expenses on musical instrument,
cooking equipment and building
alone are already very expensive.
There are also lots of documents to
be prepared here since it involves
foods and health. Also, accessibility
may be difficult since the business
is likely to be located in a single
area only. As for the customer
relationship, it can be said that it
requires intensive work to build
loyalty since customers are only
likely to come back if the food is
delicious and presentable and the
live band makes good music.
Rating: 4
Justification: Since Ms. Bakunawa
can be said to be capable of
managing the business, as evident
by her degree in business
management, and she also has a
background in music as a singer it
can be said that she is highly fit to
establish the business. However,
she needs to learn more about the
restaurant industry.
Rating: 3.5
Justification: The music to be
featured by the live band are music
which were made by the band
themselves or by Ms. Bakunawa or
music which is already out in the
market. Also, the food to be offered
will follow the trends or the food
offered by local or foreign
 the service which is unique.
5. Service Rating: 4
Management
Justification: The business can
provide seamless service as long
as the planning for every harana is
done properly. The service can
still be felt after the service
especially if the couples who the
service was renders to managed to
level up their relationship.
6. Timing Rating: 2
Justification: The timing for
business opportunities is a bit off.
For the entrepreneurial resources,
it can be said that it is not too right
on time since Filipinos are not
open-minded with pursuing
careers in the music industry as
compared with other countries.
7. Fatal Flaw Rating: 3
Justification: The business may
experience a considerable amount
of risks despite the loose
competition since the service is
expected to not sell so fast. The
business can capitalize on how
they plan each harana and selling
their service higher in exchange
for the great music and planning
on how the service can be offered
to shock and excite the customers.
8. Flexibility Rating: 4
Justification: The business may be
a bit traditional in the use of
musical instruments but it adapts
fast and easily to the changes in
music as well as ways of
restaurants.
Rating: 3.5
Justification: The service may see
some interruptions in food
preparation. However, service can
still be offered as they are free to
stay at the restaurant to enjoy the
music even though they already
finished their food, given that there
are still some seats available for
immediate customers.
Rating: 4
Justification: The business
opportunity is right on time given
the demand. For the entrepreneurial
resources for the live band, the
timing is not too right as Filipinos
are not open-minded with pursuing
careers in the music industry.
However, with the resources for
food, the timing is right as the
prices of food in the country is
cheap, as compared with other
countries’ prices.
Rating: 4.5
Justification: The business is
expected to have little risks since
the competition is tough but the
food product may sell well and
create good profit. The business
may capitalize on the uniqueness of
the food choices and using the live
band to cater to special requests and
surprises for proposals, birthdays,
anniversaries and the likes.
Rating: 4
Justification: The business can
adapt well to the changes in music
but on the food, the business may
adapt slightly slow since the staff
must still be trained to prepare a
 transacting with the customer as it new dish before offering it to the
uses online booking. public.
9. Opportunity Rating: 3 Rating: 4.5
Orientation
Justification: Ms. Bakunawa can Justification: Ms. Bakunawa looks
think of the business as a going at the business as a going concern
concern but its life is unpredictable and she may continue to do so after
given the declining trend in doing a few years given the trends in the
harana among the youth. restaurant industry and if the
business will be able to develop a
great image in the market.
10.Pricing Rating: 4.5 Rating: 4

Justification: Ms. Bakunawa can Justification: The competition is

go for price leadership since the tough; As such, the prices must
competition is not too tough and only be set at a moderate level
the service is unique and can be considering the competitors’ prices.
expected to really be availed at a
high price given that the musicians
are skilled and the planning of the
harana is creative and organized.
However, the price cannot be set at
too high of a price as the
customers may be discouraged to
buy the service.
11.Place of Rating: 5 Rating: 3
Distribution
Justification: Since the business Justification: The products and
can provide bookings online, it is services of the business can only be
very accessible to the customers. availed on its physical store which
will be built near the center of a
city.
12.Margin for Rating: 2 Rating: 2
Mistakes and
Errors Justification: Here, errors in Justification: An error in the
planning can greatly tarnish the preparation of food, especially in
reputation of the business as a the sanitation, may lead to the
small mistake in planning can immediate closure of the business.
greatly affect the quality of the Also, the customers may rants in
harana. Also, angry customers social media if they don’t like the
may immediately post their music, food or service of the
sentiments in the social media. restaurant.
13.Industry and Rating: 5 Rating: 4
Technical
Experience Justification: Ms. Bakunawa is Justification: Ms. Bakunawa’s
equipped with a degree in business degree in business management and
 management and a background as
a singer. This makes her capable
of managing her harana online
booking business.
14.Integrity, Rating: 4.5
Concern for the
New Venture Justification: Given her
and Intellectual knowledge about business
Honesty management and capabilities as a
singer, as she knows the impact of
their harana to the customers as
well as their honesty in using the
music of other in serenading. As
such, she will be more diligent in
running the business and creating
great services since it can decide
the success and failure of the
business.
15.Personal Goals Rating: 4
and Fit
Justification: Her resources and
personal capabilities match the
business which also has a clear
goal.
16.Desirability Rating: 4
Justification: Since Ms. Bakunawa
is inclined in music and she has a
background in business
management, she is inclined in
running this business.
17.Stress Rating: 4
Management
Justification: Given Ms.
Bakunawa’s degree in business
management and her passion for
singing, she might be able to
manage and endure altogether the
a background as a singer makes her
capable of managing her restaurant
with live band business. But she
must learn more about food
industry since the business is a
restaurant.
Rating: 4.5
Justification: With a degree in
business management and a
background as a singer, she knows
well how food is made better by
music and how music is made
better by food. She also knows how
different problems such as
plagiarism of music, improper food
sanitation and food poisoning can
lead to the downfall of her business.
Based from this, it can be said that
Ms. Bakunawa will be more
diligent in running business to
make sure that these cases will not
happen.
Rating: 3
Justification: Though it is unknown
if she has enough resources to start
the restaurant with a live band, it
can be said that she has a clear goal
in the business as well as personal
capabilities that match the business.
Rating: 3
Justification: Since Ms. Bakunawa
is inclined in music, but little to no
in the food industry, and she has a
background in business
management, she is somehow
inclined in running this business.
Rating: 4
Justification: Given Ms.
Bakunawa’s degree in business
management and her passion for
singing, she might be able to
manage and endure altogether the
 stress that the business may bring. stress that the business may bring.
Average Score: 3.82 3.50
4+3+5+4+4+2+3+4+3+ 2 + 2 + 4 + 3.5 + 3.5 + 4 + 4.5 + 4
4.5 + 5 + 2 + 5 + 4.5 + 4 + 4 + 4 + 4.5 + 4 + 3 + 2 + 4 + 4.5 + 3 + 3
= 3.82 + 4 =3.50
Description: High Competitive Advantage and High Competitive Advantage and
Entrepreneurial Resource Potential Entrepreneurial Resource Potential
Competitive
Advantage and
Entrepreneurial 3.82  50% = 1.91 3.50  50% = 1.75
Resources
Potential Score:
Summary
Opportunity
Attractiveness Harana online booking Restaurant with live band
(OAM) Elements
Market Potential Neutral Market Potential High Market Potential
(25%) 2.93  25% = 0.73 3.57  25% = 0.89
Financial Potential Neutral Financial Potential High Financial Potential
(25%) 2.88  25% = 0.72 3.75  25% = 0.94
Competitive
High Competitive Advantage and High Competitive Advantage and
Advantage and
Entrepreneurial Resource Potential Entrepreneurial Resource Potential
Entrepreneurial
3.82  50% = 1.91 3.50  50% = 1.75
Resources (50%)
Total 3.36 (Neutral Potential) 3.68 (High Potential)

The OAM for Case 6 shows that between the Harana online booking and restaurant with
live band, the latter is more likely and feasible as a business venture as it yielded as result of high
potential, specifically, high in all the elements namely market potential, financial feasibility,
competitive advantage and entrepreneur’s resources. Despite this, some of the most evident
possible weakness of the business is the entrepreneur’s lack of experience and skills in the food
or restaurant industry, tough competition in the industry, and large capital required to enter the
industry. Given these circumstances, Ms. Bakunawa must not be confident enough that she will
achieve success with her business. She must anticipate all risks, especially those which are
related to the mentioned possible weaknesses. From this anticipation, she must develop plans on
how she can minimize the risks and continuously improve her goods and services to increase the
chances of success for her business and make a big name in the industry.