Business Enterprise

Simulation
 Introduction
Supporting and assisting students in developing high level
competencies is very challenging. Students are expected to
develop a broad range of skills (critical thinking, problem
solving and cognitive skills) in order to be prepared to
manage effectively at their future work. The economy is
changing rapidly generating more and more requirements
towards the students in terms of developing an ability to be
skilful, flexible and adaptable.
 Business simulations as active methods of
teaching and learning, can be used in the upper
classes of high school, during higher education and
in adult education.
 Value of the implementation of business simulations
in the learning process is in developing of two
competences for lifelong learning:
a) the entrepreneurial and
b) digital (according to the European Parliament and
EuropeanCouncil, 2006).
What is Business Simulation?
 Conventionally, a business organization is “an entity
formed for the purpose of carrying on commercial
enterprise” (Encyclopedia Britannica).
 According to Ruohomaki (1995) A simulation is a
working representation of reality; it may be an
abstracted, simplified or accelerated model of a
process. It purports to have a relevant behavioral
similarity to the original system.
 Identification of Business Opportunity

What is Opportunity?
Opportunity is defined as a
situation that enables an
entrepreneur to offer marketable
products or services to interested
buyers or end users.
 TYPES OF SITUATIONAL
FACTORS
1. Product or service is still not in
existence
2. Product or service is already in the
market but failed to satisfy the
customers – so need to be
improved
EMERGENCE OF OPPORTUNITY
 when people decide they have certain
needs and want to be satisfied, or
when people discovered a problem of
some kind that can be helped by a
product or service.
EMERGENCE OF OPPORTUNITY
 The presence of unfulfilled needs
and want and/or problems alerts the
entrepreneur to the potential
opportunity.
EMERGENCE OF OPPORTUNITY

The entrepreneur later creates a

business that is able to fulfill the
needs or want and/or solve the
problem.
 OPPORTUNITY
IDENTIFICATION
Opportunity identification is
a process that involved the
search for and discovery of
business opportunities
 APPROACH TO OPPORTUNITY
IDENTIFICATION
1. Observe changes in the environment
2. Recognize a need that customers
have that is not being satisfied
3. Recognize problems and find ways
to
solve it
 OBSERVING CHANGES IN THE
ENVIRONMENT
Changes in the environment give rise to needs and
wants and/or problems, and an opportunity emerges
Important environment forces to observe include :
1. Economic forces
2. Social forces
3. Technological advances
4. Political and regulatory statues
Examples of How Changes in the Environment Provides
Openings for New Product and Service Opportunities
 RECOGNIZE NEEDS AND WANTS

Opportunity occurs whenever there is a

need and want to fulfill. The term “needs”
refer to basic needs that the consumer
must have in order to live while the term
“wants” refers to a personal desire for
something that is more than a basic need.
 RECOGNIZE PROBLEM AND FIND
SOLUTION
 Problems can be recognized by
observing the challenges that
people encounter in their daily
lives. Solution to the problem
represented a business opportunity
OPPORTUNITY IDENTIFICATION
PROCESS

Recognize Discovery
Search for
needs and
changes in the
wants, and of
environment Opportunity
solutions