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Networking

The document discusses business environment assessment and networking in entrepreneurship. It defines business environment assessment as analyzing factors that influence an organization's operations. An important part of assessment is analyzing the external macro environment (political, economic, sociocultural, technological) and micro environment (competitive forces, suppliers, buyers, new entrants, substitutes). The internal environment of an organization includes its structure, culture and resources. Networking is defined as developing relationships to exchange information and resources, and its benefits include expanded influence, information, innovation and reputation building. The document outlines techniques for effective networking and managing networks.

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Aiman Azri
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48 views

Networking

The document discusses business environment assessment and networking in entrepreneurship. It defines business environment assessment as analyzing factors that influence an organization's operations. An important part of assessment is analyzing the external macro environment (political, economic, sociocultural, technological) and micro environment (competitive forces, suppliers, buyers, new entrants, substitutes). The internal environment of an organization includes its structure, culture and resources. Networking is defined as developing relationships to exchange information and resources, and its benefits include expanded influence, information, innovation and reputation building. The document outlines techniques for effective networking and managing networks.

Uploaded by

Aiman Azri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 16

OFPS Entrepreneurship 3e All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1


11
Chapter

BUSINESS ENVIRONMENT
ASSESSMENT AND NETWORKING
IN ENTREPRENEURSHIP
OFPS Entrepreneurship 3e All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 2
Business Environment Assessment and
Networking In Entrepreneurship

❑ AT THE END OF THIS CHAPTER, YOU WILL BE ABLE TO:


– Define business environment assessment.
– State the importance of assessing the business environment.
– Describe the process of business environment analysis.
– Discuss the components of the external business environment.
– Differentiate between the macro and micro components of the external
business environment.
– Discuss the components of the internal environment.
– Define networking.
– Describe the benefits of having a good network.
– Explain the types of networking.
– Describe the techniques to build a business network.
– Discuss the management of a business network.
– Explain the strategies for effective networking.
– Discuss the barriers to networking.

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3
Business Environment
Assessment

❑ Refers to a set of factors or conditions that exists


in a location in which an organization operates
that directly influences the functioning of the
organization.

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4
The Importance of Assessing
the Business Environment

❑ Detecting opportunities
❑ Foreseeing threats and warning signals
❑ Managing with rapid changes
❑ Improving performance

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5
The Process of Business
Environment Analysis

❑ Scanning
❑ Monitoring
❑ Forecasting
❑ Making an assessment

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6
The Macro Components of the
External Business Environment

P POLITICAL-LEGAL
E ECONOMIC
S SOCIO-CULTURAL
T TECHNOLOGICAL

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7
The Micro Components of the
External Business Environment
Competitive rivalry among companies in the industry

– Bargaining power of suppliers

– Bargaining power of buyers

– Threat of new entrants/ the likelihood of new entry

– Threat of substitute products or services

Porter Model (1980)

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 8
Components of Internal Environment

❑ Structure
❑ Culture
❑ Resources

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9
Networking

❑ Networking is the process of starting a mutually


beneficial relationship with other people in an
environment where they have the opportunity to
exchange information, develop professional or
social contacts, or other new resources.

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10
Benefits of Good Networking

❑ Expands influence and valuable contacts.


❑ Source of information and opportunities.
❑ Source of creativity and innovation.
❑ Develops new skills and practices.
❑ Mentoring opportunities and supports collaboration.
❑ Boosts one’s reputation and builds trust.

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 11
Types of Networking

❑ Formal business networking


❑ Informal business networking
❑ Referral business networking
❑ Industrial business networking
❑ Online business networking

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 12
Techniques of Business Network

❑ Always be prepared.
❑ Create two-way communication.
❑ Follow up.
❑ Make the occasional personal gesture.
❑ Help others achieve success.
❑ Extend out of the comfort zone.
❑ Ask for opportunities.
❑ Deal with rejection.
❑ Always say Thank You.
OFPS Entrepreneurship 3e All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13
Management of Business Network

❑ Stage 1: Planning the network


❑ Stage 2: Building the network
❑ Stage 3: Nurturing the network

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 14
Strategies for Effective Networking

❑ Choose the right networking group or event.


❑ Focus on quality, not quantity.
❑ Make a positive first impression.
❑ Explain clearly and briefly about the business.
❑ Follow up after the event.

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 15
Barriers to Networking

❑ Lack of knowledge
❑ Lack of preparation and research
❑ Bad manners
❑ Making empty promises

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