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Strategic positioning is the positioning of an organization in the future, while taking into account the changing environment, plus the systematic realization of that positioning.

Professional trend-spotters are some entrepreneurs who spot the trends themselves and charge big money for reports and industry trend updates.

Once the solution is identified their vision to convert the solution into business opportunity help them to move forward, overcoming all the obstacles.

Trend spotting will helps the entrepreneur to understand the market and produce goods or provide services in collaborate and integrate with the market trends, changing habits, consumers taste and preferences, etc.

The entrepreneur should be able to creatively identify an idea so that he can easily generate a valuable solution to a problem.

The various sources which lead to the emergence of basic ideas. 

(i) Problems: When a problem exists, an idea leads to a solution to resolve that problem, emerges as a business opportunity. 

(ii)Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a business, 

(iii) Inventions: New products or services leads to new business opportunities. 

(iv)Competition: Competition often results in emergence of new and better ideas that result in new business opportunities. 

(v)Innovation: Creating new things of value as well as new and creative processes that add value to the existing products or services. For example, computers to tablets.

Some sources of information are:

Magazines, journals, books, seminars, trade shows, family members, customers, friends, competitors.

The various sources which lead to the emergence of basic ideas. 

(i) Problems: When a problem exists, an idea leads to a solution to resolve that problem, emerges as a business opportunity. 

(ii)Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a business, 

(iii) Inventions: New products or services leads to new business opportunities. 

(iv)Competition: Competition often results in emergence of new and better ideas that result in new business opportunities. 

(v)Innovation: Creating new things of value as well as new and creative processes that add value to the existing products or services. For example, computers to tablets

The entrepreneurs perceive opportunities, synthesize the available information and analyse emerging patterns that escape the attention of other people. They are people with vision, capable of persuading others such as customers, partners, employees and suppliers to see the opportunity, share and support it.

It refers to an attractive and accessable economic idea which could be implemented to create a business, earn maximum profit, and leads to further growth.

A business idea or opportunity comes from day-to-day problems of people and an entrepreneur is the person who solves it and fulfils it by providing product or services to people.

So the first step is to obtain a concept of the product or service suggested bone idea. We should also see whether this product is already available in the market or not. If it is, then we should identify the reason for introducing the same product or service in the market. For example, innovating a new pen drive especially for teachers which will have a built in antivirus and which can be worn like a watch. So, it minimises the problem of losing the pen drive.

Yes, Sonam is an entrepreneur. 

(i)Sonam’s one year occupational experience provides her confidence to start her own business. 

(ii)It converted her hobbies into reality by sheer hard-w v and application of mind. 

(iii)Her desire to work independently and potential efforts, helped her to reduce the element of uncertainity. 

(iv)She is innovative as she created new idea and new market to start business. 

(v)Understanding of the area/market in which she is going to start her business. •She is a creative entrepreneur as, she has taken initiative and created an opportunity for innovation, experimentation and production. 

•Her competitiveness which means willingness to compete honestly with others and providing quality product and services and reduction in price. 

•She is an innovator of ideas, products, practices, services to meet the perceived opportunity, a lot of effort has done by Sonam to convert her dream into reality. Value points: Initiative, resourcefulness, service to others, social service, unwillingness to hurt others.

(i) The process that helped Lalitha Devi is Sensing entrepreneurial opportunities. 

(ii)Partnership form of business organi¬zation was formed by Lalitha Devi. 

(iii)Values involved are Courtesy; fostering respect for differences; sensitivity to environment, good behaviour in human interaction; sharing, compassion, empathy; discipline; responsibility; respect for law and order; conflict resolution; team work; honesty and integrity.

Idea germination stage of ‘The Creative Process’ is described in the above lines.

Environment means surroundings. Environment of a business means forces (economic, social, political technological), etc. and institution (suppliers, customers, competitors, etc.) Outside the firm with which an entrepreneur must deal to achieve its goal.

Information for environmental scanning can be collected from several sources. These include: 

(i)Verbal communication and time to time information from: customers, wholesalers, retailers, distributors, consultants., stakeholders, etc. 

(ii)Complete records of companies. 

(iii)Government publications and information. 

(iv)Publications by various financial institutions and related organisations. 

(v)Formal studies conducted by strategic planners.

Some environmental factors crucial for an entrepreneur are:

Political factor: Political factors is the outcome of a combination of various ideologies advocated by different political parties. The rules and regulations and the laws that monitor and regulate the market forces are framed and promulgated by the government. This include the political factor. These policies generated aims at improving infrastructural facilities which encourage new business ventures. For example, After relaxation of import-export policies, an entrepreneur who exported textile material used its earning to import heavy industrial machines. Socio-Cultural factor: Business is bom and develops in society and in it various social factor exists. It involves a close study of the life styles, beliefs, customs, conventions, practices, etc. Expectations of individuals their preferences on the basis of their family background, age group and education will also form a part of this study. The main of an entrepreneur is to satisfy the need of all individuals of a society. Ex. An entrepreneur wants to open a showroom of branded footwears. Hence, he will target the high income group of society. 

Economic factor: It includes the close study of important variables like supply and demand. Details of consumer trends, economic preference, costing, discounting, etc. are all economic decisions. Economic details will also help the entrepreneur in determining the size of the project and the reasons of finance. Legal and Finance factors: Legal scanning of the environment demands analyzing the legal requirements in the establishment of a project. Managing of the project and also in getting assistance from different sources, e.g. welfare of employees, safety, simple contracts entered into with suppliers of raw materials financer’s, real estate owners, etc. require legal assistance.

Sensitivity to environmental factors is crucial for an entrepreneur. If a company is able to adapt to its environment, it would succeed in the long run. E.g., Sony failing to understand the changing trends in mobile phones and therefore losing it’s market share.

Following are the sources for collecting the information for environmental scanning: 

(i) The sources can be obtained by analyzing the verbal information from customers, wholesalers, retailers, distributors, consultants, etc. 

(ii)The record of the companies is also analyzed. 

(iii)Various sources can be obtained by analyzing the various government publications. 

(iv)The sources can be obtained by the publications of various financial institutions.

Before selecting an opportunity, the entrepreneur has to ensure two things: 

(i)There should be a good market for the product he is going to introduce/ produce. 

(ii)The rate of return on the investment should be maximum and attractive and can be accepted by him.

Importance of Environment: Sensitivity to environmental factors is crucial for an entrepreneur. If a company is able to adapt to its environment, it would succeed in the long run. For example, Sony is failing to understand the changing trends in mobile phones and therefore losing its market share. The benefits of understanding the relevant environment of business are: 

(i)Identification of opportunities to get first mover advantage: An entrepreneur must be keen and alert and must be aware of all the changes in the external environment, so that he can identify opportunities and find strategies to capitalise on the opportunities at the earliest. For example, Volvo, the Swedish brand, has 74% share in the luxury bus segment as it had entered India earlier. 

(ii)Formulation of strategies and policies: An entrepreneur must be capable of formulation of strategies and policies which is really going to help in identifying threats and opportunities in the market. 

(iii)Tapping useful resources: If an entrepreneur has complete and a thorough knowledge of the external environment, then easily he can tap raw materials, technology and even financial resources from the market at economical prices, at the right time. 

(iv)Better performance: Proper understanding of the various elements of the external environment is necessary to take timely action to deal with threats and avail opportunities for the purpose of improvement in the performance of the firm. 

(v)Sensitisation of entrepreneurs to cope up with rapid changes: A keen watch on the trends in the environment would help sensitise the entrepreneur to changing technology, competition, government policies and changing needs and taste of the customers. For example, trends in clothing, outdoor celebration of family events. Showing more interest in fast food, changing fitness trend. 

(vi)Image building: If a company is sensitive to the external environment, it will come out with new products and services to meet the requirements of the customers. This would build the image or reputation of the firm in the eyes of the general public. For example, call-radio taxis with additional features like GPS systems, online booking, etc.

The basic test of a successful entrepreneur is the identification of business opportunity in the environment and initiating steps to produce and sell goods and services to make use of the opportunity.

Business environment can be classified into two major categories:

The right information combined with the right adaptations can determine an organization future viability. If an entrepreneur is not aware of the environment surrounding his or her business, he/she will not succeed.

Opportunity lies in our surroundings. Successful entrepreneurs are always looking for opportunities to help others by providing creative solutions to their problems and needs. In business, entrepreneur always look for new ways to market our business, reach to target market and he creates opportunities by attending networking events, conferences, twitter chats, etc. for potential clients, meeting new people to refer business to or to grow our community.

Invention of radio, telephone, etc.

(i) To get familiar with environment (ii)To get .stability in the environment

Entrepreneurs spot business opportunities from problems and needs that exist in the environment.

Following are the other three steps: 

(i)Preparation: On the basis of the idea, interest and curiosity an entrepreneur starts looking for an answer to implement the idea. 

(ii)Incubation: This is an sub-conscious assimilation of information. 

(iii)Illumination: The idea resurfaces in a realistic way in the form of a viable plan. 

(iv)Verification: The idea is verified to prove that it has value.

If any individual is master/talented in any skills (hobbies) and are ready to teach others with passion then he can easily convert his/her hobbies into business idea. For example, teaching piano lessons (any other instrumental classes),teaching cooking classes, or teaching another language, spoken English and personality classes, coaching classes, selling handmade confectioneries, bakery items, handmade handicrafts, own small restaurant, etc. Example: “Mahila Griiha Udyog Lijjat Papad” hobbies converted into business.

Peter F. Drucker defined entrepreneur as one who has always searches for an opportunity.

Scanning of environment is always beneficial to an entrepreneur to know the present situation in the market, the various changes occurring in the economy as new trends, issues and expectations of people due to changes in the environment.

Idea fields are well defined frames of reference that guide the generation of ideas. Various idea fields are examined below: 

(i) Natural resources: The idea for a product or service can be derived from the available natural resources like 

(a)Agricultural

(b)Breeding and Caring of animals (animal husbandry) 

(c)Cultivation or Horticulture 

(d)Human 

(e)Mineral or Soil 

(f) Solar 

(g)Tidal 

(h)Wind 

Entirely new products or service related ideas can be generated from these resources or ideas to supplement these natural resources can be derived. 

(ii)Current products or services: It requires careful analysis of the existing products or services and put the expertise and imagination to improve the current products or services. The demand for a product or service or the need to tackle the competition will also help in origination of a new idea. As the value addition to the existing product or service is as good as inventing a new product, the existing products or services also act as a good source of new ideas. 

(iii)Demand or Market: Conducting a research in the market to procure the information relation to the gap between demand and supply, changing consumer preferences, trends, technology helps in the generation of new ideas for products or services. The data gathered is analyzed using business intelligence and helps as a good sources of new ideas. In addition to this, the demand prevailing in the market will also help in generation of new ideas. The analysis of the products and services offered by the competitors will also act as a valuable source for generating a new idea. 

(iv)Trade: As the globalization has expanded the scope of business to the entire world, a careful analyis of the prevailing trades and methods will act as a good source of idea generation. Earlier the trading was limited to local distribution network or grocery stores. However the trade has expanded from the local market to import and export of goods. The most recent revolution in the trade is e-commerce and has broadened the scope of trading globally and is not time bound. Thus it became a valuable, most effective, less risk prone area for originating new ideas.

(v)Service sector: As the society is becoming more educated and as there is tremendous growth in information and technology, it opened up new challenges and opportunities and became a great source for generation of new ideas in various entrepreneurial sectors. Few of the sources are in the 

(a)Service of home appliances 

(b)Automobile servicing 

(c)Fast food 

(d)Cool drink outlets 

(e)Ice cream outlets 

(f) Tourism 

(g)Personal grooming 

(h)Career counseling 

(i) Emigration services 

(vi)Creativity: Creativity being one of the most important competency of an entrepreneur plays a vital role in getting an idea for a new product or service or improving an existing product or service. Most often it is noticed that the need to solve a problem triggers creativity to come up with new ideas. It helps in 

(a)Adding additional value to an existing product or service 

(b)Innovate a new product or service 

(c)Innovate a new methodology or material to produce a product 

(d)Expand the demand and market for the current product or service 

(e)Expand the usability of an existing product or service

Such an analysis involves data collection, information processing and forecasting to provide a rational basis for developing goals and strategies for business survival and growth.

Creativity is an important key component of the talents and abilities needed for an entrepreneur. Often he can apply it to develop new products and services and creative products and services are born as results of problem solving. For example, 

(i) Someone found that while tightening screws, over tightening often resulted in damage to the fixtures. Here was a problem and the solution came in the form of a self-adjusting screwdriver which prevented over tightening. 

(ii) When doctors found monitoring of dosage of medicine to be given to patients on a regular basis by using traditional methods using a syringe cumbersome, by looking into a problem of most of the patients a pharmaceutical firm developed a new process of implanting the dosage of medicine required the patient for even discharge of in time and required dosage into the blood stream.

Creative products and services are born as results of problem solving.

The economic environment includes interest rates, inflation, business cycles, etc.

Market research is a process of working on various trends in market, it gives an organized effort to gathering information about target markets or customers. Marketing research is the means by which the necessary information necessary to run a business is obtained. It is the gathering, recording, and analysis of all facts about problems relating to the transfer and sale of goods and services from producer to consumer.

Transportation, communication, banking, courier services, event management, etc.

If the idea is generated through the market research. Such studies gives an entrepreneur information about trends of demand, supply consumer taste and preferences.

Following are few of the service sector based ideas related to commercial establishment: 

(i)Speciality tourism 

(ii)Indian fast food. 

(iii)Personal grooming salons 

(iv)Career counselling centres 

(v)Chain of repair and maintenance services for electrical/electronic products.

Supply position is the complete picture of quantities of the product made available in the market by all the existing players.

Spotting and generating ideas is the most important function in the process of environment scanning.

(i) keep up with the competition

(ii)increase sales

Yes, it is correct. The business environment is increasingly becoming uncertain and complex due to political realignments, economic crises, terrorism threats, technological innovations and natural disasters. In rapidly changing environments, one rule of thumb applies: If you don’t adapt, you don’t endure. It is the core idea behind environmental scanning, which refers to the means by which organizations gather information on changing conditions and incorporate those observations into a process where necessary changes are made. The right information, combined with the right adaptations, can determine an organization’s

future viability. Environmental scanning can help you identify the trends that are most likely to directly affect the organisation and product. Then an entrepreneur can craft a strategy that will help him take advantage of various changes occurring and get through the success and at the same time if he is not aware of what the environment surrounding his business he is sure to fail. 

(i)E.g., HMT watches lost its market to Titan; 

(ii)Sony failing to understand the changing trends in mobile phones and therefore losing it’s market share. 

Value Points: 

(i)Spirit of Enquiry 

(ii)Services to others 

(iii)Initiative 

(iv)Self-existent 

(v)Awareness of responsibility of citizenship 

(vi)Social service 

(vii)Endurance 

(viii) Tolerance 

(ix)To protect national property.

(i) Demand: The demand assessment will be based on the size of market being targeted and also involve a study of the groups of consumers, their preferences, tastes, etc. 

(ii)Supply and nature of competition: It is a study supply position what is meant is the complete picture of quantities of the product made available in the market by all the existing players including future supplies. 

(iii)Cost and price of product: To determine what will be the actual cost price and preferable selling price. This will influence the delivery mechanism of the identified product or service.

(iv)Project innovation and change:Market assessment will require a study of prevailing innovations and changes being carried out by existing entrepreneurs using technological advancements in the field.

Yes, it is true. All environmental factors are interrelated and exert the influence upon each other. 

Political Factor: Political factor is the outcome of a combination of various ideologies advocated by different political parties. The rules and regulations and the laws that monitor and regulate the market forces are framed and promulgated by the Government. The policies of the Government in power have to be reckoned and implemented: 

(i)for taking a business decision, 

(ii)growth of trade industry and commerce, 

(iii)aims at improving infrastructural facilities which encourage new business ventures, (iv)relaxation of import-export policies, Example: Taxation Policy, Trade regulations, Governmental stability, Unemployment Policy, etc. 

Socio-cultural Factor: 

(i)Business is born and develops in society and in it various social factors exist. 

(ii)It involves a close study of the life styles, beliefs, customs, conventions, practices, etc. Expectations of individuals their preferences on the basis of their family background, age group and education will also form a part of this study. 

(iii)This is a crucial process for the simple reason that the product or service that the entrepreneur envisages will have to satisfy the need of these individuals. 

Example. An entrepreneur wants to open a showroom of branded foot wears. 

Economic Factor: It includes the close study of important variables like supply and demand. Details of consumer trends, economic preference, costing, discounting etc. are all economic decisions. Inflation rate, growth in spending power, economic details will also help the entrepreneur in determining the size of the project and the reasons of finance. 

(i)Legal: Legal scanning of the environment demands analyzing the legal requirements in the establishment of a project. Managing of the project and also in getting assistance from different sources, e.g. welfare of employees, safety, simple contracts entered into with suppliers of raw materials financer’s, health and safety. 

(ii)Product Safety: Advertising regulations, product labeling, labour laws etc., real estate owners., etc. require legal assistance. Technical Factor: It is influenced by government spending on research, new discoveries and development, Internet, E-commerce, Social Media, Electronic Media, Research and Development, Rate of technological change government and industry focus employment law. 

Value points: 

(i) Truthfulness 

(ii) Universal 

(iii)Faithful justice 

(iv) Discipline 

(v)Helpfulness 

(vi)Readiness to cooperate.

Environment scanning refers to careful monitoring of an organization’s internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.