Venture Opportunity Selection Model $($VOSM$)$

This graded activity will be completed in your newly finalized project teams.

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$1)$ Download this file from eConestoga, complete the exercise as explained, and submit your completed file to the Assignment dropbox for Graded Activities. This is a group evaluation.

$2)$ Read Stage $2$ in your textbook. Then as a group, brainstorm five $(5)$ potential new small business ventures that you might consider for the Term Project this term. $($Note: you do NOT have to select a final Term Project idea for this activity today, we will finalize our Term Project topics next week, in Week #$3).$ When you have a list of five, discuss $/$ share the ideas with your professor to determine if they are suitable and then select any two $(2)$ of the small business ventures to complete this activity.

$3)$ Your team is to take what they consider the two $(2)$ most promising or interesting concepts and test them against one another using the VOSM. $($Note$,$ this activity is to assist students with understanding screening of potential ideas for business opportunities. Again, the business concepts you compare for this activity does not mean the team is bound to a particular concept for the Term Project as additional research and exploration will need to be completed over the next week or two$).$

$4)$ Start by writing a brief two $(2)$ to three $(3)$ sentence description of the two small business concepts you are using for this exercise.

a$)$ Small Business Venture #$1$:

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b$)$ Small Business Venture #$2$:

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$5)$ Follow the five $(5)$ steps listed on the next page to complete the activity. When complete, all six tables plus the Summary table will be filled in$.$

SUMMARY TABLE

$$Business Idea #$1$

$$Business Idea #$2$

$(1)$ Market $--$

$(2)$ Innovation $--$

$(3)$ Strategy $--$

$(4)$ People $--$

$(5)$ Investment $--$

$(6)$ Learning $--$

Totals Sum of $6$ scores above... Sum of $6$ scores above...

$6)$ Based on the scores in the Summary Table, select which New Business Venture you would choose and provide a brief description as to why:

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Opportunity selection model steps:

$1)$ For each of the six $(6)$ tables shown below, look at the factors identified, $($middle column$),$ and discuss as a team to decide which side column, $($high value or low value$),$ each of your two $(2)$ business concepts falls into.

$2)$ Mark a symbol $1$ for both businesses in either box on each factor which most closely matches your business opportunity. Complete this for BOTH concept #$1$ and concept #$2,$ so you should end up with thirty $(30)$ different symbols for each business.

$3)$ When complete, count how many factors for each concept have been marked in the high$-$value opportunity box, $($left hand column$).$

$4)$ Count each $$symbol$$ as $1$ point and give $0$ points for factors marked in the low$-$value opportunity, $($right hand column$).$

$5)$ Input the point totals for each of the six tables for both concepts in the Summary Table above and calculate the totals.

Input Tables.

High$-$Value Opportunity $(1)$ Market Low$-$Value Opportunity High$-$Value Opportunity $(2)$ Innovation Low$-$Value Opportunity

Able to access market of growing size and value Market growth Limited growth potential in smaller markets Able to lead the market using prior experience Innovation leadership Learn as you go along to catch up

Known, identifiable customers in defined market sector Customer base Limited or non$-$specific customer base Application solves a problem informed by customers$$ needs Innovation related to customer needs Application does not solve customers$$ real problem

Customer reliance on product increasing over time Customer reliance and convergence Customer not reliant on product, divergent from their needs Differentiated technology; optimal performance and cost benefits Technology differentiation Undifferentiated technology; marginal performance and cost improvement

Trust and open relationships with clients; compatible practices Customer interaction Adversarial customer re