Opportunity

Attractiveness
Matrix

Submitted to: Teacher Josephine Maravilla

Submitted by: Maria Jeaia Cao (12-Pacioli
CASE
The Korean trends are spreading across
Nueva Ecija so fast like a wildfire that
almost every city in the province has a
Korean Restaurant and Korean Store.
Meanwhile, in Sto. Domingo, Nueva Ecija
there are no business like that. Those
residents of Sto. Domingo needs to go to
other far places especially Cabanatuan
just to buy the Korean food, merchandise
or product that they want. Ms. Cao is an
accountant and now she wants to enter the
business world and is thinking of the
possible business that she can put up in
Sto.Domingo where she lives.
 Element 1
Market Potential
(25%)

Element 1: Market Potential (25%)
1. Market Need
Does the business provide high value to
customers?
Does it have a short payback period?
If it is a product is it durable, affordable,
or new?
2. Market Structure
Is it a merging market or a declining one?
Attractiveness Score and Justification
Mix of Filipino and Korean Cuisine Restaurant Korean Clothing and Beauty Product Store
Rating: 4 Rating: 4
Justification: Justification:
Foods are one of the needs of people and a restaurant
provides it so this kind of business is always in demand.
It is noticeable that the fashion of the women in the
The Filipinos nowadays are being greatly influenced by the
Philippines especially the teenagers are influenced by the
Korean flavors so to mix it in a bowl together with a
Korean clothing. In Sto.Domingo, there are no korean
Filipino cuisine is a great twist. Another thing that's great
clothing stores yet so the demand is high. The clothes and
about this business is the fun within the menu since there's
beauty products will be affordable since the business will
no fixed mixture of any Korean or Filipino food. The
use the whole sale type of buying stocks. Payback period
customers get to choose their own mix. The presentation of
will also be short at around one year because the business is
the food will be similar to rice toppings in which the viand is
the only one in Sto.domingo who sells those products so
at the top of the rice so the product is not totally new, it's an
there's a great possibilty that the business will earn a large
innovation. As for the price, it's really affordable since the
amount of income.
target market are young people. The payback period will
be around one two years.
Rating: 5 Rating: 5
Justification: Justification:
The spread of international restaurants is very fast since one
The korean fashion industry here in the Philippines are
of the nature of people is to explore new things and flavors
already established and are continuosly growing. Even some
are good to explore. There are a lot of korean restaurants
of the known clothing stores in the country adapts the
spread within the country and Filipino restaurants also keep
korean fashion style.
improving.
3. Market Size Rating: 5 Rating: 3
Justification: Justification:
Is the market already established or still The target market is already established since the business
The target market is already established but it is only limited
unpredictable? aims to attract young people but there's also a great
to females because the clothes and beuty products that will
possibilty that there will be an expansion to the target
be sold will be exclusively intended for females. The size of
Will it be something worth the while of the market as time passes by. A restaurant is something worth
the business will just be small.
entrepreneur or just very small? the while specially that there's a lot of twist in it.

4. Growth Rate Rating: 5 Rating: 3

Does the market grow fast or slow?
Justification:
As for the development of the market, it grows fast because
the number of persons who are being fond of korean foods
are continuosly increasing. The Filipino cuisine having a
twist will really attract potential customers specially food
lovers.
Justification:
The growth rate of the market will not be fast since it's only
limited to females and even though there are a lot of females
who are fond with the korean fashion, it's not an assurance
that they will always buy clothes and products from the
business.

5. Market Capacity Rating: 3 Rating: 4

Justification: Justification:
Is the market fully capacitated or The market is capacitated, the number of fastfoods are high The capacity of the market is good but the number of times
undercapacitated? and as well as stalls who sells rice topping but as of now that customers will want to buy clothes and products have a
there's none with this physically same business. low number.
6. Market Share Rating: 5 Rating: 3
Justification: Justification:
Is it easy to acquire new markets? Acquiring or attracting customers will be easy because
It depends on the population of females in Sto.domingo
serving a bowl with a mix of Filipino and Korean cuisine is
who are fond of wearing korean style clothes and using
something new to the eyes and tongue of the people and
korean beauty products.
that new flavor is something that they can afford.

7. Cost Leadership Rating: 4 Rating: 4

Is it cost-efficient to sell/operate or too
costly?
Justification: Justification:
When it comes to the capital needed to establish the
When it comes to the capital needed to establish the
business, a huge amount is really important but more than
business, it doesn't need a huge amount since the business
half of the capital is only intended for the construction of the
just need a place to where it will be put up and the stocks
building. The percentage intended for the creation of the
of korean clothes and beauty products. The number of
products are not that costly which means that after all is set
equipments that will be used are low. The operating cost of
in business, the following expenses wil just be coming from
the business is also low.
the ingredients of the products.

Average Score (4+5+5+5+3+5+4)/7= 4.43 (4+5+3+3+4+3+4)/7= 3.71

Description High Market Potential High Market Potential

Market Potential Score (4.43)(.25)= 1.1075 (3.71)(.25)= 0.92
 Element 2
Financial Feasibility
(25%)
 Attractiveness Score and Justification
Element 2: Financial Feasibilty (25%)
Mix of Filipino and Korean Cuisine Restaurant Korean Clothing and Beauty Product Store
1. Net Income Rating: 4 Rating: 3
Justification: Justification:
Will it be steady or unpredictable stream of The income is expected to be steady since the product is
income? food and it will mainly be intended for lunch time and be
Will it have high cost of sales or will it be cost- established near schools but it would be a problem if
The stream of income is unpredictable but the business
efficient students are not allowed to get out of school since they
will make sure that the business will be cost-efficient.
are one of the target market. The business will offer
delivery services but ofcourse with additional payment.
The cost of sales will not be high.

2. Return on Investment and Capital Recovery Rating: 5 Rating: 2

Will the capital be recovered faster and with
high returns?
Justification: Justification:
The capital will be recovered faster and with high returns
because even though the price of the product is budget
friendly, it still ensures that that there will be no income It is unpredictable.
loss and there's also a high number of potential
customers.

3. Capitalization Rating: 5 Rating: 5

Justification:
Does it have reasonable or unreasonable
capitalization? The capital will be reasonable because it can be broken
down to two parts, the construction of the building as
well as the equipments needed and the percentage
intentended in making the product.
Justification:
The capital of the business is reasonable and will be
intended for the payment of the construction or rental
of the place and also for the payments to the supplier
of the products.
4. Free Cash Flow
Will the business still be liquid after allocating
funds to capital expenditures?
Will it have high or low sales intensive?
Will it be asset or sales intensive?
Will it require higher or lower working capital?
Will it incur high or low research and
development cost?
Will it have high or low gross income?
Average Score
Description
Market Potential Score
Rating: 3 Rating: 3
Justification: Justification:
The equipments needed for the business to operate are
just simple ones and not totally machines so even though
the business allocate funds for the capital expenditures it's
liquidity will still remain. As for the research and
development, it will have a high cost because the business
There are not much equipment needed for the business
is dealing with producing not only Filipino foods but also
to operate and just a low working capital is enough.
korean and to avoid injustice to the other country's
Research and development cost will be low and as
cuisine it is very important to allocate budget for the
well as the gross income.
practice or seminars of employees.The gross income is
possibly high because there will only be minimal expenses
for the maintenance of the building. The main expenses
will be coming from the ingredients of the product. That's
where suppliers take place.
(4+5+5+3)/4= 4.25 (3+2+5+3)/4= 3.25
High Financial Potential Neutral Financial Potential
(4.25)(.25)= 1.0625 (3.25)(.25)= 0.8125
 Element 3
Competetive Advantage
and Entrepreneurial
(50%)
 Element 3: Competetive Advantage and
Entrepreneurial (50%)
1. Control Over Prices, Distribution, and Costs Rating: 5
Will the business have a strong or weak control The prices of the products will really be decided by the
over prices, distribution, and costs?
2. Barriers to Entry
Is it easy or difficult to enter into this business?
Are there any legal or proprietary protections
required like exclusivity?
Is the competition not yet aggressive or tough
already?
Is the business accessible to customers?
Is it easy to build customers relationships or
does it required intensive work?
Attractiveness Score and Justification
Mix of Filipino and Korean Cuisine Restaurant Korean Clothing and Beauty Product Store
Rating: 2
Justification: Justification:
owner, the price will only get basis from other physically
It depends on the price that the supplier will give and
same business but will not follow the regular price for it
also it will base from the prices of competitors.
because there are differences. As for the distribution, the
business offers a delivery service.
Rating: 4 Rating: 5
Justification: Justification:
Even though there are already a lot of physically same
business, it's still easy to enter because customers are
It is easy to enter into this business because a low
always attracted to something new especially that the
amount of capital is needed. There are no legal or
viands used as toppings are not regular ones but instead a
proprietary protections required like exclusivity. The
mix of Filipino and Korean foods. The business will be
competition in Sto.Domingo is not yet aggressive. The
established where there is a high number of potential
business will be located on the market which makes it
customers. Building customer relationship would be easy
accessible to customers. It is easy to build customer
because the fun atmosphere will always be present in the
relationship.
business everytime a customer picks his or her own mix
of Filipino and Korean Cuisine.
3. Degree of Fit
Is the entrepreneur fit to establish the business? Justification:
4. Entrepreneurial and Technological
Differentiation
Is the business an "I first" (the concept is
original) or a "me too" (the concept follows
what the competitors are offering)?
5. Service Management
Will the business offer seamless service to its
customers, including after sales?
Rating: 5
Ms. Cao graduated with a Bachelor of Science in
Accountancy so managing the business especially
regarding with the finance and cash flows will be easy.
Rating: 3
Justification:
The rice topping kind of business is common but what's
different about my business is the varieties of viands that It is totally not an "I" first business because there are
it offers and also the way how it operates since there are
no fixed mix of the two country's foods.
Rating: 5
Justification:
The business will provide excellent quality of foods
because it wants to give justice to its own cuisine and as
well as the Korean's. It is required that the employees
would be approachable and accomodating so before and
after the sales is received the employees will give
excellent service.
Rating: 5
Justification:
Ms. Cao graduated with a Bachelor of Science in
Accountancy so managing the business especially
regarding with the finance and cash flows will be easy.
Rating: 2
Justification:
already a lot of the same business.
Rating: 5
Justification:
The business will sell excellent quality of merchandise
and products because it wants to give justice to the
quality of the korean clothing and beauty products. It is
required that the sales person would be approachable
and accomodating so before and after the sales is
received excellet service will be observed.
6. Timing Rating: 5 Rating: 5
Justification: Justification:
Is the business right on time where business Nowadays, korean foods are one of the trends that's
opportunities and entrepreneurial resources are why there's a already a lot of korean and samgyeopsal Nowadays, korean fashion is a trend here in the
conspiring? restaurant across the province of Nueva Ecija, so Philippines and even in the online business the korean
establishing a business with a twist of what is trend beauty products are being given much attention.
nowadays will surely be great.

7. Fatal Law Rating: 3 Rating: 3

Justification: Justification:
Is it risk free? Every business is not free from risks. In this business,
Every business is not free from risks. In this business, one
one of the risks is that there is a high possibility that
of the risks is that giving justice to the flavor of the korean
expectations of the quality of clothes will not be meet
foods may be difficult.
and also there's an unpredictable stream of income.

8. Flexibilty Rating: 4 Rating: 2

Is the business adaptable to change is it
traditional?
Justification: Justification:
The business can adapt to change because as time passes
The business may not be able to adapt with the changes of wants of the females. Also, innovation is
by it can add or innovate its product.
9. Opportunity Orientation Rating: 5 Rating: 5
Justification: Justification:
Does the entrepreneur think the opportunity is
The business can be achived within a year since the
long-term or just short-term? The business is a short-term opportunity because it can
establishment that will be constructed is not that big and
be achieved within a year.
finding korean ingredients is also easy.

10. Pricing Rating: 3 Rating: 3

Justification: Justification:
Will the entrepreneur go for price leadership or The price of the product will not be similar to the regular
will he or she lower prices? rice topping price because it doesn't only offer simple The business aims to offer good quality merchandise and
viands but as much as possible the business will make products but with a lower price.
sure that the price is affordable.

11. Place of Distribution Rating: 5 Rating: 5

Justification: Justification:
Is the business accessible to many or to a
The business will be established to where there are a lot
limited few only? The business will be established to where there are a lot
of potential customers and those places are usually near
of potential customers like in the market.
the schools or workplace.
12. Margin Mistakes and Errors Rating: 5 Rating: 5
Justification: Justification:
Can the entrepreneur afford to commit mistakes
There are no room for mistakes in this business because There are no room for mistakes in this business because
or is he or she not ready yet to risks?
one of its good features is that it's easy to manage since one of its good features is that it's easy to manage since
Will the entrepreneur have the prospensity to
the way it operates is really simple. the way it operates is really simple.
succeed?

13. Industry and Technical Experience Rating: 5 Rating: 4

Is the entrepreneur highly skilled and
experienced in the chosen industry?
Justification: Justification:
The food industry is quite tricky and for an entrepreneur
to succeed he or she must always think about something Ms. Cao is really not into fashion but being an
new or interesting twists. Being an accountant is very accountant is very useful because Ms. Cao have studied
useful because Ms. Cao have studied about marketing about marketing strategies so when it comes to skills
strategies so when it comes to skills she's not behind at she's not behind at all.
all.

14. Integrity Concern for the New Venture and

Rating: 5 Rating: 5
Intellectual Honesty
Justification: Justification:
Does the entrepreneur have a high degree of
integrity and concern for the new business? Being an educated person, Ms. Cao has a high degree of Being an educated person, Ms. Cao has a high degree
integrity and because she loves her business her concern of integrity and because she loves her business her
Is the enrepreneur willing to understand what he for it is also high. concern for it is also high.
or she does not know?
15. Personal Goals and Fit
Does the entrepreneur have clear objectives
and do these objectives match his or her
resources?
Rating: 5
Justification:
Ms. Cao have clear objectives on why she wants to start
a business and one of it mainly is to support her family
financially and to bring the Korean Cuisine closer to the
residents of Sto.Domingo.
Rating: 5
Justification:
Ms. Cao have clear objectives on why she wants to
start a business and one of it mainly is to support her
family financially and to provide females in Sto.Domingo
an access to the korean fashion and products.

16. Desirability Rating: 5 Rating: 2

Justification: Justification:
Does the business match the entrepreneur's
Ms. Cao is a food lover so the business really matches
lifestyle and preference?
with her lifestyle and also her preference because she is Ms. Cao is not really into fashion.
fond of korean foods.

17. Stress Management Rating: 4 Rating: 4

Justification: Justification:
Will the entrepreneur be able to bear the stress
Managing a business is really stressful but if you love
that a new business brings? Managing a business is really stressful but since Ms.
what you are doing it should be easy. Ms. Cao and her
Cao is an accountant she'll be able to handle it.
business fits together so she'll be able to bear the stress.

Average Score (5+4+5+3+5+5+3+4+5+3+5+5+5+5+4)/17=4.47 (2+5+5+2+5+5+3+2+5+3+5+5+4+5+5+2+4)/17= 3.94

High Competetive Advantage and Entrepreneurial High Competetive Advantage and Entrepreneurial
Description
Potential Potential
Competitive Advantage and
(4.47)*(.50)= 2.23 (3.94)*(.50)= 1.97
Entrepreneurial Resources Potential Score
RESULTS and EXPLANATION
 Mix of Filipino and Korean Korean Clothing and Beauty
Opportunity Attractiveness (OAM) Elements
Cuisine Restaurant Product Store

High Market Potential High Market Potential

Market Potential
(4.43)(.25)= 1.1075 (3.71)(.25)= 0.92

High Financial Potential Neutral Financial Feasibilty

Financial Feasibilty
(4.25)(.25)= 1.0625 (3.25)(.25)= 0.8125

High Competetive Advantage High Competetive Advantage

Competetive Advantage and Entrepreneurial and Entrepreneurial Potential and Entrepreneurial Potential
(4.47)*(.50)= 2.23 (3.94)*(.50)= 1.97
TOTAL 4.4 (High Potential) 3.7025 (High Potential)

The results show that between a mix of Filipino and Korean Cuisine Restaurant and
a Korean clothing and beauty product store, the most viable business venture is
the first one. It is because it scored high in all the elements on the other hand, the
second one scored High in Market Potential, Neutral in Financial Feasibility and High
in Competetive Advantage and Entrepreneurial. The result is in-between neutral
and high potential, so Ms. Cao has to come up with the necessary risk mitigants,
measures how to counter business risks, in order to counter the potential threats.