Stage Six

Action Plan

Stage Five

Market Development

Stage Four

Cluster Design

Stage Three

Opportunity Identification

Stage Two

Capacity Study

Stage One

Situational Audit

Required According to Terms f reference

Econ

omi

c G

eogr

aphy

Ap

proa

ch

(Por

ter

&

Dia

mon

d)M

odifi

ed

Glo

bal

Entr

epre

neur

shi

p M

onito

r (G

EM)

&

Hun

ter (

2009

) Ap

proa

ch

Use

of

Chec

lkis

ts

(Hun

ter

2009

&

Hun

ter

2012

)

Port

er

(Mod

ified

) &

Hun

ter

2006

,200

7,

2008

, 201

1

These pages map out a meta-framework suggestion for the Sarawak study. Our experience in Sabah showed that a sound methodology was paramount to successfully completing the study.

The writer has drawn together a number of theories that may be useful for the Sarawak study.

Murray Hunter

Stakeholders’ Analysis

Current Situation Aspirations Capabilities

(Observation, semi structured interviews)

Rural Communities & Agencies

6. Geographic issuesa) Topography – natural features, coast,

natural ports, dams, rivers, etcb) Natural resourcesc) Soil – erosion, nitrogen levels, heavy

metals, exhaustion, general sustainability d) Land productivity

5. Climatic issuesa) Temperature & UV Radiationb) Rainfall (where too much making problems

and too little affecting plant growth, limit on potential crops)

c) Latitude length of day – limit on possible crops

d) Altitudee) Climate change – effect of climate change

1. Outbound and inbound trade connections (Domestic and international)a) Landb) Seac) Aird) In-transite) Port and Inland Port

4. Infrastructurea) Roads, ports, airports, railways, dams, b) Water – storage capacity, irrigation,

drainage, toxins, catchments, erosion, salinity, etc.

c) irrigationd) Transport – access arteries e) ITf) Education facilities

3. Potential economic Activities (and scale)A) AgricultureB) FisheriesC) AquacultureD) MiningE) TransportF) Logging

G) Biodiversity H) Potential for food intensive

production –

2. Economicsa) General cost of livingb) Stock of housingc) Industryd) Ability to borrowe) Quality of Life f) Industry demographics.g) Control over prices/markets of state

based industries, i.e., control over mining, rubber, price fluctuations, etc.

h) General cost of land verses suitable activities (land use/cost ratio)

Situational Audit

Situational Audit

9. Legal a) Land ownership issuesb) Land distribution – land ownership traditions c) Level of respect for law, consistency,

enforcement, ability to litigate, legal protection

8. Pollutiona) Land / subdivision b) Waterc) Aird) Seae) Propensity of environmental issues

to become economic problemsf) History

7. Susceptibility to natural disastersa) Floodb) Stormsc) Tsunami, earthquakes, etc.

13. Governance a) Policies – rules & regulationb) Enforcementc) Result of what types of

processes, d) Delivery effectiveness,

12. Vision for the regiona) Look at Satun-Perlis Thesisb) Attitudes towards planningc) Attitudes towards regulationd) Cultural knitting e) Views towards progressf) Cohesiveness, unity of direction, diversity, acceptance

of diversity, open mindedness, vision, willingness to experiment, common values,

g) Level of community innovationh) Public opinion verses economicsi) General narratives

11. Underlying cost of living and ability to have a livelihood relative to other states/regions

10. Ability to adapt and change to changing environment

Product Space Map

This could be based on desktop secondary information to fill in the background information on the study. The specific

sectors the report focuses on could be given more attention with some primary information.

Agricultural Activities

Rubber

Palm Oil

Paddy

Fruit Production

Vegetable Production

Other Crops

Agro-Industry

Agro-Tourism

Handicraft

Fishing

Industry

Other Activities

Logging

Biotechnology

Service

Construction

Education

Transport Hunter 2011

A product space map is one way of summarizing information from the situational audit. It can be made as simple or complex as need be.

Lush Beautiful farmlands and hinterlands

Influx of out of region land

buyers

Rising land prices Less land available

for farming

Higher land taxes to support local infrastructure

Local people struggle to

survive

Increased conservation

Massive demographic

changes

Conflict of values Decrease in economic development

Locals emigrate from region

Increase land prices

Pictorialization of Diamond (2006) Collapse pp. 56 +++ Montana example

Cause and effect diagrams are good for showing the dynamics of the environment.

Modified Global Entrepreneurship Monitor (GEM) Model

GEM Framework

The Gem model is suitable for giving an indication about entrepreneurial readiness. Data can be secondary with categories adjusted for relevance. There is also a lot of comparative information using the same model on the GEM website.

Hunter 2009

Alternatively or in conjunction a checklist can

be used.

Competency Present Not Present

Comments

Technical 1. Botany2. Plant Physiology3. Chemistry/Analytical4. Micro-propagation5. Nursery Management6. Environmental Engineering7. Chemical engineering/thermodynamics/etc8. Soil Management9. Agronomy/plant nutrition/field management10. Entomology11. Irrigation engineering12. Agricultural Engineering13. Regulation knowledge14. Cosmetic chemistry/food etc15. Perfume/flavours16. Packaging & design17. Consumer product manufacturing

Basic

Basic

ExperienceExperienceExperience

Basic

BasicBasic

Low

Low

Low

LowLowLowLowLowLow

Need guidanceNeed assistanceNeed guidance Assistance AvailableCan design Need appraisalUse contractorUse instituteReplicated experimentsWith EnvironmentUse contractorCan developNeed assistanceLearn from experienceUse contractor

Opportunity/Entrepreneurial/Commitment1. Able to screen environment for opportunities2. Able to evaluate opportunities3. Commitment level

Yes Yes

Passionate Need to see realistically

Relationship1. Have relationships in target industries2. Have relationships in research area3. Have relationships in finance industry

A fewA fewSome

Organising/Management1. Able to project manage2. Able to administrate3. Able to financially manage operation4. Able to undertake research5. Able to keep key people motivated

YesYesYesYesYes

Strategic1. Understand dynamics of market and industry environment2. Able to plan for a business within this environment3. Able to implement, evaluate and adjust plans in this

environment

YesYesYes Believe so but not tested

Hunter (2009)

Desktop Screening Checklists

The novelty of a new essential oil

The potential uses & applications of the new essential oil

The closeness of any substitutes

The stability of the essential oil in applications

The cost/performance ratio

The Toxicity

The general consistency of quality and supply

The prevailing market/product trends

The current level of technology

Low Novelty High Novelty

Low Potential High Potential

Close Substitutes

No Close Substitutes

Poor Stability Good Stability

Poor Ratio Good Ratio

High Toxicity Low Toxicity

Low Consistency

High Consistency

Low Trend Match

High Trend Match

High likelihood of

synthesis

Low Likelihood of

Synthesis

A B D C

1. Product Characteristics

Genetic Material

Habitat & Topography Suitability

Soil Type, Texture & Drainage Suitability

Temperature Range Suitability

Rainfall Suitability

Access to Irrigation

Diurnal Radiation

Crop Maintenance Cycle

Pest, Disease & Weed Control Issues

Easily Available

Need to Develop

Very Suitable Not Suitable or Need to Develop

Very Suitable Not Suitable

Very Suitable Out of Range

Very Suitable Deficient or Excessive

Yes No

Very Suitable Out of Range

Common & Generic

Require Specialized Processes

Common & Generic

Require Specialized Processes

Harvest & Extraction Processes

Common & Generic

Require Specialized Processes

2. Agronomic Characteristics (if applicable)

Technology Required

Level of Mechanization Required

Research & Development Time-frame

Capital Requirements

Crop Cycle Timeframe

(Additional) Infrastructure Required

Regulatory Issues

Skills, Competencies & Capabilities Required

Networks, Market, Potential Competitors, etc.

Low & Generic

High & Specialized

Low and/or Generic

High and/or specialized

Short & straight forward

Long & Complex

Low High

Short Long

Low High

Low Need of Consideration

High Need of Consideration

Common & Generic

Rare & Specialized

Available Networks, Wide Market & high

competition

Need Network, Specialized

Market, Few Competitors

Potential Revenue High Low

3. The Project Characteristics

Hunter (2011)

Using lists are a very convenient desktop method of screening ideas to see if they are opportunities. The parameters can be changed according to relevance.

The Vision Platform Social demographics, culture,

generational outlook, experiences, Cognition, emotions, the psych & psychotic, & cognitive traps, etc.

Time & Space Stage of economic, social,

legal, & knowledge development,

The Ability to Make Connections

Cognition, creativity, problem solving, creative tools

The Sources of Opportunity

Market Void, Technology Infusion, Structural Changes,

Resource Monopoly, Regulation, Non-Innovative

The Resource Base

Personal Skills & Competencies,

Enterprise Capabilities

The Opportunity

Gap

The Ability to Build Networks

The Competitive Environment Influence of suppliers, customers,

complementary goods & substitutes, barriers to entry, the competitive field & influence of social,

technology, economic, & regulatory factors

Strategy

The elements that must be satisfied in order to be an opportunity Hunter (2012)Vol. 2

The Vision Platform Social demographics, culture,

generational outlook, experiences, Cognition, emotions, the psych & psychotic, & cognitive traps, etc.

Time & Space Stage of economic, social,

legal, & knowledge development,

The Ability to Make Connections

Cognition, creativity, problem solving, creative tools

The Sources of Opportunity

Market Void, Technology Infusion, Structural Changes,

Resource Monopoly, Regulation, Non-Innovative

The Resource Base

Personal Skills & Competencies,

Enterprise Capabilities

The Opportunity

Gap

The Ability to Build Networks

The Competitive Environment Influence of suppliers, customers,

complementary goods & substitutes, barriers to entry, the competitive field & influence of social,

technology, economic, & regulatory factors

Strategy

Complementary goods and Substitutes

Regulation Economic

Influence of customers The Competitive

Field

Barriers to Field Entry

Influence of suppliers

Technology Social

New Competitive

Field

New Opportunities

The Opportunity Gap & Competitive Field Analysis (Desktop)Hunter (2012), Vol. 2

OTOP Petani Competitive Analysis (Hunter 2008)

This can be done desktop with primarily

secondary information.

Plotting potential opportunities on the BCG matrix is primarily a subjective process or done according to the criteria within the checklists if points are assigned.

The Competitive Field

Barriers to Entry

Influ

ence

of

Supp

liers

Influ

ence

of

Cust

omer

s

Substitutes & Complementary

Goods

Networking

Resources

Competencies & Capabilities

Capital

Strategy

Link to the Enterprise

Hunter 2012 Vol 2

Cluster Structure: Fresh Flower Cluster Proposed Sabah SAIP 2007

- Of what already exists and what could be

Develop a model of the existing cluster and what type of cluster that would be needed to successfully develop a new industry.

Cluster Spin-off & Flow-on Effect in Tourism Industry Hunter (2012) Vol. 1.

New Resort Hotel

Directly Creates Jobs

Creation of Retail Businesses

Cafes

Restaurants

Tourist Shopping

Travel Related

More Jobs Indirectly Created

Creation of Service Businesses

Taxies

Other

Taxes Spent on Infrastructure

Contractors

Incomes support more businesses

Other resort Companies Attracted

to the Area

Resort Suppliers

Creation of Down market Accommodation to

Accommodation New market Segments

The spin-offs and flow-on effects of a new industry can be predicted.

ExampleAn example of a cluster model for OTOP in Thailand.

Organisational Capability Creative, Opportunity, conceptual, strategic, Learning, Organisational, financial, Technical,

Marketing, Networking and Commitment Competencies

How the Business is Currently Performing

The base for potential future Development

Resources Existing and Available to the Business

The Set of Potential Opportunities

Tim

e a

nd C

om

pany E

vo

lution

/Chan

ge

Enterprise Performance

Personal Objectives

Stre

ngth

s a

nd W

eaknesses

T

hem

e P

erso

nal Reso

urce

s Netw

ork

Pro

duct

Managem

ent F

inance

4 P

s &

Skills

Facilitie

s

Attrib

ute

s

Exte

rnal Influences &

Thre

ats

Mark

et E

conom

y R

egula

tion T

ech

nolo

gy

P

osi

tion Soci

al Si

tuation Change &

Com

petition A

spirations

D

evelo

pm

ent

Key internal influences on the strategic

process

The process of product/market development

Key external influences on the strategic

process

Competitive Position

Cognitive Bias

Structural/ Support Strategies

Interventional Strategies

Strategic Options

Sour

ce

Synt

hesi

s Ap

plic

ation

History Geography (Climate, Topography, Flora, Fauna, Economic)

Technology Political Economy

Social Institutions (Family, Religion, School, Media, Government, Corporations)

Demographics

Culture

Idea & Opportunity

Perceptions

The Competitive Field (Structure & Situational Factors)

Experience

Available & Potential Resources & Capabilities

Knowledge, Inspiration, Realization, & Creation

Adaption, Construction, Formation, Deconstruction,

Redefinition

Management Styles

Strategy

Cognitive Biases

Influences on Strategy

The steps and issues to follow in developing products from the clusters.

Opportunities

Cognitive Bias

An identified market where enterprise resources and competencies will be able to exploit

The potential opportunity will have a large enough market size to sustain the enterprise

The enterprise will be able to take advantage of this opportunity better than any other competitors

Outside elements in the supply chain will support the enterprise

Any factor or group of factors that will allow the enterprise to grow in a

sustainable manner within the market environment

Threats

Competitors identifying the same opportunities and enacting upon them

The regulatory environment and potential changes within it

Inability to penetrate the existing supply chain and make alternative strategies

Dependence on survival from a single or very few customers

Depending on a single product for total Any factor or group of factors that may potentially hinder enterprise growth in a sustainable manner without any contingencies verse

acts of God, bad weather, drought, etc.

Strengths

Personal and enterprise competencies, knowledge & experience that can be utilized for the benefit of the enterprise

Facilities, infrastructure, financial backing & liquidity, long timeframe view

Ability to learn through research and experimentation

Any network connections with industry and access to the supply chain for both information and marketing

Ambition and vision (but not delusional), focus & commitment

Ability to innovate technically, market and organizational wise

Any factor or group of factors that can assist the enterprise gain

competitive advantage over its competitors

Weaknesses

Competency gap Short term timeframe, no fall back position if positive results

delayed or there are technical or market failures Poor infrastructure that hinders production or marketing Shortage of funds to undertake project to completion Qualified or lack of commitment by any key people within

organization Lack of network, knowledge and access to supply chain

Any factor or group of factors that can hinder the enterprise gain competitive advantage over its

competitors

Opportunities are seen with bias according to knowledge,

experience, wisdom, educational background, market knowledge,

competencies, etc.

Risks/ Uncertainties

Any factor or groups of factors

that make outcomes uncertain

in the future

Any factor or groups of factors that may lead to venture failure

An opportunity evaluation framework

An example of market strategy options for essential oil products.

Construction New technologies

New Business models

Imitation Replication & Extension

Allocative Supply/Demand changes

Demographic changes

Discovery Incongruities

Structural changes

Locus of change

Value creation

Analytical

Deductive (Black & white)

Intuitive

Inductive

Degree of ambiguity Active/Imaginative

Passive/Reactive

The Types of Opportunities Available

These are the important market variables to focus upon in a long term marketing plan.

Company

Product Attributes

Theme

Consumer Aspirations Needs/Wants/Fantasy

Value Proposition

Developing branding themes

A report must consider all these variables

Actualisation (The Artist)

Self-fulfillment

Rice

Soap Fresh

Vegetables

Most Household Cleaning Products

Water Purifiers

Fashion Clothes (e.g. Jeans)

Chewing Gum

Car Air Fresheners

Travel & Vacations Fine Fragrances

Aromatherapy products Luxury cars

Nutraceuticals & herbs

Books Fine Dining & Processed Foods

Study after retirement Fresh vegetables (Organic)

Esteem (The Executive)

Achievement, prestige,fulfillment

Social (Worker) Family, relationships,

workgroups

Safety (The Farmer) Home, Security and stability

Physiological (The Hunter) Basic Biological Needs – Food, water, air

Different levels of aspirations and compatible product types.

Personality traits – thousands, important ones, locus of control, self confidence, self efficacy, introvert/extrovert, etc. Ego Age & generational identification Cultural identity National identity Racial & ethnic identity Sexual identity and sexuality Family background Educational background Social class identification Domicile outlook Attitudes and beliefs Sociability and acceptance Societal identification anchors Interests & hobbies Life experience Sensitivity Self knowledge and consciousness Religious, moral and spiritual beliefs Physical appearance

Self Concept (Who am I?)

The ideal self

The actual self

The social self

Anxieties

Anxieties

The meaning of possessions

Selective perception

Selective distortion

Some of the broad aspects of self concept

The concept of spiritual materialism

Some major brands and the aspirations they tap.

Brand Image and Emotions Associated with brandMcDonalds Family enjoyment and togetherness around a fast food meal.

Nike Transformation on the sports fieldNorgen-Vaas Ice Cream Indulgence

The Body Shop Social equality and justice in businessDisney A magical world of fantasy for the familyAir Asia Now everyone can afford to flyApple Transforming how people use technology

Amazon The largest range of reasonably priced books availableGoogle Making the world’s information accessible

Spiritual materialism

The Earth – the mission of the firm

New technologies

New ideas and knowledge

Ego, and self concept

Spirituality and values

Social and peer acceptance

Fuse

d co

ncep

t of v

alue

and

sp

iritu

alism

An exciting low cost airline to fly

on

Young & invigorating image

Baggage

No baggage transfers No connection with

other airline baggage services

Baggage surcharge Auto-check with no

baggage

Internet Bookings

Limited use of travel agents

Fast Aircraft turn-around times

Not burdened by traditional air and ground

crew procedures No connection with other

airlines

Standardized aircraft to cut down on

maintenance costs

Extra means of revenue

Paid snacks & meals Seating

Blankets Computerized ticketing

methods Related businesses -

hotels

General savings on overheads

Low landing charges and terminal fees

Headquarters located at airport terminal

Young good looking air & ground crews Modern and trendy

aircraft interiors Advertising image

How Air Asia’s sub-strategies contribute to the overall general strategy

Product/ Strategy Attributes

Features Benefits Signal Attributes

Channels

General Impression

Spiritual

impression

Tactile and sensory

impression

Impact

Odour profile

Substantively

Ingredients (according to

theme)

Tangible Benefits

Efficacy

Efficacy according to

theme

Pleasant & lasting

fragrance

Intangible Benefits

Romance

Health & Well-Being

Caring

Security

Lifestyle

Association

Concern

Strength

Performance

Variant

Indicator of Use

Life Status

Freshness

Association

Local

International

Consumer Demographics

Mainstream or

Specialised

Form of Promotion &

Association apt to product

theme

Development of Product Attributes

Market Segment

Defined by Income

Defined by age demographics

Defined by family demographics

Defined by leisure activities

Defined by interests

Defined by aspirations

Defined by social background

Market Segmentation Definitions

Buyer Groups A

B C

D

Product Types

1 2 3 4 5

E

Specific Social, economic, technology

& regulatory influences upon each

segment

This influences the specific set of complementary

products & substitutes, customers, suppliers &

Barriers to entry.

The Competitive

Field

The competitive field broken into segments.

Child

ren

Teen

s

20s

Som

ethi

ng

30s

Som

ethi

ng

40s

Som

ethi

ng

50s

Plu

s

High Fragrance

2 in One

High Protein

Medicated

A simple segment matrix for hair shampooA simple segment matrix for hair shampoo based on product type and user age group. This matrix identifies existing segments, where competitors, product attributes, price points and strategies can be identified. Through going through this exercise repeatedly using different segment variables, relationships between segment variables can be found and a meaningful picture of each potential segment can be developed. The matrixes will also show segments that are untouched by competition and potential buyers. The key questions that should be asked about each segment are;

1. What are the differences between the winners and losers in each category?

2. What strategies are they employing? i.e., a general field strategy or a focus upon the segment? Price? Promotion? Channels? etc.

3. What resources do the firms need to undertake the strategies they are using?

4. What competencies do firms need to successfully implement their strategy? and

5. What networks are needed to use channels effectively?

Ways of Defining Segmentation

Location (country, state, province)Type of HinterlandType of economic activitiesWeather zonesStage of developmentUrban/ruralSocio-economic demographicsEthnic concentrations

Physical sizePrice levelFeaturesAttributesTechnology of productDesignInputs usedPerformanceBranded verses unbranded

ConsumerDemographicsAge, Sex, Income levels, etc.PsychographicsLifestyleLanguageDecision makers

IndustrialBuyer industryBuyers strategyTechnological sophisticationOEM verses userDecision makersPurchasing processFinancial strengthSizeOrder patterns

Direct verses distributorsWholesaleRetailBrokersTypes of distributorsInternet

Sabah is on the list of World “Exotic” locations

There is Mystic

There is cultural diversity

There is history and heritage

There is nature and serenity

Sabah is a place of peace, health and harmony

An example of a product theme

what we have to offer the world

Consider the channels of distribution

The New Product Development

Process

How will the cluster assist?

Siripatana A., Haslam N., Wansakhun W., Wanyeelae & Hunter 2011

Top-down approach versus bottom-up approach?

Research Approach with the Community

Sustainability Plan

Strategic Business Analysis

Resources, networks, capabilities, competitive

environment, etc.

Business Goals

Family Values

The Vision Aspiration

Family Goals

Self Assessment (Self-efficacy)

Decision Making Skills

Knowledge Competencies

Personal Goals

Business Competencies

Knowledge

Production & Operations

Marketing

Personnel

Financial

Risk Management

Horizontal and

vertical expansion

Aspirations

Self view

Income needs

Time Horizon

View of retirement

Opportunity cost of doing

other activities

Passion

Family Considerations

Generational

evolution

Grooming successors

Family aspirations

Lifestyle

Attachment

Asset Fulfillment

Value

Type

Needs

Wants

Liquidity needs

Alternatives

Future (Retirement)

Time horizon

Investment

options

Risk management

Tax planning

Opportunity cost of doing

other activities

Exit barriers

The Individual & Family Family history, Current family

livelihood, Current Family Status.

Motivational Origins

A hierarchy of family, personal and business aspirations (Adapted from Hunter 2009, P. 697).

Any implementation plan must take account of what the stakeholders

actually want.

The supply chain

Food Producers Retailers

Underlying costs

Finance Houses

Technology

Research

Skills/capabilities

Input New Ideas

Inputs

Logistic science

Retail practices

Lifestyle & values

Culture (the way of doing things)

Changing demands

New products

Sustainability Ethics

Excitement

Supply Push

Demand Pull

Consider all environmental factors in implementation

Ambition, sense of mission, attitudes, beliefs, values, available (and potential resources), self efficacy, networks, skills, competencies, and capabilities, etc.

Vision Platform

Micro-enterprise

Street Stalls

Corner Shops

Micro-entrepreneurs

Lifestyle Businesses

Independent specialty Retail SME Level

Large manufacturing

Independent Retail Chains

Large Business

Specialty Wholesaling

Automobile Manufacturers

Airlines

Universities

Modern Extensive Farming Enterprises

Large Pharmaceutical Companies

Banks

Mega Business

Mall Type Shopping Centres

Finally business scale must be considered

Success or failure of any SMEs will depend upon achieving all below

Ideas Opportunities Strategies Opportunity Performance match Match

Spots

Evaluates &

Elaborates

Selects

Implements & Modifies

Perception & Creativity

Innovation Strategic Thinking

Venture Operations

Capabilities Governing Competitive Scope

Competencies Entrepreneurial, Opportunity

identification, Network, Conceptual, Strategic, Commitment

Resources Networks

Uniqueness / Differentiation

Management Capability

Competitive Advantage Costs: To customers, to operate Knowledge: Competitive environment Relationships: Customers, suppliers, financiers, (relative power) Structure: Organizational ability Technology: strength