Republic of the Philippines

Department of Education
N a t i o n a l Ca pi t a l Re g io n
Sc h o o l s D i v i s i o n O f f ic e o f La s Pi ñ a s Ci t y

NAME: Score:

GRADE & SECTION Teacher:

MODULE IN ABM12
ENTREPRENEURSHIP
Third Quarter

Lesson 3 Opportunity Screening

Week 3
What I Need to Know

At the end of the lesson, you will be able to:

 Define what opportunity screening is
 Identify the 12 R’s of Opportunity Screening
 Realize the importance of opportunity screening in the
choosing the opportunity with the best potential
What I Know
Study the picture below. Identify the source of opportunity used
to set up the business.
A. Trends C. Consumers wants and needs
B. Talents, Hobbies and Skill D. Problems in the environment

1.
2. Fernandez-Ruiz’s Rags2Riches sells accessories created out of
recycled scrap cloth, organic materials, and indigenous fabrics
online and in retail stores. The startup has trained 900 people in
the business – mostly women who reside in one of the Philippines’
biggest dump sites.

3. The store began cutting packaged, bulk items into single pieces and selling them
individually; this practice is colloquially called tingí-tingì in Filipino. An
innovation done by this company is a drug-delivery service to clients and
locations that are open 24/7 because he knew people would be needing
medicines any time of the day.

4. Amazon went from being a store that sold only books to selling all kinds of
products to buy over the Internet, achieving the success that it has today
 5. TeamManila Lifestyle is a graphic design studio from the Philippines, the brainchild
of Jowee Alviar and Raymund Punzalan. Founded in 2001, TM has expanded to a
team of 50 that continuously builds an impressive portfolio of award-winning works
in graphic design and branding.

What’s In
By now you must already be feeling overwhelmed with how vast opportunity seeking
is. This concept has been inculcated to you to see the universe of opportunities an
entrepreneur can derive from many different sources. The key here is in the effective
choosing or careful diligence. Entrepreneurs should start with a big picture. This is the best
way in ensuring that the entrepreneur has scanned the best potential business to venture
into. When the compelling opportunities have been identified, the entrepreneur is now
ready to move to the next crucial step.
What’s New
The rigorous process of Opportunity Screening comes after opportunity seeking.
Because of the many opportunities possible for the entrepreneur, it is important to come up
with a short list of a few very promising opportunities, which could be scrutinized in detail.
It is also therefore, the process of evaluating which market offers the greatest opportunity.
In this process, it is also important to make sure that the chosen option is sustainable.
What is It
Opportunity screening is the process of cautiously selecting the best opportunity.
1. The selection will depend on the entrepreneur’s:
 internal intent - the main objective that the business will accomplish
 external intent - will address the compelling needs of the target market
2. The entrepreneur should apply due diligence and independent judgment
 select opportunities that have potential
 eliminate those that are not within the scope of the entrepreneur’s risk appetite
*Risk appetite refers to the entrepreneur’s tolerance of business risks)
3. Time must be considered by the entrepreneur in screening the opportunities at hand
 should only be devoted to a worthwhile opportunities
 must be able to intelligently say no to low-compelling opportunities especially if it
does not contain any of these elements:
a. has a superior value to customers
b. Solves compelling problem, issue, a need, or a want
c. Is a potential cow
d. Matches with the entrepreneur’s skills, resources, and risk appetite
4. The crafting of a business plan starts only when entrepreneurs already said no to
many opportunities and said yes to one forceful opportunity, to which they will devote
their time and resources.
5. Opportunity Screening Matrix (OSM) aims to assist entrepreneur concretize the
evidence that the chosen opportunity (or opportunities) is well worth pursuing.
The 12 Rs of Opportunity Screening
 Relevance to vision, mission, and objectives of the entrepreneur
The opportunities must be aligned with what you have as your personal vision,
mission, and objectives for the enterprise you want to set up
 Resonance to values
Other than vision, mission and objectives, the opportunity must match the values and
desired virtues that you have or wish to impart
 Reinforcement of Entrepreneurial Interests
How does the opportunity resonate with the entrepreneur’s personal interests, talents,
and skills?
 Revenues – determine the sales potential of the products or services
you want to offer
Is there a big market out there to grab and nurture for growth?
 Responsiveness to customer needs and wants
If the opportunity that you want to pursue addresses the unfulfilled or underserved
needs and wants of customers, then you have a better chance of succeeding
 Reach – opportunities that have good chances of expanding through branches,
distributorships, dealerships, or franchise outlets in order to attain rapid growth are
better opportunities
 Range – opportunity can potentially lead to a wide range of possible product or service
offerings, thus, tapping many market segments of the industry
  Revolutionary Impact – if you think that the opportunity will be he “next big thing”
or a game-changer that will revolutionize the industry, then there is a big potential
for the chosen opportunity
 Returns – products with low costs of production and operations but sold at higher
prices will definitely yield the highest returns on investments. Returns can also be in
tangible; meaning, they come in the form of high profile recognition or image
projection
 Relative Ease of Implementation – easy to implement; will there be a lot of obstacles
to overcome?
 Resources Required – fewer resources is better than those requiring more resources
 Risks – in any entrepreneurial endeavor, there will always be risks, however, some
opportunities carry more risks than others such as those with high technological,
market, financial, and people risks
These 12 criteria can be better managed if qualified and formed into a matrix to help the
entrepreneur concretize the evidence that the chosen opportunity ( or opportunities ) is
well-worth pursuing.

 Rating x Weight = Score

 Note: Criteria numbers 1 to 10 are positive indicators; meaning, the more of them,
the better.
 Criteria number 11 and 12 are negative indicators; meaning, the less of them, the
better.
 Hence, the rating system is reversed for the negative indicators
 Weight will range from 1 to 4 depending on the weight or importance of the criteria
What’s More
1. Do you think Filipino entrepreneurs follow the OSM (Opportunity Screening
Matrix) of Opportunity Screening or do you think they rely on other procedures
or ways?
2. Interview two entrepreneurs who are close to you or in your locality. Ask them if
they look at the OSM (Opportunity Screening Matrix ) before establishing their
business. If not, ask if they have used other procedure (what are they) or none at
all.
What I Have Learned
 Opportunity screening is the process of cautiously selecting the best
opportunity.
 Opportunity Screening Matrix (OSM) helps entrepreneurs concretize the evidence
that the chosen opportunity (or opportunities) is well worth pursuing.
 The 12 R’s of opportunity Screening help the entrepreneur concretize the
evidence that the chosen opportunity ( or opportunities ) is well-worth pursuing.
 The 12 Rs are: Relevance, Resonance, Reinforcement of Entrepreneurial
interests, Revenues, Responsiveness, Reach, Range, Revolutionary Impact,
Returns, Relative Ease of Implementation, Resources Required and Risk.
What I can Do
To further assess the discussion regarding Opportunity Screening, learners would
need to perform the given activity below.
Activity 1. Word Search
There are 12 r’s in the opportunity screening. Identify at least the six of them by encircling
each word found.

H Z R E V E N U E B N V N M
C R I S K D R E T U R N S O
A E D F K E G N A R S R M M
E A Z J Z L Z V Z R Z Z R P
R E S P O N S I V E N E S S
X T B O B L T Y S G F S R Q
T W F R E L E V A N C E R S
Y Q E R E E C N A N O S E R

Additional Activities

12 r’s of Opportunity Screening

Using the given definition, identify some parts of 12 R’s of opportunity
screening. The choices are placed inside the box
1. attainment of rapid growth
2.the exposure of a company or organization has to
factor(s) that will lower its profits or lead it to fail
3.determine the sales potential of the products or
services you want to offer
4. “next big thing” or a game-changer that will
revolutionize the industry
5. potentially lead to a wide range of possible product
or service offerings
6. fewer resources is better than those requiring
more resources
7. easy to implement

Responsiveness Range Reach

Returns Revolutionary impact
Resources required Relative ease of implementation Risk

RelevanceResonance
Reinforcement of Entrepreneurial interestRevenue
Assessment
Modified True or False
Read the following statements below.
A. If the statement is correct, write True on the blank.
B. If the statement is incorrect, change the underlined word/s to make the statement
true.
Write your answers on the blank before the number.
1. The entrepreneur’s selection should depend on his
external intent which is the main objective that the
business will accomplish.
2. OSM stands for Opportunity Seizing Matrix.
3. Risk appetite refers to the entrepreneur’s tolerance to
business risks.
4. Entrepreneurs should say yes to low compelling
opportunities.
5. In screening opportunities, it is important that it
matches with the entrepreneur’s skills, resources and
risk appetite.
6. In screening the opportunities, the more resources
required, the better it is.
7. Opportunities that have good chances of expanding in
order to attain rapid growth are better opportunities.
8. The opportunities must be aligned with what you have
as your personal vision, mission, and objectives for the
enterprise you want to set up.
9. The selection of the best opportunity will also depend on
the entrepreneurs internal intent which will address the
 compelling needs of the target market.
10. The rigorous process of Opportunity Screening
comes after Opportunity Seeking.