12 1st Quarter: Module 7 Industry Analysis, its principles, tools and techniques leading to the identification of business opportunities *Industry Economic Sector Transparent & PNG Clipart Free Download. (n.d.). Retrieved June 14, 2020, from https://yawebdesign.com/explore/industry-clipart-economic-sector/ Perlita B. Ariota Module Writer Department of Education • Republic of the Philippines Competency: Analyze different principles, tools and techniques in creating a business. To the Learners: This module is really intended for you. You will own a business someday so you might as well study the principles, tools and techniques in creating a business. I will discuss to you in details. Then afterwards you may apply these to the different activities so you will become a successful owner of a business someday whether this will be micro, macro, or simple business that may help you in fulfilling your dreams. I have prepared several exercises and activities and do the best you can. I am pretty sure you are now very eager for the new lesson for today. EXPECTATION Smart student like you learn so past and can quickly understand the facts that I am going to share. Read everything including the examples so you may understand them well. I am sure you can answer all the tasks that will be given. By answering the different task, you may apply what you have read and ready to apply in the real world. If it is vague, don’t hesitate to send message to Billy Brits or you may ask your teacher. I have prepared some guide lines on how you can maximize this module. 1. Go to your workplace, free from noise, or anything that may distract you in learning. 2. Avoid eating while answering to keep your module neat and nice to look at. 3. Don’t make any marks or writing on it. Just pretend that this module is your face. 4. Don’t skip any page so you may not miss any activity or exercises. 5. Read carefully all the directions before you answer any activity. 6. Write your name, strand and section on the upper left corner of your answer sheet. PRE-TEST Directions. Read the following statement. Write “T” if you think the statement is correct and F if you think it is not true. 1. Business is a part of the industry. 2. The main objective of a business is to gain friends. 3. The geographic area which your business will cater to, is very important in putting up a business. 4. You don’t need to identify your buyers because anybody can buy your products. 5. You need to know your competitors. 6. You need to consider the internal and external factors of your business. 7. Financial resources such as money and other sources of funds for investments are examples of internal factors. 8. Your employees are also your internal factors. 9. Relationship with suppliers and co-owners is not important in a business. 10. Set goals and always maintain your integrity. LOOKING BACK 1. During our quarantine what were those products or services that did not generate a good income or profit why? What law of economics is related to this? 2. Vice versa which industry or services generated a good income? Justify your answer. INTRODUCTION OF THE LESSON A business is just a small portion of an industry. It is created by person or group of persons. It can be partners, stockholders or maybe a corporation. They have only one objective. What do you think is it? Their main objective is to earn profits. Examples of corporations: SM, PLDT. Ayala. Meralco, Nestle, San Miguel, Smart, Petron and many more. This corporations and other business did not just put up a business just to earn profit right away. They studied the different techniques, tools and principles about their business. The same thing with Aling Petra who owns a sarisari store by the corner. Now I will explain them to you in details. What is it Principles in Creating a Business: 1. Decide what you do (and what you don’t do) Broaden your vision but narrow your focus. Strategy is about making choices 2. Decide who you serve (and focus on them intensely) You can’t be everything to everyone so at least be something to someone. 3. Decide what makes you different (and do it) - “Whatever you do, don’t play it safe. Don’t do things the way they’ve always been done. Do not try to fit the system. If you do what is expected to you, you will never accomplish more than others expect.” - “Think different.” - Apple Computers 4. Manage cash flow (very closely) - “Your bank balance is your truth.” – monitor it; know it; respond to it. - Entrepreneurial happiness = a positive cash flow 5. Manage employees (incentivise them for success) - “Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.” – Andrew Camegie 6. Manage customer expectations (under promise and over deliver) - The surprise - The comeback - The sharing 7. Set goals (and go after them) - “The future you see is the future you get.” – Robert G. Allen 8. Expose yourself (tell the market what you do) 9. Persevere (through the tough times) - “There is a very, very, very, fine lie between success and failure… it is about being constantly hammered and coming back from the hard times and low moments.” – Robbie Brozin, Nandos 10. Always maintain your integrity (in everything you do) *Fisher, G. (2008, March 24). Top 10 Basic Business Principles. Retrieved June 14, 2020, from https://www.slideshare.net/GregFish/top10-basic-business-principles Tools in Evaluating a Business: 1. The geographic area which your business will cater to. Is it limited to local areas? Or will it cover a region, the entire country, or even the international market? 2. The size and the outlook of the industry. What trends can be identified? 3. Description of the product. 4. The buyers have to be identified. Who are your target customers? 5. The regulatory environment. Are there local, national laws that will restrict the business? One needs to identify government regulations specific to the chosen industry. 6. The need to identify the leading businesses in the industry, and to provide company information on the most successful businesses that you will be up against. 7. Factors that will affect the growth of the business. *Dinio, R. P., & Villasis, G. A. (2017). Applied Economics (First). Manila: Rex Bookstore. (pg. 61-62) SWOT *How to Do a SWOT Analysis for Your Small Business (with Examples). (n.d.). Retrieved June 14, 2020, from https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis Strengths Weaknesses - Government incentives - Difficulty of organization - Low capital requirements - Costly set-up - Market acceptance - Possible pollution problems - Experienced leaders - Lack of training of workers Opportunities Threats - Project may replace imported good - Entry of competitors available in the market - Time consuming production processes - Will improve employee welfare - Opposition from residents in the - Improved company reputation community *Dinio, R. P., & Villasis, G. A. (2017). Applied Economics (First). Manila: Rex Bookstore. (pg. 64) *Administrator. (2020, May 4). SWOT Analysis (and TOWS Matrix) EXPLAINED with EXAMPLES: B2U. Retrieved June 14, 2020, from https://www.business-to-you.com/swot-analysis/ Internal Factors 1. Financial resources such as money and sources of funds for investment. 2. Physical resources, such as the company’s location, facilities, machinery and equipment. 3. Human resources consisting employees 4. Access to natural resources, trademarks, patents, and copyrights 5. Current processes, such as employee program, department hierarchies and External Forces 1. Economic trends including local, national and international financial trends, developments in the country’s stock market, reforms in the banking system, growth of the Gross Domestic Product. 2. Market trends, such as new products or technology or evolving buyers’ profiles, including changes in tastes and lifestyle behaviour. 3. National and local laws and statutes as well as political, environmental, and economic regulations. 4. Demographic characteristics of the target market such as the age, the gender, and *Dinio, R. P., & Villasis, G. A. (2017). Applied Economics (First). Manila: Rex Bookstore. (p. 62-63) the culture of the customers. 5. Relationships with suppliers and co-owners. 6. Competitive threats. What’s More (Activity) Activities: Differentiated Instruction. I have prepared 3 activities for you to choose A. Answer each question briefly. 1. Distinguish between a business and an industry. 2. Why is competition an important factor that has to be studied before putting up a business? 3. When you decide on putting up a business, how do you chose the market that you should cater? B. Make a summary of the lesson through a jingle. Write the lyrics and the tone C. Make a comic strip about what you learned from your lesson. What I have learned. I learned a lot in this module. That I am eager to study hard that someday I will put up my own business aside from my work. Big businesses or corporations studied different techniques, tools and principles in a business. In planning a business. I need also to analyze everything, and consider the SWOT so I may know the strength, weakness, opportunities and threats in my business. CHECKING YOUR UNDERSTANDING What I Can Do Directions. Read the following questions carefully and choose the letter of the correct answer. Write your answer in a separate sheet 1. In creating a business, which of the following is not applicable? A. Decide what you do B. Decide who you serve C. Decide right away who will be the celebrity as your endorser D. Decide right away the logo of your business 2. You are inside a subdivision and you want to put up a sari-sari store because you are in a corner lot, which of the following are you going to consider first? A. Your big profit B. The parking lot C. the license before you operate D. The way you carry yourself because you will be with different people 3. Which of the following defines /explains the regulatory environment? A. The software system B. The documents for the franchise C. Your commercial /advertisement for your business. D. Regulations of the gov’t such as the license and other laws pertaining to business. 4. The skilled and knowledgeable staff are examples of A. Threats B. Strength C. Weakness D. Opportunity 5. Mr. Dima Giva rents a space for his sari-sari store in front of a school. Yesterday she noticed that Ms. Lee Gaw was busy preparing for the opening of her new sarisari store. Who is Ms.Leegaw in the life of Mr Dima Giva? A. Threat B. Strength C. Weakness D. Lover 6. Docs Tea was featured in GMA because of the unique taste of their product This explains A. Threats B. Strength C. Weakness D. Opportunity 7. Which of the following does not belong to the group? A. Costly Set-up B. Market Acceptance C. Difficulty of organization D. Lack of training of workers 8. Decide what makes you different means A. Your product is only for certain group of people. B. Your product is one of a kind but the price is not good. C. Your product is one of a kind that every customer is eager to buy it. D. A, B, and C 9. The following situations are weaknesses except A. Your resources are limited. B. Few competitors in your area. C. Your unique selling proposition is vague. D. Your competitors have everything they need. 10. Which of the following are not external factors A. Competitive threats B. Culture of the customer C. Human resources /employees D. New lifestyles and behaviour 11. When you put up a business you must do the following except A. Consider SWOT analysis B. Identify and analyse internal and external C. Maximize strengths and cut off weaknesses D. Invest all your money in your new business so it will be a blast. 12. These are government laws and regulations that apply to the business A. Industry B. Current Trends C. Geographic area D. Regulatory Environment 13. You are looking for a perfect place of your planned business. A place that is perfect wherein your customers will not be looking for your place. This explains A. Industry B. Current Trends C. Geographic Area D. Regulatory Environment 14. Ms. Deena Malunod is planning to put up an online business. Which of the following she must consider first? A. Geographic area C. The needs of the consumers B. The advices of relatives d. A , B , C 15. What is your primary objective in putting up a business? A. To gain profit B. To gain popularity C. Just a threat to my competitor D. A, B, and C ENRICHMENT Give feedback on their different activities you have answered inside this module. Coordinate with your parents and guardians regarding the outputs to check if you fully understand the content of this module. Be able to prepare a portfolio of the question and answer of all the activities contained in this module. Congratulations! You are now ready for your next module.
