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Technology and Livelihood Education

Entrepreneurship




Module 2. Environment and Market



Module 2: Environment and Market













EXPLORE Your Understanding




As an entrepreneur you need to be sure the environment is well-matched to the
type of business you intend to put up.

If you want to start a business in your community, you must take into
consideration the consumers needs and wants, the type of environment, your
competitors, and your business idea that relates to your chosen career.

Once you are convinced in venturing your own business, you must
wholeheartedly submit your time, energy, and effort because this can be your lifetime
undertaking, and may also be a source of livelihood for you and your family.

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EXPLORE Your Understanding

Essential Question

- How does one select an entrepreneurial activity to pursue?

Content Standard

- The learner demonstrates understanding of environment and market that
relates with career choice.

Performance Standard

- The learner formulates a business idea based on the analysis of environment
and market

Guide Questions:

1. How does one determine the product to be produced or service to be offered to
the target market in a particular community?

2. How does one select an entrepreneurial activity to pursue?


3. How can one respond effectively to a business?

Pre-assessment

A. 1. Directions: Write S if the statement belongs to Strength analysis, W if the
statement belongs to Weakness, O if the statement belongs to Opportunity, and
T if the statement is considered as Threat to your business idea.

____1. Competition is very stiff.
____2. Guaranteed quality products/ services produced.
____3. Big chances if the demand is greater than supply.
____4. Unaffordable cost of production.
____5. Little know-how in technical skills.
____6. Accessibility of technology
____7. An excellent managerial ability of the entrepreneur.
____8. Inability to produce products/services at a given period of time.
____9. Irritants of people can contribute to the entrepreneurs business idea.
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____10.Government provision favorable to entrepreneurs.

2. Directions: Choose the best answer from the options given. Write your
answer in your notebook.

Mr. Robert Alcovindas is now ready to enter in the world of business
because he believes that using his knowledge, skills and identified PECs are the
keys to become a successful entrepreneur. Do you think he can? Lets find out.

1.If you were Mr. Alcovindas, which of the following demographic indicators
describes the group of people using the same dialect?
a. Culture
b. Language
c. Religion
d. Economic status

2. From the demographic indicators, How would you know if the family falls

below the poverty line?
a. Culture
b. Language
c. Religion
d. Economic status

3.What should you consider in the pricing of your products/services?
a. If the customer can afford to buy your product.
b. If the selling strategies fitted to the product you offer.
c. If the customers look well- off.
d. If your competitors sell the same product.

4.Suppose that your product is perfume. How would you promote this product?
a. Mam/Sir would you like to taste this, its delicious.
b. Mam/Sir would you like to hold and feel this container, its soft and durable.
c. Mam/Sir would you like to smell this perfume, the scent is perfect and
amazing.
d .All of the above can be applied in promoting your perfume.

5. Which of the following needs is the most important to the people?
a. education
b. shelter
c. clothing
d. foods

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Mercury Drug, Mats Sari-Sari Store,
Dragon Hardware,

B. Activity 1. Directions: Map out your locality regarding the position of different
types of businesses, residences, streets, trees, and etc. prepare a demographic
profile of your locality. Brainstorm in your class the prospective business that can
be established in your community suited to your identified skill.




Example of a Location map of one community:



C. Activity 2. Are you familiar with the different businesses found in your
community? Then, let us try this activity.
Directions: On the left side of this activity are the nuts where the types of
businesses are written and on the right side are the bolts where examples of
each type are stated. Fasten the bolt to the right nut by means of a line.

1. a.

Manufact
uring
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Camella Homes, RCBC, PS Bank, Metro
Bank, PhilAm Life Insurance Company
T&T law office, Delgado Clinic, Reyes
Cutters, James Cooper Beauty Parlor.
Shoe factory, Canned goods factories ,
Maynilad, Meralco, Shellane


2. b.



3. c.




4. d.




D. Activity 3. Directions:

Think of something entrepreneurial for manufacturing and servicing type
of business relevant to the trendy needs of people on the given items below and
explain the reason why. Number 1 is done for you. Write M if this entrepreneurial
activity is manufacturing business and S if a Service business in a provided
column of this activity. This activity serves as your guide in selecting an
entrepreneurial activity to be pursued.

Items and defective
items
Entrepreneurial Activity Reasons
1. Scissors Beauty Salon People are very much aware with
their physical appearance.
2. Elders/kids


3. Lumber


4. Metal


5. Computer


6. Fruit /vegetable
seeds and
seedlings

servicing
Merchand
ising
Invest-
ment

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7. Faulty radio, cell
phone, and etc

8. Abaca, shells,
leather

9. Faulty aircon and
refrigerator

10. Power failures/
electrical defects



How do you find the given activities? Are they enjoyable, stimulating,
complicated? Whatever your answer is, in the Firm-Up Your Understanding will ease
your burden, and give a clearer connection from the given activities and more minds
stimulating await you?

FIRM-UP Your Understanding

In generating business idea, you should first identify what type of business is
suited to your business idea. You should analyze or scan the environment, study the
marketing practices of your competitors, analyze the Strength, Weaknesses,
Opportunity, and the Threat in your environment to ensure that the product/service
you are planning to offer will be patronized and within easy to reach by your target
markets/consumers.

Lesson1. Types of Business

This topic will give you ideas on what type of business is fitted to your skill,
knowledge and attitude to meet your business goal.
The following are the common types of businesses that can be found in your
community:
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1. Servicing business. This type of business involves the selling of ones
specific skills and knowledge that renders satisfaction and utility to others
depending on the needs of the prospective customers or target clients. It
will depend mostly on what skills an individual has acquired from formal or
non-formal education/training, from friends, lifestyle, hobby, and his own
entrepreneurial characteristics that formulate business idea.
Examples are: Repair shop, Barber shop, Beauty shop, Legal service,
Medical service, janitorial service, security service, nursing service,
accounting service, and other similar service businesses.

2. Trading or merchandising business. This is a type of business activity
where an entrepreneur deals with buying and selling of goods. An
entrepreneur buys items and sells them in the same form but with an
additional price from the actual cost of purchase of items. This business
activity involves buying the products in bulk selling at a retail price with
considerable profits. Capital is the essential element of this type of
business. Examples are: Bookstores, Groceries, Shoes Store, Hardware
store, Radio and Electronics Store, Assorted goods store, and others.

3. Manufacturing business. This business activity refers to the creation of
marketable products through buying of available raw materials in the
community and the conversion of these products into different things for
marketing by manual or mechanical labor and processes. Examples are
as follows:
Items to be manufactured Raw Materials Finished Products
Footwear Leather, glue, dyes, canvas,
rubber soles, threads and
other needed materials.
Sandals, closed shoes, stylish
shoes, slippers, and others.
Furniture Lumber, nails, glues, varnish,
paints, screws, knobs, and
Cabinets, chairs, tables, TV
racks, book shelves, shoe
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etc. stands, and others.
Cold cuts Lean meat, sugar, water, salt,
yeast, food coloring, and etc.
Tocino, hotdogs, ham,
longganisa, and etc.
RTWs Textile, threads, buttons,
accessories, and etc.
Skirts, blouses, pants,
brassieres, gowns, and etc.
Metal Metals, iron rod, welding rod,
oil, and etc.
Steel cabinet, pot stand, steel
windows/gate, barbeque grill,
and etc.

4. Investment or Finance business. This is a type of business activity
where the owner puts up capital in the form of money or industrial labor for
the main purpose of future profitable transactions usually involving bigger
capital such as building different types of houses for sale, lending money
to outsiders of the business and collecting the same with interest.
Examples are: banks, insurance companies, lending institutions, housing
and land developers.
Activity 1. Directions: Classify the given types of business by writing S for Servicing, M
for Manufacturing, T for Trading, I for Investment business in a cord of a
balloon









Lesson 2. Environmental Scanning



Beauty
Shop
SM
Superma
rket
Meralco
Housing
Loan
Harware
Furniture
Making
National
Book
store
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The reason why there is a need to conduct environmental scanning is
for you to identity the needs and wants of people, the comings and goings in the
environment, the niches for your business mission, and to give attention to trends and
issues. This may also serve as an evaluation of the type of entrepreneurial activity is
appropriate in the community.
Environmental Scanning is defined as a process of gathering,
analyzing, and dispensing information for tactical or strategic purposes. The
environmental scanning process entails obtaining both factual and subjective
information on the business environments in which a company is operating.
Environment in the community can be viewed according to its technological,
political, economic, and social aspects. For example, in the past, people in the
community used personal computers but transmission of development in technology
was uninterrupted because people are not satisfied with what they have today. They
still look for changes in their life and their environment.
As a future entrepreneur you must be well versed in this kind of advancement
and progression of your environment particularly in technology so as to secure the
success of your future business. Always think of something new, reinvent the existing
one, and create your new version of goods/services. For instance, your own hair
straightening is herbal, while in the other salons it is made of chemicals. This kind of
change will affect the principle of the existing business and industries so that they can
easily adapt to changes in producing products/services to be able meet the needs
and wants of people in the community.
The following figures show how an environmental scanning in the community is
done with regards to data needed for your business idea.

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The Competitors

Undeniably, competition causes difficulties on the part of a potential business
starter and risks on the part of an already existing related business. On the other hand,
information from the competitors has a great impact on how to manage ones business
idea. They can help you to habitually improve the quality of your product/service, easily
identify consumers, improve sales forecasting, seek new ideas, and apply technology.

What types of information do you need regarding from your competitors? Here
are some pointers:

1. Identify your competitors. Keep your eyes open for any business that seems to
be offering the same product/service.
2. Know their pricing policies. Is their price reasonable for the quality of
products/services or does your competitor offer customers benefits that
customers recognize and value their offers?
The Market
The Industries
The Human Resources
The availability of
raw materials
The power usage
Business
Idea
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3. Identify their customer. You must consider the types of customers who can
manage to pay for your products/services.
4. What do they offer? Investigate what makes their product different from yours.
Do they also offer good customer-selling personnel relationship?
5. Ways of promoting their products/services. What selling strategies do your
competitors employ? Do they spend money for promotion of their
products/services?

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis.
SWOT Analysis is a tool that can correct, identify and protect against natural
calamities and unexpected interruptions that may happen in the business. It can also
be a big help to the would-be entrepreneur in spotting new opportunities and building
their strengths.
Matching and converting SWOT is essential to use when obtaining viable ideas
of what is the best type of business you want to generate. You can also convert
weaknesses and threats into opportunities or strengths by identifying the pros and cons
of your business idea. Then, if some pros and cons cannot be matched and converted,
you should avoid them and do not include them to your course of action needed in
generating business idea.

The following are guide indicators for you to differentiate the pros and cons of the
SWOT analysis. This can also be used as an instrument for environmental scanning.
Pros Cons
Strengths Opportunities Weaknesses Threats
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1. At least no required
capital.
2. Materials are
economical
3. Rich in natural
resources for your
products.
4. Accessibility of
technology
5. Guaranteed
excellent quality of
product/ service
6. An excellent
managerial ability of
an entrepreneur




1. Irritants to people
can contribute to the
entrepreneurs
business idea like:
flood, traffic,
increment weather,
unexpected spread of
diseases.
2. 2. Big chances if the
demand is greater
than supply
3. 3. Less capital more
profits earns.
4. 4. Government
provision favorable to
entrepreneurs.

1.
1. Scarcity of raw
materials in the
commercial
places where the
business will
situate.
2. Unaffordable
cost of production
3. Substandard
quality of raw
materials needed
for the production.
4. Changeable
decision type of
management
5.Little know-how
in technical skills

2.

1. Unable to
produce
products/service
at a given period
of time.
2. Have difficulties
in transporting of
products/ services
3. Competition is
very stiff.




Demography

People in the Philippines are composed of different ethnic groups with different
cultures, languages spoken, religions, beliefs, and others. But still, we are called
Filipinos because of the colonial era of the Spaniards, and Mestizos
Malay was the term that the Americans used to denote the Philippine population
regardless of whether or not they are of pure or of mixed Malay descent- Filipino-
Chinese and Filipino-Spanish.
Based on research, majority of Filipinos are Astronesians or from Malay/Malayo-
Polynesian ethnic group. However, the largest groups are found in the Visayas,
Tagalog region, Ilocos, Bicol, Mindanao, and Pampanga region. Filipinos belong to a
mixture of races from Spanish, Chinese, Americans, Europeans and other foreigners
who married people in our country.
The diagram below shows the Demographic composition of our country.

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Activity 1
From a research study assigned to each group about the demographic profile of
your community, what does the information reveal?
Directions: Make a chart showing the characteristics of your environment/community
and make an analysis by classifying the pros and cons of your future business location
in your community.


Example:
Philippine
Demography
People
Tagalog,Cebuano, Ilocano, Bisaya/Binisaya,
Hiligaynon , Ilongo, Bicolano, Waray,
Pampangan and Cagayan, Moro, Igorot.
Culture
Religion
Roman Catholic, Islam, Protestant, Iglesia Ni
Cristo, Phil. Independent Church, Mormon,
Jewish, Buddhism, Hiduism, and etc.
Language
Economic
Status
Penafrancia festival in Bicol, Penagbenga
Festival in Bagiuo, Santacruzan, Station of the
Cross, Fertililty dance,
Tagalog, English, and 8 dialects- Tagalog,
Cebuano, Ilocano, Hiligaynon, Illongo, Bicol,
Waray, Pampango, and Pangasinan
Low, Average, and High level of income
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Pros and Cons of Findings
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

You are now on the right track after learning to identify your competitors and,
doing a SWOT analysis. Before moving to next lesson, you should first choose a
business which you would like to engage in and conduct a research study of the
environment and the monthly income of the families in your community. Interview at
least two successful entrepreneurs in your field of specialization that turns into business
venture. Then, you may now proceed to the next level. Deepen Your Understanding.



0
1
2
3
4
5
6
Residences People Businesses Religion
Series 1
Series 2
Series 3
Series 4
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DEEPEN Your Understanding
People keep on searching for new things, new trends, and new issues. For these
reasons, an entrepreneur hurriedly responds to these needs and wants of people.

As generations come and go, another set of new trends will come to exist. In
order to adapt to the rapid changes in the environment, existing industries need to
improve their products and services. But how can you generate business ideas with
those strong competitions? The following lessons will surely lessen your concerns in
generating business:

Lesson 1. Needs and Wants of People

Everyone has his or her own needs and wants. However, people have different
concepts of needs and wants. Needs in business are important things that every
individual cannot do without in a society. These include:
1. Basic commodities for consumption
2. clothing and other personal belongings,
3. shelter, sanitation and health
4. Education and relaxation
Basic needs are essential to every human individual so he may be able to live
with dignity and pride in the community of people.
Basic needs can obviously help you generate business idea; but how do other
needs guide you to pursue you business vision?
Wants are desires, luxury and extravagance that signify wealth and an expensive
way of living. Wants or desires are considered above all the basic necessities of life.
Some examples are the eagerness or the passion of every individual which are non
basic needs like; fashionable accessories, shoes, clothes; travelling around the world;
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eating in a classy restaurant; watching movies, concerts, plays; having luxurious cars,
wearing expensive jewelries, living in impressive homes, and others.
Needs and Wants of people are the basic indicators of the kind of business that
an entrepreneur may engage into because it can be the measure of ones success in
business. Some good points to consider in the success of your business undertakings
are the kind of people, their needs and wants, lifestyle, culture and tradition and the
group where they belong.
With these needs and wants of people, can you create your own business?
Activity 1. Directions: From your research study concerning your community, can you
identify the needs and wants of people in your community with regard to their age
bracket? The first 2 columns were made for you, all you have to do is to write down
known products from your community in the next two columns.

Age
Bracket
Example Needs Wants
Needs Wants
7-9 years
old
dolls
Barbie
doll

10-12
years old


13-15
years old
accessories kikay

16-18
years old
ICT Video games

19-21
years old
clothes branded clothes

22-25
years old
transportation luxury car

26-30
years old
house elegant

31-35
years old


36-40
years old
relaxation Boracay

Activity 2. Directions: This time information you derived from the data gathered in your
community with regards to the monthly income of family, definitely, you can answer this
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activity. Write down the products found in your community in the next two columns. The first
two columns are made for you.

Income
Status
Example Needs Wants
Monthly Needs Wants
6,000-
10,000
Medical attention Albularyo
11,000-
20,000`
TV Union
21,000-
30,000
food Jollibee food
31,000-
40,000
Shoes SM Department
Store

41,000-
50,000
Hair cut Ricky Reyes
51,000-
60,000
clothes Boutique
61,000-
70,000
Computer Apple
71,000-
100,000
car Honda
100,000-
200,000
Hospital Makati Medical City

Activity 3. Directions: After performing all the activities 1& 2 above, try to answer
the following questions. Write your answer in a piece of paper and discuss
your answers with a friend or member of your family.

1. Why is there a need to know the family income of your future
consumers/target markets?
2. Why is it important to know the needs and wants of your future
consumers/target markets?
3. What did you learn after gathering information and conducting interview?
4. Do you know now what business you want to venture in the near future?
5. Can you formulate your own business idea after conducting interviews
from successful entrepreneurs, from data gathering and from the
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analysis of environment of your community? If your answer is yes, the
next lesson will guide you in formulating your own business idea.

Your Possible Entrepreneurial Activity

Entrepreneurial activity is a business project where an individual is looking
forward to the positive results of his endeavor, and its encouraging outcomes.

More entrepreneurs begin with what they have perceived significantly in the
environment would be their business undertaking. Some entrepreneurs engage in
different entrepreneurial activities for making profit and as a contributing individual to
our economic advancement.

If you are interested to engage in business, you must first try to reflect on the
type of entrepreneurial activities that may possibly fit the type of skill you must acquire.
For example, you are naturally loving, caring, warmhearted to children, and have formal
education in childrens care, health and nutrition. Therefore, nanny is the best type of
childcare business for you. ( writers relate this situation to your specialization or
give your own examples and opinions)





TRANSFER Of Learning

Now that, you have all the information, let us now test your ability to
generate your own business idea.

Culminating Activity 1. Directions: Through SWOT analysis, screen and
examine all the data gathered from your research study. Then turn all the
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negative factors into positive factors so as to make your business go. Write
your findings in a given table below.

For example:

Aling Nena sells native delicacies and you also intend to offer the same
but, you would like to introduce an innovation such as: dial a cake, text a
bibingka; and or by putting additional garnishing; by using promotional
strategies like buy two take one, free taste, eat now pay later, free delivery.

Positive Factors

Negative Factors
Strengths Opportunities Weaknesses Threats












Culminating Activity 2.
Here is the location map of a community with ten thousand population. A new
housing project will be constructed adjacent to Rizal St. The target homeowners are
young couples with two kids.
Tasks: 1. List down as many as you could possible businesses that you may offer to
meet the needs and wants of young couples with two kids.
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2. Determine the most viable business venture to start.



Culminating Activity 3. In this activity you must first answer the following questions
that may lead to the generation of your business. Your answers to this question will be
your materials in formulating your own business ideas. Be able to answer the following
questions?
1. Who are your consumers/target markets?
2. Where do you think is the most ideal location to open your business?
3. What are your instruments in formulating your business idea?
4. Use the result of the research activity in deciding the type of business you
want to put up in the near future.
Rizal Strret
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5. How does research help you select the type of business to put up?
6. When is the right time to seize a business opportunity?
7. How does ones interest and skills help in pursuing a business?
8. To whom/ from what organization can you seek assistance in putting up a
simple business?
9. Is sourcing of capital necessary to start a simple business? Why?

Post-assessment

1. Directions: Write S if the statement belongs a Strength analysis, W if the
statement is a Weakness, O if the statement belongs to Opportunity, and T if the
statement is considered as a Threat to your business.

____1. Competition is very stiff.
____2. Guaranteed quality products/ services produced.
____3. Big chances if the demand is greater than supply.
____4. High cost of production.
____5. Little know-how in technical skills.
____6. Accessibility of technology
____7. Excellent managerial ability of an entrepreneur.
____8. Inability to produce products/services at a given period of time.
____9. Irritants of people can contribute to the entrepreneurs business idea.
____10.Government provision favorable to entrepreneurs.

2. Directions: Choose the best answer from the options given. Write your
answer in your notebook.

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Mr. Robert Alcovindas is now ready to enter in the world of business
because he believes that using his knowledge, skills and identified PECs are the
keys to become a successful entrepreneur. Do you think he can? Lets find out.

1.If you were Mr. Alcovindas, which of the following demographic indicators
describes the group of people using the same dialect?
e. Culture
f. Language
g. Religion
h. Economic status

2. From the demographic indicators, How would you know if the family falls
below the poverty line?
e. Culture
f. Language
g. Religion
h. Economic status

3.What should you consider in the pricing of your products/services?
a. If the customer can afford to buy your product.
b. If the selling strategies fitted to the product you offer.
c. If the customers look well- off.
d. If your competitors sell the same product.

4.Suppose that your product is perfume. How would you promote this product?
a. Mam/Sir would you like to taste this, its delicious.
b. Mam/Sir would you like to hold and feel this container, its soft and durable.
c. Mam/Sir would you like to smell this perfume, the scent is perfect and
amazing.
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d .All of the above can be applied in promoting your perfume.

5. Which of the following needs is the most important to the people?
a. education
b. shelter
c. clothing
d. foods



Did you answer all or most of the questions correctly and confidently? If yes evidently,
you can be a successful entrepreneur in the near future. If not, find time to go over the
activities which you think have not mastered.