CONCEPT PAPER ON

APPLIED ECONOMICS

Submitted by:
Deia U. Sonido

Submitted to:
Mr. Arden Aleste
 Concept Paper in Applied Economics
I. Introduction
 In Economics, industry is a group of companies that are related based
on their primary business activities.
 In an industry, it’s a must that there should be thorough research in able
to have certain analysis for analytical predictions. One of those analysis
that must be conducted is the environmental analysis, for it identify all
the external and internal elements, which can affect the organization's
performance which is very crucial in an industry.
 By having an analysis, business opportunities might as well can be
identified through less efforts.

II. Content
A. Industry and Environmental Analysis Business Opportunities Identification
 Business leaders can control aspects of the internal environment that
can positively or negatively affect a company's operating and financial
results. However, the greatest challenges to business success may be
a consequence of the external environment over which company
leaders have little, if any, control. To address these challenges,
business leaders often conduct an environmental analysis and develop
policies and processes that adapt company operations and products to
this environment;
 Environmental analysis is a strategic tool. It is a process to identify all
the external and internal elements, which can affect the organization’s
performance. The analysis entails assessing the level of threat or
opportunity the factors might present.
 In general sense, the term opportunity implies a good chance or a
favorable situation to do something offered by circumstances. In the
same vein, business opportunity means a good or favorable change
available to run a specific business in a given environment at a given
point of time.
  A.1 Principles, Tools, Techniques
a. Competition
 Principles of Competition - Competition is the quest for achieving superior
results, the best results in a specific field, in business, in sports, or in social
activities, the best results compared to others. Competition is the fight for a
limited resource, for a prize or for an award. The fighting around abilities
and skills often takes place as a somehow organized contest with rules
that are agreed upon to be followed in order to accurately measure the
results. Other competitions are based on rivalry — two parties are fighting
to dominate a market, or they are fighting for the first place in a race in
sports, or in science.
 Tools of Competition - Typically companies have relied on SWOT methods
for competitor analysis – strengths, weaknesses, opportunities, and
threats. It’s a great way of pinpointing internal and external factors that
affect your company. You can find threats, work on weaknesses and
promote your strengths, allowing you to get your market share of the
business. Unless you’re the only company doing what you do, or offering a
service, you will never completely resolve threats, which is why you need
to keep an eye on your competition.
 Techniques of Competition
- Create Utility and Usefulness with your Product
- Change Your Pricing
- Emphasize Your Product’s Key Benefit to the Customer
- Deliver True Value of Your Product to Your Customer

b. Customers
 Principles of Customers - Performance in any field is guided by a few core
principles. Say you want to improve at swimming. One way would be to go
for a daily swim at your local lake. Will you improve? Sure. But only until
you reach a certain plateau. A deep understanding of a field’s core
principles sets you up for an autonomous and continuous path of
improvement, in order for your company to attain it one’s should have:
- Speed
- Accuracy
- Transparency
- Accessibility
- Empowerment
 Tools of Customers - More and more organizations are providing
customer service tools to encourage consumers to have greater interaction
with their brand.
- Online communities
- Discussion Forums
- Social Media
- Automatic callback
- Live chat
- Customer satisfaction surveys
 Customers Techniques:
- Engage in active listening.
- Highlight understanding
- Be Courteous
- Call the customer by his name
- . Go the extra mile
- Ask, don’t demand
- Be proactive
- Highlight pros and cons
- Explain
- Use plain language

c. Suppliers
 Principles of Suppliers- The media has been dominated by horror stories of
supply chain failure over the past several weeks. Despite an increasing
number of organizations embracing supplier relationship management
(SRM) in recent years, most implement programs with insufficient skills and
capabilities at their disposal, and a lack of understanding of the capacity or
bandwidth required to assure sustained success.
 Tools to the Suppliers- A good relationship with suppliers is a vital part of
business success. Suppliers not only provide you with the goods and
services you need to run your business - they can also be an important
source of information, advice and trade credit.
 Techniques to the Suppliers- One of the most important aspects of running
a business has to do with how you manage your suppliers. Remember that
as supplier isn’t just “a company that you hired to boss around.” A supplier
 is an entity that you need to establish a successful and beneficial
relationship with in order for both organizations to achieve all of their goals.
As a business owner or manager, there are a few techniques you can use
to more effectively manage your suppliers in the future.

d. Competitors
 Principles of Competitor's
 Battle is the most magnificent competition in which a human being can
indulge. It brings out all that is best; it removes all that is base.” —
 General George S. Patton
 It can be hard to compete with the rest of your field, and daunting to
see the best performing in it — especially if you’re starting at the
bottom. Where do you measure up? How do you go after #1?, There
are a lot of angles to consider when looking at a field of competitors —
 and it begins with you and your mindset which is the most important
part.
 Tools of Competitors
 Getting to know your competitor’s strengths and weaknesses is the
foundation on which to base good strategy. For brands, the growth of
online activity has seen competitor analysis methods, metrics and
tools blossom. There is now no shortage of competitor analysis tools
on the market, and each can offer insights relevant to its own
particular niche and contribute to competitive benchmarking. We’ve
compiled a list of tools that cover a range of areas, from paid adverts
to email marketing. You just need to decide which part of your
competitor’s business you want to spy on.

 A.2 Types of Industries

 Agribusiness- is the business sector encompassing farming and farming-
related commercial activities. The business involves all the steps required
to send an agricultural good to market: production, processing and
distribution.
 Manufacturing- industries are those that engage in the transformation of
goods, materials or substances into new products. The transformational
process can be physical, chemical or mechanical. Manufacturers often
have plants, mills or factories that produce goods for public consumption.
  Retail and service - is the process of selling consumer goods or services to
customers through multiple ... served, the optimal product assortment,
customer service, supporting services and the store's overall market
positioning.
 International trade (exports and imports)- is the exchange of capital,
goods, and services across international borders . Imports and exports are
accounted for in a country's current account in the balance of payments.

 A.3 Identification of Business Opportunities

 Four ways to identify more business opportunities.
▪︎Listen to your potential clients and past leads. When you're targeting
potential customers listen to their needs, wants, challenges and
frustrations with your industry.
▪︎Listen to your customers
▪︎Look at your competitors
▪︎Look at industry trends and insights.

B. Socioeconomic Impact Study

 B.1 Consumer (new products and services)
 A large percentage of the consumers are public servants and business
owners. It was observed that as the socio‐economic status increased,
the proportion of business owners increased as well. Consumers in
lower status groups spend the biggest portion of their income on food
products. As the wages increase, the level of spending on food product
decreases proportionally and the ability to make savings increases. The
highest status consumers always check the price labels of the food
products). More than half of consumers do not believe that producers
write all information and ingredients of the products on the packaging.
Consumers stated that they were open to trying new food products.
Consumers within the top socio‐economic groups are most careful
about food ingredients

 B.2 Suppliers-investors (capital income)

 Capital investments generally are made to increase operational capacity,
capture a larger share of the market, and generate more revenue. The
 company may make a capital investment in the form of an equity stake in
another company's complementary operations for the same purposes.
 B.3 Government (tax, revenues, poverty, alleviation, basic services)
 Measures, like those promoted by Henry George in his economics classic
Progress and Poverty, are those that raise, or are intended to raise, ways
of enabling the poor to create wealth for themselves as a means of ending
poverty forever. In modern times, various economists within the Georgism
movement propose measures like the land value tax to enhance access to
the natural world for all. Poverty occurs in both developing countries and
developed countries. While poverty is much more widespread in
developing countries, both types of countries undertake poverty reduction
measures.
 B.4 Households (standard of living, employment)
 The standard of living thus defined is equal to disposable income for those
who live in single person households and on average higher than
disposable income per person for those who live in households with more
than one member.

 B.5 International trade (exports and imports of goods and services)

 When a person or company purchases a cheaper product or service from
another country, living standards in both nations rise.

III. Recommendation
 The researcher recommended to future researchers that there
should be still further digging behind the given problems and the
whole topics must still be added some supporting evidences.

IV. Conclusion
 All in all, the paper consist topics about the history and explanations
about industry, importance and purpose of environment analysis, the
backround of how to seek and to attain job opportunities;
 Basic backround about economy and other important braches that
has to tackle under it;
 The various studies and factors about th impact of socio-economic
and the variables it affects such as the consumers, investors,
government, etc…
 -
V. References/Bibliographies

https://www.investopedia.com/terms/i/industry.asp
https://pestleanalysis.com/what-is-environmental-analysis/
https://yourbusiness.azcentral.com/environmental-analysis-business-
1017.html
vbu.ac.in/wp-content/uploads/2016/02/SEC_Study-Material-on-life-skill.pdf
https://www.scribd.com/document/370785709/Principles-TooLs-And-
techniques
https://www.investopedia.com ›
https://bizfluent.com/facts-6853113-definition-manufacturing-industry.html
https://en.wikipedia.org/wiki/Retail
https://howtoexportimport.com/Meaning-of-International-trade-9239.aspx
https://velocitymedia.com.au/blog/2013/12/11/four-ways-to-identify-more-
business-opportunities
https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income
https://www.investopedia.com/terms/c/capital-investment.asp
https://en.wikipedia.org/wiki/Poverty_reduction
https://marketbusinessnews.com/financial-glossary/international-trade-
definition-meaning/