SENIOR

Entrepreneurship HIGH
SCHOOL

Module

Industry Environment 5
Quarter 1
Entrepreneurship
Quarter 1 – Module 5: Industry Environment
First Edition, 2020

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Entrepreneurship
SENIOR
HIGH
SCHOOL

Self-Learning
Module

5
Quarter 1

Industry Environment
Introductory Message

For the facilitator:

Welcome to the Entrepreneurship with Grade 12 Self-Learning Module on

Industry Environment!
This Self-Learning Module was collaboratively designed, developed and
reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.
 For the learner:

Welcome to the Entrepreneurship Self-Learning Module on Industry

Environment.
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an
active learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATION

LEARNING OBJECTIVES: After going through this module, you are expected to:

1. distinguish different forces under industry environment;

2. analyze the forces of competition that affect a particular

industry; and

3. identify the barriers to forces of competition.

PRETEST
DIRECTIONS: Fill in the appropriate words from the options inside the box.
1. it alludes to the entire framework that handles the undertaking of
the nation and has the ward over the significant exercises within the
territory.
2. it incorporates the purchasers of goods and administrations gave
by the business.
3. are the genuine work power of the business who are liable for the
creation of merchandise or conveyance of administrations to the clients.
4. The drawn out impact in the presence of the business relies upon effective
endeavors against serious competitive forces such as , ,
, , and .
5. The business must determine the within its industry
environment.

Customers Government Employees

Rivalry New entrants Suppliers
Substitute Products Buyers Intensity of the
competition

RECAP

As part of the review, identify which among the items does not belong to the
group:

A. Climate Physical resources

Wildlife Government
B. Physical Environment Social Environment
Industry Environment Global Environment
 C. PESTEL Analysis Environmental Scanning Industry Cost Analysis
D. Social Political Cultural Economic Legal Innovation

We have figured out how valuable sources of opportunity such as the

physical environment, social environment can be an incredible assistance to an
organization’s operation, especially it’s capacity to manufacture a solid
establishment and keep up its business systems. In this way, any type of change in
the physical environment such as climate, physical resources, and wildlife have a
tremendous impact on all aspect of the business. The same thing goes with the
societal environment such as social, political, cultural, economic, legal, and
technological forces uncover a positive connection between the assessment of these
interrelated and interconnected forces and momentous working execution of the
business.

The macro-environment is fundamentally comprised of different elements

which influence the firm as well as the whole business of the nation or globally.
These factors are more extensive and out of the organization’s control. Therefore,
social forces, physical environment, industry environment, and both environmental
scanning tools are part of the external environment.

L E S S ON
What can you say about the
picture? How can you relate the
picture in a business perspective?

When starting a business, it is

basic to consider who the opposition
will be and how you can beat them.
There is a wide assortment of
contenders, some of them are normal
information while others might be
astonishing yet they all should be
https://sirdargroup.com/competition-act-dos-donts/

viewed as when chipping away at who

your potential rivals are.

Entrepreneurs can without much of a stretch be influenced if there are

radical changes in the environment. The industry environment is viewed as the
prompt condition of the business where it leads to its different operational
exercises. A careful investigation of the business yields opens doors for the cunning
entrepreneur. Distinguishing the entire structure of the industry gives numerous
productive chances to business entrepreneurs.
 Aduana (2016, 100-103) discussed Six industry forces which include:

• Government – it alludes to the

entire framework that handles
the undertaking of the nation
and has the ward over the
significant exercises within the
territory. The administration
advances pioneering adventures
through its foundation, projects,
and priorities. The highlighted
program of President Rodrigo R.
Duterte Build, Build, Build
https://www.dbm.gov.ph Program that introduces the
“Golden age of infrastructure” in the Philippines that has produced employments
and financial exercises especially in regions outside Metro Manila. It will
modernize our streets and scaffolds, give a proficient and agreeable air, ocean,
rail, and metro framework while making numerous monetary open doors that will
profit Filipinos in the years to come.
• Suppliers – Morato (2016, 16) emphasized that it incorporates providers of
contribution for instance gas,
power, and crude materials.
Providers of machinery and
equipment, suppliers of
manpower and expertise, and
supplies of merchandise assume
a vital job in the creation of
merchandise and enterprises.
Along these lines, an inflexible
procedure of choosing the
https://www.alibaba.com/ provider must be all around
characterized.

Customers – it incorporates
the purchasers of goods and
administrations gave by the
business. Benefits are earned
from each exchange with the
customers. All the more along
 these lines, understanding the market is the best answer to gain clients'
dependability.
https://www.cnbc.com

• Competitors- According
to Zarate (2017, 63)
competitors are rival firms that
offer similar goods and services
as the organization.
Competitors are classified
either direct or indirectly.
Direct competitors produce and
sell comparative items. Like for
instance, the direct competitor
of the iPhone is Samsung since
they have a place with the same
https://www.businessinsider.com products and ventures. Indirect
competitors on the other hand offer substitute products and services. Coca
Cola offers soft drink so their direct competitor is Pepsi Cola, on the other
hand, their indirect competitors are businesses offer other goods such as
natural product juices, filtered water, milkshakes, caffeinated drink, and
sports drink.

• Employees- Are the genuine work power of the business who are
liable for the creation of merchandise or conveyance of administrations to
the clients. They guarantee the quality and amount of items or
administrations to the clients. They are viewed as the backbone of the
business.

• Creditors- It refers to financial institutions, banks financial

intermediaries engaged in lending money to the borrower usually for a fee
in a form of interest. Creditors broaden their help by stretching out credit
to the business. This empowers the business to comprehend distinctive
money related administrations gave by any budgetary organizations.
Thusly, great money related records mean great business pictures,
particularly during budgetary and financial disturbances.

The business must determine the intensity of competition within its industry
environment. The drawn-out impact in the presence of the business relies upon
effective endeavors against serious competitive forces. Aduana (2016, 104)
highlighted the five forces of competition which is being popularized Michael Porter,
who is well known in competitive strategy formulation. Aduana (2016, 106-107)
distinguished and disclosed further all barriers to five forces competing within the
business, such as:
1. Potential new entrants- An organization that is willing and ready to enter a
market given the correct condition. The threat of new entrants alludes to the
danger of new contenders' posture to existing rivals in the industry. In this
manner, a beneficial industry will pull in more contenders hoping to
accomplish more profit. What's more, new rivals can without much of a stretch
go into the business, rival existing firms, and take a piece of the overall
industry. There is a decreased benefit potential as more contenders are in the
business.

There is less danger in this perspective if the accompanying circumstance being

watched:

• Strict implementation on government strategy and policy e.g. capital

requirement
• Difficulty in the procedure of making a product or service accessible for the
consumer or business user who needs it.
• The high cost of production
• The high cost of product differentiation which distinguishes a product or
services form others. This is one approach to separate contenders' items from
the company's item.
2. Buyers – They have solid and amplified dealing power in the business. In any
case, the danger of its dealing force will be less if the accompanying elements
exist:
• The buyer has the potential for backward integration. It is when the company
manage to buy or merge with its suppliers or providers.
• There are few providers in the market
• The product represents a high percentage of the buyer’s cost.

3. Suppliers- The severity of the threat of the suppliers is solid if the following
variables remain valid:
• If the product or service is exclusive and special.
• The cost of changing brands, suppliers, or products is very continuously high.
• Substitutes’ items are not promptly accessible in the market.
• Few suppliers but sales volume are generally high

4. Rivalry among existing firms in the industry is ascribed to the accompanying:

• Diversity of competing industry
• A great number of competing organizations
• Characteristics of product offerings
• Management styles and leadership

5. Substitute products present incredible dangers in the business condition if the

accompanying variables are noticeable.
• Lower cost of a substitute product
• Changing customers buying behavior.
• The innovation of substitute products.
• Switching cost is generally low
 • Product value creation is hardly observable

ACTIVITIES

ACTIVITY 1: PICTURE ANALYSIS! Identify the appropriate industry force that is

represented in the following pictures below.

1. 2. 3.

4. 5.

POSTTEST

DIRECTIONS: Write Right if the statement is correct. Otherwise, write

Wrong if the statement is incorrect.
1. Direct competitors produce and sell comparative items.
2. Creditors broaden their help by stretching out credit to the business.
3. Employers guarantee the quality and amount of items or administrations
to the clients.
4. Customers are the purchasers of goods and administrations gave by the
business.
5. The government alludes to the entire framework that handles the
undertaking of the nation and has the ward over the significant exercises
within the territory.
 R E F E R E N CE S
Divina, Edralin M. 2016. Entrepreneurship. Quezon City:
Vibal Group, Inc.

Morato, Jr. Eduardo A. 2016. Entrepreneurship. Manila City: Philippines:

Rex Book Store Inc

Zarate, Cynthia A. 2017. Principle of Marketing for Senior High School.

Quezon City: C& E publishing, Inc.,
Photos were taken:
https://sirdargroup.com/competition-act-dos-donts/ (6/22/2020)

https://www.dbm.gov.ph/index.php/secretary-s-
corner/speeches/list-of-speeches/260-message-of-secretary-diokno-
at-the-build-build-build-progress-briefing-and-inspection-of-projects
(6/22/2020)

https://www.alibaba.com/product-detail/processed-
rattan_132872479.html (6/22/2020)

https://www.cnbc.com/2019/05/01/how-jollibee-beat-competition-
from-mcdonalds-to-build-a-global-brand.html (6/22/2020)

https://www.businessinsider.com/samsung-galaxy-s20-ultra-apple-
iphone-11-features-specs-camera-2020-2 (6/22/2020)

ACTIVITY 2 Photos were taken:

https://www.google.com/search?q=creditors&rlz=1C1EKKP_enPH816
PH817&sxsrf=ALeKk03Y2A-
fEAMp4zZzp_Q_DlcPxqzXSA:1592815754740&source (6/23/2020)
https://www.google.com/search?q=brand+competitors&rlz=1C1EKKP
_enPH816PH817&sxsrf=ALeKk02aq4zMPdcJ1_Jk3UW3zX5
(6/23/2020)

https://www.google.com/search?q=government+build+build+program
&tbm=isch&ved=2ahUKEwjVwvWriZXqAhVPApQKHSraB8AQ2
(6/23/2020)
https://www.google.com/search?q=employers&rlz=1C1EKKP_enPH81
6PH817&sxsrf=ALeKk00N90ZeQ0_gu1DdRQSA1gdolTU_Gw:1592817
220459&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjVgfjEipXqAh
WIF6YKHcD_AuQQ_AUoAXoECBMQAw&biw=1522&bih=684#imgrc=K
XbTVzlpJg_kRM&imgdii=5Ya3KzB1iPfrLM (6/23/2020)