APPLIED ENTREPRENEURSHIP

Quarter 3 Week 3-4

LEARNING ACTIVITY SHEET

MARKET NEED ANALYSIS AND OPPORTUNITY SCREENING

INTRODUCTION

This module will allow you to learn independently the knowledge and skills in
recognizing a potential market. It will guide you to identify the market problems to be
solved or the market needs to be met; and let you propose solution/s in terms of product/s
and service/s that will match the need using techniques on seeking, screening, and seizing
opportunities. Also, in this module we are going to identify the market problem and
propose solutions with regards to products and services, to continue discover the ideal
business you are going to offer to your community. Basically, in return to your hard time
of selling your product you can generate profit.

LEARNING COMPETENCIES:

• Recognize a potential market

Analyze the market need
Determine the possible product/s or service/s that will meet the need;`
Screen the proposed solution/s based on viability, profitability, and customer
requirements;
• Select the best product or service that will meet the market need.
(TLE_ICTAN11/12PC-Ia-1)

At the end of this lesson, the students should be able to:

a. identify market problems and propose potential products or services that will meet
the market needs.
b. identify, screen and proposed solution to meet the problem using swot analysis
and other screening tools and techniques.
c. select the best product or service that will meet the market’s need with a
consideration of generating profit.
d. appreciate the importance of innovation and creativity in the field of
entrepreneurship and its impact to the company’s success and sustainability.

1
MULTIPLE CHOICE
Directions: Read and understand each statement carefully. Choose the letter of the
correct answer. Write the letter that corresponds to your answer on a separate sheet of
paper.

1. Which of the following is one of the Porter’s Five Forces Model?

A. Threat of substitutes
B. Industry Operating Margin
C. Pace of Technological Change
D. Bargaining power of employees

2. Which of the following is associated with low growth or declining markets?

A. Lower competitive rivalry
B. High number of entrants
C. Higher prices and industry profits
D. Price competition and low profitability

3. Which of these would be most likely to result in higher barriers to entry to an

industry?
A. Higher industry profits
B. Much tougher industry regulation
C. The market leader loses market share
D. Government supports for startups in the industry

4. This kind of macroenvironment includes all natural resources and the ecosystem that
defines the habitat of man, animals, plants and minerals.
A. Political
B. Economic
C. Technological
D. Ecological

5. Opportunities are created in different ways. One way to create opportunities is by

________ consumer problems.
A. Identifying
B. Explaining
C. Identifying
D. Solving

6. Successful entrepreneurs are constantly coming up with business ______ and

evaluating them as ______________.
A. ideas, opportunities
B. opportunities, investments
C. investments, strategies
D. strategies, ideas

2
7. Which of the following could be a strength?
A. Weather
B. A new international market
C. A price that is too high
D. The location of a business

8. Which of the following could be a weakness?

A. Special marketing expertise
B. Poor quality of goods and services
C. A developing market such as the Internet
D. Competitors with access to better channels of distribution

9. Which of the following could be an opportunity?

A. Damaged reputation
B. A new competitor in your home market
C. Having quality processes and procedures
D. Moving into new market segments that offer improved profits.

10. Which of the following tools analyzes the internal areas of an organization to indicate
where they are performing well or where they are weak and need to improve at the same
time examines external areas that could be used to improve performance or profitability
in the future?
A. SWOT Analysis
B. PESTEL Analysis
C. Industry Analysis
D. External Environment Analysis

11. Which of the following is TRUE about preparing a SWOT Analysis?

A. SWOT Analysis is objective
B. It should be specific and avoid grey areas.
C. It should analyze the organization only and ignore the performance of competitors.
D. It should focus on where the organization is today, not where it could be in the
future.

12. Which of the following are businesses that offer slightly different products and services
but target the same group of customers with the goal of satisfying the same need? These
are sometimes also known as substitutes.
A. Suppliers
B. Producers
C. Direct competitors
D. Indirect competitors

13. Which of the following includes the demographic and cultural dimensions such as
values, traditions, family structure, social status, religions, customs, education, and
dynamics of the population at large?
A. Political Environment
B. Ecological Environment
C. Economic Environment
D. Sociocultural Environment

3
14. Which of the following could be a threat?
A. Changes in technology
B. Location of your business
C. Lack of marketing expertise
D. A market vacated by an ineffective competitor.

15. Who usually conducts a SWOT Analysis for a business?

A. Employees
B. Financial Institutions
C. Lawyers
D. Managers

ACTIVITY #1: TRUE or FALSE

Directions: Read and understand each statement carefully. Write the word TRUE if the
statement is correct and FALSE if its states the otherwise.

___________1. Entrepreneur enter a business because of its profitability.

___________2. New business ideas provide business opportunities.

___________3. Entrepreneurial process starts with identification of entrepreneurial

opportunities.

___________4. Not all changes in the external environment provides business

opportunities.

___________5. Discovery and advancement in the use of technology are additional good

source of business opportunities.

___________6. Interest and hobbies of the people are possible good source of

entrepreneurial ideas.

___________7. Industry environment of business is under technological discovery and

advancement sources of opportunities.

___________8. The variables in the physical environment include the economic forces.

___________9. Entrepreneurial heart flame refers to the ability of the entrepreneur to sense

without using the five senses.

___________10. Entrepreneurial mind frame permits the entrepreneur to see things in a

very positive and optimistic light.

4
___________11. The business operates in the industry environment.

___________12. Opening a Halo – halo business during summer seasons.

___________13. Environmental scanning is conducted only when a new business is opened.

___________14. When the barriers to the competitive forces are high, the effect to the growth
of the business is likewise high.

___________15. Entrepreneurs need not observe and evaluate the priorities of the
government.

ACTIVITY #2: IDENTIFYING BUSINESS OPPORTUNITIES

Directions: Let your imagination run wildly and simply list all the possible ideas (product
or service) you can think of. Think of business ideas that you believe are not yet in
existence and evaluate your business ideas by answering the following questions:

Do you think Can we

Can we set up
investors recover the
Would a good this business
would be investment in
number of idea with
willing to this business
YOUR BUSINESS people like current world
study this idea in a
IDEAS this idea? resources and
idea and reasonable
technology?
invest in it? amount of
(Yes or No)
time?
(Yes or No)
(Yes or No) (Yes or No)
1.
2.
3.
4.
5.
6.
7.

Now, list your THREE profitable business ideas below by choosing those that have ALL
YES answers on the last four columns in the above table.

PROFITABLE BUSINESS IDEAS

1.
2.
3.

5
B. Guide Questions:

1. What basic commodities or products (goods/services) are in demand during pandemic?

_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

2. In your own opinion, what do you think are the factors we should consider in generating
business ideas (product/service)? Give at least five (5).

a._____________________________________________________________________________________
b_____________________________________________________________________________________
c._____________________________________________________________________________________
d._____________________________________________________________________________________
e._____________________________________________________________________________________________________

3. Where or how can we find business opportunities?

_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

RUBRICS

Able to discuss on-point, relevant and concrete details, or description from

4-5 points the given question
Able to provide somehow relevant details or with only few details from the
1-3 points given question.

0 No answer

6
 MARKET NEED ANALYSIS AND OPPORTUNITY SCREENING
How to start a business?

Entrepreneurs consistently need to be pushing ahead, yet the main problem in

starting a business is essentially asking yourself what something is to begin about followed
by a progression of inquiries. Regardless of whether you have all the accessible resources
still you are barraged with various considerations on the most proficient method to wander
into any business activities. What's more, a similar way still it is difficult to begin one. In
numerous business opportunities, the most posed inquiry by inquisitive businesspeople
is: "what is the best business to go into?"

The standard answer they regularly get is: it depends on what you have" which is then
clarified in detail as far as the numerous inward and outside factors on which it depends.

I. Physical Environment

According to Aduana, (2016, 86) Physical or the natural environment is composed of the
natural elements. It is partitioned into climate, physical resources, and wildlife. The three
natural elements of the physical environment have significant critical commitments and
impacts of business undertaking. Prospective entrepreneurs ought to fundamentally
assess them before starting their organizations.

a. Climate – the climatic condition in a specific area where the business will be set up
must be assessed.

b. Physical resources - the availability or lack of raw materials will determine the cost
of the products. The availability of raw materials to be utilized for the business is
sufficient for long-term operation.

c. Wildlife- It incorporates the general synthesis of the ecological system.

Entrepreneurs must add to the conservation of the biological framework and set
up corporate social responsibility.

II. Social Environment

Wheelen & Hunger (as cited in Aduana, 2016,86), the changes in the physical environment
have an impact on the societal environment first in terms of resource availability and
costs. It is seen that all progressions that occur in the various layers of the environment
encompassing the endeavor straightforwardly influence the business operations.

Morato (2016, 14) enumerated the following social forces which significantly impact the
business venture:

a. Sociocultural Environment - it includes the demographic and cultural

dimensions such as values, traditions, family structure, social status, religions,
customs, education, and dynamics of the population at large.

7
 b. Economic Environment – it is driven by supply and demand forces.
Basically, it brought about by changes in the Philippine economy wherein it is a
similar factor that drives remote foreign exchange rates to fluctuate with other
market forces.

c. Political Environment - Aduana (2016, 87) underscored political force such

as political parties, political systems, and other related political groups generously impact
the political soundness of a nation. Political forces include trade regulations, taxation,
government stability, unemployment, worker’s benefits, and election practices.

d. Ecological Environment – It includes resources and the ecosystem that

defines the habitat of a man, animals, plants, and minerals.

e. Technological Environment- It refers to the trends and development in

information technology, scientific discoveries, and technological advancement. It
includes the use of the internet, social media, and E- commerce.

f. Legal environment- According to Aduana (2016, 93) emphasized that

legitimate powers are components associated with enactment and understanding of
laws and ordinances influencing the business.

NATURE OF ENVIRONMENTAL SCANNING

Environmental scanning’s main task is to determine the trends and development of

various forces existing in the business condition. It is a process of gathering data, basic
assessment of events, exercises and activities, utilization of pertinent information related
to different environmental forces. Different layers of the external environment or macro-
environment (e.g. physical, societal, and industry) and all forces comprising each
environment layers are interconnected and interrelated. Moreover, scanning the societal
environment may use an analytical approach to determine the impact on business
exercises.

Aduana (2016, 94-96) explained that societal environment, entrepreneurs.

can use the following analytical approaches such as:

PESTEL ANALYSIS – This is a tabular framework commonly utilized in environmental

scanning tools. PESTEL represents Political, Economic, Sociocultural, Technological,
Ecological, and Legal forces.

8
SWOT ANALYSIS

Business entrepreneur knows everything that happens in the business. As the business
grows and the business structure becomes more complex, the entrepreneur tends to know
only the events that have major implications in the business. Successful entrepreneurs
consistently give 100% of their endeavors to all that they do. If you realize you are giving
your best exertion, you'll never have any purpose behind second thoughts. Concentrate
on things you can control; remain concentrated on your endeavors, and let the outcomes
be what they will be.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. This is

a tool to dissect environmental factors. These are things inside to the organization things
that you have some command over and can change.

✓ Strength refers to the strong attributes or capabilities of the business that provide
an advantage in exploiting the business opportunity. It also the includes company’s
valuable attributes that give it a competitive advantage. Examples would be a good
reputation, good management, and leadership, qualified and competent labor force,
complete and new facilities, availability of the resources, strong demand for the
products, or low capital requirement.

✓ Weaknesses it refers to attributes that need to be improved or enhanced such as

inaccessibility of required technology, limited access to the channel of distribution,
poor transportation system, poor leadership, incompetent labor force, lack of capital
or inefficient business process and operations.

✓ Opportunities are business circumstances as products or services that must be

maximized given their potential as far as benefit and development. State of the
condition that will permit your business to acquire more income. An examples will
be good governance, good infrastructure, and technological advancement, product
innovation, process innovation

✓ Threats are considered conditions in the environment that will have an adverse
effect on the business activities. It includes increase inflation rate, entry of new
competitors, stiff government regulations, terrorism, war, pandemic situations, a
shift of customers’ preferences. SWOT Analysis is a method of summing up the
present status of an organization and assisting with conceiving an arrangement for
what's to come, one that utilizes the current qualities, reviews existing
shortcomings, misuses openings, and guards against dangers.

9
Here are guideline questions to understand different areas of SWOT analysis
on how to understand business activities.

INDUSTRY ENVIRONMENT
Aduana (2016, 100-103) discussed Six industry forces which include:
1. 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.

2. 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.

3. 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.

10
 4. 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.

a. 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
b. products and ventures.

c. 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.

5. 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.

6. 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.

PORTER’S FIVE FORCES MODEL

Porter’s Five Forces analysis is a framework that helps analyzing the level of
competition within a certain industry. It is especially useful when starting a new business
or when entering a new industry sector. According to this framework, competitiveness
does not only come from competitors. Rather, the state of competition in an industry
depends on five basic forces: threat of new entrants, bargaining power of suppliers,
bargaining power of buyers, threat of substitute products or services, and existing
industry rivalry. The collective strength of these forces determines the profit potential of
an industry and thus its attractiveness. If the five forces are intense (e.g. airline industry),
almost no company in the industry earns attractive returns on investments. If the forces
are mild however (e.g. softdrink industry), there is room for higher returns. Each force will
be elaborated on below with the aid of examples from the airline industry to illustrate the
usage.

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. The five forces of competition
which was popularized Michael Porter, who is well known in competitive strategy
formulation.

11
 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.

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

OPPORTUNITY SCREENING

What are Goods?

Goods refer to tangible products that consumers can observe with their senses.
These are material things needed and wanted by consumers. Examples: Foods, Clothing,
Cleaning materials, Transportations etc.

What is Service?

Services refer to intangible offerings that are abstract\ and cannot be observed with
our senses. (Ilano 2016, 140). A key characteristic of services is that the “act of delivery”
itself is the product and provide services rather than make goods. Examples: Laundry
Shops, tutorial services, hotel accommodations, repair shops, travel agencies, beauty
parlors etc.

12
After determining what goods and services are, you now have in mind possible
opportunities and business proposals that you can take on as an entrepreneur. To make
a product/service successful, you have to be committed to its success personally and
emotionally. Once you have a product or service in mind, you need to ponder with the
following questions before starting.

✓ What are products or services that you like, enjoy, consume, and benefit from?
✓ Is this product or service really exciting for you?
✓ Should you buy it and use it on your own?
✓ Do you see this product or service being sold in the next five to ten years?
✓ Is this a product or service that you want to bring into the market?
Next, analyze the product or service from the point of view of the
customer:
✓ How does the product improve the life or work of your customer?
✓ What kind of customers will you be selling the product to?
✓ Do you like people who are purchasing this product or service?

Say that you hire a marketing expert to guide on the launch of a new
product or service. They will cut right to the chase and ask you these very
objectives, bottom-line questions about the product:
✓ Is the market high enough to make a profit for you?
✓ Is demand high enough so that you can market, distribute, and supply the
✓ commodity at a fair cost?

Dig even deeper into your product or service’s potential success by

defining the answer to the following questions:
✓ What is to be sold, exactly?
✓ Who is your potential customer?
✓ How much is the price to be profitable?
✓ How to market the product? What selling form, or promotion strategies
would you use?
✓ How is the product or service to be manufactured or produced?
✓ How is the product or service going to be distributed to the customer?
✓ How is it going to be serviced, repaired, guaranteed, or replaced?

You haven't done it yet. There are a range of specific questions you
need to know before you make a definitive decision about a new product or
service delivery.
✓ Is product or service in need in today's market?
✓ Is your new product or service better than anything else presently offered?
✓ Is your product cheaper but with quality than anything else that is available?
✓ Do you think you could become the number-one supplier in the market for
this product or service?
✓ The 12 Rs of Opportunity Screening also help you to select the best
✓ product/service needed in the market.

The 12 Rs of Opportunity Screening

1. Relevance to Vision, Mission and Objectives of the Entrepreneur.

Opportunity must be aligned with the vision, mission and objectives of an entrepreneur
to attain the long term goal of the business.
13
2. Resonance to Values
It is essential that the opportunities you choose to pursue matches with your values and
desired virtues.

3. Reinforcement of Entrepreneurial Interests

As a potential entrepreneur, it is best to select an opportunity close to your interests to
develop your skills.

4. Revenues
Revenues depend not only on the quality of the opportunity, but on the future
enterprise’s ability to strategize and develop a saleable product or service.

5. Responsiveness to Customer Needs and Wants

If your choice fits well with unfulfilled customer wishes, then you have a better chance to
succeed.

6. Reach
Opportunities that can be expanded by adding similar products or services, branches or
franchise outlets have good visions for attaining rapid development.

7. Range
The broader the variety of potential product or service offerings, the more attractive is
the opportunity.

8. Revolutionary Impact
The next big thing in the market is likely to be the opportunity. It can be a game changer
that revolutionizes industries and makes old products and services obsolete.

9. Returns
Opportunities with low production or servicing costs but higher prices would most likely
yield higher returns on sales and return on investment.

10. Relative Ease of Implementation

The best opportunities are those that are easy for you to implement, but very difficult for
others.

11. Required Resources

Opportunities requiring fewer resources from an entrepreneur may be more profitable
than those requiring more resources.

12. Risks
Some opportunities are riskier than others because they are untested or have a very
small market base. Sales might be seasonal or cyclical.

14
ACTIVITY #1: MY BUSINESS IDEA
Directions: In our previous activity, you have enlisted possible business ideas you have
in mind. Now, choose at least one business idea that you like to pursue and answer the
table below:

My business idea is:

Which need will my business fulfill?

What good/service will provide?

To whom will I sell?

How will I sell my good/service?

How much will my business depend upon and impact the environment?

What will be the name of my company/business?

RUBRICS

Able to discuss on-point, relevant and concrete details or description from the
4-5 points given question
Able to provide somehow relevant details or with only few details from the
1-3 points given question.
0 No answer

15
ACTIVITY #2: SWOT ANALYSIS!

Directions: In continuation to the previous activity now that you have your own company
with a specific product or service to offer, create your own SWOT Analysis using the format
below. Give at least three (3) details to supply each factor of the SWOT Analysis tool.

NAME OF COMPANY
SWOT ANALYSIS

STRENGTHS WEAKNESSES
• _________________________________ • _________________________________
• _________________________________ • _________________________________
• _________________________________ • _________________________________

OPPORTUNITIES THREATS
• _________________________________ • _________________________________
• _________________________________ • _________________________________
• _________________________________ • _________________________________

Rubrics for Scoring SWOT Analysis:

Source: https://www.chegg.com/homework-help/questions-and-answers/5-1-swot-analysis-researching-
economic-legislative-changes-instructions-using-shapiro-libr-q49623050

16
Activity #3: PORTER’S FIVE FORCES

Directions: Using the given model below, classify the following circumstances experienced
by the different sectors. Draw the model then write your answers below each
corresponding force.

THREAT OF NEW ENTRANTS

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

BARGAINING BARGAINING
POWER OF POWER OF
SUPPLIERS BUYERS

___________________ RIVALRY __________________

___________________ AMONG __________________
___________________ EXISTING __________________
___________________ COMPETITORS __________________
___________________ _________________ __________________
___________________ _________________ __________________
___________________ _________________ __________________
___________________ _________________ __________________
___________________ _________________ __________________
___________________ ___________ __________________
___________________
__________________
___________________
__________________

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
THREAT OF SUBSTITUTE
PRODUCTS

1. Barriers to entry
2. Number of customers

17
 3. Number of substitute products available
4. Number and size of suppliers
5. Number of competitors
6. Economies of Scale
7. Size of each customer order
8. Perceived level of differentiation
9. Uniqueness of each supplier’s product
10. Diversity of competitors
11. Government Policies
12. Price Sensitivity
13. Relative price performance of substitute
14. Focal company’s ability to substitute
15. Industry growth

ADDITIONAL ACTIVITY: BUSINESS PLAN WRITING AND GROUPING

Directions: Ask your subject teacher in entrepreneurship about your grouping for the
business plan writing and development.

MULTIPLE CHOICE
Directions: Read and understand each statement carefully. Choose the letter of the
correct answer. Write the letter that corresponds to your answer on a separate sheet of
paper.

1. The power of supplier becomes stronger when?

A. There are high barriers to entry
B. Customers have many substitutes
C. Many producers share industry supply
D. Only few producers dominate industry supply

2. Porter’s Five Forces Model would be most helpful in a business deciding:

A. How to package a new product
B. Which industries to enter or to leave
C. What price too charge for a product
D. The best method of promotion in a market

18
3. Which of the following might be considered as a substitute product for digital
cameras?
A. Smartphones
B. Social media apps
C. Digital televisions
D. Online news channels

4. Which of the following refers to tangible products that consumers can observe with
their senses. These are material things needed and wanted by consumers.
A. Good
B. Service
C. Consumers
D. Producers

5. Which of the following SWOT elements are internal factors for a business?
A. Strengths and Weaknesses
B. Opportunities and Threats
C. Strengths and Opportunities
D. Weaknesses and Threats

6. Which of the following is false regarding why a SWOT Analysis is used?

A. To counteract threats to a business
B. To build on the strengths of a business
C. To minimize the weaknesses of a business
D. To reduce opportunities available to a business

7. How often should a SWOT Analysis be performed?

A. Every 3-5 years
B. At least once per year
C. Only when the business starts.
D. Only when specific issues need to be addressed.

8. Which of the following refers to financial institutions, banks financial intermediaries

engaged in lending money to the borrower usually for a fee in a form of interest?
A. Competitors
B. Creditors
C. Employees
D. Investors

9. Which of the following is NOT a factor in opportunity screening?

A. Reach
B. Revenues
C. Rivalry
D. Responsiveness to Customer Needs and Wants

10. Which of the following refers to the non-physical, intangible parts of our economy, as
opposed to goods, which we can touch or handle?
A. Goods
B. Products
C. Profit
D. Services

19
11. Which of the following is NOT TRUE about recognizing business opportunities?
A. Government laws guidelines do not restrict business exercises.
B. Entrepreneurs ought to consistently on the know with the technological changes.
C. Entrepreneur’s undertaking must be fit with the climate conditions in their local
area.
D. Government policies and administrations do have a solid impact on business
activities.

12. Which of the following refers to the process of continually acquiring information to
identify and interpret potential trends?
A. Environmental Scanning
B. Industry Analysis
C. Internal Scanning
D. SWOT Analysis

13. Which of the following is usually driven by supply and demand forces brought about
by changes in the Philippine economy wherein it is a similar factor that drives remote
foreign exchange rates to fluctuate with other market forces?
A. Political Environment
B. Ecological Environment
C. Economic Environment
D. Sociocultural Environment

14. Which of the following is true about preparing a SWOT Analysis?

A. A SWOT Analysis is objective
B. It should be specific and avoid grey areas
C. It should analyze the organization only and ignore the performance of
competitors.
D. It should focus on where the organization is today, not where it could be in the
future.

15. A declining market or increased competition is an example of?

A. Opportunities
B. Strengths
C. Threats
D. Weaknesses

20
 Answers may vary.
ACTIVITY #2: IDENTIFYING BUSINESS OPPORTUNITIES
D 15.
A 14. 15. F
14. F
D 13.
13. T
D 12. 12. T
B 11. 11. T
A 10. 10. T
D 9. 9. F
8. F
C 8.
7. F
D 7. 6. T
A 6. 5. T
A 5. 4. F
D 4. 3. F
2. T
C 3.
1. T
D 2.
A 1. ACTIVITY #1: TRUE or FALSE
PRE-TEST MOTIVATION

ACTIVITIES:

ACTIVITY #1: MY BUSINESS IDEA

Answers may vary. Follow rubrics for scoring

ACTIVITY #2: SWOT ANALYSIS

Answers may vary. Follow rubrics for scoring

Activity #3: PORTER’S FIVE FORCES!

(If not being illustrated or drawn, do not record!) C 30.
B 29.
1. Barriers to entry – Threat of New Entrants C 28.
2. Number of customers – Bargaining Power of Buyers
3. Number of substitute products available – Threat of Substitute Products
A 27.
4. Number and size of suppliers – Bargaining power of suppliers A 26.
5. Number of competitors – Rivalry among existing competitors D 25.
6. Economies of Scale - Threat of New Entrants C 24.
7. Size of each customer order - Bargaining Power of Buyers B 23.
8. Perceived level of differentiation – Threat of Substitute Products
9. Uniqueness of each supplier’s product – Bargaining power of suppliers
B 22.
10. Diversity of competitors - Rivalry among existing competitors D 21.
11. Government Policies - Threat of New Entrants A 20.
12. Price Sensitivity - Bargaining Power of Buyers A 19.
13. Relative price performance of substitute - Threat of Substitute Products A 18.
14. Focal company’s ability to substitute - Bargaining power of suppliers
15. Industry growth - Rivalry among existing competitors
C 17.
D 16.
ADDITIONAL ACTIVITY: BUSINESS PLAN WRITING and GROUPING POST-TEST
Contact your subject teacher

21
IX. References
Rosemary P. Dinio, PhD and George A. Villasis. 2017. Applied Economics. Manila: Rex
Book Store, Inc.
Yacas, Joel Y. et.al. 2020. ADM: Entrepreneurship Module 1. Cagayan de Oro City
Division.
Aduana,Nick L. 2016. Entrepreneurship in Philippine Setting for SHS. Quezon
City: C&E publishing Inc.

Beltran, Chatty D. 2020. ADM: Applied Entrereneurship Module 1. Butuan City Division

Divina, Edralin M. 2019. Entrepreneurship. Quezon City: Vibal Group, Inc.

DIWA Senior High School Series. 2019. Entrepreneurship (Second Edition). Makati City:
Diwa Learning Systems Inc.

https://www.chegg.com/homework-help/questions-and-answers/5-1-swot-analysis-
researching-economic-legislative-changes-instructions-using-shapiro-libr-q49623050

Prepared by:Mr. BERTSIL Y. GOMEZ

Mangagoy National High School
Bislig City Division

Checked: GIL L. BANSIG

MT -II / School Head
Bislig City Division

IRENE G. AJOC
EPS- SHS

22