APPLIED-ECONOMICS_Q2_LAS.pdf

i
APPLIED ECONOMICS
Second Quarter
LEARNING ACTIVITY SHEET
11

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COPYRIGHT PAGE
Learning Activity Sheet in Applied Economics in Context
Grade 11
Copyright @ 2020
DEPARTMENT OF EDUCATION
Regional Office No. 02 (Cagayan Valley)
Regional Government Center, Carig Sur, Tuguegarao City, 3500
“No copy of this materials shall subsist in any work of the Government of the Philippines.
However, prior approval of the government agency or office wherein the work is created
shall be necessary for exploitation of such work for profit.”
This material has been developed for the implementation of the K to 12 Curriculum through
the Curriculum and Learning Management Division (CLMD). It can be reproduced for
educational purposes and the source must be acknowledged. Derivatives of the work
including creating an edited version, an enhancement of supplementary work are permitted
provided all original works are acknowledged and the copyright is attributed. No work may
be derived from the material for commercial purposes and profit.
Consultants:
Regional Director ESTELA L. CARIŇO, EdD, CESO IV
Assistant Regional Director RHODA T. RAZON, EdD, CESO V
Schools Division Superintendent MADELYN L. MACALLING, PhD, CESO VI
Assist. Schools Division Supt. EDNA P. ABUAN, PhD
DANTE J. MARCELO, PhD, CESO VI
Chief Educ. Supervisor, CLMD OCTAVIO V. CABASAG, PhD
Chief Education Supervisor, CID RODRIGO V. PASCUA, EdD
Development Team
Writers : Rachelle May M. Ambatali, Kaycee Corales, Jeffrey L.
Galanza, Donachelle J. Layugan,
Content Editors : Inocencio T. Balag, , EPS Math, SDO Isabela
Cyril M. Pacunana, Fay P. Managuelod
Richard C. Esguerra, Merilyn Manango, Novalyn Cuaresma
Focal Persons : Inocencio T. Balag, EPS Math, SDO Isabela
Printed by DepEd Regional Office No. 02
Regional Center, Carig Sur, Tuguegarao City

iii
TABLE OF CONTENTS
Competencies Page No.
Analyze different principles, tools, and techniques in creating a business 1
Apply business principle tools and techniques in participating 10
in various types of industries in this locality
Explain the effects of the various socio-economic factors 17
affecting business and industry
Evaluate the viability and the impacts of 23
business on the community

Note: Please Practice Personal Hygiene at all times 1
APPLIED ECONOMICS
Name of Learner: ________________________________Grade Level: ________________
Section:______________________________________ Date:_____________________
Principles, Tools and Techniques in Creating a Business
Background Information for Learners
The different principles, tools, and techniques in creating a business help
entrepreneurs to put up a business. In applying the different analysis as a tool in evaluating a
business opportunity, entrepreneurs will be guided on how to run the business.
Definition of Terms:
Business- an undertaking by a person or a group of persons.
Industry- is the aggregation of the different businesses engaged in the same line of
undertaking.
Business Organizations:
From a legal point of view, there are four ways to form a business:
1. Sole Proprietorship- this is generally the simplest way to set up a business. It is by a
single individual who is singly responsible for running the business and is accountable
for all debts and obligations related to the business.
2. Partnership- is an agreement in which two or more persons combine their resources in
a business to make a profit. A partnership agreement is drawn up and profits are
divided among the partners according to the terms of the agreement. There are two
types of partnership:
a. General Partnership-partners divides responsibility for management and liability.
b. Limited Partnership- other partners are limited and contribute only capital, take no
part in control or management and are liable for debts to a specific extent only.
3. Corporation- is a legal entity that is separate from its owners, the shareholders. No
shareholder is personally liable for the debts, obligations, or acts of the corporation.
Directors and officers can bear liability for their involvement with the corporation.
4. Cooperative- is an entity organized by people with similar needs and is operated for
their mutual benefit.

Micro, Small, Medium and Large Scale Businesses
A business is also classified according to its size based on the worth of the business assets.
a. Micro- total assets are worth below Php 1, 500, 001
b. Small- total assets are worth from Php 1, 500, 001 to Php 15, 000, 000
c. Medium- total assets are worth from Php 15, 000, 001 to Php 60, 000, 000
d. Large- total assets are worth Php 60, 000, 001 and above
The choice of which form of business organization may be a personal preference of the
owner, based on his objectives, his available resources and the scope of operations.
Source:https://www.coursehero.com/doc-asset/bg/2fcc6b9ccf1c75c5515a3b5506df512164c7be0d/splits/v9/split-0-page-1-html-bg.jpg
Tools in Evaluating a Business
The following must be considered in analyzing the industry:
1. Geographic area
2. Size and outlook of the industry
3. Description of the product
4. Identification of buyers (target market)
5. Regulatory environment
6. Knowing the competition
7. Factors that will affect the growth of the business
The SWOT Analysis
A SWOT Analysis is an analytical framework used to determine and define your
Strengths, Weaknesses, Opportunities and Threats (SWOT). The framework can help a
company meet its challenges, identify new markets, and identify the business’s risks and
rewards. It is also a means of identifying the internal and external forces that may affect the
business.

Porter’s Five Forces Analysis
Porter’s Five Forces analysis is a framework or a guide for assessing and evaluating
the competitive strength and position of a certain industry. It was developed by Michael E.
Porter in 1979 and identifies the 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.
Figure 1. Porter’s Five Forces Analysis
Source: https://managementhelp.org/blogs/strategic-planning/2015/12/22/50-tips-and-tools-for-
effective-strategic-thinking/porter-five-forces-model-of-strategy
Table 1. Characteristics of the Five Forces
Source: https://i0.wp.com/www.business-to-you.com/wp-content/uploads/2016/10/Porters-Five-
Forces-Table.jpg

Industry Analysis
Industry Analysis is a market assessment tool used by businesses and analysts to
understand the competitive dynamics of an industry. Industry Analysis includes the
following important factors:
1. Competition-it is very important that you know your competitors are and be ready
for them. Who are the major businesses in the industry?
2. Customers- Who will you sell your product to?
3. Suppliers – every retail business needs suppliers from whom one can source raw
materials, intermediate products, or even the finished goods one intends to resell.
4. Substitutes- are goods that can be used in place of another.
Environmental Analysis
Environmental Analysis is described as the process which examines all the
components, internal or external that influences the performance of the business
organization.
An environmental analysis includes a thorough study of:
1. Economic forces-this involves a look at economic factors such as income of the
people, specifically the target market, economic conditions such as inflation,
recession, prosperity, demand, and supply in the market.
2. Physical environment-this includes a look at the population size, the geography of
the place where the business will be located, land distribution, climate and in
today’s global warming situation, whether or not the area is prone to flood or
earthquake.
3. Political factors- the type of government, the stability and strength of the
government, and good leadership are factors that can be an advantage to a business.
4. Cultures and Lifestyles- it is important to study cultural practices such as fiestas,
celebration of Christmas season, trends in consumption patterns, as means to
identify the goods and services that will fit into these celebrations and spending
behaviour.
5. Competition- the degree of competition in the market and the extent and strength of
competition are all vital in determining the success or failure of a business.
Learning Competency with Code
Analyze different principles, tools, and techniques in creating a business.
ABM_AE12-11a-d-9
Activity 1: Wikarambulan
Instructions: Wikarambulan is a sound like a game. By saying/pronouncing and connecting
the word, reveal the elements and factors of principles, tools and techniques in creating a
business. Write your answer on the blank space provided in the right side of the paper.
1. IS TRE ENGCKS _________________________
2. OP FORTUNE NI TEAS _________________________
3. WEEK NEST CES _________________________
4. THREE EATS _________________________

5. IN DUST TREE _________________________
6. END BY RON MEANT ALL _________________________
7. PIE HAVE FOUR ZEST _________________________
8. ECHO NO MEEK _________________________
9. SOAP FLYER _________________________
10. COST TOO MHER _________________________
Activity 2: Fill in the Blank
Instructions: Read each statement or question below carefully and fill in the blank(s) with the
correct answer.
1. ___________________ is the aggregation of the different businesses engaged in the
same line of undertaking.
2. ___________________ is a type of a partnership which all general partners have
unlimited liability and loan payments will extend to their personal property.
3. ___________________ is a significant tool or a guide for assessing and evaluating the
competitive strength and position of a business organization.
4. ___________________ is a means of identifying the internal and external forces that
may affect the business.
5. ___________________ is a means to evaluate the possible or probable effects of
external forces and conditions on the survival and growth of the business.
6. ___________________ is the one who developed Porter’s Five Forces Competitive
Position Analysis.
7. ___________________ is a means to understand the business’ position relative to
other participants in the industry.
8. ___________________ refers to the type of government, the stability and strength of
the government and good leadership factors than can be an advantage to a business.
9. ___________________ involves a look at income of the people, economic conditions
such as inflation, recession, prosperity, demand, and supply in the market.
10. ___________________ includes a look at the population size, location of the
business, land distribution, climate and global warming situation, whether or not the
area is prone to flood or earthquake.
Activity 3. Multiple Choice –Concept check
Instructions: Read each question carefully. Select the best answer from the choices by
writing the letter of your choice before the number.
____1. In Porter’s five forces model, the ‘threat of new entrants’ relates to:
a. barriers to entry c. switching cost
b. substitutes d. buyer power
____2. In Industry Analysis, what is meant by the term ‘substitute’?
a. a substitute refers to an alternative manufacturing process

b. a substitute is a rival firm offering the same products
c. a substitute is something else consumers would rather spend their money on
d. a substitute is an alternative product or service that performs the same function for
the consumer
_____3. In a SWOT analysis, which two elements are part of the internal environment?
a. strengths and threats
b. strength and opportunities
c. weaknesses and strengths
d. weaknesses and threats
_____4. Most other soft drinks are close competitors of Coca-Cola, but Pepsi would be
classified as _______ competitor.
a. direct c. substitute
b. indirect d. alternative
_____5. In a SWOT analysis, which among of the following is an internal factor?
a. customers c. company culture
b. competitors d. suppliers
_____6. In a SWOT analysis, which among of the following is an external factor?
a. financial resources c. market share
b. political and regulatory environment d. patents and trade secrets
_____7. A business is classified according to its size based on the worth of the business
assets. Which among the choices below if the business total assets are worth below
Php 1,500,001.
a. micro c. medium
b. small d. large
_____8. How will you classify the business if its total assets are worth Php 60,000,001 and
above?
a. micro c. medium
b. small d. large
_____9. The following must be considered in analyzing the industry except:
a. geographic area c. size and outlook of the industry
b. description of the product d. relationship with supplier
_____10. Point out what force acts as a deterrent against new competitors. This force decides
how easy (or not) it is to enter an industry.
a. bargaining power of buyers c. bargaining power of suppliers
b. barriers to entry d. industry rivalry

Activity 4
1.Fill-in Porter’s Five Forces of Competitive Analysis template and indicate the five forces
that need to be evaluated. Then give the characteristics of each force on its sides.
.
2. Use the SWOT Analysis template below and give at least four (4) internal and/or external
factors that are included in each area. Then discuss below how each factor affects the
business organization.
Strengths Weaknesses
Ex. Experienced leader/s Ex. Lack of training of workers
Opportunities Threats
Ex. Improved company reputation Ex. Entry of competitors

Reflection:
What have you learned from the activity?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
References:
Book:
Dinio, Rosemarie P. and Villasis, George A.,Apllied Economics, 2017 edition, Rex Book
Store,Manila,Philippines.
Websites:
https://corporatefinanceinstitute.com/resources/knowledge/strategy/industry-analysis-
methods//11/26/2020
http://www.netmba.com/strategy/swot//11/26/2020
https://www.civilserviceindia.com/subject/Management/notes/industry-
analysis.html/11/26/2020
https://www.investopedia.com/terms/b/business.asp/11/26/2020
https://www.business-to-you.com/porters-five-forces/11/26/2020
https://businessjargons.com/environmental-analysis.html/11/26/2020
Answer Key
Activity 1: Wikarambulan
1. Strengths 6. Environmental
2. Opportunities 7. Five Forces
3. Weaknesses 8. Economic
4. Threats 9. Supplier
5. Industry 10.Customer
Activity 2: Fill in the Blank
1. Industry 6. Michael E. Porter
2. General Partnership 7. Industry Analysis

3. Porter’s five forces Analysis 8. Political Factors
4. SWOT Analysis 9. Economic Forces
5. Environmental Analysis 10. Physical Environment
Activity 3: Multiple choice.
1. D 2. C 3. A 4. C 5. B
6. B 7. A 8. D 9. D 10. B
Activity 4
1.
2. Answers may vary
Prepared by:
KAY CEE D. CORRALES
Name of Writer

APPLIED ECONOMICS
Name of Learner ______________________________ Grade Level: ___________________
Section: _____________________________________ Date: _________________________
Industry and Environmental Analysis: Business Opportunities
Identification
Industry Analysis
Industry analysis is a market assessment tool used by businesses and analysts to
understand the competitive dynamics of an industry. It helps them get a sense of what is
happening in an industry.
Industry analysis, for an entrepreneur or a company, is a method that helps to understand
a company’s position relative to other participants in the industry. It helps them to identify
both the opportunities and threats coming their way and gives them a strong idea of the
present and future scenario of the industry. The key to surviving in this ever-changing
business environment is to understand the differences between yourself and your competitors
in the industry and use it to your full advantage.
A. The SWOT Analysis
SWOT Analysis simply means Strength, Weaknesses, Opportunities and Threats. It is a
business framework that helps to assess a wide variety of factors that may have a profound
impact on a business’s performance. These factors may either be internal to a company or
external. Furthermore, these factors may either be favourable/helpful or
unfavourable/harmful to a company.
A SWOT analysis template that can be used as a guide to identify the strengths,
weaknesses, opportunities, and threats.
SWOT Analysis Template
• Government incentives
• Low capital requirements
• Market acceptance
• Experience leaders
• Difficulty of organization
• Costly set-up
• Possible pollution problems
• Lack of training of workers

• Project may replace imported good
available in the market
• Will improve employee welfare
• Improved company reputation
• Entry of competitors
• Time consuming production process
• Opportunity from residents in the
community
B. Porter’s Five Forces of Competitive Position Analysis
Under the Porter’s theory, he identifies five forces that determine the competitiveness and
attractiveness of a market and which seek to locate the power in a business situation, its
current competitive position, and strength of a position that an organization may enter into.
This five help in identifying if new products or services are potentially profitable. Once the
area where power lies is identified, then areas of strength can be pinpointed and exploited,
solutions to weaknesses may be proposed, and possible mistakes avoided.
Source: https://www.business-to-you.com/porters-five-forces/
Environment Analysis
The other analysis that has to be done is an analysis of the environment in which the
business will operate. This means an evaluation of the possible or probable effects of the
external forces and conditions on the survival and growth of the business.
A. PESTEL Analysis
A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a
framework or tool used to analyze and monitor the macro-environmental factors that may
have a profound impact on an organization’s performance. This tool is especially useful when

starting a new business or entering a foreign market. It is often used in collaboration with
other analytical business tools such as the SWOT analysis and Porter’s Five Forces to give a
clear understanding of a situation and related internal and external factors. PESTEL is an
acronym that stands for Political, Economic, Social, Technological, Environmental and Legal
factors.
Source: https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
Tools in Evaluating a Business
According to a guide developed by North Carolina’s Small Business and Technology
Development Center, the key factors that must be considered in analysing the industry are the
following:
1. The geographic area which your business will cater to.
2. The size and outlook of the industry.
3. Description of the output.
4. The buyers have to be identified.
5. The regulatory environment.
6. The need to identity the leading business in the industry, and to provide company
information on the most successful businesses that you will be up against.
7. Factors that will affect the growth of the business.
Apply business principles, tools, and techniques in participating in various types of industries
in the locality. ABM_AE12-IIa-d-10

Activity: Industry and Environmental Analysis
Directions: Choose one existing business within your municipality and using the templates
below; perform a SWOT Analysis, PESTLE Analysis and Porter’s Five Forces of
Competitive Position Analysis to determine the factors that will affect the growth of the
business.
Name of the Business: _________________________________
Output No. 1: SWOT Analysis

Output No. 2: PESTLE Analysis
P E S T L E
Political
Factors
Economic
Factors
Social
Factors
Technological
Factors
Legal
Factors
Environmental
Factors
Output No. 3: Porter’s Five Forces

Rubric
Activities
Analysis is
detailed and
Differentiated
(17-20 points)
Analysis is
mostly
detailed and
differentiated
(14-16
points)
Analysis is
somewhat
detailed.
(10-13
points)
Analysis
shows
limited detail
and
differentiation
(5-9 points)
Analysis lacks
detail and
provides little
(if any)
differentiation
(0-4 points)
Output No.1
Output No.2
Output No.3
Total Points: __________________
Reflections
1. How do you find the activities?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Using the acronym PESTLE and SWOT, write what you have learned from this activity.
P - ____________________________________________________________________
E - ____________________________________________________________________
S - ____________________________________________________________________
T - ____________________________________________________________________
L - ____________________________________________________________________
E - ____________________________________________________________________
S - ____________________________________________________________________
W - ___________________________________________________________________
O - ____________________________________________________________________
T - ____________________________________________________________________
3. What have you learned from the said activity and how can you apply it in your day to day
basis?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

References:
Dinio, Rosemary P. and Villasis, George A. 2017, Applied Economics, First Edition, Rex
Book Store Inc.
Edilynda G. Enriquez 2016, Organization and Management, First Edition, JFS Publishing
Services, Manila Philippines
Answer Key
Output 1 - Answers may vary
Prepared by:
JEFFREY L. GALANZA
Name of writer

APPLIED ECONOMICS
Name: ________________________________________ Grade Level: ________________
Section: ________________________________________ Date: ______________________
Socio-economic factors affecting business and industry
Socio-economic factors are important characteristics which mostly influence consumers.
These factors are associated with the quality of life and determine the behaviors, tastes,
preferences, attitudes and lifestyles of people living within a society. These economics factors
have a high impact on businesses, whether big or small. This is because the consumers are
often the heart of businesses and tend to affect the growth of all ventures.
These socio – economic factors are:
Income capacity of consumer - It determines how much they can spend on a certain
product. If consumers have access to high incomes from employment and personal business
ventures, then they are more likely to spend on luxurious products. On the other hand low
income earners may not be able afford basic commodities, let alone the luxurious products. It
is thus essential to consider income capacities of the consumers before setting up business.
This factor should affect where the entrepreneur sets up shop and the target clients he
chooses.
Occupation – it is largely related to the income they earn. Low skilled laborers who work in
lowly jobs cannot earn the same as corporate managers. Entrepreneur must carry out research
on the occupations of consumers. This influence the decision to venture into certain
businesses with a specific target at consumers who have good occupations or lowly jobs.
Economics growth – Positive economic growth rates will help the business grow. If a
country experiences high economic growth then the consumes may have better access to
incomes and also the middle class and upper class may grow. This may also attract more
investors and increase employment rates.
Educational Level – It influences the type of occupation a person can get. Consumers with
higher education tend to be skilled and also have better jobs and incomes as compared to
those without education. An entrepreneur may have to work harder to fulfil the demands of
these consumers as compared to when dealing with less educated folks who are less
demanding.
The theory of consumer behaviour describes how consumers make decisions on what to buy.
A consumer aims to maximize the satisfaction he/she derives from the use of goods.
Marginal Utility - is the added satisfaction that a consumer gets from having one more unit
of a good or service

Total Utility – refers to overall or total satisfaction that a consumer experiences by
consuming a certain amount of goods or services.
Formula:
Marginal Utility – Change in total utility/ Change in number of units consumed
Change in total utility is done by subtracting the total utility of the current consumption and
the previous consumption.
Change in number of units that have consumed is done by subtracting the number that is
currently being consumed from a previously consumed amount.
.
Learning Competency with Code:
Explain the effects of various socioeconomic factors affecting business and industry.
ABM_AE12IIe-g-11
Activity 1
Directions/Instructions: Look at the pictures below. What can you say about them?
Describe the similarities and differences and answer the guide questions below.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Guide Questions:
a. What is the socio-economic factor/s affecting the business shown in the pictures?
b. Why do you think this is/are important in the business?
Rubrics for scoring:
Criteria Rating
Content and ideas are organized in clear,
logical manner
1 2 3 4 5
The writing directly addresses the topic and

provides adequate discussion supporting the
main idea
1 2 3 4 5
The writing employs standard grammar
conventions, proper punctuations and word
of choice
1 2 3 4 5
The sentences are well constructed with
varied structure 1 2 3 4 5
Total ( 20 points)
Activity 2
Directions/Instructions: Solve the following problems. Answer the guide questions below.
Note:
1. The total utility received from consuming 10, 11, and 12 tacos are 100,108,115,
respectively. What is the average utility of consuming 11 tacos? What about 12 tacos? What
are the marginal utilities of the 11th
and 12th
tacos?
2. The total utility of consuming 10 bottles of water is 200. The marginal utility of consuming
the 11th
and 12th
bottles of water is 5 and 4 respectively. What are the total utilities of
consuming 11 and 12 bottles of water?
Guide Question:
a. Which is more important, total utility or marginal utility in the decision-making process
and why?
b. Which is better measurement of overall well-being from the consumption of a good or
services? Why?
Answer
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Rubric
Score 5 2 0
Given
Data in the problem
are correct and
complete
Data in the problem
are incorrect and
incomplete
No answer
Formula Complete and correct
formula
Incomplete and
incorrect formula
No answer

Solution and answer Correct solution and
answer
Correct solution but
wrong answer
Incorrect solution but
correct answer
No answer
Activity 3
Directions/Instructions: : Identify the business and industry located in your own community
and determine the possible socioeconomic factor/s affect the business identified.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Rubric
SCORE DESCRIPTION
20
The student has demonstrated a full and
complete understanding about the effect of
the different factors affecting business by
explaining the topic correctly. The response
may, however, contain minor flaws that do
not detract from a demonstration of full
understanding.
10
The student has demonstrated merely an
acquaintance with the topic or provided a
completely incorrect or uninterpretable
response. There are significant omissions
and irregularities that indicate a lack of
comprehension in regard with its content.
0 No answer at all
Reflections:
In this activity I have learned that _______________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
References:
Book:
Applied Economics, R. Dinio et al, Rex

Website:
Https://study.com/academy/lesson
Https://inomics.com/terms/total-utility-1467409
Answer Key
Activity 1: Answer may vary
Activity 2:
1. a. Given:
Quantity consumed - 10, 11, 12 tacos
Total utility – 100, 108 and 115
b. Formula: Average utilities = Total Utility/Number of units
c. Solution:
108/11 = 9.81 - 11th
tacos
115/12 = 9.58 - 12th
tacos
Marginal utilities = Change in total utility/Change in number of units consumed
Solution
Change in total utility Change in number of units consumed
- 108 – 100 = 8 11 - 10 = 1
- 115 – 108 = 7 12 – 11 = 1
- 8/1 = 8 11th
tacos
- 7/1 = 7 12th
tacos
2. a. Given
Quantity consumed – 10th
,11th
and 12th
bottles of water
Total utility – 200 for consuming 10 bottles of water
Marginal utility – consuming 11th
and 12th
bottles of water are 5 and 4 respectively
b. Formula:
Average utilities = Total Utility/Number of units consumed
c.Solution
Total Utility = Total utility on the 10th
bottle + Marginal utility on the 11th
bottle
- 200 + 5 = 205 on the 11th
bottle
Total Utility = Total utility on the 11th
bottle + Marginal utility on the 12th
bottle
- 205 + 4 = 204 on the 12th
bottle

Activity 3: Answers may vary
Socio-economic factors have high impact on business and influence consumers. The different
socio-economics factors are income capacity of consumers, occupation, education level and
economic growth. High income learners are more likely to spend luxurious products
compared with the low-income earners. Occupation of consumers is largely related to the
income they earned. Entrepreneur must carry out a research on the occupation of the
customers. Positive economic growth rates will increase spending and help businesses to
grow. Consumers with higher education tend to skilled and also have better jobs and income
compared to those without education. An entrepreneur must work to fulfill the demand of the
consumers.
DONACHELLE J. LAYUGAN
Name of Writer

APPLIED ECONOMICS
Name of Learner: _________________________ Grade Level: _____________________
Section:________________________________ Date:___________________________
Business Viability and its Impact to the Community
Every time an entrepreneur starts a business, he always hopes that the business will succeed.
In today`s economy, it takes a lot more than hope to get people purchase products or
services. New business-building practices are a must for a business to succeed. A necessary
element is a clear-cut plan for growth. Wherein, many entrepreneurs today get obsessed
with creating the perfect plan. Crafting a plan is necessary, quick, and effective. Analyzing
business viability is an important factor to be considered on the part of an Entrepreneur, as
well as to the community. A long term business viability helps the community in providing
works such as employment, such as generating wealth to the economy, increasing
production, decreasing poverty, creating innovation and social change.
Here are the 5 steps to Develop a Viable Business Plan
1. Define Your Business
Defining your business is the most vital thing that can help your company become
successful. By defining your business, you are better able to achieve your goal and
sustain superior performance.
2. Determine your target audience
Knowing your target audience is an integral part of business plan success. The
more you know about the audience you target, the better able you are to reach and
communicate with them and sell your products and services.
3. Understand the 5 Forces that impact Your Business
Every business is subject to five external forces. These forces include
existing competitors, threat of new competitors, substitute products or services,
bargaining power of its suppliers, and bargaining power of its competitors. By
understanding these five forces, you are able to comprehend the environment that
impacts your business.
4. Create a Competitive Strategy
To demonstrate the viability of your business, your plan needs to
demonstrate how you will sustain a competitive advantage. Porter says there are
three unique strategies a business could choose from to sustain competitive
advantage, namely cost leadership, differentiation and focus.
5. Project your Financial Performance

Your financial performance is a measure of your success. Your business plan
must include a projection of how you expect your company to perform based on
what you discover developing the first four steps of your plan.
From the activity below you will be able to understand the viability of a business and how it
impacts the community as well as the entrepreneur itself.
Evaluate the viability of a business and its impact on the community. ABM_AE12II-e-g-12
Activity 1
Directions: Match the items in Column A with the steps in viability of a business and action
to be done in Column B. Write the letter of your answer in the blanks provided.
____1. Looking on your own capabilities a. Map it
____2. Decide what marketing you will use b. Stay true to who you are
____3. Be honest in where your business is c. Keep your pitch simple
____4. Hand off those tasks that will blow d. Focus on your core product
your course.
____5. Establish goals that can be reviewed e. Utilize marketing tools
in 3 to 6 months
____6. Completing the action and do some f. Implement plan of action
extra mileage.
____7. You can message about your product g. Exercise the plan
to a prospect in 30

Activity 2
Directions: Search the word on the puzzle below, and complete the following sentence below.
WORD HUNT
B O B S H K M O K E M L B M K O
U P S F T L U R L L A T U I P P
S U T C H K T S M B R L Q P A S
I U U B N O L F F A K K O R D B
N A K T A Z C D F T E R S O S E
E N S E R T B A C I T L E D V N
S H B G E N V E A U H S K U U T
S B N L S K S R N S U A M C D R
A D J M I F T I H K G F E T H E
O K J K R U T Y A R H C D C L P
S H K P P Y K Q U Y I R L B J R
T R A P R O C E S S L M O A N E
B H R O E N K H U O L A C L M N
Y H U J T T P R O F I T A B L E
C H A G N E F U G T I U I D E U
C O R N E R S T O N E S C B M R

Corner Stones Market
Enterprise Product
Profitable Opportunity
Entrepreneur Process
Business Suitable
_____________________________ and selection are like _________________________ of
___________________________. In a sense, identification and selection of a suitable
business opportunity serves as the trite saying “well begun is half done”. But it is better said
than done. Because, if we ask any intending _______________________________________
what product or project she will select and start as an ________________________, the
obvious answer he/she would give is one that has a good market and is _________________.
But the question is how could one know if we do have a product to sell? Whose profitability
will we determine without selling the _________________? There are also other problems
we must consider. While trying to identify the ______________________ product or project,
the intended entrepreneur passes through a certain __________________________.
ACTIVITY 3: “Create your own business”
Directions. Create your own business and answer the following
1.History of the business
(Example: Founder of the business,when does it started)
2.Nature of the business
(Example: What Industry does it belong,how did you come up to that kind of business)
3.The strengths and weaknesses of the business
(Examle: Your edges against your competitor,possible treat to your business)
4.Future plans of the business
(Example: Indicate your mission,vision,core values)
5.Survival strategy of the business
(Example: Tactics and strategy to be considered)
6. Benefits of consumer on their business
(Example: What are those factors that will benefits your customers)
Answers Here:

1. _____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________
2. _____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________
3. _____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_________.
4. _____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_________________.
5. _____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________.
6. ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________.
Rubric For Scoring
Insufficient
5 points
Developing
10 points
Proficient
15 points
Above Average
20 points
Quality of
writing
Answer was
written in an
extraordinary
style
Piece was
written in an
interesting
style and
Piece had
little style
◆ Gives
some
Piece had
no style
◆ Gives no
New

◆ Very
informative
and well
organized
◆ Somewhat
informative
and well
organized
new
information
but poorly
organized
information
n and
very
poorly
organized
Grammar
, Usage &
Mechanics
Virtually no
spelling,
grammatical
errors
Few spelling
and
punctuations
errors, minor
grammatical
errors
A number of
spelling,
punctuation
or
grammatical
errors
So many
spelling,
punctuation and
grammatical
errors
that it
interferes
with
Activity 4
1. Connecting your answer on Activity 3, draw your propose business at the
center and indicate its impact on the community, government, and economy.
You may use left side on its good impact and right side as bad impact
Good impact Bad Impact
1. Community
2. Government
3. Economy

2. After indicating the good and bad impact of your business on the community, government
and even on the economy. Give possible solutions that can help your business in attaining its
goals.
_____________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________.
_____________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
____________________________________________________.
Rubric
CRITERIA
(4) (3) (2) (1)
SCORE
Neatness Answers is
neat and
clear and can
easily
understand
Answer is neat
and clear but
some has errors
Answer
presented is
not to clear
and neat
Answer
appears to
difficult to
understand
Content Content is
detailed and
clear
Content is clear Content is a
little difficult
to understand
but includes
some critical
components
Content is not
connected on
the subject
matter
Grammar
spelling and
explanation
Correct use
of words and
explained
well
Few
grammatical
errors but
explained well
Few spelling
errors and
grammatical
errors
Not
explained
well
So many
spelling and
grammatical
errors
Not explained
well
Reflections:
Directions: Accomplish this part honestly.
I understand the lesson and learned that
____________

________________________________________________________________________
________________________________________________________________________
I enjoyed most on
________________________
__________________________________________________________________
________________________________________________________________________
I need to understand more on
______________________________
________________________________________________________________________
_____________________________________________________________
References:
Book:
Applied Economics for Senior High School (Dennis J. Saluba)
C & E Publishing Corporation
WWW.google.com.ph
Answer Key:
ACTIVITY 1
1.d
2.e
3.b
4.a
5.g
6.f
7.c
Word Search
B O B S H K M O K E M L B M K O
U P S F T L U R L L A T U I P P
S U T C H K T S M B R L Q P A S
I U U B N O L F F A K K O R D B
N A K T A Z C D F T E R S O S E
E N S E R T B A C I T L E D V N
S H B G E N V E A U H S K U U T
S B N L S K S R N S U A M C D R
A D J M I F T I H K G F E T H E
O K J K R U T Y A R H C D C L P
S H K P P Y K Q U Y I R L B J R
T R A P R O C E S S L M O A N E
B H R O E N K H U O L A C L M N
Y H U J T T P R O F I T A B L E

C H A G N E F U G T I U I D E U
C O R N E R S T O N E S C B M R
Corner Stones Market
Enterprise Product
Profitable Opportunity
Entrepreneur Process
Business Suitable
Opportunity and selection are like cornerstones of business. In a sense, identification and
selection of a suitable business opportunity serves as the trite saying “well begun is half
done”. But it is better said done. Because if we ask any intending entrepreneur that product or
project she will select and start as an enterprise, the obvious answer he/she would give is one
that has a good market and is profitable. But the question is how could one know if we do
have a product to sell? Whose profitability will we determine without selling the product?
There are also other problems we must consider. While trying to identify a suitable product or
project, the intended entrepreneur passes through a certain process.
RACHELLE MAY M. AMBATALI
Name of writer

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