Applied Economics

SOCIO ECONOMIC IMPACT ASSESSMENT

In today’s society, a variety of business arises as different changes and trends happens.
Thus, as an ABM student which is in line with business and entrepreneurship, we conducted an
activity where we will open a business within the school area. In preparation of opening our
business, we analyze the environment where our business will be put up and identify the
possible impacts it will create specifically in socio economic and cultural area.

The products that our business will be selling are; coffee jelly, milk tea, corn dog, and
cheese stick. Based on the analysis that we make, we came up with this plan where we consider
the taste and preference of the students since we are selling inside the school. We consider
their likes and think of snacks that are a trend today. We also consider the income (allowance)
of our target consumers thus, sets our products’ price to be affordable and low to attract more
customers. We estimate the allowance of a single student and it is more likely 100 pesos a day.
Since the products that we sell is a trend and affordable they will be under the impression of
purchasing it therefor an increase of potential customer will occur. And another factor is that,
milk tea is expensive if you buy it in the mall and that can also be a factor why students buy in
our stall because the price is low and affordable.

As we open our business it is inevitable to affect other aspect within the community
where we will operate our business. Specifically, it will cause socio economic impacts such as
competition, since there are other businesses aside from us, the target consumer will decrease
as they have other choices of stores where they can purchase their preferred food. Because of
that it can also affects the income of the target consumers since, if there are a lot of businesses
that offers various products there will be a possibility that the income will decrease as well.