Lesson 2:

JOSEPH SCHUMPETER gave much emphasis on the concept of product

innovation, marketing, and production methods.
Entrepreneur-
Originates from the French word “entreprendre” which means to undertake.
*Defined as a person who strongly advocates and correctly practices the concepts
and principles of entrepreneurship in operating and managing the self-owned
business venture.

Entrepreneurship-Is the art of observing correct practices in managing and

operating a self- owned wealth- creating business enterprise by providing goods
and services that are valuable to customers.
SMALL BUSINESS- A business or enterprise that correctly adopts and practices
the principles of entrepreneurship.
ORDINARY SMALL BUSINES-A business managed and operated by an owner
who is not an advocate and does not practice the concepts and principles of
entrepreneurship.

LESSON 3:
Changes in the Environment
-External environment refers to physical, societal, and industry environment where
the business operates.
I.PHYSICAL ENVIRONMENT- First layer of the environment.it is composed of
the natural elements that are inherent in the earth.
Divisions :
1, Climate- Conditions of a particular areas where your business will be established
or evaluated
2.Natural/ Physical resources-Availability of Raw Materials in Major Factor that
can be influence the Sucess.
3. wildlife- Maintaining or preserving the importance of plants and animals , it can
contribute preservations not destruction

The Societal environment- Studies revealed positive relationships between the

evaluations of the societal environment.
Factors
1. Political Forces-Rukes and regulations, Laws and others that business has
Compliance with this part to adjust the operation of the business,,, EX.
Taxes, trade regulations, tariffs,qoutas
2. Economic Forces-It is directly affect the Capability of business to generate
Profitrs. It is cause by Changes or movements of the Philippine economy
ex. Interest rate exchange rate
 inflation rate economic Growth
3. Sociocultural Forces-Social Interactions that can influence people
Culture- refers to integrated characteristics a group of people in a particular
society.
ex. Religion Language
Values Traditions
4. Technological Forces- Refers to the trend and development of information
technology
ex. Internet Social Media
ATM E-Commerce

III. INDUSTRIAL ENVIRONMENT-is the external environment layer where

the trends and changes are easily and immediately felt by the business.
a. Government-Refers to the system or institution that are handles the affairs
of a particular country.
b. Competitors- are the forces existing in the industry environment that
produce sell or render products and services which are similar to those of the
business.
c. Suppliers- refers to individual persons or companies that provide the
required materials, parts or services to the business.
d. Customers- are the buyers of goods or services produced or rendered by the
business.
e. Creditors- refers to banks financial institutions and financial intermediaries
engage in the lending of money to the borrower usually for a fee charge in
form of interest.
f. Employees- are the workers of the business who are highly responsible for
the production of goods or delivery of services to consumer.
Environmental Scanning: Internal Analysis
3 Categories:
1. BUSINESS RESOURCES- are assets or properties owned or
controlled by the business.
Types:

a. Tangible resources- are the assets of the business that have physical
appearance or form. They can be touch or seen.
b. intangible resources- do not have physical appearance or form.

2. Business Culture -It is a collection of values, beliefs, principles, and

expectations learned and shared by the employees, founder, stakeholders and
members of the management.
3. Business structure-Refers to the formal organizational arrangement of the
business in terms of hierarchy of positions, flow of communication, relationship of
functional areas, production and marketing process.
SWOT Analysis:
 STRENGTS- (+) (I) strong attributes of the business that provide great
advantage.
  WEAKNESSES- (-) ( I ) Unskilled workers to handle the new
technological equipment.
 OPPORTUNITIES (+) (E)- form of products or services that must be
exploited.
 THREATS- (-) (E)possible external event in the environment that may
provide harm.

MARKET IDENTIFICATION- Strategic Marketing Approach and process that is

intended to define the specific customers of the product.

MARKET- A specific group of consumers at which a company aims its products

and services. Your target customers are those who are most likely to buy from you.

3 ENTREPRENEURIAL MARKETING STRATEGY-

1. Market Segmentation-is the process of dividing a market of potential

customers into small groups, or segments, based on different characteristics.
The segments created are composed of consumers who will respond
similarly to marketing strategies and who share traits such as similar
interests, needs, or locations.
4 types/ methods in segmenting the Market:

a. Geographic segmentation-  is a common strategy when you serve

customers in a particular area, or when your broad target audience has
different preferences based on where they are located. It involves
grouping potential customers by country, state, region, city or even
neighborhood..
b. Demographic segmentation-Process of dividing market through
variables.
c. Psychographicis a method used to group prospective, current or previous
customers by their shared personality traits, beliefs, values, attitudes,
interests, and lifestyles and other factors. These characteristics may be
observable or not.
d. Behaviorals a form of marketing segmentation that divides people into
different groups who have a specific behavioral pattern in common.