Applied Economics

Second Quarter – Module 5:

Types of Industries
&
Identification of Business
Opportunity
Applied Economics
Alternative Delivery Mode
Quarter 2 – Module 5: Types of Industries & Identification of Business Opportunities
First Edition, 2020

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 12

Applied Economics
Quarter 2 – Module 5:
Types of Industries
&
Identification of Business
Opportunities
Request for Layout
Introductory Message
For the facilitator:

Welcome to the Applied Economics- Grade 12 Alternative Delivery Mode (ADM)

Module on Types of Industries & Identification of Business Opportunities.

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills 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. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.
For the learner:

Welcome to the Applied Economics Alternative Delivery Mode (ADM) Module on

Types of Industries & Identification of Business Opportunities!

The hand is one of the most symbolized parts of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

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 resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
 what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!
 Notes to the Teacher
This module is designed for a two-week learning process. You may divide the
discussion of the topics as follows: Week 1- Types of Industry and Week 2-
What I Need to Know
Identification of Business Opportunity

Give emphasis that writing of anything in this module is strictly prohibited

separate paper (preferably a notebook assigned for applied economics subject)
be used as answer sheet. The answer sheets provided will be located at the
end of each lesson/ topic.
If the answer sheet is not available, the learner should copy the activity in a
separate paper/ answering notebook.

If you have an internet connection, see this link for other example and
explanation of the topic. https://www.youtube.com/watch?v=343CIAQxwO4

This module was designed to distinguish the different services/products of

business and industry in our locality. It will discuss the different types of
industries. The learner will identify the different local industry according to its type.
It is very important that the learner have knowledge about the different types of
business according to its activities because it will be useful in recognizing the
business sector / industry. This module will also identify the three stages of
business opportunities, explain and define the growth strategies that use strategic
alliance, and describe the standard industry classification. The lessons are
arranged to follow the standard sequence of the course.

The module is divided into two lessons, namely:

 Lesson 1 – Types of Industries
 Lesson 2 – Identification of Business Opportunities
Learning Competency:
 distinguish the different services/products of business and industry in the
locality (ABM_AE12II-a-d10)
After going through this module, you are expected to:
 identify the different types of industries;
 distinguish the different services / products of business and industry in the
locality;
 identify exports and import products of the country;
 explain why customer service is so important in retailing;
 describe the various customer services that a retailer can offer;
 explain the value of international trade in the industry;
 identify the three stages of business opportunities;
 explain and define the growth strategies that use strategic alliances; and
 describe the standard industry classification and its significance.

What I Know

PRE-ASSESSMENT: Let’s see how much you know about this pre-test.

Multiple Choices: Write the letter of your answer before the number.
__1. Which of the following belongs to Primary Industry?
a. Automotive b. Fishing c. Health Care d. Mass Media
__2. Which of the following belongs to Secondary Industry?
a. Textile b. Farming c. Insurance d. Transport
__3. Which of the following belongs to Tertiary Industry?
a. Construction b. Tobacco c. Real Estate d. Forestry
__4. Which of the following belongs to Quaternary Industry?
a. Horticulture b. Fishing c. Electronics d. ICT
__5. Which of the following industries does not belongs to the group?
a. Food b. Energy c. Steel d. Hospitality
__6. In business, it might be constant, increasing or decreasing.
a. Costs b. Microeconomics c. Materials d. Macroeconomics
__7. It consists of all the people and activities involved in making a particular
product or providing a particular service.
a. Economic b. Monopolistic c. Industry d. Oligopolistic
__8. Industry engaged in re-production and multiplication of plants and animals.
a. Agricultural b. Genetic c. Horticulture d. Environmental
__9. Industry that convert of raw materials into finished products
a. Manufacturing b. Genetic c. Construction d. Steel
__10. It is important to create new market, to share risk and for
capital pooling.
 a. Consortia b. Licensing c. Strategic Analysis d. Alliance
__11. Customers who were not satisfied with the level of customer service offered.
a. Sociable b. Transient c. Impulsive d. Interrupter
__12. Services provided to the customer before he/ she enters the store.
a. Pre-transaction b. Transaction
c. Post-transaction d. Beginning Transaction
__13. These customers allow the salesperson to make decision for them.
a. Transient b. Decisive c. Indecisive d. Sociable
__14. Which is not a predictor in selecting a salesperson.
a. Personality b. Fashionable c. Experience d. Salesperson Training
__15. It is the service provided to the customer after purchasing the product.
a. Pre-transaction b. Transaction c. After transaction d.Post-Transaction

Lesso
n
Types of Industries
1
Industry is the work and processes involved in collecting raw materials and
making them into products in factories. A particular industry consists of all the
people and activities involved in making a particular product or providing a
particular service. It is an organized economic activity concerned with
manufacture, extraction and processing of raw materials, or construction.

What’s In

 Review your knowledge about the types of business according to its

activities.
Complete the table by supplying the types of business according to its activities
and its advantage and disadvantage. (Write your answer in a separate paper or to
your answer sheet).
Types of
Guiding Questions: Business
Advantage/ Disadvantage
1. What are the different types of according to
s /s
business according to its activities? Activities

2. What are their advantages and

disadvantages?

What’s New
Analyze the following group of sectors/industries.
Group 1 Group 2

Automotive Industry, Steel Industry,

Agriculture (Flowers,
Electronics Industry, Chemical Industry,
Horticulture, Coffee), Fishing, Food Industry, Textile Industry, Water
Forestry, Mining, Tobacco Industry

Group 3 Group 4

ICT Media,
Mass (information and Services
Financial
communication technologies),
Industry, Insurance Industry, Health
computing, Research
Care Industry, Music and
Industry,
Development,
Education Computer
Industry, Transport Industry,
Programmers
Real estate Industry

Analysis Questions:

1. What have you noticed in each group? Are they familiar/ related to each
other?
2. Can you identify what kind of group it is?
3. Can you name other industries related to each group?

*Note: Write your answer in a separate paper / answering notebook

The teacher should collect/check the answers.

What is It AGRICULTURE,
Economies Producing FISHERYSectors AND
FORESTRY
The economy has three main
The Agriculture, Fishery and
Industry is the production of goods and producing sectors:
Forestry Sector reaps the fruits of
services by converting the inputs into 1. Agriculture, Fishery and Forestry
natural resources like the soil, water
outputs and or creation of utilities to 2. Industry (Manufacturing/
and forests. However, these
customers. Construction /Electricity/Gas
environmental resources are
Goods produced by an industry are and Water)
vulnerable to climate change
used either: 3. Service
affecting (Trade/ Transportation,
production such as long
Communication and Storage/
dry spells and frequent devastating
 by consumers to satisfy their wants and Banking and
typhoon due Finance/
to PublicNino
El
needs Service (Government)/ Realsectors
phenomenon. From these
 by other industries for further Estate/
comes the Private Services)
foods we cook at home
production and raw materials processed and
used by other economics sectors.
Agriculture accounts for most (84%,
NEDA) of sectoral production as fishery lags behind despite the country’s big
fishing grounds. Much less forestry contributes to output as it will takes decades to
revegetate our vastly denuded forests.

INDUSTRIAL SECTOR

The Industrial Sector processed the raw materials coming from agriculture,
fishery and forestry into intermediate products that will later processed into final
products. For example, local makers of belt and shoes produce the final products
by processing the intermediate product of leather which is manufactured from the
animal hide extracted by the agriculture. Use The lead industries in resource use
and output are manufacturing and construction as they respectively account for
65% and 20% of sectoral production (NSCB 2009).

SERVICE SECTOR

The Service Sectors produces the intangibles supporting and complementing

production in the other sectors as well as among its own industry, more precisely
services instead of goods. For example, the transport industry brings input and
output among the other industries. The single biggest industry in resource use
and output is trade as it accounts for 29%of sectoral production (NSCB 2009).
Ind
ust
The country’s producing sector
rial struggles with one another as they
27
% Industri
compete for the use of local resources
al (e.g. labor). The combination of
16%
Agricult
ural Service Agriculture, Fishery and Forestry is the
Agr31% Ser
53%
vice
least efficient sector, while the efficient is
icul
tur 63 the industrial sector. The Agriculture,
%
al Fishery and Forestry employs one third
10
1
%
( ) of local labor for productions, but
3
1
only produce one tenth ( ) to the country’s total output ( Fig 5.1 and 5.2). While
10
the Industry has almost twice as much share in output (27%) as it has employment
(16%). In between is the Service Sector which has a slightly greater share in output
(63%) than in employment (53%). The fig 5.3 shows the comparative efficiencies of
the country’s main producing sectors.

Source: Philippine Statistics Authority

Source: Philippine Statistics Authority

Figure 5.1. Sectoral Shares Figure 5.2. Sectoral Shares

Output (2013 Employment (2013)
 100000
80000
60000
40000
20000
0
Agriculture Industry ServiceSource: NEDA
Fig
ure 5.3. Sectoral Productivity (2008)

Types of Industry

Industry can be divided into three main categories. Recently Tertiary industry has
been sub-divided into a fourth type.

1. Primary Industries (the raw materials industry)

a. Genetic Industries - are those industries which are engaged in re-
production and multiplication of species of plants and animals with
the sole objective of sale.
b. Extractive Industries - Any processes that involve the extraction of raw
materials from the earth to be used by consumers like mining or quarrying.

Examples are Agribusiness/ Agriculture Industry, Diary / Farming Industry,

Fishing Industry, Mining, Timber Industry, Tobacco Industry, Forestry etc.
* Primary industries produce goods using natural resources.

2. Secondary Industries (Manufacturing / Construction Industry)

a. Manufacturing Industries - deal with the conversion of raw materials or
semi- finished goods into finished products.
b. Construction Industries -help in faster development of economic activities
like transportation and communication.
Examples are Automotive Industry, Electronics Industry, Semiconductor Industry,
Computer Industry, Aerospace Industry, Chemical Industry, Pharmaceutical
Industry, Industrial Robot Industry, etc.
* Secondary industries are Labour-oriented industries and deal with the manufacture
of finishing products.
3. Tertiary Industries (Services Industry)
 They provide services to other people and industries.
Examples of Tertiary Industries can include Doctors, Dentists, Refuse collection
and Banks, Mass media, Broadcasting, Financial Services Industry, Insurance
Industry, Health Care Industry, Hospitality Industry, etc.

4. Quaternary Industries (Intellectual Service Industry)

 Involve the use of high-tech industries.
 People who work for these companies are often highly qualified within their
field of work.
 Research and development companies are the most common types of
businesses in this sector.
Examples are ICT (information and communication technologies), Research and
Development, Computer Programmers.

What’s More

Activity 5.1.1 Understanding Industry Types

Complete the table by giving Types of Characteristic Examples
the characteristics and some Industries s ( atleast 3 (atleast 5
examples of the different types each) each)
of industries. Use separate Primary
paper for your answer or see if Secondary
the answer sheet is available. Tertiary
Quaternar
Activity 5.1.2 Word Puzzle y
Answer the following by finding the word in the grid. It can be vertical, horizontal or
diagonal. Copy the grid in your notebook.

1. Economic activity concerned with the processing of raw materials and

manufacture of goods in factories.
2. The branch of manufacture and trade based on the building, maintaining,
and repairing structures.
3. Materials that satisfy human wants and provide utility.
4. The industries involved in the activities of rearing & breeding of living
organism.
5. Engage in the transformation of goods, materials or substances into new
products
6. It aims to provide the business sector with the ability to advance their
services.
7. Activities involved in removing oil, metals, coal, stone, etc. from the ground.
8. It is the goods produce in the horticulture industry.
9. This is what the Tertiary Industry gave to the consumers or costumers
10.Products made from the sting bee business.
Q A S D Q W E R D F G T B G X C B N I A V B O
Y U T M A N M A S E D E M A N D S U P P Y E S
R A A S E T G O O D S I L L A B U D S Y O X E
T S I T G E N E T I C A L F I T E S R A S T E
S Z A Q E C G O D I S G O D D R V T W M Q R B
U X S U N R A C V B H D F J K L S N H F K A R
D I H A E O N X C U L T U R E U D A O T I C E
N N O R T N C A U K S F P T D W X L M Y N T E
I D L T I S H N R N A L O N E S C P E S G I T
N U L E C T A E R Y D L I X C I V V O D G V H
O F O R I R H J A M I N J F I M N O A N M E G
I T W N N U S C K L O N Q M V P H R O P I I I
T Y B A D C I B D D A R D O R L J R L S K N F
C S L R U T F S H S Q S R U E E T E J R S D Y
U R O Y S I H O N E Y Q O R S S E D S E I U R
R B C I T N Q C V T E A M N X T B E L M C S A
T N K N R G P K I I V X C I E E R S U R F T T
S I S D Y S U A N N O Z K N E L W Y T A L R E
N O Y U S M F N G S L J G G S I N X D F Q Y N
O M A N U F A C T U R I N G I N D U S T R Y O
C O M P U T I N G E E R I N G S C I E H K O M
Activity 5.1.3. Explore your Town.

Types of Name of Nature

Industry the of
Person/ Business
Business/
Company
Primary
Secondary
Tertiary
Quaternary
Enumerate
1. The workexamples
and ofprocesses
Primary Industry,
involved in
Secondary Industry, Tertiary Industry
collecting raw materials and making and
Quaternary Industry in your locality (at
them into products in factories are called industry.
least 5 each). Use
2. Extracting separate
raw paper
materials for your
(which are natural products) from the land or sea
answer or see if the answer sheet is
were the Primary Industry like Agribusiness, Fisheries, Mining etc.
available.
3. Secondary Industry involves the manufacturing and constructing products
or goods like steel, food, machines, cars etc.
4. The Tertiary Industry provide services to the consumers or costumers
examples were health care, real state, education etc.
5. The quaternary sector is based on pure knowledge and skill of a person. It
consists of intellectual industries providing information services, such as
computing and ICT (information and communication technologies). It uses a
high technology industry.
Application
A. Create a Minnie Statue of yourself, where
you are going to show the type of industry
or career that you want to pursue.
Enumerate the duties and responsibilities
on that career / industry. (Use recyclable
materials).
B. Interview a person that belongs to Primary Industry, Secondary Industry,
Assessment
Tertiary Industry or Quaternary Industry.
Guide Questions
1. What is your work?
2. How long have you been working in that industry?
3. Why do you choose that industry?
4. What are your duties/ responsibilities in your work?
5. What are your experiences (good / bad) in your work / career?
6. Will you recommend that industry to other people? Explain your
answer.

Group the following business/sectors / industry according to their type.

Bee Keeping Dried Flower Fish Farming IT Specialists

Business Business Hospital Aid JRS Express.
Jomark Int’l Engineering Information Kettle Foods
Corporation Specialist Sharing Corporation
Corn Farming Teacher Experts
LBC.
M.D. Juan Inc. Reporter TDT Powersteel Mushroom
Technology Programmers Corporation Farming
Developers Cebu Business
Construction

Addi
tion Export Import Products
al 1.
Products

Activ 2.
Select 20 products in your
ities 3.
home and identify if it is an
4.
What is Itimport or export
5. product of
6.
the Philippines. Copy and
7.
write your answer
8.
in the
table in a separate
9. paper.
CUSTOMER SERVICES AND 10.
RETAIL SELLING
High-quality service a
service that meets or exceeds customers’ expectations. Relationship retailing
activities designed to attract, retain, and enhance long-term relationships with the
Customer relationship management it is an information technology
infrastructure that supports relationship and retailing, fundamental unit of data
collection in the customer, constitutes information on customer, purchasing
behavior, demographics and consumer complaints. Should be adopted and
evaluated according to the firms’ mission. Retailers can develop relationships with
their customers by offering: Financial benefits or Social benefits.
 Three Basic Tasks of Retailing Common Customer Services
1. Get consumers into your 1. Pre-transaction services: Provided to
store the customer prior to entering the store
2. Convert them into your like convenient hour, parking,
customer information aids.
3. Operate as efficiently as 2. Transaction services: Provided to
possible customers when they are in the store like
credit, layaway, gift wrapping and
packaging, check cashing, gift cards,
Six Rules to Follow When personal shopping, merchandise
Handling a Customer’s availability, personal selling and sales
Complaint transaction.
3. Post-transaction services: Provided
1. Acknowledge the importance after purchase of merchandise or
of the customer services like complaint handling,
2. Understand the customer’s merchandise returns (renting, not
problem buying, fraudulent employee actions,
3. Repeat the problem (as you shoplift returns and price switching),
understand it) to the servicing, repair, and warranties,
customer delivery and post-sale follow-up.
4. Think of all possible
solutions
5. Determine the solution that
is fair to both
6. Make sure the customer
leaves feeling satisfied with
the solution

How the Retailer’s Sales Force

Meets the Expectations of Both
Vendors and Customers

Various Customer Types

Basic Characteristics Recommendations

Types
Defensive  Don’t trust any salesperson
 Resists communication
 Generally uncooperative and
will explode at slightest
provocation
Interrupte  Impatient personality
r  Interrupts salesperson
 Have a perpetually strained
expression
 Driven and successful people
who want result fast
 Avoid mistaking their silence
for openness to your ideas
 Stick to basics
 Tactfully inject product’s
advantages and
disadvantages
 Don’t waste time
 Move quickly and firmly
from one sales point to
another
 Avoid overkill
Decisive  Confident in their ability to
make decisions
 Open to new ideas but want
brevity
 Highly motivated by self-pride
 No canned presentations
 Assist
 Don’t argue or point out
errors in their judgement

Indecisive  Worry about making wrong  Avoid becoming frustrated

decision  Determine need as early as
 Want salesperson to make possible
decision for them  Don’t present too many
alternatives
 Start with making decisions
on minor points
Sociable  Friendly / talkative types  Listen for points in
 Have excess time conversation where product
 Resist closing the deal merits can be interjected
 Close the deal subtly and
friendly
Impulsive  Quick to make decision  Close as rapidly as possible
 Impatient  Avoid any useless
interaction and oversell
 Highlight products merit
Transient customer
An individual who is:
• Dissatisfied with the level of customer service offered
• Seeking an alternative store with the level of customer service that
is perceived appropriate
*In selecting a Salesperson consider the predictors like demographics, personality,
knowledge and intelligence, experience, salesperson training, and evaluation of
salespeople

INTERNATIONAL TRADE
Assembled electronic products top the country’s exports (40%) dominated by
the manufactures reflective of the country’s waning agricultural sectors (Philippines
Statistics Authority, Foreign Trade Statistics 2013). The assemble parts are imports
from subsidiaries in global networks of the same multinational corporation (e.g
Intel, Texas Instrument). These electronic parts are also the country’s leading
imports (22%) followed by minerals, fuels, machineries and equipment, and the
like. Almost all imports are semi-final and final manufacturers in the absence of
intermediate product industries. As already mentioned, electronics products hardly
contribute to local output and employment being import- dependent and without
much need for technology. Unlike their counterparts in other sectors, their
assembly plants are mostly found in the CALABARZON industrial zone where
support industries in manufacturing and trade are also moving into.
 What’s More
Assume that you’re going to a mall. As a shopper,
Activity 5.1.4 identify what a shopper’s wants when entering a
A Shopper’s Wish store or establishment. Write your answer in a
separate paper.

Activity
5.1.4
Crossword
Puzzle
 What I Have Learned

1. High-quality service a service that meets or exceeds customers’ expectations.

2. Relationship retailing activities designed to attract, retain, and enhance
long-term relationships with the customers.
3. In retailing, you need to get the consumers into your store, convert them into
your customer and operate as efficiently as possible
4. Transient customers are the individuals who are dissatisfied with the level of
customer service offered.
5. Pre-transaction services: Provided to the customer prior to entering the store
6. Transaction services: Provided to customers when they are in the store.
7. Post-transaction services: Provided after purchase of merchandise

What I Can Do

Application

Can you now apply what you have learned? Write your answer in a separate paper.

1. How will you handle the following

complain;
a. I’ve been here since morning, it’s
Assessmen
like I am waiting in this bank t
forever! I keep on getting shuffled
from one person to the next, I
already spoke to someone, but they
Let’s determine how much have you
were no help and seem to don’t
learned.
care at all.”
_________________________________
Modified True or False. Write true if
b. The product that you delivered is
the statement is true otherwise
not the one that I purchased, also
explain why it became false. Copy and
the price increased, and your
write your answer in a separate
return procedure is too difficult,
paper.
and it is a long process.
_________________________________
1. Prices of products in the store
c. You don’t have heater in your
should be clearly marked and
hotel, no tissues and I saw dead
visible, fair, honest, and
cockroaches in the floor. The guest
straightforward.
next door is too loud, and the food
quality is low.
_________________________________
 2. It is necessary to the seller to try the products before he/ she sell it.
3. The salesperson should argue or point out errors in the judgement of the
customer.
4. It’s ok to ask the budget of the customer.
5. The salesperson should present many alternatives choices to the customers.
6. The first 15 seconds after entering the store are the key as the customer set
the mood for the sale.
7. Never say “May I help you” in the customer.
8. What you tell is more important than what you hear from your customer.
9. The salesperson should acknowledge the importance of the customers.
10. The ease with the transaction can be completed, once the customer
makes a purchase.
11.As a salesperson you need to understand the customer’s problem .
12.Pre-transaction service will determine whether consumers buy from a firm in
the future.
13.The retailer should offer an easy return policy.
14.Being stylish is important in selecting a salesperson.
15.Transaction marketing aims to persuade consumers to visit the firm's retail
stores through highlighting store facilities, product features/benefits and
promotional offers.
Additio Basic Situation
nal Types
Defensive
Activiti Interrupte
r
es that will show the
Give a situation Decisive
characteristics of the following Indecisive
costumers. (use a real-life scenario). Sociable
Copy and answer in a separate paper. Impulsive

Lesson
Identification of Business
2 Opportunities
Business opportunities are difficult to define because the term means
different things to different people. A business opportunity is a packaged business
investment that allows the buyer to begin a business. (Technically, all franchises
are business opportunities, but not all business opportunities are franchises.)

Before we proceed to the lesson, let

What’s In me ask you this “What are the
characteristics and traits of an
entrepreneur?
 Analyze the picture below. What does
the picture portrait? Write your
answer in a separate paper.
What is It

When an idea is become an opportunity?

 Create or add value to customer

 Solve a significant problem, removing a What’s
pain point or meeting demand.
 Have robust market, profit margin and New
money marketing.
What are Business Opportunities?
Business Opportunities can be evaluated under three stages.

1. The first stage is the external influence on the business environment.

There are different external factors that may affect the business and its
survival that is outside to its direct control. Some example includes the
competition and the understanding about the market structure, price and
availability of raw material inputs. Even the weather and climate has become a
major factor as well. Also, there is an important issue on technology. Like, what
are the innovations that will be new and in demand in the country and in the
industry particularly, that can improve output or reduce cost or both?
2. The second stage is the internal effects on the business organization.
Given the different influence on the first stage, how is the business
organization responding to it? How the business decides on the price, outputs,
inputs, marketing and investments? Remember that cost might be increasing,
decreasing or constant. The business organizations react on three major ways-
expansion and growth, consolidation and divestment.
3. The third stage is the consequences and effects of the business organization
decisions on the external environments.
This is a constant cycle of equilibrium, disequilibrium, and cause and effect.
How do the decisions made by the business organization influence their
competitors, consumers, stakeholders, stockholders and the wider public? Are
their activities favorable to the public interest or should the government
interfere?
Growth using Strategic Alliances
 To cover a wide range of collaborative arrangement the strategic alliances are
very common nowadays. Alliances are either informal or formal working together in
a project, sharing information or even sharing resources.

There are six (6) types of alliances.

1. Joint Venture- two or more companies band together to jointly own a new
independent organization. Maynilad Water was a joint venture between the
DMCI and Metro Pacific.
2. Consortia- usually created for a very specific purpose, and once the project is
completed, the consortium is usually dissolved.
3. Franchise- formal agreement whereby the companies uses another entity to
produce or sell some or all its products.
4. Licensing- the owner of a patented product allows another company to produce
it for a free.
5. Subcontracting- company employs an independent business to manufacture or
supply some product or service rather than to conduct the activity itself.
6. Networking – most informal of all alliances. Two or more businesses work
together without any formal relationship binding one from another.
Standard Industrial Classification
The Philippine Standard Industrial Classification (PSIC) is a detailed
classification of industries prevailing in the country according to the kind of
productive activities undertaken by establishments. The 2009 PSIC was
patterned after the UN International Standard Industrial Classification (ISIC)
Rev. 4, but with some modifications to reflect national situation and
requirements. The PSIC was revised to (1) reflect changes in economic activities,
emergence of new industries, and the structure of the economy (2) to take into
account the new technologies employed which affect the organization of
production and shifting of economic activities and (3) to realign with the ISIC
revisions for purposes of international comparability. First introduce in 1948,
this system was meant to promote the collection by various government
department and nongovernment agencies of a uniform and comparable body of
data on industry.

What’s More
1. Think of a product or service that you
Activity 5.2.1 Think
Outside the Box
1. Explain the three stages of
business opportunities.
2. What is the standard
industry classification?
What is its significance?
Activity 5.2.2 Be an
Entrepreneur
would want to introduce in the market. It
can be an existing product or service but
which you can innovate and improve, or it
could be something new that you yourself
conceptualized. Describe that new product
in terms of design, composition of
materials, product use or application and
its attributes which you believe are unique
in that product.

What I Have Learned

1. We can identify opportunity by observing trends, solving the problems and
finding the gaps in the marketplace.
2. Business Opportunities can be evaluated under (external factor, internal factor
and consequences and effects of the business organization decisions on the
external environments).
3. Alliances are either informal or formal working together in a project, sharing
information or even sharing resources.
4. Business is much better in an environment that is progressive and growing, but
this does not always happen because of the business cycle- high and low levels
of economic activity in the business cycle.

Application

Observe and talk the small producers/ sellers in your barangay

(farmers, vendors, etc.). What other market opportunities do
they see and for what purpose and what product? What can
they collectively do when they form an association and for what
goals? What kinds of government support do you think they
need and for what specific activities? What can your barangay
What I and city/ municipality government can do to support these
Can Do small producers/ sellers and for what specific projects and
products? How would you conduct your business if you were
one of the owners of a small-scale industry? Write your answer
in a separate paper.

Assessment

Direction: Answer the following. Write your answer in a separate paper.

1. It is a fast way to grow any company.

2. Business is not always progressive and growing because of the high and
low levels of economic activity in the _______.
3. Factors that affect the business that is outside to its direct control.
4. A grant by a holder of a copyright or patent to another of any of the rights
embodied in the copyright or patent short of an assignment of all rights.
5. An agreement, combination or grouped form to do a certain project, after the
project is done, the agreement will be void.
6. Combination of businesses to work together without proper affiliation to each
other.
7. It can help the companies take on a larger market share and create security
for themselves in the process.
8. The right granted to an individual or group to market a company’s goods or
 services in a territory.
9. The company hires an independent business to produce the product or service.
10. The companies were linking together to create a new business or organization.
11. The PSIC is a classification of businesses prevailing in the country
according to the kind of ____ activities undertaken by establishments.
12.This might be increasing, decreasing or constant.
13. This can be evaluated under external factor, internal factor and
consequences and effects of the business organization.
14.We can identify the business opportunities by observing the ____.
15.It is affected by the actions of the government and other political events.

Answer Key

Lesson 1: Types of Industries

What I Know
1. B 2. A 3. C 4. D 5. D 6. A 7. C 8. B 9. A
10. D 11. B 12. A 13. C 14. B 15. D

What's More

Activity 5.1.1. (Note: These are the recommended or some of the possible correct
answers. However, the learner might give other acceptable or valid answers. Teacher’s
discernment is required.)

Characteristics (atleast 3 each) Examples (atleast 5

each))
 Directly obtains the resources provided by nature. Mining, Farming,
Primary Forestry, Fishery,
Industry  It covers the basic needs of human beings in Oil Extraction
order to survive.
 It is considered one of the oldest economic
activities.

Secondary  Labor and capital intensive Manufacturing,

Industry  Light industries are situated in urban areas and Food Industry,
heavy industries outside urban areas Construction, Craft,
 Its existence is dependent on primary industries Energy Industry
Tertiary  Focuses on providing access to services. Transportation,
Industry  Allows for the development of large-scale Hospitality,
employment opportunities in different fields. Finance, Insurance.
 It allows the ability for people to specialize their Entertainment
skills in the services environment.
Quaternary  Based on knowledge application Information
Industry  Involve the use of high-tech industries. gathering, ICT,
 Provides Information Services Research and
Development,
business consulting
and strategic
Activity 5.1.2 Word Puzzle

Activity 5.1.3.
(Note: In this
activity the
answer of the
learner depends
on the industries
available in their
town. Teacher’s
discernment is
required.)

What's More
Activity 5.1.4. (Note:
These are the
Assessment
recommended or some
Primary Secondary Tertiary Quaternary of the possible correct
Industry Industry Industry Industry answers. However,
Dried Flower Kettle Foods the learner might give
Business Corporation LBC Programmers other acceptable or
Mushroom Jomark valid answers.
Farming International JRS IT specialists
Business Corporation Express. Teacher’s discernment
Bee Keeping TDT Technology is required.)
Business Powersteel Teacher Developers
Corporation  Parking near the
M.D. Juan Information store
Fish Enterprises, Hospital sharing  Do not let me
Farming Inc. Aid Experts
pay to much
Engineering
Corn Cebu Reporter Specialist  Have an
Farming Construction approachable
and helpful sale
staff
 Get me in and
out as soon as
possible
 Do not make me
wait in line in
paying in the
cashier
Activity 5.1.5

Lesson 2: Identification of
Business Opportunities Assessment
What's More 1. pooling resources
Activity 5.2.1 – 5.2.2 (Note: In this 2. business cycle
activity the answer of the learners 3. external
will depends on their understanding 4. licensing
in the lesson. Teacher’s discernment 5. consortia
is required.) 6. networking
7. alliances
8. franchise
9. subcontracting
10.joint venture
11.productive
12.cost
13.business opportunities
14.trends
15. business organization
Assessment. (Note: These are the recommended or some of the possible correct
answers especially to the numbers with False answer. However, the learner
might give other acceptable or valid answers. Teacher’s discernment is required.)
1. True
2. False, the seller should have the knowledge about the product he/she is
selling.
3. False, the customer probably knows what he/she wants to buy.
4. True
5. False, the salesperson should show atleast 2 products only
6. True
7. True
8. False, it is important to hear first the customer before telling anything to
customer.
9. True
10. True
11. True
12. False, it is the post- transaction
13. True
14. False, Demographics, Personality, Knowledge and intelligence, Experience,
Salesperson training and Evaluation of salespeople are the important predictors
in selecting salesperson

15. False, it is the pre-transaction

References

Caoile, P. V, & Pefianco, E. C. (2017).Applied Economics. Phoenix Publishing House

Inc.

Dinio, R. P., & Villasis, G. A. (2017). Applied economics. Rex Book Store, Inc. (RBSI)

Leong, B. Entrepreneurship 1: Introduction, Identifying Ides & Business

Opportunities. (August 4, 2011).https://www.slideshare.net/bleongcw/
entrepreneurship-1-introduction-identifying-ides-business-opportunities

Leset, J. Types of industries. ( Oct. 16, 2018).

https://www.slideshare.net/Johnleset/typesofindustries119605989?qid=d5
f586419bb44cec9df07306cf42f888&v=&b=&from_search=4

Narang, K. Different types of industries, (Oct. 7, 2014)

https://www.slideshare.net/ANOPTIMISTICKARAN/different-types-of
industries-by-karan-narang?qid=d5f58641-9bb4-4cec9df07306cf42f888
&v=&b=&from_search=1

Perkins, S. Customer Services and Retail Selling. (2016)

https://slideplayer.com/slide/7544530/

Other electronic sources:

https://www.youtube.com/watch?v=343CIAQxwO4

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