Read the Information Sheet very well then find out how much you can remember and

how much you learned by doing Self-check 1.2-1

Information Sheet 1.2-1

Environment and Market

Working in a company or in your own business is essential to be able to
identify and study the environment and market of animation industry in your
locality or town. You can also identify options if your original plan will be
successful or not.
In setting up your business, a lot of things have to be considered in
finding the right environment for your business.
There are factors to be considered. First, Tangible factors the physical
location, like a particular economic or business zone in your area,
accessibility, availability of transport sectors, suppliers and possible clients,
competitors and layout of office. Second, Intangible factors such as
provisions for government regulations political situation, culture and
demography of the people-population, economic and social status, technology
availability.

Environment Factors

1. Natural and Physical environment- the actual, physical location of the

business. Ideally it should be clearly visible and close to your target
market.

2. Demography- refers to the population of your potential market and the

diversity of their socio-economic grouping.

3. Culture- refers to people’s way of life, you have to consider the cultural of
the people around your business area.

4. Government regulations- you need to legalized your business for you to

freely transact and dispense your products or services. You need to
comply with all the regulations and policies set by the different government
agencies concerned.

5. Economy- it can be interpreted as the effective management of business.

Economy influences how well goods and services are traded in the market
as well as the quality of life of people. As an entrepreneur, you must be
sensitive and observant to economic indicators such as:

 Inflation – the increase of the general price level of goods and services.

 Gross Domestic Product (GDP) – It reflects the annual gross domestic

income derived from the salaries and wages, profits from businesses
 and taxes collected by the government. The higher the GDP, the more
spending power a consumer has.

 Unemployment Rate – the percentage of people who are actively

seeking a job but could not find one. The higher the unemployment rate
the lesser income for consumers to spend. Less spending ability of
people means less business.

Consumer Analysis

1. Needs and Wants of People

People have different understanding of wants and needs. Needs in
business are important that individual cannot do without these. Basically,
these include food, clothing, shelter, health care, education and relaxation.
This are essentials to everyone that he or she may be able to live with
dignity. Wants are desires and considered over and above the needs of
life. Some examples are the eagerness of having a very expensive car,
clothes, shoes, traveling around the world, jewelries, and impressive
houses. These wants and needs can obviously help you generate
business ideas.
2. Generate Ideas for Animation Business
Ways by which you can generate possible ideas for your business.

A.Examine the existing goods and services

Ask yourself if you are satisfied with the existing product. What do
other people say about the product? how can you improve it? You can
enhance and innovate of what is already existing, making it more useful
and adaptable to the customers’ needs.

B. Examine the present and future needs

Look and listen to customers’ demands. Sometimes, needs are
very obvious and other needs are not because they can only be felt in
the future.

C. Examine how the needs are being satisfied

The needs for products and services are the market demand. The
one who use or buy the products and services is the possible market,
and these may be people, institutions, establishment and agencies. No
supply to a pressing market demand is a great business opportunity.
The needs for raw materials, maintenance and other services are good
source of ideas for business.

D. Assess the available resources

Observe what materials and skills are available in your
locality/town. The business may use this opportunity to provide
products and services align with the business that you are thinking.
 E. Read articles, news and publications on the new trends and
techniques or technology advancement in business
You can pick up new ideas and techniques in business from these
printed materials. It will also guide you on how to put the right products
and services at the right place, at the right price, at the right time.

F. Select the right idea

You have to select the most appropriate from your listed ideas, but
you need to screen your ideas to narrow them down to about 2 options,
from then choose between the two and decide which business is worth
pursuing.
Here are the factors to be consider in screening your ideas:
1. Capital
2. Demand for product
3. Background to run the business
4. Business legal issues
5. Expertise and Interest on the business

SELF-CHECK 1.2-1

A. Multiple Choice
Direction: Choose the letter that corresponds to the correct answer and
write your answer on a separate sheet of paper.
1. The following are the steps in consumer analysis, except.
a. select the right idea c. knows the needs and wants of
people
b. needed capital d. examines the existing goods
and services
2. Which is not a factor in finding the right environment for your business?
a. Physical location c. accessibility
b. Suppliers and clients d. needs and wants of people
3. It is a factor in choosing the environment which refers to the physical
location of the business.
a. Intangible factor c. accessibility
b. Tangible factor d. demography
4. Which is an example of Intangible factor in finding location for business?
a. accessibility c. demography
b. availability of transport sector d. competitors
5. Which of the following is an example of needs?
a. Luxury cars c. expensive clothes
b. Impressive house d. health and education
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