Department of Education

National Capital Region

SCHOOLS DIVISION OFFICE
MARIKINA CITY

ENTREPRENEURSHIP
Screen the Proposed Solution Based on Viability,
Profitability, and Customer Requirements
First Quarter-Module 4 Part 2

Writer: Richelle Requinala, MBA, LPT

Cover Illustrator/ Writer: Sheila Mae A. Malesido, MBA, LPT

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 This module was designed and written with you in mind. It is here to help you
develop knowledge, skills, and attitudes in the course of Entrepreneurship. The
scope of this module permits it to be used in many different learning situations.
The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the textbook
you are now using.

The module is divided into two lessons, namely:

• Lesson 4 – Select the best product or service that will meet the market need.
After going through this module, you are expected to:
1. Screen the proposed solution/s based on viability, profitability, and
customer requirements
• identify the forces of internal environment
• determine the importance of internal environment scanning, and
• identify internal environmental scanning tools
2. Select the best product that will meet the market need

Identify the following by choosing the answer in the box below. Write your answer
on the space provided before the number.
Strengths Weaknesses Opportunities Threats
Business resources Business culture Business Structure
Tangible resources Intangible resources current resources
Noncurrent resources capability cultural acceptance
cultural integration

_____________1. These are resources that are used, applied, or consumed within
a short period or one year.

_____________2. These are the assets of the business that do not have physical
appearance or form.

_____________3. This refers to the strong attributes or capabilities of the business

that provide great advantage in exploiting the business
opportunity.

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 _____________4. These are business situations in the form of products or services
that must be exploited because of their potential in terms of
profit and growth.

_____________5. These are poor attributes or deficiencies that give disadvantages

to the business.

_____________6. These are possible external events in the environment that may
provide harm to the business.

_____________7. This refers to the formal organizational arrangement of the

business in terms of hierarchy of positions, flow of
communication, relationship of functional areas, and production
and marketing process.

_____________8. It is the degree by which the employees accept the culture of the
unit or business.

_____________9. It refers to the degree by which all units across the business
accept and share a common culture.

_____________10. These include cash, receivables from customers, and inventory

or goods intended for sale or office supplies.

Screen the Proposed Solution

Lesson
Based on Viability,
4 Profitability, and Customer
Requirements

After the business opportunity has been identified, the entrepreneur does not
need to immediately open a new business to exploit the business opportunity. He
should satisfy the appropriate entrepreneurial character traits, skills, and
competencies required, the warrant of physical environment in opening and
sustenance of the business venture and the competing forces in the societal and
industry environment.

The other major division of the business environment is the internal or

microenvironment. The internal environment in the entrepreneurial context simply
refers to the environment within the business. Similar to the external environment,
the different forces within the microenvironment are interrelated with other forces in
the business environment. These are several forces operating within the internal
environment. Some of these are the business resources, business culture, and
business structure.

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 Let It Go
Single by: Idina Menzel
Songwriter: Kristen Anderson-Lopez and Robert Lopez
Frozen: Original Motion Picture Soundtrack
Released by: Walt Disney Records

The snow glows white on the mountain tonight

Not a footprint to be seen
A kingdom of isolation
And it looks like I'm the queen
The wind is howling like this swirling storm inside
Couldn't keep it in, heaven knows I tried
Don't let them in, don't let them see
Be the good girl you always have to be
Conceal, don't feel, don't let them know
Well, now they know
Let it go, let it go
Can't hold it back anymore
Let it go, let it go
Turn away and slam the door
I don't care
What they're going to say
Let the storm rage on
The cold never bothered me anyway
It's funny how some distance
Makes everything seem small
And the fears that once controlled me
Can't get to me at all
It's time to see what I can do
To test the limits and break through
No right, no wrong, no rules for me
I'm free
Let it go, let it go
I am one with the wind and sky
Let it go, let it go
You'll never see me cry
Here I stand and here I'll stay
Let the storm rage on
My power flurries through the air into the ground
My soul is spiraling in frozen fractals all around
And one thought crystallizes like an icy blast
I'm never going back, the past is in the past

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 Let it go, let it go
And I'll rise like the break of dawn
Let it go, let it go
That perfect girl is gone
Here I stand in the light of day
Let the storm rage on
The cold never bothered me anyway

Note: * The song/lyrics used in this learning module is subject to “Fair Use” based on the Copyright Law of the
Philippines.

Guide Questions:

1. Based on the song “Let it go,” can you identify the strengths of Elsa?

2. Did Elsa have weaknesses? What part of the song?

3. Was Elsa ben threatened? What part of the song? Explain.

4. What is the biggest opportunity for Elsa if she overcomes her fears?

Sources of Opportunities

There are many ways to uncover or discover opportunities. Some have to do with
looking at the big picture and noticing emerging trends and patterns. Others have to
do with finding out what specific customer segments are being targeted in the
marketplace. Still, others come from new technologies and new knowledge.

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Nature and Concept

The competing forces in the industry environment are the potential new
entrants, buyers, substitute products, suppliers, and rival firms in the business. The
entrepreneur performs environmental scanning to determine the possible position of
the business by considering the threats and the possible barriers. The environmental
scanning tools that may be applied are the forces of competition model and the
competitive forces matrix.

The internal or micro-environment is the environment within the business. The

common environmental forces in the internal environment are the following:

1. Resources

Business resources – are assets or properties owned or controlled by the

business. The resources can either be tangible or intangible.

Tangible resources – are assets of the business that have physical

appearance and form. They can be touched and seen. Examples of tangible
resources or assets of the business are money in the form of paper bills
coins, building, equipment, machinery, office supplies, inventory, land,
and human resources.

a. Current resources – are used, applied, or consumed within a short

period or one year. These include cash, receivables from customers,
and inventory or goods intended for sale or office supplies.
b. Noncurrent or fixed resources - are properties whose usefulness
or benefits extend beyond one year. They include land, building,
machinery and equipment

Intangible resources – are the assets of the business that do not have the
physical appearance or form. They cannot be touched. Examples of intangible
resources of the business are copyright, patents, formula, computer software,
reputation, and goodwill. These resources are expected to provide benefits and serve
as the basic foundation of the business. A business without resources cannot exist
and a business with insufficient resources cannot sustain the operation. This
indicates that the sufficiency or availability of resources is a critical issue in the
internal environment of the business.

Availability
of resources
Resources Provide Business
advantage
Capability of
utilization

Availability and Capability Features of Business Resources

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The entrepreneur should, therefore, answer these two questions on resources:

a. Does the business have enough resources to exploit the business

opportunities?
b. Does the business have the capability to fully and efficiently utilize the
resources?

2. Culture

Business culture known as the organizational or corporate culture, is a

collection of values, beliefs, principles, and expectations learned and shared
by the employees, founders, stakeholders, and members of the management.
The culture of the business reflects the overall image of the business to the
community.

Cultural acceptance refers to the degree by which the employees accept the
culture of the unit or business.

Cultural Integration refers to the degree by which all units across the
business accept and share a common culture.

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, and production and marketing processes.

Scanning of the Internal Environment

The micro or internal environment of the business, including the forces

operating on such environment, must be evaluated and studied. The following tools
in conducting the internal environmental scanning:

1. SWOT Analysis is the popular tool to evaluate the internal environment.

Strengths refer to the strong attributes or capabilities of the business that

provide great advantage in exploiting the business opportunity.

Weaknesses are poor attributes or deficiencies that give disadvantages to the

business. Both the strengths and weaknesses in the SWOT analysis are within
the business environment and are thus within the control of the entrepreneur.

Opportunities are business situations in the form of products or services that

must be exploited because of their potential in terms of profit and growth.

Threats are possible external events in the environment that may provide
harm to the business.

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Using the SWOT analysis, the entrepreneur therefore must

1. Use strengths to exploit the business opportunities and

2. Improve the weaknesses to avoid the threats

By using the SWOT analysis model, the entrepreneur must list down all the factors
that are considered strengths, weaknesses, opportunities, and threats affecting the
business.

The strengths of the business may include the following:

1. Qualified working force

2. Complete and new physical facilities
3. Democratic leadership style
4. Motivated workers
5. Valuable intangible assets

The weaknesses of the business may include the following:

1. Autocratic form of leadership

2. Demoralized employees
3. Poor and dilapidated equipment and machineries
4. Unskilled workers
5. Poor technological structures

The possible business opportunities are as follows:

1. Innovative products introduced to the market
2. Increasing the market share because of market advantage
3. Providing services to new customers
4. New programs of the government

The possible threats may include the following:

1. Possible entry of competitors
2. Stiff government regulations
3. Higher interest rates
4. Entry of cheaper products
5. Unstable peace and order situation
6. Shift of customers taste and preference

Business Business Environment Environment

Strengths Weaknesses Opportunities Threats
Complete and new Unskilled workers New potential Entry of new
processing to handle the new consumers competitors
facilities technological
equipment
Table 1.1. Basic SWOT Analysis

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The tabular presentation of the different forces can be improved if the SWOT analysis
is performed using the following matrix form.

Table 1.2. SWOT Analysis Matrix

Strengths and Business strengths Business weaknesses
weaknesses
Complete and new Unskilled workers
processing facilities handling the new
Opportunities technological equipment.
and Threats
Environment (Opportunity-Strength Opportunity-Weaknesses
Opportunities Strategy) Strategy)

New potential consumers Using strengths to exploit Overcome or avoid

or take advantage of the weaknesses by taking
business opportunity. advantage of business
opportunities
Environment Threats (Threat-Strength (Threat-Weakness
Strategy) Strategy)

Entry of new competitors Using strengths to Minimize weakness to

minimize or avoid threats avoid threats

Classify the following business resources by putting a check mark in the appropriate
column.

Business Resources Tangible Resources Intangible Resources

Copyright
Paper Bills
Land
Computer Software
Goodwill
Machinery
Patents
Human resources
Reputation
Cash

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Answer the following questions briefly. Write your answer on the spaces provided.
1. Describe the internal or macro environment of the business.

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
2. What is the importance of conducting SWOT analysis in a business?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
____________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

Activity 1.1. In a separate bond paper, divide the sections into three. Labe the first
column as “Family resources,” the second column as “Family culture,” and the third
column as “Family culture.” On top of the three columns, write “The Family Micro-
Environment.” Use the format below.

The Family Micro-Environment

Family resources Family culture Family structure

List down the resources and culture of the family in the appropriate column. Describe
your family structure in terms of leadership, communication, and order.

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Activity 1.2. This time consider only the strengths of the three forces in your family.

The Strengths of the Family in Micro-Environment

Strengths in family Strengths in family Strengths in family

resources culture structure

Assess the strengths of your family in terms of resources, culture, and structure.
Will they provide the family with the advantage or capability to open a small business
in the local community? Explain your answer on the spaces below.

__________________________________________________________________________
__________________________________________________________________________
____________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

Activity 1.3. Using the SWOT analysis, plot the family strengths and weaknesses and
the opportunities and threats in your local community. Write it in a separate bond
paper. Refer to the format that follows.

Strengths and Family strengths Family weaknesses

weaknesses
1. 1.

Opportunities 2. 2.
and Threats
Opportunities in the local How will you use the How will you overcome
community family strengths to take the family weaknesses by
advantage of the taking advantage of the
1. opportunities in the local opportunities in the local
community? community?

2.

Threats in the local How will you use the How will you minimize the
community family strengths to avoid family weaknesses to
1. or minimize the threats in avoid or lessen the threats
the local community? in the local community?

2.

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Choose the best answer in the following questions by writing the letter as your
answer in the space provided before the number.
__________1. These are assets or properties owned or controlled by the business.
a. Business resources c. Business structure
b. Business culture d. SWOT analysis

__________2. It refers to the formal organizational arrangement of the business of

hierarchy of positions, flow of communication, relationship of
functional areas, and production and marketing processes.
a. Business resources c. Business structure
b. Business culture d. SWOT analysis

__________3. It is a collection of values, beliefs, principles and expectations learned

and shared by the employees, founders, stakeholders, and members of
the management.
a. Business resources c. internal environment
b. Business culture d. SWOT analysis

__________ 4. It is a popular tool to evaluate the internal environment.

a. Business resources c. Business structure
b. Internal environment d. SWOT analysis

___________5. It simply refers to the environment within the business.

a. Business resources c. internal environment
b. Business culture d. SWOT analysis

B. Identify the following if it is a strength, weakness, opportunity or a threat.

____________1. The location of the business is accessible enough to meet the target
market.
____________2. There are many competitors in target market offering the product.
____________3. The business offers elegant designs in cheap prices to gain good
customer perception towards a product.
____________4. Maintenance of features of the store is quite costly.
____________5. The shop has its distinctive characteristics in terms of product being
offered.

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____________6. The business will easily catch the attention and interest of the target
consumer.
____________7. The business will be introduced in the market, it may easily have good
market status, but it may also encounter difficulties.
____________8. It’s not easy to gain a customer’s loyalty especially if there are other
stores that may offer the same product.
____________9. Nowadays, online purchasing is being patronized, therefore the
proponents have decided to enter Online Marketing.
____________10. The businesses provide high-end selection of designs in cheap prices
that suit the fashion taste of the consumer.

OFFLINE ACTIVITY

Identify at least (3) three strengths, weaknesses, threats and opportunities of the
proposed business you had done in Module 4 (Additional Activities) that is related
in your strand/track. Use the format below.

Name of the Proposed Business: _____________________________________________

Description: ________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

Business Business Environment Environment

Strengths Weaknesses Opportunities Threats

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Book
Aduana, Nick L. Entrepreneurship in Philippine Setting for Senior High School, 2017,
C & E Publishing Inc., Quezon City
Baltazar, William B., et. al. In Depth: A Guide to Successful Business Planning,
2017,
Unlimited Books Library Services & Publishing Inc., Manila

Go, Josiah. Fundamentals of Marketing in the Philippine Setting, 2010, Josiah and
Carolina Go Foundation, Inc.

Online Source
https://china.usembassy-china.org.cn/wp-
content/uploads/sites/252/2016/12/principles_of_entrepreneurship_.pdf
https://www.entrepreneur.com/article/78002
https://tycoon.ph/top-10-successful-entrepreneurs-philippines-story/2/
https://www.mbaskool.com/business-concepts/marketing-and-strategy-
terms/12221-potential-market.html

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 Development Team of the Module

Writers: Sheila Mae A. Malesido MBA, LPT (SEHS)

Richelle C. Requinala MBA, LPT (CIS)
Internal Reviewer: Dunhill Jan E. Elmido (NHS)
Eva Montaña (MHS)
Sylvette G. Sabaupan (NHS)
Emily C. Santos ( Public Schools District Supervisor)
External Reviewer: Kervin Rey G. Torente, Ateneo De Manila University
Cover Illustrator/ Layout Artist: Sheila Mae A. Malesido MBA, LPT (SEHS)

Management Team:
Sheryll T. Gayola
Assistant Schools Division Superintendent
OIC, Office of the Schools Division Superintendent

Elisa O. Cerveza
Chief, Curriculum Implementation Division
OIC, Office of the Assistant Schools Division Superintendent

Emily G. Santos
Public Schools District Supervisor

Ivy Coney A. Gamatero

EPS– Learning Resource Management and Development System

For inquiries or feedback, please write or call:

Schools Division Office- Marikina City

Email Address: sdo.marikina@deped.gov.ph

191 Shoe Ave., Sta. Elena, Marikina City, 1800, Philippines

Telefax: (02) 682-2472 / 682-3989