Senior High School

SHS- Applied (Entrepreneurship)

Activity Sheet Quarter 1 –
Competencies 1.2.2 & 1.2.3
Development of Business Plan

REGION VI – WESTERN VISAYAS

SHS- Applied (Entrepreneurship)
Learning Activity Sheet No. 2
First Edition, 2021

Published in the Philippines

By the Department of Education
Region 6 – Western Visayas

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This Learning Activity Sheet is developed by DepEd Region 6 – Western

Visayas.

ALL RIGHTS RESERVED. No part of this learning resource may be reproduced or

transmitted in any form or by any means electronic or mechanical without written permission from the
DepEd Regional Office 6 – Western Visayas.

Development Team of SHS- Applied (Entrepreneurship) Activity Sheet

Writer: Chayin D. Gonzaga

Illustrators: Anthony M. Cordilla
Editors: Vincent J. Castro
Roslyn Q. Maceda
Lorgin G. Nuniala
Sol Grace O. Timola
Layout Artist: Annamor M. Eleccion, Llaine Grace B. Coronel
Jose Karrlo G. Barro
Schools Division Quality Assurance Team:
Edna T. Arbon
Kristian Jay L. Nanta
Georgie T. Jusos
Julie Ann G. Vegilio
Division of Sipalay City Management Team:
Renato T. Ballesteros
Ma. Teresa P. Geroso
Ronie T. Tababa
Annamor M. Eleccion
Sol Grace O. Timola
Regional Management Team:
Ramir B. Uytico
Pedro T. Escobarte Jr
Elena P. Gonzaga Gorgonio A. Batilaran, Jr.
Donald T. Genine
April C. Velez

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 Introductory Message

Welcome to SHS- Applied (Entrepreneurship) !

The Learning Activity Sheet is a product of the collaborative efforts of

the Schools Division of Sipalay and DepEd Regional Office VI - Western
Visayas through the Curriculum and Learning Management Division (CLMD).
This is developed to guide the learning facilitators (teachers, parents and
responsible adults) in helping the learners meet the standards set by the K to
12 Basic Education Curriculum.

The Learning Activity Sheet is self-directed instructional material

aimed to guide the learners in accomplishing activities at their own pace and
time using the contextualized resources in the community. This will also assist
the learners in acquiring lifelong learning skills, knowledge and attitudes for
productivity and employment.

For learning facilitator:

The SHS- Applied (Entrepreneurship) Activity Sheet will help you facilitate
the teaching-learning activities specified in each Most Essential Learning
Competency (MELC) with minimal or no face-to-face encounter between you and the
learner. This will be made available to the learners with references/links to ease the
independent learning.

For the learner:

The SHS- Applied (Entrepreneurship) Activity Sheet is developed to help you

continue learning even if you are not in school. This learning material provides you
with meaningful and engaging activities for independent learning. Being an active
learner, carefully read and understand the instructions then perform the activities and
answer the assessments. This will be returned to your facilitator on the agreed
schedule.

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 Quarter 1- Week 3-5

Learning Activity Sheet (LAS) 2

Name of Learner: _____________________________________________________

Grade and Section: ______________________________ Date: ________________

SHS- Applied (Entrepreneurship) ACTIVITY SHEET

Development of Business Plan

I. Learning Competency with Code

Recognize a Potential Market
1.2.2 Determine the possible product/s or service/s that will meet the need
CS_EP11/12 ENTRE-0a-4
1.2.3 Screen the proposed solution/s based on viability, profitability and
customer requirements CS_EP11/12 ENTREP-0b-c-5

II. Background Information for Learners

When you become an entrepreneur, several factors should be given closer

focus to run your business smoothly and productive. In running a business, it is a
task in which you as an entrepreneur, should be able to develop strong self-
confidence and consider yourself as a risk-taker. There are times that the supply
and demand are imbalanced. The perfect example of disparity is currently that the
world is experiencing a pandemic due to COVID-19. Supplies are not enough
accordingly resulting in a price increase which affects tremendously the life status
of every Filipino. In the meantime, as the world is fighting the invisible virus, all the
business activities are put in a critical situation that may cause an economic
downturn or bankruptcy in the future. One of the most important things to consider
when engaging in business nowadays is market analysis. Market Analysis is the
process of gathering evidence about a market within an industry. This analysis
studies the forces at work of a market and what makes potential customers tick.
Keep in mind that the risks associated with growing opportunities increase as you
move away from the products and markets you know into products and markets
that are new to you. Costs for research and development of new products and
researching and penetrating new markets will also increase.

Customer or Market Needs

Businesses should start by knowing the consumers’ interests, desires,

and needs. It’s easier to sell what consumers want and need than try to sell
something they don’t see the benefit in buying. In a fast-moving world, it should be a
competitive edge having the chance of monitoring the market, detecting what can be
a source of a profitable new business.

There are 5 elements to determine the market potential.

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1) Market Size

The first and most important factor to consider while determining market
potential is the market size of your product. Market size is the total market sales
potential of all companies put together. You need to know how big your potential
market is. This is the group of people who are likely to buy your product or service.
Unless you are in a very specific niche, you want to find a large group of buyers. For
example, if you want to sell a new weight-loss program, you may have a large market
of 50,000 people in your area that are between the ages of 25 and 65 who are trying
to lose weight.

Customer needs analysis is the process of identifying what motivates a customer to

buy products or services. Knowing which features, attributes, and benefits are relevant
to customers can help businesses adapt their product development and marketing
strategies.
2) Market growth rate

When you study market growth, you have to forecast based on the differences
between product line extensions and a completely new concept in the
Market. Samsung has the Samsung galaxy series which is a pioneer series in
Samsung. Naturally, whenever a new product line extension of the Samsung Galaxy is
launched, it will sell in the market. But will a new product line sell at the same pace?
So, the market growth rate is subjective, and it depends on the type of product you are
going to launch.

Another example is the PC market. The PC market as compared to the laptop

market, or the smartphone market is declining. That’s why if you are a company which
makes PC’s, then you have to be aware that you are entering a declining market.
Instead, if you have the potential, why not enter the laptop market or the Smartphone
market.

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 Market growth rate can be determined by checking the facts and figures of the
last 5 years of the industry that you are in. Many top websites will give you such data.
Even newspapers do a frequent analysis of which are the industries that are growing
and at what percentage. Today, if you were to enter the E-commerce industry, it will be a
wise choice because the industry is growing by leaps and bounds. However, 10 years
down the line, a new technology might be invented, which makes E-commerce buying
obsolete.

3) Profitability

Going back to the E-commerce example, many small businesses have mixed
feedback for E-commerce businesses. Some say that the market is huge and there is a
lot of potentials. But others say that they have suffered huge losses because of the
amount of packaging and the transport costs involved in shipping across the country.
These are both perspectives and both are correct.

Determining and forecasting your profitability is important to understand the

market potential. If the business is going to give low profitability, then the volumes need
to be high (e.g. – FMCG products) or if the business is going to give low volumes, then
the profit needs to be higher (e..g – industrial goods).

Calculation of profitability to determine Market potential can use three main elements

 ROI – Return on investment

 ROS – Return on sales
 RONA – Return on net assets
 ROCE – Return on capital employed
You can use any of the calculations mentioned above to calculate the likelihood of
profitability and to determine how profitable the industry or product is going to be.

4) Competition

You need to know and understand the competition in an industry to determine the
market potential for the product you are going to launch. If the industry has high
competition, the entry barriers are going to be high and at the same time, establishing
yourself will require deep pockets. You might have to lower the price of your products
even though you are giving higher value. This requires that you have enough money to
take hits till the time competition leaves the market.

Today, small retailers are suffering under the brunt of large multi-national sellers.
However, this does not mean small businesses have stopped establishing themselves.
They are using different strategies to attract customers to their businesses. One
such strategy is good customer service, which is missing in large corporations.

When competition is low, market awareness will be low as well. An example can
be taken of industrial refrigeration products, where the competition is low, but

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the product knowledge is low as well. So, your competitor is equally likely to influence
the potential buyer as you are. Differentiation will be minimal because there is no need
of investing in differentiation. In such a market, the companies which differentiate,
literally dominate the market they are in.

Determining market potential requires you to understand the market standing

of various competitors and it also requires that you have the necessary plans up your
sleeves to understand how to tackle these competitors when the time comes.

5) Product and consumer type

Is your product a repeat buying product or one-time sale only? Example, soap
and shampoo is a repeat buying product. But once you buy a refrigerator, you will need
another for the next 10 years. So, in your whole lifetime, you will buy 8-10 refrigerators at
the maximum. But in a year, you are likely to buy 40-50 soaps individually. That is 300-
400 soaps per individual in their livelihood. Multiply that by a billion and you can
understand the market potential of the soap industry.

Example of Determining Market Potential

I want to launch a Vegetarian Cuisine restaurant in my locality. So, I determine

the market potential as follows:

1. Market size – I have 2 Mongolian families living in my locality. They are of

different demography. But with some market research, I find out that many of
them are young adults.

2. Market growth – As my region has even more apartments and buildings coming
up, the market is going to grow instead of decrease.

3. Profitability – I have an idea of the prices being kept by competitors, and at those
prices, I will earn a good margin

4. Competition – Strong competition from a local semi-veggie restaurant. But I

believe my cooking skills and experience are better than him when it comes to
serving Vegetarian foods.

5. Customer type – It is going to be a repeat business because customers who like

to eat healthily & my food are more likely to come again and again. Each
customer will be important because I am in the food industry, and a single
mistake can lose me a lot of customers as well as my reputation.
Therefore, with the above analysis, I can safely say that I am better off with the
launch of the restaurant and that the market potential exists. Similarly, you can perform
a statistical analysis of your product or service which you are going to launch and
decide with regards to the launch of the product.

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 Opportunity is a situation or an occasion that makes it possible to do something that
you want to do. It is an available set of circumstances with uncertain outcomes
requiring an obligation or resources and involving exposure to risks. 

1. OPPORTUNITY SEEKING 
• Entrepreneurs are innovative opportunity seekers. They have a never-ending
curiosity to discover new or diverse ideas and see whether these ideas will work
in the marketplace. 

• Entrepreneurs create value by presenting new products or services or discovering

a better way of creating them.

• These may include innovation in terms of product designs or the addition of

new product features to present ones.

•They may also interfere in improving their operational skill by employing new
technologies that will bring them greater efficiency and better economics

2. OPPORTUNITY SCREENING 
• Opportunity Screening is the process of carefully selecting the best opportunity. It is the
most difficult and yet, most important part of opportunity-driven entrepreneurship. It takes
a lot of time, effort, and facts to discern which among the potential opportunities
uncovered would be the one worth investing in or at least narrowing down the list to the
few promising ones. 

III. Accompanying DepEd Textbook & Educational Sites

Ewing Marion Kauffman Foundation. 2020. Determine Market Potential. June 4.

Accessed February 11, 2021.
https://www.entrepreneurship.org/artiles/2006/09/determine-market-potential.

Habaradas, R.B. & Tullao, T.S. 2017. Entrepreneurship. Quezon: Phoenix

Publishing House, Inc.

Hitesh Bhasin. 2018. "How to determine Market potential for any product or
service?" https://www.marketing91.com/determine-market-potential/.
September 8. Accessed February 11, 2021.

Leonard, Kimberlee. 2019. Market Needs in a Marketing Plan. March 8. Accessed

February 8, 2021. https://smallbusiness.chron.com/examples-market-needs-
marketing-plan-12307.html.

Link: en.wikipedia.org/encyclopedia/market-research www.patriotsoftware.com

https://www.igi-global.com/dictionary/market-needs/63383

Gonzaga, Chayin D., GMNHS – Main, Division of Sipalay City

Created the word puzzle in Activity 1, Activity 2 questions

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 IV. ACTIVITY

Activity 1

Direction: Word Search: Search different words related to

Entrepreneurship from the set of word puzzles below (15 points)
T B D A C O M M O D I T I E S P
E C T N U F G A P E H A B J I E
C A E A S L I N P M E K U H N L
H M K L T N Q P O A Q T S U C R
N I R Y O H S O R N W R I V O I
O P A S M A T W T D U X N F M S
L R M I E N I E U E B Y E I E K
O O L S R X F R N D C M S N Z T
G D A B S E O E I F G A S A X A
Y U I C F T R N T S H R M N Q K
A C T E A P P T Y U I K A C M E
X T N P E N T R E P R E N E U R
Z S E R V I C E S P J T A L O P
J A T I J L O Q R L A T I P A C
Y N O C K M U S E Y X Q K A T R
E X P E D I S T R I B U T I O N

Activity 2
Direction: Getting to know the market. Answer the following questions. Write
your answers in the space provided after each question. 

1. Who are my potential market or customers?  

______________________________________________________________________
______________________________________________________________________

2. What are my customers’ spending and buying habits?  

______________________________________________________________________
______________________________________________________________________

3. How large is my target market?  

______________________________________________________________________
______________________________________________________________________

4. How much are potential customers willing to spend?  

_______________________________________________________________________
_______________________________________________________________________ 

5. Who are my competitors?  

______________________________________________________________________
______________________________________________________________________

6. What are my competitors’ strengths and weaknesses?  

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 _______________________________________________________________________
_______________________________________________________________________ 

Activity 3
Direction: Product List. List down at least 5 products and services offered in
your marketplace based on its importance to the community. Write your answer
in the table provided below (1 as the most important and 5 as the least
important) 

Products Services 
1. 1. 
2. 2. 
3. 3. 
4. 4. 
5. 5. 

Activity 4
Direction: Opportunity Spotting and Assessment. Do an opportunity
spotting and assessment activity in your locality or barangay. Identify the
potential opportunities from the given opportunity source. If there is no
opportunity in a particular source, indicate none. You may also repeat other

Opportunity source  Findings  Potential product

or service

Demographics  The number of Cellphone/Load  

college students at business
Barangay Gil Montilla
is increasing

1. Socio-cultural factor

2. Technological factor

3. Economic factor

4. Environmental or
ecological factor

5. Political Factor

6. Demographic factor
opportunity sources.  Follow the given example.

Activity 5. Analyzing the Market Need 

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 To prevent the COVID 19 from spreading in the Philippines, airports, seaports,
and other point of entries all over the country have been provided with the necessary
equipment to identify the people coming from other places outside & within the country
carrying the virus.  However, there is no guarantee yet that the spreading of the virus can
now be controlled unless the people will follow the guidelines prescribed by the
Department of Health and Inter-Agency Task Force (IATF). What do you think are the
possible opportunities offered by this threatening situation? 
Compose a rap song or create a music video describing the possible products or
services you wish to offer to the community. Identify its advantages in selecting your
products or services, the customer requirements, and the market segment who will be
using your products or who will avail of your services. Timeframe of the presentation is a
3 to 4-minute presentation. 

Rubrics for Scoring 

Group Name: _______________________________ 

Direction: Students in assigned teams are to create the task that details the specific
tasks for this activity. The presentation may either be video, jingle-making depicting the
possible products or services.  

Criteria Exemplary Proficient Partially  Unsatisfactory

Proficient Points
Introductio (12-15) (8-11) (4-7)  (0-3)
n The introduction  The introduction The introductio The introduction 
(10 points) must be convincing must be clear n does does not
and must provide and  not create orient the
motivating content comprehensible a strong audience to what
that catches which evokes  sense of what will follow. 
the spectator/reader interest in the is to follow 
from the start of the  topic 
presentation and
keeps the audience’s 
attention.
Concept  (15-20) (10-14) (5-9) (0-4)
(20 Has a clear picture Has a clear Has Little effort has
points)  of what they picture of what brainstormed been spent on
are trying they are trying their concept brainstorming &
to achieve.   to achieve. Can but has a clear refining a
Adequate   describe what focus has concept.
description they are trying emerged. Unclear on the
of what they to do overall but Goals or final goals & how the
are trying to do   has trouble product not activity will be
describing how clearly defined. met.
their work will
contribute to the
final output
Content / (15-20) (10-14) (5-9) (0-4)
Organizati The content Information The content The content lacks
on (20 exceeds the presented does not information being
points) expected clear supports what present clear asked in the
statement on what is being sked stated activity.
is being asked in in the activity. information. Information is
the activity. The content is Some of the incorrect,
Information is presented in a supporting outdated, or

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 presented logically. progression of information incomplete.
ideas & does not seem
supporting to fit in the
information. activity & not
connected in
series.

Total Points/50 

V. REFLECTION

1. I learned that
___________________________________________________________________
___________________________________________________________________
_______________________________

2. I enjoyed most on
___________________________________________________________________
___________________________________________________________________
_______________________________

3. I want to learn more

____________________________________________________________________
____________________________________________________________________
________________________________

VI. ANSWER KEY 

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