Learning Area Applied Economics Grade Level 12

W7 Quarter Third (3 ) Quarter

rd Date

I. LESSON TITLE Principles, Tools and Techniques in Creating a

Business
II. MOST ESSENTIAL LEARNING The learner analyzes different principles, tools,
COMPETENCIES (MELCs) and techniques in creating a business
ABM_AE12-IIa-d9

III. CONTENT/CORE CONTENT Principles, Tools and Techniques in Creating a

Business and application of the SWOT/TOWS
analysis

Suggested
IV. LEARNING PHASES Timeframe
Learning Activities
A. Introduction 15 DAY 1
Panimula minutes Good day, welcome to another week!
In this lesson, you will be able to:

1. identify the different principles in creating business,

2. discuss the SWOT analysis techniques, and
3. explain the different steps in decision making

Given a chance to put up your own business, what business would

it be? What are your reasons in choosing this business?

B. Development 120 Pre-test: Let’s check your prior knowledge about the topic.
Pagpapaunlad minutes Directions: Rearrange the following jumbled letters to form words.
Write the answer in your notebook.

1. NESISSBU 6. RENEURENTPER

2. YENMO 7. FITPRO

3. LATICAP 8. THROWG

4. YRTSUDNI 9. COMEIN

5. TEKRAM 10. FANCENI

Ten principles that underlie the creation of the most successful

small business in the world.

1. Scalability

A business must be scalable for it to be successful. A small business

built rightly can grow 10,000 times its current size.

2. Big Ideas

A small business is no more effective than the idea upon which it is

built. The entrepreneur's vision is more important to the life of the
business than anything else.

3. Systems

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 Recognize that a small business is a System in which all parts
contribute to the success or failure of the whole. In this system,
everything must work together: from employee to president; from
equipment to resources.

4. Sustainability

A business must be dynamic--able to thrive through all economic

conditions, in all markets, providing meaningful, highly
differentiated results to all of its customers. Such differentiation is
key to survival.

5. Growth

All businesses need internal growth. A small business is a School in

which its employees are students, with the intention, will, and
determination to grow.

6. Vision

A small business must manifest the Higher Purpose upon which it

was seeded, the vision it was meant to exemplify, the mission it was
intended to fulfill.

7. Purpose

A small business is the fruit of a Higher Aim in the mind of the

person who conceived it.

8. Autonomy

A business is not part of the owner's life, but is, in fact, its own entity.
A small business possesses a life of its own, in the service of God, in
whom it finds reason.

9. Profitability

A small business is an economic entity, driving an economic reality,

creating an economic certainty for the communities in which it
thrives.

10. Standards

A small business creates a Standard against which all small

businesses are measured as either successful, or not. All small
businesses should aim to thrive beyond the standards that formerly
existed. (-Michael E. Gerber)

Top tools and techniques to make your business more efficient:

1. Use technology to speed up workflow

Small businesses should be looking to innovations in technology to

solve day-to-day inconveniences,

2. Shorter meetings fuel efficiency

Hold a brief meeting standing up, every morning, where each

person explains what they are going to work on that day.

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 3. Smart office space pays

Office space can involve a big outlay for SMEs, but it is also an
area where some smarter thinking can make a real difference,

4. Small changes

Big savings-one way of improving efficiency is for business owners

to make small changes to the way they handle their company's
expenses.

5. Manage staff expenses

Implement a corporate card program, which can help oversee

and manage employee expenses and provide high quality
management information.

6. Keep a firm grip on cash flow

Turnover is vanity, profit is sanity, and cash flow is reality", is an old

saying that business owners would do well to heed,

7. Stay connected on the move

The growing trend towards mobile and flexible working means that
employees are permanently connected and are increasingly
working on the go.

8. Use time more efficiently

Being more efficient is more about being than doing.

9. Get the best deal on insurance

Trawling insurance companies, either online or by telephone, to

find the best deal on business insurance can be extremely costly in
time.

10. Don't be lax with the legal

In the hectic process of starting up a business, the founders often

put off sorting out the legal matters until later, or not at all. (-Allison
Coleman)

Tools and Techniques in Decision Making of a Business

Decision matrix – A decision matrix helps you evaluate all the

options of a decision. When using the matrix, create a table with
all the options in the first column and all the factors that affect the
decision in the first row. Next, score each option and weigh which
factors are of more importance. A final score is then tallied to
reveal which option is the best.

T-Chart – This chart is used when weighing the pluses and minuses
of the options. It ensures that all the positives and negatives are
taken into consideration when making a decision. This is also
known as creating a pros and cons list.

Decision tree – This is a graph or model that involves

contemplating each option and the outcomes of each. Statistical
analysis is also conducted with this technique.

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 Multivoting – This is used when multiple people are involved in
making a decision. It helps whittle down a large list of options to a
smaller group to, finally, the eventual final decision.

Pareto analysis – This technique is useful when many decisions

need to be made. This helps prioritize which ones should be made
first by determining which decisions will have the greatest overall
impact.

Cost-benefit analysis – This technique is used when weighing the

financial ramifications of each possible alternative to determine
what makes the most sense from an economic perspective.

Conjoint analysis – This is a method used by business leaders to

determine consumer preferences when making decisions.

SWOT Analysis – SWOT stands for strengths, weaknesses,

opportunities and threats, which is exactly what this planning tool
assesses.

PEST Analysis – An acronym for political, economic, social and

technological, PEST can improve decision-making and timing by
analyzing external factors. This method considers present trends to
help predict future ones. (-Siri Hedreen)

C. Engagement 30 Activity 1
Pakikipagpalihan minutes Directions: In your notebook, write the advantages of each tool in
decision making of a business.

Tools in Decision Making Advantages

Decision matrix
T-Chart
Decision tree
Multivoting
Pareto analysis
Cost-benefit analysis
Conjoint analysis
SWOT Analysis
PEST Analysis
Activity 2
D. Assimilation 20 Directions: In your notebook, create a SWOT Analysis
Paglalapat minutes of your favorite fast-food chain during this time of Pandemic.
SWOT ANALYSIS
Name of Fast-food Chain:
Strengths Weaknesses

Opportunities Threats

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 V. ASSESSMENT
(Learning Activity Sheets for
Enrichment, Remediation or
Assessment to be given on
Weeks 3 and 6)
VI. REFLECTION
Prepared by: Renato L. Berosil Jr., SDO Imus City
20 Activity 3:
minutes Directions: In 3-5 sentences, express your thoughts about the
relevance of tools in decision making in a business? Write your
answer in your notebook.
15 In you notebook, write your personal insights about the lesson using
minutes the prompts below.
I learned that _________________.
I realized that ______________________.
I need to learn more about ________.
Checked by: Josephine P. Canlas, Adora G. Del
Mundo, Alfredo G. Buhain, Jr.