Organization and Management (ABM 001)

Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

LESSON TITLE: Role of Business in Relations to the Economy Materials: 1.

and Phases of Economic Development
Laptop, projector, pen, paper,
SAS
Lesson Objectives:
At the end of this day, I should be able to:
References
1. Identify what are the foundation of business Fundamentals of Management
Pages 5-6, Rodriguez, R / Echavis,
2. Determine the distinct economic system of the business
E.,Diwata Publishing, Manila
3. Determine the phases of economic development
4. Discuss the major theory in phases of economic Management Theory and Practice,
development Pages 6 – 7, Cole,G.A/ Kelly,P,
Cengage Learning, Australia

1.

“Try making a visual (comic strip, infographic, sketch, etc.) about the concepts you just learned.”

Introduction:
Great Day! To my future entrepreneurs and managers. Today we will know the role of business in the
economy. In any market economy, business plays a huge role. Business is the engine of an
economy. Business provides jobs that allow people to make money and goods and services that people can
buy with the money they make. Without business, the economy would be very inefficient and/or very primitive.
In this module also we will know the different phases of economic development.

A. LESSON PREVIEW/REVIEW

What do you think is the biggest contribution of VECO in Cebu ? Identify 10 biggest contribution of the
company in the business industry.

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 Organization and Management (ABM 001)
Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Activity 1: What I Know Chart,

I guess you are now ready to list the things you have know about management. Try answering the
questions below by writing your ideas under the first column What I Know. It’s okay if you write key
words or phrases that you think are related to the questions. Go on!

What I Know Questions: What I Learned (Activity 4)

1. What is the role of business in
relation to economy?
2. What are the examples of
economic development?
3 What is business?
In any
market economy, business
plays a
huge role. Business is the
engine of
an economy. Business provi
des jobs that allow people to
make money and goods and
services that people can
buy with the money they
make. Without business,
the economy would be very
inefficient and/or very
primitive.
An example of economic
development is when a
country begins to produce
more products and increase
its overall wealth.

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

B.MAIN LESSON

Activity 2: Content Notes

Business defined :
Business in general term, which includes all profit - seeking activities of enterprises that provide goods and services
necessary to an economic system. In the hope of making profits, businesses produce and market goods and services. In
satisfying satisfying customer needs and wants, the firm will generate sales revenues which make profits possible.

Business firms produce tangible goods like, pens, clocks, chairs, camera and others. intangible products like medical
care, entertainment, travel.

Profit defined :
Profit is the money that remains after a firm deducts its expenses related to producing and marketing goods or services
from its revenues. The firm receives money arising out of sales, commissions and the like. profit is the primary reason why
people go into business, business that do not make profits are bound for extinction.

Economic Dimension
The economic dimension of a business organization is the overall health and vitality
of the economic system in which the organization operates. important factors to consider
for business are general economic growth, inflation, interest rates, and unemployment.

PHASES OF ECONOMIC DEVELOPMENT

Economic development is the term that economists, politicians and others have used frequently in 20th Century. this has been in
existence in the West for centuries.
- modernization
- westernization
- industrialization
are the terms used in economic development and has a direct relationship with the environment. the development is closely
bound up with the evolution of Capitalism and Feudalism.
Economic growth benefits human development, individual use heightened income which increase expenditure, health, education,
DEVELOPMENT INDICATOR
infrastructure system and economic growth.
1. GDP per capita - gross domestic product divided by the mid year population
2. income level of local community - capacity to buy and purchase goods and services
3. means of how local people have access to education -
4. existence of modern transportation- availability to access and move to places

ECONOMIC ENVIRONMENT
There are ( 3 ) aspects of economic environment in particular that managers anticipate the kinds of economic challenges.
1. Economic system - in a mature market economy, key element is freedom of choice. consumers are free to make
decision about which products they prefer to purchase.
2. Natural Resources - A broad range of resources is available in different countries, enormous natural resources and
materials that are vital to the development of a modern economy.
3. Infrastructure
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is the propertypowerofplants, railroads,EDUCATION
PHINMA highways, communications system, air fields and commercial system of
the country.
 Organization and Management (ABM 001)
Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

The Business Entrepreneur and Alternative Economic Systems

3 Distinct Economic System

Capitalism Communism Socialism

a political theory derived from Karl a political and economic theory of

an economic and political system
in which a country's trade and
industry are controlled by private
owners for profit, rather than by
the state.
Marx, advocating class war and
leading to a society in which all
property is publicly owned and
each person works and is paid
according to their abilities and
needs
social organization which
advocates that the means of
production, distribution, and
exchange should be owned or
regulated by the community as a
whole.

Activity 3: Skill-building Activities

A. Identify 2 big companies having operations in your locality ? Determine each of the
company’s economic contribution in your region. Identify the created impact and
opportunities with their business presence.

B. Identify one country and write at least 5 views on how the business practices are put into a
system. Does it relates to one of the economic systems cited ? why ?

Activity 4: What I Know Chart,

In activity No. 1 You answer what you know about the topic. Now, that you have a clearer understanding of
today’s concept, time to complete the chart by answering the last column of this activity This time write what
you have learned.

What I Know Questions: What I Learned (Activity 4)

1. What is the role of business in In any
relation to economy? market economy, business
plays a

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

huge role. Business is the

2. What are the examples of
economic development?
3 What is business?
engine of
an economy. Business provi
des jobs that allow people to
make money and goods and
services that people can
buy with the money they
make. Without business,
the economy would be very
inefficient and/or very
primitive.
An example of economic
development is when a
country begins to produce
more products and increase
its overall wealth.

Activity 5: Check for Understanding

Instruction: Write T if the statement is True and F if the statement is False.

1. Profit is the money that remains after a firm deducts its expenses related to producing and
marketing goods or services from its revenues. ( T )
2. Business means all profit - seeking activities of enterprises that provide goods and services
necessary to an economic system. (T)
3. Business firms produce tangible goods like, medical care, insurances, , entertainment and others.
(F)
4. GDP means Gross Domestic Package (F)
5. Profit is the primary reason why people go into business, business that do not make profits are
bound for extinction. (T)

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

C. LESSON WRAP-UP

Activity 6: Thinking about Learning

You have reached the end of this lesson! Congratulations and thank you for working hard to learn this lesson.
As you end this lesson, put a check mark beside the learning target if you have learned it very well.

Self- Evaluation on Achieving the Learning Target

 I can identify what are the foundation of business ________

 I can determine the distinct economic system of the business______
 I can determine the phases of economic development______
 I can discuss the major theory in phases of economic development_____

FAQs
1. What are the economic factors of development?

Economists generally agree that economic development and growth are influenced by four factors: human
resources, physical capital, natural resources and technology. Highly developed countries have governments
that focus on these areas.

2. How can we develop economic development?

To increase economic growth

1. Lower interest rates – reduce the cost of borrowing and increase consumer spending and investment.
2. Increased real wages – if nominal wages grow above inflation then consumers have more disposable to
spend.
3. Higher global growth – leading to increased export spending

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #8

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

KEY TO CORRECTIONS
{*Teacher lists answers to activities #3 (+) and #5
** Activity no. 5

TEACHER-LED ACTIVITIES
{These are standard instructions for teachers.}
A. If this session happens to be a face-to-face, in-classroom learning session:
1) Collect completed work in the SAS.
2) Allocate your contact time with students to individual or small group mentoring, monitoring, and
student consultations.
3) You may administer summative assessments (quizzes, demonstrations, graded recitation,
presentations, performance tasks) during face-to-face sessions.
4) You may also explore supplementary activities that foster collaboration, provided that social
distancing is observed.
5) You may provide supplementary content via videos, etc.

It is important to remember that students who cannot make it to face-to-face, in-classroom sessions for
health and safety reasons, should not be given lower grades for missing in-class activities and should
be given alternative summative tests.

B. If this session happens to be an at-home learning session for the students:

1) Check and grade collected SAS and other input from students.
2) Schedule phone calls/virtual calls/virtual chats to individual students or small groups of students to
monitor work, provide guidance, answer questions, and check understanding.

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