Entrepreneurship - Module 3, Week 5&6

NAME: GRADE & SECTION:
TEACHER’S NAME: CHRISTY E. PARINASAN
Senior High School Department

S.Y. 2021-2022
2nd Semester
ENTREPRENEURSHIP Subject: Entrepreneurship
2 ND SEM/ MIDTERM, Module Number 4, Period Covered: Feb. 7-14, 2022
Subject
vGrade Level: Quarter/Term: Date: Week: Module Number:
Classification:
12 APPLIED MIDTERM Feb. 7-14,2022 Week 7&8 4
Most Essential Learning

Topic/s Content Standard/s: Performance Standards Learning Objectives
Competencies (MELCs)
At the end of the lesson, the students can:
 Identify entrepreneurial opportunities;

 Differentiate the five forces competing
within the business industry;
 Analyze the market need; and
Recognize a potential market
 List examples of similar products to
The learner independently offer to the consumers in the absence
The learner demonstrates  Analyze the market or with his/her classmates of the other product.
understanding of concepts, need presents an acceptable
underlying principles, and  Determine the possible detailed business plan.
RECOGNIZE A processes of developing a product/s or service/s that will
Learn and
POTENTIAL business plan. meet the need;`
MARKET  Screen the proposed
solution/s based on
understand
viability, profitability, and
customer requirements; and
Select the best product or
service that will meet the
the sources of
market need.
opportunities
Subject: Entrepreneurship
for business.
 Determine
the essentials
in the
entrepreneur’s
opportunity
seeking.
 Identify
market
problems and
Page | 2
propose
potential
products or
services that
will
meet the
market needs.
 Know the
problem in
which a
Page | 3
business
opportunity
arises from.
 Identify,
screen and
propose
solutions to
meet the
problem.
 Select the
Page | 4
best product
or service
that will
meet the
market’s
need with a
consideration
of generating
profit
Learn and
Page | 5
understand
the sources of
opportunities
for business.
 Determine
the essentials
in the
entrepreneur’s
opportunity
seeking.
Page | 6
 Identify
market
problems and
propose
potential
products or
services that
will
meet the
market needs.
Page | 7
 Know the
problem in
which a
business
opportunity
arises from.
 Identify,
screen and
propose
solutions to
Page | 8
meet the
problem.
 Select the
best product
or service
that will
meet the
market’s
need with a
consideration
Page | 9
of generating
profit
Learn and
understand
the sources of
opportunities
for business.
 Determine
the essentials
in the
Page | 10
entrepreneur’s
opportunity
seeking.
 Identify
market
problems and
propose
potential
products or
services that
Page | 11
will
meet the
market needs.
 Know the
problem in
which a
business
opportunity
arises from.
 Identify,
Page | 12
screen and
propose
solutions to
meet the
problem.
 Select the
best product
or service
that will
meet the
Page | 13
market’s
need with a
consideration
of generating
profit
Values Integration: Self-reliance

Google Classroom Code: 12G/12P/12I :
12 Stewardship:
12 Excellence:
Page | 14
TOPIC/S: RECOGNIZE AND UNDERSTAND THE MARKET
Let’s check first what you already know.

True or False. On the space provided before the
number, write T if the statement is
true and F if the statement is false.
_____ 1. An entrepreneur enters a business because of
its profitability.
_____ 2. New business ideas provide business
opportunities.
Page | 15
_____ 3. The entrepreneurial process starts with

identification of entrepreneurial
opportunities.
_____ 4. Not all changes in the external environment
provides business opportunities.
_____ 5. Discovery and advancement in the use of
technology are additional good
sources of business opportunities.
_____ 6. Interest and hobbies of the people are
possible good sources of
Page | 16
entrepreneurial ideas.
_____ 7. The industry environment of the business is
under technological discovery
and advacement sources of opportunities.
_____ 8. The variables in the physical environment
include the economic forces.
_____ 9. Entrepreneurial heart flame refers to the
ability of the entrepreneur to
sense without using the five senses.
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____ 10. Entrepreneurial mind frame permits the

entrepreneur to see things in a very
positive and optimistic light.
_____11. The business operates in the industry
environment.
____ 12. Opening a Halo – halo business during
summer season is ideal.
____ 13. Environmental scanning is conducted only
when a new business is opened.
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____ 14. When the barriers to the competitive forces

are high, the effect to the growth
of the business is likewise high.
_____15. Entrepreneurs need not observe and
evaluate the priorities of the
government
Let’s check first what you already know. _____ 7. The industry environment of the business is under technological discovery
True or False. On the space provided before the number, write T if the statement is and advancement sources of opportunities.
true and F if the statement is false. _____ 8. The variables in the physical environment include the economic forces.
_____ 9. Entrepreneurial heart flame refers to the ability of the entrepreneur to sense
_____ 1. An entrepreneur enters a business because of its profitability. without using the five senses.
_____ 2. New business ideas provide business opportunities. ____ 10. Entrepreneurial mind frame permits the entrepreneur to see things in a very
_____ 3. The entrepreneurial process starts with identification of entrepreneurial positive and optimistic light.
opportunities. _____11. The business operates in the industry environment.
_____ 4. Not all changes in the external environment provides business ____ 12. Opening a Halo – halo business during summer season is ideal.
opportunities. ____ 13. Environmental scanning is conducted only when a new business is opened.
_____ 5. Discovery and advancement in the use of technology are additional good ____ 14. When the barriers to the competitive forces are high, the effect to the
sources of business opportunities. growth of the business is likewise high.
_____ 6. Interest and hobbies of the people are possible good sources of _____15. Entrepreneurs need not observe and evaluate the priorities of the
entrepreneurial ideas. government.
Page | 19
DISCUSSION
Entrepreneurial Ideas
The creation of an entrepreneurial idea leads to
the identification of
entrepreneurial opportunities, which in turn results in
the opening of an entrepreneurial
venture.
The entrepreneurial
Entrepreneurial Ideas
The creation of an entrepreneurial idea leads to the identification of

entrepreneurial opportunities, which in turn results in the opening of an
process of creating a
entrepreneurial venture.
Page | 20
new venture is School, 2017, C&E

presented in the publishing page 46,
diagram below. (Nick L. Aduana, 2017).
Aduana, Etrepreneurship The entrepreneurial process of creating a new venture is presented in the
diagram below. (Nick L. Aduana, Etrepreneurship in Philippine Setting for Senior
High School, 2017, C&E publishing page 46, Aduana, 2017).
in Philippine Setting for

Senior High
Figure 1. The
Entrepreneurial Process
of Creating New Venture
Page | 21
Essentials in entrepreneur to see things

Entrepreneur’s in a
Opportunity – Seeking very positive and
These are the basic optimistic way in the
foundation that the midst of difficult
entrepreneur must have situation. Being a risk -
in seeking taker,
opportunities: an entrepreneur can find
Entrepreneurial mind solutions when problems
frame. This allows the arise.
Figure 1. The Entrepreneurial Process of Creating New Venture Essentials in
Entrepreneur’s Opportunity – Seeking
Page | 22
These are the basic foundation that the entrepreneur must have in seeking
opportunities: some have noticed the
emerging trends and
Entrepreneurial mind frame. This allows the entrepreneur to see things in a very
positive and optimistic way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solutions when problems arise.
Entrepreneurial heart flame. Entrepreneurs are driven by passion; they are

attracted to discover satisfaction in the act and process of discovery. Passion is the
great desire of an entrepreneur to achieve his/her goals.
patterns for business
Entrepreneurial gut game. This refers to the ability of the entrepreneur of being
intuitive. This also known as intuition. The gut game also means confidence in one’s
self and the firm belief that everything you aspire can be reached.
opportunities. While
Sources of Opportunities others are trying to find
There are many ways out their target market.
to discover The following are some
opportunities. Looking sources of
at the big picture, opportunities:
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1. Changes in the environment refers to the

environment physical environment,
Entrepreneurial ideas societal environment, and
arise when changes industry
happen in the external environment where the
environment. business operates.
A person with an 1.1 The Physical
entrepreneurial drive environment includes
views these changes Sources of Opportunities
There are many ways to discover opportunities. Looking at the big picture,
some have noticed the emerging trends and patterns for business opportunities.
positively. External
While others are trying to find out their target market. The following are some sources
of opportunities:
1. Changes in the environment
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2. Technological
Entrepreneurial ideas arise when changes happen in the external
environment.
A person with an entrepreneurial drive views these changes positively. External
environment refers to the physical environment, societal environment, and industry
discovery and
environment where the business operates.
1.1 The Physical environment includes
a. Climate – the weather conditions.
b. Natural resources – such as minerals, forests, water, and fertile land that
wild.
occur in nature and can be used for economic gain.
c. Wildlife – includes all mammals, birds, reptiles, fish, etc., that live in the advancement
1.2 The Societal environment includes the various forces like
a. Political forces – includes all the laws, rules, and regulations that govern
business practices as well as the permits, approvals, and licenses necessary
A person with
to operate the business.
b. Economic forces – such as income level and employment rate.
c. Sociocultural forces – customs, lifestyles and values that characterize a
entrepreneurial interest
sees possibility of
society.
d. Technological environment – new inventions and technology innovations.
1.3 The Industry environment of the business includes:

a. Competitors
b. Customers
c. Creditors
business opportunities
in any new discovery or
d. Employees
e. Government
f. Suppliers
For example, one factor in the physical environment that can easily change is the
because of the use of

climate. The temperature is very high during summer but very low during the rainy
season. An individual with entrepreneurial drive can be extremely imaginative and
inventive in identifying opportunities. He/she can venture on a business that responds
to the needs of the people during summer and rainy season .
latest technology.
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For example, an
For example, an individual with knowledge in repair and installation of
a machine engine discovers additional engine parts that considerably reduce
fuel consumption.
individual with 3. Government’s thrust,

knowledge in repair and programs, and policies
installation of a The priorities, projects,
machine engine programs, and policies of
discovers additional the government are also
engine parts that good
considerably reduce fuel sources of ideas.
consumption. For example, the use of
2. Technological discovery and advancement
A person with entrepreneurial interest sees possibility of business
opportunities in any new discovery or because of the use of latest technology.
firecrackers to celebrate
Page | 26
New Year’s Eve is a new product that will

strictly serve as a substitute for
prohibited. People firecrackers.
without entrepreneurial 4. People’s interest
interest will view the The interest, hobbies,
ordinance as a plain and preferences of
restriction. However, for people are rich sources
an entrepreneur, it is a of
business opportunity to entrepreneurial ideas, like
come up with the increasing number of
Page | 27
Internet Cafés at present who has worked in a

could particular
lead to the strong field may lead to the
attachment of young opening of a related
people to computers. business enterprise.
For example, an
5. Past experiences accountant who has
The expertise and skills learned the appropriate
developed by a person accounting and
Page | 28
management skills and It is also known as the

techniques in a “five forces of
prominent accounting competition”. An industry
firm can start his/her environment is
business venture by a competitive
opening his/her own environment. Regardless
accounting firm. of what product or
Forces of Competition services you have,
Model competition is always
present.
Page | 29
Competition – it is the act These are the five forces

or process of trying to get competing within the
or win something. industry:
For example, the prices  Buyers
are lower when there is  Potential new entrants
a competition among  Rivalry among existing
the firms
stores.  Substitute products
 Supplier
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the government are also
good sources of ideas.
Page | 30
The buyers are the ones

For example, the use of firecrackers to celebrate New Year’s Eve is strictly
prohibited. People without entrepreneurial interest will view the ordinance as a plain
restriction. However, for an entrepreneur, it is a business opportunity to come up with
a new product that will serve as a substitute for firecrackers.
4. People’s interest
The interest, hobbies, and preferences of people are rich sources of
that pay cash in exchange
for your goods and
entrepreneurial ideas, like the increasing number of Internet Cafés at present could
lead to the strong attachment of young people to computers.
5. Past experiences
services.
The expertise and skills developed by a person who has worked in a
particular field may lead to the opening of a related business enterprise.
For example, an accountant who has learned the appropriate accounting and
management skills and techniques in a prominent accounting firm can start his/her
business venture by opening his/her own accounting firm.
Forces of Competition Model

One example is the
influence of the price or
It is also known as the “five forces of competition”. An industry environment is
a competitive environment. Regardless of what product or services you have,
competition is always present.
Competition – it is the act or process of trying to get or win something.
For example, the prices are lower when there is a competition among
the stores.
These are the five forces competing within the industry:
in the bargaining strategy.
The buyer has
 Buyers
 Potential new entrants
 Rivalry among existing firms
 Substitute products
 Supplier
a strong and magnified
. Buyers
bargaining power. The
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threat of its bargaining c. The cost of switching

power will be the supplier cost is
less if the following minimal.
factors are noticed: d. The product
a. There are several represents a high
suppliers available in the percentage of the buyer’s
market. cost.
b. The buyer has the e. The buyer purchases
potential for backward large portions of the
integration.
Page | 32
seller’s product or example, in the level of

services. capital
2. Potential New requirements, if the
Entrants business requires huge
A new entrant is defined capital, new entrants
as companies or should decline to join
businesses that have the the business. This gives a
ability to threat to the business.
penetrate or enter into a This can be noticed if
particular industry. For there is the
Page | 33
presence of the following e. High cost of product

factors: differentiation
a. Substantial capital f. High switching cost
requirement 3. Rivalry among
b. Strict government Existing Firms
policy Rivalry is a state or
c. Difficulty in accessing situation wherein
distribution channels business organizations
d. Economies of scale are competing
Page | 34
with each other in a rivalry among existing

particular market. For firms is characterized to
example, it depends on the following factors:
the marketing a. Diversity of rivals
strategy of your b. Number of competing
competitor, like giving firms
freebies and special c. Characteristics of the
offers. The intensity of products or services
d. Increased capacity
e. Amount of fixed costs
Page | 35
f. Rate of industry
c. Characteristics of the products or services
d. Increased capacity
e. Amount of fixed costs
f. Rate of industry growth
growth
4. Substitute Products
Substitute is one that serves the same purpose as another product in
the market. For example, the consumers decide to use margarine as a
substitute for butter. In case the price of butter increases, preferably the consumer
1. Buyers will gradually switch to margarine.
The buyers are the ones that pay cash in exchange for your goods and A substitute product can give a big threat in the industry environment if the following
services. One example is the influence of the price or in the bargaining strategy. The factors are noticed:
buyer has a strong and magnified bargaining power. The threat of its bargaining a. Switching cost is low
power will be less if the following factors are noticed: b. Preferences and tastes of the customers easily change
a. There are several suppliers available in the market. c. Product differentiation is highly noticeable
b. The buyer has the potential for backward integration. d. The quality of substitute products dramatically improves
c. The cost of switching the supplier cost is minimal. e. The price of substitute product is substantially lower
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services. 5. Suppliers
2. Potential New Entrants The Suppliers are the one that provide something that is needed in
A new entrant is defined as companies or businesses that have the ability to business operations such as office supplies and equipment. In an example where
penetrate or enter into a particular industry. For example, in the level of capital supplies and services being offered is unstable the intensity of the threat is strong in
requirements, if the business requires huge capital, new entrants should decline to this kind of the competitive force in the industry. This can be noticed if there is the
join the business. This gives a threat to the business. This can be noticed if there is presence of the following factors:
the presence of the following factors: a. The supplier has the ability for forward integration
a. Substantial capital requirement b. Suppliers in the industry are few, but the sales volume is high
b. Strict government policy c. Substitute products are not readily available in the market
c. Difficulty in accessing distribution channels d. The switching cost is very high
d. Economies of scale e. The product or service is unique
e. High cost of product differentiation
f. High switching cost
3. Rivalry among Existing Firms
Rivalry is a state or situation wherein business organizations are
competing with each other in a particular market. For example, it depends on the
marketing strategy of your competitor, like giving freebies and special offers. The
intensity of rivalry among existing firms is characterized to the following factors:
a. Diversity of rivals
b. Number of competing firms
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WORD HUNT
Direction: Look for words in the puzzle related to the topic may it be horizontally,
vertically, or diagonally. Write the words on the space provided below.
1.______________________ 6. _________________________
2.______________________ 7._________________________
3.______________________ 8.__________________________
4. ______________________ 9.__________________________
5._______________________ 10.__________________________
or selling goods or providing services in exchange of money is called

Business industries offer products and services. The activity of making, buying, business.
Page | 37
Product is something that is made or grown to be sold or use, or something that is opportunities, such as entrepreneurial mind frame, heart flame and gut
result of a process. Services are those intangible products where there is a skill game.
Involved and has a value.  External environment - refers to the physical environment, societal
environment, and industry where the business operates.
REMEMBER THESE KEY POINTS:  Government - refers to the local government (municipality, city, or provincial)
or the national government and its branches.
 Buyers – are the ones who pay cash in exchange for your goods and  New entrants – the one who enters something.
services.  Opportunity – seeking – the process of considering, evaluating, and
 Competition – it is the act or process of trying to get or win something. pursuing market-based activities that are accepted to be beneficial for the
 Entrepreneurial process - can be defined as the steps taken in order to business.
begin a new enterprise. It is a step-by-step method one has to follow to set  Rivalry – is a state or situation in which people or groups are competing with
up a business. each other.
 Entrepreneurial ideas - an innovative concept that can be used for financial  Sources of opportunity - can be attained by assessing and looking at
gain that changes in the environment; technological discovery and advancement;
is usually centered on a product or service that can be offered for money. government’s thrust, programs, and policies; people’s interest, and past
 Essentials of entrepreneur’s opportunity – seeking – these are the experiences.
basic foundation that the entrepreneur must have in seeking  Substitute – anything that takes the place or function of another.
 Suppliers – are the ones who provide something that is needed or wanted.
Page | 38
RECOGNIZE AND UNDERSTAND THE MARKET
ACTIVITY 1 ACTIVITY 2
COMPLETE ME
Complete the table below by supplying it with products that you consider similar.
Write the product and not the brand in their respective columns. Then describe and
differentiate its characteristics and uses.
POST ASSESSMENT
Direction: Encircle the letter of the correct answer.

1. It is the process of considering, evaluating, and pursuing market-based activities
that are believed to be advantageous for the firm.
A. Opportunity – seeking C. Opportunity – screening
B. Opportunity – seizing D. Sources of opportunity
2. This is essential to opportunity – seeking which allows the entrepreneur to see
things in a positive and optimistic light in the midst of crisis or difficult situations.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
3. It is the ability of entrepreneur to sense without using the five senses, also known
as intuition.
4. One of the essentials of entrepreneur’s opportunity – seeking that refers to the
driven passion of an individual.
Page | 39
5. What variable of societal environment includes income level and employment
rate?
A. Economic forces C. Political forces
B. Sociocultural forces D. Technological forces
For questions 6 and 7 refer to the following statements:

A. Preferences and tastes of the customers easily change.
B. The buyer has the potential for backward integration. DISCOVER ACTIVITY DEVELOPMENTAL ACTIVITY
C. The cost of switching the supplier cost is minimal.
D. Product differentiation is highly noticeable.
6. Which are the factors of the substitute product that pose a great threat in the
industry environment?
A. A, B, C, D C. A and D
B. A and C D. B and C
7. Which are the factors that influence the buyer to have a less threats because of
the bargaining power?
A. A only C. A and D
B. A and C D. B and C
8. They are the ones who pay cash in exchange for your goods and services.
A. Buyers C. Sellers
B. Competitors D. Suppliers
9. The intensity of rivalry among existing firms is characterized to the following
factors except one:
A. Diversity of rivals
B. Number of competing firms
C. Characteristics of the products or services
D. The product represents a high percentage of the buyer’s cost
10. The following are the forces competing within the industry except one:
A. Potential new entrants and Substitute Products
B. Buyers and Suppliers
C. Rivalry among Existing Firms
D. Needs and Wants
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Entrepreneurship - Module 3, Week 5&6

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NAME: GRADE & SECTION:

TEACHER’S NAME: CHRISTY E. PARINASAN

Senior High School Department

Most Essential Learning

 Identify entrepreneurial opportunities;

Values Integration: Self-reliance

Let’s check first what you already know.

_____ 3. The entrepreneurial process starts with

____ 10. Entrepreneurial mind frame permits the

____ 14. When the barriers to the competitive forces

The creation of an entrepreneurial idea leads to the identification of

new venture is School, 2017, C&E

in Philippine Setting for

Essentials in entrepreneur to see things

Entrepreneurial heart flame. Entrepreneurs are driven by passion; they are

1. Changes in the environment refers to the

1. Changes in the environment

1.3 The Industry environment of the business includes:

because of the use of

individual with 3. Government’s thrust,

New Year’s Eve is a new product that will

Internet Cafés at present who has worked in a

management skills and It is also known as the

Competition – it is the act These are the five forces

The buyers are the ones

Forces of Competition Model

threat of its bargaining c. The cost of switching

seller’s product or example, in the level of

presence of the following e. High cost of product

with each other in a rivalry among existing

or selling goods or providing services in exchange of money is called

RECOGNIZE AND UNDERSTAND THE MARKET

Direction: Encircle the letter of the correct answer.

For questions 6 and 7 refer to the following statements:

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