APPLIED ECONOMICS

Quarter 2 – Week 3 & 4

Learning Activity Sheet
Name: __________________________ Grade & Section: _____________

Lesson 1: Types of Industries

Lesson 2: Apply SWOT Analysis as a Tool in Evaluating a Business Opportunity
Businesses need to study various factors influencing the business. Internal and external factors are
needed to be considered to identify business opportunities and threats affecting the business. As you go
through lesson, you will learn about industry and environmental analysis and apply one of the most widely
used industry analysis- the SWOT Analysis as a tool in evaluating a business opportunity.

What’s In
In the previous lesson, you have learned about different business industries that you see in your
community and write type of products and services they produced. Now, read and answer the activity.
Activity: Pick three (3) businesses in your community and interview the business owners about their
business including the opportunity and challenges they encounter in starting up their business. Use the
format below.
Name of Business Products/ Opportunity that influenced in Challenges encountered
Services Offered starting the business
1.

2.

3.

What’s New
Direction: Read the short below and answer the given questions.
Every student knows National Bookstore especially booklovers. But do you know the owner of
National Bookstore? She is Socorro Ramos, the woman behind National Bookstore. Now, I want you to
read her story and answer the questions below.
Socorro Ramos or Nanay Coring as they simply called her as a young girl helped her grandmother
sell fruits at the local market in their home province. Life was hard and her mother decided to move to
Manila to find better opportunities. She attended a public school and took on many jobs during summer
vacation – from wrapping bubble gum to sewing buttons on shirts. After finishing high school, her family
did not have enough money to send her to college. She then worked as a salesgirl at a bookstore. It was there
where she met her would be husband, Jose.
They opened a stall shop in Escolta. They named it National Bookstore, after their cash register. But
things did not go uphill from there. In the 1940s, a strict censorship on books was implemented. Nanay
Coring had to put the books away and resort to selling soap, candies, and slippers. After the war, the whole
of Escolta was burned down. This did not dampen Nanay Coring and Jose’s souls. They opened another
small store. This time, they sold the books they had previously put away and whisky.
Gathering their earnings, the couple bought more school supplies and books. They slowly rebuilt
National Bookstore. They ventured into postcards and greeting cards. They also partnered with international
publishing houses and reprinted books at lower prices. Aside from selling products of well-known brands,
National Bookstore also now manufactures its own school supplies – Best Buy. Keeping up with the times,
they have teamed up with Kobo, a Canadian based e-book seller. National Bookstore is also visible on social
media and customers can even shop online via their website. Students, office workers, and everyone else
will find what they are looking for at National Bookstore. (Article by M. Tuvida)

1.What are the problems/challenges encountered by Nanay Coring in her business?

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2. What alternatives did Nanay Coring take when the business encountered problem?
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3. What were the business opportunities she selected?
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What is It
Industry and Environmental Analysis
In a book published by the Development Academy of the Philippines, how to prepare project feasibility
studies, it includes an industry analysis of the following important factors:
 Competition-Who are your competitors in the industry? What is the market share of these
businesses? It is very important that you know your competitors and be ready for them.
 Customers-Who will you sell your product to? The target market must be identified. Who exactly
will buy your products?
 Suppliers- Who are your suppliers, from whom one can source raw materials, intermediate products,
or even finished goods one intends to resell. A business may need one or more suppliers. It is
important to develop suppliers who are reliable in terms of quality of what they supply and their
dependability in coming up with your order.

In short, Industry Analysis is a tool that facilitates a company's understanding of its position relative to
other companies that produce similar products or services. Understanding the forces at work in the overall
industry is an important component of effective strategic planning. Industry analysis enables small business
owners to identify the threats and opportunities facing their businesses, and to focus their resources on
developing unique capabilities that could lead to a competitive advantage.

Environmental Analysis
 According to Robert Grant, author of “Contemporary Strategy Analysis” an environmental analysis
surveys the business landscapes to determine how external variables will affect its decision making.
 It is the careful study of various factors influencing the business. It is the process by which
organization monitor their relevant environment to identify opportunities and threats affecting their
business.
 It helps to identify opportunities, to plan and to take appropriate actions.

 It is the study of technological factor, political factors, global factor and so on. By carefully
The SWOT Analysis
SWOT is an acronym for strengths, weaknesses, opportunities, and threats. In short, SWOT
Analysis is a planning tool used to understand the strengths, weaknesses, opportunities, and threats involved
in a business or project.
A SWOT analysis can be carried out for a product, place, industry, or person. It involves specifying the
objective of the business venture or project and identifying internal and external factors that are favorable
and unfavorable to achieve that objective. Some authors credit SWOT to Albert Humphrey (2005), who led
a convention at the Stanford research institute (now SRI International) in the 1960s and 1970s using data
from Fortune 500 companies. However Humphrey himself does not claim the creation of SWOT, and the
origins remain obscure.
1. Strengths – This pertains to the characteristics of the business or project that gives advantage over
others. The primary technique for identifying your business strengths involves evaluating which
operations actually make money.
2. Weaknesses – A characteristic that place the business or project at a disadvantage relative to others.
Identify weaknesses by finding parts of your operation that cost you money.
3. Opportunities – These are the elements that the business or project could exploit to its advantage.
The technique for identifying opportunities encompasses finding markets, partnerships, products or
services that you actually can pursue.
4. Threats – These are the elements in the environment that could cause trouble for the business or
project. Owning a business means facing risk. Use the technique of including only threats that have
direct impact currently on your business or that seem as if they will impact you and your business in
the next five years.

Internal and External Factors of SWOT

The internal factors are the strengths or as weaknesses depending upon their effect on the
organization’s objectives. What may represent strengths with their respect to one objective may be
weaknesses (distractions, competition) for another objective. The factors may include all of the 4Ps – price,
product, promotion and place; as well as personnel, finance, manufacturing capabilities and so on.
The external factors may include macroeconomic matters, technological change, legislation, and
socio-cultural changes, as well as changes in the market – place or in competitive position. The results are
often presented in the form of a matrix.
SWOT analysis may also be used in pre – crisis planning and preventive crisis management. SWOT
analysis may also be used in creating recommendations during a viability study/survey.
How to Use SWOT Analysis as a Tool in Evaluating Business Opportunity

Learned it easy, use the SWOT Template.

HERE are TIPS that will help you in using the SWOT Template
STRENGTHS WEAKNESSES

Is the business in demand in your community? What could you improve?

Is the product new in your community? What should you avoid?
Is it accessible to all? What factors would cause the loss of your sales?
Will your community patronize it?

OPPORTUNITIES THREATS

Where are the good opportunities facing you? What obstacles do you face?
What are the interesting trends you are aware of? What is your competitor doing that you
What are the external factors that can increase should be worried about?
profits? Could any of your weaknesses threaten
your business?
What’s More
Activity: Identify the STRENGTH, WEAKNESSES, OPPORTUNITY and THREATS. Apply SWOT
Analysis by using the SWOT Template. Use the following listed words in the box.

a. Workers are well mannered, educated about books

b. Irrelevant location
c. E-books and e-readers eliminates needs for physical books
d. Manager has poor leadership skills
e. Visible on social media and customers can even shop online via their website.
f. One stop shop for office and school supplies
g. Pandayan and Orchids Bookstore are their competitors
h. Competitors offer rewards points and discounts for students and teachers
i. Partnership with international publishing house
j. Patronize by the booklovers and students

What I Have Learned

Directions: Unscramble the letter to come up with the correct word. Use the meaning in the clue.
Write your answer on the line.
__________________1. TSOW AANSISLY - A technique used to understand the strengths,
weaknesses, opportunities, and threats involved in a business or project.
__________________2. ERTORP HAELCIM - He introduced Competitive Forces Model.
__________________3. NGTHREST - An internal factor of SWOT Analysis.
__________________4. SREATTH - An obstacles face by the business.
_________________ 5. OTROPPUNIESTI - An external factor of SWOT Analysis that can increase
profitability.
What I Can Do
Performance Task. Choose a e-business or online business that you might like to do in the future and make
a SWOT Analysis to help you decide if your business is feasible.
 Criteria Points
Introduction/purpose/company background 10
SWOT Analysis 10
Presentation 5

Brief Introduction of the Business:

Brief introduction of the business and company’s background. State the purpose of the business
Strengths:
1. What does your business do well?
2. Is your business strong in its market? (do research and support with evidence)
3. Does your business have a strong sense of purpose and the culture to support that purpose?
Weaknesses:
1. What does your business do poorly?
2. What problems could be avoided?
3. Are there any potential financial difficulties?
Opportunities:
1. Are industry trends moving upward? (support with evidence, provide sources)
2. Do new markets exist for your products or services? (do research, support with evidence, provide sources)
3. Are there any new technologies you can exploit?
Threats:
1. Who are your competitors?
2. What are competitors doing well?
3. What obstacles do you face?
4. Are there troubling changes in your business environment such as technologies, laws, and regulations?
(do research, support with evidence, provide sources)
Assessment: Choose the letter of the best answer. Write the chosen letter on a separate sheet
of paper.
__________1. This economist states that environmental analysis surveys the business landscapes to determine how
external variables will affect its decision making.
A. Adam Smith C. John Maynard Keynes
B. Alfred Marshall D. Robert Grant
__________2. Which statement is not true about environmental analysis?
A. It is a process by which organization monitor their relevant environment.
B. It helps identifies opportunities, plan and does take action.
C. It identifies strengths and weaknesses of the business.
D. It does not study various factors affecting the business.
__________3. This objective of environmental analysis puts relevance that one must be aware of existing environment
specifically factors such as changes in economic, technological political and so forth.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
__________4. This objective of environmental analysis means to choose an alternate among the alternatives so that
the best alternates is selected and decided.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
__________5. This objective of environmental analysis examines opportunities and threats in the environment.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
 C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
__________6. This objective of environmental analysis puts outmost importance in the proper use of the company’s
resources to make the business successful.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
__________7. Proponent of SWOT Analysis since he led a convention at the Stanford Research Institute (now SRI
International) in the 1960s and 1970s using data from Fortune 500 companies.
A. Adam Smith C. John Maynard Keynes
B. Albert Humphrey D. Robert Grant
__________8. SWOT analysis is a technique use to evaluate business or project. The acronym for SWOT is________.
A. Suppliers, Workers, Overtime, Tool
B. Staff, Workers, Operation, Time
C. Strengths, Weaknesses, Opportunity, Threats
D. Supreme, Weaknesses, Opportunity, Threats
__________9. If a business has a strong support in the market, then your business has ___________.
A. Opportunity C. Weakness
B. Strength D. Threat
__________10. When you receive a proposal for new investor, then your business has _______.
A. Opportunity C. Weakness
B. Strengths D. Threat
__________11. In an online business, which of the following can be classified as an opportunity?
A. Well known blogger patronize your products.
B. Discover a new level of marketing that ca increase your sales
C. Customer are supportive
D. Difficulty in distributing products to rural areas
__________12. Proponent of Forces Competitive Model
A. Adam Smith C. John Maynard Keynes
B. Albert Humphrey D. Michael Porter
__________13. In an online business, which of the following can be classified as threats in the business?
A. Competitors have well known bloggers that patronize products
B. Free shipping fee to your valued clients
C. Customers have freebies
D. Financial difficulties
__________14. This pertains to the characteristics of the business or project that could endanger the profitability of
the business.
A. Opportunity C. Weakness
B. Strength D. Threat
__________15. In an online business, when your online site has thousand followers then your business has ________.
A. Opportunity C. Weakness
B. Strength D. Threat