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APPLIED ECONOMICS
QUARTER 2 – Module 3

IDENTIFICATION OF BUSINESS
OPPORTUNITIES

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INTRODUCTION (What I Need to Know)

Every business organization is a part of the business environment, within which it operates.
No entity can function in isolation because there are many factors that closely or distantly
surrounds the business, which is known as a business environment. The micro environment
affects the working of a particular business only, to which they relate to, while the macro
environment affects the functioning of all the business entities, operating in the economy. Hence,
a proper understanding of the external factors is crucial for the successful conduct of marketing
and communication plans.

(MELC) Most Essential Learning Competency

Apply business principles, tools and techniques in participating in various types of
industries in the locality.

At the end of this module, you should be able to:

a. identify the importance of business and industry in the locality;
b. appreciate the different services/products of business in the locality;
c. draw different products in the locality.

DISCUSSIONS AND ACTIVITIES (What is It)

COMPETITIVENESS AND EFFICIENCY

The fair ranking of the Philippines in world competitiveness means that the country’s
industries are yet on their way from the factor-driven to the efficiency-driven stage. In the Global
Competitiveness Report 2013-2014 of the World Economic Forum (WE), the country ranked
number 58 among the 148 countries on its list. Factors allowing the free flow of products and
resources are already in place such as institutions, infrastructure, stability and basic education
and health. However, our industries have yet to attain the efficiency enabled by higher
education/skills, technological readiness, product/labor market competition. For example, we
have yet to design and produce the First Filipino car (includes engine, transmission) following in
the footsteps of countries like Malaysia and China. Much less are we even close to the innovative
stage driven by business sophistication and innovative ideas. This stage cuts across standards to
produce sophisticated products like the electric-powered cars of Japan and the United States.
Figure 3.6 outlines what makes a country’s industries globally competitive and responsive to both
local and global needs. (Dinio, Villasis 2017)
Fig.3.6

Source: World Economic Forum (WEF)

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  Agriculture and Fishery – In a global setting, these industries are the least competitive
despite the country’s natural resources mainly due to human factors affecting efficiency.
The uncontrollable nature (e.g., typhoons, drought, etc.) occasionally disrupts production
and causes damage to crops.
 Manufacturing – The manufacturing industry is hardly competitive even in the ASEAN
region due to limitations of size and structural support. Likewise, these limitations smother
manufacturing efficiency especially of the technology and skills to grow and compete in a
global context.
 Trade and Transport – The trade industry supported by the transport industry is also
handicapped by the limited size of its establishments.
 International Trade – The assembled parts are imports from subsidiaries in the global
networks of the same multinational corporations (e.g., Intel, Texas Instrument). Almost all
imports are semi-final and final manufacturers in the absence of intermediate product
industries.
 Tourism – Tourism is an emerging industry as expenditures of foreign tourists on related
services such as hotels and restaurants, transport and entertainment.

Small Business Opportunities

Small farmers and fishermen can tap urban consumer markets and distribution centers
with cooperative efforts to minimize the limitations of size and inadequate farm-to-market
facilities. They can engage in the cooperative activities not only of sharing/collectively owning
resources to preserve freshness or delay perishability of goods at lower cost. Collectively, they can
also gain direct and faster access to market networks to command higher products prices as well
as cheaper production input. Let alone that they access credit for expansion on collective
credibility. However, more government provisions of farm-to-market infrastructure like concrete
road network can boost the efficiency of cooperative market activities even of farmers and
fishermen in the hinterland.
The country’s growing population also affords cooperating micro enterprises in the
manufacturing, trade and transport of new consumer markets for growth and expansion. More
micro manufacturers of light consumer products can find new markets in growing industrial and
urban areas like CALABARZON, away from overcrowded Metro Manila. Complementary and
support industries are already gravitating toward these growing centers, let alone the
concentration of government infrastructures and services promoting market efficiency. Thus, new
micro trade and transport enterprises can complement or support the growing number even of
light of manufacturers moving to these growth centers. To minimize the limitation of size, micro
enterprises can form associations for inter-industry coordination and timely availability of
services. In addition, manufacturer’s association can improve market access on competitive terms.
But more government provisions of physical infrastructure like concrete road network can greatly
improve said inter-industry coordination and market access.
In tourism industry, micro business can help to maximize tourist arrivals and destinations
with timely support and substitute services for big establishments strengthened by cooperative
efforts. Car transport services can support hotel accommodations while lodging houses with
restaurants can serve as substitutes in the latter’s absence. Micro enterprises can also form
associations for timely coordination with big establishments and complementation among
themselves. For the meantime, tourism and related services can concentrate operation in major
tourist destinations such as Metro Manila and Western and eastern Visayas. However, better road
networks can pave the way for the development of other tourist destinations and services, which
include transport. (Dinio, Villasis 2017)

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ACTIVITY 1. TOPSmart!
Directions: Enumerate top priorities in putting up a business and cite an example on how it works
in the market. Write your answers in your answer sheet.

1. ____________________________ 6. ___________________________

2. ____________________________ 7. ___________________________

3. ____________________________ 8. ___________________________

4. ____________________________ 9. ___________________________

5. ____________________________ 10. __________________________

ACTIVITY 2. HIGHFour!
Directions: Name four (4) neighboring barangays in your municipality and write two (2) popular
products/services. Write your answer in your answer sheet.

Barangay 1 Barangay 2 Barangay 3 Barangay 4

____________ _____________ ______________ _______________

ACTIVITY 3. FeelsRIGHT!
Directions: In ACTIVITY 2, choose the best product/service for each of the barangays and
describe the uniqueness of the product in terms of design and materials used. Write
your answers in your answer sheet.

Barangay 1: _______________________
Product/Service: _____________________
__________________________________________________________________________________
__________________________________________________________________________________

Barangay 2: ________________________
Product/Service: _______________________

__________________________________________________________________________________
__________________________________________________________________________________

Barangay 3. _________________________
Product/Service: _______________________

__________________________________________________________________________________
__________________________________________________________________________________

Barangay 4. _________________________
Product/Service: _______________________

__________________________________________________________________________________
__________________________________________________________________________________

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ASSESSMENT

I. Directions: Read and analyze each statement. Write TRUE in your answer sheet if the
statement is correct and FALSE if the statement is incorrect.
_____1. Local manufactures mostly consist of consumer items produced without much need for
technology and skill.
_____2. Thorough study on type of business is an option to consider in putting up a business.
_____3. New designs are needed to produce a new good/product.
_____4. Goods out in the market are based from the availability of products in certain place or
area.
_____5. Manufacturers can improve market access on competitive terms.

II. Directions: Draw in your answer sheet a poster of your own product applying the different
business principles, tools and techniques. Rubrics will be used to rate the
activity.

Rubrics:

CRITERIA DESCRIPTION POINTS

Concepts are clearly used
Content 5
and explained.
The concepts are clearly
Creativity 5
and creatively conveyed.
The idea are clearly
Design presented based on the 5
layout design.

Total: 15

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III. Directions: Write in your answer sheet a short description of your poster output. Rubrics will
be used to rate the activity.

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________

Rubrics:

CRITERIA DESCRIPTION POINTS

Concepts are clearly
Content 5
used and explained.
The concepts are clearly
Organization 5
and creatively conveyed.
The idea are clearly
Presentation presented based on the 5
words used.

Total: 15

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ANSWER KEY FOR ACTIVITIES

Activity 3 – Answers may vary

Activity 2 – Answers may vary
Activity 1 – Answers may vary

References:
A. Book:
Dinio, Rosemary P., PhD & Villasis, George A. 2017. Applied Economics. Manila
Philippines. REX Book Store. P. 72-80

DIVISION QUALITY ASSURANCE TEAM IN HUMANITIES AND SOCIAL SCIENCE

WRITER/S: ETHEL P. FABIA

VALIDATORS:

DR. MARILEX A. TERCIAS

DR. EUGENE M. TORALBA
DR. ALBERTO O. RABANG
DR. VIRGINIA B. FREGILLANA
JEANNEROSE M. ACOSTA
ZOSIMO IRENE H. FERNANDEZ
MA. JOCELYN J. SOTONG
DANILO T. SIBLAG
VICTOR B. ABAN
JAMILIE M. CRISPINO
CONSULTANTS:
DR. MAYBELENE C. BAUTISTA
DR. JEROME S. PARAS
DR. CORNELIO R. AQUINO
DR. TEODORA V. NABOR
DR. DANILO C. SISON

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III. Refer to II. Refer to Assessment
Rubrics Rubrics
I.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
ANSWER KEY FOR ASSESSMENT