Selects appropriate business opportunities based on the needs of the community

What is this lesson about?

The lesson deals with the selection of appropriate business opportunities based on the
needs of the community.

What will you learn?

At the end of the lesson, you should be able to:
 Select appropriate business opportunities based on the needs of the community.

Words to Study
 Strengths - are the capital, knowledge, skills or other advantage that a firm has or can
acquire over its competitors in meeting the needs of its customers.
 Weakness- is a defect or shortcoming which increases the risk of a failure.
 Opportunity - means a good position, chance or prospect as for advancement or success.
 Threat - is an indication or warning of probable trouble.
 SWOT - stands for Strengths, Weaknesses, Opportunities and Threats

What is SWOT analysis?

SWOT analysis is a planning tool used to understand the Strengths, Weaknesses,
Opportunities and Threats involved in a project or in a business.
i. It helps you develop your career in a way that takes best advantage of your
talents, abilities and opportunities in your community.
ii. It helps you to focus on your strengths, minimize threats and take the greatest
possible advantage of opportunities available in your community.

STRENGTH
Is the business in demand in your community?
Is the product new in tor community?
Is it accessible to all?
Will your community patronize it?

WEAKNESSES
What could you improve?
What should you avoid?
What factors would cause the loss of your sales?

OPPORTUNITIES
Where are the good opportunities facing you?
What are the interesting trends you are aware of?
THREATS
What obstacles do you face?
What is your competitor doing that you should be worried about?
Could any of your weaknesses seriously threaten your business?

Activity 1
Select three small businesses in your community and interview the owner in any means of
communication without face to face. Ask them on which existing opportunity/ies influenced
their decision to start their business and what specific opportunity they met.
- An unfilled want - a change
- A want for more - an annoyance
- A want for better - a problem
Name of Business Types of Business Types of Opportunity Specific Opportunity
met by the business
1.
2.
3.
4.
5.

Activity 2
Direction: Choose the correct answer from the options under each item. Write the letter of
the correct answer in a sheet of paper.
1. When there is a competition, then there is a in business.
a. opportunity c. threat
b. strength d. weakness
2. The acronym for SWOT is .
a. Style, Wear, Operation, Tool
b. Strengths, Weaknesses, Opportunities, Threats
c. Store, Warehouse, On-liner, Technology
d. All the above
3. If the people in the community patronize your product, then your business
has .
a. Operation c. Threats
b. Strength d. Weakness
4. Which of the following questions can be categorized as an opportunity?
a. What could you Improved?
b. What are the interesting trends you are aware of?
c. What obstacles do you face?
d. Is it accessible to all?
5. You encounter difficulty in hiring workers due to low salary. This is classified as .
a. opportunity c. threats
b. Strength d. weakness
Let us apply what you have learned
Direction: Read the story below and answer the given questions.

Nena’s Travails
Ever since Nena was a young girl, she always liked to sew, her love for sewing
prompted her to set up a business which included in a variety of sewing activities.
She was in a business as a sole proprietor but later set up the business as
corporation with three shareholders, one of the being herself. She was the primary
shareholder of the business since she was the primary shareholder of the business
since she was the primary provider of service.
Unfortunately family circumstances occurred which prompted her to put
practically all entrepreneurial businesses on hold. She needed more reliable week-
to-week steady income so she decided to find a full time job working for
someone else. Prior to making the new job decision, Nena and the other owners
liquidated the business.
Nena still has a lot of calls from people who wanted to do some work. So, she
started up the business again as a sole proprietor, using a “cottage industry” help
because of a lack of time to commit to the management function.
It has been often suggested to Nena that she revive her business. She would
like to do so in the future. She does, though, like her full-time position. If she starts
up the business again, she needs additional financing to buy necessary supplies
and materials to make a competitive comeback into the marketplace for “oversized
handkerchiefs”. Her target market has been tapped by a small-time seamstresses
since terminating her business.
Nena would very much like to start up the business again but wants to find the
right kind of business ownership for her business. At the present time, she does
know anyone who has the skills/interests to work with her as a partner in the
business. She does know several people who would be interested in putting money
into the business if she decided to either go into a partnership, with them being
silent partners, or make it a corporation. Use the
problem-solving process to help Nena come up with a practical decision.

A. Literal Comprehension
1. What is Nena’s problem/challenge?

2. List all possible alternatives that are available to Nena.

3. What criteria should Nena use in evaluating the alternatives?

B. Making Inferences
4. Why is there a need for Nena to start a new business?

C. Critical Thinking
5. Why is selecting business opportunities important?