Senior High School

Applied Economics
Quarter 2 – Module 8.1:
Business Principles, Tools, and
Techniques in Participating in Various
Types of Industries in the Locality

Writer:
CINDY M, Writer:
RONQUILLO
TeacherCINDY
III-SHS inM. RONQUILLO
Apalit (Stand Alone 1)
Cluster Vi
T-III, SHS IN APALIT(STAND ALONE 1), Cluster VI
Editors: Editors:
JANE P. VALENCIA, Ed.D.– ABM Supervisor
JANE P. VALENCIA, EdD – Math/ABM Supervisor
 What I Need to Know

This module was designed and written with you in mind. It is here to help you apply business
principles, tools and techniques in participating in various types of industries in the locality.
The scope of this module permits it to be used in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The lessons are arranged to
follow the standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.

The module is divided into two lessons, namely:

Lesson 1: Types of Industries
Lesson 2: Apply SWOT Analysis as a Tool in Evaluating a Business Opportunity

After going through this module, you are expected to:

 identify the different types of industries; and
 distinguish the different products and services of the business industries.
 discuss industry and environmental analysis as a tool in evaluating business opportunities;
 apply SWOT analysis as a tool in evaluating a business opportunity.
 select business opportunities appropriate in your locality.

What I Know

Choose the letter of the best answer. Write your answer on a separate sheet of paper.
1. A group of businesses or manufacturers that produces a particular products or
services
a. Enterprise c. Logistics
b. Industries d. Trade
2. The process of selling consumer goods or services to customers through multiple
channels of distribution to earn a profit
a. Barter c. Wholesale
b. Retail d. Trade
3. This is an agribusiness which involves planting rice, the staple food of the Filipinos.
a. Goat Raising c. Rice Farming
b. Fish Pens d. Vegetable Farming
4. A business which involves raising of domesticated type of birds like chicken, ducks,
and geese for meat and egg production.
a. Cattle Raising c. Fish Pens
b. Corn Farming d. Poultry Raising

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 5. The process of converting raw materials, components, or parts into finished products
by used tools, machinery and labor.
a. Agribusiness c. Retail and Services
b. Manufacturing d. International Trade
6. Agribusiness is a business that earns most or all of the revenue from
___________________.
a. Agricultural products c. Retail products
b. Car making d. Basket making
7. Other term for this Pig Raising is
a. Duck Raising c. Goat Raising
b. Cattle Raising d. Hog Raising
8. Medicines, cosmetics, and stationery are called soft goods or ______________.
a. Arts c. Hard goods
b. Consumables d. Substitutes
9. An agribusiness that produce yellowish cereal plant and also use for animal feeding.
a. Hog Raising c. Furniture Making
b. Corn Farming d. Poultry Raising
10.These are examples of agribusiness except __________.
a. Hog Raising c. Water Drinking Business
b. Corn Farming d. Poultry Farming
11.A business that deals with the production of agricultural products.
a. Agribusiness c. Retail and Services
b. Manufacturing d. International Trade
12.People need water to quench their thirst and this is one of the reason why this
business is thriving.
a. Drinking Water Business c. Bakery
b. Soap Manufacturing d. Furniture Making
13.This industry is involved in the extraction of raw materials includes mining activities,
forestry, and fishing for human use.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry
14.This industry processing of primary materials into usable products.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry
15.During pandemic crisis, hospitality and health care services are essential and these
are classified as_____.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry

Lesson 1 Types of Industries

Many individuals think of industries in a larger scale as big businesses that
produces goods with big plants and machineries. Not many knows industries also produces
goods and services in different sectors of society such as agriculture, transportation,
hospitality and others. As you go through lesson, you will learned that industries can be
classified into different categories for better understanding of the different types and make
it easier to study.

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 What’s In

Before we begin the new lesson, I want you to recall what you have learned about the different
business principles in creating a business. Now, the letters of the words below are jumbled.
Figure out what the word is and write it on the blank line provided and gives its meaning.
1. LCAALITIBYS _________________ - ________________________________
2. RLIITBIFPYOAT _________________ - ________________________________
3. GIB ADEI _________________ -________________________________
4. ASNALYTTISBIIU _________________ -________________________________
5. UOTMNOAY _________________ -________________________________

Notes to the Teacher

The teacher should encourage the learners to read books in Economics. This will
help them to easily understand the lesson.

What’s New
Look around you. Change is constant. So many industry businesses flourish in your
community just like the story of Mr. Wrigley’s
The story of William Wrigley Jr.- soap salesman who became the world’s best gum
manufacturer. In the 20th century, chewing gum made William Wrigley Jr. one of the
wealthiest men in America. In 1891, when William Wrigley Jr. was 30 years old, he moved
to Chicago with his wife Ada and their daughter Dorothy, opening a new branch of his father’s
company where he continued to sell soap and offered baking powder as a premium. He soon
realized that baking powder became a huge hit as a freebie and that customers were more
interested in getting baking powder than soap, so he and his partner decided to switch to
baking powder business. Now baking powder became the primary product of William Wrigley

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Jr. Company, but he also offered gum as a premium. As baking powder’s popularity used to
surpass that of the soap, so did the chewing gum packages offered with every baking powder
became more popular than the baking powder itself. Wrigley soon abandoned baking powder,
entered the gum industry and in 1893, he offered two new gum brands, Juicy Fruit and
Wrigley’s Spearmint.

Answer the questions below:

1. What is the type of business of Mr. Wrigley’s?
________________________________________________________________

2. What are the products of the business?

________________________________________________________________

Based on the activity, you have now an idea of what is an industry and to
understand it better let us get to know the different types of industries and
the different services they offer.

What is It
Types of Industries

This lesson will focus on industries, although many school textbooks list only three levels,
more advanced books classify industry into five levels. The terms for each level originate from
Latin words referring to the numbers one to five.
Classification of Industry

Primary Working with or extraction of raw e.g. mining activities,

materials/natural resources fishing forestry and
agriculture
Secondary Making or converting raw materials into usable e.g. car manufacturing,
products through processing and manufacturing. bakeries
Tertiary Service industries or providing essential services transportation, finance,
and support to allow other levels of industry to utilities, retail,
function. housing, banking, and
other services
Quaternary Dramatic growth of this new sector. Working with ICT industries, R & D
creation and transfer of information (ICT, media industries-eg.Synergy,
sharing) including research and development. As Lexmark R & D,
well as knowledge based services like STRAND
consultation.
Quinary control the industrial and government decision- Eg. Government Owned
making processes includes industry executives Controlled Corporation
and management and bureaucrats and elected Executives,
officials in government.
In the Philippines, we use the Philippine Standard Industrial Classification (PSIC). The
PSIC is a detailed classification of industries prevailing in the country according to the kind of
productive activities undertaken by establishments. The 2009 PSIC was patterned after the UN

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International Standard Industrial Classification (ISIC) Rev. 4, but with some modifications to
reflect national situation and requirements.
The following are major industries in the Philippines:
Agribusiness - a business that earns most or all of its revenues from agriculture. An
agribusiness tends to be large scale operations and deals with farming, processing and
manufacturing, packaging and distributing agricultural products.
List of Agribusiness in the Philippines

Name of Agribusiness Description

Hog/Pig Raising Swine raising is raising and breeding of domestic pigs as livestock.
Poultry Farming Raising of domesticated birds such as chickens, ducks, turkeys
and geese to produce meat or eggs for food
Cattle Raising Raising of cattle for milk, beef, and hides.
Goat Raising Raising goats for milk and meat
Rice Farming Planting rice for rice production
Vegetable Farming Planting veggies is an agribusiness specially learn how to plant off
– season varieties.
Fish Pens Raising fish in a pen such as catfish, oyster, prawns, pangasius,
bangus or tilapia is fun and exciting business, each species needs
different environment to grow either fresh or salt water.
Corn Farming Planting corn for consumption
These are list of some profitable agribusiness out there these are processed fruits and
vegetable, seaweeds, tropical fruit purees and juices, fresh tropical fruits, sugar, bio ethanol
and others.

Manufacturing
The process of converting raw materials, components, or parts into finished goods that meet a
customer’s expectations or specifications. There are many laws and regulations that govern the
manufacturing industry. The business will be require to conform to all the licensing bodies
may it be the government or the local authority’s requirements.
Some of the best small manufacturing businesses that can be carried out at your
residence are:
1. Furniture Making – make or create furniture such as lockers, bookshelves,
showcases, chairs, tables, etc.
2. Drinking Water Business- Business that sell drinking water package in a plastic
bottles or container.
3. Soap Manufacturing business- business that produce different soap products.
4. Commercial Bread Making- bread making is easy and simple business that can be
done at home

Retail and Services

Retail is the process of selling consumer goods or services to customers through
multiple channels of distribution to earn a profit and usually it’s done directly to its final
consumer. Retailing includes subordinated services, such as delivery. The term “retailer” is
also applied where a service provider services the small orders of a large number of
individuals. Recently, online retailing, a type of electronic commerce used for business – to –
consumer (B2C) transactions and mail order, are forms of non – shop retailing.

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Types of Retail Products:
1. Food products – typically require cold storage facilities.
2. Hard goods or durable goods – these are automobiles, appliances, electronics,
furniture, sporting goods, lumber, etc., and parts for them. Goods that do not
quickly wear out and provide utility over time.
3. Soft goods or consumables – clothing, other fabrics, footwear, cosmetics, medicines
and stationery. Goods that are consumed after one use or have limited period
(typically under three years) in which you may use them.
4. Arts – Contemporary art galleries, Bookstores, Handicrafts, Musical instruments,
Gift shops, and supplies for them.

On the other hand, The typical service business provides intangible products, such as
accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and
transportation services.

International Trade

International trade is the exchange of capital, goods, and services across international
borders or territories, significant share of gross domestic product (GDP). While international
trade has been present throughout much of history its economic, social, and political
importance has been on the rise in recent countries. It is the presupposition of international
trade that a sufficient level of geopolitical peace and stability are prevailing in order to allow for
the peaceful exchange of trade and commerce to take place between nations.
Trading globally gives consumers and countries the opportunity to be exposed to new
markets and products. Almost every kind of product can be found on international market:
food, clothes, spare parts, oil, jewelry, wine, stocks, currencies, and water. Services are also
traded: tourism, banking, consulting, and transportation. A product that is sold to the global
market is an export, and a product that is bought from the global market is an import. Import
and exports are accounted for in a country’s current amount in the balance of payments.

What’s More
The teacher would like to assess your understanding about the lesson. Now I want you to read
and answer the following activities
Activity 1. Below are list of company’s logos that are well known in the Philippines. Write in
the space provided what type of industries the company is classified into whether Primary or
Secondary or Tertiary or Quaternary, or Quinary.

1. 2. 3.

4. 5. 6.

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7. 8.

Activity 2.Directions: Choose the letter of the correct answer from the list of words in
the box and write it in blank space provided.

a. Manufacturing f. Soft Goods

b. Agribusiness g. Hog raising
c. Vegetable farming h. Fish Pens
d. Retail i. Rice Farming
e. Food Products j. PSIC
_______1.This industry employs man and machinery to process raw materials into finish goods.
_______2.These are type of retail products that usually require cold storage.
_______3.This is an acronym stands for Philippine Standard Industrial Classification which is a
detailed classification of industries prevailing in the Philippines.
_______4.Consumables are the other term for these goods.
_______5.Cars, appliances, electronics and lumber are examples of these products.
_______6.This business is involves in farming, processing, and packaging of agricultural
products.
_______7.Raising tilapia, catfish, prawns, and bangus to earn revenue is their main line of
business.
_______8.Piggery business is one of the most lucrative businesses in agriculture.
_______9.Tomatoes, bell pepper, pechay, eggplant and bitter gourd are products of this
business.
_______10. In this business, shops in the residential streets are part of this business.
Activity 3. Now, I want you to identify ten (10) retail products that are sold in your
community and classify them. Write your answer on the table below.

Food Products Hard Goods Soft Goods Arts

1. 1. 1. 1.
2. 2. 2, 2.
3. 3. 3. 3.

Assessment

Choose the letter of the best answer. Write your answer on a separate sheet of paper.
1. The process of selling goods and services through sales channel to reach its
consumers.
a. Barter c. Retail
b. Discounts d. Trade
2. This is an agribusiness which involves growing fish in an enclosed area.
a. Goat Raising c. Rice Farming
b. Fish Pens d. Vegetable Farming
3. This involves raising of chickens, ducks, and other domesticated birds for meat and
egg for human consumption.
a. Cattle Raising c. Poultry Raising

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 b. Goat Raising d. Vegetable Farming
4. Production of products using labor, machines, methods, and tools for use or sale.
a. Agribusiness c. Retail and Services
b. Manufacturing d. International Trade
5. Agribusiness is a business that deals with production and distribution of
___________________.
a. Agricultural products c. Retail Products
b. Car making d. Basket Making
6. It deals with raising of pig or swine for livestock and human consumption.
a. Duck Raising c. Goat Raising
b. Cattle Raising d. Hog Raising
7. These are type of retail products that is intended to be consumed in a quick manner.
a. Arts c. Soft Goods
b. Hard Goods d. Substitutes
8. This business deals with creation or production of goods like tables, chairs, and
cabinets.
a. Hog raising c. Furniture Making
b. Corn farming d. Poultry Farming
9. These are list of business that involves agriculture except _______________.
a. Hog raising c. Furniture Making
b. Corn farming d. Poultry Farming
10. A business that deals with farming, processing and manufacturing, packaging and
distributing agricultural products.
a. Agribusiness c. Retail and Services
b. Manufacturing d. International Trade
11.Deals with selling of one of the basic consumption of man which is water.
a. Drinking Water Business c. Bakery
b. Soap manufacturing d. Furniture Making
12.This industry is involved in information technology business.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry
13.Internet provider, janitorial services and health care are part of this industry.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry
14.This industry provides a wide range of personal and professional services to
consumers.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry
15.This industry that take raw materials from earth and sell it for use or undergo
manufacturing process.
a. Primary Industry c. Tertiary Industry
b. Secondary Industry d. Quaternary Industry

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References

Dinio and Villasis 2017: Applied Economics. Rex Bookstore, First Edition.
Leano, Roman D. 2016: Applied Economics for Senior High School. Mindshapers Co., Inc

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 Development Team of the Module

Writer: Cindy M. Ronquillo

Editors: Lei Barawid/Karina Hernandez
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics

Illustrator:
Layout Artist:
Language Reviewer:
Management Team

ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS