DESCRIPTION

OF THE
BUSINESS
Chapter 5.3 1

Michael Karl M. Barnuevo, MBA

DESCRIPTION OF THE
BUSINESS
 This particular portion of the business plan is very useful
to the Entrepreneur, as well as prospective investors and
lenders.
 This is divided into two parts:
1. A short explanation of the industry
2. A description of the business

Michael Karl M. Barnuevo, MBA 2

INDUSTRY
 Defined as “the collection of competitors that produces
similar or substitute products or services to a defined
market”
 Industry segments are formed as the products or services
of the industry are targeted to particular subsets of the
general market
 Whether it’s an industry or a segment, it’s still referred to
as “the industry”
Michael Karl M. Barnuevo, MBA 3
WHY STUDY THE INDUSTRY
 To make sure it has desirable characteristics
 Best industries to enter are high-growth and profitable, with low
barriers to entry
 Worst industries to enter are declining, barely profitable, highly
competitive and regulated, with higher barriers to entry
 To be prepared for the way it’s changing
 To understand better how to compete

Michael Karl M. Barnuevo, MBA 4

TOP INDUSTRIES IN THE
PHILIPPINES
1. Business Processing Outsourcing
2. Retail
3. Gaming
4. Hospitality and Leisure
5. Real Estate
6. Manufacturing
7. Construction
8. Energy & Automotive
9. Shipbuilding
10. Food

Michael Karl M. Barnuevo, MBA 5

1. BACKGROUND AND
EXPLANATION OF THE
INDUSTRY
 When describing the industry, it is Important to present the
current situation and the outlook for the future.
Information must be provided regarding the various
markets within the industry, as well as new products or
developments that could affect the business. The sources
of information must be indicated.

Michael Karl M. Barnuevo, MBA 6

2. DESCRIPTION OF THE
BUSINESS
Statements about the following will be useful in describing
a business:
1. The industry sector where the business falls into (retail,
manufacturing, education, entertainment, etc.)

Michael Karl M. Barnuevo, MBA 7

2. DESCRIPTION OF THE
BUSINESS
2. Whether the business is new or
established

Michael Karl M. Barnuevo, MBA 8

2. DESCRIPTION OF THE
BUSINESS
3. The ownership status of the business

(sole proprietorship, partnership or

corporation)

Michael Karl M. Barnuevo, MBA 9

2. DESCRIPTION OF THE
BUSINESS
4. Information on who are the customers

Michael Karl M. Barnuevo, MBA 10

2. DESCRIPTION OF THE
BUSINESS
5. Information on the size of the market

Michael Karl M. Barnuevo, MBA 11

2. DESCRIPTION OF THE
BUSINESS
6. Information on how the product or
service is distributed

Michael Karl M. Barnuevo, MBA 12

2. DESCRIPTION OF THE
BUSINESS
And combine all these information into one
or two paragraphs.

Michael Karl M. Barnuevo, MBA 13