BUSINESS

ENTERPRISE
SIMULATION
 BUSINESS ENTERPRISE SIMULATION

LESSON 1.2:
METHODOLOGY
 BUSINESS ENTERPRISE SIMULATION
All, if not most of the models, methods, tools and concepts used for the Business
Enterprise Simulation course are drawn from the ABM Strand textbooks as follows:

• Applied Economics (Caoile 2017)

• Business Ethics and Social Responsibility: Principles, Policies, Programs and
Practices (Garalde-Orjalo and Frias 2016)
• Business Mathematics for Filipinos (Chan Shio, et al. 2017)
• Exploring Small Business and Personal Finance (Benito, Pao, and Yumang 2016)
• Fundamentals of Accountancy, Business and Management: A Textbook in Basic
Accounting 1 and 2 (Frias 2016)
• Marketing for Beginners: The principles of Marketing (Mendiola, Tanchingco,
and Agustin 2017)
• Organization and Management: Concepts, Casalests, and Exercises (Garalde-
Orjalo and Frias 2016)
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Research data required for the course may be drawn from both secondary and
primary data sources.

Secondary data sources include the public documents, books, journals,

magazines, the internet, and the internal database of the enterprise.

Primary data sources include surveys, experiments, and observational research.

The conduct of market research, marketing mix development, and the creation of
effective marketing plans are some of the tools and concepts from the textbook of
Marketing for Beginners: The principles of Marketing (Mendiola, Tanchingco,
and Agustin 2017).
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The presentation and analysis of business data, and consumptions on costs and
expenses are tools taken from Business Mathematics for Filipinos (Chan Shio, et al.
2017). Selected tools and methods for these include markup and margins, trade
discounts, salaries, and wages computations, and presentation and analysis tools
for business data.

Registration, licenses, permits, and other reporting requirements for business

cycles are drawn from Fundamentals of Accountancy, Business and
Management: A Textbook in Basic Accounting 1 and 2 (Frias 2016). It is
worthwhile to get the learner-entrepreneurs to access the websites of the relevant
agencies for the application process.
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The accounting cycles for merchandising and service businesses. And the requisite
worksheets for reporting enterprise performance, are also drawn from Frias (2016)
and Exploring Small Business and Personal Finance (Benito, Pao and Yumang
2016) textbooks. Sample cash budgets and financial statements are in Simulation
Activity 8: Financial Study of this textbook.

The performance reports for the business execution and implementation phase for
this course are from Fundamentals of Accountancy, Business and Management: A
Textbook in Basic Accounting 1 and 2 (Frias 2016) and Organization and
Management: Concepts, Casalests, and Exercises (Garalde-Orjalo and Frias 2016).
A checklist for performance reports is in Simulation Activity 10: Performance
Reports of this textbook.
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Financial planning tools and methods of analysis for the course are from Benito,
Pao, and Yuman (2016). Vertical and Horizontal analysis and profitability ratios are
discussed in the financial study of the Enterprise Business Plan.

The principles and practices to emphasize the role of enterprise in economic

development are obtained from Garalde-Orjalo and Frias (2016). Selected
economic indicators for the service and merchandising sectors that may be used
for the course can be found in the website of Philippine Statistics Authority. Scan
the QR code to access the link .
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Methods, models and tools of the management functions in the Enterprise
Business Plan is taken from Organization and Management: Concepts, Casalests,
and Exercises (Garalde-Orjalo and Frias 2016). The said methods, models, and
tools include the Porter model for micro-environment analysis, the Political,
Economic, Social and Technological (PEST) model for macro-environment analysis
and the action plan template for strategic planning.

Other concepts for the Enterprise Business Plan include delegation, span of
control, and authority in the organization charts. Engagement or investment in
business beyond profit through social entrepreneurship ventures, and the practice
of and business ethics principles of transparency and accountability through the
performance and financial reports are also used in the Enterprise Business Plan
Sections.