Business Enterprise Simulation 1
Business Enterprise Simulation 1
Writer:
SHEILA MARIE ANN M. GALURA
T-II San Isidro HS, Bacolor South
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
ELSA A. LAQUINDANUM – MT- I
SHARINETTE R. CORONEL – Teacher II
What I Need to Know
This module was designed and written with you in mind. It is here to help
you master the introduction to Business Enterprise Simulation. This module is
crafted to allow you to use it in many different learning situations with the
language used recognizing the diverse vocabulary level of students. The discussion
of the topics is arranged to help you follow and understand the flow of the lessons.
After going through this module, you are expected to:
Identify the needs and wants of the community through an interview;
Use the identified needs and wants to generate potential business ideas;
Define and cite examples of environmental factors that may affect the
market.
What I Know
Before we tackle this module, let us first check your current knowledge based
from your previous subjects. This way, the teacher can gauge how he/she can
guide you better through this module. Read and analyze each items carefully before
answering.
1. These are things that are essential for us to be able to live with dignity and
pride within the community.
A.
B. commodity D. luxury
C. needs E. wants
2. These are considered as luxuries and extravagance that signify wealth and
expensive way of living.
A. commodity C. luxury
B. needs D. wants
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4. Introducing an entirely new product to the market is called __________.
A. alteration C. alteration
B. improvement D. improvement
7. Good business opportunities and ideas can be generated from the following
sources EXCEPT:
A. A new product introduced by the competitor
B. Ideas given by the knowledgeable persons
C. Unsuccessful stories of known entrepreneurs or friends or relatives
D. Watching emerging trends in demands for certain products
9. The firms, which are also known as the “buy and sell” businesses,
purchase products and sells the same at a higher price without changing
the form of the products are called
A. manufacturing C. service
B. merchandising D. social service
10.An increase in demand of ‘green energy’ use can affect the energy source
you use to power your equipment and vehicles. This situation is affected by
a PESTLE factor known as __________.
A. economic factor C. legal factor
B. environmental factor D. social factor
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12. Falling behind on technological trends, using outdated equipment or
software, and examining the technological barriers your business faces to
enter a new market all fall within which PESTLE factor?
A. economic factor C. political factor
B. legal factor D. technological factor
13.Which of the following should be considered first by a prospective
entrepreneur in choosing the right location for his/her business?
A. the access of the target customers
B. the attractiveness of the store layout
C. the prevailing prices of the goods in the area
D. type of merchandise
15.In selecting between two potential business ideas, Martha should consider
the following factors EXCEPT:
A. How big is the demand for the product/service?
B. How much capital is needed?
C. Is the business in line with Martha’s interest and expertise?
D. Will the business make Martha famous?
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Lesson Identifying Business
1 Opportunities through
Market Scanning
Building a business enterprise is not easy. Most successful business people
start from scratch and worked their way to the top. They utilized business skills
and experience to make sound decisions that helped them achieve their business
goals. However, before you start the business, you should be able to first scan the
market and identify the business opportunities present for you to capitalize on.
Before we start this module, let us first refresh our memories and recall the
different terms and concepts that we have discussed and studied from our previous
ABM subjects. Answer the crossword puzzle below using the clues provided.
1 2
5 6
5
5. A/an __________ is an individual who creates a new business, bearing most of
the risks and enjoying most of the rewards.
6. The main objective of a business is to earn __________ for the owners.
7. It is a group of companies that are related based on their primary business
activities.
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actions, and, identify technological changes which will provide new market
opportunities or market disruptions.
5. Improving or enhancing an existing product or service is known as
__________.
6. This happens when you create a new and improved product or service to
replace the existing ones.
7. The needs for the products and services are referred to as __________.
We’re you able to identify the terms being asked? Let’s see how they are
related in our lesson.
Basic needs are things that are essential for us and our wellbeing. These are
the things that we cannot do without. These include:
Basic commodities for consumption,
Clothing and other personal belongings,
Shelter, sanitation, and health,
Education and skills-generation,
Relaxation and leisure
On the other hand, wants are desires, luxury, and extravagance that signify
wealth and an expensive way of living. Wants or desires are considered above all
the basic necessities of life. For instance, every individual has an eagerness or
passion for non-basic needs such as:
Fashion accessories, shoes, clothing,
Travelling around the world,
Eating in an exclusive restaurant,
Watching movies, concerts, and plays,
Having luxurious cars,
Wearing expensive jewelry, perfume,
Living in impressive homes
The needs and wants of people are the basic indicators of the kind of
business that you may engage into. The knowledge for the needs and wants can
serve as a measure for the success of your business idea as you will have an idea
which product or service will generate more demand from your target market.
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Generating Ideas for your Business
You can also generate sound ideas for your business by considering different
factors such as the kind of people that you want to cater, their needs and wants,
lifestyle, culture and tradition, and social orientation that they belong. There are
different ways by which you may generate ideas for your business. These include:
1. Examine the existing goods and services. Are you satisfied with the
product/service? What do other people who use the product/service say
about it? How can it be improved? Improving an existing good or service may
generate a good business opportunity for you. You can improve the materials
used in producing the product. You can also introduce new ways on how the
product can be used, making it more useful and adaptable to the customers’
many needs. Improving or enhancing an existing product or service is known
as innovation. You can also invent a new and improved product or service to
replace the existing ones.
2. Examine the present and future needs. Look and listen to what
customers, institution, and communities are missing in terms of goods and
services. Sometimes, these needs are already obvious and recognized
immediately. Other needs, on the other hand, are not as obvious since they
can only be identified in the future and in the event of certain developments
in the community.
3. Examine how the needs are being satisfied. Needs for the products and
services are referred to as market demand. To satisfy these needs is to
supply the products and services that meet the demands of the market. The
term market refers to whoever will use or buy the product or service, and
these may be people or institutions such as other businesses,
establishments, organizations, or government agencies. There is a very good
business opportunity when there is absolutely no supply to a pressing
market demand. Businesses or industries in the locality also have needs for
goods and services. Their needs for raw materials, maintenance, and other
services such as selling and distribution are good sources of ideas for
business.
4. Examine the available resources around you. Observe what materials or
skills are available in abundance in your area. A business can be started out
of available raw materials by selling them in a raw form and by processing
and manufacturing them into finished products. The work and experience
that you may have will provide you with business opportunities to acquire
the needed skills which will earn for you extra income, should you decide to
engage in income-generating activities. With your skills, you may also tinker
around with various things in your spare time and invent new products.
5. Read magazines, news articles, and other publications on new
products and techniques or advances in technology. The internet also
serves as a library where you may browse and surf on possible businesses. It
will also guide you on how to put the right product in the right place, at the
right price, at the right time. Listing of possible businesses to set up in an
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area may also be available from banks and local non-government
organizations.
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Economic factors are financial fluctuations that are typically out of your
control. For example, interest rates go down meaning your business loan
cost more last year than it will this year. Some other examples include:
o GDP loss or growth
o Inflation rates
o Company debt
o Income of potential customers in your area
o Employee salary trends in the service business industry
Social factors refer to the cultural norms and attitudes of your targeted
demographic and that of your employees, partners, competitors, etc. For
example, an increase in demand of ‘green energy’ use can affect the energy
source you use to power your equipment and vehicles. Other factors are:
o Customer age
o Cultural norms and traditions
o Population growth or decline
o Service career attitudes
o Diversity
o Religious influences
o Public health and safety
Technological factors have a direct impact on the cost of doing business
and the efficiency of your business. Falling behind on technological trends,
using outdated equipment or software, and examining the technological
barriers your business faces to enter a new market all fall within this
category. Other factors to consider include:
o Automation opportunities
o Technology incentives, like tax credits
o Better equipment coming on the market
o Service business software updates
o Improvements to mobile devices and other communications
Legal factors will directly influence the company’s operations of your
service business right now. Some legal factors can also determine your final
cost of doing business and impact demand for your company’s services.
These legal factors include:
o Consumer protection laws
o Various insurance laws and mandates
Environmental factors refer to anything that can impact your business
from an ecological or environmental standpoint. This part of the analysis will
matter more for some industries than others. For example, if you own a
landscaping business, you’ll need to concern yourself with the weather every
single day, while plumbers can work indoors. Other environmental factors
may include:
o Environmental impact of service business practices
o Geography
o Access by road, rail, air
o Waste management
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o Local attitudes towards pollution
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After studying the lesson in this
module, let us now apply the
What’s More competencies that you have gained.
Don’t worry. You got this!
_________ 2. _________ 6.
_________ 3. _________ 7.
_________ 4. _________ 8.
Example:
books, nutritious eBook reader, fast
You 17 food, shelter food, mansion
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Independent Activity 1.3: How to Identify a Good Business Idea
Based on what you have learned from this module, using the following guide
questions, explain the things to be considered when screening for a good business
idea.
Will the business be legal, not going against any existing or foreseeable
government regulation?
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Independent Activity 1.4:
Below are different situations wherein a business idea was generated.
Determine which among the following ways to create a good business idea was
used.
_____ 1. Robert observed that during the COVID-19 pandemic, a need for
facemasks emerged. Being a good tailor, he made cloth facemasks
which he sells in the market at an affordable price.
_____ 2. Lucia started selling school supplies and bags in April. She looks
forward to the upcoming start of classes in June.
_____ 3. Aling Nena has an abundance of banana trees in her backyard. Being a
good cook, she started creating unique banana dishes that she sells to
her neighbors.
_____ 4. Sebastian read a business article that discusses business opportunities
for motorcycle owners and drivers in the food delivery business. Having
his own motorcycle, he decided to push through with the said business
idea.
_____ 5. Felisa observed that the milk tea industry is booming in her
community. She also innovated a new recipe for milk tea that she
wants to use in her own milk tea business.
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success of your business idea.
What I Have Let us now generalized our
learnings! We have encountered
Learned different concepts in this module.
1. Basic _________ are things that are essential for us and our wellbeing. On the
other hand, _________ are desires, luxury, and extravagance that signify
wealth and an expensive way of living
2. It takes skills and talent to be able to recognize good business _________,
whether it is some new ideas that you want to experiment with or a previous
idea that you want to develop.
3. There are different ways by which you may generate ideas for your business.
These include: (1) _____________________________; (2)
_____________________________; (3) _____________________________; (4)
_____________________________; and (5) _____________________________.
4. It very unlikely that you will have enough resources to pursue all of the
business ideas that you have at once. Hence, you have to
__________________________________.
5. When scanning the market, one can consider different factors, namely:
_________ factors, _________ factors, _________ factors, _________ factors,
_________ factors, and _________ factors.
1.
2.
3.
4.
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5.
After studying and analyzing the mini-lesson of this module, let us now check
how much knowledge you have gained. Read and analyze each items carefully
before answering.
1. These are things that are essential for us to be able to live with dignity and
pride within the community.
A. commodity C. luxury
B. needs D. wants
2. These are considered as luxuries and extravagance that signify wealth and
expensive way of living.
A. commodity C. luxury
B. needs D. wants
3. The following are considered as needs EXCEPT:
A. education C. new high-end cellphone
B. food D. sanitation
4. Introducing an entirely new product to the market is called __________.
A. alteration C. alteration
B. improvement D. improvement
5. It is an undertaking by a person or a group of persons who are partners, or
of stockholders who own a juridical entity known as a corporation. Its
main objective is to earn profit for the owners.
A. aggregate C. government
B. business D. industry
6. It is defined as a good or favorable change available to run a specific
business in a given environment at a given point of time.
A. business enterprise C. business opportunity
B. business idea D. business plan
7. Good business opportunities and ideas can be generated from the following
sources EXCEPT:
A. A new product introduced by the competitor
B. Ideas given by the knowledgeable persons
C. Unsuccessful stories of known entrepreneurs or friends or relatives
D. Watching emerging trends in demands for certain products
8. It is defined as the process of continually and actively monitoring the
external environment, in order to identify customer needs, anticipate
competitive actions, and identify technological changes which will provide
new market opportunities or market disruptions.
A. business scanning
B. environmental scanning
C. industry scanning
D. market scanning
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9. The firms, which are also known as the “buy and sell” businesses,
purchase products and sells the same at a higher price without changing
the form of the products are called
A. manufacturing
B. merchandising
C. service
D. social service
10.An increase in demand of ‘green energy’ use can affect the energy source
you use to power your equipment and vehicles. This situation is affected by
a PESTLE factor known as __________.
A. economic factor
B. environmental factor
A. legal factor
B. social factor
11.The following are considered as economic factors in market scanning
EXCEPT:
A. Company debt
B. Consumer age
C. GDP loss or growth
D. Inflation rates
12. Falling behind on technological trends, using outdated equipment or
software, and examining the technological barriers your business faces to
enter a new market all fall within this category. This situation considers
which PESTLE factor?
A. economic factor
B. legal factor
C. political factor
D. technological factor
13.Which of the following should be considered first by a prospective
entrepreneur in choosing the right location for his/her business?
A. the access of the target customers
B. the attractiveness of the store layout
C. the prevailing prices of the goods in the area
D. type of merchandise
14.When an entrepreneur improves and alter products to make it more
appealing to target customers, he/she is doing an __________ of the
product.
A. alteration
B. improvisation
C. innovation
D. invention
15.In selecting between two potential business ideas, Martha should consider
the following factors EXCEPT:
A. How big is the demand for the product/service?
B. How much capital is needed?
C. Is the business in line with Martha’s interest and expertise?
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D. Will the business make Martha famous?
Defining PESTLE
You have learned how different environmental factors can affect the market
and the business idea that you have. Let us now check how much have you
understood of this concept. Using your own words and understanding, define and
give at least three (3) examples for each PESTLE factor.
Examples:
Examples:
Examples:
Technological Definition:
Factors
Examples:
Examples:
Environmental Definition:
Factors
Examples:
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Answer Key
1. B 1. B Independent Activity
2. D 2. D 1.1:
3. C 3. C
4. D 4. D 1. NEEDS
5. B 5. B 2. WANTS
6. C 6. C 3. WANTS
7. C 7. C 4. WANTS
8. D 8. D 5. WANTS
9. B 9. B 6. NEEDS
10.B 10.B 7. NEEDS
11.B 11.B 8. NEEDS
12.D 12.D
13.A 13.A Independent Activity
14.C 14.C 1.3:
15.D 15.D Students will answer this
using their own insights.
What’s More:
Here you identify the Provide the age Basic needs Wants are
members of your of the members are things that desires, luxury,
household: of your are essential and
household. for us and our extravagance
You can include your: wellbeing. that signify
Through this wealth and an
Mother you can expensive way of
Father establish the living
Brother/s age bracket of
Sister/s your potential
Grandparents customers.
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What’s More: What’s More: What’s More:
Independent Activity Independent Activity Independent Activity
1.4: 1.5: 1.6:
1. C 1. Economic 1. False
2. B 2. Social 2. True
3. D 3. Political 3. False
4. E 4. Technological 4. True
5. A 5. Legal 5. True
6. Environmental
7. Economic
8. Legal
9. Environmental
10. Technological
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References
Ahokangas, P., et al. (2016). Future micro operators' business models in 5G.
10.13140/RG.2.1.4992.1525. Retrieved from:
https://www.researchgate.net/figure/Business-Model-definition-The-extant-
literature-on-coopetition-is-still-short-on_fig1_304947983
Baustista, G. (2014). Module 2: Environment and market. Slideshare. Retrieved
from: https://www.slideshare.net/gilbertbautista3/module-2-environment-
market?from_action=save
Cowley, E. (2007). Market scanning and roadmapping: creating a product strategy
by bearning the terrain and building a plan. What They Think. Retrieved
from: http://whattheythink.com/articles/34866-market-scanning-
roadmapping-creating-product-strategy/
Garalde-Orjalo, V., & Pefianco, E. C. (2017). Business Enterprise Simulation:
Business Incubation and ABM Integration (1st edition.). The Phoenix
Publishing House Inc.
Jobber Academy. (n.d.). PESTLE analysis for your service business. Retrieved from:
https://academy.getjobber.com/resources/articles/pestle-analysis/
Laquindanum, E.A. (2020). Enterprise Business Plan: Korean-POP Collectibles
Shop
Patni, S. (2019). Business opportunity: definition, meaning and classification.
Sensible Businessmen. Retrieved from:
https://sensiblebusinessmen.com/business-opportunity/
Writer: SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Illustrator: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
Layout Artist: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Language Reviewer:
Management Team
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