Business Enterprise Simulation
Business Enterprise Simulation
ENTERPRISE
SIMULATION
By:
Batas, Carl Nathan
Fuertez, Jay Ar
Tuazon, Mhargem
Almanzor, Arshelyn
Hipolito, Gamela Rose
Quilala, Sheena Mae
Element 1: Attractiveness Score and Justification
Market Potential (25%) Vegetable Market Meat Market
1. Market Need Ratings: 5 Ratings: 5
• Does the business
provide high value to Justification: Justification:
customers? Vegetable markets are Meat markets are crucial
• Does it have a short essential for everyday living, for customers’ everyday
payback period? especially in San Vicente needs. The payback period is
• If it is a product, is it where there isn’t a nearby 6 months since meat is
durable, affordable, market to buy vegetables. consistently in demand in the
or new? The payback period is 3 market and is offered at a
• If’ it is a service, is it months since vegetables are reasonable price.
highly in demand? easy to sell and in high
demand, being necessary for
everyday living.
2. Market Structure Ratings: 5 Ratings: 5
• Is it an emerging
market or a declining Justification: Justification:
one? The vegetable market is The meat market is an
an emerging business emerging business because
because it is essential for people enjoy meat, but there
everyday life, but there are a are also many competitors in
lot of competitors. the market.
3. Market Size Ratings: 5 Ratings: 5
• Is the market already
established or still Justification: Justification:
unpredictable? The market is already The meat market will be
• Will it be something established, so it will be worthwhile because it is
worth the while of the worthwhile for the owner essential for consumers and
entrepreneur or just because vegetables are in necessary for all living
very small? high demand for various beings, as it is consumed
purposes, as they are daily.
essential for all living beings.
4. Growth Rate Ratings: 5 Ratings: 5
• Does the market
grow fast or slow? Justification: Justification:
The market will grow The market will grow
rapidly due to its location in rapidly due to its location in
San Vicente, Cabiao, Nueva San Vicente, Cabiao, Nueva
Ecija, where there will be Ecija, where there will be
many consumers making many consumers making
purchases. purchases.
5. Market Capacity Ratings: 5 Ratings: 5
• Is the market fully
capacitated or under Justification: Justification:
capacitated? The market is fully The market is fully
capacitated because the capacitated because the
owner can handle the entire owner can handle the entire
process very well, from the process very well, from the
suppliers to its store. suppliers to its store.
6. Market Share Ratings: 4 Ratings: 4
• Is it easy to acquire
new markets? Justification: Justification:
Acquiring new markets is Acquiring new markets is
easy because of its location easy because of its location
in San Vicente, Cabiao, far in San Vicente, Cabiao, far
from other marketplaces, from other marketplaces,
making it easier to attract making it easier to attract
new customers, although new customers, although
there may be competitors. there may be competitors.
7. Cost Leadership Ratings: 4.5 Ratings: 4.5
• Is it cost-efficient to
sell/operate or too Justification: Justification:
costly? It is cost-efficient because It is cost-efficient since
the owner can manage the there is high demand from
business well, and there is consumers who use meat for
also high demand for everyday living, and the
vegetables. owner can manage the
business very effectively.
Average Score: 4.79 4.79
5+5+5+5+5+4+4.5= 33.5 5+5+5+5+5+4+4.5= 33.5
33.5 ÷ 7 = 4.79 33.5 ÷ 7 = 4.79
Description: Highest Market Potential Highest Market Potential
Market Potential Score: 4.79 x 25% = 1.20 4.79 x 25% = 1.20
Element 2: Attractiveness Score and Justification
Financial Feasibility (25%) Vegetable Market Meat Market
1. Net Income Ratings: 4 Ratings: 4
• Will it be a steady or
unpredictable stream Justification: Justification:
of income? The stream of income in The stream of income in
• • Will it have high the vegetable market may be the meat market may be
cost of sales or will somewhat unpredictable, as it somewhat unpredictable, as it
it be cost-efficient? can fluctuate depending on can fluctuate depending on
the season, resulting in either the season, resulting in either
high or low revenue. The high or low revenue. The
cost of sale may be on the cost of sale may be on the
high side since they acquire high side since they acquire
their produce directly from their produce directly from
suppliers rather than growing suppliers rather than growing
it themselves. it themselves.
2. Return on Investment Ratings: 5 Ratings: 5
and Capital Recovery
Period Justification: Justification:
• Will the capital be The investment capital Investment capital can
recovered faster and may recover more quickly recover quickly since meat is
with high returns? since there are not many consumed by nearly
competitors in San Vicente, everyone, and there are not
and consumers rely on the many competitors in the
market for their everyday market.
needs.
3. Capitalization Ratings: 4 Ratings: 4
• Does it have
reasonable or Justification: Justification:
unreasonable Higher capital is needed n the meat shop, higher
capitalization? in the vegetable business. capital is required by buying
Buying vegetables from meat in bulk. However, it’s
suppliers in bulk, they are easy to sell to consumers.
then sold in her shop located
on the roadside in San
Vicente, Cabiao, Nueva
Ecija.
4. Free Cash Flow Ratings: 4 Ratings: 4
• Will the business
still be liquid after Justification: Justification:
allocating funds to It will depend on the setup It will depend on the setup
capital because the business can because the business can
expenditures? offer cash or installment for offer cash or installment for
• Will it have high or bulk buying. Sales growth bulk buying. Sales growth
low sales growth? and gross income are and gross income are
• Will it be asset or expected to be n the high side expected to be on the high
sales intensive? since the business is build in side since the business is
• Will it require San Vicente, Cabiao, Nueva built in San Vicente, Cabiao,
higher or lower Ecija. Nueva Ecija.
working capital?
• Will it incur high or
low research and
development costs?
• Will it have high or
low gross income?
Average Score: 4.25 4.25
4+5+4+4= 17 4+5+4+4= 17
17 ÷ 4 = 4.25 17 ÷ 4 = 4.25
Description: High Financial Potential High Financial Potential
Market Potential Score: 4.25 x 25% = 1.06 4.25 x 25% = 1.06
Element 3: Attractiveness Score and Justification
Competitive Advantage Vegetable Market Meat Market
and Entrepreneurial
Resources (50%)
1. Control Over Prices, Ratings: 2.5 Ratings: 3
Distribution, and Costs
• Will the business Justification: Justification:
have a strong or weak Ms. Jesussa Quintero Ms. Jesussa Quintero
control over prices, does not have control over lowers the price by around
distribution, and the vegetables' prices, as the P1 to P5 pesos on some of
costs? distribution costs are
her products while
variable, and there are
competitors. maintaining good service
for her customers.