SELF-LEARNING HOME TASK (SLHT)

Subject : Applied Economics Grade: 12 Quarter: 2 Week : 3

MELC: Apply business principles, tools, and techniques in participating in various types
of industries in the locality
Competency Code: ABM_AE12-IIa-d10

Name: __________________________ Section: ________ Date: ____________

School: __________________________ District: ____________________________

I. Readings/Discussions

Industry and Environmental Analysis

In a book published by the Development Academy of the Philippines, how to prepare project
feasibility studies, it includes an industry analysis of the following important factors:

 Competition-Who are your competitors in the industry? What is the market share of these
businesses? It is very important that you know your competitors and be ready for them.
 Customers-Who will you sell your product to? The target market must be identified. Who
exactly will buy your products?
 Suppliers- Who are your suppliers, from whom one can source raw materials, intermediate
products, or even finished goods one intends to resell. A business may need
one or more suppliers. It is important to develop suppliers who are reliable in terms of
quality of what they supply and their dependability in coming up with your order.

In short, Industry Analysis is a tool that facilitates a company's understanding of its position
relative to other companies that produce similar products or services. Understanding the forces
at work in the overall industry is an important component of effective strategic planning.
Industry analysis enables small business owners to identify the threats and opportunities facing
their businesses, and to focus their resources on developing unique capabilities that could lead
to a competitive advantage.

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Environmental Analysis

 According to Robert Grant, author of “Contemporary Strategy Analysis” an environmental

analysis surveys the business landscapes to determine how external variables will affect its
decision making.
 It is the careful study of various factors influencing the business. It is the process by which
organization monitor their relevant environment to identify opportunities and threats
affecting their business.
 It helps to identify opportunities, to plan and to take appropriate actions.
 It is the study of technological factor, political factors, global factor and so on.
By carefully analyzing the environment, the businessmen come to know the opportunities
provided and threat posed by environment. Keeping in view, its strengths and weakness,
it can avail benefits of available opportunities and face threats.

Objectives of Environmental Analysis

1. To understand current and probable change in environment. It is importance that one
must be aware of existing environment and changes in various factors of environment
like changes in economic, technological, political, global environment, and so forth.
2. To provide input for decision – making. Decision – making means to select an alternate
among the various available alternates. In this process, we need information for analysing
various alternates, so that the best alternate is selected. Environmental analysis provides
such information to decision maker.
3. To ensure optimum utilization of resources. The key of business success lies in the most
effective utilization of the company’s resources.

Process of Environment Analysis

1. Monitoring- means to understand the various environment factors which affect the
business and to identify published or unpublished sources of information which affect
business. Eg. newspapers, magazines and journals
2. Searching and Scanning- needed to manage the timely availability of required I
Information by scanning and searching. Many organizations have management
information system for systematic gathering, processing, storing and providing
information.
3. Forecasting- an essential element in environment analysis. Forecasting is concerned with
estimation of direction and intensity of changes in environment factors. Forecasts of
important components of business environment help in formulating plans and strategies.
4. Evaluation and Assessment- identify and evaluate as to how these environmental changes
will affect our business so that appropriate counter strategies can be made well in time.
Assessment provides us answer to the key issues presented by the environment and their
impact on business industry and makes analysis easier.

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 The five forces are the following:
1. Intensity of industry rivalry
2. Threat of potential entrants
3. Bargaining power of suppliers
4. Bargaining power of buyers
5. Threat of substitute goods/services

The SWOT Analysis

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. In short, SWOT
Analysis is a planning tool used to understand the strengths, weaknesses, opportunities, and
threats involved in a business or project.

A SWOT analysis can be carried out for a product, place, industry, or person. It involves specifying
the objective of the business venture or project and identifying internal and external
factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT to
Albert Humphrey (2005), who led a convention at the Stanford research institute (now SRI
International) in the 1960s and 1970s using data from Fortune 500 companies. However Humphrey
himself does not claim the creation of SWOT, and the origins remain obscure.

1. Strengths – This pertains to the characteristics of the business or project that gives
advantage over others. The primary technique for identifying your business strengths
involves evaluating which operations actually make money.
2. Weaknesses – A characteristic that place the business or project at a disadvantage relative
to others. Identify weaknesses by finding parts of your operation that cost you money.
3. Opportunities – These are the elements that the business or project could exploit to its
advantage. The technique for identifying opportunities encompasses finding markets,
partnerships, products or services that you actually can pursue.
4. Threats – These are the elements in the environment that could cause trouble for the
business or project. Owning a business means facing risk. Use the technique of including
only threats that have direct impact currently on your business or that seem as if they will
impact you and your business in the next five years.

Internal and External Factors of SWOT

The internal factors are the strengths or as weaknesses depending upon their effect on the
organization’s objectives. What may represent strengths with their respect to one objective may
be weaknesses (distractions, competition) for another objective. The factors may include all of
the 4Ps – price, product, promotion and place; as well as personnel, finance, manufacturing
capabilities and so on.

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The external factors may include macroeconomic matters, technological change, legislation, and
socio-cultural changes, as well as changes in the market – place or in competitive position. The
results are often presented in the form of a matrix.

SWOT analysis may also be used in pre – crisis planning and preventive crisis management.
SWOT analysis may also be used in creating recommendations during a viability study/survey.

How to Use SWOT Analysis as a Tool in Evaluating Business Opportunity

Learned it easy, use the SWOT Template.

HERE are TIPS that will help you in using the SWOT Template

STRENGTHS WEAKNESSES

Is the business in demand in your community? What could you improve?

Is the prooduct new in your community? What should you avoid?
Is it accessible to all? What factors would cause the loss
Will your community patronize it? of your sales?

OPPORTUNITIES THREATS
Where are the good opportunities facing you? What obstacles do you face?
What are the interesting trends you are aware of? What is your competitor doing that you
What are the external factors that can increase should be worried about?
profits? Could any of your weaknesses threaten
your business?

II. Exercises

Exercise 1: Identify the STRENGTH, WEAKNESSES, OPPORTUNITY and

THREATS
Directions: Apply SWOT Analysis by using the SWOT Template. Use the following
listed words in the box and classify them as to where they belong. Put your
answers on the SWOT Template.

a. Workers are well mannered, educated about books

b. Irrelevant location
c. E-books and e-readers eliminates needs for physical books
d. Manager has poor leadership skills
e. Visible on social media and customers can even shop online via their website.
f. One stop shop for office and school supplies
g. Pandayan and Orchids Bookstore are their competitors

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 h. Competitors offer rewards points and discounts for students and teachers
i. Partnership with international publishing house
j. Patronize by the booklovers and students

Exercise 2:
Directions: Performance Task. Choose a e-business or online business that you might
like to do in the future and make a SWOT Analysis to help you decide if your
business is feasible. Make a Power point Presentation. You can do this by pair
or by trio to make it more easier and creative.
RUBRICS (50 pts.)
Excellent Good Fair Poor Very Poor

Introduction/purpose/company
background (20 pts.)

SWOT Analysis (20 pts.)

Presentation (10 pts.)

Brief Introduction of the Business:

Brief introduction of the business and company’s background. State the purpose of the business.

Strengths:
1. What does your business do well?

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2. Is your business strong in its market? (do research and support with evidence)
3. Does your business have a strong sense of purpose and the culture to support that purpose?

Weaknesses:
1. What does your business do poorly?
2. What problems could be avoided?
3. Are there any potential financial difficulties?

Opportunities:
1. Are industry trends moving upward? (support with evidence, provide sources)
2. Do new markets exist for your products or services? (do research, support with evidence,
provide sources)
3. Are there any new technologies you can exploit?

Threats:
1. Who are your competitors?
2. What are competitors doing well?
3. What obstacles do you face?
4. Are there troubling changes in your business environment such as technologies, laws, and
regulations? (do research, support with evidence, provide sources)

III. Assessment/Application/Outputs (Please refer to DepEd Order No. 31, s. 2020)

Directions: Choose the letter of the best answer.

1. This economist states that environmental analysis surveys the business landscapes to
determine how external variables will affect its decision making.
A. Adam Smith C. John Maynard Keynes
B. Alfred Marshall D. Robert Grant
2. Which statement is not true about environmental analysis?
A. It is a process by which organization monitor their relevant environment.
B. It helps identifies opportunities, plan and does take action.
C. It identifies strengths and weaknesses of the business.
D. It does not study various factors affecting the business.
3. This objective of environmental analysis puts relevance that one must be aware of existing
environment specifically factors such as changes in economic, technological political and so
forth.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.

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4. This objective of environmental analysis means to choose an alternate among the alternatives
so that the best alternates is selected and decided.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
5. This objective of environmental analysis examines opportunities and threats in the
environment.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
6. This objective of environmental analysis puts outmost importance in the proper use of the
company’s resources to make the business successful.
A. To provide input for decision-making.
B. To ensure optimum utilization of resources
C. To identify the threats and opportunities of environment.
D. To understand current and probable change in environment.
7. Proponent of SWOT Analysis since he led a convention at the Stanford Research Institute
(now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.
A. Adam Smith C. John Maynard Keynes
B. Albert Humphrey D. Robert Grant
8. SWOT analysis is a technique use to evaluate business or project. The acronym for SWOT is
_____________________________________.
A. Suppliers, Workers, Overtime, Tool
B. Staff, Workers, Operation, Time
C. Strengths, Weaknesses, Opportunity, Threats
D. Supreme, Weaknesses, Opportunity, Threats
9. If a business has a strong support in the market, then your business has ___________.
A. Opportunity C. Weakness
B. Strength D. Threat
10.When you receive a proposal for new investor, then your business has _______.
A. Opportunity C. Weakness
B. Strengths D. Threat
11.In an online business, which of the following can be classified as an opportunity?
A. Well known blogger patronize your products.
B. Discover a new level of marketing that can increase your sales
C. Customer are supportive
D. Difficulty in distributing products to rural areas

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12.Proponent of Forces Competitive Model
A. Adam Smith C. John Maynard Keynes
B. Albert Humphrey D. Michael Porter

13. In an online business, which of the following can be classified as threats in the business?
A. Competitors have well known bloggers that patronize products
B. Free shipping fee to your valued clients
C. Customers have freebies
D. Financial difficulties
14.This pertains to the characteristics of the business or project that could endanger the
profitability of the business.
A. Opportunity C. Weakness
B. Strength D. Threat
15.In an online business, when your online site has thousand followers then your business has
_________.
A. Opportunity C. Weakness
B. Strength D. Threat

IV. Suggested Enrichment/Reinforcement Activity/ies

Directions. Entrance and Exit Slip. Fill in the table below.

ENTRANCE SLIP EXIT SLIP

What I learned about SWOT Analysis

What I know about SWOT _____________________________
Analysis _____________________________
_________________________________ _____________________________
_________________________________ _____________________________
_________________________________
What I think about SWOT
Analysis
________________________________
________________________________

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References:

1. “Applied Economics, Quarter 2 Module 8.2-Lesson 2”. pp. 5-11..

2. “Applied Economics” by Rosemary P. Dinio, PhD & George A. Villasis. pp. 62-65; 68-71.

Prepared by: Reviewed by:

VIRVE JOY C. DEL SOCORRO

Teacher II
Tolotolo National High School

Approved by:

CYRUS E. WINCESLAO
School Head
Tolotolo National High School

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GUIDE

For the Teacher: Advise the students to read the reading and discussion portion before they
attempt to answer the practice exercises. Going through the parts sequentially will help them
understand easily the topic.

For the Learner: Read through the self-learning home task from the first part to the last part.
Doing so, will help you understand better the topic

For the Parent/Home Tutor: Assist your child and make sure that he/she reads the self-learning
home task from beginning to end to ensure proper understanding of the concepts.

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ANSWER KEY:

Exercise 1:
1. Strengths 2. Weaknesses 3. Opportunities 4. Threats
a. d i. b.
e. c.
f g.
j. h.

Assessment:

1. D
2. D
3. D
4. A
5. C
6. B
7. B
8. C
9. B
10. A
11. B
12. D
13. A
14. D
15. B

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