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Business Strategies and Challenges in Startups

1. Anne and Cherry started an online bakery business, with Anne handling production and Cherry handling marketing. 2. As the business grew, Anne took on more production work alone and became sick. They lacked additional staff to help with increasing production demands. 3. While their initial division of labor based on skills was reasonable, their failure to hire additional workers as the business grew was a flaw that led to Anne becoming overwhelmed and unable to continue working.

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Sayra Hidalgo
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821 views6 pages

Business Strategies and Challenges in Startups

1. Anne and Cherry started an online bakery business, with Anne handling production and Cherry handling marketing. 2. As the business grew, Anne took on more production work alone and became sick. They lacked additional staff to help with increasing production demands. 3. While their initial division of labor based on skills was reasonable, their failure to hire additional workers as the business grew was a flaw that led to Anne becoming overwhelmed and unable to continue working.

Uploaded by

Sayra Hidalgo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

NAME: GANAO, FRANCINE SAYRA S.

                  SECTION: SAINT
MATTHEW

Activity 1. Modified True or False. Write True if statement is correct, write False if statement is
incorrect and underline the incorrect word and write the correct answer.   
False 1. One of the strategies of suppliers is to provide discounts to clients who buy small
quantities of a specific good or service. Large
False 2. In business, competitors are a must to ensure quality products and services. Suppliers
False 3. Affordable price means lesser market share. Greater
True 4. Soya milk is an example of substitute product for fresh milk.
False 5. Low quality means high satisfaction to customers. High
Activity 2
Directions: Read the story carefully. Analyze the business. Then answer the questions
at the end of the story.
Anne and Cherry are friends since high school. Anne is good in baking and Cherry is good in
selling.  To increase their income, they decided to put up an online business of bakery
products. They contributed 10,000 each to start the business and decided to split the profit
equally as business partners. The friends agreed that Anne will be in charge of the production
while Cherry will be in charge of the online site for taking marketing and promotion. Cherry
started taking orders while Anne is busy on baking products. The business started to get big
orders from their regular clients and other who visited their online site. After one year of
operation, while Cherry continues with her regular work Anne as in-charge of the
production, started getting sick and advised to rest. Now, Anne can no longer continue
baking for their business.
1. What went wrong with the business?
-
Since Anne is in-charge of their business’ production, her leaving the business
will be a great impact on their business. The fact that they didn’t get staffs
that could help in the production itself, which takes a lot of time and effort, is
already enough to point out what’s wrong. It could be possible if you only
rarely get clients, but if the business is starting to grow and also having big
orders, you won’t be able to handle the production alone that could cause you
to get sick just like what happened to Anne and worse, just like her, you’ll be
incapable of doing your work. They should’ve hired workers who can help
them as their business grows.
2. Do you think Anne and Cherry were right in how they manage their business?
- Well, for me, it’s both a yes and no. Since it’s their business, it will be their
choice on how they’ll manage it. It’s just right to give someone work based
on what their skills are capable of, which they clearly did in the story. Anne,
who’s good at baking, is in charge of the production while Cherry, who’s
good at selling, is in charge of marketing and promoting their products. But
then, just like what I’ve answered in question number one, they lacked staff
who’ll be able to help them, especially since they are getting big orders from
their clients. Doing the production alone won’t be enough when a business is
growing. You won’t be able to manage it properly with only one or two
workers.
3. Are they right in their decision of equal sharing of profit? Explain your answer.
- Yes, because both of them shared equal contribution in the business, which is
just right because they did not just contribute equal money, but also worked
based on their capabilities and skills that requires effort and hard work to be
able to do it. Both have done their part to have equal shares in terms of profit.

Rubric:10 points- comprehensive and analytical 8-9 points- well written and some
includes analysis; 5-7 points-well written but lacks analysis; 2-4 points- weak essay; 1
point Poorly written and lack strength

Activity 3. Now, I want you to think of a product/service business that is needed in your locality.
List down your competitors, competitive advantage customers and suppliers.  Use the figure
below. (10pts)

The competitors are those who are also offering


this kind of service to people especially those who
has better offer.

Nowadays, people are now trying GCASH


many kind of services that’s
related to this and its Comparative SERVICES The suppliers will be those in
convenience stores that has less
Advantage depends on the interest
interest fee just like 7 eleven.
every time a customer do this kind
of service.

The target customers in this kind of service are


those who uses this service to pay their bills or
shop and pay online. After all, Gcash is a way
of paying bills in an easy way without going
out and also spare the time to do so.
What I Can
Do
Essay. As a student of applied economics, what business can you recommend in this pandemic
crisis Covid 2019 and why? 
- The business I can recommend in this pandemic is selling sanitary kits. Since the
pandemic that was brought to us created chaos, every single one of us needs to
keep ourselves safe, especially that being in contact with the virus can put not just
our health but our lives in danger for there are already millions who died because
of it. In times of crisis like this, one of the best products to sell is sanitary kits
with all the essential things we need inside, such as alcohol, facemask, wipes,
sanitizer, and many more. It will not just make a profit but will also be promoting
cleanliness to each of us. When it comes to creating businesses, you must not just
look at the profit of a product but also how much it will be needed and how
important it is to make people buy it.
.(Rubric:10 points- comprehensive and analytical 8-9 points- well written and some includes
analysis; 5-7 points-well written but lacks analysis; 2-4 points- weak essay; 1 point Poorly
written and lack strength)

Assessme
nt

Choose the letter of the best answer. Write the answer on a separate sheet of paper.
a 1. These are individuals/group of individuals who buy goods and services for personal and
business use. 
a. Consumer c. Government
b. Creditors d. Suppliers
d 2. The capability of a company to produce or increase output when resources are added is
called _______________________.
a. Autonomy c. Profitability
b. Durability d. Scalability
a 3. Business is a legal entity that is separate and distinct from owner.
a. Autonomy c. Profitability
b. Durability d. Scalability

a 4. Ford and Toyota sells the same products; it evident that there is a ____________.
a. Competition c.   Alliance 
b.    Distribution d.    Threats
a 5. Competitive advantages can also be gained by business that seeks association or cooperation
with other business:
a. Alliance c. Defensive strategy
b. Cost leadership d. Differentiation 
d 6. Individual or firms who desire products and services in the market for consumption or
business.
 a. Consumers c. Government
 b. Creditors d. Supplier

b 7. Which does not belong to the group?


a. Colgate c. Close-Up
b. Head and Shoulders d. Hapee
a 8. A strategy that businesses use to distinguish themselves apart from their competitors.
a.      Differentiation c.      Defensive Strategy
b.      Alliance d.      Cost Leadership
d 9. This method occurs when a business is able to offer the same quality product as its
competitors and sell it at a lower price.
a.      Differentiation c.      Defensive Strategy
b.      Alliance d.      Cost Leadership

a 10. The advantage gained by this type of strategy is that it allows the business to further
distance itself by using defensive method.
a. Defensive strategy c. Differentiation
b. Alliance d. Cost Leadership
b 11. An economic activity that is engage in buying and selling of goods and services in
exchange of money.
a. Business c. Trade
b. Commerce d. Partnership
c 12. Business ability to use its resources to produce profit.
a. autonomy c. profitability
b. big idea d. Scalability
d 13. These are alternative goods that can easily replace by other products either perfectly or in
part.
a.  brand c.  Original
b.  clone d.  Substitutes
a 14.  Printed and online promotion is needed in starting your business. 
a. advertising c. profitability
b. big ideas d. scalability
b 15.  Entrepreneurs think big and make this idea into a reality for the success of their business. 
a. autonomy c. profitability
b. big idea d. Scalability
Additional
Activities

Think Big. In the recent ECQ, many businesses suffer a loss due to lockdown. In at least five (5)
sentences, what solutions can you suggest to make their businesses thrive?
- Ever since the pandemic started, the economy has been going down because of
the lockdown and many lost their jobs because of the businesses closing, which is
the reason why businesses need to do some strategies for them not to fall. Since
people are staying home to work or not doing any work at all, one of the best
strategies that they should do is that should promote or advertise their businesses
online, especially when they are selling a product for most people are now active
in their social media according to the statistics, and because time is now changing,
the technology is also developing. They should also consider their finance
because just being financially stable in a crisis won’t be enough for it might go
down in a blink of an eye, which is the reason why they should create strategies
like changing their suppliers, if possible, to make their products be of quality as
well as the production cost won’t be costly and many more. When the pandemic
started, people are losing their jobs and businesses lost customers because some
people need to be practical in a crisis like this, which is the reason why businesses
should offer or be able to give what their customers’ needs. Reduce the pricing if
needed or offer them things that will benefit both the consumers and the business
as well.
(Rubric:  5 points- comprehensive and analytical 4 points- well written and some includes
analysis; 3 points-well written but lacks analysis; 2points- weak essay; 1 point- poorly
written and lack strength)

Common questions

Powered by AI

A business can effectively differentiate itself from competitors by offering unique products, implementing innovative processes, providing exceptional customer service, or leveraging distinct branding and marketing. Differentiation can also occur through strategic partnerships or advanced technology offerings that enhance customer experience and create perceived value .

Lessons from the pandemic about maintaining financial stability include the importance of diverse income streams, agile budgeting to pivot operations swiftly, and ongoing financial planning to withstand temporary losses. Businesses should prioritize cash reserves and flexible cost management to endure fluctuations in revenue and maintain operational resilience .

Competitive advantage influences business strategy decisions by dictating the need to innovate or improve pricing structures. In the GCASH services example, businesses required a competitive advantage to attract customers, which involved offering better rates or additional services compared to competitors, highlighting the role of superior service and pricing in strategic decision-making .

A defensive strategy can be advantageous for safeguarding a market position as it can protect a business from competitive threats by creating barriers to entry and leveraging existing customer relationships. This strategy is proactive in maintaining market share stability, particularly in a highly competitive environment .

An equal sharing of profits can be justified in a partnership when both partners contribute equally in terms of financial investment and labor based on their unique skills. In Anne and Cherry's case, both partners contributed equal amounts of money to start the business and worked according to their strengths—Anne in production and Cherry in marketing, which justified their equal profit sharing .

Key factors to consider when starting an online business include identifying each partner’s strengths and assigning roles accordingly, ensuring adequate staffing to handle growth, and having contingency plans for operational disruptions. Anne and Cherry successfully split roles based on skills but failed to account for production scalability, leading to their business struggles when Anne fell ill .

Adaptability is crucial for businesses during a pandemic as it enables them to reassess resources, pivot marketing strategies, such as increasing online presence and adjusting pricing to retain consumer interest. Businesses need to offer essential goods or services that meet new consumer priorities, like the sanitary kits example, adapting to market needs for survival and growth during challenging times .

Anne and Cherry's situation illustrates the importance of strategic business planning by highlighting the need for anticipating future growth and the corresponding demand for resources, such as hiring sufficient staff to handle increased orders. Their business suffered when Anne couldn't continue baking due to sickness, emphasizing the need for planning in workforce management and workload distribution .

Businesses can use supplier relationships to enhance their competitive strategy by negotiating favorable terms to reduce costs, securing reliable input sources to ensure product availability, and collaborating on innovation. These strategies help in cost leadership and differentiation, providing a competitive edge .

The potential downsides of not hiring additional staff in a growing business include overburdening existing staff, leading to burnout and health issues as seen in Anne's case. Anne, responsible for production, became incapable due to illness, impacting the business negatively. Not having enough personnel means inability to meet increasing demand, which can result in lost sales and deteriorating service or product quality .

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