11 SENIOR HIGH SCHOOL

APPLIED ECONOMICS
Quarter 4 – Module 3
Business Principles, Tools, and
Techniques in Participating in Various
Types of Industries in the Locality
Applied Economics – Grade 11
Alternative Delivery Mode
Quarter 4 – Module 3: Business Principles, Tools, and Techniques in
Participating in Various Types of Industries in the Locality
Second Edition, 2021

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i NegOr_Q4_AppliedEconomics11_Module3_v2
I

This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at our own pace and time. You will be enabled to process
the contents of the learning resource while being an active learner.

The module is intended for you to apply business principles, tools, and techniques in
participating in various types of industries in the locality.

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I

Pretest
Directions: Identify which type of business industry is described in the picture by matching
column A with column B. Write the letter only.
COLUMN A COLUMN B

1.

A. Manufacturing industry

B. SWOT Analysis

C. Porter’s Five Forces

2.
D. Retail or Merchandising

E. Tourism

F. International trade
3.
(export & import)

G. Banking / financial institution

H. Agriculture industry

4.
I. TOWS analysis

5.

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COLUMN A COLUMN B

6.

J. BPO

K. Construction

7.

8.

9.

10.

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’s New

“TO BE A BUSINESS ENTREPRENEUR”

Pedro is aspiring to become a business entrepreneur. He recently graduated in senior

high school and he has the knowledge of the different principles, tools, and techniques for
business which has become one of his good qualities which can make him a good leader and
a good entrepreneur. But for him to become a successful entrepreneur he has to think of an
idea for a business that can make him profitable. To achieve this, he has to answer few
questions:
1. How can he think of an idea for a business?
2. Which principles, tools and techniques shall he use in order for him to think of a
better idea for a business that will become possibly profitable?

Those are the questions that need to be answered in this lesson for us to help Pedro to
become a successful entrepreneur. In this lesson, we will identify the types of industries in
the Philippines in which we are going to choose from which type of business are we going to
open for us to evaluate and assess the strategies, techniques and tools that we will have to use
to study the current market situation which is important to ensure profitability.

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is It

The Types of Industries in the Philippines

Agriculture
The Philippines has predominantly always been an agrarian economy. Being a
tropical country, the Philippines holds a massive agrarian land mass, extending to 9.7 million
hectares of fertile soil suitable for crops like rice, coconut, pineapple, mango, paddy,
sugarcane, corn, maize, cassava, coffee, tea, bamboo, banana, and cacao. Moreover, the
country also produces healthy poultry and livestock (Business Setup, n.d.).

These are examples of industries in the agricultural sector:

Figure 1. Poultry Figure 2. Aquaculture

(DA Communication Group, 2020) (DA Communication Group, 2020)

Figure 3. Crop Farming Figure 4. Livestock

(DA Communication Group, 2020) (BusinessDiary.ph, 2018)

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Manufacturing

This refers to the processing of raw materials (ex. Ore, wood, and foodstuff) into
finished products and into something more useful through the use of tools and process that
allows individuals and business to add value to the products, selling them at a higher price in
the market thus, marketing manufacturing a profitable endeavor.

Figure 5. Manufacturing Industry (Gonzales, 2020)

Retail or Merchandising

These consist of establishments that purchase products from other businesses or

manufacturers and sell them to customers. Merchandising companies usually have
merchandising inventories in their current assets account. They usually generate profit by
providing markup prices on their goods available for sale (Abrugar, 2011).

These examples of retailers and merchandising companies:

Figure 6. Sari-sari store (Perry, 2012)

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Figure 7. Grocery stores and Department stores (Hunter, n.d.)

Touris
m

Tourism industry in the Philippines is very well known since our country has a very
rich biodiversity of tourist attraction. From beaches, heritage towns, monuments, mountains,
resorts, rainforest, island and diving spots. Since our country is endowed with rich natural
resources, the Philippines can promote more nature-based tourism. Tourism provides
significant economic benefits, particularly for small islands and provinces. Being an
archipelago, the Philippines relies heavily on tourism for its livelihood.

Figure 8. Tourism in the Philippines (Abrugar, 2016)

International Trade (Exports and Imports)

The exchange of products and services between countries is referred to as

international trade. It refers to the export and import of commodities and services in basic
terms. Products and services are sold out of the country, while goods and services are
imported into the country.
Since the Philippines is very rich in natural resources the country exports more
products, which also means more production, jobs and revenue are generated for the country.

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Figure 9. International Trade (Veem, n.d.)

Banking / Financial institutions

A financial institution (FI) is a company engaged in the business of dealing with

financial and monetary transactions such as deposits, loans, investments, and currency
exchange. Financial institutions encompass a broad range of business operations within the
financial services sector including banks, trust companies, insurance companies, brokerage
firms, and investment dealers (Hayes, 2021).

Figure 10. Banking / Financial institutions (David, 2018)

Outsourcing
Ever since the last decade, Business Process Outsourcing or BPOs have been one of the fast-
paced and rapidly expanding industries in the Philippines. BPOs have emerged as the top contributors
to the Filipino economy. The Information Technology and Business Process Association of the
Philippines (IBPAP) has forecasted that the BPO industry is bound to generate a revenue of 40 billion
USD, produce 7.6 million direct and indirect jobs within the sector, and account for 15% of the
aggregate global outsourcing market. Thus, making the BPO industry a flourishing sector to invest
into (Business Set up n.d.).

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Figure 11. Sample Outsourcing Industry (Interaksyon,
2017)
Construction

The Department of Trade and Industry (DTI) has recently stated that the Filipino Government
is opening up the construction industry to foreign investors with the idea that these investors can
potentially become local contractors by providing them construction permits. Thus, this is an ideal
time for foreign direct investors to invest in the construction sector. The PSA has reported a growth of
16.1% towards the end of 2018. Taking part in the infrastructural development of the country will
ensure its rise into becoming an infrastructure hotspot for Filipino engineers as well as foreign
investors (Business Set up, n.d.).

Applying Principles, Tools and Techniques in Creating a Business

There are many principles tools, techniques and strategies that can be applied in
creating a business. The challenge is selecting the best approach, tools and techniques to use
in a given business situation / problem or opportunity.
In this part of the lesson, we will be applying some principles tools, techniques and
strategies that are all essential in creating a business, particularly the VMOST analysis,
PESTLE / SWOT / TOWS analysis / Porters five forces. And here are some sample case
problems that will give us a simple detail of how we apply these principles, tools and
techniques.

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Case Analysis:

1. The owner of XYZ Mercantile is having a bad time in the market during this
pandemic since there are only a few people coming in the store lately. He suspected that
some factors might be because of the rise of the buying power of the consumers which enable
them to bargain more to the sellers. In which some of his competitors might have offered
discounts to their customers to gain more sales. What do you think is the best analysis to re-
evaluate the company’s status on the market over his competitors? Support your answer.

Answer: The best analysis to use in this situation is the TOWS and Porter’s Five
Forces. TOWS analysis can be very helpful to use especially when we are talking about a
business that is already standing and which needs to evaluate its currents status in the market
by identifying the current threats and opportunities the company might have to avoid
weaknesses. Porter’s Five Forces is also important since it will identify the bargaining power
of buyer and the supplier which is a big factor in the market and especially the threat of
substitutes as well.

2. Maria is planning to open up a food-stop shop near the bus stop. Since their house is
near the bus stop, she thought that it will be an advantage to open the shop since there are no
rental to pay since the shop she is planning to open is just an extension of the front of their
house. But she is a bit reluctant to this idea since there are already few shops in the locality
which would make them as her competitors. What do you think is the type of analysis best
suited to her situation?

Answer: The best analysis to use in this situation is the SWOT & TOWS analysis.
Considering the situation of Maria, SWOT analysis is best suited since we can lay down all
the strength and opportunities of her business idea and identify all of the weaknesses and
threats she might come across when she will start to operate. TOWS analysis might be very
helpful in her situations since in the statement a few strengths are already mentioned and few
threats as well. All he need is to apply the TOWS analysis in order for her to maximize all his
strength and to capitalize all of her opportunities since her location is favorable. And to
consider all of her internal strength which will help avoid the external threats.

3. Ivan is an IT graduate, who lately resigned from his work to open up a computer shop
which would cater computer servicing and selling of computer equipments, accessories and
computer set as well. He planned this idea since he was still a student in which his mission is
to cater the computer needs within their locality since there are no one yet to open a computer
shop in their rural area. He thought one of the problems that might arise from his plan is that
computer equipments and computer set are bit pricey and technologically the people in the
locality is not yet well exposed to these technologies. He wanted to make sure that this idea
of his is profitable enough. What do you think is the best analysis to prepare to help assess
the marketability of the of his plan?

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References

Online Sources

Business Setup. 7 Best Industries in the Philippines for 2019. n.d. Accessed on March 21,
2021. https://www.businesssetup.com/blog/7-best-industries-in-the-philippines

Kenton, Will. Manufacturing. 2020. Accessed on March 21, 2021.

https://tinyurl.com/3w3n4rfv

Abrugar, Victorino. Types of Business in the Philippines. 2011. Accessed on December 2021.
https://businesstips.ph/types-of-business-in-the-philippines/

Hayes, Adam. Financial Institution (FI). 2020. Accessed on March 21, 2021.
https://www.investopedia.com/terms/f/financialinstitution.asp

Pictures

DA Communications Group. DA is bent to make poultry industry productive, competitive.

2020. Accessed on March 21, 2020. https://www.da.gov.ph/da-is-bent-to-make-poultry-
industry-productive-competitive/

De Bruin, Lars. SWOT Analysis: Bringing Internal and External Factors Together. 2017.
Accessed on March 21, 2020. https://www.business-to-you.com/swot-analysis/

DA Communications Group. DA is bent to make poultry industry productive, competitive.

2020. Accessed on March 21, 2020. https://www.da.gov.ph/we-have-enough-fresh-fish-da-
chief/

DA Communications Group. Agri dept rolls out P250-million agribusiness grant for
farmer coops. Accessed on March 21, 2020. https://www.da.gov.ph/da-rolls-out-p250-
million- agribusiness-grant-for-farmer-coops/

BusinessDiary.ph. Low Cost Feeds and Feeding Methods for Livestock. 2018. Accessed on
December 2021. https://businessdiary.com.ph/414/low-cost-feeds-and-feeding-methods-for-
livestock/

Gonzales, Anna Leah E. PH manufacturing improves in June. 2020. “Photo from UNFPA
URL. Accessed on: March 20, 2021.
https://www.manilatimes.net/2020/07/02/business/business-top/ph-manufacturing-improves-
in-june/736981/

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Perry, John Martin. Typical sari-sari. 2012. Accessed on March 21, 2020.
https://en.wikipedia.org/wiki/File:Typical_sari-sari_store.jpg

Hunter, Savannah. Unstable Work Schedules and Earnings Volatility. n.d. Accessed on
December 2021. https://poverty.ucdavis.edu/post/unstable-work-schedules-and-earnings-
volatility

Abrugar, Victorino Q. 20 Tourist Destinations to Visit in the Philippines in 2016. 2016.

March 20, 2021. https://faq.ph/tourist-destinations-to-visit-in-the-philippines-2016/

Veem. 5 Ways the Philippines is Attracting International Trade. 2017. Accessed on March
20, 2021. https://www.veem.com/library/5-ways-philippines-attracting-international-trade/

David, Venus Angelli. List of General & Commercial Banks in the Philippines. 2018.
Accessed on March 20, 2021. https://doingbusinessinthephilippines.com/list-of-banks-in-the-
philippines/

Interaksyon. BPO industry’s increasing shift to automation worries call center agents,
impacts women more. 2017. Accessed on March 21, 2021. https://tinyurl.com/3uc272ss

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