Entrepreneurship

SENIOR HIGH
SCHOOL

Quarter 1

Environmental Factors and

Sources of Opportunities
Introductory Message

For the facilitator:

Welcome to the Entrepreneurship with Grade 12 Self-Learning Module on

Environmental Factors and Sources of Opportunities!
This Self-Learning Module was collaboratively designed, developed and
reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.
 For the learner:

Welcome to the Entrepreneurship Self-Learning Module on Environmental

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

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

LEARNING OBJECTIVES: After going through this module, you are expected to:

1. determine the elements of physical environment of the

venture;

2. identify the different forces composing the societal

environment of the venture; and

3. illustrate the useful tool for environmental scanning.

PRETEST

DIRECTIONS: Put √ if the accompanying information ought to be remembered

for recognizing business opportunities. Then put x if it does not conform with
business opportunities.

1. Entrepreneurs ought to consistently on the know with the

technological changes.
2. Entrepreneur’s undertaking must be fit with the climate conditions in
their local area.
3. Government policies and administrations, do have a solid impact on
business activities.
4. Government laws guidelines do not restrict business exercises.
5. Environmental Force Matrix is a shortlist of the patterns, issues, and
advancements in the distinctive environmental forces that add to any
business dynamic.

RECAP
Given a particular tract distinguish which business ventures are appropriate
to it. Draw ♥ on the off chance that it is identified with Academic Tract, X on the off
chance that it is under Technical Vocational Livelihood tract, S if goes with Sports
tract and √ if it is identified with Arts and Design track.

Lending Services Online Internet shop Multimedia Production

Marketing Services Bakeshop Metal Working Services

Cleaning Services Gym Salon

 Perhaps the best thing about seeking after a profession as an Entrepreneur
is the fully open prospects. The potential outcomes in Entrepreneurship are
boundless. One of the best things about seeking after a lifelong utilizing the
scholarly Entrepreneurship abilities, albeit one is not an alum of the course yet
originates from different fields, for example, expressions, sports, and specialized
professional preparing is all the way open.

There is no particular equation for what precisely ought to be the premise to

turn into a successful entrepreneur. However, several studies uncover that there
are skills, characteristics, and competencies that are regular among successful
entrepreneurs. Seeing opportunities emerge from innovative thoughts that emerge
from changes in nature, government strategy, or mechanical progression is likewise
capabilities that entrepreneurs must comprehend.

LESSON

Answer these essential questions on how to start a business.

Do you possess the appropriate

entrepreneurial character, skills, and
competencies required in exploiting
opportunities?
Does the physical environment warrant
the opening and sustenance of the
business venture?
Do you have to comprehend the social
condition to ensure business
https://www.google.com/ achievement?
How to start a business?
Entrepreneurs consistently need to be pushing ahead, yet the main problem
in starting a business is essentially asking yourself what is something to begin
about followed by a progression of inquiries. Regardless of whether you have all the
accessible resources still you are barraged with various considerations on the most
proficient method to wander into any business activities. What's more, a similar
way still it is difficult to begin one.

In numerous business opportunities, the most posed inquiry by inquisitive

business people is: "what is the best business to go into?"

The standard answer they regularly get is: it depends on what you have"
which is then clarified in detail as far as the numerous inward and outside factors
on which it depends.
 In this way, you ought to be better encouraged to search inside and outside
your condition to recognize the best business for you to go into.

By taking a gander at the all-out business condition, you recognize business

openings which business people should look to exploit. What's going on in the wide
picture will enormously influence your choice of what products or services to offer.
These business openings rise out of pioneering thoughts that emerge from the
adjustments in the environment. The term external environment in this module
refers to the physical environment, societal environment, and industry environment
where the business activities transpired.

PHYSICAL ENVIRONMENT
According to Aduana, (2016, 86) Physical or the natural environment is
composed of the natural elements. It is partitioned into climate, physical resources,
and wildlife. The three natural elements of the physical environment have
significant critical commitments and impacts of business undertaking. Prospective
entrepreneurs ought to fundamentally assess them before starting their
organizations.

Climate – the climatic condition in a specific area where the business will be
set up must be assessed.

Physical resources - the availability or lack of raw materials will determine

the cost of the products. The availability of raw materials to be utilized for the
business is sufficient for long-term operation.

Wildlife- It incorporates the general synthesis of the ecological system.

Entrepreneurs must add to the conservation of the biological framework and set up
corporate social responsibility.

SOCIAL ENVIRONMENT

Wheelen & Hunger (as cited in Aduana, 2016,86), the changes in the
physical environment have an impact on the societal environment first in
terms of resource availability and costs. It is seen that all progressions that
occur in the various layers of the environment encompassing the endeavor
straightforwardly influence the business operations.
Morato (2016, 14) enumerated the following social forces which significantly
impact the business venture:

Sociocultural Environment- it includes the demographic and cultural

dimensions such as values, traditions, family structure, social status, religions,
customs, education, and dynamics of the population at large.

Political Environment- Aduana (2016, 87) underscored political forces

such as political parties, political systems, and other related political groups
generously impact the political soundness of a nation. Political forces include trade
regulations, taxation, government stability, unemployment, worker’s benefits, and
election practices.
 Economic Environment – it is driven by supply and demand forces.
Basically, it brought about by changes in the Philippine economy wherein it is a
similar factor that drives remote foreign exchange rates to fluctuate with other
market forces.

Ecological Environment – It includes resources and the ecosystem that

defines the habitat of a man, animals, plants, and minerals.

Technological Environment- It refers to the trends and development in

information technology, scientific discoveries, and technological advancement. It
includes the use of the internet, social media, and E- commerce.

Legal environment- According to Aduana (2016, 93) emphasized that

legitimate powers are components associated with enactment and understanding of
laws and ordinances influencing the business.

NATURE OF ENVIRONMENTAL SCANNING

Environmental scanning’s main task is to determine the trends and

development of various forces existing in the business condition. It is a process of
gathering data, basic assessment of events, exercises and activities, utilization of
pertinent information related to different environmental forces. Different layers of
the external environment or macro-environment (e.g. physical, societal, and
industry) and all forces comprising each environment layers are interconnected and
interrelated. Moreover, scanning the societal environment may use an analytical
approach to determine the impact on business exercises.

Aduana (2016, 94-96) explained that societal environment; entrepreneurs

can use the following analytical approaches such as:

PESTEL analysis – This is a tabular framework commonly utilized in

environmental scanning tools. PESTEL represents Political, Economic,
Sociocultural, Technological, Ecological, and Legal forces. There are no particular
guidelines on the best way to introduce this model yet it very well may be changed
depending on the need and significance of a specific factor for the business.

Table 4.1 Template of PESTEL Analysis

Political Economic Sociocultural Technological Ecological Legal

forces Resources forces forces forces Forces
Stability of High Support for The use of The use of Tax
the Inflation LGBTQ+ Gcash reusable exemptions
Philippines rate application for shopping for PWD
government payment bags
transactions instead of
plastic
 Environmental Forces Matrix - It is a shortlist of the patterns, issues, and
advancements in the distinctive environmental forces that add to any business
dynamic. It recognizes the level of its effect on the business. This matrix classifies
environmental forces into their frequency of occurrence and level of effect on the
proposed business or existing business. It utilizes markers, for example, high,
moderate, or low decide the special consideration of the forces that have high
frequencies and impacts. Wheelen & Hunger (as cited in Aduana 2016, 96),
modified the template of Environmental Force Matrix shown in table 4.2

Table 4.2 Template of Environmental Forces Matrix

Level of Effect on Entrepreneurial Venture
High Moderate Low
Frequency of Occurrence

high

High Moderate
High Environmental
Environmental Environmental
Force
Force Force
moderate

Moderate Moderate Low

Environmental Environmental Environmental
Force Force Force

Moderate Low Low

low

Environmental Environmental Environmental

Force Force Force

Let us illustrate the use of the environmental forces matrix based on the
scenario below.

The coronavirus sickness 2019 (COVID-19) pandemic has caused the ascent
and fall of a few ventures around the world. Although that internet business stages
have for some time been on the ascent, the procedure was optimized when
quarantine guidelines were established. With the nonappearance of conventional
shopping channels, clients have rushed to online business stages to make sure
about buys and exchanges. Numerous stores and cafés have likewise changed
online to serve their objective market. Thusly, internet selling helps entrepreneurs
increasingly productive and progressively effective. Web-based selling is a type of
electronic business which permits merchants to legitimately offer products or
administrations to a purchaser over the Internet utilizing an internet browser. If
the business will rehearse this technique at that point, the recurrence of the event
will be viewed as high. Simultaneously the impact on business exercises will be
viewed as high since all stages, exchanges, processes must be used to adapt to the
interest of web-based selling.

Using the environment forces matrix, the use of online selling is considered
high to the business for both frequency and effect on business. The use of online
selling as a technological force will appear in the environmental Force Matrix as
follows:
 Table 4.3 Placement of Online Selling in the Matrix.

Level of Effect on Entrepreneurial Venture

High Moderate Low
Frequency of Occurrence

high
Use of online selling
(High Environmental
Force)
moderate
low

ACTIVITIES

ACTIVITY 1: DATA COMPLETION:

Directions: Using the given perspective charts, provide a specific example of

elements that comprise the respective environment. Use the terms provided below
by listing those that belong together. You can only use a particular term once.

1.
2. 3. 4.
5. 6. 7.

8.
9 10. 11. 12. 13
14. 15. 16. 17. 18.

Physical Environment Rainy Seasons Physical Resources

Climate Social Environment Supplies of Wine

Wildlife Sociocultural forces Political forces

Economic forces Legal forces Technological forces

Duterte’s Administration Muslim traditions Inflation

Enhanced Community Online selling Endangered species

Quarantine Guidelines
ACTIVITY 2: GO BEYOND YOUR FORCES.

Directions: Using the given Environmental Matrix (PESTEL ANALYSIS), Base

on your observation, choose one existing business in your market. Then, cite
different forces you have witnessed.

BUSINESS NAME:

Political Economic Sociocultural Technological Ecological Legal

forces Resources forces forces forces Forces

WRAP-UP

FILL THE GAP!

Your business idea depends on your own capabilities, aptitudes, and

encounters at that point limited your decisions. Since every business experience is
fascinating, beginning a business is a tremendous judgment. It is the movement of
the business person to see which among these environmental elements under
physical forces have a more noteworthy effect on your business. It incorporates 3
components such as , , and . Furthermore, some
business specialists in the field of key administration center around social
environment which is commonly made out of , , ,
, , and .

VALUING

The comprehension of its business condition encourages an association to

make reasonable arrangements and guarantee their viable usage. It additionally
helps the business endeavor. It also helps the business enterprise in identification
of opportunities and threats. Environment opens new roads for the extension of
new enterprising tasks. At the point when the business atmosphere is good, new
thoughts, plans, and adventures might be placed energetically. The enterprise can
utilize its resources advantageously and derive the maximum benefits. Time should
just be dedicated to beneficial opportunities.
 TELL ME MORE! How does understanding the physical environment and
social environment close by with the utilization of environmental scanning
advantage you in the accompanying circumstances as a future entrepreneur? You
may choose at least one from the three choices and express your answer in any
event in 3 to 5 sentences.

1. Looking for possible customers

2. Creating new products or services

3. Possible business research and

development

POSTTEST

DIRECTIONS: Write TRUE if the statement is correct. Otherwise, write

FALSE and state your reason briefly.
1. The physical and societal environments don't impact or relate to one
another.
2. Entrepreneurs can’t maximize opportunities based on the following
physical environment such as climate, physical resources, and wildlife.
3. Entrepreneurs must take into genuine thought the area of the proposed
business, its atmosphere, and the accessibility of materials in the said
area.
4. The social environment incorporates the social, political, cultural,
economic, legal, and technological forces.
5. The presence and supply of raw materials in a certain locality influences
the total cost of productions.
 KEY TO CORRECTION

ACTIVITY
Physical Environment

Climate Physical Resources Wildlife

Rainy Seasons Supplies of Wine Endangered species
Social Environment

Sociocultural Political Economic Legal Technological

Muslim traditions Duterte’s Inflation Enhanced Online selling
Administration Community
Quarantine
Guidelines
Possible Answers: Business Name :

Political Forces Economic Sociocultural Forces Technological Ecological Legal Forces

Resources Forces Forces
Duterte’s Inflation Traditions(fiesta) Online Selling Lack of Curfew
administration Use of Online available Hours in
program in transactions resources ECQ
relation to
NCOV situation
 References
Aduana,Nick L. 2016. Entrepreneurship in Philippine Setting for SHS. Quezon
City:C&E publishing Inc.,

Morato, Eduardo A. Jr. 2016. Entrepreneurship. Manila City:

Rex Book Store Inc.,

Photos taken
https://www.google.com/search?q=how+to+start+my+own+business&tbm=isch&ve
d=2ahUKEwih_pWQ7ZTqAhVyNaYKHWqyAW4Q2-
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dADYIPV (6/20/2020)