Business Enterprise Simulation q3 Module 1
Business Enterprise Simulation q3 Module 1
Business Enterprise Simulation q3 Module 1
Writer:
SHEILA MARIE ANN M. GALURA
T-II San Isidro HS, Bacolor South
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
ELSA A. LAQUINDANUM – MT- I
SHARINETTE R. CORONEL – Teacher II
What I Need to Know
This module was designed and written with you in mind. It is here to help you
master the introduction to Business Enterprise Simulation. This module is crafted to
allow you to use it in many different learning situations with the language used
recognizing the diverse vocabulary level of students. The discussion of the topics is
arranged to help you follow and understand the flow of the lessons.
After going through this module, you are expected to:
• Identify the needs and wants of the community through an interview;
• Use the identified needs and wants to generate potential business ideas;
• Define and cite examples of environmental factors that may affect the market.
What I Know
Before we tackle this module, let us first check your current knowledge based from
your previous subjects. This way, the teacher can gauge how he/she can guide you
better through this module. Read and analyze each items carefully before answering.
1. These are things that are essential for us to be able to live with dignity and pride
within the community.
A. commodity C. luxury
B. needs D. wants
2. These are considered as luxuries and extravagance that signify wealth and
expensive way of living.
A. commodity C. luxury
B. needs D. wants
3. The following are considered as needs EXCEPT:
A. education C. new high-end cellphone
B. food D. sanitation
4. Introducing an entirely new product to the market is called __________.
A. alteration C. alteration
B. improvement D. improvement
5. It is an undertaking by a person or a group of persons who are partners, or of
stockholders who own a juridical entity known as a corporation. Its main
objective is to earn profit for the owners.
A. aggregate C. government
B. business D. industry
6. It is defined as a good or favorable change available to run a specific business
in a given environment at a given point of time.
A. business enterprise C. business opportunity
B. business idea D. business plan
7. Good business opportunities and ideas can be generated from the following
sources EXCEPT:
A. A new product introduced by the competitor
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B. Ideas given by the knowledgeable persons
C. Unsuccessful stories of known entrepreneurs or friends or relatives
D. Watching emerging trends in demands for certain products
8. It is defined as the process of continually and actively monitoring the external
environment, in order to identify customer needs, anticipate competitive
actions, and identify technological changes which will provide new market
opportunities or market disruptions.
A. business scanning C. industry scanning
B. environmental scanning D. market scanning
9. The firms, which are also known as the “buy and sell” businesses, purchase
products and sells the same at a higher price without changing the form of the
products are called
A. manufacturing C. service
B. merchandising D. social service
10. An increase in demand of ‘green energy’ use can affect the energy source you
use to power your equipment and vehicles. This situation is affected by a
PESTLE factor known as __________.
A. economic factor C. legal factor
B. environmental factor D. social factor
11. The following are considered as economic factors in market scanning EXCEPT:
A. Company debt C. GDP loss or growth
B. Consumer age D. Inflation rates
12. Falling behind on technological trends, using outdated equipment or software,
and examining the technological barriers your business faces to enter a new
market all fall within which PESTLE factor?
A. economic factor C. political factor
B. legal factor D. technological factor
13. Which of the following should be considered first by a prospective entrepreneur
in choosing the right location for his/her business?
A. the access of the target customers
B. the attractiveness of the store layout
C. the prevailing prices of the goods in the area
D. type of merchandise
14. When an entrepreneur improves and alter products to make it more appealing
to target customers, he/she is doing an __________ of the product.
A. Alteration C. Innovation
B. Improvisation D. Invention
15. In selecting between two potential business ideas, Martha should consider the
following factors EXCEPT:
A. How big is the demand for the product/service?
B. How much capital is needed?
C. Is the business in line with Martha’s interest and expertise?
D. Will the business make Martha famous?
3
Lesson Identifying Business
1 Opportunities through
Market Scanning
Building a business enterprise is not easy. Most successful business people start
from scratch and worked their way to the top. They utilized business skills and
experience to make sound decisions that helped them achieve their business goals.
However, before you start the business, you should be able to first scan the market and
identify the business opportunities present for you to capitalize on.
Before we start this module, let us first refresh our memories and recall the
different terms and concepts that we have discussed and studied from our previous
ABM subjects. Answer the crossword puzzle below using the clues provided.
1 2
5 6
4
Notes to the Teacher
The teacher must take into considerations the essential skills needed in
the development of this competency including the background knowledge
which may reinforce learning. This module will help the learners link the gap
of learning to achieve mastery of the lesson.
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Are you ready to learn
today? In this module, you will
What is It know how to generate and
identify a sound business
idea.
We’re you able to identify the terms being asked? Let’s see how they are related in
our lesson.
Basic needs are things that are essential for us and our wellbeing. These are the
things that we cannot do without. These include:
• Basic commodities for consumption,
• Clothing and other personal belongings,
• Shelter, sanitation, and health,
• Education and skills-generation,
• Relaxation and leisure
On the other hand, wants are desires, luxury, and extravagance that signify
wealth and an expensive way of living. Wants or desires are considered above all the
basic necessities of life. For instance, every individual has an eagerness or passion for
non-basic needs such as:
• Fashion accessories, shoes, clothing,
• Travelling around the world,
• Eating in an exclusive restaurant,
• Watching movies, concerts, and plays,
• Having luxurious cars,
• Wearing expensive jewelry, perfume,
• Living in impressive homes
The needs and wants of people are the basic indicators of the kind of business
that you may engage into. The knowledge for the needs and wants can serve as a
measure for the success of your business idea as you will have an idea which product
or service will generate more demand from your target market.
1. Examine the existing goods and services. Are you satisfied with the
product/service? What do other people who use the product/service say about
it? How can it be improved? Improving an existing good or service may generate
a good business opportunity for you. You can improve the materials used in
producing the product. You can also introduce new ways on how the product can
be used, making it more useful and adaptable to the customers’ many needs.
Improving or enhancing an existing product or service is known as innovation.
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You can also invent a new and improved product or service to replace the existing
ones.
2. Examine the present and future needs. Look and listen to what customers,
institution, and communities are missing in terms of goods and services.
Sometimes, these needs are already obvious and recognized immediately. Other
needs, on the other hand, are not as obvious since they can only be identified in
the future and in the event of certain developments in the community.
3. Examine how the needs are being satisfied. Needs for the products and
services are referred to as market demand. To satisfy these needs is to supply the
products and services that meet the demands of the market. The term market
refers to whoever will use or buy the product or service, and these may be people
or institutions such as other businesses, establishments, organizations, or
government agencies. There is a very good business opportunity when there is
absolutely no supply to a pressing market demand. Businesses or industries in
the locality also have needs for goods and services. Their needs for raw materials,
maintenance, and other services such as selling and distribution are good
sources of ideas for business.
4. Examine the available resources around you. Observe what materials or skills
are available in abundance in your area. A business can be started out of
available raw materials by selling them in a raw form and by processing and
manufacturing them into finished products. The work and experience that you
may have will provide you with business opportunities to acquire the needed
skills which will earn for you extra income, should you decide to engage in
income-generating activities. With your skills, you may also tinker around with
various things in your spare time and invent new products.
5. Read magazines, news articles, and other publications on new products
and techniques or advances in technology. The internet also serves as a
library where you may browse and surf on possible businesses. It will also guide
you on how to put the right product in the right place, at the right price, at the
right time. Listing of possible businesses to set up in an area may also be
available from banks and local non-government organizations.
Selecting the Right Business Idea
According to Bautista (2014), once you have started identifying the business
opportunities within your reach, you can eventually see that there are various
possibilities available for you. However, it very unlikely that you will have enough
resources to pursue all of them at once. Hence, you have to know which one to choose.
You have to select the most promising one from among hundreds and one ideas.
It will be good to do this in stages. In the first stage, you should screen your ideas to
narrow them down to about five choices. In the next stage, trim down the five choices
to two options. In the final stage, choose between the two and decide which business
idea worth pursuing (Bautista, 2014).
Bautista (2014) stated that in screening your ideas, examine each one in terms
of the following factors:
• How much capital is needed to put up the business?
• How big is the demand for the product/service? Do many people need this
product/service and continue to need it for a long time?
• How is the demand met? Who are processing the products/services to meet the
need (competition or demand)? How much of the need is now being met (supply)?
• Do you have the background and experience needed to run this particular
business?
• Will the business be legal, not going against any existing or foreseeable
government regulation?
• Is the business in line with your interest and expertise?
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Scanning the Market
Ed Crowley (2007) defined market scanning as the process of continually and
actively monitoring the external environment in order to identify customer needs,
anticipate competitive actions, and, identify technological changes which will provide
new market opportunities or market disruptions. You must constantly be probing and
exploring the external environment to identify significant changes and explore
competitive activity.
The following list from Jobber Academy (n.d.) provides a non-exhaustive overview
of the different factors one must consider in the Market Scanning. These factors are
known as the PESTLE factors:
• Political factors usually involve things that impact your business from a
government or legal standpoint. Political is similar to legal and social, but is a bit
different, as political factors seem to change more often. Some examples are:
o Income Tax and other taxes
o Minimum wage laws
o Union influences
o National and local policies
• Economic factors are financial fluctuations that are typically out of your control.
For example, interest rates go down meaning your business loan cost more last
year than it will this year. Some other examples include:
o GDP loss or growth
o Inflation rates
o Company debt
o Income of potential customers in your area
o Employee salary trends in the service business industry
• Social factors refer to the cultural norms and attitudes of your targeted
demographic and that of your employees, partners, competitors, etc. For
example, an increase in demand of ‘green energy’ use can affect the energy source
you use to power your equipment and vehicles. Other factors are:
o Customer age
o Cultural norms and traditions
o Population growth or decline
o Service career attitudes
o Diversity
o Religious influences
o Public health and safety
• Technological factors have a direct impact on the cost of doing business and
the efficiency of your business. Falling behind on technological trends, using
outdated equipment or software, and examining the technological barriers your
business faces to enter a new market all fall within this category. Other factors
to consider include:
o Automation opportunities
o Technology incentives, like tax credits
o Better equipment coming on the market
o Service business software updates
o Improvements to mobile devices and other communications
• Legal factors will directly influence the company’s operations of your service
business right now. Some legal factors can also determine your final cost of doing
business and impact demand for your company’s services. These legal factors
include:
o Consumer protection laws
o Various insurance laws and mandates
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• Environmental factors refer to anything that can impact your business from an
ecological or environmental standpoint. This part of the analysis will matter more
for some industries than others. For example, if you own a landscaping business,
you’ll need to concern yourself with the weather every single day, while plumbers
can work indoors. Other environmental factors may include:
o Environmental impact of service business practices
o Geography
o Access by road, rail, air
o Waste management
o Local attitudes towards pollution
_________ 1. _________ 5.
_________ 2. _________ 6.
_________ 3. _________ 7.
_________ 4. _________ 8.
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Independent Activity 1.2: Household Needs and Wants
To be able to identify the potential business opportunities present in the market,
you must be able to identify the potential business opportunities through the needs and
wants of your market. You can begin doing this by starting small and observing your
own household first.
Conduct an interview to the members of your household. Using the table below
and fill in the data and ask your family members as to what their needs and wants are.
Family Member Age Needs Wants
Example:
books, nutritious food, eBook reader, fast
You 17 shelter food, mansion
Will the business be legal, not going against any existing or foreseeable
government regulation?
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Independent Activity 1.4:
Below are different situations wherein a business idea was generated. Determine
which among the following ways to create a good business idea was used.
_____ 1. Robert observed that during the COVID-19 pandemic, a need for
facemasks emerged. Being a good tailor, he made cloth facemasks which
he sells in the market at an affordable price.
_____ 2. Lucia started selling school supplies and bags in April. She looks forward
to the upcoming start of classes in June.
_____ 3. Aling Nena has an abundance of banana trees in her backyard. Being a
good cook, she started creating unique banana dishes that she sells to
her neighbors.
_____ 4. Sebastian read a business article that discusses business opportunities
for motorcycle owners and drivers in the food delivery business. Having
his own motorcycle, he decided to push through with the said business
idea.
_____ 5. Felisa observed that the milk tea industry is booming in her community.
She also innovated a new recipe for milk tea that she wants to use in her
own milk tea business.
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Let us now generalized our
What I Have learnings! We have
Learned encountered different
concepts in this module.
1. Basic _________ are things that are essential for us and our wellbeing. On the
other hand, _________ are desires, luxury, and extravagance that signify wealth
and an expensive way of living
2. It takes skills and talent to be able to recognize good business _________, whether
it is some new ideas that you want to experiment with or a previous idea that you
want to develop.
3. There are different ways by which you may generate ideas for your business.
These include: (1) _____________________________; (2)
_____________________________; (3) _____________________________; (4)
_____________________________; and (5) _____________________________.
4. It very unlikely that you will have enough resources to pursue all of the business
ideas that you have at once. Hence, you have to
__________________________________.
5. When scanning the market, one can consider different factors, namely: _________
factors, _________ factors, _________ factors, _________ factors, _________ factors,
and _________ factors.
1.
2.
3.
4.
5.
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Let us now check how
we fare in our Post-
Assessment Assessment Test. Let’s
begin! Good luck!
After studying and analyzing the mini-lesson of this module, let us now check how
much knowledge you have gained. Read and analyze each items carefully before
answering.
1. These are things that are essential for us to be able to live with dignity and pride
within the community.
A. commodity C. luxury
B. needs D. wants
2. These are considered as luxuries and extravagance that signify wealth and
expensive way of living.
A. commodity C. luxury
B. needs D. wants
3. The following are considered as needs EXCEPT:
A. education C. new high-end cellphone
B. food D. sanitation
4. Introducing an entirely new product to the market is called __________.
A. alteration C. alteration
B. improvement D. improvement
5. It is an undertaking by a person or a group of persons who are partners, or of
stockholders who own a juridical entity known as a corporation. Its main
objective is to earn profit for the owners.
A. aggregate C. government
B. business D. industry
6. It is defined as a good or favorable change available to run a specific business
in a given environment at a given point of time.
A. business enterprise C. business opportunity
B. business idea D. business plan
7. Good business opportunities and ideas can be generated from the following
sources EXCEPT:
A. A new product introduced by the competitor
B. Ideas given by the knowledgeable persons
C. Unsuccessful stories of known entrepreneurs or friends or relatives
D. Watching emerging trends in demands for certain products
8. It is defined as the process of continually and actively monitoring the external
environment, in order to identify customer needs, anticipate competitive
actions, and identify technological changes which will provide new market
opportunities or market disruptions.
A. business scanning
B. environmental scanning
C. industry scanning
D. market scanning
9. The firms, which are also known as the “buy and sell” businesses, purchase
products and sells the same at a higher price without changing the form of the
products are called
A. manufacturing
B. merchandising
C. service
D. social service
13
10. An increase in demand of ‘green energy’ use can affect the energy source you
use to power your equipment and vehicles. This situation is affected by a
PESTLE factor known as __________.
A. economic factor
B. environmental factor
A. legal factor
B. social factor
11. The following are considered as economic factors in market scanning EXCEPT:
A. Company debt
B. Consumer age
C. GDP loss or growth
D. Inflation rates
12. Falling behind on technological trends, using outdated equipment or software,
and examining the technological barriers your business faces to enter a new
market all fall within this category. This situation considers which PESTLE
factor?
A. economic factor
B. legal factor
C. political factor
D. technological factor
13. Which of the following should be considered first by a prospective entrepreneur
in choosing the right location for his/her business?
A. the access of the target customers
B. the attractiveness of the store layout
C. the prevailing prices of the goods in the area
D. type of merchandise
14. When an entrepreneur improves and alter products to make it more appealing
to target customers, he/she is doing an __________ of the product.
A. alteration
B. improvisation
C. innovation
D. invention
15. In selecting between two potential business ideas, Martha should consider the
following factors EXCEPT:
A. How big is the demand for the product/service?
B. How much capital is needed?
C. Is the business in line with Martha’s interest and expertise?
D. Will the business make Martha famous?
14
Additional Here is an additional activity
that you can utilize to boost
Activities your learnings.
Defining PESTLE
You have learned how different environmental factors can affect the market and
the business idea that you have. Let us now check how much have you understood of
this concept. Using your own words and understanding, define and give at least three
(3) examples for each PESTLE factor.
Examples:
Examples:
Examples:
Technological Definition:
Factors
Examples:
Examples:
Environmental Definition:
Factors
Examples:
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What’s More:
Independent Activity 1.2
Family Member Age Needs Wants
Here you identify the Provide the age Basic needs Wants are
members of your of the members are things that desires, luxury,
household: of your are essential and
household. for us and our extravagance
You can include your: wellbeing. that signify
Through this wealth and an
• Mother you can expensive way of
• Father establish the living
• Brother/s age bracket of
• Sister/s your potential
• Grandparents customers.
What’s More: What I Know Assessment
Independent Activity 1. B 1. B
1.1: 2. D 2. D
3. C 3. C
1. NEEDS 4. D 4. D
2. WANTS 5. B 5. B
3. WANTS 6. C 6. C
4. WANTS 7. C 7. C
5. WANTS 8. D 8. D
6. NEEDS 9. B 9. B
7. NEEDS 10.B 10.B
8. NEEDS 11.B 11.B
12.D 12.D
Independent Activity 13.A 13.A
1.3: 14.C 14.C
Students will answer this 15.D 15.D
using their own insights.
Answer Key
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What’s More: What’s More: What’s More:
Independent Activity Independent Activity Independent Activity
1.6: 1.5: 1.4:
1. False 1. Economic 1. C
2. True 2. Social 2. B
3. False 3. Political 3. D
4. True 4. Technological 4. E
5. True 5. Legal 5. A
6. Environmental
7. Economic
8. Legal
9. Environmental
10. Technological
References
Ahokangas, P., et al. (2016). Future micro operators' business models in 5G.
10.13140/RG.2.1.4992.1525. Retrieved from:
https://www.researchgate.net/figure/Business-Model-definition-The-extant-
literature-on-coopetition-is-still-short-on_fig1_304947983
Baustista, G. (2014). Module 2: Environment and market. Slideshare. Retrieved from:
https://www.slideshare.net/gilbertbautista3/module-2-environment-
market?from_action=save
Cowley, E. (2007). Market scanning and roadmapping: creating a product strategy by
bearning the terrain and building a plan. What They Think. Retrieved from:
http://whattheythink.com/articles/34866-market-scanning-roadmapping-
creating-product-strategy/
Garalde-Orjalo, V., & Pefianco, E. C. (2017). Business Enterprise Simulation: Business
Incubation and ABM Integration (1st edition.). The Phoenix Publishing House Inc.
Jobber Academy. (n.d.). PESTLE analysis for your service business. Retrieved from:
https://academy.getjobber.com/resources/articles/pestle-analysis/
Laquindanum, E.A. (2020). Enterprise Business Plan: Korean-POP Collectibles Shop
Patni, S. (2019). Business opportunity: definition, meaning and classification. Sensible
Businessmen. Retrieved from: https://sensiblebusinessmen.com/business-
opportunity/
Writer: SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Illustrator: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
Layout Artist: ELSA A. LAQUINDANUM – MT-I San Isidro HS, Bacolor South
SHEILA MARIE ANN M. GALURA – T-II San Isidro HS, Bacolor South
SHARINETTE R. CORONEL – T-II FNAS, Florida Blanca
Language Reviewer:
Management Team
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