The document discusses screening proposed business solutions based on viability, profitability, and customer requirements. It covers evaluating the physical, societal, and industry environments of an entrepreneurial venture. The physical environment includes climate, resources, and wildlife. The societal environment includes political, cultural, economic, legal, and technological forces. The industry environment includes suppliers, customers, competitors, employees, and creditors. Tools for analyzing these environments include PESTEL analysis, environmental forces matrix, SWOT analysis, and Porter's five forces model.
The document discusses screening proposed business solutions based on viability, profitability, and customer requirements. It covers evaluating the physical, societal, and industry environments of an entrepreneurial venture. The physical environment includes climate, resources, and wildlife. The societal environment includes political, cultural, economic, legal, and technological forces. The industry environment includes suppliers, customers, competitors, employees, and creditors. Tools for analyzing these environments include PESTEL analysis, environmental forces matrix, SWOT analysis, and Porter's five forces model.
The document discusses screening proposed business solutions based on viability, profitability, and customer requirements. It covers evaluating the physical, societal, and industry environments of an entrepreneurial venture. The physical environment includes climate, resources, and wildlife. The societal environment includes political, cultural, economic, legal, and technological forces. The industry environment includes suppliers, customers, competitors, employees, and creditors. Tools for analyzing these environments include PESTEL analysis, environmental forces matrix, SWOT analysis, and Porter's five forces model.
The document discusses screening proposed business solutions based on viability, profitability, and customer requirements. It covers evaluating the physical, societal, and industry environments of an entrepreneurial venture. The physical environment includes climate, resources, and wildlife. The societal environment includes political, cultural, economic, legal, and technological forces. The industry environment includes suppliers, customers, competitors, employees, and creditors. Tools for analyzing these environments include PESTEL analysis, environmental forces matrix, SWOT analysis, and Porter's five forces model.
I. LESSON TITLE Screen the proposed solution based in viability, profitability and customer requirements. II. MOST ESSENTIAL LEARNING Recognize a potential market (TLE_ICTAN11/12PC-Ia-1) COMPETENCIES (MELCs) • Screen the proposed solution/s based on viability, profitability, and customer requirements III. CONTENT/CORE CONTENT The learner demonstrates understanding of concepts, underlying, principles, and processes of developing a business plan. Suggested IV. LEARNING PHASES Learning Activities Timeframe A. Introduction 120 mins Presentation Panimula In our previous lesson we determine the possible product/s or service/s that will meet the needs. Let’s proceed now to the next lesson about the screen, the proposed solution/s based on viability, profitability and customers’ requirements. The entrepreneur needs to have the required entrepreneurial character traits, skills, and competencies before exploiting the business opportunities. Likewise, segmenting the market is required to classify and describe the customers of his/her proposed business venture.
THE ENVIRONMENT OF THE ENTREPRENEURIAL VENTURE
A. Physical environment is the primary layer of the environment. It is composed of the
natural elements that are inherent in the earth.
a. Climate The entrepreneur must study the widespread climatic conditions of the area where he/she aims to open the business to control whether it can withstand or is fit to the climatic condition in the limited area. b. Physical Resources The entrepreneur must critically evaluate the convenience of raw materials in the area before opening a new business. c. Wildlife The entrepreneur must guarantee that his/her business donates to the protection and not the demolition of the ecological system of the local community and our country in general.
B. Societal environment is usually composed of social, political, cultural and
economic, legal, and technological forces. a. Social Forces are elements in society resulting from human relations that can affect the thoughts, behavior, attitude, actions, and even the beliefs and customs of the people. Social forces include the following, Values, Traditions, Literacy level, Consumer psychology, Time orientation, Lifestyle pattern, Professional career roles. b. Political Forces are various elements usually including political parties, political systems, and other related political groups that significantly affect the political stability of the country. Political forces include the following, Trade regulation, Taxation, Government stability, Unemployment, Workers benefits and Election practices. c. Cultural Forces refers to the combined characteristics of a group of people or ethnic groups in a specific society including the following, Religion, Language, Beliefs, Customs and Education. d. Economic Forces are factors that are mainly produced by changes or movements in the Philippine economy that have direct or indirect effects on the entrepreneurial venture includes the following, Interest rates, Inflation rates, Fiscal policies, Monetary policies, Income, Exchange rates, Employments and Consumer confidence e. Legal Forces are elements and forms that are implicated in the regulation and explanation of laws and ordinances affecting the business. f. Technological forces refer to the trends and developments in computer and information technology that have impact on business. Environmental scanning is the evaluation and full study of the environment where the business works. Political Economic Sociocultural Technological Ecological Legal Forces Forces Forces Forces Forces Forces Instability of High Low level of Readily Abundant Frequently the interest education available raw changed Philippine rates given among internet and materials tax laws Government by public social media commercial school banks graduates
1.PESTEL analysis is a tabular framework of the trends and developments in the
different forces in the external environment. The acronym PESTEL stands for Political, Economic, Sociocultural, Ecological, and Legal Forces.
Template of PESTEL analysis
2. Environmental Forces Matrix is a modified version model of the issue priority matrix adopted by Wheelen and Hunger. It broadly classifies the various environmental forces into their frequency of occurrence and level of effect to the existing or proposed business.
Template of Environmental Forces Matrix
Level of Effect on Entrepreneurial Venture
High Moderate Low
High High Moderate
Moderate High Frequency of Occurrence
Environmental Environmental Environmental
Force Force Force
High Moderate Low
Environmental Environmental Environmental Force Force Force Moderate Low Low Low
Environmental Environmental Environmental
Force Force Force
C. Industry environment is the external environmental layer where the trends and changes are simply and directly handled by the business includes: Government, a. Government refers to the system or institution that handles the affairs of a particular country. b. Suppliers refers to individual persons or companies that provide the required materials, parts, or services to the business. c. Customers are the buyers of goods or services produced or rendered by the business. d. Competitors are the forces existing in the industry environment that produce, sell or render products or services which are similar to those of the business. e. Employees are the workers of the business who are highly responsible for the production of goods or delivery of services to the consumers. f. Creditors refer to banks, financial institutions, and financial intermediaries engaged in the lending of money to the borrower usually for a free or charge in the form of interest.
INDUSTRY ANALYSIS SCANNING TOOLS
In scanning the industry environment, the entrepreneur can use the following environmental scanning tools: 1. SWOT model is the popular tool to evaluate the internal environment. 2. Forces of competition model otherwise known as the “five forces of competition,” was popularized by Michael Porter, a prominent figure in competitive strategy formulation.
