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APPLIED ECONOMICS
LEARNER’S PACKET QTR 2 WEEK 3-4 MELC 8-9
Business principles, tools, and techniques in participating in various types of industries in the
locality
NAME: SECTION:
The learner demonstrates an understanding of… industry
Content Standard analysis, its principles, tools, and techniques leading to the
identification of business opportunities
Performance Standard The Learners shall :
Apply tools and techniques for business opportunities like the
SWOT/TOWS analysis
Conduct a survey of macro and micro environments affecting
business in a locality
Most Essential Learning Competency No. of Days Teaching Dates
Apply business principles, tools, and techniques
in participating in various types of industries in
8 Part 1
the locality ABM_AE12-Ie-h-8-9
Week 3 Types of Industries and Business Tools
Write all your answer on SHORT bond paper, write the activity number.
Activity 1: Discuss Porter’s Five Forces as tool in analyzing business environment
Types of Industries
AGRIBUSINESS
Is also known as agribusiness, a farming management, production, marketing of
agricultural commodities, such as livestock and crops. Includes resource management, farming,
conservation, ranching, and sales. A business that earns most or all of its revenues from agriculture,
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an agribusiness tends to be a large-scale business operation and may experiment in farming,
processing and manufacturing and/or the packaging and distribution of products.
Modern farming, including raising crops for food and fuel, and raising animals for food,
wool, and more, is a complex industry. As farmers learn to compete and remain viable in a global
marketplace, they draw upon business principles and a complex network of agriculture and
business professionals.
MANUFACTURING
Manufacturing refers to a large-scale production of goods that converts raw materials,
parts and components into finished merchandise using manual labor and/or machines.
The finished goods can be sold directly to consumers, to other manufacturers for the
production of more complex products, or to wholesalers who distribute the goods to
retailers.
SERVICING
Service industry is an industry in that part of the economy that creates services rather
than tangible objects. Economists divide all economic activity into two broad
categories, goods and services. Goods-producing industries are
agriculture, mining, manufacturing, and construction; each of them creates some kind
of tangible object. Service industries include everything else: banking, communications, wholesale
and retail trade, all professional services.
Service Industry plays vital role in the development of a modern economy. In fact this sector
is so vital that total performance of an economy depends on the performance of the tertiary sector
RETAILING The word 'Retail' is derived from a French word with the prefix re and the verb
tailer meaning "to cut again". In other words, retailing consists of the activities involved in selling
directly to the ultimate consumer for personal, non-business use. It embraces the direct-to-
customer sales activities of the producer, whether through his own stores by house-to-house
canvassing or by mail-order business.
Retailing is the sale of goods and services to ultimate consumers for personal, non-business
use. Any institution may engage in retailing, but a firm engage primarily in retailing is called a
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retailer. Retailers serve as purchasing agents for consumer and as sales specialists for producers
and wholesaling middleman. They perform many specific activities such as anticipating
consumers' wants, developing product assortments and financing.
What is the types of your proposed business? Why do you choose that type of business?
Activity 2: Asses your proposed business by answering the following
questions and indicate in the blank what it is in SWOT, Write strength,
weakness, opportunities threats,
[Link] you do anything badly? ________, s/w/o/t
[Link] is it that you do well? _________
[Link] advantages do you have over your competitors? ________
[Link] in government policy or regulations / legislation______
[Link] makes you different from your competitors? ________
[Link] in technology and markets, eg the Internet _______
[Link] obstacles face your business? _______
[Link] are your competitors doing? _______
[Link] should be avoided? ________
[Link] causes problems or complaints? _______
Activity 3: PESTEL Analysis , Discuss by group answer individually
Identify and write on the diagram how each element of PESTLE influences your business,
look for a solutions to problems, develop marketing strategies, and you can get ahead of
your competition.
EXAMPLES: political stability or instability, tax policy, labour law, environmental law
and trade restrictions, exchange rates, inflation rates, interest rates, disposable
income of consumers and unemployment rates population growth rate, age
distribution, income distribution, career attitudes, safety emphasis, health
consciousness, lifestyle attitudes and cultural barriers level of innovation, research
and development (R&D) activity, technological change and the amount of
technological awareness that a market possesses ecological and environmental
aspects such as weather, climate, environmental offsets and climate
change corruption, foreign trade policy ,rates population growth rate, career attitudes,
safety emphasis, automation, research
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Write your answer on bond paper
Solution to the seen problem…
Activity 3: Complete the PMI matrix, write in essay and express your answer fully.
Plus Minus Interest Most
What you have learned What to study further Struck you most
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