Learning Area Grade Level 12

W1
Applied Economics
Quarter Fourth Quarter (4th QTR) Date
I. LESSON TITLE Industry Analysis, Principles, Techniques, Towards Business Opportunities
II. MOST ESSENTIAL LEARNING The learner applies business principles, tools, and techniques in various
COMPETENCIES (MELCs) types of industries applies ABM_AE12II-a-d1
III. CONTENT/CORE CONTENT Industry Analysis Leading to the Identification of Business Opportunities
IV. LEARNING PHASES AND LEARNING ACTIVITIES
I. Introduction (Time Frame: 20 minutes)

Good day! At the end of the lesson, you will be able to:
1. analyze the different steps in identifying business opportunities,
2. explain the different processes in identifying business opportunities, and
3. discuss the SWOT Techniques.

Before we proceed, find out the meaning of the following words.

Learning Task #1: Directions: Give the meaning of the following words and use it in a business sentence. Write it in your
notebook.
1. Market Survey 4. Market
2. Scanning 5. SWOT Analysis
3. Forecasting

D. Development (Time Frame: 100 minutes)

An environmental analysis plays an essential role in business management by providing possible opportunities or threats
outside the company in its external environment. The purpose of an environmental analysis is to help to develop a plan by
keeping decision-makers within an organization. The changes can include exchanging of executive parties, increasing
guidelines to decrease pollution, technological developments, and fluctuating demographics. An environment analysis helps
the industries to improve the outline of their environment to find more opportunities or threats.
The environmental analysis has to be implemented at an internal level, as well as an external level, to identify all
opportunities and threats of the external and internal environment. Moreover, this analysis is helpful to find the strengths and
weaknesses of any organization. External analysis of the environment generally emphases on the customers. External
environmental also refers to the aspects of the technological, commercial, economic, financial, political, regulatory, socio-
cultural and physical environments of an organization. Whereas, the internal analysis focuses on the current situation of
resources, strengths or weakness of an organization. Internal environment refers to the capabilities and limitations of the
organization and it has no limitations.
The process of environmental analysis consists of the following stages:
1. Environmental Scanning
Scanning means the process of analyzing the environment for identifying the factors which may influence the business. Its
purpose is to identify the emerging trends or early warning signals. Such trends may have evolved over time or may have
appeared suddenly. Environmental scanning alerts the organization to potentially significant forces in the external
environment so that suitable strategic initiatives may be taken before these forces become critical for the organization,
Scanning is basically exploratory in nature. There are so many environmental factors which influence the operation of a
business. All these factors may not be relevant to an enterprise. Therefore, the critical and high priority factors must be
identified. Several factors, e.g., managerial philosophy, age, size, power, geographic dimension, type of business of the
organization influence the selection of relevant environmental factors.
2. Environmental Monitoring
At this stage information from the relevant environment is collected. Once the relevant factors in the environment are
identified, adequate data about these factors are gathered so as to ascertain their emerging pattern and trends. Monitoring
is a follow up and deeper analysis of relevant environmental forces identified through scanning. Several techniques are used
to collect the relevant facts about environmental factors. Company records, publications, spying and verbal talks with the
employees, customers, dealers, suppliers and competitors are the main sources of data.
3. Environmental Forecasting
Forecasting is the process of estimating the relevant events of the future based on the analysis of their past and present
behavior. It is necessary to anticipate future events before any strategic plans are formulated.
Forecasting can focus on future aspects of the environment which affects the organization. Forecasts are made for
economic, social, political and technological elements of the environment, several techniques like time series analysis,
econometric model, scenario building, Delphi method, etc. are used for the purpose of forecasting.
4. Diagnosis
Environmental factors are assessed in terms of their impact on the organization. Some factors in the environment may entail
an opportunity while others may pose a threat to the organization. The degree of impact may also vary from one factor to
another. SWOT analysis, ETOP and other such techniques are used for environmental diagnosis.
https://pestleanalysis.com/what-is-environmental-analysis/

Learning Task 1
Identify the corresponding environmental analysis stage pertaining to by the following statements.
__________1. the assessment stage in environmental business analysis
__________2. it pertains to the future aspects of the business
__________3. the process of verbal talks with the employees, customers, dealers, suppliers and competitors
__________4. the environmental stage who uses Delphi method
__________5. this stage identifies the emerging trends or early warning signals in a business
Methods and Techniques of External Environment Analysis
1. SWOT Analysis
SWOT analysis means analyzing the strength, weaknesses, opportunities, and threats of the business environment. Strengths
and weaknesses are internal factors whereas opportunities and threats are external factors affecting the performance of the
business. SWOT analysis is an efficient technique in understanding both internal and external environments of a business which
thereby helps in framing better strategies.
2. Porter’s Five Forces Model
This technique analyses the five forces that affect business. Porter’s five forces model focuses on potential entrants, buyers,
suppliers, existing competitors and alternatives products or services available in the market. The proper study of these forces
helps in creating better policies that will help in keeping business ahead.
Environmental Threat and Opportunity Profile Analysis (ETOP)
ETOP method analyses the environmental threats and opportunities. It identifies the opportunities available to businesses and
threats that may restrain it. ETOP technique divides the environment into different sections and performs a systematic
environmental scanning to study their impact on business.
3. PESTLE Analysis
PESTLE analysis is an external environment analysis tool that focuses on analyzing the political, economic, social,
technological, legal and environmental forces influencing the business. PESTLE provides a full overview of the external
environment by analyzing these 6 forces and helps in strategic planning for the business.
4. Market Survey
Market survey is another effective tool used for analyzing the external environment of business. It involves acquiring
information by interacting with the peoples in the market which helps in knowing the new trends and challenges. This way
companies are able to meet the requirements and likings of customers.
5. Forecasting
Forecasting means predicting the future information on the basis of collected information. Here future events are estimated
using different techniques like survey method, observation method, time series analysis, brainstorming

https://www.googlesir.com/methods-techniques-external-environmental-analysis/

E. Engagement (Time Frame: 60 minutes)

Learning Task 2
Answers Column I Column II
1 Predicting the future events of a business A SWOT Analysis
2 Acquiring information by interacting with the peoples in the market B Porter’s Five Forces Model

3 It provides a full overview of the external environment C PESTLE Analysis

4 Uses Environmental Threat and Opportunity Profile Analysis D Market Survey
5 It identifies your business opportunities and strengths E Forecasting
Ways to Identify Business Opportunities
1. Listen to your potential clients and past leads.
When you’re targeting potential customers listen to their needs, wants, challenges and frustrations with your industry. Have
they used similar products and services before? What did they like and dislike? Why did they come to you? What are their
objections to your products or services?
This will help you to find opportunities to develop more tailored products and services, hone your target market and identify
and overcome common objections
2. Listen to your customers.
When you’re talking to your customers listen to what they are saying about your industry, products and services. What are
their frequently asked questions? Experiences? Frustrations? Feedback and complaints?
This valuable customer information will help you identify key business opportunities to expand and develop your current
products and services
3. Look at your competitor.s
Do a little competitive analysis (don’t let it lead to competitive paralysis though) to see what other startups are doing, and
more importantly, not doing? Where are they falling down? What are they doing right? What makes customers go to them
over you?
Analyzing your competitors will help you identify key business opportunities to expand your market reach and develop your
products and services.
4. Look at industry trends and insights.
Subscribe to industry publications, join relevant associations, set Google alerts for key industry terms and news and follow
other industry experts on social media.
Absorb yourself in your industry and continually educate yourself on the latest techniques and trends

https://www.smartcompany.com.au/startupsmart/advice/business-planning/four-ways-to-identify-more-business-
opportunities/

A. Assimilation (Time Frame: 30 minutes)

Learning Task 3
Choose ways in identifying Business Opportunities mentioned in the following statements. Write the answer on your notebook
A. Look at your competitors
C. Listen to your potential clients and past leads
B. Listen to your customers
D. Look at industry trends and insights

1. Mr. Gokongwei uses different social media platforms for his business.
2. Mr. Lucio Tan attends regularly to webinars on business trends.
3. Mr. Cruz interviewed new customers who are regular customers of his competitor.
4. Mrs. Santos provides suggestion box in her restaurant business
5. Mr. Montemayor tasted the ice cream of his competitor
6. Mrs. Ong joins online business seminars for beginners.
7. Mr. Gomez creates surveys about his customer’s likes and dislikes.
8. Mrs. Reyes introduces a new flavor to her Milk Tea House.
9. Mr. Moreno creates advertisement to his salon business.
10. Mr. Alas compares his product from brand X and Y.
Learning Task 4
Directions: Create a SWOT analysis of your favorite fast-food chain. Write the answer in your notebook

V. ASSESSMENT (Time Frame: 20 minutes)

Directions: Complete the table below by citing existing business in your area.

Types of Business Observable Problem Recommendations

1
2
3
4
5
VI. REFLECTION (Time Frame: 10 minutes)

In your notebook, write your personal insights about the lesson using the prompts below.
I understand that _____________________________________________________________________________________________.
I realize that _____________________________________________________________________________________________________.
I need to learn more about ________________________________________________________________________________________.
● Communicate your personal assessment as indicated in the Learner’s Assessment Card.
Personal Assessment on Learner’s Level of Performance
Using the symbols below, choose one which best describes your experience in working on each given task. Draw it in the column
for Level of Performance (LP). Be guided by the descriptions below:
✰ - I was able to do/perform the task without any difficulty. The task helped me in understanding the target content/ lesson.
✔ - I was able to do/perform the task. It was quite challenging, but it still helped me in understanding the target content/lesson.
? – I was not able to do/perform the task. It was extremely difficult. I need additional enrichment activities to be able to do/perform this
task.
Learning Task LP Learning Task LP Learning Task LP Learning Task LP
Number 1 Number 3 Number 5 Number 7
Number 2 Number 4 Number 6 Number 8

VII. REFERENCES Leano, Roman D. Applied Economics. Manila: MindShapers Co. Inc., 2016.
Momin, Abdul” PESTLE Analysis an Amazing Business with Room to Grow” Last modified April 30, 2021
https://pestleanalysis.com/what-is-environmental-analysis.
Johnson, Steve “6 Methods and Techniques of Environmental Analysis” Last modified February 13, 2020
https://www.googlesir.com/methods-techniques-external-environmental-analysis/.
Jesnoewski, Amanda “Ways to Identify Business Opportunities” Last modified November 30, 2018
https://www.smartcompany.com.au/startupsmart/advice/business-planning/four-ways-to-i
identify-more-business-opportunities.

Prepared by: Renato L. Berosil Jr. Checked by: Adora G. Del Mundo, DR. Josephine M. Canlas,
Alfredo G. Buhain, Jr., Feliz A. Tayao