Applied Economics

Quarter 4

Learner’s Packet
 Applied
Economics
Grade 12
Quarter 4

Schools Division Office Management Team: : Rosemarie C. Blando, August M.

Jamora, Merle B. Lopez

Writer: Merwin G. San Miguel

Evaluator/s: Elenita FZ R. Miranda

Illustrator: Julius Burdeos

Subject Title : Applied Economics

Quarter Number
First Edition, 2020

Published by: Department of Education SDO—Rizal

Schools Division Superintendent: Cherrylou D. Repia
Assistant Schools Division Superintendents:
Gloria C. Roque and Babylyn M. Pambid

2
 WEEKS
Industry and Environmental Analysis: 9-10
Business Opportunity Identification
I Lesson

This lesson focuses on the application and analysis of different principles, tools and
techniques in creating a business.
Applying the tools and techniques for business opportunities like
Strengths, Weaknesses, Opportunities and Threats (SWOT), and Threats, Op-
portunities, Weaknesses and Strengths (TOWS) analyses is deemed to be pre-
dictive whether the business will make it or not in the market industry.
As a student in the ABM class of the Senior High School Program, you
will be introduced to the various tools and techniques which are utilized in the
industry nowadays. Who knows someday you may be at the forefront in the
market industry.
Putting a step forward to realize that, it is expected of you at the end of
the lesson to analyze different principles, tools, and techniques in creating a
business

D
Have you thought of putting up your
own business or become an entrepreneur?
When starting a busines you need to know the
basic principles of how to manage a business.
Read thoughtfully the text below.
Principle of Managing Business
From the 14 principles of management that
Fayol had proposed in his Management Theory,
he concluded that management should interact
with personnel in five basic ways in order to
control and plan productions. These five basic elements of manage-
ment are Planning, Organizing, Staffing, Leading and Controlling.

Let us have these elements discussed one by one.

Planning. Involves determining the organization’s goals or perfor-

mance objectives, defining strategic actions that must be done to ac-
complish them, and developing coordination and integration activi-
ties.
Organizing. Demands assigning tasks, setting aside funds, and
bringing harmonious relations among the individuals and work
groups or teams in the organization.

3
 Staffing. Indicates filling in the different job positions in the organization’s struc-
ture; the factors that influence this function include: size of the organization,
types of jobs, number of individuals to be recruited, and some internal or exter-
nal pressures.

Leading. Entails influencing or motivating subordinates to do their best so that

they would be able to help the organization’s endeavor to attain their set goals.

Controlling. Involves evaluating and, if necessary, correcting the performance of the

individuals or work groups or teams to ensure that they are all working toward the
previously set goals and plans of the organization.

Henry Fayol’s management theory is a simple model of how management in-

teracts with personnel (Please see Diagram. This theory covers concepts in a broad
way, that almost any business can apply. At present, Fayol’s classical management
was considered a relevant guide to manage staff productively.

What can you say about Fayol’s classical management theory? Do you agree
with his management theory model? Why?
Do you know of any management theory aside from Fayol’s? Can you share it with
the class?
Now that you are already familiar with the classic management model by
Fayol, let us move on identifying and analyzing the different tools and techniques to
evaluate how the business would fare in the industry.

Tools and Techniques in Creating a Business

Swot Analysis (SWOT) is an acronym for strength, weakness-

es, opportunities, and threats. It evaluates the internal and
external environments of a business. Swot Analysis is used
for the identification of a firm’s competitive advantage
through its strength , to fix its weaknesses , recognize op-
portunities for further growth, and possible threats that the
business may face.

Tows Analysis—this is a tool which applies

the same principle used in SWOT analysis. The
only difference is that threats and opportunities
are examined first before the strength and weak-
nesses.
 Porter’s Five Forces
Porter identifies five forces that determine the competitiveness and attractiveness
of a market and which seek to locate the power in a business situation, its cur-
rent competitive position, and the strength of a position that an organization may
enter into. These five forces help identifying if new products or services are po-
tentially profitable.

Study the graph.

It is a framework for analyzing competition in the industry and under-

standing the forces that shape such competition. The competitiveness of an in-
dustry can be viewed as a composite of five forces:
1. Rivalry among competing firms
The strategies used by a business can only be successful if it is able to create a competi-
tive advantage over its rivals.

2. Potential Entry of New Competitors. The level of competition in the mar-

ket is characterized by the number of sellers offering the same/ alternative
products. An additional entry of another competitor will lead to an increase
in the intensity of competitiveness among firms.
3. Development of Substitute Products.
The presence of possible substitutes increases competitive pressure as these products of-
fer alternatives to the same target market. There’s a chance that firms offering substitute
products have lower price or improved quality which can attract customers.

4. Bargaining Power of Suppliers

This refers to the pressure the suppliers can bring in the market. When suppliers have
strong position they can threaten to increase price or reduce the quality of product and ser-
vices. Firms may pursue backward integration to gain control or ownership of the supplier.

5. Bargaining Power of Customers

When consumers have strong influence they can bring pressure to the market which will
demand the suppliers to offer higher quality products, better consumer services, and lower
price.

Porter’s Analysis is a significant tool for organizations to understand the factors affecting
profitability in as specific industry and can help to form decisions on whether or not to enter
a specific industry , whether or not to increase capacity in a specific industry, and also for
developing competitive strategies.

5
 3. PESTLE Analysis
It is an acronym for Political, Economic, Social, Technological, Legal, and Environmental—
key external forces that may influence a business. It is a framework of macro-environmental fac-
tors that is used when doing an environmental scanning is the screening of large amounts of infor-
mation to anticipate and interpret changes in the environment..

All the aspects of this technique are crucial for any industry a business might be in.
More than just understanding the market, this framework represents one of the vertebras of the
backbone of strategic management that not only defines what a company should do but also ac-
counts for an organization’s goals and the strategies stringed to them.

It may be so, that the importance of each of the factors may be different to different
kinds of industries, but it is imperative to any strategy a company wants to develop that they con-
duct the PESTLE analysis as it forms a much more comprehensive version of the SWOT analysis.

6
 E
Learning Task 1. Answer the following question below.

1. Among the tools/ technique that were discussed in this module, what do you think is the
most applicable/ practical? How would you differentiate the technique presented /discussed in
the module?

Learning Task 2: Using the SWOT analysis tool think of a new product you would want to
introduce in the market. It can be a good already being sold but which you can innovate and im-
prove, or it could be something new that you yourself conceptualized. List down the Strength ,
Weaknesses , Opportunities and Threats of this product. You may copy the given graph on a sep-
arate sheet of paper.

7
 A
Learning Task 3: DIRECTIONS: Read thoroughly the Business Study of Snoozy Inn. List down
at least three of the strengths, weaknesses, opportunities and threats you can think of based on
the study. Use the template below. Do this in a separate sheet of paper.

The Snoozy Inn is a 40-unit, no-frills operation in the less scenic part of a major Queensland re-
sort town. The owner, Mr. Smith, firmly believes that there is a need for his style of low-cost
family accommodation amid the luxury and beauty of the area. His rooms are large, family-style
rooms (there is no television, for example). Although there is plenty of room for future expansion,
the grounds are fairly bare with a bit of landscaping, but mostly grass.
Mr. Smith can serve breakfast to the rooms and provides tea-making facilities. There are now a
lot of good restaurants and take-aways in the area. Mr.. Smith’s prices are less than half of what
similar motels charge and only a fraction of what the big five-star properties are charging. And,
really, he isn’t all that far away from the beach, shops and other attractions.
The problem is occupancy. He has some regulars who come every holiday period (and have been
doing so for the four years he has owned the property). Overall, occupancy is about 50% year
round and he knows from the local tourist office that the other properties average around 68%
occupancy year round. New developments could mean trouble. This lack of occupancy can be
quite frustrating for Mr. Smith. Cars pull in, drive around the parking areas, and then drive
away.
Currently Mr. Smith does very little advertising in local district guides and the holiday papers,
mainly because he really thinks word-of-mouth is the best form of advertising. He is a member
of the local tourist committee, but too busy to go to meetings. However, he does receive the local
statistics and knows the average stay in the area is 3.8 nights, and that local families and cou-
ples and increasingly overseas visitors are his potential customers.
He’s not desperate yet, but he’s getting worried and disillusioned. He thought he would be over-
run with guests, but that hasn’t happened.

SWOT Analysis of the Snoozy Inn Template

Strengths: Weaknesses:

Opportunities: Threats:

8
 WEEKS

Industry Analysis 11-12

I Lesson

In the past lesson, you were able to analyze the different principles,
tools and technique in creating a business.
In this lesson you will be applying the business principle, tools and
techniques in various types of industries in the locality.

To help you with the application of principles, tools and tech-

niques you will be introduced to some important factors as part of the
industry analysis which is deemed to be essential in order for you to
participate in various types of industries.
Hence, at the end of this lesson, you are expected to apply business
principles, tools and techniques in participating in various types of indus-
tries in the locality.

D
Industry analysis, for an entrepreneur or a company, is a method
that helps to understand a company’s position relative to other participants
in the industry. It helps them to identify both the opportunities and threats
coming their way and gives them a strong idea of the present and future sce-
nario of the industry. The key to surviving in this ever-changing business en-
vironment is to understand the differences between yourself and your com-
petitors in the industry and use it to your full advantage.
Before you conduct the industry analysis, you must be able to
identify and distinguish the different types of industry.
Types of Industry
Industry is defined as any large –scale business activity or a type of
productive manufacture or trade. It also refers to a field or an organization
involved in the production of goods or extraction of natural resources.
The type of an industry a country mostly depends on relies on the presence of the
available resources in the country.
Successful industries increase the chance of trade and enhance the employ-
ments structure of the country. There are three type of industries. 1) Primary
2) Secondary and 3) tertiary Industries.

9
 A. Primary Industries

• Extract raw materials (which are natural products) from the land or sea e.g. oil, iron ore,
timber, fish. Mining, quarrying, fishing, forestry, and farming are all example of primary
industries.

Example: Agri– Business

The term “ Agribusiness” was coined in the 1950s by John Herbert Davis and Ray A. Gold-
berg to reflect the two way interdependence between business people and farmers in the dual
roles of suppliers and purchasers. Business firms that serve agriculture rely on farmers for
their markets and for some of their supplies. By the same token, farms could not operate
without business that manufacture farm supplies and those that store, process and merchan-
dise farm commodities.
Providing food or fiber is the ultimate product of all
agribusiness operations. As such, the economic im-
pact of agribusiness is significant: agribusiness is al-
most two times as large as the sum of all manufactur-
ing enterprises (measured in total assets) it represents
40 percent of all consumers spending and it employs
37 percent of the labor

B. Secondary Industries (sometimes referred to as Manufacturing industry)

Involve the manufacture of raw materials, into another product by manual labor or ma-
chines.

Secondary industries often use assembly lines e.g. a car factory.

Example: Manufacturing

This refers to the processing of raw materials (i.e, ore, wood and food stuff) into finished

products and into something more useful through the use of tools and processes that al-

lows individual and businesses to add value to the products selling them at a higher price

in the market thus, making manufacturing a profita-

ble endeavors. (Another example are bakeries, candy

stores and custom tailors are they considered manu-

facturing because they create products out of compo-

nents.

10
 The Philippines benefited from the globalization of trade and manufacturing invest-

ment as multinationals from within and outside the Asian region moved into Southeast Asia

to take advantage of lower production and logistics costs to serve global markets. However,

primarily because of political instability in the 1980s, the Philippines benefitted less from

these investment flows than

Malaysia, Singapore, and Thailand. More recently, after joining the World Trade Organiza-

tion (WTO), Vietnam has been attracting a large influx of foreign manufacturing investment

because of its extremely low production costs.

C. Tertiary Industries (sometime referred to as Services industry)

Neither produce a raw material nor make a product.

Instead they provide services to other people and industries.
Tertiary industries can include doctors, dentists, refuse collection and banks.

Example: Retail and

Services
Retail and Services Establishment is a business prin-
cipally engaged in the sale of goods and services to
end-users for personal or household us and is general-
ly recognized as such.

Can you think of other examples belonging to the different types of industries? Please
Share .

To discuss further, Industry analysis is a market assessment tool used by businesses

and analysts to understand the competitive dynamics of an industry. It helps them get a
sense of what is happening in an industry, e.g., demand-supply statistics, degree of competi-
tion within the industry, state of competition of the industry with other emerging industries,
future prospects of the industry taking into account technological changes, credit system
within the industry, and the influence of external factors on the industry. Industry analysis
is part of good management. Listed below are the components of the industry structure.
Each component is vital in determining the intensity of competition and explains why some
businesses are historically more profitable than the others.

Competition– who are the major business in the industry. It is very important that you
know your competitors and be ready for them. Your aim is to win their customer , con-
vince them to buy from you instead, and remain as loyal customers.
Customers - Who will you sell your product? The target market must be identified. Who ex-
actly will buy your products, what is the customer profile in terms of group, income, gender?
The type of people will you cater to, based on their preferences, lifestyle and buying habits.

11
 Suppliers- Every retail need supplier from whom one can source raw materials, intermedi-
ate products, or even the finished goods one intends to resell. A business needs one or more
suppliers. It is important to develop suppliers who are reliable in term of quality of what
they supply and their dependability in coming up with the things you order from them.

Substitutes— are goods that can be used in place of another. These are goods that may,
even if partly, satisfy the same needs of a consumers such that the consumer may use one
instead of another. For example, margarine can be a substitute of butter or wheat bread for
white bread. Some goods are close substitutes while others are not.
By conducting a thorough industry analysis, you gain insights about your competitors.
You can use these insights to help you develop a marketing plan to move your business
forward. (bizfluent.com)

E
Learning Task 1.Fill up the bubble map with word/ words that you can associate with the
word INDSUTRY

Learning Task 2. . Tell something about the types of industry. Be able to write down their
salient features by giving examples for each industry.
1. Agri-Business

2. Manufacturing

3. Retails and Services

12
A
Learning Task 2Think of a business or enterprise you want to put up. Be guided by
the matrix below as you conduct an Industry Analysis.

Industry MATRIX Chart

Nature of Business:____________________________

COMPETITION CONSUMERS SUPPLIERS SUBSTITUTE

13
 WEEKS
Effects of the Various Socio-economic 13-14
I Factors affecting Business and Industry
Lesson

In the past lesson you were able to apply the business principles, tools
and technique in various types of industries.
In this lesson the focus will be on the various socio economic factors and their
implications to small business.

At the end of this lesson, you are expected to explain the effects of the vari-
ous socio-economic factors affecting business and industry.

Have you ever asked yourself why you bought the things you already had?

What are Socio-Economic?

Socio Economic factors are important characteristics which mostly influence
consumers. These factors are associated with the quality of life and determine the behav-
ior, taste, preferences, attitudes and lifestyles of people living within a society. Socioeco-
nomic factors have high impact on business, whether big or small. This is because the
consumers are often at the heart of businesses and tend to affect growth of all ventures.
There are many socioeconomic factors that businesspersons need to look out for in order
to excel and compete effectively in an everchanging market such as income, education lev-
el, consumer confidence, employment, interest rate inflation economic growth and occu-
pation.

14
 1. Income
Is the amount of money a person earned from his/her economic activities such as employ-
ment, business, or investment. A consumer’s spending depends on his /her available disposable
income. For example , when a consumer receives a salary raise, he/she will tend to purchase lux-
urious items he. She wants and not necessarily need. On the other hand, when the consumer’s
income becomes scare, he/she tends to spend on what is only essential.
2. Education Level
Is the knowledge , skill and understanding that one gets from attending a school, college, or
university.
The literacy levels in one’s target market also influences one’s scope of interactions with
customers. For instance, carrying out a consumer survey with educated individuals would be eas-
ier than doing the same with illiterate consumers. Education further determines the availability of
skilled workforce when seeking employees for a small business.
Educations levels influence the type of occupation a person can get and ultimately their in-
come level. Consumers with higher education tend to be skilled and also have better jobs and in-
comes as compared to those without education.
3. Consumer Confidence
Confident consumers tend to be more willing to spend money than consumers with low
confidence, which means businesses are more likely to proper when consumer confidence is high.
Period of high consumer confidence can present opportunities for new businesses to enter the
market , while period of low confidence may force companies to cut costs to maintain profits.
4. Employment
The economy tends to follow a business cycle of economic booms followed by periods of
stagnation or decline. During boom periods , jobs tend to be plentiful, since companies need work-
ers to keep up with demand. When unemployment is low, consumer spending tends to be high be-
cause most people have income to spend, which is good for businesses and helps drive growth.
When unemployment is high , consumer spending tends to be low because unemployed people
don’t have excess income to spend.
5. Interest Rates
An interest rate is the amount that a lender charges an individual or business to borrow money.
Some small business rely on loans from banks or other financial institutions as a source of financ-
ing. Higher interest rates result in higher total business expenses for companies with debt. High
interest rates can also reduce consumer spending , because high rates make it more expensive for
consumers to take out loans to buy things like cars and house.
6. Inflation
Inflation is the rate at which prices in the economy are increasing . Inflation causes in-
creases in business expenses such as rent, utilities, and cost of materials used in production. Ris-
ing costs are likely to force businesses to raise prices on their own products and services to keep
pace with inflation and maintain profits. Inflation can reduce the purchasing power of consumers
unless employers increase wages based on the level of inflation.
7. Economic Growth
Economic growth and development of a country can also have an impact on the social sta-
tus of its citizens. Emerging economies such as china and India have proved that if a country ex-
periences high economic growth then the citizen may have better access to incomes and also the
middle class and upper class may grow. This may also attract more investors into the country and
increase employment rates. Inevitably positive economic growth rates will increase spending and
help business to grow.

15
.
8. Occupation
Occupation, by definition, is a perso’s usual or principal work or business, especially as a
means of earning a living. It also refers to the type of jobs people perform by virtue of their skills,
experiences or choices. One may be self employed or work as an employee of an individual or or-
ganizational entity.
The different types of occupation reflect the income earned by individual in the society, doc-
tors , engineers, lawyers and accountant are classified as high—salaried individuals associated
with skilled occupations. Those self—employed individuals who own successful business also gen-
erate great amounts of income. However , unskilled occupations such as menial labor do not pay
much.
Example of menial jobs include sanitations, custodian workers, farm workers, painters,
grocery clerks and etc. therefore , the ability of customers to afford the different products one can
offer in is his/ her business depends on the type of their occupation.

Why do you think it is important to consider the implications of these Socio Eco-
nomic factors on small business?

Among these factors, which do you think has the greatest impact on small business-
es? Which do you think has the least impact?

If you were to choose the first factors, what would it be? Arrange them according to
rank of impact then explain why.

E
Learning Task 1: List down the eight Socio Economic factors and their implications under
the appropriate heading. You may copy the graph on a separate sheet of paper.

Socio Economic Factors Implication

1.

2.

3.

4.

5.

6.

7.

8.

16
 WEEKS
15-16
A
Learning Task 2: : You are thinking of putting up a laundry shop business in a local commu-
nity where mothers are not working and stay at home most of the time. If you were to conduct
a socio economic impact study about the business, what socio –economic factors can affect
your business? Please discuss.

Viability and Impacts of Business on the

Community
I Lesson

You learned in the past lesson the effects of various socio economic fac-
tors in business and industry.
In this lesson, you will evaluate the various socio-economic impact of
business on the following sectors: consumer, supplier and investors, government,
households and international rate trade.

Hence, at the end of this lesson, you are expected to evaluate the
viability and impacts of business on the community.

D
Why are some companies successful and some are not? Why do some
companies survive, and some do not? How important is growth or profit?
Can a company become nonviable simply because it fails to maintain its
year-on-year growth? To answer this question, first we need to understand
what viability of a business is.
How do you establish whether the business you have mind is viable or not?

What is Viability of a Business?

Viability is defined as the ability to survive. In a business sense, that ability to

survive is ultimately linked to financial performance and position. It is measured by
its long-term survival and its ability to sustain profits over a period of time. A business
is able to survive when it is viable because it continues to make a profit year after
year.

A business is viable when

1. It is returning a profit that is sufficient to provide a return to the business
owner while also meeting its commitments to business creditors.

2. It has sufficient cash resources to sustain itself through a period when it is

not returning a profit.

17
Today, putting up a business is not just about profits. It is also concerned with consumers wel-
fare , job creation, environmental issues, uplifting the quality of life, and contributing to the econ-
omy, let us now look at how a business can impact the consumer. The supplier and the investors,
the government, and households.
Impact on the Consumers
A new business, especially one that is innovative and focused on bringing some new prod-
uct or services to the market, is always welcome to the consumer who is looking value for his
money. If the new business is selling a product that has close substitutes in the markets, then the
owner of the business will try his best to win the consumers away from the existing seller by offer-
ing something that will benefits the buyers.
As long as a new business can provide new goods and services, better quality of goods and
more options, the consumer can benefits from it. But if a business comes up with a low quality
good and does not provide the consumer value for his money , then this business will have a nega-
tive impact on the market.

Impact on Suppliers and Investors

A new business will also provide opportunities for supplier and investors , if a new con-
struction company is set up. Then this opens up opportunities for the other businesses that will
supply them their needs, tools , wood, cement, steel, paints, nails, screws, and decorators. Many
suppliers will now get a chance to sell to the newly established business. Which means income for
them.
Demand for goods provided by the suppliers will increase. These suppliers will now need to
produce more of them and they will need to hire more workers who will earn wages from being em-
ployed. More capital will be needed to invest in the production of these tools and materials, gener-
ating again income for the economy. Investors get to earn returns on their investments, which
capital plowed back into more investments and generating more income for the economy , thus ,
leading to economic growth.

Impact on the Governments

The government will also benefits from the establishment of new businesses, through reve-
nues earned on fees collected from them and on taxes imposed on the incomes of the business.
Before a business can be set up, it has to meet requirements to start operating first, the
business owner has to apply to start its business.
1. Licenses to be obtained.
2. Organizational fees have to be paid
On the municipal level, the local government earns revenue from these fees and licenses. This
means money added to their local budget to provide social services to the community, for the de-
velopment of the company , to pay salaries of local officials and workers. To maintain peace and
order and to subsize public schools.
Impact on Households
New business mean employment opportunities for the filipinos, those who have jobs but are
earning low wages may find better paying jibs with the new companies. Unemployed workers look-
ing for work may have the chance of being employed by these companies.
The pool of unemployed workers will definitely decrease. Being employed will enable them
to buy their basic needs and even some luxuries. This means that their quality of life and their
standard of living will improve.
Impact on the Community
As a result of this , corporations and even small businesses have increased their focus on
projects that provide scholarships to poor but deserving students, allocating budgets for housing
for low income families such as participation in programs like the Gawad Kalinga , environment
related programs, communities benefits from business sponsored activities that includes sports
fest and wellness programs, livelihood projects, micro financing and even medical and dental mis-
sions.

18
 There are a thousand and one ways to prove the importance of these businesses in the
society. Businesses keep things new and exciting, inspiring the society to reach for ultimate
heights as it can drastically improve the quality of life of people.

E
Learning Task 1: Fill up the given chart with components and their corresponding impacts

IMPACTS OF BUSINESS IN THE

COMMUNITY

Component Impacts

Consumers

Government

Supplies and Investor

Household

Community

A
Learning Task 2: Evaluate the viability and impacts of a Fast food chain restaurant in
a suburban area. You may conduct a simple research to determine the probability of
success of the business. Present your discussion on a separate sheet of papers.

19
 20
Lesson 1: S.W.O.T. Analysis of the Snoozy Inn
Answers...Compare your analysis with the following points:
Strengths: Weaknesses:
• Located in a popular tourist region • No television (crucial for the family market)
• Big rooms • Bare and unappealing grounds
• Large grounds and open areas • Initial interest by people who drive in and
look but then leave (probably because of the
• Breakfast service to rooms bare grounds)
• Good restaurants and take-away nearby • Location poor in relation to other services,
• Low prices (but this is also a problem!) attractions, etc.
• Regular customers (but not very many) • No separate restaurant services
• Membership in the local tourist group • Low occupancy compared to other motels
• Property large enough for coach groups • Very little advertising
• Property is clean • Only local advertising
• Access to information about the industry • Uninspiring motel name
• Mr. smith acknowledges he has a problem • Low rates being charged could be perceived
– the first step towards solving it! as unappealing
Opportunities: Threats:
• Install televisions immediately • Potential failure if occupancy doesn’t im-
prove
• Landscape the grounds and make them more attractive
• Potential failure if other properties begin
• Add more outdoor facilities – playground, BBQ facilities, cutting rates
perhaps a pool or tennis courts depending on finances
• Increase the level of advertising
• Potential problems if other properties begin
big promotional campaigns
• Increase the rates being charged
• Potential problems if more budget motels
• Work in with other attractions, restaurants, etc (charge- are built
back facilities with nearby restaurants, for example)
• Attend tourist group meetings – do more networking
• Add own restaurant or do-it-yourself cater-
ing facilities for guests
• Investigate other markets (backpackers,
etc.)
Mr. Smith’s most important action is to raise rates immediately. At less than half the price of other
motels his price is too low which conveys a poor image. This combined with the bare grounds, may
be driving potential customers away. His rates can still be low, but should be comparable to the rates
of competitive properties.
Answers
 References

Manual

Rosemary P. Dinio,Phd , George A. Villasis , RexBook Store, Applied Economics.

Rica delos Reyes-Ancheta,PhD. , Nestor Torrefranca, Uriel J. Ancheta, Fastbooks Educational Supply, inc. 2017 Applied Economics

Website

https://www.google.com/search?hl=en-
US&q=swot+analysis+case+study+exercise&sa=X&ved=2ahUKEwiQlpCsm8juAhWFHqYKHS2bBEwQ1QIoAHoECBEQAQ&biw=1366&
bih=661#

http://www.investphilippines.info/arangkada/seven-winners/manufacturing-logistics/manufacturing

https://www.google.com/search?q=primary+industries&tbm=isch&ved=2ahUKEwjd_aOZtcruAhXSx4sBHWYxCPoQ2-
cCegQIA-
BAA&oq=primary+&gs_lcp=CgNpbWcQARgAMgQIABBDMgUIABCxAzIECAAQQzIECAAQQzIFCAAQsQMyCAgAELEDEIMBMggIABCxAx
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mAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=A9wYYJ3wMNKPr7wP5uKg0A8&bih=661&biw=1366#imgrc=xr_L8de0t2ps
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http://www.investphilippines.info/arangkada/seven-winners/manufacturing-logistics/manufacturing/

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ent=img&ei=8zcaYPeTFpKemAWQg5qYBQ&bih=570&biw=1333&hl=en-US

https://www.google.com/search?q=pestle+analysis&tbm=isch&ved=2ahUKEwi0g9q9hsjuAhUcR5QKHXIBBSoQ2-
cCegQIA-
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Qtnd3Mtd2l6LWltZ8ABAQ&sclient=img&ei=mJ4XYLTXDpyO0QTygpTQAg&bih=661&biw=1349&hl=en-
US#imgrc=N15NRp9tKCjMXM

https://www.google.com/search?q=porters+five+forces&tbm=isch&chips=q:porters+five+forces,g_1:analysis:eBTK-rNDgHU%
3D&hl=en-US&sa=X&ved=2ahUKEwiLit-3hsjuAhUOZ5QKHX-
eDIcQ4lYoAXoECAEQGg&biw=1349&bih=661#imgrc=rTMMFKt6NIE_3M

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Para sa mga katanungan o puna, sumulat o tumawag sa:

Department of Education Division Rizal Office

Address: DepEd Bldg.,Cabrera Rd.,Bgy. Dolores,Taytay,Rizal 1920

Telephone number: 09274562115/09615294771

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