Learning Area ENTREPRENEURSHIP Grade Level 11/12

W5 Quarter 1/3 Date

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.
 3. A Competitive Forces Matrix can be used by the entrepreneur to plot when after
all the competitive forces have been identified by which the entrepreneur can view
the total perspective of the competition within the industry where the business
operates.
B. Development 30 mins Learning Task 1
Pagpapaunlad
Classify the macro environment of the following elements and forces by putting a
check mark in the appropriate column.

ELEMENTS/FORCES PHYSICAL SOCIETAL INDUSTRIAL

Technological
Forces
Climate
Wildlife
Social Forces
Competitors
Economic Forces
Physical
Resources
Legal Forces
Goverment
Suppliers
C. Engagement 30 mins Learning Task 2:
Pakikipagpaliha Answer the following questions briefly. Write your answer on the spaces provided.
n 1. Discuss briefly the three environmental layers of the external or macro environment
of the entrepreneurial venture.
a. Physical Environment
_______________________________________________
b. Societal Environment
_______________________________________________
c. Industrial Environment
_______________________________________________
2. Define environmental scanning. Name some reasons why environmental scanning
is important.
_______________________________________________

Your output will be rated by using the scoring rubric below:

Areas of Unsatisfactory Needs Satisfactory Outstanding
Assessment (2) Improvement (4) (5)
(3)
Ideas and Content is Major points Major Major points
Content incomplete or are addressed points are stated
not clear but not well are stated clearly and
supported are well
supported
D. Assimilation 30 mins Learning Task 3
Paglalapat Perform the following:
Paste a picture in a bond paper that generally describes your local community. It
may show a heap of garbage, a dirty canal, a busy street, rice paddies, farm animals,
farmers, employees, and buildings, among others.
By your chosen strand/track, list down all the possible business opportunities that you
can identify in your community based on the picture that you had pasted. Write all
the ideas that come into your head. There are no right and wrong answers.
From the different possible business opportunities that you have identified, pick out
the
1. most creative 3. most costly, and
2. most difficult 4. most common
Observe the climatic conditions in your local community for one week. Take note also
of the raw materials that are present in your locality. Based on your observations,
determine the most appropriate business venture to open in your community that is
integrated in your chosen SHS strand or track. Explain your answer
V. ASSESSMENT
(Learning Activity Sheets for
Enrichment, Remediation or
Assessment to be given on
Weeks 3 and 6)
30 mins Direction: Select the best answer by writing the letter on the space provided before
each number.
_____1. It refers to individual persons or companies that provide the required
materials, parts, or services to the business.
A. Competitors B. Creditors C. Customers D. Employees

_____2. These are the buyers of goods or services produced or rendered by the
business.
A. Competitors B. Creditors C. Customers D. Employees
____3. PESTEL stands for ________________.
A. Political, Economical, Sociocultural, Technological, Ecological, Legal
Forces
B. Political, Economic, Social, Technological, Ecological, Legal Forces
C. Political, Economic, Sociocultural, Technological, Ecological, Legal
Forces
D. Political, Economical, Social, Technological, Ecological, Legal Forces
_____4. Which of the following is the direct competitor of Nescafe?
A. Lipton B. Kopiko C. Tang D. Sprite
_____5. Which of the following statements are TRUE
I. The primary objective in scanning the industry environment is to determine
the strategic position of the business.
II. Environmental scanning helps define the future path of the business
III. The entrepreneur must evaluate if the raw materials to be used for
IV. The proposed business is sufficient for a short-term operation
A. I and II only C. II and III only
B. I and III only D. I, II, and III only
VI. REFLECTION ● The learner communicates the explanation of their personal assessment as
indicated in the Learner’s Assessment Card.
● The learner, in their notebook, will write their personal insights about the lesson
using the prompts below.
I understand that ________________________________________________.
I realize that _____________________________________________________.
I need to learn more about ______________________________________.
Prepared by: Dhonabel A. Catelo/ Delsife D. Canta – Calamba Bayside Checked by: Flor I. Tomas
Integrated School

5. B 5. IE 10. IE
4. B 4. SE 9. IE
3. C 3. PE 8. SE
2. C 2. PE 7. PE
1. A 1. SE 6. SE
Assessment: Learning Task 2
Answer key: