ANALYZE DIFFERENT

PRINCIPLES, TOOLS, AND

TECHNIQUES IN CREATING A
BUSINESS

APPLIED ECONOMICS
 BUSINESS ENTITIES
It enables to create goods and services
Provide jobs for individuals
Generate revenue for the government
Best practices and techniques are needed
to be employed.
 PRINCIPLES, TOOLS, AND
TECHNIQUES IN CREATING A
BUSINESS
PRINCIPLES IN CREATING A
BUSINESS
1. Scalability 6. Vision
2. Big Ideas 7. Purpose
3. Systems 8. Autonomy
4. Sustainability 9. Profitability
5. Growth 10. Standards
 PRINCIPLES IN CREATING A
BUSINESS
1. SCALABILITY
A business must be scalable for it to be successful.
Scalability is the capability of a company to sustain
or improve its performance in terms of profitability
or efficiency when its sales volume increases.
 PRINCIPLES IN CREATING A
BUSINESS
2. BIG IDEAS
A business is no more effective than the idea upon
which it is built. Business creates its own plan to
expand its economic growth.
 PRINCIPLES IN CREATING A
BUSINESS
3. SYSTEMS
A business is a system in which all parts contribute
to the success or failure of the whole. In this
system, everything must work together from
employee to president, from equipment to
resources.
 PRINCIPLES IN CREATING A
BUSINESS
4. SUSTAINABILITY
A business must be dynamic - able to thrive through
all economic conditions, in all markets, providing
meaningful highly differentiated results to all of its
customers. Such differentiation is the key to
survival.
 PRINCIPLES IN CREATING A
BUSINESS
5. GROWTH
Growth is essential in business. Without continued
growth, operations will stagnate. This can result in
lowered standards of quality for products or services,
decreased customer service, and poor employee
morale.
 PRINCIPLES IN CREATING A
BUSINESS
6. VISION
A business must manifest the higher purpose upon
which it was seeded, the vision it was meant to
exemplify, the mission it was intended to fulfil.
 PRINCIPLES IN CREATING A
BUSINESS
7. PURPOSE
A business is the fruit of a higher aim in the mind of
the person who conceived it.
 PRINCIPLES IN CREATING A
BUSINESS
8. AUTONOMY
A business is not part of the owner's life, but is, in
fact, its own entity.
 PRINCIPLES IN CREATING A
BUSINESS
9. PROFITABILITY
A business is an economic entity, driving an economic
reality, creating an economic certainty for the
communities in which it thrives.
 PRINCIPLES IN CREATING A
BUSINESS
10. STANDARDS
A small business creates a standard against which all
small businesses are measured as either successful,
or not. All small businesses should aim to thrive
beyond the standards that formerly existed.
 TOOLS AND TECHNIQUES IN
MAKING AN EFFICIENT BUSINESS
1. Use technology to speed up workflow
2. Shorter meetings fuel efficiency
3. Smart office space pays
4. Advertisement
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5. Small changes, big savings

6. Keep a firm grip on cash flow
7. Stay connected on the move
8. Use time more efficiently
9. Get the best deal on insurance
10. Don't be lax with the legals
 IMPORTANT FACTORS
COMPETITION AND COMPETITORS
Industry rivalry among companies of the same or
related industry is an inevitable part of the business
2. Shorter meetings fuel efficiency

world of any business size. Intense competition leads

to reduced profit potential for companies in the same
industry. Businesses seek constantly competitive
advantage.
 IMPORTANT FACTORS
COMPETITIVE ADVANTAGE
sets your business apart from your competition
highlights the benefits a customer receives when
2. Shorter meetings fuel efficiency

they do business with you

It could be your products, service, reputation, or
even your location
 IMPORTANT FACTORS
Competitive Advantage
1. Cost Leadership - an advantage occurs when business is
able to offers same products at a lower price.
2. Differentiation - Find attributes that is important and set
2. Shorter meetings fuel efficiency

them apart from their competitors.

3. Defensive Strategies - used a defensive strategy to
distance themselves from competitors.
4. Alliances - advantage of seeking strategic alliance with
other within related or within businesses.
 IMPORTANT FACTORS
CUSTOMERS
Individuals or companies who desires to possess or
make use of products and services.

SUPPLIERS 2. Shorter meetings fuel efficiency

Provide inputs that the firms in an industry need to

create the goods and services that they in turn sell to
their buyers.
 IMPORTANT FACTORS
SUBSTITUTES
Goods/services that can be used in place for another.
These goods may, even if partly, satisfy the same
needs of a consumer such that the consumer may use
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one for instead for another.