BUSINESS ENTERPRISE

MODULE 2

REINFORCEMENT ACTIVITY

I. State your Macro and Micro Environmental Analysis (PORTERS MODEL and PEST
ANALYSIS) In essay form. Assuming, you have your Business already.

1.
PEST which stands for Political, Economic, Social, and Technological. Political
where it is about the government regulations, the need of business permit. Business
permit will make it legal. A business should be accepted under BIR and undergo
through the process. Also in taxation, it is needed for a business to have its taxation,
with the exemption of those whose income doesn’t exceed to 250, 000 per year.
Economic, it talks about the economy itself. These economic factors is by looking
through economic growth rate, interest rates, exchange rate, and inflation. A business
should be flexible, since the economy changes from time to time. These indicators will
help in providing business its demands, costing, and expansion. Social, these are the
social factors that we need to consider that refers to the cultural and demographic. It is
important to know since a business heavily relies on its customers. Considering the
culture, the local, and health. For demographics, it will be about considering your target
market. Finding the best place to have a lot of customers. And lastly which is
Technological, an easy way to make a business more advanced. Since technology is
rapidly growing, consumers is also the same. The adaptation of the technology will
make a business to grow especially if it is follows trends and promotes through the use
internet.

2.
With the use of five forces, it states how your business will provide solutions to
these threats. In rivalry in business, it will be a huge disadvantage if you have a
powerful competitor. Which is why it is important to outsmart the competitors and be
creative in making a product or services offered. New entrants which include the brands
and its innovation. Especially if the innovation is really helpful to people, then it is also
time to make another innovation which is better than your competitors. The buyers
which is the most essential in a business. A customer will bargain a product lower than
the original price based from its preferred cost. Its unavoidable and can treaten the
industry if this continued. Supplier can also be hard to find, especially in finding the best
quality but affordable price. Suppliers has its strategy in order to sell its bulk products
and lowering the quality. Finding the best option will make your money to not go on
waste. The threat of substitution will get worst if you didn’t make your customer be loyal
to you. Customers can be picky also, they will have their best to find products or
services with high quality but affordable. Wherein they will another brand that suits their
taste.

MODULE 3

ASSESSMENT
TRUE or FALSE

TRUE 1.The organizational chart is a traditional picture of the positions in a firm, how
they are arranged, who reports to whom, and what the specific positions execute in the
enterprise.
TRUE 2. The horizontal structure, or top to bottom line in an organization, is rooted on
basic concepts of authority, span of control, and delegation.
TRUE 3. Authority allows owners of enterprises to decide for the organization and
assign work tasks to those in the lower levels of the enterprise.
TRUE 4. In a sole proprietorship, an individual owns all the assets and is the simplest
business form.
FALSE 5. The practice of the interview and/or application from potential marketing,
finance or operation members or employees ensures good teamwork for the business
planning and implementation activities.
TRUE 6. The manufacturing function is included in this course, as only merchandising
and service industries are covered.
TRUE 7. The operations team may be tasked to arrange for transportation,
communication, purchasing, and other functions assigned by the owner or proprietor.
FALSE 8. All enterprise group members are not paid salaries and wages by the owner
sole proprietor.
TRUE 9. The registration and reporting requirements for single proprietorship include
the business name registration with the Department of Trade and Industry (DTI) and
applications with the BIR, SSS, Pag-IBIG, and PhilHealth.
FALSE 10. Time constraints of the course may not allow for applications with other
government agencies.