Principles, Tools, and Techniques in Creating a Business

To start a new business, an entrepreneur needs to have a plan to start a business. As one of the best practices,
entrepreneurs have to identify the needs of the community to start a business. Based on your inquiry whether by
interview or survey through print or online, identify 5 major needs of your community and rank them according to
order of priority from 1 being the highest and 5 lowest and describe business opportunities that can be created.

Activity 1. Fill the table below

Needs of the Community Business that can be created Rank

1.
2.
3.
4.
5.

CHECK YOUR UNDERSTANDING

Activity 1. Modified True or False. Write True if statement is correct, write False if statement is incorrect and
underline the incorrect word and write the correct answer.
___________1. One of the strategies of suppliers is to provide discounts to clients who buy small quantities of a
specific good or service.
___________2. In business, competitors are a must to ensure quality products and services.
___________3. Affordable price means lesser market share.
___________4. Soya milk is an example of substitute product for fresh milk.
___________5. Low quality means high satisfaction to customers

Activity 2
Directions: Read the story carefully. Analyze the business. Then answer the questions at the end of the story.
Anne and Cherry are friends since high school. Anne is good in baking and Cherry is good in selling. To increase their
income, they decided to put up an online business of bakery products. They contributed 10,000 each to start the
business and decided to split the profit equally as business partners. The friends agreed that Anne will be in charge of
the production while Cherry will be in charge of the online site for taking marketing and promotion. Cherry started
taking orders while Anne is busy on baking products. The business started to get big orders from their regular clients
and other who visited their online site. After one year of operation, while Cherry continues with her regular work
Anne as in-charge of the production, started getting sick and advised to rest. Now, Anne can no longer continue
baking for their business.
1.What went wrong with the business?
2.Do you think Anne and Cherry were right in how they manage their business?
3.Are they right in their decision of equal sharing of profit? Explain your answer.

Rubric:10 points- comprehensive and analytical 8-9 points- well written and some includes analysis; 5-7 points-well
written but lacks analysis; 2-4 points- weak essay; 1 point Poorly written and lack strength

Activity 3. Now, I want you to think of a product/service business that is needed in your locality. List down your
competitors, competitive advantage, customers and suppliers. Use the figure below. (10pts)

Activity 4. Essay.
1. As a student of economics, what business can you recommend and why? Why is it important to know your
consumers, competitors and suppliers in creating business?
2. Why is it important to know your consumers, competitors and suppliers in creating business?
(Rubric:10 points- comprehensive and analytical 8-9 points- well written and some includes analysis; 5-7 points-well
written but lacks analysis; 2-4 points- weak essay; 1 point Poorly written and lack strength).