SME’s ,Large Scale

Business
SME and Large Scale
Business
• SMALL BUSINESS- Total assets are from
1,500,001 to 15,000,000.
• MEDIUM BUSINESS –Has a total assets
from 15,000,001 to 60,000,000.
• Any business with assets in excess of
60,000,000 is considered LARGE SCALE
BUSINESS
Economic Challenge?
The class will be divided into two.
There will be four challenges. But as a help,
the teacher will provide each groups the
cue cards that contains words that will help
them solve the challenge. The first group to
finish every challenge will gain the points.
 •Challenge 1: Complete the
figure below by illustrating it in
the Board. (5 pts for the winning
group three points for the other
group)
S is for? W is for?

SWOT
O is for? T is for?
Challenge 2
•Challenge 2.Plot where in the SWOT
Analysis is the ff terms should
belong.one point for every correct
answer(plotting)
• Pollution problems
• Project may replace imported
good available in the market
• Government Spending
• Improving employee welfare
• Low capital requirement
• Market acceptance
• Early competitors
• Lack of worker’s training
• Costly set up
• Entry of competitors
• Experienced leaders
• Time consuming production process
• Costly set up
• Entry of competitors
• Experienced leaders
• Time consuming production process
• Opposition from residents in the
community
 •Challenge 3: Complete the
statement supporting PEST.Pest
mean _____,_____,_____, and
____. Write your answer in the
board.
 •Challenge 4: identify the five
Forces developed by Michael
Porters that are used to evaluate
strengths and job positions of a
business. Paste your answer in the
manila paper provided.
 1. Clue : The more unique the product
,the easier it is for the supplier to drive
up the price.
In the same manner the supplier who has
a relatively bigger size and strength in the
market enjoys the power of driving up
prices.
2. Clue. If
cost is minimal, then it
will be easy for the buyer to
switch to another supplier
and bargain on lower prices
3. Clue. whenan investor enter a
market, the share of the
participants in the market will
be divided among more people
and decline and or eroding
profits
 4. Clue. if competitors are
numerous and offer basically
similar products and services,
the market will also impact on
the attractiveness of the market.
 5. Clue.buyers will switch to
alternatives in case of price
increases. The suppliers will
enjoy less power to drive up the
price.
Tools in Evaluating
Business
Tools in evaluating a Business
•SWOT analysis-is the framework that can
help the company meet its challenges and
identify new markets
The framework can help identify the business
risks and rewards.
SWOT
• Basically deals with the internal factors such as
1. Financial resources
2. Physical resources
3. Human resources
4. access to natural resources,trademarks.patents and
copyrights
5. Current processes ,such as employee programs
,department hierarchies and software systems,sales
and distribution capabilities, marketing programs
etc.
Tools in evaluating a Business
•PEST-Unlike SWOT this strategy is more
directly aimed at the external macro
environmental factors that might be
affecting the position of your business, the
reasons behind growth or decline in the
market and also identify new directions for
the business as a whole.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
1. Supplier Power-assess how much power
the supplier has in his ability to drive up
prices. A supplier enjoys this power if
there are few supplier of an essential
input and they therefore control supply of
that input.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
1. Supplier Power-uniqueness of the
product is one of the source of this
power.In the same manner ,a supplier
who has a relatively bigger size and
strength in the market enjoys the power
of driving up prices.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
2. Buyer Power
- If a supplier can enjoy the power to drive up
prices ,it is also for a buyer to drive up prices
down. An assessment need to be made on of
how easy it is for the buyers to drive up price
down. The smaller the number of buyer in the
market ,the greater the power enjoyed by the
buyer.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
2. Buyer Power
-likewise the more important an individual
buyer is to the organization ,the greater his
power is. The buyer’s cost switching from
one supplier to another is also a determinant
of the extent of the buyer’s power.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
3. Number of Competitors
- The number of capability of competitors in the
market will also impact on the attractiveness of
the market. If competitors are numerous and
offer basically similar products and services,
market will be less attractive.low capability of
competitors to meet the market;s current needs
will serve as an attractive opportunity for the
firm.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
4. Possibility of substitution
- When it is easy to substitute products in
market it is expected that the buyers will
switch to alternatives in case prices
increases. The supplier will enjoy less power
to drive prices up and market will be less
attractive.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
5. Possibility of entrants
- When investor see the market is
profitable,they will desire to join the
bandwagon and get a share of the profits.
But when new investor enter a market the
share of the participants in the market will be
divided among more people.
Tools in evaluating a Business
•PORTER’S FIVE FORCES
5. Possibility of substitution
-it will therefore decline,thus eroding profits.
However barriers to entry prevent new
participants from entering the market.
Profits will be maintained among the existing
participant.
•Opportunities don't happen.
You create them."
•-- Chris Grosser