RESPONDING

TO
OPPORTUNITIE
S IN BUSINESS Cosca
Espinosa
Junio
Glimer
Piad
Galgo Auxilian
Microeconomics and Macroeconomics
Microeconomic Macroeconomic
Environment Environment
 Includes market  Includes gross national product
(GNP) and real income growth,
structures, customers, income distribution, expenditure
suppliers, and patterns and trends in consumer
spending, borrowing patterns and
competitors. government legal restrictions, cost of
 Study of economic living, interest rates, and disposable
income.
behavior of individuals,  Economics of the economies as a
households and firms. whole at global, national, regional and
Real Income Growth
 Increase in income, adjusting for
inflation.
 This will determine of the real status

of an economy is growing or not.

Income Distribution
 Refers to how income is distributed
among the different income groups.
 Determines if income is more or less

distributed equally, or is being

concentrated in the upper income class.
Expenditure Pattern

 Trends in consumer spending

which refers to how income is
used and what consumers are
buying.
Borrowing Pattern

 Refers to where the funds are used

by the borrower, whether for
investment purposes or some other
use.
Government Legal Restrictions

 This refers to licenses and taxes.

Interest Rates
 These are what lenders charge a borrower
for the use of their money, typically
expressed as a percentage of the amount
borrowed.
Cost of Living

 Refers to how much one spends on daily

sustenance, which also depends on how
productive one is, based on an individual’s
output.
Disposable Income

 Refers to what is left of one’s

income after deducting taxes.
The Entrepreneur’s
Checklist
Criteria for Practical and Realistic
Business Opportunities
 1
 There must be a market for the
product or service, otherwise; you
will be producing something that
nobody wants to buy.
 2
 Accessible location is necessary to
reduce operating costs.
 Product’s raw materials contributes significantly
to cost-effectiveness; the farther away your firm
is from sources, the more you will have to pay
for shipping.
 3
 Minimizing fixed and variable costs is a
must.
 Fixed costs- costs that a business incurs which do
not change as the business increases or decreases
the number of goods or services it produces.
 Variable costs- includes the costs of labor and raw
materials.
 3
 Capital-intensive businesses and industries-
require more fixed, upfront costs than variable
costs. They require high production volumes in
order to attain good returns on investment.
 Labor-intensive businesses and industries-
require more variable costs (specifically labor)
than fixed costs. These are flexible with consumer
demand but more susceptible to forces that affect
wages such as inflation.
 4
 Compliance with legal requirements is a must.
 Businesses must be registered with the Department of
Trade and Industry, DTI (for sole proprietorship) or
the Securities and Exchange Commissions, SEC (for
partnerships and corporation) and obtain business
permit from their local government unit and be
registered with the Bureau of Internal Revenue, BIR.
 SWOT Analysis
Strengths, Weaknesses, Opportunities and
Threats Analysis
 SWOT Analysis

 This is used to analyze an organization or

process to evaluate the internal and external
factors which may prove favorable or
unfavorable in achieving its objectives.
 Internal Factors
 Strengths – positive characteristics that
give an organization or business an
advantage over other businesses.
 Weaknesses – negative attributes of a

business.
 External Factors
 Opportunities – possibilities that the
business can venture into or take
advantage of.
 Threats – negative external factors.
of a restaurant