Applied Economics

Manufacturing Industry

Module 4:Quarter 4 1

PRETEST

1. D
2. D
3. B
4. D
5. A

RECAP

PORTERS FIVE FORCES

1. Competitive Rivalry. This looks at the number and strength of your competitors. How many rivals do
you have? Who are they, and how does the quality of their products and services compare with yours?
Where rivalry is intense, companies can attract customers with aggressive price cuts and high-impact
marketing campaigns. Also, in markets with lots of rivals, your suppliers and buyers can go elsewhere if
they feel that they're not getting a good deal from you. On the other hand, where competitive rivalry is
minimal, and no one else is doing what you do, then you'll likely have tremendous strength and healthy
profits.

2. Supplier Power. This is determined by how easy it is for your suppliers to increase their prices. How
many potential suppliers do you have? How unique is the product or service that they provide, and how
expensive would it be to switch from one supplier to another? The more you have to choose from, the
easier it will be to switch to a cheaper alternative. But the fewer suppliers there are, and the more you
need their help, the stronger their position and their ability to charge you more. That can impact your
profit.

3. Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices down. How many
buyers are there, and how big are their orders? How much would it cost them to switch from your
products and services to those of a rival? Are your buyers strong enough to dictate terms to you? When
you deal with only a few savvy customers, they have more power, but your power increases if you have
many customers.

4. Threat of Substitution. This refers to the likelihood of your customers finding a different way of doing
what you do. For example, if you supply a unique software product that automates an important
process, people may substitute it by doing the process manually or by outsourcing it. A substitution that
is easy and cheap to make can weaken your position and threaten your profitability.
5. Threat of New Entry. Your position can be affected by people's ability to enter your market. So, think
about how easily this could be done. How easy is it to get a foothold in your industry or market? How
much would it cost, and how tightly is your sector regulated? If it takes little money and effort to enter
your market and compete effectively, or if you have little protection for your key technologies, then
rivals can quickly enter your market and weaken your position. If you have strong and durable barriers
to entry, then you can preserve a favorable position and take fair advantage of it.

Activity 1: Name It!

1. YJ Apparels

2. JJ's Chaolong/ Rice Noodles Manufacturer

3. Ajinomoto Philippines Corporation

4. Unilever Philippines

5. Jollibee Foods Corporation

Activity 2: Business Tool

YJ's Apparel

SWOT ANALYSIS

Strength Weaknesses

 The owner of this business is known by  There are so many existing clothings
many so that they are always on the list of apparel before them can also provide high
choices if you want to have a high quality quality clothing products.
clothing products.

Oopportunities Threats

 YJ's apparel are equipped on some new  The customers of this business are mostly
technologies that is being used in those who played basketball and other
providing unique designs of clothing thats sports YJ's apparel provides hig quality
why they can provide high quality clothes jersey uniform but due to pandemic their
materials. customers decreases because of the
guidelines this pandemic.

Wrap Up
1. What is manufacturing business?

A manufacturing business is any business that uses raw materials, parts, and components to assemble
finished goods.

2. What is the importance of the manufacturing industry on the economy?

3The innovation found in the manufacturing industry has helped to increase economic productivity too.
Since the Industrial Revolution, the way we produce and consume goods has changed, and it's
innovation that allowed (and continues allowing) the nation to become increasingly more productive in
the services offered.

Valuing

"No matter how great the talent or efforts, some things just take time. You can't produce a baby in one
month by getting nine women pregnant.”

- 3We are a fast growing generation. So fast, that we rush through life without even realizing it. We rush
for success because we are afraid that if we have a low standard of living, we will be of no value to
others. We are too afraid to make mistakes or to experience failure, we are in too much of a hurry to
find the right thing. We rush so much that we forget life and to let destiny take its course. Just maybe,
we should stop for a second, slow down, breathe, learn to love ourselves and be happy with what we’ve
got. We should learn to keep building, knowing that what’s yours will find you. Just maybe, we should
learn to let go of what was and what isn’t, so that we can have room for what’s coming.

Applied Economics

Retail Trade Industry

Module 5: Quarter 4

PRETEST

1. C

2. A

3. D

4. B

5. A
RECAP

1. Manufacturing - Manufacturing is the production of goods through the use of labor, machines, tools,
and chemical or biological processing or formulation. It is the essence of secondary sector of the
economy.

2. Economies of Scale - Economies of scale are cost advantages reaped by companies when production
becomes efficient. Companies can achieve economies of scale by increasing production and lowering
costs. This happens because costs are spread over a larger number of goods. ... Economies of scale can
be both internal and external.

ACTIVITY 1: Name It!

1. Mercury Drugstore

2. Drugman DrugHouse

3. Joanabelle Store

4. Prince HyperMart

5. Supernine Mall

Activity 2: Business Tool

SWOT ANALYSIS OF JOANABELLE STORE

STRENGTH  The retailer's financial backing has plenty

of capital and access to bank loans.
 The retailer's cheaper wholesale prices.
Additionally, the company offer unique
products compared to other retailers.

WEAKNESS  the store sell both cheap and expensive

brands, so it lacks a defined place in the
minds of consumers. Essentially, the store
selling to all market segments may mean it
has no competitive advantage that sets it
apart from other retailers.

OPPORTUNITIES  Rising emerging market demand

 Competitive differentiation via local
branding
  Enhancing efficiency in the supply chain

THREATS  decrease in consumer demand,

 price wars among key competitors
 increase in competition.
 change in shopping habits.

WRAP UP

1. What is the retail trade business?

Retail trade is the business activity associated with the sale of goods to the final consumer, the ultimate
customer. It is the link between wholesalers or manufacturers and the customers of the product.
Typically retailers sell goods in small quantities to consumers for personal use, not for resale or business
use.

2. What is the importance of the retail trade industry on the economy?5

Retail sales are an important economic indicator because consumer spending drives much of our
economy. Think of all of the people and companies involved in producing, distributing, and selling the
goods you use on a daily basis like food, clothes, fuel, and so on.

VALUING

I believe that so many of us go through our business hours thinking that we are living a “business life” or
expressing a “business persona”. The truth is, there is no “business me” or “personal me”. We bring all
of who we are into everything we do. We can’t check ourselves at the door as we enter our workplace,
because our beliefs about ourselves, about others, and the world around us ooze out of us no matter
where we are. And at some level, that’s what others are experiencing in their interactions with us.

It is so important to take care of and clean up all of who we are: the relationships that are eating at us;
the thoughts and beliefs we have; the angers, resentments and lack of forgiveness; the groups we’re
tied into; the ways in which we feed our bodies, minds and spirits. If we don’t, we end up tarnishing our
“logo”, our “trademark”, and eventually hold ourselves back from fully achieving all the things of which
we’re capable.

POSTTEST

1. F
2. T
 3. T
4. F
5. F

Applied Economics

Service Industry

Quarter 4: Module 66

PRETEST

PRETEST

1. D

2. D

3. A

4. C

56A

RECAP

1. Specialty Stores - These establishments typically concentrate on selling a single type or very limited
range of merchandise. Clothing stores, musical instrument stores, sewing shops, and party supply stores
all fall within this category.

2. Department Stores - These establishments are comprised of a series of departments, each of which
specializes in selling a particular grouping of products. Under this compartmentalized arrangement,
consumers go to one area of the store to purchase tableware and another area to acquire bedding, for
example.

3. Supermarkets - These retail establishments, which are primarily involved in providing food to
consumers but have increasingly ventured into other product areas in recent years, account for the vast
majority of total food-store sales in America.

4. Convenience Stores – It is a retail outlet that sells a limited range of prepared and ready-to-eat food,
bottled and fountain beverages, household staples, tobacco products, and periodical6
ACTIVITY 1: Name It!

1. PLDT
2. PALECO
3. NWWSA
4. EAST WEST BANK
5. FIRST CONSOLIDATED BANK

ACTIVITY 2: Business Tool

PORTERS FIVE FORCES of EAST WEST BANK

Threat of New Entrants:

Despite the regulatory and capital requirements of starting a new bank, between 1977 and 2002 an
average of 215 new banks opened each year according to the FDIC1. With so many new banks entering
the market each year the threat of new entrants should be extremely high. However, due to mergers
and bank failures the average number of total banks decreases by roughly 253 a year2. A core reason
for this is, what is arguably, the biggest barrier of entry for the banking industry, trust.

Because the industry deals with other people's money and financial information new banks find it
difficult to start up. Due to the nature of the industry people are more willing to place their trust in big
name, well known, major banks who they consider to be trustworthy.

Power of Suppliers:

Capital is the primary resource on any bank and there are four major suppliers (various other suppliers
[like fees] contribute to a lesser degree) of capital in the industry.

1. Customer deposits. 2. mortgages and loans. 3. mortgage-baked securities. 4. loans from other
financial institutions.

By utilizing these four major suppliers, the bank can be sure that they have the necessary resources
required to service their customers' borrowing needs while maintaining enough capital to meet
withdrawal expectations.

The power of the suppliers is largely based on the market, their power is often considered to fluctuate
between medium to high.

Power of Buyers:

The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the
power of buyers is relatively high switching costs. If a person has one bank that services their banking
needs, mortgage, savings, checking, etc, it can be a huge hassle for that person to switch to another
bank.
To try and convince customers to switch to their bank they will often times lower the price of switching,
though most people still prefer to stick with their current bank.

The internet has greatly increased the power of the consumer in the banking industry. The internet has
greatly increased the ease and reduced the cost for consumers to compare the prices of
opening/holding accounts as well as the rates offered at various banks.

Availability of Substitutes:

Some of the banking industry's largest threats of substitution are not from rival banks but from non-
financial competitors.

The industry does not suffer any real threat of substitutes as far as deposits or withdrawals, however
insurances, mutual funds, and fixed income securities are some of the many banking services that are
also offered by non-banking companies.

There is also the threat of payment method substitutes and loans are relatively high for the industry.
For example, big name electronics, jewelers, car dealers, and more tend to offer preferred financing on
"big ticket" items. Often times these non-banking companies offer a lower interest rates on payments
then the consumer would otherwise get from a traditional bank loan.

Competitive Rivalry:

The banking industry is considered highly competitive. The financial services industry has been around
for hundreds of years, and just about everyone who needs banking services already has them. Because
of this, banks must attempt to lure clients away from competitor banks. They do this by offering lower
financing, higher rates, investment services, and greater conveniences than their rivals. The banking
competition is often a race to determine which bank can offer both the best and fastest services, but has
caused banks to experience a lower ROA (Return on Assets). Given the nature of the industry it is more
likely to see further consolidation in the banking industry. Major banks tend to prefer to acquire or
merge with other banks than to spend money marketing and advertising.

WRAP UP

1. What is a service business?

A service business is an enterprise composed of a professional or team of experts that deliver work or
aid in completing a task for the benefit of its customers.

2. What is the importance of the retail trade industry on the economy?

Consumers benefit from retailing is that, retailers perform marketing functions that makes it possible for
customers to have access to a broad variety of products and services. Retailing also helps to create
place, time and possession utilities. ... Retailers provide the vital link between producers and ultimate
consumers.
VALUING

to be of service means one must actively help another or do work for someone else. So, regardless of
the end goal or result of your personal work, everyone’s job hinges on an idea or a process to aid others.
No matter what you do for a living–be you a scientist, an architect, a rock musician, a banker, a
fisherman, a politician, a medical professional, a parent, or a baker, you name it–your role is to help
people. Being of service should be the reason behind everything we do. Whether or not we’re aware of
it, we’re all in the business of being of service to one another.I think the reason why so many of us are
unhappy at our jobs is that we’ve forgotten this piece of the equation. In the rush to get our work done,
we by-passed the primary goal of our work. Rather than keep in mind that our goal is to make other
people’s lives better in some small or meaningful way, we focus on the minutia. Deadlines, emails,
conference calls, technology, difficult bosses, co-workers that get on our nerves, and long hours take our
focus off the true end goal and rearranges our priorities.We make getting through our day our goal. Or
surviving a crazy boss. Or making good money. Or creating a certain thing that pleases only us. But when
we actually take the time to put others’ requirements before our own, we get an opportunity to step
away from the internal chatter of what we need and get to something else. We get to something better.
Not only do we find success, we find a new kind of happiness. I’m sure you’ve experienced one of those
extraordinary moments of service at your job. It’s the kind of thing that stands out when you spend your
days in a cubicle or in a chaotic room full of customers.

POSTTEST

1. T 3. F 5. F

2. T 4. T