WHAT I KNOW
1. The process by which one or two or more persons engage in commercial activity
for profit.
A. Business c. Trade
B. Commerce d. Partnership
2. Persons or company who supplies goods and services.
a. Consumer c. Government
b. Creditors d. Suppliers
2. The capability of a system to expand its total output under an
increased volume of work when resources are added.
a. Autonomy c. Profitability
b. Big Ideas d. Scalability
3. A business which has its own identity and is distinct from the owners is
called ____.
a. Autonomy c. Profitability
b. Big Ideas d. Scalability
5. A business with the main purpose of gaining profit is called ___________.
a. Autonomy c. Profitability
b. Big Ideas d. Scalability
6. A business that creates its own plan to expand its economic growth.
a. Autonomy c. Profitability
b. Big Ideas d. Scalability
7. Which brand of drinks may be a very good substitute for Coca-Cola?
a. Mirinda c. Sarsi
b. Pepsi d. Seven-Up
8. Industry rivalry among companies of the same or related industry is
called_______.
a. Competition c. Alliance
b. Distribution d. Threats
9. Competitive advantages that can also be gained by business that seek
cooperation within or related industries is termed as____.
a. Alliance c. Defensive strategy
b. Cost leadership d. Differentiation
10. Individuals who will buy the products and services in the market.
a. consumers c. government
b. creditors d. supplier
11. Margarine is a good substitute for ____________________.
a. butter c. cheddar
b. cream cheese d. Olive oil
12. A strategy that businesses often use marketing and some ads are
against the competitors.
a. Advertising c. Alliance
b. Cost Leadership d. Defensive Strategy
13. An advantage that occurs when a business is able to offer the same
quality product as its competitors, but at a lower price.
a. Differentiation c. Defensive Strategy
b. Alliance d. Cost Leadership
14. Gained by using defensive strategy the business to set them apart
itself from its competitors.
a. Defensive Strategy c. Differentiation
b. Alliance d. Cost Leadership
15. Products use as replacements to other products that gives the same
purpose.
a. clone c. original
b. substitutes d. brand
ASSESSMENT
1.These are individuals/group of individuals who buy goods and services for
personal and business use.
a. Consumer c. Government
b. Creditors d. Suppliers
2.The capability of a company to produce or increase output when resources are
added is called _______________________.
a. Autonomy c. Profitability
b. Durability d. Scalability
3.Business is a legal entity that is separate and distinct from owner.
a. Autonomy c. Profitability
b. Durability d. Scalability
4.Ford and Toyota sells the same products; it evident that there is a ____________ .
a. Competition c. Alliance
b. Distribution d. Threats
5.Competitive advantages can also be gained by business that seeks association or
cooperation with other business:
a. Alliance c. Defensive strategy
b. Cost leadership d. Differentiation
6. Individual or firms who desire products and services in the market for consumption
or business.
a. Consumers c. Government
b. Creditors d. Supplier
7. Which does not belong to the group?
a. Colgate c. Close-Up
b. Head and Shoulders d. Hapee
8. A strategy that businesses use to distinguish themselves apart from their
competitors.
a. Differentiation c. Defensive Strategy
b. Alliance d. Cost Leadership
9. This method occurs when a business is able to offer the same quality product as
its competitors and sell it at a lower price.
a. Differentiation c. Defensive Strategy
b. Alliance d. Cost Leadership
10. The advantage gained by this type of strategy is that it allows the business to
further distance itself by using defensive method.
a. Defensive strategy c. Differentiation
b. Alliance d. Cost Leadership
11. An economic activity that is engage in buying and selling of goods and services in
exchange of money.
a. Business c. Trade
b. Commerce d. Partnership
12. Business ability to use its resources to produce profit.
a. autonomy c. profitability
b. big idea d. scalability
13. These are alternative goods that can easily replace by other products either
perfectly or in part.
a. brand c. original
b. clone d. substitutes
14. Printed and online promotion is needed in starting your business.
a. advertising c. profitability
b. big ideas d. scalability
15. Entrepreneurs think big and make this idea into a reality for the success of their
business.
a. autonomy c. profitability
b. big idea d. scalability
Principles in Creating a Business
The principles of a business are the driving forces that make it successful. Below the
ten key principles to make a business a success:
1. Scalability- A business must be scalable for it to be successful. Scalability is the
capability of a company to sustain or improve its performance in terms of profitability
or efficiency when its sales volume increases.
2. Big Ideas- A business is no more effective than the idea upon which it is built.
Business creates its own plan to expand its economic growth.
3. Systems- A business is a system in which all parts contribute to the success or
failure of the whole. In this system, everything must work together from employee to
president; from equipment to resources.
4. Sustainability- A business must be dynamic- able to thrive through all economic
conditions, in all markets, providing meaningful highly differentiated results to all of
its customers. Such differentiation is the key to survival.
5.Growth- Growth is essential in business. Without continued growth,
operations will stagnate. This can result in lowered standards of quality for products
or services, decreased customer service, and poor employee morale.
6. Vision- A business must manifest the higher purpose upon which it was seeded,
the vision it was meant to exemplify, the mission it was intended to fulfil.
7. Purpose- A business is the fruit of a Higher Aim in the mind of the person who
conceived it.
8. Autonomy- A business is not part of the owner's life, but is, in fact, its own entity.
9. Profitability- A business is an economic entity, driving an economic reality,
creating an economic certainty for the communities in which it thrives.
10. Standards- A business creates a standard against which all businesses are
measured as either successful, or not.
So, there you have it, the ten principles upon which to conceive, grow, and
expand your business.
Tools in Evaluating a Business
It's the Holy Grail for small business owners – finding ways to make efficiency
savings in all aspects of their operations. The good news is there are plenty of
tools, tips and techniques available to help them make cost savings and boost
productivity. Here are 10 of them.
1. Use technology to speed up workflow- Businesses should be looking to
innovations in technology to solve day-to-day inconveniences and to increasee
efficiency.
2. Shorter meetings fuel efficiency- Hold a brief meeting standing up, every
morning, where each person explains what they are going to work on that day to
ensure everyone is on the right track and not wasting time on non-urgent tasks.
3. Smart office space pays- Office space can involve a big outlay for SMEs, but
it is also an area where some smarter thinking can make a real difference.
4. Advertisement- Advertising keeps your business top of mind so consumers
think of it when they require or need a service or product.
5. Small changes, big savings--One way of improving efficiency is for business
owners to make small changes to the way they handle their company's expenses.
6. Keep a firm grip on cash flow-"Cash is King not profit”. Ensure the right
management of your inflow and outflow of cash.
7. Stay connected on the move- The growing trend towards mobile and flexible
working means that employees are permanently connected and on the go.
8. Use time more efficiently-Being more efficient is more about being than
doing. It's probably 90% mindset, (Allan, 2013). In addition, “The shorter the
amount of time you allow yourself, the more you will get done”.
9. Get the best deal on insurance- Businesses need insurance because it helps
cover the costs associated with property damage and liability claims.
10. Don't be lax with the legal
In the hectic process of starting up a business, the founders often put off sorting
out the legal matters until later, or not at all.
Since business is a commercial activity and its main purpose is profit, in the book
published by the Development Academy of the Philippines, how to prepare project
feasibility studies, it includes an industry analysis of the following important factors.
COMPETITION AND COMPETITORS
Industry rivalry among companies of the same or related industry is an inevitable part
of the business world of any business size. Intense competition leads to reduced
profit potential for companies in the same industry. Businesses seek constantly
competitive advantage.
Competitive Advantage
is what sets your business apart from your competition.
highlights the benefits a customer receives when they do business with you.
It could be your products, service, reputation, or even your location.
Different methods of competitive advantage which it can be done and are classified
into four categories:
1.Cost Leadership-an advantage occurs when business is able to offers same
products at a lower price.
2.Differentiation-Find attributes that is important and set them apart from their
competitors.
3.Defensive Strategies-used a defensive strategy to distance themselves from
competitors.
4.Alliances-advantage of seeking strategic alliance with other within related or within
businesses.
CUSTOMERS
Individuals or companies who desires to possess or make use of products and
services. They play a huge role in the success of your business. Customers likewise
can force down prices, demand higher quality or more service, and play competitors off
against each other—all at the expense of industry profits.
SUPPLIERS
Provide inputs that the firms in an industry need to create the goods and services
that they in turn sell to their buyers. Suppliers can exert bargaining power on
participants in an industry by raising prices or reducing the quality of purchased goods
and services.
A business may need one or more suppliers. It is important to develop suppliers who
are reliable in terms of quality of what they supply and their dependability in coming
up with the things you order from them. It is important to maintain good relationships
with one’s suppliers; they are the key to one’s continued access to goods and to raw
materials that will be needed for the business.
SUBSTITUTES
Goods/services that can be used in place for another. These goods
may, even if partly, satisfy the same needs of a consumer such that the
consumer may use one for instead for another.
substitute products or services limit the potential of an industry.
margarine can be a substitute for butter. Likewise Coke for Pepsi
But not everybody will be willing to switch brands because they have
developed a taste for a particular cola. This is why manufacturers try to
differentiate their products from their competitors so that the customers
will develop product loyalty from their brand.
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