This document discusses various tools and techniques for conducting an industry and environmental analysis to identify business opportunities, including Porter's Five Forces analysis and SWOT analysis. It describes different business organization structures like sole proprietorships, partnerships, and corporations. It also outlines factors to consider when evaluating an industry, such as the target geographic area, industry size and trends, products/services, customers, regulations, and leading competitors. The key is to analyze the business's internal strengths and weaknesses as well as external opportunities and threats.

1. INDUSTRY AND
ENVIRONMENTAL
ANALYSIS :: BUSINESS
OPPORTUNITIES
IDENTIFICATION
PRESENTEDBY:GROUP
3
LESSON 3

2. PRINCIPLES, TOOLS,
AND TECHNIQUES

3. – is just a small portion of an industry
– an undertaking by a person or a group
of persons who are partners, or of
stockholders who own a juridical entity
known as a corporation
BUSINESS

4. – the aggregation of the different
businesses engaged in the same line of
undertaking
INDUSTRY

5. For a person to put up a business, it is
essential that an industry analysis first
be made.

6. FORMS OF BUSINESS
ORGANIZATION

7. SOLE
PROPRIETORSHIP
1

8. – the simplest way to set up a business
– owned by a single individual who is singly
responsible for running the business and is
accountable for all debts and obligations
related to the business
SOLE PROPRIETORSHIP

9. – The sole proprietor enjoys exclusive
control and decision-making as well as
gets all the profits earned but he also
shoulders all losses and has unlimited
liability which means payments of his loans
will extend to his personal assets.
SOLE
PROPRIETORSHIP

10. PARTNERSHIP
2

11. – an agreement in which two or more persons
combine their resources in a business with a
view to making profit
– A partnership agreement is drawn up and
profits are equally divided among the partners
according to the terms of agreement.
PARTNERSHIP

12. TWO TYPES
OF
PARTNERSHIP

13. *GENERAL*
PARTNERSHIP

14. – All owners share the management of
the business and each is personally
responsible for and must assume the
consequences of the actions of the
other partners.
GENERAL PARTNERSHIP

15. – partners control and manage the
business and may be entitled to a
greater share of the profit
GENERAL PARTNERSHIP

16. *LIMITED*
PARTNERSHIP

17. – partners are limited and contribute
only capital, they take no part in control
or management and are liable for debts
to a specific extent only.
LIMITED PARTNERSHIP

18. CORPORATION
3

19. – a legal entity that is separate from its owners,
the shareholders
– No shareholder is personally liable for the
debts, obligations or acts of the corporation.
– Directors and officers can bear liability for
their involvement with the corporation.
CORPORATION

20. – Owners have limited liabilities.
– Corporations are burdened by heavy
taxes.
CORPORATION

21. COOPERATIVE
4

22. – an entity organized by people with
similar needs to provide themselves
with goods and services or to jointly use
available resources to improve their
income
COOPERATIVE

23. – Members have an equal say in decision–
making with one vote per member regardless
of the number of shares held.
– There is open and voluntary membership,
and surplus earning is returned to the
members according to the amount of their
patronage.
COOPERATIVE

24. CLASSIFICATION OF
BUSINESSES

25. • MICRO SCALE BUSINESS – are worth below
₱1, 500, 001
• SMALL SCALE BUSINESS – total assets are
from ₱1, 500, 001 to ₱15, 000, 000
• MEDIUM SCALE BUSINESS – has total assets
from ₱15, 000, 001 to ₱60, 000, 000
• LARGE SCALE BUSINESS – assets in excess
of ₱60, 000, 000

26. TOOLS IN EVALUATING
A BUSINESS

27. According to a guide developed by
North Carolina’s Small Business
and Technology Development
Center, the key factors that
must be considered in
analyzing the industry are the
following:

28. 1. The geographic area which your
business will cater to. Is it limited to
local areas? Or will it cover all
region, the entire country or even
international market?

29. 2. The size and outlook of the
industry. What trends can be
identified?
3. Description of the product.

30. 4. The buyers have to be identified. Who are your
target customers?
5. The regulatory environment. Are the local,
national news will restrict your business? One
needs to identify government regulations
specific to the chosen industry.

31. 6. The need to identify the leading businesses in
the industry and to provide company information
on the most successful businesses that you will
be up against.
7. Factors that will affect the growth of the
business.

32. THE SWOT ANALYSIS

33. – was created in the 1960’s by business
gurus, Edmund P. Learned, C. Roland
Christensen, Kenneth Andrews and
William D. Book in their book, Business
Policy, Text and Cases.
SWOT ANALYSIS

34. – a commonly used system, which lists the
strengths, weaknesses, opportunities, and
threats, that the business faces
SWOT ANALYSIS

35. – is a tool that can help a proponent by
enabling him/her to identify and assess
the internal and external forces that can
affect the business.
SWOT ANALYSIS

36. – stands for Strengths, Weaknesses,
Opportunities and Threats
– is an analytical framework that can
help a company meet its challenges and
identify new markets
SWOT

37. – The framework can help identify the
business’s risks and rewards.
– It is also a means of identifying the
internal and external forces that may
affect the business. It is very helpful in
assessing new ventures
SWOT

38. – actually refers to the internal factors
and these are the resources and
experiences readily available to the
business proponent.
SWOT

39. THE
INTERNAL
FACTORS

40. • financial resources such as money and
sources of funds for investment;
• physical resources, such as company’s
location, facilities, machinery and equipment
• human resources consisting of employees
• access to natural resources, trademarks,
patents and copyrights; and

41. • current processes such as employee
programs, department hierarchies, and
software systems, sales and distribution
capabilities, marketing programs, etc.

42. THE
EXTERNAL
FACTORS

43. – those that affect a company, an
organization, an individual and those
outside their control
EXTERNAL FACTORS

44. • economic trends including local, national
and international financial trends,
developments in the country’s stock
markets, reforms in the banking system,
growth of the GDP;

45. • market trends such as new products or
technology or evolving buyer’s profile,
including changes in tastes and lifestyle
behavior;

46. • national and local laws and statuses as
well as political, environmental and
economic regulations;
• demographic characteristics of target
market such as the age, gender and culture
of customers;

47. • relationships with suppliers and co-
owners
• competitive threats

48. PORTER’S FIVE (5)
FORCES OF COMPETITIVE
POSITION ANALYSIS

49. – another analytical tool to assess a business
– It was developed by Michael E. Porter of
Harvard Business School in 1979 as a
framework or a guide for assessing and
evaluating the competitive strength and
position of a business organization.
PORTER’S FIVE (5) FORCES OF
COMPETITIVE POSITION ANALYSIS

50. PORTER’S FIVE (5)
FORCES OF COMPETITIVE
POSITION ANALYSIS

51. – A supplier enjoys this power if there are a
few supplier of an essential input and they
therefore control the supply of that input.
• SUPPLIER POWER •

52. – Another source of power is how unique the
product or service.
– The more unique the p
• SUPPLIER POWER •