Applied Economics: Business Environment 666
Applied Economics: Business Environment 666
com
Applied SENIOR
HIGH
Economics SCHOOL
Self-Learning
Module
Business Environment 1
666
Quarter 4
www.shsph.blogspot.com
Applied Economics
Quarter 4 – Self-Learning Module 1: Business Environment
First Edition, 2020
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Applied SENIOR
HIGH
Economics
SCHOOL
Self-Learning
Module
1
Quarter 4
Business Environment
www.shsph.blogspot.com
Introductory Message
Welcome to the Senior High School – Applied Economics Self Learning Module
on Business Environment!
This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
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For the learner:
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.
Posttest - This measures how much you have learned from the
entire module.
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EXPECTATIONS
PRETEST
Directions: Read each statement carefully. Choose the letter of the best answer and
write it on a separate sheet of paper.
A. External Environment
B. Internal Environment
C. Macro Environment
D. Micro Environment
5. It is a strategic tool to identify the external and internal environment.
A. Environmental Analysis
B. Environmental Scanning
C. Business Analysis
D. Business Environment
RECAP
Directions: Describe the effects of taxation on income, indirect tax, and inflation.
1. ______________________________________________________________________________.
2. ______________________________________________________________________________.
3. ______________________________________________________________________________.
LESSON
Business Environment
It includes all internal and external factors that affect the company’s
performance and functions. It includes employees, customers, management, supply
and demand, business regulations, and competition.
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Every business organization has an internal and external environment. For
the organization to be successful, it is important to study its environment regularly.
This is to assess any developments and understand factors that can contribute to its
success.
Internal Environment
External Environment
There are two elements in the external environment: micro and macro. These
environmental factors are beyond the control of the business but they still minimize
the impact if the business has an effective strategic plan.
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Micro Environment Factors
1. Suppliers
Suppliers can control the success of the business when they hold power. The
supplier holds the power when they are the only or the largest supplier of the goods
in the market.
2. Resellers
3. Customers
4. Competition
Those who sell the same or similar products and services as your organization
is called competitors. The presence of one or more competitors can reduce the prices
of goods and services as the companies attempt to gain a larger market share.
1. Political factors
These are about how and to what degree a government intervenes in the
economy. It includes government policy, political stability or instability in overseas
markets, foreign trade policy, tax policy, labor law, environmental law, and trade
restrictions.
2. Economic factors
3. Social Factors
These include the shared belief and attitudes of the population. These factors
are population growth, age distribution, health consciousness, career, attitudes and
so on.
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4. Technological Factors
5. Environmental Factors
These factors have become important due to the increasing scarcity of raw
materials, pollution targets, doing business as an ethical and sustainable company.
6. Legal Factors
ACTIVITIES
2. Resellers
3. Customers
4. Competitors
1. Political
2. Economic
3. Social
4. Technological
5. Environmental
6. Legal
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WRAP-UP
To summarize what you have learned in the lesson, answer the following
questions:
VALUING
Reflect on this!
“You cannot get through a single day without having an impact on the world around
you. What you do makes a difference and you have to decide what kind of a
difference you want to make.”
—Jane Goodall
POSTTEST
____________2. The presence of one or more competitors can reduce the prices of
goods and services as the companies attempt to gain a larger market
share.
KEY TO CORRECTION
5. A 5. F
4. A 4. T
3. C 3. F
2. D 2. T
1. D 1. T
PRETEST POSTTEST:
References
Academy, Professional. "Marketing Theories – PESTEL Analysis." Professional
Academy. Accessed August 13, 2020.
https://www.professionalacademy.com/blogs-and-advice/marketing-
theories---pestel-analysis.
Brian BrassawBrian Formerly Managed the Earth911 Recycling Search and Shared
Green Living Tips and Tricks on Earth911’s Instagram, Manojweb, and
Venkanna. "Earth Day: 23 of the Greatest Environmental Quotes." Earth 911.
July 24, 2020. Accessed August 13, 2020.
https://earth911.com/inspire/earth-day-23-quotes/.