LESSON 2 What is SWOT Analysis?

SELECT APPROPRIATE BUSINESS OPPORTUNITIES
BASED ON THE NEEDS OF THE COMMUNITY
WHAT IS THIS LESSON ABOUT?
The lesson deals with the selection of appropriate business
opportunities based on the needs of the community.
WHAT WILL YOU LEARN?
At the end of the lesson, you should be able to:
1. Select appropriate business opportunities based on the needs of
the community
SWOT Analysis is a planning tool used to understand the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a
business.
1. It helps you develop your career in a way that takes best advantage
of your talents, abilities, and opportunities in your community.
2. It helps you to focus on your strengths, minimize threats, and take
the greatest possible advantage of opportunities available in your
community.
SWOL ANALYSIS

STRENGTH WEAKNESSES
LET US STUDY
 Is the business in  What could you
Words to Study demand in your improve?
 Strengths are the capital, knowledge, skill or other community?  What should you
advantage that a firm has or can acquire over its  Is the product new in avoid?
competitors in meeting the needs of its customers. your community?  What factors would
 Weakness is a defect or shortcoming which is  Is it accessible to all? cause the loss of your
increases the risk of a failure.  Will your community sales?
 Opportunity means a good position, chance, or patronize it?
prospect, as for advancement or success. THREATS
 Threat is an indication or warning of probable
OPPORTUNITIES  What obstacle do you
trouble.
face?
 SWOT stands for Strength, Weakness,  Where are the good
 What is your
Opportunities, and Threat opportunities facing
competitor doing that
you?
you should be worried
 What are the
about?
interesting trends you
 Could any of your
are aware of?
After identifying the different business opportunities in your weaknesses seriously
community, you will now try to examine which opportunity to undertake. threaten your
The SWOT Analysis will help you select the appropriate business business?
opportunities based on the needs of your community.
ACTIVITY 1 HOW MUCH HAVE YOU LEARNED?

What are the opportunities that will help me decide to start a business? Directions: Choose the correct answer from the options under each item.
Write the letter of the correct answer in a sheet of paper.
Instruction: Select three business and interview the owner on which existing
opportunity/ies influenced their decision to start their business and what 1. When there is competition, then there is a _______ in a business.
specific opportunity they met. a. Opportunity
b. Strength
c. Threat
o An unfilled want o A change
d. Weakness
o A want for more o An annoyance
2. The acronym for SWOT is ________.
o A want for better o A problem
a. Style, Wear, Operation, Tool
Specific b. Strengths, Weaknesses, Opportunities, Threats
Name of Type of Type of Opportunity c. Store, Warehouse, On-line, Technology
business business opportunity met by the d. All of the above
business 3. If the people in the community patronize your product, then your
1. business has ________.
a. Operation
b. Strength
2. c. Threats
d. Weakness
4. Which of the following questions can be categorized as an
3. opportunity?
a. What can you improve?
b. What are the interesting trends you are aware of?
4. c. What obstacle do you face?
d. Is it accessible to all?
5. You encounter difficulty in hiring workers due to low salary. This
5. is classified to________.
a. Opportunity
b. Strength
c. Threat
LET US REMEMBER d. Weakness
SWOT Analysis is a tool for evaluating the strengths, weaknesses,
opportunities, and threats which help you select the appropriate business
opportunities based on the community needs.
LET US APPLY WHAT YOU HAVE LEARNED
Directions: Read the story below and answer the given questions
Nena’s Travails
Ever since Nena was a young girl, she always liked to sew. Her
love for sewing prompted her to set up a business which included a variety
of sewing activities. She was on a business as a sole proprietorship but later
set up the business as a corporation with three shareholders, one of them
being herself. She was the primary shareholder of the business since she
was the primary provider of the service. Unfortunate family circumstances
occurred which prompted her to put practically all entrepreneurial
businesses on hold. She needed more reliable week-to-week steady income
so she decided to find a full time job working for someone else. Prior to
making the new job decision, Nena and the other owners liquidated the
business.
Nena still had a lot of calls from people who wanted to do some
work. So, she started up the business again as a sole proprietorship, using a
“cottage industry” help because of a lack of time to commit to the
management function.
It has been often suggested to Nena that she revive her business.
She would like to do so in the future. She does, though, like her full-time
position. If she starts up the business again, she needed additional financing
to buy necessary supplies and materials to make a competitive comeback
into the marketplace for “oversized handkerchiefs”. Her target market has
been tapped by small-time seamstresses since terminating her business.
Nena would very much like to start up the business again but wants
to find the right kind of business ownership for her business. At the present
time, she does know anyone who has the skills/interest to work with her as
a partner in the business. She does know of several people who would be
interested in putting money into the business if she decided to either go into
a partnership, with them being silent partners, or make it a corporation.
Use the problem-solving process to help Nena come up with a
practical decision.
A. Literal Comprehension
1. What is Nena’s problem/challenge?
_________________________________________________________
_____________________________________________________
2. List all possible alternatives that are available to Nena.
_________________________________________________________
_____________________________________________________
3. What criteria should Nena use in evaluating the alternatives?
_________________________________________________________
_____________________________________________________
Making Inference
4. Why is there a need for Nena to start a new business?
_________________________________________________________
_____________________________________________________
Critical Thinking
5. Why is selecting business opportunities important?
_________________________________________________________
_____________________________________________________
B. Choose the appropriate business opportunities that can be
identified based on the given problem by putting a check on the
second column of the table.
POSSIBLE BUSINESS OPPORTUNITIES
1. Retailing
2. Wholesaling
3. Merchandise/Products Servicing
4. Manufacturing
5. Fishery/Agriculture
RESOURCES:
 References
 Computer
 LCD/OHP
LESSON 3

PREPARE A PODUCT CONCEPT

WHAT IS THIS LESSON ABOUT?

The lesson deals with the preparation of a product concept for a
target market.
WHAT WILL YOU LEARN?
At the end of the lesson, you should be able to:
1. Identify the target market of the product;
2. Select the materials needed in preparing a product concept; and
3. Prepare a product concept and present it before a panel
LET US STUDY
Words to Study
 Market is a place where goods are offered for sale.
 Packaging is the act of designing and producing
the container for a product.
 Price is what you are going to charge your
customers for the products sold or services
rendered.
 Proponent is a person who makes a proposal or a
proposition for a product concept.
What is a product?
A product is anything that can be offered to a market that might
satisfy a want or need.
Five Ingredients that Define a Product:
 Tangible Elements – physical and technical characteristics of
the product.
 Presumed Benefits – the expected experience that customers
seek id they use the product.
 Delivery Processes – the service consideration and applications
of the product.
 Brand Promises – the reputation, assurance, and uniqueness of
the product of the manufacturer.
 Product Content – the relationship of the product with its use in
the environment.
What are the components of a product?

CAN YOU IDENTIFY THESE PRODUCTS?

PRODUCT
]

Brand (Name) Product Idea Package

Physical Description Quality Service

Properties and Level (Warranty)
Features
Example of a Product and Its Components DESIGNING A NEW PRODUCT
An effective design process:
Product Idea  Matches products or service characteristics with customer
Physical Properties: Liquid requirements
Description: Aromatic Shampoo  Ensures that customer requirements are met in the simplest and
least costly manner
Quality Level:
 Reduces the time required to design a new product or service; and
Service/Warranty:  Minimize the revisions necessary to make a design
Manufacturing/Expiry date etc.
Brand Name: Palmolive Natural
PRODUCT DEVELOPMENT STAGES
Shampoo
1. Idea Generation
2. Feasibility Study
3. Development and Testing of Product Design
Product Life Cycle
4. Final Design and Process Plans
The Product Life Cycle (PLC) is based upon the biological life
cycle. For example, a seed is planted (introduction); it begins to sprout
(growth); it shoots out leaves and puts down roots as it becomes an adult IDEA GENERATION
(maturity); after a long period as an adult the plant begins to shrink and die
out (decline). IDEA GENERATION Analysis of customer needs Market surveys
Suggestions coming from customer Suggestions coming Contact staff from
customers Ideas from research and development Actions of competitors

PRODUCT LIFE CYCLE

PRODUCT DEVELOPMENT PROCESS Who are the people capable of doing it?
 Inventors
 Engineers
 Machinist

When does the product sell best?

 The product can be sold any time since it’s not seasonal. However,
the rainy season may be the peak to sell the product better than
summer days.

What are the materials needed?

SAMPLE OF A PRODUCT CONCEPT  Iron – flat bars, rods, tins – for mechanical parts
 Sensors
 Electromagnets
 Electronic components such as diode, resistors, etc.
 Electronic circuits
 Plastic tubings, ruber

Costs
 The product will be designed to utilize recycled materials thus, a
minimum cost of production is expected to be P2, 200.00/unit
 Selling price is P3, 000.00/unit

Value Added Features

 Automated Waste Processor (AWP) is designed to segregate waste
into biodegradable and non-biodegradable in the first phase
 The second phase will segregate the non-biodegradable into metals,
The Market non-metals and other solid waste
 The third phase will process and define biodegradable into liquid
The target market of the product are: waste which can be used or further process into compost
 Households in Muntinlupa  Automated Waste Processor (AWP) is expected to lessen the
 Schools garbage thrown into dumpsites, utilize or recycle the non-
 The city and local government units biodegradable into useful materials
 Junkshops  Automated Waste Processor (AWP) will help cleaning and
greening the polluted environment in the urban
  ACTIVITY 1 ACTIVITY 2

1. How did you come up with your business idea?

Directions: In this activity, popular slogans are given. In the next column, _____________________________________________________________
list the associated product or business, and in the last column, indicate your _____________________________________________________________
opinion about the quality of the slogan by writing YES or NO. Do this in
your quiz notebook _____________________________________________________________
Name of the 2. What concepts did you have about business before starting your
National Slogans Associated Good Slogans? business?
Product/Business _____________________________________________________________
1. “Better Things for _____________________________________________________________
Better Living” _____________________________________________________________
2. “The Choice of a
3. What key areas of knowledge do you need to gain after going into
New Generation”
business?
3. “We Deliver for
_____________________________________________________________
You”
4. “What you want is _____________________________________________________________
what you get” _____________________________________________________________
5. “Be all that you 4. In what ways have friends and family members been helpful sources of
can be” assistance?
6. “A mind is a _____________________________________________________________
terrible thing to
waste” _____________________________________________________________
7. “Fly the friendly _____________________________________________________________
skies” 5. How did you prepare your product concept?
8. “It does your body _____________________________________________________________
good”
_____________________________________________________________
9. Make a run for the
border” _____________________________________________________________
10. “I love what you
do for me”
ACTIVITY 3 LET US REMEMBER
A well prepared product concept helps an entrepreneur to start a
business.

HOW MUCH HAVE YOU LEARNED?

Directions: Research your topic. Write the information on note cards. Make 1. Which of the following is not an ingredient that defines a product?
a draft of your presentation. Practice in front of a friendly audience or a. brand promises
mirror. Try to relax! Look up! Make eye contact. Speak up! b. delivery processes
c. description and features
Rehearsal Time After writing a draft of your presentation, rehearse by
d. tangible elements
yourself in front of a mirror. Then ask two others to listen and evaluate
your talk. Ask them to complete the evaluation form below. Then, use 2. Anything that can be offered to a market that might satisfy a want or
their comments to rewrite and improve your talk. Then, practice again need is called ________.
before making your final presentation. a. package
Evaluator 1 Evaluator 2 b. product
1. Did my introduction grab your interest? ___________ ___________ c. service
d. technology
2. Did I present my ideas logically? ___________ ___________
3. It is a business term which describes the complete process of bringing a
3. Were my visual aids useful? ___________ ___________
new product to market.
4. Did I speak clearly and slowly? ___________ ___________
a. business environment
5. Suggestions on how I can improve: ___________ ___________ b. new product development
c. product design
_______________________________________________________________ d. product development process
_______________________________________________________________ 4. The producer’s view of a product is called__________.
_______________________________________________________________
_______________________________________________________________ a. feature of the product
_______________________________________________________________ b. product formulation
_______________________________________________________________ c. product concept
_______________________________________________________________ d. all of the choices
_______________________________________________________________
_______________________________________________________________
5. The following are the factors to consider in preparing a product concept
_______________________________________________________________ EXCEPT:
_______________________________________________________________ a. the costs
_______________________________________________________________ b. the market
_______________________________________________________________ c. the goods and services
d. the people
LET US APPLY WHAT YOU HAVE LEARNED

Directions: Prepare and present a product concept before a panel, following

the given templates
 REFERENCES:
Teneza, Celedonia T., Ed.D., et. al., Technology and Livelihood Education
I, Shekina Publishing and Printing Press, Almanza, Las Piñas City 2006
Teneza, Celedonia T., Ed.D. , Technology and Livelihood Education,
Business Management III, Shekina Publishing and Printing Press, Almanza,
Las Piñas City 2006
International Labor Office, Training Manual for Small-Scale Entrepreneurs,
Generate Your Business Idea, pp. 19 - 28 ILO Publications, International
Labour Office, CH-1211 Geneva 22, Switzerland 2001
Villanueva-Rojo, Luz, Ed.D., et. al., Business Management III, pp. 54 – 62
Adriana Publishing Co., Inc. 2003
A Presentation on Product Planning and Development Delivered by Engr.
Enieleen J. Dozina, Product Analyst Petron Corporation, Oct 8, 2008

www.business.org
www.businessdictionary.com
www.rapidbi.com
www.mindtools.com
Resources: www.cornerstones4kids.org
 Computer Unit with Internet Access www.knowthis.com
 LCD/ Projector http://portal.cornerstone4kids.org
 Writing Materials http://chroifis.utotonto.ca
 References http://www.prod.vision.org
http://www.colgate.co.uk
Post-Test d. technology
Let us find out how much you already know. Read and understand 5. How will you determine the needs of the people in your
the items being described below. Choose the letter of the correct answer and community?
write it in your quiz notebook. a. conduct an environmental scanning
b. make use of observations
c. make use of surveys and referrals
1. The following statements tell how environmental scanning is done. d. all of the above
Choose from the options the correct arrangement of the steps in 6. The growth of industry always creates opportunities for
conducting environmental scanning. establishing an enterprise. This refers to ________.
1. Note down the needs of the people in the community. a. industrial information
b. review of old projects
2. For things and services needed, find out what are not c. synchronization of plans
available and plan how to develop these into d. technology
entrepreneurial ventures. 7. Read technical and business journals. The underlined words refer to
3. Communicate with people through interviews, ____________.
observations and advertisements on what is new. a. evaluation of development plans
4. Check those items which are already available and think b. industrial information
how they may improve the packaging and quality. c. local specialized skills
d. review of old projects
a. 4,1,2,3 b. 3,1,4,2 c. 2,4,1,3 d. 1,4,2,3
8. Why is there a need for an entrepreneur to explore the economic,
2. The statistical study of human population and its distribution is cultural, and social conditions of the community?
called _________. a. To determine the number of population in the community
a. demography b. To discover the developed enterprise in the community
b. ecology c. To find out the analytical skills among the professional in the
c. photography community
d. psychology d. To identify the problems, needs and business opportunities in
3. Environmental scanning is the acquisition and use of information the community
about events, trends and relationships in an organization’s external 9. As an entrepreneur, how will you make your product more useful
environment. New products or materials and new processes in and of good quality?
doing things are vital aspects of_______________. a. change the brand of the product into a new one
a. ecological environment b. seek assistance from the government
b. educational environment c. use your creativity and imagination
c. political environment d. none of the above
d. technological environment 10. When you identify the demands of the people then you are
4. As an entrepreneur, the first thing that you should find out are the identifying the ______________.
demands of the community. This refers to___________. a. Community Needs
a. community needs b. Industrial Information
b. evaluation c. Local Specialized Skills
c. industrial information d. Technology
11. When there is competition, then there is a___________ in business. 18. It is a business term which describes the complete process of
a. opportunity bringing a new product to market.
b. strength a. business environment
c. threat b. new product development
d. weakness c. product design
12. The acronym SWOT stands for _________. d. product development process
a. Style, Wear, Operation, Tool 19. The producer’s view of a product is called__________.
b. Strengths, Weaknesses, Opportunities, Threats a. feature of the product
c. Store, Warehouse, On – line, Technology b. product formulation
d. all of the above c. product concept
13. If the people in the community patronize your product, then your d. all of the choices
business has ______________. 20. The following are the factors to consider in preparing a product
a. Operation concept EXCEPT:
b. Strength a. costs
c. Threat b. market
d. Weakness c. goods and services
14. Which of the following questions can be categorized as an d. people
opportunity?
a. What could you improve?
b. What are the interesting trends you are aware of?
c. What obstacles do you face?
d. Is it accessible to all?
15. You encounter difficulty in hiring workers due to low salary. This
is classified as ________________.
a. opportunity
b. strength
c. threat
d. weakness
16. Which of the following is not an ingredient that defines a product?
a. brand promises
b. delivery processes
c. description and features
d. tangible elements
17. Anything that can be offered to a market that might satisfy a want
or need.
a. package
b. product
c. service
d. technology