Activity 15

Activity title: factors affecting

business environment
Learning Target: At the end of the period, I can
expect to:
• Identify the different factors that affects the business
environment
• Discuss the different factors that affects the business
environment
 References: Bello,A.ET.AL. Technology
and livelihood education,Pg. 390-394.

Values/Attitudes: Open-
mindedness
 I. Concept Notes

• Business Environment- connotes the external

forces, factors and instituions that are beyond
the control of business.
1.Demographic Factors
2. Economic Factors
a. Economic forces affecting demand- the
ability to buy a commodity depends on the
disposable income of the customers.
b. Competitive forces
i. Price cutting-also called price reduction
ii. Advertisement and promotions- persuading
the customer of a product to buy a particular
brand.
• iii.Product differentiation- differentiating the product from
those of those of the rivals
• iv.Markening strategies and customer service- adapting
various types of marketing strategies to create a market for
thier products.
• 3. Geographical and Ecological Environment
a. Geographical Condition- builds and intense impct on the
business location
b. Ecology interaction of living organisms with each other
and with their non-living environment
• 4. Social and Cultural Environment
• 5. Political and Legal Environment
a. Long-term forces-denotes the secular trends in business activities
b. Abrupt and un expected changes- sudden political changes such as
change of leadership, civil unrest or coup d’etat
c. Cyclical changes- denotes periodically anticipted changes
d. Regional Factors- regional considerations that may dominate the
political scene
6. Technological Environment- a force that creates new technologies,
creating new product and market opportunities.
Processing questions: Why do we need to
consider the factors that may affect the
business environment?
II. Checking for Understanding

• A. Guided Practice: Quiz bee

You will be divided into 4 group groups.
Each group will have a representative to
answer the questions
 B. Independent practice:
On your activity sheet, What are
the advantages of knowing the
different factors that affects the
environment? Limit your answer
in3-5 sentence.
 III. Closure (3-2-1 Activity)
• Three things you found out
• Two interesting things
• One question you still have
 IV. Reflection
• Direction: Reflect and answer the following.
If you are palnning to build a business soon, do
you think it is important to consider the
environment/location of your business? Why or
why not?