ABM-Applied Economics - Module 7 Notes

Introduction to ABM-Applied Economics Module

  • This module focuses on analyzing different principles, tools, and techniques in creating a business.
  • Collaborative effort involving educators from both public and private institutions.
  • Designed to assist teachers and facilitators in meeting standards set by the K to 12 Curriculum.

Module Structure

  • What I Need to Know: Overview of skills/competencies expected to learn.
  • What I Know: Pre-assessment to gauge prior knowledge.
  • What’s In: Drill to connect current lesson with previous knowledge.
  • What’s New: Introduction of new lesson through varied methods.
  • What is It: Brief discussion of lesson content, concepts, and skills.
  • What’s More: Independent practice activities for skill mastery.
  • What I Have Learned: Reflection questions to process learning.
  • What I Can Do: Real-life application of new knowledge.
  • Assessment: Evaluation of mastery levels.
  • Additional Activities: Extra tasks for knowledge enrichment.

Principles in Creating a Business

  1. Scalability: Potential for business growth.
  • Example: Adapting strategies during crises (e.g., Covid-19).
  1. Big Ideas: Importance of innovative and significant concepts in business formation.
  • Sources include hobbies or interests.
  1. Systems: Acknowledgment of interdependent components within a business.
  2. Sustainability: Adaptability to economic conditions to provide quality results.
  3. Growth: Continuous internal and external growth of the business.
  • Employees as learners, requiring guidance.
  1. Vision: Clarity of future aspirations as a business guide.
  2. Purpose: Motivation behind business creation.
  3. Autonomy: Businesses possess independence, differentiating from ownership.
  4. Profitability: Creation of economic value and community impact.
  5. Standards: Benchmarking against industry success metrics.

Tools and Techniques in Creating a Business

SWOT Analysis
  • An analytical framework evaluating:
  • Strengths: Internal advantages of the company.
  • Weaknesses: Internal disadvantages needing improvement.
  • Opportunities: External factors favorable for growth.
  • Threats: External challenges that may jeopardize success.
PESTLE Analysis
  • Evaluates external factors affecting businesses:
  • Political: Influence of government policies.
  • Economic: Impact of economic conditions like inflation.
  • Social: Cultural trends and consumer behavior.
  • Technological: Innovations affecting operations.
  • Legal: Compliance with laws and regulations.
  • Environmental: Responses to climate and environmental influences.
VMOST Analysis
  • Framework for strategic planning:
  • Vision: Future aspirations of the business.
  • Mission: Action plans to achieve the vision.
  • Objectives: Specific goals linked to missions, often defined via SMART criteria.
  • Strategy: Comprehensive approach to achieve objectives.
  • Tactics: Practical steps necessary for implementation.

Conclusion and Final Notes

  • Understanding principles and tools outlined in the module is critical for success in business.
  • The applications of these principles vary based on external circumstances (e.g., pandemic impacts).
  • Use these analyses to enhance business planning and strategic development.
Additional Resources
  • Various links and provided references for further exploration of business concepts and frameworks are listed at the end of the module.