APPLIED ECO REVIEWER

What is an industry?

• An industry refers to a group of businesses or organizations that are involved in the production of similar goods or services. 

• Industries are typically categorized based on the types of products or services they provide/produce.

Agricultural Business Industry

• Agricultural business or agribusiness, refers to the industry that encompasses all activities involved in producing, processing, marketing, and distributing agricultural products. 

• It combines agriculture and commerce, focusing on the economic aspects of farming and the supply chain of agricultural goods.

KEY COMPONENTS OF AGRICULTURAL BUSINESS

• Production- Towing crops (e.g., grains, fruits, vegetables). Raising livestock (e.g., cattle, poultry, fish). Using modern technology for enhanced efficiency.

• Processing- Converting raw agricultural products into usable goods (Ex: milling wheat into flour, processing milk intSellingo cheese)

• Marketing-  raw or processed goods to consumers, wholesalers, or retailers. Promoting organic, local, or specialty agricultural products.

• Distribution- Transportation and delivery of goods from farms to markets or directly to consumers.

EXAMPLES OF AGRICULTURAL BUSINESS

• Crop production- Growing and selling fruits, vegetables, or grains.

• Livestock Farming- Raising animals for meat, dairy, or eggs.

• Agro-Processing- Manufacturing food products like jam, juice, or bread.

• Farm Equipment Sales- Supplying tractors, tools, and machinery to farmers.

• Agricultural Technology- Developing apps, sensors, or machines to improve farming efficiency.

IMPORTANCE OF AGRICULTURAL BUSINESS

• Ensures food security. 

• Drives rural development and employment. 

• Contributes to national economies. 

• Supports sustainability and innovation in food production.

Manufacturing Industry

• This industry alludes to the division of the economy that centers on fabricating and generation. 

• It includes changing crude materials from the essential division into wrapped up merchandise or middle items.

TYPES OF MANUFACTURING INDUSTRIES

• Overwhelming Industry- Includes large-scale generation and employment of overwhelming apparatus and expansive production lines. [Steel generation, Shipbuilding, Car fabricating,  Aviation industry]

• Light Industry- Centers on smaller-scale generation, regularly creating shopper products. [Material generation, Gadgets fabricating, Nourishment and refreshment generation, Furniture making]

• Development Industry- Specializes in building framework and structures. [Private buildings, Commercial properties, Streets, bridges, and railroads]

• Chemical and Petrochemical Industry- Forms crude chemicals and petrochemicals into usable materials. [Fertilizers, Plastics, Pharmaceuticals, Paints and colors]

• Vitality Generation- Changes over common assets into usable shapes of vitality. Power era and Oil refining. [Renewable vitality frameworks: (e.g., sun powered boards, wind turbines]

• Metalworking and Apparatus Industry- Centers on smaller-scale generation, regularly creating shopper products. [Mechanical apparatus, Agrarian gear, Machine devices]

• Buyer Merchandise Industry- Produces items expecting for coordinate utilization. [Clothing and attire, Domestic apparatuses, Toys]

• Car and Transportion Industry- Produces vehicles and transportation frameworks. [Cars and bikes, Trains and rail frameworks, Flying machine generation.]

MANUFACTURING INDUSTRIES

• These businesses play a crucial part in financial advancement by giving employment, supporting exchange, and making fundamental items for society.

Retail and Service Industry

• RETAIL: “Retail” derived from the Old French word ”tailer”, refers to the act of cutting off, clipping, or dividing items for tailoring, and was first recorded in 1433 for small-quantity sales. 

• RETAILING: It involves selling or renting consumer goods or services directly to consumers, including buying, advertising, data processing, and inventory maintenance. 

• RETAILERS: They primarily sell goods or services directly to consumers, such as grocery stores, bookstores, beauty parlors, or theaters. They typically sell individual units or small groups of products to large numbers of customers.

TYPES OF RETAIL INDUSTRIES

• Department stores- a large retail establishment with multiple departments specializing in specific product groups. It offers a wide assortment of soft and hard goods, often resembling specialty stores. The store carries a variety of categories and offers a broad assortment at an average price, including family apparel, household linens, home furnishings, and appliances

• Specialty stores- are retail establishments that specialize in selling a specific range of products or services, such as audio equipment, jewelry, beauty, health care, clothing, musical instruments, sewing, and party supplies. They provide high-quality service and focus on a specific category, ensuring customers are not overwhelmed by unrelated items.

• Convenience Stores- are small, food-oriented retail establishments located in urban neighborhoods or busy roads. They offer a variety of products like newspapers, magazines, candy, soft drinks, tobacco, and lottery tickets, with longer operating hours and higher prices.

• Supermarket & Hypermarket Stores- Supermarkets and hypermarkets are retail establishments primarily selling food and household products. Supermarkets carry small appliances, apparel, bakery, film development, jams, pickles, books, and audio/video CDs. Hypermarkets are large retail facilities that carry a wide variety of products, often combining an economy supermarket with a discount department store.

• Discount Stores- It offers a wide range of products at lower prices, competing mainly on price, with less fashion-oriented brands, and typically provide lower service than higher-priced retailers.

• Multichannel Stores- These retail establishments sell products through various channels, including catalogs, mail order, telemarketing, the internet, and vending machines, with merchandise delivered to customers' doorsteps.

DIFFERENCE BETWEEN RETAILING & SHOPPING

• Retailing- Retail involves the sale of goods and services by individuals or businesses, anticipating customer needs, procuring materials, acquiring market information, and financing. It spreads across all the physical stores such as supermarkets, boutiques, big cities, and e-platforms like e-commerce. The sales are also direct. It incorporates the supply chain, inventory, customer service, and sales strategies related to all these retail operations. 

• Shopping- involves buying products for necessities or as a recreational activity, often involving window shopping and browsing, which may not always lead to a purchase. This includes shopping trends, consumer behavior, shopping preferences, and the different types of shopping experiences- luxury shopping, bargain hunting, online shopping, and tourism-related shopping. 

• Service- also known as tertiary industries, involve daily interactions between companies and consumers. These actions are services paid for by consumers, such as hiring a housing consultant for house design, taking a flight, or exploring a museum. Examples include culture, travel, media, and consulting.

TYPES OF SERVICE

• Consumer services - a specialized field directly provides services to consumers, such as a hairstylist giving a haircut or a car dealership repairing a car. 

• Business services - refers to the professional work performed to ensure the smooth operation of businesses, such as machinery maintenance or software issue resolution. 

• Public services - it includes access to clean drinking water and heat, law enforcement, and fire/rescue operations and personnel provided by the government of a nation.

DIFFERENCE OF RETAIL AND SERVICE IN SEVERAL KEY WAYS:

• Customer experience- Retail: Consumers buy a product and bring it home. Service: Customers typically experience the service at the point of sale, such as dining at a restaurant or getting a haircut. 

• Customer interaction-  Retail: The customer interaction is limited beyond the point of sale. Service: Customer interaction is a continuous or more involved process, it is often personalized. 

• Nature of the product- Retail: The business sells tangible goods or physical products to customers, such as clothing, electronics, and groceries. Service: The company offers intangible services such as healthcare, entertainment, and hospitality to cater to customer needs.

International (Export and Import)

• International trade is the exchange of goods and services between countries.

• This type of trade gives rise to the world economy, in which prices, or supply and demand, affect and affected by global events

• Export- The goods and services sold in foreign markets.

• Import- The goods or services brought from foreign producers.

Why are industries important?

• Industries play a crucial role in driving economic growth and development by producing goods and services that meet both domestic and international demands. 

• They create employment opportunities, boosting job markets and improving living standards for individuals and families. 

• It fosters innovation, contributing to technological advancements of society.

3.3 Identification of Business Opportunities

Opportunity- also defined as the potential to create something new that involves change in knowledge, technology, economy, politics, social, and demographic conditions.

Opportunities

• Can exist on paper or in the form of ideas

• usually related to the entrepreneur’s work experiences, hobbies, or social environment.

• can be found in many ways and in many places.

• Many people see opportunities but only entrepreneurs act upon them.

Sources of Business Ideas and Opportunities

• Primary Sources - refers to first-hand data or information gathered directly through:

• observations 

• Experiments

• interviews 

• surveys

• Secondary Sources - involved gathering data that have already been compiled and are available.

• Market Analysis 

• News and Trends 

• Social Media 

• Competitor Analysis

In creating or searching for Business Opportunities, one must be consider the following factors:

The NEEDS of the community

• What products are in demand?

Available Resources

• Do you have money for capital? Do you have equipment or facilities?

Skills and Interest

• Does the particular business activity meet your interest?

Market

• Where will you sell your products? Who will buy your products?

Supplies or Raw Materials

• Are materials always available?

Manpower

• Are expert workers available?

Technology

• Is your product or service new or improved?

Steps in arriving at business opportunity

1. Generating Ideas

2. Screening Process

3. Formulating Business Plan

Formulating the Concepts of the Business

• Environmental Analysis - The Environmental Analysis gives an indication whether the business can survive or not.

4.1 Socioeconomic Impact Study

What is socio-economic?

• field of study that examines social and economic factors to better understand how the combination of both influences something.

• studies on evaluating the impact development on community social and economic welfare.

• Is an in-depth analysis of how a business or industry affects the economy, society, and key stakeholders. 

• It evaluates both positive and negative impacts while considering economic sustainability and social responsibility.

the goal of socio-economic study

• is generally to bring about socioeconomic development, usually by improvements in metrics such as Gross Domestic Product, life expectancy, literacy, levels of employment, etc. 

• socioeconomic factors are characteristics that define the quality of life in a society. They influence the behaviors, attitudes, tastes, and life-styles of individuals.

Economic factors affecting the business industry

1. Income Rate- Higher inflation rate leads to decrease in purchasing power of money for the people resulting to lower demand for goods and services

2. Interests Rate- Higher interest rates will lead to decrease in the total demand in the economy and very difficult for business to find customers who are willing and able to buy the product. Lower interests rate will lead to an increase in the demand in the economy

3. Unemployment level- High level of unemployment will greatly affect business. Unemployed people will not have enough money to buy goods offered in the market

4. Labor costs- High cost of labor (salary/wage) will result to higher production costs. Higher production costs will lead to higher prices of goods and services

5. Taxes- Higher taxes will lead to decrease in take-home pay of an individual and decrease in demand in the economy

What are the benefits of measuring Socio-Economic Impact?

1. Obtaining or maintaining a license to operate. 

2. Improving the business enabling environment 

3. Strengthening value chains 

4. Fueling product and service innovation

Key Aspects of a Socioeconomic Impact Study

1. Business Viability & Community Impact-  Assesses the sustainability and profitability of a business. Evaluates its role in economic growth, employment, and social development.

2. Socioeconomic Factors Affecting Business & Industry- Market trends, inflation, government policies, employment rates, and income distribution.

3. Impact on Consumers (New Products & Services)- Introduction of innovative products and services that improve quality of life. Changes in consumer behavior and market demand. Benefits such as increased convenience, efficiency, and accessibility. Challenges like affordability, ethical concerns, and digital transformation.

4. Impact on Suppliers & Investors (Capital & Income)- Suppliers: Increased demand for raw materials, logistics, and production. Investors: Growth in capital flow, stock value, and profitability potential. Opportunities for new business partnerships and investment ventures. Risks such as market volatility and economic downturns.

5. Strategic Recommendations- Minimizing negative impacts: Ethical sourcing, environmental responsibility, fair labor practices. Maximizing positive impacts: Encouraging sustainable innovation, supporting small businesses, responsible investment.

Purpose of a Socioeconomic Impact Study

• Helps businesses and policymakers make informed decisions.

• Ensures a balance between profitability and community well-being. 

• Promotes long-term economic and social sustainability.

4.2 Socioeconomic Impact Study

Government

• This refers to how businesses interact with government systems, contributing to national development and addressing public needs.

• Government regulations influence economic activities and social well-being, focusing on resource use, stakeholder characteristics, and cultural impacts.

Difference between Tax Collection and Tax Revenue

1. Tax Collection- Tax Collection refers The process by which the government collects taxes from individuals, businesses, and other entities.

2. Tax Revenue- Tax Revenue refers to the total amount collected from the government or the income generated through collecting taxes from individuals or businesses.

Poverty Alleviation

• Poverty Alleviation - refers to government programs and policies aimed at reducing poverty and improving the living conditions of the poor. It focuses on providing support to those in need to help them become self-sufficient. 

• The government implements social programs, creates job opportunities, provides financial aid, and ensures access to education and healthcare to reduce the poverty rate.

Examples: 

• Conditional Cash Transfers (CCT)- Programs like the Philippines' Pantawid Pamilyang Pilipino Program (4Ps) provide financial assistance to low-income families if they meet specific conditions (e.g., sending children to school, getting regular health check-ups).

• Livelihood programs- Skills training and microfinance opportunities to help people start small businesses.

• Subsidized housing projects- Affordable housing options for low-income families.

BASIC SERVICES

• are essential services provided by the government to ensure citizens' well-being and quality of life. These include healthcare, education, public transportation, water supply, sanitation, and security.

Examples: 

• Healthcare- Free or affordable medical services provided by public hospitals, such as the Philippines' PhilHealth program.

• Education- Public schools and scholarship programs that ensure every child has access to primary and secondary education.

• Infrastructure- Building and maintaining roads, bridges, and public transportation systems.

• Utilities- Providing clean drinking water, electricity, and sanitation systems.

Households

• Household welfare through changes in consumption prices and wage incomes, often benefiting poorer households more significantly. 

International Trade

• Examine the effects of trade liberalization on economic growth and household budgets, highlighting disparities in impacts across different income levels

IMPORT VS. EXPORT

Import

• Bringing goods or services into a country from another country for consumption, resale, or use in production. 

• To meet domestic demand, fill supply gaps, or take advantage of lower prices or better quality from foreign sources.

Export

• Sending goods or services from one country to another country for consumption, resale, or use in production. 

• To generate revenue, increase market share, and expand business operations globally.