INDUSTRY AND

ENVIRONMENTAL
ANALYSIS: BUSINESS
OPPORTUNITY
IDENTIFICATION
Business
• A small portion of an industry.
• It is an undertaking of a person, group of
persons who are partners, or of stakeholders
who own a juridical entity known as
corporation.
• Its main objective is to earn profit for the
owners.
• An industry is the aggregation of different
businesses engaged in the same line of
undertaking.
Business Organizations
1. Sole Proprietorship
• Generally, it is the simplest way to set up a
business. It is owned by a single individual
who is singly responsible for running the
business and is accountable for all debts and
obligations related to the business.
2. Partnership
• It is an agreement in which two or more
persons combine their resources in a
business with a view to making profit.
• There are two types of partnership:
• General
• Limited
• General partnership – all owners share the
management of the business and each is
personally responsible for and must assume the
consequence of the actions of the partners.
• Limited partnership – some members are
general partners who control and manage the
business and may be entitled to a greater share
of the profit while other partners are limited
and contribute only capital, take no part in
control or management, and are liable for
specific extent only.
3. Corporation
• A legal entity that is separate from its
owners, the stakeholders. No
stakeholder is personally liable for
debts, obligations or acts of corporation.
4. Cooperative
• An entity organized by people with
similar needs to provide themselves
with goods or services or to jointly use
available resources to improve their
income.
SMALL, MEDIUM & LARGE SCALE
BUSINESSES
• Small Scale Business – with total
assets of P1, 500, 001 to P15, 000, 000.
• Medium Scale Business – with total
assets of P15,000,000 to P60, 000, 000.
• Large Scale Business – with total
assets of P60, 000, 000 and above
TOOLS in EVALUATING
A BUSINESS
• According to a guide developed by North Carolina’s
Small Business and Technology Development
Center, the key factors that must be considered in
analyzing the industry are the following:
• Geographic area
• Size and outlook of the industry
• Description of the product
• Buyers
• Regulatory environment
• Need to identify the leading businesses in the industry
• Factors that will affect the growth of the business.