11

ORGANIZATION
AND
MANAGEMENT
Quarter 1 – Module 3:
The Business Envrionment

Region I
ALAMINOS CITY DIVISION
Alaminos City, Pangasinan
Project Write, Write, Write
Alternative Instructional Module
Organization and Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 3: The Business Environment
First Edition, 2020

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of the Government of the Philippines. However, prior approval of the government agency or
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royalties.

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trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Vida M. Teodoro
Editors: Benjamin B. Rabago Jr. and Siegfred Levy D. Saylago
Reviewer: Adolf B. Medrano, EdD
Illustrator:
Layout Artist:
Management Team: Lorna G. Bugayong, PhD, CESO VI
Schools Division Superintendent
Aguedo C. Fernandez, CESO VI
Assistant Schools Division Superintendent
Wilfredo E. Sindayen, EdD, Division CID Chief
Ronald B. Radoc, EdD, EPS, LRMS
Adolf B. Medrano, EdD, EPS, Mathematics

Printed in the Philippines by:

Department of Education – Region 1 – Alaminos City Division

Office Address: San Jose Drive, Poblacion, Alaminos City, Pangasinan

Telefax: (075) 205-0644/205-0643

E-mail Address:
 11

ORGANIZATION
AND
MANAGEMENT
Quarter 1 – Module 3:
The Business Environment
Introductory Message
For the facilitator:

Welcome to the Organization and Management 11 Module on The Business

Environment!

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

2
For the learner:

Welcome to the Organization and Management 11) Module on The Business

Environment!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to
process what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or

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 skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

4
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master the Business Environment. The scope of this module permits it to be used
in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is divided into two lessons, namely:

 Lesson 1 – Environmental Forces and Scanning
 Lesson 2 – The Local and International Business Environment of the Firm
Most Essential Learning Competencies:
 Analyze various forces/elements influencing local and international business
environment using PEST and SWOT strategies.

After going through this module, you are expected to:

1. identify the various forces/elements of the firm’s environment;
2. summarize these forces/elements using SWOT and PESTLE strategies; and
3. describe the local and international business environment of a firm.

5
 What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. This environment is consists of those factors that affect a business

enterprise from the outside. This environment includes shareholders,
competitors, customers, society, government laws and regulations, policies,
and technology
a. Internal environment
b. Micro environment
c. Macro environment
d. External environment

2. It is strategic analytical framework consists of five individual forces that

shape an overall extent of competition in an industry.
a. SWOT analysis
b. PESTLE analysis
c. Benchmarking
d. Porter’s analysis

3. It is the ultimate source of many inputs, such as raw materials and energy,
which firms use in their production. It includes geographical and ecological
factors, such as minerals and oil reserves, water and forest resources, and
weather and climatic conditions which are all highly significant for various
business activities.
a. Economic environment
b. Demographic environment
c. Natural environment
d. Ecological environment

4. It is a framework or tool used to analyze and monitor the macro-

environmental factors that may have a profound impact on an organization’s
performance.
a. SWOT analysis
b. Porter’s analysis
c. PESTLE analysis
d. Benchmarking

5. It is an environment that firm can change or modify to a certain extent to

improve its efficiency.
a. Micro environment
b. Macro environment
c. Internal environment
d. External environment

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6. Analysis is a framework that helps in examining/evaluating/assessing the
level of competition within a certain industry. It is especially useful when
starting a new business or when entering a new industry sector. According
to this framework, competitiveness does not only come from competitors.
Rather, the state of competition in an industry depends on five basic forces.
a. Benchmarking
b. PESTLE analysis
c. Porter’s analysis
d. SWOT analysis

7. It is an indirectly interactive force in an organization’s external environment.

a. sociocultural forces
b. competitive forces
c. legal/political forces
d. technological forces

8. It is the ability of an individual to favorably receive and adjust to an

unfamiliar way of doing things.
a. Monochronic culture
b. Cultural intelligence
c. Polychronic culture
d. Understanding culture

9. It is one of the features of organizational climate.

a. How the employees feel about working for the organization.
b. How organizations share values, beliefs, habits, norms, philosophies,
experiences, and behaviors.
c. What the company does best.
d. A key concept that guides managers and their actions.

10. Managers in the US are risk-takers. Filipinos are seguristas who are afraid
of business risks in the market. The cultural dimension being described is
_______________.
a. Individualism-collectivism
b. Time orientation
c. Uncertainty avoidance
d. Power distance

11. They ensure the organization’s continuous flow of needed and reasonably
priced inputs or material required for producing their goods and rendering
their services.
a. Suppliers
b. Pressure Groups
c. Stakeholders
d. Customers

7
12. It refers to gender, age, educational level, income, number of family
members, geographic and origin, among others which may influence some
managerial decisions in the organizations.
a. World and ecological situations
b. Sociocultural situations
c. Politico-legal situations
d. Demographic situations

13. It is a directly interactive force in an organization’s external environment.

a. technological forces
b. leadership
c. economic forces
d. customers

14. Filipinos and Japanese who are not risk-takers are long-term thinkers. On
the other hand, the Americans who are risk-takers prefer short term
thinking. The cultural dimension being described is _______________.
a. Uncertainty avoidance
b. Masculinity-femininity
c. Individualism-collectivism
d. Time orientation

15. It includes the customers’ changing values and preferences; it incorporates

customs that could also affect management practices in companies.
a. Politico-legal situations
b. Demographic situations
c. Sociocultural situations
d. Economic situations

8
Lesson
Environmental Forces and
1 Environmental Scanning
A business firm may be visualized as an institution in society, surrounded
by the environment (i.e., various external forces influence its functioning). It is said
that business is a product of the environment or business is the creation of its
environment.

What’s In

The next activity will give you a short review from your previous module.
This is necessary before you proceed to the next.

Activity 1: True or False

Directions: Write TRUE if the statement is correct, otherwise write FALSE on the
space provided before the number. Write your answer on a separate sheet of paper.

_______ 1. Management is working with and through people.

_______ 2. Management is the process of attaining objectives in an efficient and

thorough ways.

_______ 3. Management practices are applied in all types of organizations.

_______ 4. Successful managers must possess leadership skill only.

_______ 5. Management functions involve a set of interrelated activities called

planning, organizing, leading and controlling.

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 What’s New

If a business wants to be successful in the marketplace, it is necessary for it

to understand fully what factors exert impact on the development of its company.
Once entrepreneurs know about both positive and negative effects within and
outside the company, they can produce suitable strategies to handle any predicted
situation.

Activity 2: Fact or Bluff

Directions: Write FACT if the statement gives the correct information and BLUFF
if the statement provides incorrect information. Write your answer on the space
provided.

___________ [Link] seeking for and sorting through data about the environment is
called environmental scanning.
___________ 2. SWOT analysis is focused on the external environments of the
organization.
___________ 3. The internal business environment consist of resources, research
and development, production, procurement of supplies and the
products and services it offers.
___________ 4. PESTLE analysis focuses on the micro environment of the firm.
___________ 5. SWOT stands for Strengths, Weaknesses, Openness and Threats.

What is It

Guided by your passion and the burning desire in your heart to learn new
things, you are now ready to take another step forward. Carefully read and
understand the next paragraphs.

10
Environmental Forces and Environmental Scanning
Business Environment refers to the sum or collection of all internal
business environment (within) and external business environment (outside)
factors. These factors affect the function of the company and how a company
works directly or indirectly.
Given below are some important elements of micro environment:
1. Suppliers: They are one who provides inputs such as material, components,
labor and other stock of goods to the firm, which is required to undertake
manufacturing activities. They have the power to change the firm’s position in the
market and its capabilities.

2. Customers: They are individuals or businesses that purchases another

company's goods or services. It must be noted that without customers no business
can survive for a long time. Successful organizations depend on the effective
fulfillment of customers’ needs and wants.

3. Marketing intermediaries: In the firm's external micro-environment, marketing

intermediaries play an essential role in the selling and distribution of its products
to the final customers. Marketing provides an important link between a business
firm and its ultimate customers.

4. Competitors: These are rival sellers operating in the same industry. The
nature and intensity of competition highly influence the firm’s products and
services. Competition is what keeps the firm thriving. For ensure survival, a close
watch on the competitors (both existing and potential) future moves and actions
are necessary. In addition, competitor analysis also helps in maintaining or
improving market share and position.

5. Publics: They are an important force in the external microenvironment.

Environmentalists, media groups, women’s associations, consumer protection
groups, local groups, and citizens association are some important examples of
publics which have a significant bearing on the business decisions of the firm.

External Macro-Environment

Businesses do not operate in a vacuum, and they are influenced by forces

beyond their control. How they respond—and how quickly they respond—to these

11
external forces can make the difference between success and failure, especially in
today’s fast-paced business climate.

1. Demographic Environment: The demographic environment includes gender,

age, education level, income, number of family members that may also influence
managerial decisions in the organizations.

2. Socio-cultural Environment: Includes the customers’ changing values and

preferences. In most companies, customs could also affect management practices.

3. Political-legal Environment: Refers to the national or local laws, international

laws, and rules and regulations that influence organizational management.

4. Economic Environment: It consists of external factors in a business market

and the broader economy that can influence a business. It can be divided into
micro and macro environments. These factors act constraints on the business and
organizations do not have control over it.

5. Technological Environment: The use of varied types of electronic gadgets and

advanced technology such as computers, robotics, microprocessors, and others
that have revolutionized business management.

6. World or Ecological Environment: It pertains to the increasing number of

global competitors and market, as well as the nature and conditions of the
changing natural environment. Products produced by companies must cater to the
changing needs of people in the global community, while, at the same time,
considering the impact on the natural environment.

Internal Environment

An organization's internal environment is composed of the elements within

the organization. It includes current employees, management, and especially
corporate culture. The factors which are under the control of the organization, but
can influence business strategy and other decisions are termed as internal factors.
It includes: value system, organization structure, corporate culture, human
resources, physical resources and technological capabilities.

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Specific Components of the Internal and External Business Environment

Source:[Link]

What is a SWOT Analysis?

SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a

framework used to evaluate a company's competitive position and to develop
strategic planning. SWOT analysis assesses internal and external factors, as well as
current and future potentials.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven

look at the strengths and weaknesses of an organization, its initiatives, or an
industry. The organization needs to keep the analysis accurate by avoiding pre-
conceived beliefs or gray areas and instead, focus on real-life contexts. Companies
should use it as a guide and not necessarily as a prescription.

KEY TAKEAWAYS

 SWOT analysis is a strategic planning technique that provides assessment

tools.
 Identifying core strengths, weaknesses, opportunities, and threats lead to
fact-based analysis, fresh perspectives, and new ideas.
 SWOT analysis works best when diverse groups or voices within an
organization are free to provide realistic information rather than prescribed
messaging.

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 S W O T
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
 Things your  Things your  Underserved  Emerging
company does company lacks markets for competitors
well  Things your specific products  Changing
 Qualities that competitors do  Few competitors regulatory
separate you better than you in your area environment
from your  Resource  Emerging need  Negative
competitors limitations for your press/media
 Internal  Unclear unique products or coverage
resources such selling services  Changing
as skilled, propositions  Press/media customer
knowledgeable coverage of your attitudes toward
staff company your company
 Tangible assets
such as
property, capital
proprietary,
technologies,
etc.

Porter’s Five Forces

Michael Porter is the founder of the modern strategy field and one of the
world’s most influential thinkers on management and competitiveness
([Link]
Five Forces analysis is a framework that helps in analyzing the level of
competition within a certain industry. It is especially useful when starting a new
business or when entering a new industry sector.

The five forces are:

1. Supplier Power. This force analyzes how much power a business's supplier

has and how much control it has over the potential to raise its prices, which,

in turn, lowers a business's profitability. It also assesses the number of

suppliers of raw materials and other resources that are available. The fewer

suppliers there are the more power they have. Businesses are in a better

position when there are multiple suppliers.

2. Buyer Power. This force examines the power of the consumer, and their

effect on pricing and quality. Consumers have power when they are fewer in

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 number but there are plentiful sellers and it's easy for consumers to switch.

Conversely, buying power is low when consumers purchase products in

small amounts and the seller's product are very different from that of its

competitors.

3. Competitive Rivalry. This force examines how intense the competition is in

the marketplace. It considers the number of existing competitors and what

each one can do. Rivalry competition is high when there are just a few

businesses selling a product or service, when the industry is growing and

when consumers can easily switch to a competitor's offering for little cost.

When rivalry competition is high, advertising and price wars ensue, which

can hurt a business's bottom line.

4. Threat of Substitution. This force studies how easy it is for consumers to

switch from a business's product or service to that of a competitor. It

examines the number of competitors, how their prices and quality compare

to the business being examined, and how much of a profit those competitors

are earning, which would determine if they can lower their costs even more.

The threat of substitutes is informed by switching costs, both immediate and

long-term, as well as consumers' inclination to change.

5. Threat of New Entry. This force considers how easy or difficult it is for

competitors to join the marketplace. The easier it is for a new competitor to

gain entry, the greater the risk is of an established business's market share

being depleted. Barriers to entry include absolute cost advantages, access to

inputs, economies of scale and strong brand identity.

PESTLE Analysis

PESTLE analysis is an acronym for Political, Economic, Social, Technological,

Legal and Environmental. This tool is used to identify the macro (external)
forces facing an organization. A PESTLE analysis helps the members understand

15
the organization’s market and business position better, plan strategically, and
conduct market research in new and existing markets.

P E S T L E

ENVIRONMENTAL
TECHNOLOGICAL
ECONOMIC
POLITICAL
Factors

Factors

SOCIAL
Factors

Factors

Factors

Factors
LEGAL
Components of Environmental Scanning

A competitive advantage is what makes an entity's goods or services superior

to all of a customer's other choices. To create a competitive advantage,
organizations must be clear on the benefits they offer, target market and
competitors. An organization can also adapt the process of benchmarking to
compare its operations and processes against other organizations in the industry.
Members of the organization must take into consideration the best case or
even worst case scenarios to have a better idea of the future.
Forecasting is used in business strategy development. Critical decisions are
made based on the present economic conditions and how it may look after few
years.

Lesson
The Local and International Business
2 Environment of the Firm

Understanding the local and international business environment of the firm

requires managers of organizations to sharpen their cultural intelligence. Cultural
intelligence is an individual’s ability to receive favorably and adjust to an unfamiliar

16
way of doing things. This will enable them to develop their ability and adapt to
different cultures, both local and international, that may affect the organization to
which they belong.

What’s In

A short review is needed before you progress to the next lesson..

Activity 3: Identify Me

Directions: Identify the word/s that is being described on each number. Write
your answer on a separate sheet of paper.

________________ 1. These are the factors/elements outside the organization that

has an effect in the performance of the organization.
________________ 2. The elements within an organization that affect the organization
in a positive or negative manner.
________________ 3. This technique is used to analyze the micro environment of the
firm.
________________ 4. A model used in business that refers to the five important
factors that drive a firm's competitive position within an
industry.
________________ 5. It describes a framework of macro-environmental factors used
in the environmental

What’s New

Activity 4: Check Me, Cross Me

Directions: Which cultural dimensions are practiced in the Philippines? Put a

check mark √ or an X mark beside the cultural dimension to express your
affirmative or negative response. Write your answer on a separate sheet of paper.

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 Cultural Dimension √ or X
1. Low power distance ______
2. High power distance ______
3. Low uncertainty avoidance ______
4. High uncertainty avoidance ______
5. Individualism ______
6. Collectivism ______
7. Masculinity ______
8. Femininity ______
9. Short term thinking ______
10. Long term thinking ______

What is It

Culture is society’s way of creating social connectivity among a group of

people through origin, belief, institutions, religion, music, and art. In business,
culture is often defined by shared behaviors, experiences, and interactions among
people in the workplace. Business and intercultural management experts have
explored the subject of cultural influence in workplaces for decades.

Cultures around the world are getting more and more interconnected and
the business world is becoming increasingly global. For managers this means that
they should be able to work with a large variety of people from different countries
and cultural backgrounds. However, since most people are so strongly immersed in
their own culture, they often fail to see how it affects their patterns of thinking or
their behavior.

Monochronic vs Polychronic Cultures

Monochronic cultures refer to cultures wherein people tend to do one thing
at a time; also, these cultures emphasize punctuality and sticking to set rules.
Polychronic cultures, on the other hand, are more flexible as regards time;
accomplishing many different things at once is also common for these cultures.

18
 There are six cultural dimensions cited by Hofstede (1980).
1. Power Distance – the degree to which a society accepts or rejects the
unequal distribution of power among people in organizations and
institutions of society.
2. Uncertainty Avoidance – the degree to which society is uncomfortable with
risk, change, and situational uncertainty.
3. Individualism-Collectivism – the degree to which a society emphasizes
individual accomplishments versus collective accomplishments.
4. Masculinity-Femininity – the degree to which a society values
assertiveness and feelings of material success versus concern for
relationships.
5. Time Orientation – the degree to which a society emphasizes short-term
thinking versus greater concern for the future or long-term thinking.

6. Indulgence vs. Restraint – considers the extent and tendency for a society
to fulfill its desires. In other words, this dimension revolves around how
societies can control their impulses and desires.

What’s More

Activity 5: Fill Up
Directions: Fill up the table below by providing examples on each of the external
environment that may affect the business organization. Write your answers on a
separate sheet.

Economic Legal Technological Sociocultural Demographic World and

Environment Environment Environment Environment Environment Ecological
Environment

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Activity 6: My Personal SWOT
Directions: Fill out the SWOT analysis template with your own/personal
strengths, weaknesses, opportunities, and threats. List down at least 5 of your
strengths, weaknesses, opportunities and threats. Write your answer on a separate
sheet.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

What I Have Learned

Cheers! You’re half done!

Activity 7: Fill Me Up
Directions: Fill in the correct word/s to complete the thought of each number.
Write your answer on a separate sheet of paper.
1. External environment consists of those factors that affect a business
enterprise from the __________. It includes shareholders, competitors,
customers, society, government laws and regulations, policies and
technology.
2. ____________ environment has various factors, such as value system, mission
and objectives, organization structure, corporate culture, quality of human
resources, labour unions, physical resources and technological capabilities.
3. _____________ are the parties likely to be affected by the activities of the
organization.
4. Customers patronize the organization’s ________________.
5. Suppliers ensure the organization’s needed ___________ at a reasonable price
required for producing their goods and rendering their services.

20
 6. The environment in which a business operates is a major consideration in
determining an organization’s design structure. Considerations, such as
uncertainty, procurement, and competition are linked with the ___________
environment.
7. Benchmarking is the process of measuring or ___________ one’s own
products, services and practices with those of the recognized industry
leaders in order to identify areas for improvement.
8. ______________ analysis is a framework that helps in analyzing the level of
completion within a certain industry. It is especially useful when starting a
new business or when entering a new industry sector.
9. In ____________culture people tend to do one thing at a time and emphasize
punctuality and sticking to set rules.
10. The ___________________ environment refers to the laws and good political
climate of different countries.

What I Can Do

Activity 8: Me and My Community

Directions: With the COVID-19 at large, list down the different factors in the
PESTLE analysis on how the City of Alaminos is coping since the start of lockdown
last March 2020.

P E S T L E

21
 Assessment

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. It is one of the features of organizational climate.

a. How the employees feel about working for the organization.
b. How organizations share values, beliefs, habits, norms, philosophies,
experiences, and behaviors.
c. What the company does best.
d. A key concept that guides managers and their actions.

2. It is strategic analytical framework consists of five individual forces that

shape an overall extent of competition in an industry.
a. SWOT Analysis
b. PESTLE Analysis
c. Benchmarking
d. Porter’s Analysis

3. It includes the customers’ changing values and preferences; customs could

also affect management practices in companies.
a. Politico-legal situations
b. Demographic situations
c. Sociocultural situations
d. Economic situations

4. Managers in the US are risk-takers. Filipinos are seguristas, who are afraid
of taking business risks in the market. The cultural dimension being
described is ___________.
a. Individualism-collectivism
b. Time orientation
c. Uncertainty avoidance
d. Power distance

5. It is a directly interactive force in an organization’s external environment.

a. technological forces
b. leadership
c. economic forces
d. customers

22
6. It refers to gender, age, educational level, income, number of family
members, geographic and origin, among others which may influence some
managerial decisions in the organizations.
a. World and ecological situations
b. Sociocultural situations
c. Politico-legal situations
d. Demographic situations

7. It is an environment that a firm can change or modify to a certain extent to

improve its efficiency.
a. Micro environment
b. Macro environment
c. Internal environment
d. External environment

8. Analysis is a framework that helps in examining/evaluating/assessing the

level of competition within a certain industry. It is especially useful when
starting a new business or when entering a new industry sector. According
to this framework, competitiveness does not only come from competitors.
Rather, the state of competition in an industry depends on five basic forces.
a. Benchmarking
b. PESTLE analysis
c. Porter’s analysis
d. SWOT analysis

9. This environment is consists of those factors that affect a business

enterprise from the outside. This environment includes shareholders,
competitors, customers, society, government laws and regulations, policies,
and technology
a. Internal environment
b. Micro environment
c. Macro environment
d. External environment

10. This is not an indirectly interactive force in an organization’s external

environment.
a. sociocultural forces
b. competitive forces
c. legal/political forces
d. technological forces

11. It is a framework or tool used to analyze and monitor the macro-

environmental factors that may have a profound impact on an organization’s
performance.
a. SWOT analysis
b. Porter’s analysis
c. PESTLE analysis
d. Benchmarking

23
 12. It is the ability of an individual to favorably receive and adjust to an
unfamiliar way of doing things.
a. Monochronic culture
b. Cultural intelligence
c. Polychronic culture
d. Understanding culture

13. They ensure the organization’s continuous flow of needed and reasonably
priced inputs or material required for producing their goods and rendering
their services.
a. Suppliers
b. Pressure Groups
c. Stakeholders
d. Customers

14. Filipinos and Japanese who are not risk-takers are long-term thinkers. On
the other hand, the Americans who are risk-takers prefer short-term
thinking. The cultural dimension being described is ___________.
a. Uncertainty avoidance
b. Masculinity-femininity
c. Individualism-collectivism
d. Time orientation

15. It is the ultimate source of many inputs, such as raw materials and energy,
which firms use in their production. It includes geographical and ecological
factors, such as minerals and oil reserves, water and forest resources and
weather and climatic conditions which are all highly significant for various
business activities.
a. Economic environment
b. Demographic environment
c. Natural environment
d. Ecological environment

Additional Activities

Oh wait, an add-on activity is needed for you. This will be the last activity to
see you through this module.

24
Activity 9: Bring Out the Poet In You

Directions: Write a short poem/poetry describing Philippine culture and how

Filipinos deal with different challenges we are facing.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Scoring Rubric:
Criteria Weight
Content 30%
Understanding/Application 25%
Original Thinking 25%
Structure 10%
Grammar 10%
Total 100%

25
 26
What's I Have
Learned
Activity 7 Additional
1. outside What's More Activities
2. internal
3. Stakeholders ACTIVITY 5 Activity 9
4. inputs Possible Answers: To be checked using the
5. continuous flow POLITICAL Scoring Rubric
- government policy, press
6. external
freedom, tax policy
7. comparing ECONOMIC
8. Porter’s Five Forces - growth rate, inflation, labor
9. monochronic SOCIAL
[Link]-legal - demography, education,
income distribution
Assessment
TECHNOLOGICAL
- technology transfer, 1. A
communication, emerging 2. D
technology 3. C
LEGAL
What I Know 4. C
- regional law, law
enforcement, court system 5. C
1. D ECOLOGICAL 6. D
2. C - energy availability, climate 7. C
change, resource 8. C
3. C
management
4. C 9. D
5. C 10. B
6. C ACTIVITY 6 11. C
7. B - Answers may depend on 12. B
8. B student’s understanding and 13. A
reflection
9. A 14. D
10. C 15. C
11. A
12. D
13. C
14. D What's New
15. C
What Can I Do
Activity 2
Answer may vary depend
1. FACT
on student’s own
2. BLUFF
understanding and
3. FACT
reflection
4. BLUFF
What's In 5. BLUFF
Activity 1
Activity 4
1. TRUE
2. FALSE √ - 2, 4, 6, 8, 10
3. TRUE X – 1, 3, 5, 7, 9
4. FALSE
5. FALSE
Activity 3
1. External Business
2. Internal Business
3. SWOT
4. Porter’s Five Forces
Answer Key
5. PESTLE
References
Printed Materials:

 Ababa, Addis. 2014. Course Module on Principles of Management. CCRDA-

AMBO University Partnership Post Graduate Diploma Program in
Development Management.

 Benowitz, Ellen A. 2001. CliffsQuick Review: Principles of Management.

Hungry Minds, Inc.

 Cabrera, Helena Ma. F., [Link]. 2016. Organization and Management. Vibal
Group, Inc.

 Lation, Clarita C. 1998. Fundamentals of Management. Student Workbook.

First Edition, Rex Bookstore.

 Organization and Management Teachers Manual (2016)

Websites:

 [Link]
d%20notes/BCA-
224%20Principles%20and%20Practice%20Of%[Link]

 [Link]
[Link]

 [Link]/kashanshah5815/organization-and-components-of-
organization?from_action=save

 [Link]/bsetm/chapter-1-introduction-to-management-and-
organizatins?from_action=save

 [Link]
functions/

 [Link]
management/exploring-the-five-dimensions-of-culture/

27
For inquiries or feedback, please write or call:

Department of Education - Bureau of Learning Resources (DepEd-BLR)

Ground Floor, Bonifacio Bldg., DepEd Complex

Meralco Avenue, Pasig City, Philippines 1600

Telefax: (632) 8634-1072; 8634-1054; 8631-4985

Email Address: [Link]@[Link] * [Link]@[Link]