Odiong, Roxas, Oriental Mindoro
Subject ENTREPRENEURSHIP
Grade Level- 12-STEM
Section/
Class/Strand
Teacher NAOMI GRACE G.
ORDONIO/CHRISTINE LYNN R.
PANGANIBAN
Module No. MODULE 2 (Lessons 6)
& Title
Duration 1 Week, 5 Performance task
Reference ENTREPRENEURSHIP (Edralin, 2019)
Materials Vibal Group Inc.
Lecture Written/Printed
Materials
Format
In your previous lesson, you learned about the 7P’s of Marketing Mix; Product, Place,
Price, Promotion, People, Packaging and Positioning in relation to business opportunity,
wherein marketing is about creating and accumulating customers. Marketing plans are
intended to capture a market portion and to setback competitors.
Brand name was also introduced, where it is a name, symbol, or other feature that
distinguishes a seller’s goods or services in the marketplace. Your brand is one of the greatest
assets because your brand is your customers’ over-all experience of your business.
Experts believe that a good brand can result in better loyalty for its customers, a better
corporate image and a more relevant identity.
An entrepreneurial venture may either be a sole proprietorship, a partnership, or a
corporation, engaged in merchandising, manufacturing, or service. Nevertheless, whatever
type and nature of business ventures is opened to exploit different business opportunities,
innovation or creativity defines the distinction between an entrepreneur and an ordinary
business person.
Thus, the concept of innovation or creativity must, in almost all instances, be introduced and
practiced. An entrepreneur finds way to introduce innovation from the production process to
the marketing stage, while an ordinary businessperson simply imitates business practices and
procedures.
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The concept of innovation or creativity can easily be practiced and highly noticeable in a
manufacturing operation since raw materials are transformed to finished goods through the
production process. Innovation can be introduced from the production phase up to packaging
and delivery.
The three important elements in the production system are; the input, the transformation of
production process and the output.
Input Production
Output
Process
Figure 1.1. The Three Important Elements in the Production System
The Input includes the following:
1. Manpower
2. Materials
3. Machine
4. Design
5. Instructions
The Production process, also referred to as the transformation or conversion process,
is the stage of production where the materials are transformed into the final product with the
aid of manpower and machine.
The output represents the final product from the production process and distributed to
the customers.
4 M’s of Production
The most serious issues in the whole production system are the inputs and the
transformation process. Their quality determines the quality of the output.
The factors involved in the input and the production process are usually referred to as the
Four M’s of production, namely Manpower, Method, Machine, and Materials.
Four M’s
Manpower
Method
OUTPUT
Machine
Materials
Figure 1.2. The Four M’s in the Production System
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Manpower
Manpower talks about human labor force involved in the manufacture of products. It is
measured as the most serious and main factor of production. The entrepreneur must
determine, attain and match the most competent and skilled employees with the jobs at the
most appropriate time period.
Educational qualifications and experience, status of employment, number of workers
required, skills and expertise required for the job are some of the manpower criteria that must
be highly considered by the entrepreneur.
Materials
It simply refers to the raw materials necessary in the production of a product. Materials
mainly form part of the finished product. Just in case the resources are below standard, the
finished product will unsatisfactory as well. The entrepreneur may consider cost, quality,
availability, credibility of suppliers and waste that the raw materials may produce.
Machine
Machine is about manufacturing equipment used in the production of goods or delivery of
services. In the process of selecting the type of equipment to purchase, the entrepreneur may
consider types of products to be produced, production system to be adopted, cost of the
equipment, capacity of the equipment, availability of spare parts in the local market,
efficiency of the equipment and the skills required in running the equipment.
Method
Method or production method is the process or way of transforming raw materials to
finished products. The resources undergo some stages before it is finalized and become set for
delivery to the target buyers. The selection of the method of production is dependent on
product to produce, mode of production, manufacturing equipment to use and required skills
to do the work.
MAN MACHINE METHOD
Skill Design
Technology Installation Schedule
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Organization
Improve
Resources Supplies Procedure
Process Communications
Equipment
Design Budget
Attribute
Quality Demands
MATERIAL OTHER
Figure 1.3. Illustration of Four M’s in the Production System
The product is the physical output of the whole production process. It should be valuable
and beneficial to the consumers and should satisfy their basic needs and wants. A product can
be heterogeneous or homogeneous. A heterogeneous product has dissimilar characteristics,
parts, and physical appearance. It can be easily identified from other products.
Entrepreneurial ventures that produce heterogeneous products include makers of furniture,
bags, and home decors.
On the other hand, a homogeneous product has a physical appearance, taste, or chemical
content that can hardly be distinguished from that of the other products. Businesses that
produce homogeneous products include makers of soft drinks, and medicines.
After knowing the production process and system, and how the product is being processed,
not it is important to know about product description, wherein product description promotes
and explains what a product is and why it’s worth buying. The purpose of a product
description is to provide customers with details around the features and benefits of the
product so they’re obliged to buy.
Know who your target market is, focus on the product benefits, tell the full story, use
natural language and tone, use power words that sell, and use good images. These are
guidelines for you to have a good product description; since some customers are very
particular with it since they consider the welfare of their family, if it is safe to use.
Prototype is created before the massive production of such product; an entrepreneur
must consider prototyping. One of the important early steps in the inventing process is
making a prototype. A prototype is a duplication of a product as it will be produced, which
may contain such details as color, graphics, packaging and directions. Benefits are the reasons
why customers will decide to buy the products such as affordability, efficiency or ease of use.
The features of the product or service merely provide a descriptive fact about the product or
service.
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Most importantly, it is better to test your product prototype to meet customers’ needs and
expectations; and for your product to be known and saleable. Pretesting of the product or
service is similar to a sample of the product or service given to the consumer free of cost in
order that he/she may try the product before committing to a purchase.
The entrepreneur’s main concern is the satisfaction of a customer, for they are the life blood
of the business. Without them, all the efforts, will be wasted as well as the chance to venture
into a new business.
In a manufacturing venture, the supplier plays a vital role. They are your business
partners, without them your business will not live. You need them as much as you need your
customers to be satisfied. But as an entrepreneur you have to choose a potential supplier who
has loyalty and values your partnership: a supplier who would lead you to the fulfillment of
your business objectives, mission and vision. This entity is part of a supply chain of a
business, which may offer the main part of the value contained within its products. Certain
suppliers may even involve in drop shipping, where they ship goods directly to the customers
of the buyer.
How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
Supply chain management systems automate the flow of information among members
of the supply chain so that they can use it to make better decisions about when and how much
to purchase, produce, or ship.
Value chain is a method or activities by which a company adds value to an item, with
production, marketing, and the provision of after-sales service. The main goal and benefit of a
value chain, and therefore value chain analysis, is to make or support a competitive benefit.
A supply chain is a structure of organizations, people, activities, data, and resources
involved in moving a product or service from supplier to customer.
The main objective of supply chain management includes management of a varied
range of components and procedures, for instance, storing of raw materials, handling the
inventory, warehousing, and movement of finished product from the point of processing to
the point of consumption.
When value chain management is implemented effectively, the flow of products and
materials is improved through the accurate forecasting of sales and demand as well as
improved inventory management. Delays are also minimized and products are visible and
traceable throughout the supply chain.
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Supply chain management decreases purchasing cost. Retailors depend on supply
chains to quickly distribute costly products to avoid sitting on expensive inventories. Any
delay in production can cost a company tens of thousands of pesos.
This factor makes supply chain management ever more important.
Value chains help increase a business's efficiency so the business can deliver the most
value for the least possible cost. The end goal of a value chain is to create a competitive
advantage for a company by increasing productivity while keeping costs reasonable.
Business Model
Business model describes the factors of how an organization creates, delivers, and
captures value in economic, social, cultural or other contexts. The development of business
model construction and variation is also called business model innovation and forms part of a
business plan.
It is a company's plan on how it will make revenues and make a profit. It describes what
products or services the business plans to manufacture and market, and how it plans to do so,
as well as what expenses it will incur.
There are important phases in developing your business model, namely: identifying the
specific audience; establishing business process; recording business resources; developing
strong value proposition; determining key business partners; and creating demand for today’s
generation strategy and being open for innovations.
After developing a business model, we will proceed in developing a business plan. To be
able to successfully complete this module, you need to prepare a business plan and operate
your plan and finally keep records of your business transactions.
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Business Plan
What is a Business Plan For?
Entrepreneurs who plan to enter any business endeavor must have a business plan on hand
to guide them throughout the process. Different business plans are prepared for different
purposes. There are business plans written prior to setting up an enterprise, which are similar
to a prefeasibility study and a feasibility study. Many new enterprises need to convince
prospective business investors about the soundness and potential of their business.
There are business plans that are written during the first few years of the enterprise in order
to guide the entrepreneur on which strategies would be most beneficial for the enterprise to
take. And there are business plans that are focused on bringing the enterprise to a higher level
of growth, a period where the enterprise has already reached its peak and would want to enter
into another endeavor by creating and re-establishing itself.
Clearly, a business plan serves many masters. First, it serves the entrepreneur who must set a
navigational course. Second, it serves investors and cautious financiers. And third, it serves
the managers and staff of the organization so that they will know the strategies and programs
of the enterprise.
Read the different scenarios below to fully understand the importance of having a
business plan.
Scenario 1:
“Jessie is the eldest of the five children of Mr. & Mrs. Natividad. The family is having
difficulty to support their everyday needs. Because of this, Jessie tried selling banana cue and
with his dream to make his business grow, he put up many stalls in the community without
considering the advises of his friends to make a business plan before implementing his
decision. After a few months his stalls shutdown.”
Scenario 2:
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make
up on her friends. Until such time that her friends introduced her to their friends too for
haircut and make up when there are occasions. A few months after, Mercy was told by her
friends to put up a beauty parlor in their place. So she asks her mother who is also a
businesswoman to teach her how to make a business plan and eventually ended with a
successful business.”
Scenario 3:
“Monna is a diligent student: because of her knowledge gained from school about
business plan she was able to enhance her skills in business and finally found herself into her
laundry shop business.”
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Each scenario taught us that a business is not just about how much income or profit
you can get, but it’s about the life of your business. And in having a business, you also have
to consider Technological forces, Social forces, Political forces, Cultural forces, Economic
forces and Legal forces.
The following are the components found in a Business Plan.
• Introduction - this part discusses what is the business plan all about.
• Executive Summary - is part of the business plan which is the first to be presented but
the last to be made.
• Management Section - shows how you will manage your business and the people you
need to help you in your operations.
• Marketing Section - shows the design of your product/service; pricing, where you
will sell and how you will introduce your product/service to your market.
• Financial Section - shows the money needed for the business, how much you will
take in and how much you will pay out.
• Production Section - shows the area, equipment and materials needed for the
business.
• Competitive Analysis - is the strategy where you identify major competitors and
research their products, sales and marketing strategies.
• Market – refers to the persons who will buy the product or services
• Organizational chart - is the diagram showing graphically the relation of one official
to another, or others of a company.
PERFORMANCE TASKS:
I. Directions: Draw your (1) dream business establishment to build someday
on a short coupon bond.
Rubrics:
Originality: 6
Creativity: 6
Cleanliness: 3
TOTAL: 15 pts.
5 samples:
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II. Directions: Draw your potential business product.
***DEADLINE OF ALL ACTIVITIES/PERFORMANCE TASKS IS JANUARY 22,
2025***
II. Directions: Draw your potential business product on a short coupon bond.
Rubrics:
Originality: 4
Creativity: 4
Cleanliness: 2
TOTAL: 10 pts.
Samples:
III. Create a simple printed infographic (long coupon) about your menu (if food
business, at least 5 foods/drinks) or brochure for your product.
Rubrics:
Originality: 6
Creativity: 6
Editing skills: 5
Resolution: 3
TOTAL: 20 pts.
Samples:
9
IV. Create a simple printed poster for your product.
Rubrics:
Originality: 4
Creativity: 4
Cleanliness: 2
TOTAL: 10 pts.
Samples:
10
***DEADLINE IS JANUARY 29, 2025***
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