Module 1

Personal Entrepreneurial Competencies (PECs)

Content Standards Performance Standards

The learner demonstrates The learner independently creates a

understanding of one’s PECs in plan of action that strengthens
Computer Hardware Servicing. and/or further develops his/her
PECs in Computer Hardware
Servicing.

Quarter I Time Allotment: 4 hours

In this module, you will learn more about entrepreneurship and the
entrepreneurial competencies related to Computer Hardware Servicing. You will have a
first-hand experience in educational activities leading to assessment of your personal
entrepreneurial competencies (PECs) and the entrepreneurial competencies of a
successful computer technician within your province. You will also have several
activities that will align your competencies with those of successful practitioners.
Moreover, this module will encourage you to think about entrepreneurship and its role in
the business community as well as in the economic and social development of an
individual.

To start with this module, let us first understand entrepreneurs and

entrepreneurship.

Entrepreneurs are those with the skills and capabilities to see and evaluate
business opportunities. They are individuals who can strategically identify products or
services needed by the community, and have the capacity to deliver them at the right
time and at the right place.

Entrepreneurs are agents of economic change; they organize, manage, and

assume risks of a business. Some of the good qualities of entrepreneurs are:
opportunity-seeker, risk-taker, goal-setter, excellent planner, confident problem-solver,
hardworking, persistent and committed.

Entrepreneurship, on the other hand, is not just a simple business activity but a
strategic process of innovation and new product creation. Basically, entrepreneurship is
both an art and science of converting business ideas into marketable products or
services to improve the quality of living.

Now that you have background knowledge about entrepreneurs and

entrepreneurship, you can now walk through in assessing your PECs. Always
remember that successful entrepreneurs continuously develop and improve their PECs.

To begin, let us find out the competencies you will have gained upon completion
of this module.

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 At the end of this module, you are expected to:

 identify areas for improvement, development, and growth,

 align your PECs according to your business or career choice, and
 create a plan of action that ensures success in your business or career choice.

Now try to take the first challenge in this module, the pre assessment.

Pre-assessment

As part of your initial activity, try to assess your prior knowledge and experience
related to personal entrepreneurial competencies. Answer Task 1.

Task 1: Matching Type

Directions: Match the entrepreneurial competencies in column A with their meaning in

column B. Write the letter of the correct answer on the space provided before each
number.

A B

____1. Creative A. makes wise decisions towards the set

objectives
____2. Profit-oriented B. strategic thinking and setting of goals

____3. Disciplined C. trusting in one’s ability

____4. Sound decision maker D. adoptable to change

____5. Possess people skills E. innovates to have an edge over other

competitors

____6. Excellent Planner F. solid dedication

____7. Confident G. skillful in record keeping

____8. Hardworking H. always sticks to the plan

____9. Ability to accept change I. work diligently

____10. Committed J. effective and efficient communication

skills and relates well to people

K. always looking for an opportunity to

have/earn income.

Task 2: Guide Questions

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Directions: The following are guide questions which covers the entire module. Write
your answers on your assignment notebook. Discuss / share these to the class.

A. Explain why entrepreneurial activities are important to social development and

economy progress.
B. What entrepreneurial activities related to Computer Hardware Servicing do you
know and are capable of doing?
C. If you were given the opportunity to own a business that relates to Computer
Hardware Servicing, do you think you will be confident to manage it? Explain
your answer.
D. What do you think are the most important competencies one must possess in
order to be successful in running a chosen business?
E. Name successful entrepreneurs from your province whose businesses are
related to Computer Hardware Servicing. Make sure you will be able to share
with the class the PECs that made them successful.

After all the guide questions are answered, share these with your classmates.
You may also compare your insigths, personal knowledge, and relevant experiences
on the topic to make the sharing more exciting and engaging.

Learning Goals and Targets

After understanding the objectives of this module, having gone through pre-
assessment, and answering the guide questions, you will be asked to set your own
personal goals and targets. These goals and targets will urge you to further achieve the
ultimate objective of this module. In the end, these ultimate goals will motivate you to
learn more about PECs.

Goals and Learning

Ultimate Goal
Targets Activities

Figure 1: Strategic process to achieve the objectives of this module

Reading Resources and Instructional Activities

After setting your own personal goals and targets in achieving the objectives of
this module, check your inherent knowledge of PECs. Answer the following guide
questions with the help of your classmates.

Task 3:

Directions: Answer the following guide questions on a separate sheet of paper.

Share your answers with the class.

1. Explain the importance of assessing one’s PECs before engaging in a particular

entrepreneurial activity.

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 _________________________________________________________________
_________________________________________________________________
________________________________________.

2. Are there other strategies or approaches where you can assess your PECs?
Explain how these strategies will become more useful in selecting a viable
business venture.
_________________________________________________________________
_________________________________________________________________
________________________________________.

3. What are the desirable personal characteristics, attributes, lifestyles, skills, and
traits of a prospective entrepreneur? Why are these important?
_________________________________________________________________
_________________________________________________________________
________________________________________.

4. Why is there a need to assess one’s PECs in terms of characteristics, attributes,

lifestyles, skills, and traits before starting a particular business?
_________________________________________________________________
_________________________________________________________________
________________________________________.

5. What is the significance of evaluating PECs of a successful entrepreneur? What

helpful insights can you draw from this activity?
________________________________________________________________
________________________________________________________________
________________________________________.

How was your experience in answering the guide questions with your
classmates? Were you able to benefit from them? What were the insights you have
realized?

This time you’re going to study the different topics that will enrich your knowledge
of PECs. Read all the important details about the succeeding topic carefully.

Assessment of Personal Entrepreneurial Competencies (PECs) and Skills vis-à-

vis a Practicing Entrepreneur in a Province

Entrepreneurial competencies refer to the important characteristics that should

be possessed by an individual in order to perform entrepreneurial functions effectively.
In this module, you will learn some of the most important characteristics, attributes,

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lifestyle, skills and traits of a successful entrepreneur or an employee to be successful
in a chosen career.

Below are few important characteristics / traits / attributes of a good

entrepreneur:

 Hardworking:  One of the important characteristics of a good entrepreneur

is hardworking. This means working diligently and being consistent about it.
Hardworking people keep improving their performance to produce good
products and/or provide good services.

 Confident:  Entrepreneurs have self-reliance in one’s ability and judgment.

They exhibit self-confidence to cope with the risks of operating their own
business.

 Disciplined: Successful entrepreneurs always stick to the plan and fight the

temptation to do what is unimportant.

 Committed: Good entrepreneurs assume full responsibility over their

business. They give full commitment and solid dedication to make the
business successful.

 Ability to accept change: Nothing is permanent but change. Change

occurs frequently. When you own a business, you should cope with and
thrive on changes. Capitalize on positive changes to make your business
grow.

 Creative: An entrepreneur should be creative and innovative to stay in the

business and in order to have an edge over the other competitors.

 Has the initiative: An entrepreneur takes the initiative. You must put
yourself in a position where you are responsible for the failure or success of
your business.

 Profit-oriented: An entrepreneur enters the world of business to generate

profit or additional income. The business shall become your bread and
butter. Therefore, you must see to it that the business can generate income.

Listed below are the important skills of a successful entrepreneur:

 Excellent planner: Planning involves strategic thinking and goal setting to

achieve objectives by carefully maximizing all the available resources. A
good entrepreneur develops and follows the steps in the plans diligently to
realize goals. A good entrepreneur knows that planning is an effective skill
only when combined with action.

 Possesses people skills: This is a very important skill needed to be

successful in any kind of business. People skills refer to effective and
efficient communication and establishing good relationship to the people
working in and out of your business. In day-to-day business transactions,
you need to deal with people. A well-developed interpersonal skill can make
a huge difference between success and failure of the business.

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  Sound decision maker: Successful entrepreneurs have the ability to think
quickly and to make wise decisions towards a pre-determined set
of objectives. No one can deny that the ability to make wise decisions is an
important skill that an entrepreneur should possess. Sound decisions should
be based on given facts and information and lead towards the pre-
determined objectives.

To firm up what you have learned and have a better

appreciation of the different entrepreneurial competencies, read the PECs checklist

Task 4: PECs Checklist

Directions: Using the PECs checklist, assess yourself by putting a check ( ) mark in
either strengths or development areas column. Interpret the results by counting the total
number of check marks in each of the columns. After accomplishing the checklist, form
a group and share your insights on the result of the personal assessment.

Table 1: PECs Checklist

Personal Assessment in terms

of:
Personal Entrepreneurial Competencies
(PECs) of an Entrepreneur Strengths Development
Areas

Hardworking
- Works diligently
Confident
- Self-reliance in one’s ability
Disciplined
- Always stick to the plan
Committed
- Solid dedication
Ability to accept changes
- Adaptable
Creative
- Innovative to have edge over other
competitors
Profit-oriented
- Always looking for an opportunity to
have/earn income

Excellent planner
- Strategic thinking and setting of
goals

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 Possess people skill
- Effective and efficient communication
skills and relates well to people

Sound decision maker

- Makes wise decisions towards the
set objectives

TOTAL

Interpretation or Insight:

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________________.

How was your experience in

discovering the strengths and the
areas you need to develop? Did you gain a valuable experience in exchanging insights
with your classmates? To learn more and deepen your understanding of PECs, do task
5 below.

Task 5: Research for a Person

Directions: In our world today, search for a successful computer technician or

entrepreneur (negosyante) via internet whose type of business is related with computer
hardware servicing or anything related. Read carefully their vitae and identify the
steps or attributes that helped them become successful. Analyze and reflect on the
ideas they . Write your answer on a separate sheet of paper.

Template Bio of an Entrepreneur

Link:https://www.biography.com/businessfigure/billgates#:~:text=Entrepreneur%20and
%20businessman%20Bill%20Gates,richest%20men%20in%20the%20world.
Name of Proprietor/Practitioner: ____________________________________
Age: _______________ Number of Years in Business: _________________
Business Name: ________________________________________________
Business Address: ______________________________________________

1. What preparations did he/she make before he/she engaged in this type of
business or job?
________________________________________________________________
____________________________________________.

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 2. What special skills and characteristics do he/she have that are related with
his/her business or job?
________________________________________________________________
____________________________________________.

3. How did he/she solve business-related problems during the early years of his/her
business operation?
________________________________________________________________
________________________________________________________________
_______________________________________.

4. Did he/she follow the tips from a successful businessman or practitioner before
he/she engaged in business?
________________________________________________________________
________________________________________________________________
_______________________________________.

5. What best business practices can he/she share with aspiring entrepreneurs?
________________________________________________________________
________________________________________________________________
_______________________________________.

6. What do you think are the salient characteristics, attributes, lifestyle, skills and
traits that made him/her successful in his/her business or job?
________________________________________________________________
________________________________________________________________
______________________________________.

Directions: Copy the tables below in your notebook or in a separate sheet of paper.
Gather the needed information from the interview to supply answer/s to row 1 in the
table below, after which, fill out the second row with your PECs.

Personal
Entrepreneurial Characteristics Attributes Lifestyles Skills Traits
Competencies

Successful
Entrepreneur in the
province

My PECs

Using the information on the table above, analyze and reflect on the similarities and
differences in your answers. Put your reflection on the table you copied in your
notebook or in a separate sheet of paper. Write your conclusion on the space
provided.

Personal
Entrepreneurial Similarities Differences
Competencies
Characteristics

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 Attributes

Lifestyles

Skills

Traits

Conclusion:

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
_______________________.

After performing the activities on the

importance of PECs, let’s determine how much you have learned. Perform task 6 to
determine how well you have understood the lesson.

Task 6: Preparation of a Plan of Action

Directions: Use in a separate sheet of paper / in your notebook the information

generated from task 5 (Interview) and prepare an action plan that indicates alignment of
your PECs to the PECs of a successful entrepreneur in computer hardware servicing in
your province.

Time Expected
Objective Area Activities Strategies
Frame Outcome

To align my Characteristics
PECs with
the PECs of
a successful
entrepreneu
Skills
r in
Computer
Hardware
Servicing
Attribute

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 Traits

Task 7: Essential Questions

Directions: Read and study the following questions below. You may use a separate
sheet of paper or your notebook to write your answers.

1. Why is there a need to compare and align one’s PECs with the PECs of a
successful entrepreneur?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________.

2. How does your action plan help sustain your strong PECs and/or address your
development areas?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________.

3. What plan of action will you utilize to address your development areas?

Module 1
ENVIRONMENT AND MARKET (EM)

Content Standards Performance Standards

The learner demonstrates The learner independently creates a

understanding of environment and business vicinity map reflective of
market in Computer Hardware potential market in Computer
Servicing in one’s province. Hardware Servicing in a province.

Quarter I Time Allotment: 4 hours

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 Aspiring entrepreneur need to explore the economic, cultural, and social
conditions prevailing in an area. Needs and wants of the people in a certain area that
are not met may be considered business opportunities. Identifying the needs of the
community, its resources, available raw materials, skills, and appropriate technology
can help a new entrepreneur seize business opportunities.

To be successful in any kind of business venture, potential entrepreneurs should

look closely at the environment and market. They should always be watchful of existing
opportunities and constraints, and to take calculated risks. The opportunities in the
business environment are factors that provide possibilities for a business to expand and
make more profit. Constraints, on the other hand, are factors that limit business growth,
hence reduce the chance of generating profit. One of the best ways to evaluate
opportunities and constraints is to conduct a Strengths, Weaknesses, Opportunities and
Threats (SWOT) Analysis.

SWOT Analysis is a managerial tool used to assess the environment. It is used

to gather important information which is then used in strategic planning. Strengths and
weaknesses are internal in an organization. They relate to resources owned by an
organization that you have control over and also the extent of its marketing.

Opportunities and threats exist in the external environment. Opportunities relate

to the market, new technologies, and the external factors such as government policies,
climate, and trends. Threats replace what the competitors are doing. It also includes
legal and other constraints.

Now that you have read some important considerations to explore to be

successful in any business, you are now ready to explore more about the environment
and market.

To begin with, let’s find out the competencies that you will master as you finish
this module.

Objectives

At the end of this module, you are expected to:

 identify what is of “value” to the customer,

 identify the customer to sell to,
 explain what makes a product unique and competitive,
 apply creativity and innovative techniques to develop marketable products,
and
 employ a unique selling proposition (USP) to a product and/or service.

Now that you have an idea about the things you will learn, take the first challenge
in this module – the pre-assessment.

Pre-assessmentObjectives

Task 1: Multiple Choice

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DIRECTIONS: Choose the letter of the best answer. Write your answer on a separate
sheet of paper.

1. It is generated by examining the goods and services sold in the community.

A. business creation C. business concept
B. business pricing D. business idea
2. It is a process of making new products which will be sold to the customers.

A. product analysis C. product

development
B. product conceptualization D. product
implementation
3. These are luxuries, advantages and desires that every individual considers
beyond necessary.
A. wants C. requirements
B. desires D. needs
4. It is a factor or consideration presented by a seller as the reason that a product
or service is different from and better than that of the competition.
A. unique selling plan C. unique pricing
policy
B. unique selling proposition D. finding value-added
5. A stage in which the needs of the target market are identified, reviewed, and
evaluated.
A. concept development C. project development
B. economic analysis D. refine specification
6. It is the introduction of new ideas to make the product and services more
attractive and saleable to the target customers.
A. new idea C. product development
B. creativity D. innovation
7. It is a managerial tool used to assess the environment and to gather important
information that can be used for strategic planning.
A. scanning C. WOTS Analysis
B. SWOT Analysis D. survey analysis

8. It is creating names, symbol, or designs that identifies and differentiates a

product from the other products.
A. product naming C. branding
B. unique selling proposition D. tagline
9. It is a meaningful and unforgettable statement that captures the essence of the
brand.
A. product naming C. branding
B. unique selling proposition D. tagline
10. These are things that people cannot live without.
A. wants C. requirements
B. desires D. needs

Task 2: Guide Questions:

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Directions: Read and study the guide questions below. Use a separate sheet of paper
to write your answer.

1. How does one determine the product or services to be produced

and/or to be provided to the target customers?
________________________________________________________________
________________________________________________________________
________________________________________

2. How does one select an entrepreneurial activity?

________________________________________________________________
________________________________________________________________
________________________________________

3. When can one say that a certain product has “value?”

________________________________________________________________
________________________________________________________________
________________________________________

4. Does applying creativity to your product or services important? Why?

________________________________________________________________
________________________________________________________________
________________________________________

5. How can one effectively respond to the needs of the target customer?
________________________________________________________________
________________________________________________________________
________________________________________

6. From the viewpoint of business owner, discuss the importance of scanning the
environment and market in generating business ideas.
________________________________________________________________
________________________________________________________________
________________________________________

7. Using self-assessment, explain the level of your confidence in formulating a

business idea.
________________________________________________________________
________________________________________________________________
________________________________________

After all the guide questions are answered and skills have been mastered, share
insights/ideas with your classmates. Discuss your insights, personal knowledge, and
relevant experiences on the topic to make it more exciting and engaging.

Learning Goals and Target

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 After reading and understanding the objectives of this module and having gone
through the pre-assessment and guide questions, you will be asked to set your own
personal goals. These goals will urge you to further achieve the ultimate objective of
this module. In the end, these goals will motivate you to learn more about environment
and market.

Goals and Learning

Ultimate Goal
Targets Activities

Figure 2: Strategic process to reach the objectives of this module

After setting your

own personal goals and targets in achieving the objectives of this module, you will have
the opportunity to read and learn more about environment and market. You will also be
given a chance to do practical exercises and activities to deepen your understanding of

Product Development

When we talk of product development, we are referring to a process of making a

new product to be sold by a business or enterprise to its customers. Product
development may involve modification of an existing product or its presentation, or
formulation of an entirely new product that satisfies a newly-defined customer’s needs,
wants and/or a market place.

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 The term development in this module refers collectively to the entire process of
identifying a market opportunity, creating a product to appeal to the identified market,
and testing, modifying, and refining the product until it becomes ready for production.

There are basic, yet vital questions that you can ask yourself about product
development. When you find acceptable answers to them, you may now say that you
are ready to develop a product and/or render services.
These questions include the following:
1. For whom are the product/services aimed at?
2. What benefit will the customers expect from product/service?
3. How will the product/service differ from the existing brand? From its
competitor?
In addition, needs and wants of the people within an area should also be taken
into big consideration. Everyone has his/her own needs and wants. However, each
person has different concepts of needs and wants. Needs in business are the important
things that an individual cannot live without in a society. These include:
1. basic commodities for consumption,
2. clothing and other personal belongings,
3. shelter, sanitation and health, and
4. education.

Basic needs are essential to an individual to live with dignity and pride in a
community. These needs can obviously help you generate business ideas and
subsequently to product development.
Wants are desires, luxury and extravagance that signify wealth and expensive
way of living. Wants or desires are considered above all the basic necessities of life.
Some examples of wants or desires are: fashion accessories, expensive shoes and
clothes, travels, eating in an expensive restaurant, watching movies, concerts, having
luxurious cars, wearing expensive jewelry and perfume, living in impressive homes,
among others.
Needs and wants of people are the basic indicators of the kind of business that
you may engage in because it can serve as the measure of your success. Some other
points that might be considered in business undertakings are the kind of people, their
needs, wants, lifestyle, culture and tradition, and their social orientation.
To summarize, product development entirely depends on the needs and wants of
the customers. Another important issue to deal with is the key concepts of developing a
product. The succeeding topic shall enlighten you about the procedure in coming up
with a product.

Concepts of Developing a Product

Concept development is a critical phase in the development of a product. In this
stage, the needs of the target market are identified, and competitive products are
reviewed before the product specifications are defined. The product concept is selected
along with an economic analysis to come up with an outline of how a product is being
developed. Figure 3 shows the stages of concept development of a product.

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 Identify
Identify Establish
Establish Generate
Generate Select
Select aa Refine
Refine
Customer
Customer Target
Target Product
Product Product
Product Specifications
Specifications
Needs
Needs Specifications
Specifications Concepts
Concepts Concept
Concept

Plan
Plan
Remaining
Remaining
Analyze
Analyze Development
Development
Perform
Perform
Competitive
Competitive Project
Project
Economic
Economic
Products
Products Analysis
Analysis

Concept
Development

Figure 3: Stages of Concept Development

The process of product development follows the following stages:

1. Identify customer needs: Using survey forms, interviews, researches, focus

group discussions, and observations, an entrepreneur can easily identify
customers’ needs and wants. In this stage, the information that can be possibly
gathered are product specifications (performance, taste, size, color, shape, life
span of the product, etc.). This stage is very important because it would determine
the product to be produced or provided.
2. Establish target specifications: Based on customers' needs and reviews of
competitive products, you can now establish target specifications of the
prospective new product and/or services. A target specification is essentially a
wish-list.

3. Analyze competitive products: It is imperative to analyze existing competitive

products to provide important information in establishing product or service
specifications. Other products may exhibit successful design attributes that should
be emulated or improved upon in the new product or service.

4. Generate product concepts: After having gone through with the previous
processes, you may now develop a number of product concepts to illustrate the
types of products or services that are technically feasible and will best meet the
requirements of the target specifications.

5. Select a product concept: Through the process of evaluation between attributes,

a final concept is selected. After the final selection, additional market research can
be applied to obtain feedback from certain key customers.

6. Refine product specifications: In this stage, product or services specifications

are refined on the basis of input from the foregoing activities. Final specifications
are the result of extensive study, expected service life, projected selling price
among others are being considered in this stage.
7. Perform economic analysis: Throughout the process of product development, it
is very important to always review and estimate the economic implications
regarding development expenses, manufacturing costs, and selling price of the
product or services to be offered or provided.

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 8. Plan the remaining development project: In this final stage of concept
development, you can prepare a detailed development plan which includes list of
activities, necessary resources and expenses, and development schedule with
milestones for tracking progress.

Finding Value

People buy for a reason. There should be something in your product or service
that would give consumers a good reason to go back and buy more. There must be
something that will make you the best option for target customers; otherwise, they have
no reason to buy what you are selling. This implies further, that you offer something to
your customers that will make them value your product or service.

The value you incorporate in your product is called value proposition. Value
proposition is a believable collection of the most persuasive reasons why people should
notice you and take the action you’re asking for. It is what gets people moving, what
makes people spend for your product or service.

Innovation
Innovation is the introduction of something new in your product or service. This
may be a new idea, a new method, or a new device. If you want to increase your sales
and profit, you must innovate. Some of the possible innovations for your products are
change of packaging, improvement of taste, color, size, shape, and perhaps price.
Some of the possible innovations in providing services are application of new and
improved methods, additional featured services, and possibly freebies.

Unique Selling Proposition (USP)

Unique Selling Proposition is the factor or consideration presented by a seller as

the reason that one product or service is different from and better than that of the
competition. Before you can begin to sell your product or service to your target
customers, you have to sell yourself in it. This is especially important when your product
or service is similar to your competitors.
USP requires careful analysis of other businesses' ads and marketing messages.
If you analyze what they say or what they sell, not just their product or service
characteristics, you can learn a great deal about how companies distinguish themselves
from competitors.

Here's how to discover your USP and how to use it to increase your sales and profit:

 Use empathy: Put yourself in the shoes of your customers.  Always focus on the
needs of the target customers and forget falling in love with your own product or
service. Always remember, you are making/providing this product not
for yourself but for the target customers to eventually increase sales and earn
profit. Essential question such as what could make them come back and ignore
competition, should be asked to oneself. Most possible answers may be focused
on quality, availability, convenience, cleanliness, and reliability of the product or
service.

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  Identify customer’s desires. It is very important for you to understand and find
out what drives and motivates your customers to buy your product or service.
Make some effort to find out, analyze and utilize the information that motivates
the customers in their decision to purchase the product or service.

 Discover customer’s genuine reasons for buying the product. Information is

very important in decision making. A competitive entrepreneur always improve
their products or services to provide satisfaction and of course retention of
customers. As your business grows, you should always consider the process of
asking your customers important information and questions that you can use to
improve your product or service.

To enhance your understanding of the topic previously presented, you will be

tasked to form a group and arrange an interview with a successful entrepreneur or
practitioner. You have to document this interview and present this to the whole class for
reflection and appreciation.

Task 3: Interview
Directions: Select a successful entrepreneur or practitioner. Conduct an interview
using the set of questions below. Document the interview and present it to the class.
Use a separate sheet of paper.

1. How did you identify your customers?

________________________________________________________________
________________________________________________________________
________________________________________
2. What were your considerations in selecting your customers?
________________________________________________________________
________________________________________________________________
________________________________________

3. Explain how your product or service became unique to other products.

________________________________________________________________
________________________________________________________________
________________________________________

4. Did you consult somebody before you engaged in this business? Cite /
give sample insights that you gained from the consultation.
________________________________________________________________
________________________________________________________________
________________________________________

5. What were your preparations before you started the actual business?
________________________________________________________________
________________________________________________________________
________________________________________

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 6. What creative and innovative techniques did you adapt in the development of
your product or service? What was the effect of the innovative techniques to the
sales and profits of your business?
________________________________________________________________
________________________________________________________________
________________________________________

7. What strategy did you consider to create a unique selling proposition to your
product or service?
________________________________________________________________
________________________________________________________________
________________________________________

Task 4: Browsing the Internet

Directions: To deepen your understanding of the lesson, perform the following tasks:

1. Browse the internet and view the topics related to:

a. customers’ needs and wants
b. techniques in identifying customers’ needs and wants
c. creativity or innovations in products and services
d. unique selling proposition
e. product development

2. Prepare a short narrative report about these topics and discuss it to the class.
You can highlight the aspect that intensifies your knowledge of product
development.

Task 5: Product Conceptualization

Directions: In a separate sheet of paper or in your notebook. Develop your own

concept of your product or service by using the figures on this page. Use bullets in
every stage of product conceptualization in listing important key ideas.

1. Identify
Customers Need
7. Prepare a 2. Target
-
Development Plan Specifications
-
- -

- -

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6. Refine Product 3. Analyze a

Specification Competitive
19 Product
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 5. Select A product 4. Generate Product
Concept Concept

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Generating Ideas for Business

The process of developing and generating a business idea is not a simple

process. Some people come up with a bunch of business ideas that are not really
feasible. There are two problems that arise; first is the excessive generation of
ideas that can forever remain as a dreaming stage and the second is when they don’t
have ideas and don’t want to become entrepreneurs.

The most optimal way is to have a systematic approach in generating and

selecting a business idea that can be transformed into a real business. Here are some
basic yet very important considerations that can be used to generate possible ideas for
business:

1. Examine existing goods and services. Are you satisfied with the product? What
do other people who use the product say about it? How can it be improved? There
are many ways of improving a product from the way it is made to the way it is
packed and sold. You can also improve the materials used in crafting the product.
In addition, you can introduce new ways of using the product, making it more useful
and adaptable to the customers’ many needs. When you are improving the product
or enhancing it, you are doing an innovation. You can also do an invention by
introducing an entirely new product to replace the old one.

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 Business ideas may also be generated by examining what goods and services are
sold outside the community. Very often, these products are sold in a form that can
still be enhanced or improved.

2. Examine the present and future needs. Look and listen to what the customers,
institutions, and communities are missing in terms of goods and services.
Sometimes, these needs are already obvious and identified right away. Other
needs are not that obvious because they can only be identified later on, in the event
of certain development in the community. For example, a province will have its
electrification facility in the next six months. Only by that time will the entrepreneur
could think of electrically-powered or generated business such as photo copying,
computer service, digital printing, etc.

3. Examine how the needs are being satisfied. Needs for the products and services
are referred to as market demand. To satisfy these needs is to supply the products
and services that meet the demands of the market. The term market refers to
whoever will use or buy the products or services, and these may be people or
institutions such as other businesses, establishments, organizations, or government
agencies.

There is a very good business opportunity when there is absolutely no supply to a

pressing market demand.

Businesses or industries in the locality also have needs for goods and services.
Their needs for raw materials, maintenance, and other services such as selling and
distribution are good sources of ideas for business.

4. Examine the available resources. Observe what materials or skills are available in
abundance in your area. A business can be started out of available raw materials by
selling them in raw form and by processing and manufacturing them into finished
products. For example, in a copra-producing town, there will be many coconut
husks and shells available as “waste” products. These can be collected and made
into coco rags or doormats and charcoal bricks and sold profitably outside the
community.

A group of people in your neighborhood may have some special skills that can be
harnessed for business. For example, women in the Mountain Province possess
loom weaving skills that have been passed on from one generation to another.
Some communities set up weaving businesses to produce blankets, decorative, and
various souvenir items for sale to tourists and lowlanders.

Business ideas can come from your own skills. The work and experience you may
have in agricultural arts, industrial arts, home economics, or ICT classes will provide
you with business opportunities to acquire the needed skills which will earn you extra
income should you decide to engage in income-generating activities. With your
skills, you may also tinker around with various things in your spare time. Many
products are invented this way.

5. Read magazines, news articles, and other publications on new products and
techniques or advances in technology. You can pick up new business ideas from
magazines such as Newsweek, Reader’s Digest, Business Magazines, “Go
Negosyo”, Know About Business (KAB) materials, and Small-Industry Journal. The

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 Internet also serves as a library where you may browse and surf on possible
businesses. It will also guide you on how to put the right product in the right place,
at the right price, and at the right time.

Key Concepts of Selecting a Business Idea

Once you have identified business opportunities, you will eventually see that
there are many possibilities available for you. It is very unlikely that you will have
enough resources to pursue all of them at once.

You have to select the most promising one among hundreds of ideas. It will be
good to do this in stages. In the first stage, you screen your ideas to narrow them down
to about few choices. In the next stage, trim down the choices to two options. In the
final stage, choose between the two and decide which business idea is worth pursuing.

In screening your ideas, examine each one in terms of the following guide
questions:

1. How much capital is needed to put up the business?

2. Where should the business be located?
3. How big is the demand for the product? Do many people need this product
and will continue to need it for a long time?
4. How is the demand met? Who are processing the products to meet the
needs (competition or demand)? How much of the need is now being met
(supply)?
5. Do you have the background and experiences needed to run this particular
business?
6. Will the business be legal and not against any existing or foreseeable
government regulation?
7. Is the business in line with your interest and expertise?

Your answers to these questions will be helpful in screening which ones among
your many ideas are worth examining further and worth pursuing.

Branding

Branding is a marketing practice of creating a name, a symbol or design that

identifies and differentiates product or services from the rest. It is also a promise to your
customers. It tells them what they can expect from your product or service and it
differentiates your offerings from other competitors. Your brand is derived from who you
are, who you want to be and what people perceive you to be.

Branding is one of the most important aspects in any business. An effective

brand strategy gives you a major edge in increasingly competitive markets.

A good product can:

- deliver message clearly,
- confirm credibility,
- connect to target prospect,
- motivate buyers, and
- concretize user loyalty.

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 Here are simple tips to publicize your brand:

 Develop a tagline. Write a statement that is meaningful, impressive, and easy

to remember to capture the essence of your brand.

 Design a logo. Create a logo symbolic of your business and consistent with

your tagline and displace it strategically.

 Write a brand message. Select a key message to communicate about your

brand.

 Sustain a brand quality. Deliver a promise of quality through your brand.

 Practice consistency.  Be reliable and consistent to what your brand means

in your business.

In generating a business idea, you should first identify the type of business suited
to your business idea. You should analyze and scan the potential environment, study
the marketing practices and strategies of your competitors, analyze strengths,
weaknesses, opportunities, and threats in your environment to ensure that the products
or services you are planning to offer will be patronized and within easy reach of target
consumers.
How to conduct SWOT Analysis:

 Be realistic about the strengths and weaknesses of your business when

conducting SWOT Analysis.

 SWOT Analysis should distinguish between where your business is today, and
where it can be in the future.
 SWOT Analysis should always be specific. Avoid any gray areas.
 Always apply SWOT Analysis in relation to your competition, i.e.
better than or worse than your competition.
 Keep your SWOT Analysis short and simple. Avoid complexity and over analysis.
 SWOT Analysis is subjective.

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Task 6: SWOT Analysis

Directions: In a separate sheet of paper or in your notebook list down all your
observations for your business idea. Categorize your observations according to
strengths, weakness, opportunities and treats. After carefully listing them down, use the
stated strategies to come up with a sound analysis, activities and best business idea.

Strength (S) Weaknesses (W)

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- -
- -
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Opportunities (O) Threats (T)

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- -
- -
- -
- -

Strategies:

 SW - Maximize on the Strengths to overcome the internal Weakness.

 OW - Capitalize on the Opportunities to eliminate the internal
Weakness.

 ST - Maximize on your Strengths to eliminate the external Threats.

 OT - Take advantage of the available Opportunities to eliminate the
external Threats.

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Analysis:
_____________________________________________________________________________________________
_____________________________________________________________________________________________
________________________________________________________________________
Activities:
_____________________________________________________________________________________________
_____________________________________________________________________________________________
________________________________________________________________________

My Best Business Idea:

_____________________________________________________________________________________________
_____________________________________________________________________________________________
________________________________________________________________________

To deepen your understanding of the topics previously discussed, you will be

asked to perform the following activities:

Task 7: Extra Reading and Video Viewing

Reading books and watching videos have been considered as some of the most
effective educational activities that can help learners broaden their understanding on a
certain topic. In this particular task, you will be asked to conduct extra reading and video
viewing on the Internet with the following topics:
A. Steps in selecting a business idea
B. Criteria of a viable business idea
C. Benefits of a good brand
D. Ways on developing a brand

After successfully performing the assigned task, make a narrative report about it
and share it with the class.

Task 8: Designing a Logo

Directions: In a separate sheet of paper or in your notebook draw a logo that you will
use in your business. Provide a simple statement to describe your logo.

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 Logo

Tagline

Task 9: Making My Own Vicinity Map

Directions: In a separate sheet of paper or in your notebook draw a vicinity map

reflective of potential market in Computer Hardware Servicing in your province. Provide
a simple statement to describe your map.

Vicinity Map

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