PASAY CITY SOUTH HIGH SCHOOL

Piccio Garden, Villamor Airbase, Pasay City Brgy 183

Subject Area: ENTREPRENEURSHIP

Name of Student: Subject Teacher:

Grade and Section: Date:
A. LEARNING COMPETENCY: According to their website, the trademark
Develop a brand name is aggressively enforced. (Twosies and
Funzies also belong to Gerber.
Objectives:
 Identify the significance of the Brand Name 4. Jacuzzi
 Identify ways on how to develop brand  Jacuzzi is not only a brand of hot tubs and
 Develop a brand name bathtubs; they also make mattresses and
toilets.
B. DISCUSSION:
5. Chapstick
DEVELOPING A BRAND NAME  Chapstick is a brand name of lip balm
produced by Pfizer. If you find yourself
What is a brand name and what are the enjoying this product too much, websites
advantages of having a strong brand? dedicated to helping Chapstick addicts are
 A brand name is a name used to available.
distinguish one product from its
competitors. DEVELOPING A BRAND NAME

 It can apply to a single product, an entire  For a new business, creating and
product range, or even a company (e.g. effectively marketing a new brand name is
Ferrari). one of the most challenging aspects of
starting a business.
 A brand name is usually associated with a
logo or other graphical representation of  For a new business, creating and
the brand in order to strengthen the brand effectively marketing a new brand name is
image. one of the most challenging aspects of
getting out of the proverbial starting
 The main purpose of branding is to blocks.
differentiate the products and services of
one product or business from those of  Choose the wrong name and customers
competitors. have no idea what your business stands
for or what it does.
EXAMPLES OF BRAND NAME
1. Jet Ski  Choose the right name and customers
 You might think you’re riding around on a immediately identify with your value
Jet Ski, but if it’s not made by Kawasaki proposition. It’s an important step, so let’s
Heavy Industries, it’s just a personal review some of the basics.
watercraft.
2. Bubble Wrap THE SIGNIFICANCE OF THE BRAND NAME
 Bubble Wrap is probably the greatest
contribution made to our society by Sealed  Brand name will always be incredibly
Air Corporation, which they rightly important if progressive business experts
trademarked. claim that the significance of brand names
3. Onesies is fading. As an entrepreneur, therefore it
The term Onesies, referring to infant bodysuits, is is important that you spend a considerable
owned by Gerber Childrenswear. amount of time and effort developing your
brand name.
HOW TO DEVELOP A BRAND NAME
If you are ready to brand your business, management can be summed up in a
1
you need to have a clear understanding of what single word – consistency.
developing a brand actually involves before you
really get started. 8. Realign the brand and keep it current.
 Occasionally, it can (and should) change
Your brand development process should how the brand is presented. From time to
always follow these major steps: time, there is a need to update the brand
presentation (the face of the brand) to
1. Decide what is going to be brand. keep it relevant to the market in which it
 Is it branding a product, a service, a lives.
company, or an individual?

2. Do the research.
 Find out everything there to know about
the market. Then, find out everything there
is to know about the product or service.

3. Position the product or service.

 Find and win a place for the offering in the
marketplace and in consumer’s minds by
providing unique solutions to problems or
needs that are not already being
addressed by competing products.

4. Write the brand definition.

 The brand definition describes what is to
be offered, why it is offered, how the
offering is different and better, what unique
benefits the customers can count on, and
what promise or set of promises will make
all who work with and buy from the
business.

5. Develop the name, logo, and tagline.

 The name is the key that unlocks the
brand image in the consumer’s mind. The
logo is the brandmark or symbol that
serves as the face of the brand. The
tagline is the memorable phrase that
provides consumers with a quick indication
of the product, brand, and market position.

6. Launch the brand.

 The brand goes public when the name,
logo, and slogan is unveiled, and when it
begins to tell the market the story of how
the brand reflects what it stands for.

7. Manage, Leverage, and protect the brand.

This is the “care and feeding” phase of the
branding process; it’s the step that leads
to a strong, healthy, resilient brand. Just
like good parenting, good branding

PASAY CITY SOUTH HIGH SCHOOL

2
 Piccio Garden, Villamor Airbase, Pasay City Brgy 183

Subject Area: ENTREPRENEURSHIP

Week 3 – Day 1-4 / Third Quarter / SY 2021-2022

Name of Student: Subject Teacher:

Grade and Section: Date:
A. LEARNING COMPETENCY:
 Demonstrate understanding of the 4 M’s of operations
 Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to business
opportunity

Objectives:
 Explain the importance of 4M’s of operations
 Describe 4M’s of operations in relation to business opportunity

B. DISCUSSION:

THE 4M’S OF OPERATIONS

❖ If Sales is the engine that powers Auto Salvage yards then Production is the drive train that
gets us where we are going. Production is both reactive and proactive almost simultaneously. It reacts
to what is sold today and must meet the expectations set by the sales team. It must also anticipate what
most likely will be needed soon. The key for production is to have procedures and processes that can
accomplish both. Once the procedures are set up to maximize efficiency, it is time to train the production
staff on their individual responsibilities centered on the 4M’s of Production.

PRODUCTION DRIVEN BY SALES

The buyer buys vehicles based on statistics of what has been sold and what has been
searched. By the same token, production managers should decide how many and what parts to take off a
vehicle based on statistics of what has been sold and searched for on the vehicle. Why put labor into parts that
make up less than 20% of sales? With today’s inventory management system, the production managers have
an unprecedented amount of information at their fingertips, and they need to learn how to use it.
Simply, productions are driven by the volume of sales of a certain product after launching it.
Today, Medical supplies like facemasks, face shields, and vitamins etc. are really have a higher production
due to the current situation.

4Ms OF PRODUCTION (MANPOWER, METHOD, MACHINE, MATERIALS)

The 4Ms of operation in relations to business opportunity means that the four critical domains,
usually attributed to manufacturing, those are: man, machine, material and method work together. These
four critical domains are also applicable to business opportunities since business is in essence tied to
manufacturing as well. When putting up a business, manpower is critical as well as the other elements. The
businessman must take all of those into account. Let us look at each one in detail.
1. METHOD - refers to the system and step by step process in the business. Without a scalable
process, it would be difficult to expand the business. This means that the methods used in the main
branch must be documented and must be replicated as well in other branches. If it is difficult to
implement at another site, find what needs to be improved.

2. MANPOWER - this is the worker. When setting up a business, finding honest and capable people is
always a challenge. In my experience, people can be honest but may not be capable or competent
3
 and some are capable but not honest. It is a rare find to find someone with all the ideal qualities. So
for a businessman, they must be able to treasure their employees who are both capable and honest
as they are integral to the growth of the business

3. MATERIALS - sourcing raw materials are critical in any business endeavor as the businessman
would want to have the cheapest possible at the highest quality.

4. MACHINES - machinery is also important. Without the proper equipment, you will not be able to
perform the needed tasks efficiently. You may be able to use the manpower to do it but it is usually
more efficient if machines are able to automate the work.
Running a business is a complex process and all of these elements interplay. It is not just one
machine for example but many. Manpower issues could also arise, which would challenge the method that has
been set up. It is up to the businessman to identify and solve these issues.

SAMPLE OF FISHBONE DIAGRAM SHOWING THE 4Ms OF PRODUCTION

MEASURING PRODUCTION

Once the New Processes are formalized and employees are trained on how to perform, you can now
begin to measure for expected performance and begin enforcing minimums. Do get also production standards
and implementation procedures. Once these standards are known, the manager is responsible in figuring out
how to motivate (by means of money or recognition) and train the employees to reach these new standards.

PRODUCTION OR TECHNICAL FEASIBILITY

Once an entrepreneur has found information about potential consumers, their requirements and the
likely share of the market that could be obtained for a new product, it is then necessary to assess whether
production at this scale is technically feasible.

The series of questions below is helpful in deciding the technical requirements of the business:

1. Are enough raw materials of the correct quality available when needed for year-round
production?
2. Is the cost of the raw materials satisfactory?
3. Are the correct size and type of equipment available for the expected production level and is
it a reasonable cost?
4. Can it be made by local workshops? Are maintenance and repair costs affordable?
5. Are sufficient information and expertise available to ensure that the food is consistently
made at the required quality?
6. Are suitable packaging materials available and affordable?
7. Are distribution procedures to retailers or other sellers established?
8. Is a suitable building available? What modifications are needed?
9. Are services (fuel, electricity, water, etc.) available and affordable?
10. Are trained workers available and are their salaries affordable?
CONTENTS OF PRODUCTION OR TECHNICAL FEASIBILITY
1. PRODUCTION PLANNING
4
  This plan should indicate how the different stages in a process are linked together. It should identify
any “bottlenecks” in the process, the equipment that is required for each stage and where the quality
assurance procedures should be used.
 The data that has been found from market surveys is added to the process chart to indicate the scale of
production that is required.
 A chart is prepared and used for planning a number of different aspects of the production process.

2. RAW MATERIALS AND INGREDIENTS

 There are two stages involved in planning the amounts of materials that are needed to produce the
required weight of product. It is necessary to calculate the amount of each ingredient that will be
needed to formulate a batch of product. Further, it is necessary to calculate the amount of losses that
can be expected during the preparation.

3. EQUIPMENT REQUIRED
 The decisions on equipment requirements are influenced by the:
3.1. The cost and availability of machinery.
3.2. The availability of people who are skilled in maintenance and repair.
3.3. The availability and cost of spare parts and the possibilities of local equipment fabrication.

4. PACKAGING
 Selection of packaging materials frequently causes the largest problems for small procedures and is
often the main cause of delay in getting a business established.
Considerations include the following:
4.1. The technical requirements of the product for protection against light, crushing, air,
moisture etc.
4.2. The promotional and marketing requirements; and
4.3. The relative cost and availability of different types of packaging. Professional advice
should be sought from packaging specialists or agents of packaging manufacturers.

5. STAFFING LEVELS
 Decisions on the number and types of workers that are required to operate the proposed business are
taken in conjunction with decisions on equipment procurement.
 It is possible to break down the production into different stages and then decide the number of people
that will be needed for each stage of the process.
 It is important also to include functions such as store management, quality assurance and bookkeeping
when planning employment levels.

C. ACTIVITY
Explain the importance of 4Ms of operation in relations to business opportunity.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

D. PRACTICE ACTIVITY
Identify the process needed in each 4Ms of the productions. Choose your answer on the given choices
below then write on the specific 4Ms of the production.

Quality Supplier Installation

Budget Resources Schedule

Design Demand Procedure

Communications

5
EVALUATION

Read each statement carefully. Write your answer on space provided before the number.
_________________________1. It is the engine that powers Auto Salvage yards.
_________________________2. It frequently causes the largest problems for small procedures and is often
the main cause of delay in getting a business established.
_________________________3. It is the drive train that gets us where we are going.
_________________________4. It is critical in any business endeavor as the businessman would want to
have the cheapest possible at the highest quality.
_________________________5. It refers to the worker.
_________________________6. It refers to the system and step by step process in the business.
_________________________ 7. These two stages involved in planning the amounts of materials that are
needed to produce the required weight of product.
_________________________ 8. This plan should indicate how the different stages in a process are linked
together.
_________________________ 9. Without this, you will not be able to perform the needed tasks efficiently.
_________________________ 10. It is a complex process and all of these elements interplay.

6
 PASAY CITY SOUTH HIGH SCHOOL
Piccio Garden, Villamor Airbase, Pasay City Brgy 183

Subject Area: ENTREPRENEURSHIP

Week 4 – Day 1-4 / Third Quarter / SY 2021-2022

Name of Student: Subject Teacher:

Grade and Section: Date:
A. LEARNING COMPETENCY
Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to business opportunity:
 Develop a product description
 Create a prototype of the product
 Test the product prototype
 Validate the service description of the product with potential customers to determine its
market acceptability

OBJECTIVE
• Identify key parts of product description
• Discuss and explain a prototype product.
• Test the product prototype
• Validate the product prototype
B. DISCUSSION
A product description is the marketing copy used to describe a product's value proposition to
potential customers. A compelling product description provides customers with details around features,
problems it solves and other benefits to help generate a sale.

Introduce the product by giving the reader some general information

Definition – start with a definition of the product so that audience knows exactly what’s
being discussed.

Function – give brief description of the function and capabilities of the product

Intended Audience – explain the intended and the purpose of the description

General Description – provide a short overall description of the product including overall
size, shape, and main materials.

Major parts – provide list of the major parts that will be described in the main body of the
description.
DEFINITION
EXAMPLE:

“The apple watch is a smart watch that displays the time and date, runs
specially designed application

and allows the userto access SMS, instant messages, and emails. The apple watch connects to an iPhone

FUNCTIONS
and displaysdata and messages storedin the phone.

The descriptionis intended to describe to the end user the structure and operating principle of apple watch
”

AUDIENCE

7
 GENERAL DESCRIPTION

The main body of the apple watchis an aluminum square with rounded corners and edges.
There is a two-piece rubber strap that is connected to the main body at the op
t and bottom. The bottom
strap contains series of holes and the upper strap contains a metal stud which used to connect the two
pieces together with laid flat the overall dimensions of the apple watch are

Length: 42 mm

Width: 285 mm

The major components are: 1. Main body

2. Touch display

3. Crown MAJOR PARTS

4. Strap

5. Fastening Stud

EVALUATION:

1. Given the product description below, identify the Definition, Functions, General Description.

Tropicana 100% Orange juice with no added sugar for a healthy you. With no added
preservatives, color or artificial flavoring, Tropicana puts the good in morning. Add a glass of
Tropicana 100% to your breakfast and give your day a great start.

Add a glass of Tropicana 100% to your breakfast and give your day a great start. Its
full 9 nutrients revitalize your body and awaken your senses. Be alive, all day long.

Tropicana 100% Orange Juice = 17 Oranges

No artificial flavoring No added color

No added sugar No added preservative

No Cholesterol, Fat, Sat Fat, MUFA, PUFA

Flavor: Orange Brand: Tropicana

Weight: 1 Kilograms Volume: 1 Liters This is a

Vegetarian product

CREATING PRODUCT PROTOTYPE

 One of the essential early steps in the inventing process is creating a prototype--which, simply
defined, is a three-dimensional version of your vision. But what exactly should a prototype look
like? First, it depends on your idea. Second, it depends on your budget and your goals. If possible,
it's great to start with a handmade prototype, no matter how rudimentary. We've seen prototypes
made from the simplest of household items: socks, diaper tabs, household glue, empty milk
containers--you name it. If it works for your initial demonstration purposes, it's as good as the most
expensive materials.

8
  Eventually, if you decide to move forward with your invention, you'll probably need what's known as
a "pre-production" prototype--especially if you plan to manufacture it yourself rather than license it.
But as a first step, a homemade "presentation" prototype can give you a good running start.

A prototype provides other advantages, as well:

1. It enables you to test and refine the functionality of your design. Sure, your idea works
perfectly in theory. It's not until you start physically creating it that you'll encounter flaws in your
thinking. That's why another great reason to develop a prototype is to test the functionality of your
idea. You'll never know the design issues and challenges until you begin actually taking your idea
from theory to reality.
2. It makes it possible to test the performance of various materials. For example, your
heart may be set on using metal--until you test it and realize that, say, plastic performs better at a
lower cost for your particular application. The prototype stage will help you determine the best
materials.
3. It'll help you describe your product more effectively with your team, including your
attorney, packaging or marketing expert, engineers and potential business partners.
4. It will encourage others to take you more seriously. When you arrive with a prototype in
hand to meet any professional--from your own attorney to a potential licensing company--you
separate yourself from the dozens of others who've approached them with only vague ideas in mind.
Instead, you'll be viewed as a professional with a purpose, as opposed to just an inventor with a
potentially good idea.

 So now that you know that creating a prototype is a vital step in your invention process, how exactly
do you move forward and actually do it? This stage in the inventing process is possibly the period of
greatest learning. This is where your words and thoughts change from "Can I?" to "How will I?"

Making a prototype by hand is a great way to start bringing your product to life. Remember, there
are no rules! Give yourself permission to experiment. Look around the house and select materials
that you can use to test to see if your idea works.

9
 PASAY CITY SOUTH HIGH SCHOOL
Piccio Garden, Villamor Airbase, Pasay City Brgy 183

Subject Area: ENTREPRENEURSHIP

Week 5 – Day 1-4 / Third Quarter / SY 2021-2022

Name of Student: Subject Teacher:

Grade and Section: Date:

A. LEARNING COMPETENCY
• Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to
business opportunity:
o Select/pinpoint potential suppliers of raw materials and other inputs necessary to
produce the product or service
o Discuss the value/supply chain in relation to the business enterprise; and
o Recruit qualified people for one’s business enterprise.

OBJECTIVE
• Identify the requirement for selecting potential suppliers.
• Identify the stakeholders in value chain and supply chain
• Discuss the objective of value chain and supply chain relation to business enterprise

B. DISCUSSION
MEASURING PRODUCTION, PRODUCTION OR TECHNICAL FEASIBILITY

MEASURING PRODUCTION
 Once the new processes are formalized and employees are trained on how to perform, you can now
begin to measure for expected performance and begin enforcing minimums. Do get also production
standards and implementation procedures. Once these standards are known, the manager is
responsible in figuring out how to motivate (by means of money/recognition) and train the
employees to reach these new standards.

PRODUCTION OR TECHNICAL FEASIBILITY

 Once an entrepreneur has found information about potential consumers, their requirements and
they likely share of the market that could be obtained for a new product, it is then necessary to
assess whether production at this scale is technically feasible.

 The series of questions below is helpful in deciding the technical requirements of the
business:
1. Are enough raw materials of the correct quality available when needed for year-round production?
The raw materials should be sufficient all year-round production.

2. Is the cost of the raw materials satisfactory?

The raw materials should be affordable so that the products can be sold cheaply.

3. Are the correct size and type of equipment available for the expected production level and is it at a
reasonable cost?
After you found potential buyers, the equipment and materials needed should be available to
produce the products. It should attain the demand on a certain period.

4. Can it be made by local workshops? Are maintenance and repair costs affordable?
Once the equipment malfunctioned, it should be repaired locally to avoid waste of time and money.

5. Are sufficient information and expertise available to ensure that the food is consistently made at the
required quality?

6. Are suitable packaging materials available and affordable?

10
 7. Are distribution procedures to retailers or other sellers established?

8. Is a suitable building available? What modifications are needed?

9. Are services (fuel, water, electricity etc.) available and affordable?

10. Are trained workers available and are their salaries affordable?

CONTENTS OF PRODUCTION OR TECHNICAL FEASIBILITY

1. PRODUCTION PLANNING
This plan should indicate how the different stages in a process are linked together. It should
identify any ‘bottlenecks’ in the process, the equipment that is required for each stage and where
quality assurance procedures should be used.
The data that has been found from market surveys is added to the process chart to indicate
the scale of production that is required.
A chart is prepared and used for planning a number of different aspects of the production
process.

2. RAW MATERIALS AND INGREDIENTS

There are two stages involved in planning the amounts of materials that are needed to
produce the required weight of product. It is necessary to calculate the amount of each ingredient
that will be needed to formulate a batch of product. Further, it is necessary to calculate the amount
of losses that can be expected during preparation.

3. EQUIPMENT REQUIRED
The decisions on equipment requirements are influenced by the:
3.1. The cost and availability of machinery
3.2. The availability of people who are skilled in maintenance and repair;
3.3. The availability and cost of spare parts and the possibilities of local equipment
fabrication.

4. PACKAGING
Selection of packaging materials frequently causes the largest problems for small producers
and is often the main cause of delay in getting a business established.
Considerations include the following:
4.1. The technical requirements of the product for protection against light, crushing, air,
moisture etc.
4.2. The promotional and marketing requirements; and
4.3. the relative cost and availability of different types of packaging. Professional advice
should be sought from packaging specialists or agents of packaging manufacturers.

5. STAFFING LEVELS
Decisions on the number and types of workers that are required to operate the proposed
business are taken in conjunction with decisions on equipment procurement.
It is possible to break down the production into different stages and then decide the number
of people that will be needed for each stage of the process.
It is important also to include functions such as store management, quality assurance, and
bookkeeping when planning employment levels.

VALUE CHAIN VS. SUPPLY CHAIN: WHAT'S THE DIFFERENCE?

The term value chain refers to the process in which businesses receive raw materials, add
value to them through production, manufacturing, and other processes to create a finished product,
and then sell the finished product to consumers. A supply chain represents the steps it takes to get
the product or service to the customer, often dealing with OEM and aftermarket parts.
While a supply chain involves all parties in fulfilling a customer request and leading to
customer satisfaction, a value chain is a set of interrelated activities a company uses to create a
competitive advantage.
11
 KEY TAKEAWAYS
• The value chain is a process in which a company adds value to its raw materials to produce
products eventually sold to consumers.
• The supply chain represents all the steps required to get the product to the customer.
• The value chain gives companies a competitive advantage in the industry, while the supply
chain leads to overall customer satisfaction.

Value Chain
The concept of the value chain comes from a business management perspective. Value
chain managers look for opportunities to add value to the business. They may look for ways to cut
back on shortages, prepare product plans, and work with others in the chain to add value to the
customer.

There are five steps in the value chain process. They give a company the ability to create
value exceeding the cost of providing its goods or service to customers. Maximizing the activities in
any one of the five steps allows a company to have a competitive advantage over competitors in its
industry. The five steps or activities are:

1. Inbound Logistics: Receiving, warehousing, and inventory control.

2. Operations: Value-creating activities that transform inputs into products, such as
assembly and manufacturing.
3. Outbound Logistics: Activities required to get a finished product to a customer.
These include warehousing, inventory management, order fulfillment, and shipping.
4. Marketing and Sales: Activities associated with getting a buyer to purchase a product.
5. Service: Activities that maintain and enhance a product's value, such as customer
support and warranty service.

In order to help streamline the five primary steps, Porter says the value chain also requires a
series of support activities. These include procurement, technology development, human resource
management, and infrastructure.

A profitable value chain requires connections between what consumers demand and what a
company produces. Simply put, the connection or sequence in the value chain originates from the
customer's request, moves through the value chain process, and finally ends at the finished product.
Value chains place a great amount of focus on things such as product testing, innovation, research
and development, and marketing.

Supply Chain
The supply chain comprises the flow of all information, products, materials, and funds
between different stages of creating and selling a product to the end-user. The concept of the supply
chain comes from an operational management perspective. Every step in the process— including
creating a good or service, manufacturing it, transporting it to a place of sale, and selling it—is part
of a company's supply chain.

The supply chain includes all functions involved in receiving and filling a customer
request. These functions include:

1. Product development
2. Marketing
3. Operations
4. Distribution
5. Finance
6. Customer service

Supply chain management is an important process for most companies and involves many
links at large corporations. For this reason, supply chain management requires a lot of skill and
expertise to maintain.

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 While many people believe logistics—or the transportation of goods—to be synonymous with
the supply chain, it is only one part of the equation. The supply chain involves the coordination of
how and when products are manufactured along with how they are transported.

The primary concerns of supply chain management are the cost of materials and effective
product delivery. Proper supply chain management can reduce consumer costs and increase profits
for the manufacturer.

What is a Stakeholder?
In business, a stakeholder is any individual, group, or party that has an interest in an
organization and the outcomes of its actions. Common examples of stakeholders include employees,
customers, shareholders, suppliers, communities, and governments. Different stakeholders have different
interests, and companies often face trade-offs in trying to please all of them.

Types of Stakeholders
This guide will analyze the most common types of stakeholders and look at the unique needs that
each of them typically has. The goal is to put yourself in the shoes of each type of stakeholder and see
things from their point of view.

1. Customers
 Stake: Product/service quality and value
Many would argue that businesses exist to serve their customers. Customers are stakeholders of a
business; in that they are impacted by the quality of service/products and their value. For example,
passengers traveling on an airplane literally have their lives in the company’s hands when flying with the
airline.

2. Employees
 Stake: Employment income and safety
Employees have a direct stake in the company in that they earn an income to support themselves,
along with other benefits (both monetary and non-monetary). Depending on the nature of the business,
employees may also have a health and safety interest (for example, in the industries of transportation,
mining, oil and gas, construction, etc.).

3. Investors
 Stake: Financial returns
Investors include both shareholders and debtholders. Shareholders invest capital in the business
and expect to earn a certain rate of return on that invested capital. Investors are commonly concerned with
the concept of shareholder value. Lumped in with this group are all other providers of capital, such as
lenders and potential acquirers. All shareholders are inherently stakeholders, but stakeholders are not
inherently shareholders.

4. Suppliers and Vendors

 Stake: Revenues and safety
Suppliers and vendors sell goods and/or services to a business and rely on it for revenue
generation and on-going income. In many industries, suppliers also have their health and safety on the line,
as they may be directly involved in the company’s operations.

5. Communities
 Stake: Health, safety, economic development
Communities are major stakeholders in large businesses located in them. They are impacted by a
wide range of things, including job creation, economic development, health, and safety. When a big
company enters or exits a small community, there is an immediate and significant impact on employment,
incomes, and spending in the area. With some industries, there is a potential health impact, too, as
companies may alter the environment.

6. Governments
 Stake: Taxes and GDP
Governments can also be considered a major stakeholder in a business, as they collect taxes from
the company (corporate income taxes), as well as from all the people it employs (payroll taxes) and from
13
other spending the company incurs (sales taxes). Governments benefit from the overall Gross Domestic
Product (GDP) that companies contribute to.

C. ACTIVTY:

1. What should you look for in a supplier? (List down your answers)
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

2. What are the contents of production or Technical Feasibility?

_______________________________________________________________________________
_______________________________________________________________________________
______________________________________________________________________________

D. PRACTICE ACTIVITY
Identify the following. Write your answer on the space provided before the number.
___________________________1. It refers to the process in which businesses receive raw materials, add
value to them through production, manufacturing, and other processes to create a finished product, and
then sell the finished product to consumers.
___________________________2. It is any individual, group, or party that has an interest in an
organization and the outcomes of its actions.
___________________________3. It represents the steps it takes to get the product or service to the
customer, often dealing with OEM and aftermarket parts.
___________________________4. They are stakeholders of a business; in that they are impacted by the
quality of service/products and their value.
___________________________5. They collect taxes from the company, as well as from all the people it
employs and from other spending the company incurs.

E. EVALUATION
Enumerate the following:

A. The six-supply chain includes all functions involved in receiving and filling a customer
request.
1. __________________________________
2. __________________________________
3. __________________________________
4. __________________________________
5. __________________________________
6. __________________________________

B. The six types of stakeholders.

1. __________________________________
2. __________________________________
3. __________________________________
4. __________________________________
5. __________________________________
6. __________________________________

C. D. The five steps in the value chain process.

1. __________________________________
2. __________________________________
3. __________________________________
4. __________________________________
5. __________________________________

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