BMSH2008

i Learn & Share Activity:

Business Enterprise Simulation
Overview

This performance task will allow students to experience actual management execution and exercise
decision-making skills through the simulation of a proposed business venture.

To promote collaborative learning in SHS classes, this iLS can be merged and/or associated with the
performance tasks of the following courses: Entrepreneurship, Business Ethics and Social
Responsibility, and Applied Economics. To facilitate the smooth integration of various disciplines, iLS
groupings of the students for the aforementioned courses should be synced.

Performance Task

“Business to Impress”

As one of the members of the Youth Entrepreneurship Association, you were tasked together with your
team to prepare and operate a small business enterprise for the upcoming SHS Expo at STI. The one-day
event will be your chance to showcase your business management and entrepreneurship skills to win the
favor of the guest investors, business leaders, and company owners. The business plan shall cover
marketing, management, technical, financial, and socio-economic aspects. Choose a product and/or
service that falls under the business categories below.

Business Categories

• Food and beverages. The food and beverage industry is comprised of a complex network of widely
diverse enterprises that produce and supply edible goods consumed by the world's population. This
industry cover management activities from production, conversion, preservation, transport, and
packaging of products. Currently, companies in this industry range from small family businesses to
global and capital-intensive corporations. The food industry comprises meat and fish processing, fruit
and vegetable preservation, milling, baking, biscuit making, pasta manufacturing, sugar processing
and refining, chocolate making and confectionery, and processing of oils and fats. The beverage
industry, on the other hand, includes brewing; milk processing; and distilling and manufacturing of
carbonated sodas, water, and other types of beverages (Graham et al., n.d.). Firms such as Universal
Robina Corporation (URC) and Coca-Cola Company are examples of businesses that engage in high
distribution of food and beverage products.
• Non-food commodities. These are often classified into two (2) main groups: routine consumables
and non-consumables. Routine consumables include soap, firewood, fuel, sanitary supplies, health
supplies, education supplies, among others. Non-consumables, on the other hand, are described as
longer life items that include mattresses, blankets, plastic sheeting, tents, building materials, kitchen
sets, sleeping mats, farming tools, among many others (Commodity Distribution, 1997). Unilever and
Procter & Gamble are some of the big companies that manufacture and distribute non-food
commodities.
• Service. The service sector produces intangible goods, more precisely services instead of goods. It
comprises various service industries, including warehousing and transportation, information services,
professional services, health care and social assistance, and arts, entertainment, and recreation
(Chappelow, 2020). Major companies within the transportation services sector include airlines,
trucking, railroads, and waterborne transportation (Hoovers, n.d.). Klook is an example of a booking
platform that transport tourists in various destinations globally. Grab and Uber are examples of a

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service company for general transport of passengers. Other examples of companies providing
services include hospitals, recreational spas and salons, and consultancy firms, among others.
• Technology. Technology-based and highly innovative firms are those that both operate in a
technology-based industry and develop innovative value propositions (Almendros et al., 2019). Some
examples of technology-based companies include a business that engages in manufacturing and
distribution of digital electronics, software, and internet-related services. The largest technological
firms in terms of revenue are Apple Inc., Samsung, Microsoft, Google, among others. This category
also includes e-commerce services that have changed the traditional ways of doing business. Prior
to the Internet, success in retail was said to hinge on the strategic location of brick and mortar stores.
Today, the Internet is a global marketplace affording even the smallest retailer a national, if not a
global, presence (Shaftoe, n.d.). Lazada and Shopee are examples of e-commerce platforms that
have thrived and become successful in the digital market. These companies continually develop and
expand their capabilities in order to further reach their customers more efficiently.

Business Plan Outline

INTRODUCTION

I. Organizational Background
a. It must include the vision, mission, goals, and objectives of the proposed business. This part
may also highlight a brief and concise description of the business.
II. Statement of the Problem
a. This part must present what the researchers seek to answer in relation to their proposed
business venture. The statement of the problem must be specific to marketing,
management, technical, financial, and socio-economic aspects of the business. A sample
statement of the problem is presented below:
• Marketing Aspect - What are the relevant marketing strategies should the business
adopt in order to gain a significant market share?
• Management Aspect - What is the applicable organizational form for the business?
• Technical Aspect - What kind of production and distribution process should the
business employ in order to achieve efficient business operations?
• Financial Aspect - What are the ways to maximize the profit and minimize the cost
incurred by the business?
• Socio-economic Aspect - How can the business perform social responsibility
towards the environment and the government?
III. Scope and Delimitations
a. The scope explains the extent and parameters of the business plan. It may include related
areas/subjects that will not be included in the study. Delimitations describe the boundaries
of the study, such as the sample size (if surveys/interviews will be conducted), geographical
location or setting (where interviews/surveys are conducted), population traits (of the chosen
respondents), among others.
b. This part may also present the medium or instruments for gathering information (such as
research, observations, interviews, surveys, among others) that will be used.
IV. Review of Related Literature
a. It is a detailed review of the existing publications relating to the proposed business venture.
This must include related businesses that succeed/failed in similar undertakings. The review
of related literature may also highlight the existing manufacturing techniques and/or service
delivery for the proposed business undertaking. This will give the researchers an idea of
how to competitively position their product and/or service to the market.
b. This part is NOT a summary but an evaluation and synthesis of related studies. Literature
comprises a collection of published information/materials on the particular area of research
such as books and journal articles of academic value. Internet sources may also be used
however, the researcher must only cite credible sources of information/data.

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CHAPTER 1: MARKETING ASPECT

V. Industry and Environmental Analysis
a. This part must present an internal and external evaluation of the proposed company’s
competitive position. Analytical frameworks such as SWOT Analysis, Porter’s Five (5)
Forces, PESTEL Analysis, among others can be used for the assessment (review 02
Handout 1 of BMSH2001 - Organization and Management for the industry analysis tools).
VI. The Marketing Program
a. It must present in detail the proposed target market of the business. In addition, the
researchers must include applicable product, price, place, and promotions strategy on this
part. Refer to the following guidelines:
• Product strategy - It describes/illustrates the appearance of the product, shape,
color, and features, which covers the label, package, brand, and trademark of the
product and/or service. Also, a discussion of the benefits and unique characteristics
of the product and/or service must be included in this part.
• Price strategy - It determines the demand for the product to the market. Internal and
external factors must be considered in setting the demand price for the product.
Internal factors involve manufacturing cost, while external factors involve market
demand and competition.
• Place Strategy – It describes/presents the route of the product from producer to the
retailer and to the consumers or end-users. Product distribution is important in a
business to consistently make the product available to the market. An illustration
depicting the place strategy is required on this part.
• Promotions Strategy – It comprises strategies to inform, persuade, or remind
consumers of the proposed product and/or service. This is often used to influence
opinions and elicit responses from the market. Some common techniques or a
combination of techniques that can be considered by the researchers are
advertising, personal selling, sales promotion, public relations, social media, and e-
commerce, among many others.

VII. Presentation, Analysis, and Interpretation of Data

a. This is a comprehensive presentation of data gathered from research/interviews/surveys.
Through interviews/surveys, the researchers may identify their target market’s preference
on a particular product and/or service and consumers’ willingness to buy a new product
and/or service. Thus, survey/interview results reflect market demand and can be used as a
basis in choosing/changing the target market and setting the product, price, place, and
promotions strategies.
b. Some relevant points for interview/survey are as follows: respondents’ age bracket, gender,
occupation, product/service preference, factors that affect buying decisions, willingness to
purchase the proposed product and/or service.
c. For interviews/surveys, the researchers are encouraged to set a sample size with a
minimum of 15 respondents and a maximum of 30 respondents.
d. If surveys/interviews are not possible, the researchers may simply base their product, price,
place, and promotions strategies on practices of existing enterprises that offer similar
products and/or services.

CHAPTER 2: MANAGEMENT ASPECT

VIII. Form of Business Ownership
a. It describes the adopted form of business ownership: sole proprietorship, partnership,
corporation, and cooperative.
b. The researchers are encouraged to adopt partnership (group members as partners) as the
form of their proposed business. Simply describe how this form of ownership will benefit the

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business and what applicable type of partnership and kinds of partners will work best for the
proposed venture.
IX. Internal Organization
a. This involves the manpower requirements, the organizational chart, and the compensation
scheme. The manpower requirement includes different positions for business management.
The organizational chart illustrates the assigned authority for each position. The
compensation scheme shows the designated salaries and wages, as well as the benefits of
each employee.

CHAPTER 3: TECHNICAL ASPECT

X. Technical Specifications of the Product
a. It details the technical requirements of the proposed product and/or service. A list of direct
and indirect raw materials used in the production process must be presented in this part.
Corresponding quantity and prices needed to produce a single product or deliver a service
must also be presented.
XI. Manufacturing Process/Service Delivery
a. It is a flow chart that presents the manufacturing process of the product or the delivery of
service to the consumers.
XII. Production Schedule
a. It presents the target number/quantity of products and/or service that should be produced
by the proposed business in a span of a day, month, and year.

CHAPTER 4: FINANCIAL ASPECT

XIII. Unit Production Cost
a. It lists all the costs of raw materials and direct labor used in the manufacturing of the product
or delivery of the service.
XIV. Sales
a. It presents the total annual production units of the product and/or service. This can be
derived by listing the daily production output (derived from production schedule) of the
proposed business multiplied by the number of workers, multiplied by the number of
workdays in a week, multiplied by the number of weeks in a month, then in a year. A sample
is presented below:

Daily production output 2,400

Multiply: No. of Workers 3
Total daily production units 7,200
Multiply: No. of working days in a week 6
Total weekly production units 43,200
Multiply: No. of weeks in a month 4
Total monthly production units 172,800
Multiply: No. of months in a year 12
Total annual production units 2,073,600 pcs

XV. Cost of Sales

a. It presents the estimated expenditures of the firm in building and site facilities, machinery
and equipment, furniture and fixture, salaries and wages, among others. A brief narrative
specifying the basis of the assigned cost/amount for each area must be included. A sample
is presented below:

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Expenditures Estimated Amount

Building and site facilities P10,000
Machinery and equipment 54,500
Furniture and Fixture 50,530
Salaries and Wages 200,000
Registration, taxes and licenses 10,000
Training and Development 10,000
Direct Materials 150,000
Direct Labor 255,500
Factory Overhead 150,000
Advance Expenditures 10,000
Contingency Fund 50,000
Working Capital requirements 50,000
Total Project Capital Investment Php 1,000,000.00

CHAPTER 5: SOCIO-ECONOMIC ASPECT

XVI. Social Implications
a. It describes the social responsibility of the proposed business. This part may focus on the
social benefits that can be derived from the proposed business.
XVII.Economic Implications
a. It presents the possible contributions of the proposed business to the economy and the local
community where it operates.

CHAPTER 6: SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

XVIII. Summary of Findings, Conclusions, and Recommendations
a. This includes the summary of all the aspects of the business plan. It synthesizes the entire
contents of the study to prove the viability of the proposed product and/or service. It contains
three (3) important parts, which are a summary of findings, conclusions, and
recommendations.
b. The conclusion part must provide answers to the given statement of the problem involving
marketing, management, technical, financial, and socio-economic aspects of the business.
c. The recommendation part may highlight suggestions/courses of action for existing firms that
succeed/failed in similar undertakings (as compiled under the review of related literature
section). This may include recommended strategies relating to the five (5) business aspects.
This part may also provide recommendations for future researchers/students who would
simulate or study the viability of a similar business undertaking.

BIBLIOGRAPHY
XIX. Bibliography
a. This section must present all the references used in accomplishing the business plan. The
entire paper must follow the official writing style of the American Psychological Association
(APA).
b. Refer to this link for APA style guidelines:
https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_style_introduction.html

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Evaluation Guide

Members of the
Date of
Part Output Score Panel
Submission/Presentation
(with Signatures)

I Business Plan

Implementation of
II
Business Plan

Final Grade: _____

Instructor’s Signature: __________

On the succeeding pages are the set of criteria to be used in the evaluation of your output.

Rubric for the Business Plan

Excellent Proficient Progressing Beginning
Criteria
4 3 2 1
The students The students
The students
The students were submitted a submitted an
were able to
able to submit a business plan but incomplete
submit a
business plan and need some business plan
business plan,
Comprehensive were able to add extra improvement and and have
with no
x10 detail/s in each part. have minimal minimal
grammatical,
There was no grammatical, grammatical,
spelling, and
grammatical, spelling, spelling, and spelling, and
punctuation
and punctuation error. punctuation punctuation
errors.
errors. errors.
A few parts of the Many parts of the Most parts of the
All parts of the
business plan business plan business plan
business plan were
Complete were missing or were missing or were missing or
complete and followed
x10 did not follow the did not follow the did not follow the
the recommended
recommended recommended recommended
format.
format. format. format.
Fluidity and
The business Some parts of
parallelism are The business
Organization plan is written in the business plan
present in the plan is evidently
x5 an organized were not
organization of the mixed up.
manner. organized.
business plan.
Sample Computation of Score per Instructor: Sample Computation for the Group’s Final Score:
Comprehensive 10 × 4 = 40 Instructor 1: 75
Complete 10 × 3 = 30 Instructor 2: + 80
Organization 5 × 2 = 10 Instructor 3: + 85
Total 80/100 240 ÷ 3 (Number of Panelist)
= 80 (Final Score of the Group)

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Rubric for the Implementation of Business Plan

Excellent Proficient Progressing Beginning

Criteria
4 3 2 1
Team Worked effectively Worked effectively Sometimes Did not work
Management as a team at all as a team most of worked effectively effectively as a
x5 times. the time. as a team. team.
Poor organization
Excellent resulted in tasks
Organization
organization and incorrectly,
needed
Preparation and leadership Well organized, missing deadlines,
improvement but
Set Up resulted in with a few minor and/or creating
was executed with
x5 efficient details missing. sub-standard
several on-the-
preparation and presentation.
spot changes.
set up. Instructor had to
take over.
Supply list is
Supply list needs
excellent. Every Supply list is
Materials and improvement. List is incomplete
item for the event good, may need
Supply List Items missing or missing many
is listed and minor adjustments
x5 and/or amounts details.
amounts are or details
need adjusting.
correct.
Excellent and
Communication
effective Communication
frequency
communication frequency correct Not enough or too
adequate but
Communication with consumer, but tone of voice much
includes basic
with Consumer including lacks communication
errors such as
x5 frequency and professionalism with the
lack of etiquette,
professional for business consumer.
and incorrect
communication conversation.
grammar.
techniques.
Final product was
good, meeting Instructor had to
Excellent final expectations with Final product take over or
product! some minor required assign another
Final Product
Exceeded industry adjustments. At adjustments in student to take the
x5
standards. Lot's of industry order to meet lead for product to
WOW factors. standards. WOW standards. meet consumer's
factor evident. expectations.
Good job!

Sample Computation of Score per Instructor: Sample Computation for the Group’s Final Score:
Team Management 5 × 4 = 20 Instructor 1: 75
Preparation and Set Up 5 × 3 = 15 Instructor 2: 80
Materials and Supply List 5 × 3 = 15 Instructor 3: + 85
Communication with Consumer 5 × 2 = 10 240 ÷ 3 (Number of Panelist)
Final Product 5 × 4 = 20 = 80 (Final Score of the Group)
Total Score 80/100

Sample Computation for the Group’s Final Grade:

Business Plan Final Score 80
Business Plan Presentation Score + 80
160 ÷ 2 = 80 (Final Grade of the Group)

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References:

Almendros, J., Cruz, T., & Haba, S. (2019). How technology-based firms become also highly innovative
firms? the role of knowledge, technological and managerial capabilities, and entrepreneurs’
background. https://www.sciencedirect.com/science/article/pii/S2444569X18300726

Chappelow. (2020). Service sector. Investopedia. https://www.investopedia.com/terms/s/service-

sector.asp

Commodity Distribution. (1997). A Practical Guide for Field Staff. http://www.nzdl.org/gsdlmod?e=d-

00000-00---off-0fnl2.2--00-0----0-10-0---0---0direct-10---4-------0-1l--11-en-50---20-about---00-0-1-00-
0--4----0-0-11-10-0utfZz-8-10&cl=CL3.63&d=HASHb4be308defc8a0c134db5f.5.2&gt=1

Graham, J.C., Jensen, G., Malagie, M., & Smith, D. (n.d.). Food industry processes.
http://www.ilocis.org/documents/chpt67e.htm

Hoovers. (n.d.). Transportation services industry insights from D&B Hoovers.

https://www.klipfolio.com/resources/kpi-examples/supply-chain/out-of-stock-items

Shaftoe, R. (n.d.). Industry analysis of e-commerce. Chron. https://smallbusiness.chron.com/ industry-

analysis-ecommerce-79759.html

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