GEE- THE ENTREPRENEURIAL MIND 1

PREFACE

These materials share the same goals with the General Education curriculum in
“the holistic development of the person as an individual in the context of the Philippine
society and nation, and as members of the global community wherein Filipino students
recognize the fundamental humanity of all, respect and appreciates diversity, and cares
about the problems that affect the world”. (CHED Memorandum Order No. 20, s.
2018)

This course focuses to encourage students to develop an entrepreneurial

mindset. It provides an understanding of the role of the entrepreneur, innovation and
technology from a personal and collaborative team perspective, as a system of values,
motivations and goals that all managers can adopt, whether as the founder of a
start-up or a leader within an established organization. Explore the identification of
challenging opportunities in the world, and how to find alignment between personal
goals and aspirations and the exploitation of opportunities. (Lifted from the course
syllabus)

Course Pack Contributors:

ZANDRA B. MENDOZA MARY AZEAL G. AMAYA

Tuburan Campus Argao Campus

JEAN PAUL N. CABIGON MARY BABETH M. NERVES

Argao Campus San Francisco Campus

JOHNRIX M. MENANCILLO PEARL ANGELI C. CANETE

Main Campus Cebu City Mountain Satellite Campus

JENNISES M. SERICON MA. ELLYN F. TIMARIO

Daanbantayan Campus Naga Extension Campus

GEE- THE ENTREPRENEURIAL MIND 2

 UNIT TITLE PAGE
Preliminary VMGO & COURSE OVERVIEW

4 Entrepreneurial Characteristics and Competencies

5 Types of Entrepreneurs and Its Challenges

6 Socializing and Ethical Responsibilities

7 Entrepreneurship in the Philippines

8 Internal and external Analysis

9 Opportunities Identifications, Ideas Germination and

Product innovation
10 Management Functions

11 Organizational Structure

12 Operations Planning

13 Marketing Plan

14 Legalizing Stage

15 Parts of the Business Plan

Bibliography

GEE- THE ENTREPRENEURIAL MIND 3

 PRELIMINARY
VMGO and COURSE OVERVIEW

Within the orientation, the students are expected to:

- State the relevance of the course to the attainment of the VMGO of the system, the
college and the program;
- Specify the Flexible Learning System policies;
- Familiarize the coverage of the subject and its requirements;

Intended Learning Outcomes

Vision of Cebu Technological University:

A premier, multidisciplinary-technological university
Mission of Cebu Technological University:
Provides advanced professional and technical instruction for special purposes,
industrial trade, teacher education, agriculture, fishery, forestry engineering,
aeronautics and land-based programs, arts and sciences, health sciences, information
technology and other relevant fields of study. It shall undertake research, production
and extension services, and provide progressive leadership across the areas of
specialization for global empowerment.
Goal of the University:
The University shall produce scientifically and technologically oriented human
capital equipped with appropriate knowledge, skills, and attitudes. It shall likewise
pursue relevant research strengthen linkages with the industry, community, and other
institutions and maintain sustainable technology for the preservation of the
environment.
Program Outcomes:
The graduates shall be able to:
1. Articulate and discuss the latest developments in the specific field of practice;
2. Effectively communicate in English and Filipino, both orally and in writing;
3. Work effectively and collaboratively with a substantial degree of independence
in multi-disciplinary and multi-cultural teams;
4. Act in recognition of professional, social, and ethical responsibility;
5. Preserve and promote “Filipino historical and cultural heritage” (based on RA
7722).

Core Values:
C-ompetence T-eamwork U-nity A-cumen C-haracter
GEE-TEM

GEE- THE ENTREPRENEURIAL MIND 4

 The Entrepreneurial Mind

Course Description:
This course focuses to encourage students to develop an entrepreneurial
mindset. It provides an understanding of the role of the entrepreneur, innovation and
technology from a personal and collaborative team perspective, as a system of values,
motivations and goals that all managers can adopt, whether as the founder of a
start-up or a leader within an established organization. Explore the identification of
challenging opportunities in the world, and how to find alignment between personal
goals and aspirations and the exploitation of opportunities.

Course Learning Outcome: At the end of the semester, the students would be able
to:
CLO1. Understand the key elements of entrepreneurial
behavior including innovation, problem-solving,
communication, creative and critical thinking,
teamwork, risk-taking and social responsibility for
professional growth.
CLO2. Determine the important elements of the
business planning, managing growth and overcoming
challenges efficiently in an entrepreneurial
environment.
CLO3. Understanding the concepts and analytical tools to
use in assessing opportunities entrepreneurial
development.
CLO4. Develop a new business
idea or initiative in an efficient and effective manner.

Preliminary Activity

Name: ______________________________ Course/Yr/Sec:

________________

Date: ___________________ Score: ________

After reviewing the school’s VMGO and your course syllabus, answer this activity:
From the VMGO Statements, which one/s relates to the study of this course on
Curriculum Development? Copy this statement below. Discuss your personal role
expectations on how you can contribute for its attainment.

GEE- THE ENTREPRENEURIAL MIND 5

Part of VMG of the University which are connected to the Program Outcomes:

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
__________________________________________________________________

What should I expect in this subject?

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
__________________________________________________________________

My Personal Commitment in order to attain the VMGO:

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
__________________________________________________________________

GEE- THE ENTREPRENEURIAL MIND 6

UNIT IV: ENTREPRENEURIAL CHARACTERISTICS AND COMPETENCIES

entrepreneurshipsecret.com

Image courtesy from:entrepreneurshipsecret.com

INTRODUCTION:
Entrepreneurs have the same character traits as leaders, similar to the early
great man theories of leadership. Studying the entrepreneurial personality found
that certain traits seem to be associated with entrepreneurs.

Being an entrepreneur requires specific skills. While some abilities might be

naturally present, others can be learned or developed through careful practice.
Understanding the qualities needed by entrepreneurs can help you grow to
become a better business leader. In this article, we explain some entrepreneur
characteristics you can improve.

PREPARATION:

GEE- THE ENTREPRENEURIAL MIND 7

 First Activity: Watch the film “The 15 Characteristics of an Effective Entrepreneur”
by clicking the link below, and prepare for a follow- up activity.

Link: https://www.youtube.com/watch?v=BhoocSXyNXc

PRESENTATION:

Here are the 10 Best Characteristics of An Entrepreneur that one must nurture:

1) Creativity:

- Creativity gives birth to something new. For without creativity, there is no

innovation possible. Entrepreneurs usually have the knack to pin down a lot of ideas
and act on them. Not necessarily every idea might be a hit. But the experience obtained
is gold.

2) Professionalism:

- Professionalism is a quality which all good entrepreneurs must possess. An

entrepreneurs mannerisms and behavior with their employees and clientele goes
a long way in developing the culture of the organization.

Along with professionalism comes reliability and discipline. Self-discipline enables

an entrepreneur to achieve their targets, be organized and set an example for
everyone. Reliability results in trust and for most ventures, trust in the
entrepreneur is what keeps the people in the organization motivated and willing
to put in their best. Professionalism is one of the most
important characteristics of an entrepreneur.
3) Risk-taking:

- A risk-taking ability is essential for an entrepreneur. Without the will to explore

the unknown, one cannot discover something unique. And this uniqueness might
make all the difference. Risk-taking involves a lot of things. Using unorthodox
methods is also a risk. Investing in ideas, nobody else believes in but you is a
risk too.

- Entrepreneurs have a differentiated approach towards risks. Good

GEE- THE ENTREPRENEURIAL MIND 8

 entrepreneurs are always ready to invest their time and money. But, they always
have a backup for every risk they take.

- For exploring in the unknown, one must be bestowed with a trump card; a
good entrepreneur has one, always. Also, evaluation of the risk to be undertaken
is also essential. Without knowing the consequences, a good entrepreneur
wouldn’t risk it all.
4) Passion:

- Your work should be your passion. So when you work, you enjoy what you’re
doing and stay highly motivated. Passion acts as a driving force, with which, you
are motivated to strive for better.

- It also allows you the ability to put in those extra hours in the office which can
or may make a difference. At the beginning of every entrepreneurial venture or
any venture, there are hurdles but your passion ensures that you are able to
overcome these roadblocks and forge ahead towards your goal.

5) Planning:

- Perhaps, this is the most important of all steps required to run a show. Without
planning, everything would be a loose string as they say, “If you fail to plan, you
plan to fail.”

- Planning is strategizing the whole game ahead of time. It basically sums up all
the resources at hand and enables you to come up with a structure and a
thought process for how to reach your goal. The next step involves how to make
optimum use of these resources, to weave the cloth of success. Facing a
situation or a crisis with a plan is always better. It provides guidelines with
minimum to no damage incurred to a business. Planning is one of the most
important characteristics of an entrepreneur.
6) Knowledge:

- Knowledge is the key to success. An entrepreneur should possess complete

knowledge of his niche or industry. For only with knowledge can a difficulty be
solved or a crisis is tackled. It enables him to keep track of the developments
and the constantly changing requirements of the market that he is in. May it is a
new trend in the market or an advancement in technology or even a new
advertiser’s entry, an entrepreneur should keep himself abreast of it. Knowledge

GEE- THE ENTREPRENEURIAL MIND 9

 is the guiding force when it comes leaving the competition behind. New bits and
pieces of information may just prove as useful as a newly devised strategy.

- He should know what his strengths & weaknesses are so that they can be
worked on and can result in a healthier organization. A good entrepreneur will
always try to increase his knowledge, which is why he is always a learner. The
better an entrepreneur knows his playground, the easier he can play in it.

7) Social Skills:

- A skill set is an arsenal with which an entrepreneur makes his business work.
Social Skills are also needed to be a good entrepreneur. Overall, these make up
the qualities required for an entrepreneur to function.
Social Skills involve the following:

● Relationship Building
● Hiring and Talent Sourcing
● Team, Strategy, and Formulation

8) Open-mindedness towards learning, people, and even failure:

- An entrepreneur must be accepting. The true realization of which scenario or

event can be a useful opportunity is necessary. To recognize such openings, an
open-minded attitude is required.
- An entrepreneur should be determined. He should face his losses with a
positive attitude and his wins, humbly. Any good businessman will know not to
frown on a defeat. Try till you succeed is the right mentality. Failure is a step or a
way which didn’t work according to the plan. A good entrepreneur takes the
experience of this setback and works even hard with the next goal in line.
This experience is inculcated through the process of accepted learning. Good
entrepreneurs know they can learn from every situation and person around
them. Information obtained can be used for the process of planning.

9) Empathy:

- Perhaps the least discussed value in the world today is empathy or having high
emotional intelligence. Empathy is the understanding of what goes on in
someone’s mind. This is a skill that is worth a mention. A good entrepreneur

GEE- THE ENTREPRENEURIAL MIND 10

 should know the strengths and weaknesses of every employee who works under
him. You must understand that it is the people who make the business tick!
You’ve got to deploy empathy towards your people.

- Unhappy employees are not determined and as an entrepreneur, it is up to you

to create a working environment where people are happy to come. To look after
their well-being, an entrepreneur should try to understand the situation of
employees. What can be a motivational factor? How can I make my employees
want to give their best? All this is understood through empathy.

- Keeping a workplace light and happy is essential. For without empathy, an

entrepreneur cannot reach the hearts of employees nor the success he desires.
Empathy is one of the most important characteristics of an entrepreneur.

10) And lastly, the customer is everything:

- A good entrepreneur will always know this; a business is all about the
customer. How you grab a customer’s attention is the first step. This can be done
through various mediums such as marketing and advertising. It is also important
that you know the needs of your customers. The product or service which is
being created by your organization needs to cater to the needs of your
consumers.
- Personalizing a business for consumers will also boost the sales. The ability to
sell yourself in front of a potential investment when it comes in the form of a
customer is also required. Being ready with the knowledge to please a customer,
is a way to have a successful business.

- It isn’t necessary that every entrepreneurial venture is a huge success. In

addition to a brilliant idea, viability is an equally important aspect of a business,
which is where having a business education can play an important role. All
these characteristics of an entrepreneur can be instilled in an individual

PECs (personal entrepreneurial competencies)

- refer to the qualities, characteristics, skills, abilities, knowledge and behavior

that a person must possess by an individual in order to perform entrepreneurial
functions effectively.

GEE- THE ENTREPRENEURIAL MIND 11

1. Opportunity-seeking

2. Persistence

3. Commitment

4. Persuasion

GEE- THE ENTREPRENEURIAL MIND 12

5. Self-Confidence

6. Goal-seeking

7. Risk-taking

GEE- THE ENTREPRENEURIAL MIND 13

 8. Decision Making

9. Creative & Innovative

o An entrepreneur should be creative and innovative to stay in the
business and in order to have edge over the other competitors.

10. Problem-solving
o Responsible for identifying and solving the problems of your customers,
partners, employees, and your company.

11. Planner
o Setting goals and then taking the steps to reach them.

o Planning process helps an entrepreneur identify exactly what needs to be

accomplished to build the venture, and what human and financial
resources are required to implement the plan.

Work cited:
https://www.indeed.com/career-advice/finding-a-job/entrepreneur-characteristics

GEE- THE ENTREPRENEURIAL MIND 14

 PRACTICE:

Reflection

NAME: _______________________ COURSE/YR./SECTION: ______________

DATE: ___________________ SCORE: _________________

Activity: Based upon the film and the lesson presented, make a short reflection on
what characteristic/s, and competencies you possess as a future entrepreneur and
how do these characteristics and competencies will help you succeed your business.

GEE- THE ENTREPRENEURIAL MIND 15

 PERFORMANCE:
Video presentation

NAME: _______________________ COURSE/YR./SECTION: ______________

DATE: ___________________ SCORE: _________________
Activity: Make a 3-4 minute video presentation depicting the life of a successful
entrepreneur in the Philippines. Rubric is as follows.
RUBRIC FOR THE GRADING
10 8 6 4 2
Criteria Excellent Very Satisfactory Needs Poor Rate
Satisfatory Improvem
ent
1. Mastery of Showed Almost Showed average Showed little Performed
the content high level of showed mastery of the mastery of poorly the
mastery of mastery of content the content content
the content the topic
but some
errors were
evident
2. Proper Showed Executed Executed the Executed Execute the
Execution excellent the routine routine with the routine routine/
performance almost average accuracy with little exercise
accurately accuracy incorrectly
but some
errors were
evident
3. Delivery of Showed The Showed average Showed very Failed to
the high level of movements level of focus and little level of show focus
performance focus and were almost concentration in focus and and
concentratio coordinated performing the concentratio concentratio
n in but some role play n in n in
performing errors were performing performing
the role play evident the role play the role play
4. Preparation Showed Showed Showed average Showed little Failed to
excellent in high interest interest in interest in prepare for
preparing in preparing preparing towards preparing the play
towards the towards the the role play towards the
role play role play role play
TOTAL

Assignment:

GEE- THE ENTREPRENEURIAL MIND 16

 Make an autobiography of a successful entrepreneur in the country
and put it in a short- sized bond paper.

UNIT V: TYPES OF ENTREPRENEURS AND IT’S CHALLENGES

entrepreneurshipsecret.com

Image: https://images.app.goo.gl/iaNPZqDqyvxPe1tG9

INTRODUCTION:
Entrepreneurs are people who have a passion for creating change in the
world. They need a certain set of skills to be effective leaders and innovators.
Since there are so many types of businesses, there are also many kinds of
entrepreneurship.

Many of us have dreams of working for ourselves or becoming

entrepreneurs. While this can be a great way to create the lifestyle you want, the
reality is that entrepreneurship isn’t for everyone. Successful
entrepreneurship takes dedication and work, and there are challenges and
sacrifices that many business owners face, especially at the beginning of the
journey.

PREPARATION:

First activity:
Watch the world best Award winning short film “Ambani The Investor” by
clicking the link below:

GEE- THE ENTREPRENEURIAL MIND 17

 https://www.youtube.com/watch?v=DubdqpkKsPA&fbclid=IwAR3WWFTvG5CMgYhUuwUoB6
qEBBZlQG7CkRg-gPzuECdERlsuoB76-Ankg1E

PRESENTATION:

TYPES OF ENTREPRENEURS:

1. Small Business, Lifestyle and Family Entrepreneurs

A small business entrepreneur is an individual who establishes and
manages a business for the principal purpose of furthering personal goals. The
business may overlap with family needs and desires. These ventures merely
provide a reasonable lifestyle for the founding entrepreneurs. Retailing is one of
the few sectors where entrepreneurial activity is extensive.

2. Franchise Entrepreneur

Franchising started in the 1840’s and became an American institution. One

out of sixteen workers is employed in franchise. Franchising is where a franchisor
is offering franchisee exclusive rights in return for their payment of royalties and
conformance to standardized operating procedures. Franchising into a franchise
increases the odds for survival in as much as 90 percent over starting up
independently.

There are three basic types: product franchising, like automotive

dealerships; service franchising, like salon and spa, etc; and business format ,
like McDonald’s.

3. Professional Fast-Growth and Serial Entrepreneurs

Fast-Growth ventures have been called “the backbone of the U.S.

economy “, numbering less than 3500,000, they create about two-thirds of all
new job growth.

Professional entrepreneurs lead these ventures, which typically employ

between 20 and 500 people and have sales growth of at least 20 percent each
year for four years, and target five-year revenue projections between $10 and
$50 million. Less than 10 percent of all start-ups make it to this level. As can be

GEE- THE ENTREPRENEURIAL MIND 18

 expected, it is well documented that these high-growth ventures receive great
investor interest.

4. Corporate Entrepreneurs and Intrapreneurs

A driving force for the corporate world is “innovate or die”. As Drucker

says, “Any organization that believes that management and entrepreneurship are
different, let alone incompatible, will soon find itself out of business.”
Entrepreneurship is beneficial for managing established business but not easily
maintained. Large, mature conservative business needs entrepreneurial
leadership so they can perform the continuous renewal that has become a
requirement for survival. For example , managers at 3M have set a long-term
objective of achieving double digit sales growth through innovation.

5. Creative Disrupters and Innovators

Shawn Fanning, the creator of Napster, appeared on the covers of Time

Fortune and Business Week before he could legally buy a beer. In 1994, John
Doerr, a venture capitalist at Kleiner Perkins Caufield & Byers, met a
twenty-three-year-old Marc Andeessen, who confidently declared that “his
software would change the world. “ Their company, Netscape, went on to a
record-shattering initial public offering in 1995. Like Edison in search of the
electric light bulb, seeing only a better way to illuminate a room, these
entrepreneurs are a rare breed, living on the creative edge. Most often, these
brilliant “entrepreneurial-engineers” look to technology to solve problems in ways
that “unlock value.” They are visitors from the future, living among us here and
now. They have an optimistic passion for an idea that borders on the
embarrassing and restless urge to make a difference in the world. They bring us
innovations that will have a deep impact on how we live, work, and think in the
decades ahead.

6. Extreme Entrepreneurs

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 Entrepreneurship is the last frontier where someone can explore
individuality and pioneer a dream. In his work isolated State (1850). German
economist Johahh Heinrich von Thunen described the entrepreneur as part
“explorer and inventor”. Long before America’s Silent Army, Christopher
Columbus pitched his dream to Queen Isabella in Seville, Spain. His “discovery”
of America in 1492 brought new prosperity to Spain, as it soon became a world
economic superpower. John Sutter was even called a “soldier of fortune.” It was
near his lumber mill on the American river in California that gold was
“discovered” in 1884, about 150 miles from Intel’s headquarters in Santa Clara
.Today’s extreme entrepreneurs are Formula-1 race car drivers. North Atlantic
fishermen, lumberjacks, and businessmen like Ted Turner and Richard Branson,
the billionaire who started Virgin Records and Virgin Atlantic Airlines. Branson
says, “Being an adventurer and entrepreneur are similar. You are willing to go
where most people won’t dare.”

7. Social and Nonprofit Entrepreneurs

David Packard, co-founder of Hewlett-Packard, believed that giving to the

local community was important. Social and nonprofit entrepreneurs who pursue
endeavors for the benefit of society have existed since ancient times. In fact, the
word philanthropy is derived from a greek word that means “lover of mankind.
”Today it is believed that entrepreneurism and innovation can also help spark
positive social change.” The Ewing Marion Kauffman Foundation is doing just
that. Currently with over $1billion in assets, its mission is to make a difference by
encouraging entrepreneurship in all areas of American life. The Price Institute for
Entrepreneurial Studies works to further the understanding of the entrepreneurial
process. By generously providing grants to leading academic institutions, the
Institution works to stimulate MBA programs and curricula development,
encouraging and supporting students with entrepreneurial aspirations.

CHALLENGES OF ENTREPRENEURS

o Entrepreneurship comes with a host of challenges. Rewarding

challenges, but harsh challenges nonetheless. Experienced
entrepreneurs have to deal with this no matter how long they’ve been
in business - trying to establish a brand, adjust to match or exceed the
competition and keep your business profitable is a challenge no matter
how many years you’ve been in business.

GEE- THE ENTREPRENEURIAL MIND 20

 o But for new and young entrepreneurs, there are some unique
challenges that are especially difficult to overcome. If you’re just
getting into the game, or you’re thinking about becoming an
entrepreneur, be prepared for these eight significant hurdles.

1. Abandoning another career

If you’re going to dedicate yourself to starting and nurturing a business to

success, it’s going to be nearly impossible to simultaneously manage another
career. You might be able to manage the infancy of your business on the side,
during weeknights and weekends, but if you want a chance of growing
significantly, invariably you’ll have to quit your day job.

Walking away from a promising, steady long-term opportunity for

something unpredictable is scary -- especially if you’ve never run a business
before. Unfortunately, there’s no easy way to address this. Just think through
your decision logically, and don’t ignore your instincts.

2. Financing

Experienced entrepreneurs don’t have it easy when it comes to funding a

new business, but they do have a few advantages over newcomers. They might
have a pool of capital from a business they previously sold or a steady stream of
revenue they can use to fund a new business’s cash flow.

Even if their first business went under, they’ve likely made investment
contacts and client connections necessary to give them a leg up in a new
enterprise. As a new entrepreneur, you’ll be starting from scratch, which means
you’ll need to start networking like crazy and thinking through all your possible
funding options before landing on one.

3. Teambuilding

This is especially hard if you’ve never run or managed a team before, but
even if you have management experience, picking the right team for a startup is
stressful and difficult. It’s not enough to find candidates who fill certain roles
-- you also need to consider their cost to the business, their culture fit and how
they’ll work as part of your overall team. Such considerations are exceptionally

GEE- THE ENTREPRENEURIAL MIND 21

 hard when you’re under the pressure of filling those positions as soon as
possible.

4. Being the visionary

As the founder of your startup, you’ll be expected to come up with the

ideas. When a competitor emerges, it will be your responsibility to come up with
a response plan. When your team hits an impenetrable obstacle, your job will be
to come up with an alternative plan to move forward.

This demands on-the-spot creative thinking -- which should be an

oxymoron, but entrepreneurs rarely have the luxury of time. The less experience
you have, the more pressure you’ll feel from this, and the harder time you’ll have
coming up with acceptable plans.

5. Dealing with the unknown

How long will your business exist? How profitable will your business be?
Will customers like your product? Will you be able to give yourself a steady
paycheck? None of these questions has a solid, reliable answer, even in startups
based on great ideas with all the resources they’d theoretically need.

That unknown factor means your job stability is going to plummet, and
many of your long-term plans will remain in flux as new developments emerge.
Dealing with this volatility is one of the hardest parts of emerging as a new
entrepreneur.

6. Loneliness

It’s a rarely mentioned problem of entrepreneurship, and many new

business owners aren’t prepared for it until it happens. Being an entrepreneur is
lonely. It’s a singular position, so you won’t have teammates to rely on
(completely). You’ll be working lots of hours, so you won’t see your family as
often. And your employees will be forced to remain at a bit of a distance.

7. Rule-making

It’s fun to be the boss until you have to enforce something. Sooner or
later, you’ll have to come up with the rules your business follows, from how

GEE- THE ENTREPRENEURIAL MIND 22

 many vacation days your workers get to what the proper protocol is when filing a
complaint about a coworker. These details aren’t fun to create, and they aren’t
fun to think about, but they are necessary for every business.

8. Decision-making

Believe it or not, this is probably the most stressful challenge on this list.
New entrepreneurs are forced to make hundreds of decisions a day, from big,
company-impacting decisions, to tiny, hour-affecting ones. Decision fatigue is
a real phenomenon, and most new entrepreneurs will experience it if they aren’t
prepared for the new level of stress.

If you can work your way past these major obstacles, you’ll be well on
your way to establishing yourself as an entrepreneur. That isn’t to say they won’t
continue to nag at you as the years go on, or that new and varied challenges
won’t arise to take their place, but you’ll be prepared to handle yourself in those
most volatile and impactful first few months – and that puts you far ahead of the
competition.

References:
https://www.entrepreneur.com/article/254721

PRACTICE:

Interview

NAME: _______________________ COURSE/YR./SECTION: _____________

DATE: ___________________ SCORE: _________________

Activity:
Choose one entrepreneur in your locality and make a short interview regarding
the type of his/ her business, what are the challenges he/ she encounters along the
way, and how did he/ she overcome those challenges.

PERFROMANCE:

Collage

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NAME: _______________________ COURSE/YR./SECTION: _____________
DATE: ___________________ SCORE: _________________

Activity: In a short- sized bond paper, make collage or a mood board with images
(digital or not) and drawings on what you envision your business to be. Explain your
collage during the synchronous class.

GEE- THE ENTREPRENEURIAL MIND 24

 RUBRIC FOR GRADING

Exceed Expectations Meet Does not meet Score

10 Expectations expectations
7 5
Art work The artwork is drawn The artwork lacks The art work
(creativity and creatively. With creativeness. With does not show
design) precise design and minimal effort on the creativity.
vibrant colors. Effort design and use of
is very evident. colors.

Explanation Explains Topic was not Could not explain

(content and comprehensively explained the topic.
composition) with correct comprehensively
grammatical with 1 or two
structure. mistakes on the
grammatical
structure.
Originality and Was able to relate Was not able to Could not relate
relativity to the topic to everyday thoroughly relate the topic to everyday
situation. life. topic to everyday life.
life.
TOTAL

GEE- THE ENTREPRENEURIAL MIND 25

 UNIT VI: SOCIAL AND ETHICAL RESPONSIBILITIES

PREPARATION:

Read the article entitled “BUSINESS ETHICS AND CORPORATE SOCIAL

RESPONSIBILITY by Kezia Farnham”

GEE- THE ENTREPRENEURIAL MIND 26

Link: Business Ethics and Corporate Social Responsibility Debunked | Diligent

PRESENTATION:

Business Ethics is a form of applied ethics that examines ethical rules, theories,
and principles in business context. It includes the correct understanding of any moral
duties or obligations that apply to persons who are engaged in commerce. Also known
as Ethical Management.

Business ethics pushes the practitioner to study and evaluate how he/she makes
business decisions in accordance with moral concepts and judgments through this guide
questions:

1. Is it true? Or is it deceitful?
2. Does it cause bodily or emotional harm to others?
3. Is it fair? Or is it unjust?
4. Is it the right thing to do?

Business is associated with maximizing profit while ethics deals with anything other
than profit. It is a specialized study of what is right or wrong. Ironically, in a generic
sense, people get into business whether it is done rightfully or wrongly while ethics is
made to control and minimize wrong doings. Thus, Business Ethics is an oxymoron.

Business ethics is not utilitarianism – an action is ethically right when the sum total of
benefits produced by the act is greater than the sum total of benefits any other act
could have performed in its place. But utilitarianism is not absolute and therefore
restricted and limited.

Role of Ethics in Management

Ethical management in the WORKPLACE

Ethical management is the foundation of CSR in the workplace which protects the
employer-employee relationship such as the rights and obligations justly owed between
them.

Ethical management regarding INTELLECTUAL PROPERTY RIGHTS

● Allows certain intangible products to be handled in a similar fashion to physical

Products
● Society wants, and needs, individuals to invest time and energy in creating new
products and services
● Allowing individuals to receive financial reward is one way to do this

GEE- THE ENTREPRENEURIAL MIND 27

Three basic types of protection:
● Copyright – Provides limited protection to safeguard against the copying and
selling of IP
● Trade Secrecy – Provides protection through the lack of public knowledge
● Patent – Provides a monopolistic protection over certain limited categories of IP

Ethical management in SALES, ADVERTISING, AND MARKETING

This deals with the issues on pricing and price fixing, moral dimension of anti-trust or
anti-cartel law, viral marketing.

Ethical management in PRODUCTION

Deals with the duties and responsibilities of the company with regards to their products
and ensure that production processes do not cause harm.

Ethical management in FINANCE, ACCOUNTING, and AUDITING

Deals with the responsibilities of the companies to make sure that the company’s
financial statements are just and is not manipulated.

Corporate Social Responsibility is the action. It is a concept wherein businesses

interact with its stakeholders by responding to its needs and providing projects that will
have long term benefits. According to Pope John Paul II in 1987 in the document, Rei
Socialis, “When a business does not attempt to see a rigorous respect for the moral,
cultural, and spiritual requirements, based on the dignity of the person and on the
proper identity of each community… then all the rest (availability of goods, abundance
of technical resources applied to daily life, a certain level of material well-being) will
prove unsatisfactory and in the end contemptible.

Evolution of ethics and corporate social responsibility

Here are the main purpose of Business Ethics and Corporate Social Responsibility:
1. Profit Maximization
2. Comply with laws and regulations
3. Conform to ethical requirements
4. Institutionalizing corporate service responsibility

GEE- THE ENTREPRENEURIAL MIND 28

 Figure I. Stakeholder Theory
It deals with the ethical duty of the corporation towards stakeholders and stakeholder analysis
does not involve the corporation actually fulfilling the duty. This occurs when the business
organization actually does take the interests of the stakeholders into account.

PRACTICE:

Students will revisit its business plan strategies and check if all of them are in
accordance to the social and ethical responsibilities of business organizations.

PERFORMANCE:

Enrichment Activity
(e.g., homework assignment)

Writing of Operations and Staffing Procedures and Policies

Students will research on sample operations and staffing procedures and
policies of successful businesses and check if there were ethical issues face by those
companies. On the other hand, students will draft CSR engagements affecting the
environment, people, workplace, and the society.

GEE- THE ENTREPRENEURIAL MIND 29

 UNIT VII: ENTREPRENEURSHIP IN THE PHILIPPINES

INTRODUCTION:
Entrepreneurship has been described as the “capacity and willingness to
develop, organize and manage a business venture along with any of its risks in
order to make a profit” (www.businessdictionary.com).
In this Chapter, students will be inspired by these Filipino Entrepreneurs
and maybe one day, student may put their names in the list of the successful

GEE- THE ENTREPRENEURIAL MIND 30

 entrepreneurs in the Philippines. Be inspired to know the typical characteristics of
a Filipino Entrepreneur and recognize the impact and the value of
entrepreneurship to the Philippine Economy. Entrepreneurship is not all about
men, there are also women who made their spot to the successful
entrepreneurs, women, who made tremendous social change and an inspiration
to the young women to lead our society.

PREPARATION:
First activity.
Examine the picture and answer the questions below.

(photo taken from the internet, credits to the owner)

1. Which of these logos that is familiar to you? What kind of business do they offer?
_________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________.

2. Of all the logos, which do you think is the richest and most successful business?
Why?
_______________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
___________________________________________________________________________

PRESENTATION: Concept Notes

Entrepreneurship in the Philippines

GEE- THE ENTREPRENEURIAL MIND 31

 Prior to the outbreak of COVID-19, the Philippines was on track for
both economic growth and a reduction in poverty levels. In the past five years, Filipino
growth averaged around 6%, and it was expected to reach 7% this year. This would
surpass the growth rates of China, India and Indonesia
Now, with COVID-19, the Philippines’ growth
rate is expected to be around 3%. Poverty
rates have declined with the growth in the
economy. In 2012, 10.2% of the
population lived below the $1.90 poverty
line. In 2019, only 2.7% lived below the $1.90
poverty line. But, the Philippines’ poor have
suffered during the pandemic. Furthermore,
slowed economic growth could push more
into poverty. The Filipino government has
long promoted entrepreneurship as being a
major vehicle for lifting people out of poverty
(Photo not mine, credits to the owner)

Promoting Entrepreneurship in the Philippines

In the Philippines, entrepreneurship is viewed as important to empowering

the poor, enhancing production, and as an impetus to innovation. The 1987
Philippine Constitution recognizes entrepreneurship as an engine of economic
growth. Article XII Section 1 highlights the role of private enterprises in
supporting equitable distribution of income and wealth, sustaining production of
goods and services and expanding productivity, therefore raising the quality of
life.
The Philippine Development Plan
(PDP) further reinforces the thrust
on entrepreneurship through trade
and investment to achieve the
government’s goal of economic
development and job creation. Based
on the plan, measures for
macro-economic stability,
employment, trade and investment,
agribusiness, power-sector reforms, infrastructure, competition, science and
technology, and anti-corruption are being pursued to strengthen Philippines’s
competitiveness and contribute to job creation. However, Researchers conducted
a study that showed that entrepreneurship in the Philippines increased the
probability that a Filipino household could move from being poor to
non-poor from 2008 to 2011. Entrepreneurship also decreased the probability of

GEE- THE ENTREPRENEURIAL MIND 32

 a Filipino household moving from being non-poor to poor in that same time
period. Additionally, the study concluded that entrepreneurship is an effective
and important way to alleviate poverty in the Philippines. It advised the Filipino
government to promote entrepreneurship.
In 2011, there were approximately 830,000 business enterprises in the
Philippines. Of these, 99.6 percent are classified as micro, small, and
medium-sized enterprises (MSME) which are responsible for 38 percent of total
job growth. The 2019 List of Establishments of the Philippine Statistics Authority
(PSA) recorded a total of 1,000,506 business enterprises operating in the
country. Of these, 995,745 (99.5%) are MSMEs and 4,761 (0.5%) are large
enterprises. Micro enterprises constitute 89% (891,044) of total MSME
establishments, followed by small enterprises at 10% (99,936) and medium
enterprises at 0.5% (4,765). The top five (5) industry sectors according to the
number of MSMEs in 2019 were: (1) Wholesale and Retail Trade; Repair of Motor
Vehicles and Motorcycles (462,492); (2) Accommodation and Food Service
Activities (144,024); (3) Manufacturing (115,387); (4) Other Service Activities
(65,918); and (5) Financial and Insurance Activities (46,100). These industries
accounted for about 83.35% of the total number of MSME establishments.
Filipino entrepreneurs
The Philippine Global Entrepreneurship Monitor Report for 2006-2007 has
documented the profile of Filipino entrepreneurs (Madarang & Habito, 2007).
According to the report, 39.4% of Filipinos are engaged in entrepreneurial
activities. Fifty-two percent of these entrepreneurs are engaged in early stage
activity or in business between 3 months to 3.5 years. Forty-eight percent are
established businesses existing for more than 3.5 years. Businesses have an
average capital of P10,000.
A typical Filipino entrepreneur is male, married, 25-44 years old, high
school graduate, and comes from the
low-income group. They are driven by
necessity and more than half are engaged
in retail trade. There is very little
application of technology and minimal use
of innovation. Seventy percent are
engaged in businesses that do not
generate employment since the
entrepreneur assumes all the functions of
the business. Most of the businesses
employ less than four employees and very
few have 20 employees or more.

In addition, women also played an important role in making an impact to

the Philippine economy, women in the present can lead to a tremendous social

GEE- THE ENTREPRENEURIAL MIND 33

 change, making women financially empowered and independent. It increases the
level of confidence and happiness in women, if they are satisfied with the
outcome of their product and it will give them the achievement satisfaction and
overall well-being. Women turning to entrepreneurship due to accommodate the
needs of the family. Women are driven to give quality and excellent goods and
services to the consumers.
The report finds there were around 900,000 registered enterprises in the
Philippines in 2015. An estimated 10% of these businesses were classified as
small, and less than 1% were classified as medium. Less than 1% of businesses
in the country were classified as large, while the vast majority (90%) were
composed of micro enterprises. While SMEs have small organizations and thus
tend to employ fewer people, the collective contribution of SMEs to employment
in the country is significant. In 2015, SMEs accounted for around 32% of jobs in
the Philippines, whereas large enterprises accounted for only 38% of jobs in that
year.

The report defines Women’s SMEs as a business:

● where 51% of ownership is held by a woman or women; or
● where 20% of ownership is held by a woman or women, where a woman
holds a major leadership position (CEO/COO or president/vice president), and
where 30% of the board of directors is composed of women.
Based on available data, it is estimated that there are around 28,000
WSMEs in the Philippines, comprising around one in four of all SMEs in the
country. Research has shown that WSMEs tend to employ more women than
businesses run by men, therefore there is potential that increasing the number of
women entrepreneurs in the Philippines will have the added effect of increasing
the rate of paid employment amoncg women. Women who engaged in business
even though small, they lift up our economy.

Filipino entrepreneurship has very poor employment generation activity.

Business engagement is only done on a local basis and very few are engaged in
exportation. There is very little growth and long-term view of the business.
However, Filipino entrepreneurs see business opportunities and are highly
confident that they have the knowledge and skills needed to do business. Yet in
what seems to be a contradictory attitude, they fear failure and have a very low
tendency to take risks.

The present pool of Filipino entrepreneurs is driven by previous work

experience (37%), exposure to family business (29%), and education and formal
training (17%). Filipinos entering entrepreneurial activity as a means to support
the financial needs of the family accounts for 54% of entrepreneurial motivation.
Only 37% take advantage of a business opportunity. This is compounded by the
problems in doing business in the Philippines, as shown in Table 4. Corruption,

GEE- THE ENTREPRENEURIAL MIND 34

 inefficient government bureaucracy, and inadequate infrastructure have
discouraged people to enter into business, making them consider employment
more as a better source of livelihood. However, the good work ethics, low crime
and theft, more stable currency regulations and inflation, and health of the labor
work force can be seen as good resources that can counterbalance the difficulty
of doing business in the country.

Good work ethics may be measured through the Work-Life Balance using the following:
1. I am satisfied with the way
my time is divided between
work and private life.
2. I am satisfied with my ability
to balance the needs of my
work with those of my personal
or family life.
3. I am satisfied with the
opportunity to perform well at
work and to substantially
contribute to home-related
responsibilities at the same
time.

Name: __________________________________________Score: _______________

Course, Year and Section: ___________________________Date: _______________

Essay: Provide short and concise answers to the questions below.

1. Do entrepreneurs make an impact in the Philippine Economy? Why or Why not?

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
______________________________________________.
2. If you will be a Filipino Entrepreneur, what kind of business that you will create?
_____________________________________________________________________________________
_____________________________________________________________________________________

GEE- THE ENTREPRENEURIAL MIND 35

_____________________________________________________________________________________
______________________________________________.
3. How does Filipino entrepreneurs respond to Covid 19 Pandemic?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
______________________________________________.
4. Does entrepreneurship reduce poverty?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
______________________________________________.

Infographic Poster.
Create an infographic poster of at least 5 successful Filipino entrepreneurs.
Their Name and brief history of their business. Here’s a rubric for your reference.

Exceed Expectations Meet Expectations Does not meet Score

10 7 expectations.
5
Artwork The artwork is drawn The artwork lacks The artwork
(Creativity and creatively. With creativeness. With does not show
Design) precise design and minimal effort on creativity
vibrant colors. Effort the design and use
is evident. of colors.
Explanation Explains Topic was not Could not
(Content and comprehensively with explained explain the
composition) correct grammatical comprehensively topic.
structure. with 1 or two
mistakes on the
grammatical
structure
Originality and Was able to relate the Was not able to Could not relate
relativity to the topic. thoroughly relate the topic.
topic. the topic
TOTAL
SCORE

GEE- THE ENTREPRENEURIAL MIND 36

● https://www.borgenmagazine.com/entrepreneurship-in-the-philippines/
● https://www.dti.gov.ph/resources/msme-statistics/
● https://www.dlsu.edu.ph/wp-content/uploads/2019/10/1_VELASCO.VOL_.22.2.pdf
● https://www.cipe.org/resources/entrepreneurship-philippines-opportunities-challenges-inclusiv
e -growth/
● https://investinginwomen.asia/knowledge/university-sydney-july-2017-women-entrepreneurshi
p-philippines/

UNIT VIII: Internal and External Analysis

GEE- THE ENTREPRENEURIAL MIND 37

 PREPARATION:

Read and analyze the phrase:

“STRENGHT BECOME WEAKNESS,

WEAKNESS BECOME STRENGHT,
OPPORTUNITIES BECOME THREATS,
THREAT BECOME OPPORTUNITIES.”

PRESENTATION:

How to Conduct a Thorough Internal Analysis

Creating a business strategy requires research into and the
assessment of internal and external factors that impact the company. Specifically, an
internal analysis can help businesses establish areas for growth and competitive
advantage. Conducting an internal analysis requires extensive knowledge of the
interworking of the company. In this article, we explain what an internal analysis is, why
it's important and how to perform one.

What is an internal analysis?

● An internal analysis is the thorough examination of a company's internal

components, both tangible and intangible, such as resources, assets and
processes.
● An internal analysis helps the company decision-makers accurately identify
areas for growth or revision to form a practical business strategy or business
plan.

GEE- THE ENTREPRENEURIAL MIND 38

 ● Often, those creating the company's business strategy pair an internal
analysis with an external analysis to create a full picture of how the company
functions both as an individual entity and as a part of the larger competitive
industry.

Companies can choose from a variety of frameworks for conducting an

internal analysis. Each uses slightly different tools, strategies, and objectives to
identify key information about the internal processes, resources and structures of
the business. A few of the most common examples of internal analysis frameworks
include:

● Gap analysis: A gap analysis identifies the gap between a business goal and
the current state of operations. Companies use gap analyses when they need
to identify weaknesses in the business.
● Strategy evaluation: A strategy evaluation is an ongoing internal
assessment tool used at regular intervals to establish if a company is meeting
its objectives as outlined in a business strategy or plan.
● SWOT analysis: A SWOT (Strengths, Weaknesses, Opportunities and
Threats) analysis helps to give companies a broad overview of all internal
functions. SWOT analyses are ideal for evaluating the full range of a
company's abilities.
● VRIO analysis: A VRIO (Valuable, Rare, Inimitable and Organized) analysis
helps organize business resources. It is ideal for assessing and categorizing a
company's resources.
● OCAT: An OCAT (Organizational Capacity Assessment Tool) assesses internal
performance in a variety of specific dimensions. Companies can use the OCAT
to establish specific areas of strength or growth.
● McKinsey 7S framework: The seven S's are strategy, structure, systems,
shared values, skills, style, and staff. The McKinsey 7S framework ensures
that businesses align these seven elements for maximum success.
● Core competencies analysis: The core competencies analysis identifies the
unique combination of qualities that separates the business from competitors.
It is best used when determining ways to improve business operations over a
direct competitor.

Why is an internal analysis important?

Internal analysis help business leaders identify ways in which they can
improve company functions. A few of the most important reasons to conduct an
internal analysis include identifying:

GEE- THE ENTREPRENEURIAL MIND 39

 ● Company strengths
● Structural weaknesses
● Business opportunities
● Possible threats
● Viability in the marketplace

The SWOT analysis is a basic straightforward model in environmental

scanning which helps the company in identifying four key elements: Strengths,
Weaknesses Opportunities, and Threats.

Strengths

An organization’s strengths are internal characteristics that can give it an

advantage over competitors. Evaluating organizational strengths usually involves
assessing current management, resources, and manpower and marketing
objectives. Generally, internal analysis examines an organization’s available
resources and core competencies. Determining the organization’s capabilities
helps its leaders make long-term plans and sound decisions. Other factors
included in an internal analysis include taking a look at the organization’s
financial goals and strategic-planning initiatives, in addition to its exceptional
strengths. Offering high-quality products or services, building a solid reputation,
maintaining strong financial health and investing in new technologies are some
of the strong points an organization can focus on developing in order to improve
its position within an industry. Efficient delivery of products or services and
providing excellence of customer service are other positive factors.

Weaknesses

An organization’s weaknesses are another example of internal

characteristics that can affect its operations and level of performance. Identifying
weaknesses helps an organization spot problems so that it can make the
necessary changes. This strategy allows decision makers to develop other more
appropriate alternatives in their strategic-planning objectives when operations fail
to perform as projected. Weaknesses may include poor leadership, low employee
morale, weak financials, low cash flow, outdated technology and inefficient
organizational functions or processes. One example of converting a weakness
into a strength might be how an organization that lacks adequate financial
resources works to control costs in order to develop a more competitive
advantage.

Opportunities

GEE- THE ENTREPRENEURIAL MIND 40

 In general, external organizational analysis weighs the potential
opportunities and threats that are present outside of the organization. External
analysis may include market analysis, sizing up the competition and evaluating
the impact of new technological advances. When assessing opportunities in the
external environment, organizations must set out to identify current market and
industry trends, potential niche markets and the weaknesses of major
competitors. An organization should also consider recent developments in
technology as vehicles of opportunity. Innovation is a key to creating new
opportunities; therefore, an organization that succeeds in setting itself apart from
others has the chance to develop a strong competitive position in the industry. In
order to achieve this success, an organization must offer something different that
its chief competitors are unable to provide -- something better than the standard.

Threats

External risks aren’t always bad for an organization. For example, the
labor market can pose either a potential threat or an opportunity depending on
the state of the local, national and global economies. Legislation and government
regulation are other factors that can have an effect on how well an organization
performs. Whatever the case, the goal of an organization striving to succeed is to
reduce the impact of external threats and work on improving its internal
weaknesses. Organizations must be able to adapt and keep pace with the
constant changes that occur in the environment outside of the organization.

Viability in the marketplace

One of the most valuable benefits of an internal analysis is finding a

specific niche within the larger market to set the company apart from
competitors. Often, this is the long-term goal of conducting an internal analysis.

How to conduct an internal analysis

Follow these steps to perform an effective internal analysis and improve

company functionality:

1. Set your objective.

2. Choose a framework.
3. Conduct research.
4. Follow the framework.
5. Set your priorities.
6. Apply the findings

1. Set your objective

GEE- THE ENTREPRENEURIAL MIND 41

 Start your internal analysis by establishing a goal or reason for performing
an internal analysis. For example, an objective might be to find new, creative
business opportunities. Another might be to decrease internal expenses.
Establishing what you hope to learn from the internal analysis before beginning
should help you gather the most useful data during the analysis.

2. Choose a framework

Decide which internal analysis framework you want to use. Some

frameworks are better at identifying internal deficiencies while others focus on
the development of the company or its internal structures. Review the possible
frameworks and select one that meets the needs of your company and will help
you reach your objective.

3. Conduct research

Gather information from all internal sources regarding resources,

competencies and areas for growth. Research might include employee
interviews, a review of company financials and assessments of physical
equipment.

4. Follow the framework.

Use the selected framework to parse the data. For example, if you are
using SWOT analysis, create four separate lists using each of the SWOT elements
as a heading. Identify strengths, weaknesses, opportunities, and threats from
your research and list them systematically.

5. Set your priorities.

Review the completed framework and compare your findings to your

original objective. Find data that helps you reach a decision to meet your
objective. For example, if your objective was to increase technological
capabilities, see what equipment needs updating, what employees thought might
work better for their jobs and what resources exist to meet those needs.

6. Apply the findings.

GEE- THE ENTREPRENEURIAL MIND 42

 Take the findings and implement a plan to meet the objective. Using the
same example as step five, replace the out-of-date equipment with new
machinery. Offer training to ensure employees use the new asset appropriately
and to its maximum advantage.

External Analysis

External analysis means examining the industry environment of a

company, including factors such as competitive structure, competitive position,
dynamics and history. On a macro scale, external analysis includes
macroeconomic, global, political, social, demographic and technological analysis.
The primary purpose of external analysis is to determine the opportunities and
threats in an industry or any segment that will drive profitability, growth, and
volatility.

Key Terms in External Analysis

To begin the discussion on external analysis, we must define two terms:

● Industry is a group of companies offering products or services that are

close substitutes for each other. Examples of an industry include soft
drinks, mobile phones, and sportswear.
● Market segments are distinct groups of customers within a market that
can be differentiated from each other based on individual attributes and
specific demands. Market segments can be separated by characteristics
such as geography, demography, and behavior.

Consider the supply chain for a smartphone. Raw materials such as glass,
lithium, and aluminum are obtained from the suppliers. Manufacturers take these
raw materials and build smartphones at plants. The completed phones are then
distributed and sold at a retail locations(malls and other gadget store). The
phones are sold to consumers from these retail locations.

GEE- THE ENTREPRENEURIAL MIND 43

Supply Chain for e-Commerce

The supply chain for e-Commerce companies differs from the traditional
supply chain of brick and mortar stores. As the following graphic shows, we
begin with the e-Commerce domain. Consumers select the products they want to
purchase, and the payment is dealt with through a third-party payment manager
(e.g., PayPal). The selected products are moved to a warehouse wherein they are
prepared for shipping. The products are shipped to customers who return to the
same site and continue the cycle again. This is the common supply chain cycle
for e-Commerce companies such as Amazon or Alibaba.

Strategic Groups

Strategic groups within an industry can be identified by factors such as:

● Choice of distribution channels

● Market segments
● Level of product quality
● Technological leadership
● The degree of vertical integration
● Pricing policy

A strategic group exists if the performance of a firm in an industry group

is a function of group characteristics, controlling firm and industry characteristics.
Customers tend to view products of companies in the same strategic group as
direct substitutes for each other (Coke vs. Pepsi). Different strategic groups can
have different relationships with each of the competitive forces. Thus, each
strategic group may face a different set of opportunities and threats.

An initial step to identifying strategic groups is to build a strategic group

map. A strategic group map plots clusters of rivals in a two-dimensional matrix
using strategically relevant dimensions, which help identify the most probable
competitively relevant companies. It is also useful for realizing mobility barriers
that inhibit the repositioning of firms within industries from one strategic group
to another.

Competitive Analysis

We now move into a competitive analysis of the industry. Market structure

and competitive environment are defining factors in the future success of a

GEE- THE ENTREPRENEURIAL MIND 44

 business. There are six key factors that determine the level of competition in an
industry:

1. Intensity of industry rivalry

It measures the level of concentrations of rivals. Factors to determine the

intensity of industry rivalry include product homogeneity, brand loyalty, and
consumer switching costs.

2. Threat of potential entrants (Barriers to entry)

It measures the difficulty for newcomers to enter the industry. Factors to

determine barriers to entry include brand loyalty, excess production capacity, and
government regulation.

3. Bargaining power of buyers

This measures how much power consumers have in determining the

prevailing price in a market. Buyers’ bargaining power is high when buyers are
large and concentrated, and buyers’ price sensitivity is high when there are many
industry competitors and substitutes.

4. Bargaining power of suppliers

This measures how much a supplier of materials is able to restrict the

company’s business strategy. The bargaining power of suppliers is high when
suppliers are large or concentrated. Purchasers’ price inelasticity is high when
there are few alternative suppliers and when there are few substitute inputs.

5. Threat of substitute goods/services

This measures the chances that competing goods of a similar nature will
threaten a company’s offerings. It is more likely to occur when switching costs
are low or when substitutes offer superior price to performance characteristics.

6. Power of complementary good/service providers

It measures the level of impact of companies that produce complementary

products. Complements add value to products in an industry. If complements are
weak and unattractive they can become a threat that slows industry growth and
limits profitability.

PEST Analysis

GEE- THE ENTREPRENEURIAL MIND 45

 To round off external analysis, a company must conduct an examination of
the Political, Economic, Social, and Technological landscape of the industry,
otherwise known as a PEST analysis.

● Political: Issues such as international trade barriers and regulatory

environment change.
● Economic: Issues such as interest rates, exchange rates, and inflation.
● Socio-demographic (Social): Issues such as population and age cohort
changes.
● Technological: Issues such as scientific advances, R&D investment, and
emerging technologies.

The main purpose of PEST analysis is to test for any major external shifts in the
industry. Business plans and strategies need to be updated to conform to prevailing
industry trends.

PRACTICE:

PERFORMANCE:

In the following type of store, conduct a market analysis by observing the

behavior of customers including the flow of customers, the market structure. (Choose
only 1)
a. an apparel boutique
b. A fast-food chain
c. Service provider
d. Drugstore or bookstore
e. a shoes and bags boutique
f. Computer shop

GEE- THE ENTREPRENEURIAL MIND 46

UNIT IX - IDEATION STRATEGIES AND DEVELOPMENT INTO A BUSINESS
IDEA

Image: https://bit.ly/3s4epN8

PREPARATION:

Watch the video entitled: “Innovative Products in the Philippines”

https://www.youtube.com/watch?v=IHaOPbz3u1w

Have you ever thought in creating your own product?

In this chapter, we will tackle about identifying opportunities, germinating

ideas and innovating products on how to be a successful entrepreneur.

PRESENTATION:

OPPORTUNITIES IDENTIFICATION

GEE- THE ENTREPRENEURIAL MIND 47

 It is an effective tool to steer numerous ideas from a broad range of
perspectives before we consider them worthy of being an opportunity to be
taken forward.

The process uses a series of self-assessment questions, called screens or

cuts to enrich a series of ideas to increasingly high-potential opportunities. If the
idea “fails” to pass the screen it is set aside from further consideration. It is not
discarded because, as we will see later, it may have a bearing on another idea
that is moving forward

Opportunity identification process enables groups or individuals to screen

a large volume of ideas quickly and methodically.

The process identifies high-potential ideas to rise by allowing weak ideas

to fail quickly and inexpensively, on paper instead of in the lab or the real world.

To be successful entrepreneurs, we need to be continually innovating and

looking for opportunities to grow our startups. But how do you find new
opportunities to take your startup to new markets and growth levels?

Here are four ways to identify more business opportunities.

1. Listen to your potential clients and past leads

When you’re targeting potential customers listen to their needs, wants,
challenges and frustrations with your industry. Have they used similar products
and services before? What did they like and dislike? Why did they come to you?
What are their objections to your products or services?

This will help you to find opportunities to develop more tailored products
and services, hone your target market and identify and overcome common
objections.

2. Listen to your customers

When you’re talking to your customers listen to what they saying about
your industry, products and services. What are their frequently asked questions?
Experiences? Frustrations? Feedback and complaints?
This valuable customer information will help you identify key business
opportunities to expand and develop your current products and services.

3. Look at your competitors

Do a little competitive analysis (don’t let it lead to competitive paralysis
though) to see what other startups are doing, and more importantly, not doing?

GEE- THE ENTREPRENEURIAL MIND 48

 Where are they falling down? What are they doing right? What makes customers
go to them over you?

Analyzing your competitors will help you identify key business

opportunities to expand your market reach and develop your products and
services.

4. Look at industry trends and insights

Subscribe to industry publications, join relevant associations, set Google
alerts for key industry terms and news and follow other industry experts on
social media.

Absorb yourself in your industry and continually educate yourself on the

latest techniques and trends.

IDEAS GERMINATION

This is the seeding stage of a new idea. It is the stage where the
entrepreneur recognizes that an opportunity exists which can be explored and
exploited to its best potential.

PRODUCT INNOVATION

It is the development of new products, changes in design of established

products, or use of new materials or components in the manufacture of
established products. Numerous examples of product innovation include
introducing new products, enhanced quality and improving its overall
performance.

Product innovation, alongside cost-cutting innovation and

process innovation are three different classifications of innovation which aim
to develop a company's production methods.

Thus product innovation can be divided into two categories of innovation:

● Radical innovation which aims at developing a new product

● Incremental innovation which aims at improving existing

products.

Advantages and disadvantages

● Advantages of product innovation include:

GEE- THE ENTREPRENEURIAL MIND 49

1. Growth, expansion and gaining a competitive advantage
A business that is capable of differentiating their product from other
businesses in the same industry to large extent will be able to reap profits. This
can be applied to how smaller businesses can use product innovation to better
differentiate their product from others. Product differentiation can be defined as
"A marketing process that showcases the differences between products.
Differentiation looks to make a product more attractive by contrasting its unique
qualities with other competing products. Successful product differentiation
creates a competitive advantage for the seller, as customers view these products
as unique or superior." Therefore, small businesses that are able to utilize
product innovation effectively will be able to expand and grow into larger
businesses, while gaining a competitive advantage over its remaining
competitors.

2. Brand switching
Businesses that once again are able to successfully utilize product
innovation will thus entice customers from rival brands to buy its product instead
as it becomes more attractive to the customer. One example of successful
product innovation that have led to brand switching are the introduction of
the iPhone to the mobile phone industry (which has caused mobile phone users
to switch from Nokia, Motorola, Sony Ericsson, etc. to the Apple iPhone).

● Disadvantages of product innovation include:

1. Counter effect of product innovation

Not all businesses/competitors do not always create products/resources
from scratch, but rather substitute different resources to create productive
innovation and this could have an opposite effect of what the business/
competitor is trying to do. Thus, some of these businesses/ competitors could be
driven out of the industry and will not last long enough to enhance their product
during their time in the industry.

2. High costs and high risk of failure

When a business attempts to innovate its product, it injects much capital
and time into it, which requires severe experimentation. Constant
experimentation could result in failure for the business and will also cause the
business to incur significantly higher costs. Furthermore, it could take years for a
business to successfully innovate a product, thus resulting in an uncertain return.

3. Disrupting the outside world

For product innovation to occur, the business will have to change the way
it runs, and this could lead to the breaking down of relationships between the
business and its customers, suppliers and business partners. In addition,

GEE- THE ENTREPRENEURIAL MIND 50

changing too much of a business's product could lead to the business gaining a
less reputable image due to a loss of credibility and consistency.

These are the few stages that a business has to undergo when
introducing a new product line into the market:

1. Market research
This can be done in the form of primary and secondary market research
where the business will gather as much information as possible about the
present tastes and preferences of its potential consumers, and the gaps filled in
the business's particular industry. Secondary market research involves gathering
data that has already been collected by another party, and is primarily based on
information that has been founded from previous studies. One advantage of
secondary market research over primary market research is that it is low-cost,
thus enabling the business to be able to invest its time into other more important
matters and new potential business ventures. Primary market research involves
the business gathering data individually, and this can be done via
various sampling methods. Other forms of primary market research include focus
groups, interviews, questionnaires, etc.
One advantage of primary market research over secondary market
research is that it delivers much more specific results than secondary market
research, and is only available to the business itself, rather than secondary
research which is made globally available, as data has already been collected.

2. Product development and testing

This stage involves creating a test product called a prototype. The
prototype ensures the business that its product is functioning properly, and all
the necessary arrangements are made to enhance the product as much as
possible. After the prototype has been devised, the business can now use test
marketing where the business introduces a product to a small group of
individuals to give the company insight into the effectiveness of the product from
the views of their potential customers.

3. Feasibility study
The business will now look at the legal and financial restrictions of
launching the product into the market. This is where the business will
create sales forecasts, establish the price of the product, the overall costs of
production and profitability estimates. The business also has to consider legal
aspects in terms of safety and Intellectual Property Rights (IPR).

After all these stages have been successfully run through, then the
business can officially launch the product.

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 BUSINESS NICHE
(NICHE)

What is a business niche?

A business niche is a specialized or focused area of a broader market that your

business serves specifically. According to Charlene Walters, business and branding
mentor and author of Own Your Other, finding a niche differentiates your business from
the competition and allows you to excel in your sector.

"[A business niche] is a hole in the current market where the business's USP
(unique selling proposition) will be appreciated by a select group of customers, or target
audience," Walters told Business News Daily. "This target audience might be one that is
currently underserved and/or has a large market potential."

Finding a niche is important for small business owners who want to not only
create a steady stream of revenue, but also establish a loyal audience. Walters said that
a solid market niche helps to ensure that a particular group of customers will want to
buy from your business, instead of going to the competition.

Matt Woodley is an online entrepreneur who founded MoverFocus.com, which

caters to the international moving niche. He said that creating a business in a niche
market sometimes gives entrepreneurs the ability to charge higher rates for their
products or services. The supply and demand ratio, especially for those pioneering a
new industry sector, can be extremely lucrative and gives you the chance to become the
expert and thought leader in your field.

What is an example of a niche market?

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 There are several niche markets within every industry. If you think of a very
specific product that serves one of your unique needs, it can probably be classified as a
niche business idea. Walters mentioned the example of professional, wrinkle-free
clothing: If a clothing company wanted to target executive women who travel
frequently, it would make sense to have a line of wrinkle-free clothing to serve that
specific need.

When asked about a profitable niche business, Woodley referred to Diapers.com

and explained how it served a large niche market to become successful. "Many niche
businesses that fill a hole in the market no one previously recognized quickly come to
be considered essential. For instance, a diaper delivery service in New Jersey provided
parents of infants with a convenient, affordable service that many came to rely on.
Diapers.com eventually sold to Amazon for $545 million."

What is a niche strategy?

Now that you know what a niche market is, how do you create a business niche for
your company? We spoke with Walters and Woodley to create a five-step niche strategy
for entrepreneurs to follow.
1. Select your target audience. To identify your niche, you can begin by
selecting the general market. Woodley said a good approach is to focus on an
area where you are knowledgeable, and then identify subtopics within that.
2. Define an unmet or underserved need. Analyze your target audience and
identify gaps in the marketplace. Walters said your products or services should
soothe a pain point that your audience is currently experiencing. Choose a sector
that also has anticipated growth.
3. Research your customer base. Walters and Woodley both emphasized
researching your target audience to understand their needs, goals, motivations,
frustrations and expectations. Walters said that getting your audience involved as
early as MVP (minimum viable product) development is essential; although this is
something you should do at the start of your business, you should also perform
regular maintenance checks to reassess your customer base and competition.
4. Create your business plan. Woodley said to create a plan in which you define
exactly what you'll provide and the need it will meet, describe your ideal
customer, and decide on a pricing model. Fine-tune your business idea to reflect
what you've learned about your target audience.
5. Market your business to your specific audience. Just as your product or
service is niche, your marketing efforts should be focused as well. Woodley said
that targeted ads, blog posts and podcasts are invaluable tools for getting your
message out to people likely to be interested in your niche business idea. For
example, Woodley said a targeted marketing strategy for a small business selling
vegan baked goods would be to appear on a podcast or local radio show
dedicated to healthy eating.

GEE- THE ENTREPRENEURIAL MIND 53

 These steps can help you successfully serve your target audience. "This hard work,
good customer service, and the willingness to periodically reassess your business's
market will put you well on the way to running a successful niche business," said
Woodley.

How do you identify and dominate a business niche market?

Experts said there are a few key consumer elements that entrepreneurs should
consider when trying to identify and dominate a niche market. Look for the following
characteristics in your potential market audience.

1. Easily identifiable customers

Potential customers who are easy to see are a hallmark of a great business niche.
Jerry Rackley, chief analyst at marketing research and advisory firm Demand
Metric, said it should be easy to identify who would do business with you based on
a set of reliable characteristics. "If you can't put your ideal customers into an
identifiable segment, your business plan is a no-go."

2. Easily accessible customers

For a business niche to be profitable, your potential customers must also be
accessible, and accessing them must be affordable, Rackley said. Otherwise, your
great idea will be dead in the water. "For example, I might develop an ideal
solution for nomadic goatherders in Outer Mongolia, but I have no way of reaching
them with information about my solution," Rackley said. "Lack of accessibility is
also a business plan no-go."

3. An underserved or neglected market

Many markets become oversaturated with small businesses or startups eager to
get in on the action. But for a business niche to really stand out, it should be
underserved or even neglected, said Cody McLain, CEO and founder
of WireFuseMedia and productivity podcast MindHack.
"In my experiences with hosting companies, there are often underserved or
completely neglected markets, as well as markets that are being poorly served,"
said McLain, who suggests researching these markets in your industry as potential
niches. "For example, in web hosting, you can use Google Analytics and AdWords
to find searches that are not returning results to find markets or groups whose
needs are not being met. Another way to find your niche is to search consumer
ratings indexes and sites to find areas with poor customer service."

4. A large potential market

For your business to be profitable, your market and niche must be large enough
that you can make money selling your products and services.

GEE- THE ENTREPRENEURIAL MIND 54

 "In addition to identifying and accessing potential customers, there has to be
enough of them," Rackley said. "The potential market for any business must have
the size and mass to warrant the investment to enter that market."
Rackley gave the example of "a great solution for any human who has ever walked
on the surface of the moon." While it might be easy to identify and even gain
access to moonwalkers, currently there just aren't enough of them to qualify this
as a great business niche. A small pool of potential customers means little or no
growth potential, which is another critical characteristic of a profitable business
niche.

WEB SOURCES:
https://bit.ly/3DV3XOA
https://bit.ly/2X0dgvy
https://bit.ly/38J4LHV
https://bit.ly/38MbYHi
https://bit.ly/3zSc2kH

PRACTICE:

Name : ____________________________________________ Date : __________

Course, Yr. & Section: ____________________________________ Score : __________

I. A. Direction: Write the correct answer that is being referred to in the following:

1. It is a process that enables groups or individuals to screen a large volume of ideas

quickly and methodically.
Answer: _________________
2. You give your ears in listening to their experiences, frustrations, feedback and
complaints.
Answer: _________________
3. You give your ears in listening to their needs, wants, challenges and frustrations with
your industry.
Answer: _________________
4. You join relevant associations, set Google alerts for key industry terms and news and
follow other industry experts on social media.
Answer: _________________
5. It is the stage where the entrepreneur recognizes that an opportunity exists which can
be explored and exploited to its best potential.
Answer: _________________
6. A product innovation that aims in improving existing products.
Answer: _________________

GEE- THE ENTREPRENEURIAL MIND 55

 7. The business will have to change the way it runs, and this could lead to the breaking
down of relationships between the business and its customers, suppliers and business
partners.
Answer: _________________
8. This can be applied to how smaller businesses can use product innovation to better
differentiate their product from others.
Answer: _________________
9. Involves gathering data that has already been collected by another party.
Answer: _________________

10. This is where the business will create sales forecasts, establish the price of the
product, the overall costs of production and profitability estimates.
Answer: _________________

B. Direction: Answer briefly and concisely.

1. What is a business niche?

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
2. How do you identify and dominate a business niche market?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

II. Based on the video entitled: “Innovative Products in the Philippines”, what are the
products has been shown as a result of innovation?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

GEE- THE ENTREPRENEURIAL MIND 56

PERFROMANCE

A Product Innovation Through Video Presentation

Name : ____________________________________________ Date : __________

Course, Yr. & Section: ____________________________________ Score : __________

Choose a product that you have seen anywhere. Based on your chosen product, you have
to innovate it and present it through video presentation that will attract, encourage and
convince people to buy your product and not the existing one. You will be graded based on a
rubric as follows:
RUBRIC
CONCEPT SCORE
The video clearly demonstrates a key concept. 4
The video demonstrates key concepts. 3
The video demonstrates a previous concept. 2
The video does not demonstrate a clear concept. 1
DESIGN

GEE- THE ENTREPRENEURIAL MIND 57

The quality and materials in the video are very well organized and understandable. 4
The quality and materials in the video adequately organized and somewhat clear. 3
The quality and materials in the video lacked some organization and 50% clear. 2
The quality and materials in the video are not organized and lack clarity. 1
SPEED
The output is submitted before the agreed deadline. 4
The output is submitted on time. 3
The output is submitted 1- 3days after the agreed deadline. 2
The output is submitted 4 days & more after the agreed deadline. 1
ORIGINALITY
The product shows great originality. The ideas are creative and witty. 4
The product shows certain originality. It shows the use of new ideas and of shrewdness. 3
He/she uses ideas from other people (quoting them), but there is little evidence of
2
original ideas.
He/she uses ideas from other people without quoting them. 1
FINAL PRODUCT
Final product looks professional and the concepts were visibly demonstrated. 4
Final product looks decent and the concepts were somewhat demonstrated. 3
Final product l required more revisions and the concepts were not clearly demonstrated. 2
Final product looks unrefined and the concepts were not demonstrated. 1
TOTAL 20

Legend:
4 - Excellent
3 - Very Satisfactory
2 - Satisfactory
1 - Needs Improvement

GEE- THE ENTREPRENEURIAL MIND 58

UNIT X: MANAGEMENT FUNCTIONS

GEE- THE ENTREPRENEURIAL MIND 59

 https://startupknock.com/functions-of-an-entrepreneur/

PREPARATION:

First Activity: Role playing:

A scenario during a business meeting. Example: Business Lunch meeting
with different department heads of a certain company. (Time limit 5minutes per
group)
After the presentation, let the students identify the role of each character and
explain.

PRESENTATION:

1.The entrepreneurial functions of an entrepreneur are essential functions performed to

initiate a venture and growing it smoothly.

It involves, taking the initiative of starting up, bearing all he risks

involved, bringing innovation, making decisions and organization building.

2. Managerial functions of an entrepreneur represent the classification of a manager’s

job.
The managerial work divided into 8 parts, as, planning, organizing, staffing,
directing, controlling, leading, supervision, co-ordination.
A. Planning
Planning is the first step of the managerial function of an entrepreneur.

It is the predetermined strategic thinking process that involves selection of course

of action to achieve desired objectives.

B. Organizing
Organizing is the process of defining and classifying the activities of the
enterprise and setting up the authority relationships among them to achieve
objectives.
C. Staffing
Staffing is known as the propeller of any organization.

It is the most vital and complex activity among all managerial operations as the
performance of other managerial functions (planning, organizing, directing,
controlling) depends on the manpower which is available only through staffing
function.

GEE- THE ENTREPRENEURIAL MIND 60

 Thus, the staffing functions of an entrepreneur involves consolidating the
organizations grounding through the proper and effective selection, placement and
orientation, training and development, performance appraisal, promotion,
compensation, etc. of the personnel recruited for a particular position in the
enterprise.

The significance of staffing is very extensive as it helps in placing the right

person in the right place.
D. Directing
Directing is the process where entrepreneurs guide, instruct and oversee the
performance of the workers or employees to achieve organizational objectives.

It is the function that provides significance to the other managerial functions as without
proper directing a well-organized plan and effective manpower will be lost its flash.
E. Controlling
Controlling said to be the process of identifying whether the organization is
moving in the right direction and according to plan.

It assures that there is a successful and proficient use of organizational resources to

accomplish the preset objectives.

Most importantly, controlling is the methodical activity that measures the deviation of
actual performance from the planned performance and finds out the reasons to make it
right.
F. Leading
Leading is nothing but a choice to take responsibility.

The leading functions of an entrepreneur is all about forming a group of people

to achieve a common goal through proactive entrepreneurial behavior by optimizing
risk, taking responsibility and managing resources for the benefit of an organization.

G. Supervision
Supervision is the function of overseeing something or somebody.

Sometimes entrepreneurs have to act as a supervisor to overlook and ensure that the
deciding factors of production are working well.

Not only are the factors of production but overseeing the managers and
employee’s performance an exigent job entrepreneur for betterment and growth of the
organization.
H. Co-ordination

GEE- THE ENTREPRENEURIAL MIND 61

 Co-ordination is the function that assures that different departments, groups,
and people work together for more fruitful outcomes.

In an enterprise, several departments are working on the very same objectives

to achieve it.

As an entrepreneur, you have to coordinate different departments and factors of

production to produce a maximum result with minimum effort and expenses.

3. The promotional functions of an entrepreneur involves, discovering an idea, making a

business plan and assemble the requirement to achieve the objective.

4. The Commercial functions of an entrepreneur include 4 segments, as, production,

marketing, personnel, and accounting.

5. Financial functions of an entrepreneur concerned with the control and planning of

financial resources. In involves, financial planning, raising funds and managing money.

6. The social functions of an entrepreneur may not have a direct connection with
company’s growth but it plays a very important role in building trust, reputation and a
strong brand value.

Hence, the importance of social activities can’t be ignored at any aspect.

Social functions are all about solving potential community-based problems. It involves,
fixing problems and create jobs and community development.

Resources: https://startupknock.com/functions-of-an-entrepreneur/

https://www.slideshare.net/RovicMagpantay/managerial-functions-of-an-entrepreneur-16950
4195

PRACTICE:

Activity:
Based on the lesson presented, make a summary on the different management
functions of an entrepreneur and give your own concepts/ideas of each function.

PERFROMANCE:

GEE- THE ENTREPRENEURIAL MIND 62

Assume that you are a manager of a certain company. Make a good management plan
for the company to have an increase in their sales, the company more stable. Make it
creative.

UNIT XI: Organizational Structure

GEE- THE ENTREPRENEURIAL MIND 63

 entrepreneurshipsecret.com

Image: https://images.app.goo.gl/iaNPZqDqyvxPe1tG9

PREPARATION:

Present some pictures of the different CEO’s of the leading business international and
national/local companies.
Examples:
1. Henry Sy
2. John Gokongwei
3. Beverly M. Dayanan
4. Jacinda Ardern
5. Personal Collection
6. Kaiser International Health Group (the instructor may add some to the given list)
and let the students identify each picture and their product.

PRESENTATION:

An organizational structure is a system that outlines how certain activities are

directed in order to achieve the goals of an organization. These activities can include
rules, roles, and responsibilities. The organizational structure also determines how
information flows between levels within the company.

Organizational Structure Types

1) Hierarchical Structure
The hierarchical model is the most popular organizational chart type.
There are a few models that are derived from this model.
In a hierarchical organization structure, employees are grouped with every
employee having one clear supervisor. The grouping is done based on a few
factors, hence many models derived from this. Below are few of those factors

Function – employees are grouped according to the function they provide. The below
image shows a functional org chart with finance, technical, HR and admin groups.

GEE- THE ENTREPRENEURIAL MIND 64

Geography – employees are grouped based on their region. For example, in USA
employees might be grouped according to the state. If it’s a global company the
grouping could be done according to countries.
Product – If a company is producing multiple products or offering different services it
can be grouped according to the product or service.

This is the dominant mode of organization among large organizations. For

example, Corporations, Governments, and organized religions are
hierarchical organizations with different levels of management, power or
authority.

2) Matrix Structure

In a Matrix organizational structure, the reporting relationships are set up

as a grid, or matrix, rather than in the traditional hierarchy. It is a type of
organizational management in which people with similar skills are pooled for
work assignments, resulting in more than one manager to report to (sometimes
referred to as solid line and dotted line reports, in reference to traditional
business organization charts).

For example, all engineers may be in one engineering department and

report to an engineering manager. But these same engineers may be assigned to
different projects and might be reporting to those project managers as well.
Therefore, some engineers might have to work with multiple managers in their
job role.

3) Horizontal/Flat Structure

This is an organizational chart type mostly adopted by small companies

and start-ups in their early stage. It’s almost impossible to use this model for
larger companies with many projects and employees.

The most important thing about this structure is that many levels of middle
management are eliminated. This enables employees to make decisions quickly and
independently. Thus, a well-trained workforce can be more productive by directly
getting involved in the decision-making process.

This works well for small companies because work and effort in a small company
are relatively transparent. This does not mean that employees don’t have superiors and
people to report. Just that decision making power is shared and employees are held
accountable for their decisions.

GEE- THE ENTREPRENEURIAL MIND 65

4) Network Structure
Network organizational structure helps visualize both internal and external
relationships between managers and top-level management. They are not only
less hierarchical but are also more decentralized and more flexible than other
structures.

The idea behind the network structure is based on social networks. Its
structure relies on open communication and reliable partners; both internal and
external. The network structure is viewed as agiler than other structures because
it has few tires, more control and bottom flow of decision making.

Using a Network organizational structure is sometimes a disadvantage because

of its complexity.

5) Divisional Structure
Within a divisional type of organizational charts has its own division which
corresponds to either products or geographies. Each division contains the
necessary resources and functions needed to support the product line and
geography.

Another form of divisional org chart structure is the multi-divisional

structure. It’s also known as M-form. It’s a legit structure in which one parent
company owns several subsidiary companies, each of which uses the parent
company’s brand and name.

The main advantage of the divisional structure is the independent

operational flow, that failure of one company does not threaten the existence of
the others.

It’s not perfect either. There can be operational inefficiencies from

separating specialized functions. Increase in accounting taxes can be seen as
another disadvantage.

6) Line Organizational Structure

Line organizational structure is one of the simplest types of organizational

structures. Its authority flows from top to bottom. Unlike other structures,
specialized and supportive services do not take place in these organizations.

The chain of command and each department head has control over their
departments. The self-contained department structure can be seen as its main
characteristic. Independent decisions can be taken by line officers because of its
unified structure.

GEE- THE ENTREPRENEURIAL MIND 66

 The main advantage of a line organizational structure can be identified as
the effective communication that brings stability to the organization.

7) Team-based Organizational Structure

Team-based organizational structures are made of teams working towards

a common goal while working on their individual tasks. They are less hierarchical
and they have flexible structures that reinforce problem-solving, decision-making
and teamwork.

Team organization structures have changed the way many industries

work. Globalization has allowed people in all industries around the world to
produce goods and services cooperatively. Especially, manufacturing companies
must work together with the suppliers around the globe while keeping the cost
to a minimum while producing high-quality products.

https://creately.com/blog/diagrams/types-of-organizational-charts/

PRACTICE:

Activity: Identify the kind of organizational structure of the given business companies
1. Convergys
2. Personal Collection
3. DMCI Homes
4. Kaiser International Health Group
5. Gaisano Metro Retail Store
PERFROMANCE:

Chart: In a long- sized bond paper, choose one organizational structure base from
what we have discussed and make your own organizational structure on what you
envision your business to be. Explain your organizational structure/chart during the
synchronous class. Here’s a rubric for your reference.

GEE- THE ENTREPRENEURIAL MIND 67

 RUBRIC FOR THE GRADING

Exceed Meet Does not meet Score

Expectations Expectations expectations
15 10 5
Art work The artwork is The artwork lacks The art work
(creativity and drawn creatively. creativeness. With does not show
design) With precise design minimal effort on creativity.
and vibrant colors. the design and use
Effort is very of colors.
evident.
Explanation Explains Topic was not Could not explain
(content and comprehensively explained the topic.
composition) with correct comprehensively
grammatical with 1 or two
structure. mistakes on the
grammatical
structure.
Originality and Was able to relate Was not able to Could not relate
relativity to the topic to everyday thoroughly relate topic to everyday
situation. life. the topic to life.
everyday life.
TOTAL

UNIT XII: OPERATIONS PLANNING

GEE- THE ENTREPRENEURIAL MIND 68

 PREPARATION:
Lesson Preparation/ Review/Preview
Watch the following video presentation entitled “Operational planning process |
Commander W.M. Mooz | TEDxStLawrenceCollege” and ready for an oral recitation.

Link: https://www.youtube.com/watch?v=P6WKb8tT1oM

PRESENTATION:

Concept Notes Presentation

What is Operational Planning?

Operational planning is what happens when a team or department draws from a
company-wide strategic plan and puts it under a microscope. It’s future-oriented: it
maps out department budgets and goals to propel the success of the strategic plan with
specific, team-based activities for the next 1-3 years.

Operational plans work best when an entire department buys-in, assigning due
dates for tasks, measuring goals for success, reporting on issues and collaborating
effectively. They work even better when there’s communication across departments to
ensure that the whole machine is running smoothly as each team reaches its
benchmark.

What is an operations plan? In short, it lays out the who, what, when, and how
of your daily operations over the course of the next year. It is meant to define how
human, financial, and physical resources will be allocated to achieve short-term goals
that support your larger strategic objectives.

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How to Make an Operational Plan
Since operational plans are built in an effort to allocate funds, resources and staff
for each 1-3 year time period, all the steps that an operational plan needs to include
should ultimately serve that effort.

Visualize the Operational Plan

As with any project plan, it’s best to start with the vision. The main features of
an operational plan therein include tasks to achieve particular, clearly defined goals,
plus the management of your staff to ensure they’re functioning at optimum levels.
Identify your vision as it pertains to those levels, and then you can begin with the
research phase.

Research and Identify Goals

To start building out your operational plan, start by examining your goals. The goal of
an operational plan is to address five main questions:

Assign Budget and People

Once you’ve mapped out your goals, it’s important to note that the budget for
your operational plan comes from the yearly budget of your department. So, with that
said, the budget is the top line to consider as you begin to assign tasks, resources and
allocate budget for team members.

Report on the Operational Plan

Once you have mapped out your operational plan—which should include clear
objectives with deliverables, goals, timetables, and staff necessary to achieve the
plan—build out a process to report on all of it as the plan progresses.

Adjust the Operational Plan as Needed

Make adjustments, involve team members as needed, get buy-in from stakeholders and
continue to the next benchmark with your newly refined operational plan.

Strategic Planning vs. Operational Planning

Operational planning is to strategic planning as a marketing team is to an
organization—it is a part of a whole.

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Strategic planning encompasses those five questions listed above but exists on a
company-wide level to work cross-functionally. Strategic planning is the company’s
process of defining organizational goals, missions and values (including its long-term
direction) to better understand the resources and budget it needs to allocate to ensure
the plan’s efficacy. This can include defining which actions need to be taken to achieve
those goals from a high-level. It does not drill down any further than that—teams will
assign their own directions as part of the operational planning to make that higher-level
strategic plan succeed.

Operational planning is therefore built to support that effort with clear objectives for
each department. This includes defining the roles of each team member, the goals each
team has to better support the strategic plan of the organization and the budget and
resources it needs to make it happen. For example, the budget for your strategic plan
comes from your strategic budget, while your operational budget comes from your
team’s annual budget. As if that were not straightforward enough, everything you map
out for your operational plan will make everyone’s roles for the next year crystal clear.

PRACTICE:

Group Report

Instructions: Students will form groups of 3-5.

Each group will be asked to pick 3 advertisements brand in the TV, Billboard, apps,
radio, magazines, newspapers, movies, Internet, social media and more.
In their group report, they must answer the following questions:

1. In 3 advertisement that you choose what is the purpose of advertising?

2. What is the difference between products and strategies that are used to sell them?

Group Presentation (Using Odilo Zoom, Group Chat and Google Meet)

PERFORMANCE:

INDIVIDUAL ASSIGNMENT

Following these steps make a project or business plan.

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● Why? The project's strategic goals.
● What? The activities (or process), outputs, and deliverables.
● When? The deadlines and dependencies.
● How? The process or methodology.
● Who? The client and their team of stakeholder

UNIT XIII: MARKETING PLAN

PREPARATION:

Students will create a poster which specifies the different parts of the business
plan and an example of what information would be provided in each section. The
posters will be presented to the class.

PRESENTATION:

The definition of 'Marketing plan'

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 A marketing plan is a comprehensive document that outlines a company’s overall
marketing effort. It is a blueprint that outlines how a company will implement its
marketing strategy, and use a combination of resources to achieve business objectives
including sales targets or customer acquisition.
Due to the ever-changing environment and marketing tools that become
available, the modern day marketing plan tends to be relatively short in nature,
covering from one to a few years.

Determine your Marketing Strategy

Your marketing strategy should be revolving around the four Ps of marketing:

● Product
● Place
● Price
● Promotion
For that matter, for any marketing strategy to do well, all the 4Ps should be
absolutely in coordination with each other and should be consistent.

And these four certainly are the defining 4 points of your entire marketing
strategy. Every business has different requirements to do well and the 4Ps factors in all
of that. Each P needs to be thought out carefully. For example, don’t always assume
you have to spend money on costly advertising. Say, if you have a niche audience, you
can take advantage of low-cost marketing strategies such as e-mail, referral, and
networking.The bigger expenses are usually advertising, sales promotions and public
relations campaigns. Digital marketing is a powerful strategy because it is inexpensive
and effective in reaching target markets.

Create your Financial Plan

A Marketing Plan without financials has no way out. Try to create a budget and
sales forecast, keep it very simple and easy to understand but very efficient.

Ask yourself:

● How much do you expect to sell?

● What will it cost to produce your products or deliver services?
● What will be your basic operating expenses? Be sure to include recruitment costs and
salaries here?
● What will you be charging?

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● How much financing will you need to run your business?
These questions will help you determine your projected income and expenses,
which are also vital. A break-even analysis is another important step when you are
developing your marketing plan.This will help you understand just how much you need
to sell in order to cover your costs of operating your business. Overall, you can
determine your projected income and expenses.

Now, let’s go into what all needs to be covered in a Marketing Plan. I will give
you some homework where you will find an easy marketing plan step-by-step. Can you
apply it to your idea or a product/ services that you have already in use?

Marketing Plan Follow-Through Guide

1. Executive Summary – Short summary of main goals and recommendations so that

leadership/management team can get a quick idea of the key points.

0. Current Situation (or a 5C Analysis) – Overview of the market

● Market description – What is the market? Who is the market? What are the
trends?
● Environment – What is happening at a macro level and a micro level? What is the
potential impact to the business?
● Competitive review – Discuss both direct and indirect competitors. Include a
SWOT of main competitors along with their market position, sales, pricing,
distribution, marketing strategy and marketing programs.
● Channel and logistics review – Include sales team, partners, e-commerce,
referrals and delivery systems.
0. Product review – Include information about your offerings, sales, gross margin and
stage of the product lifecycle.
0. SWOT – Perform an assessment of your company’s strengths, weaknesses,
opportunities, and threats.

0. Objectives and Issues – In a given period of time (the one that the plan covers)
select the objectives and goals that your marketing must reach and spot any possible
issues.
1. Marketing Strategy – This is how your company plans to engage customers, deliver
value, create strong relationships and attain the business and marketing objectives.
● Positioning – What makes you distinctive in the mind of a customer? Would your
customer agree?
● Value proposition – Why would someone buy from you vs. a competitor?

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 ● Product Strategy – What is the roadmap (or future plan) for the product?
● Pricing – What is the pricing strategy (e.g. economy, luxury) and should it be
revised?
● Distribution – What channels are used to move the product through the supply
chain? Are there improvements or new channel opportunities?
● Marketing Communication Strategy
● Lead generation/Sales – Identify the programs that will be used to
generate sales and/or leads for sales teams.
● PR – How will you share news, get mentions and build credibility?
● Online and Offline – What types of programs, tools, and resources do you
need to reach objectives? This can include advertising, content, and
sponsorships.
● Mobile – This should be part of any communications strategy. It is called
out here because it is such an important communication channel.
● Events – What trade shows, conferences, and other events will contribute
to reaching the objectives?

2. Market Research – This is important, as ongoing research to understand your

customers and market is critical. This will help you monitor and be aware of the
perception (what is being said) about you the in the market.

3. Action programs – The details to turn the strategies into a calendar of programs.

4. Financials / Budget – The costs of all related programs including anticipated sales,
revenue and costs of all marketing related activities.

5. Controls – The KPIs you will use to measure results.

This article discussed in detail about marketing strategy and how to formulate a
marketing plan. You must note that all the parts of marketing plan together make the
complete layout of how you are going to do marketing in your business.

Concept in Creating Marketing Plan

I. Business Plan
A. A proposal that describes the new business to potential investors.
B. Description and analysis of the proposed business situation
C. Organization and marketing plan
D. Financial plan
II. The Marketing Plan
A. Company Goals
1. Company accomplishments
2. Increase sales

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 3. Reduce costs by
4. Introduce product
When developing the marketing plan, it must be determined what the goals are
for the company.
If a company has an existing product, are they planning on increasing sales? Or
is it the goal to introduce a new product? Or gain market share?
B. Description of Customers
1. Needs
2. Media Outlets
3. Age
4. Location and Time
a. Demographics
b. Psychographics
c. Geographics
d. Product Benefits
The next step is to fully describe the customers. This needs to be very specific so
you can reach your target customer. Market segmentation can increase the odds
of reaching the targeted customer.
III. Competitors
A. Products
B. Promotion
C. Price
Ask: Can you think of two companies that are competitors? What products do
they make? How do they promote their products? How much are the products?
IV. SWOT Analysis
A. Strength
B. Weakness
C. Opportunities
D. Threats
Say: To perform a SWOT analysis, companies analyze what are the internal
strengths and weaknesses of their products. The second section of the SWOT
analysis focuses on the external marketplace opportunities and threats.
V. Economic, Social, Legal and Technological Trends
A. Trends
B. Economic Trends
C. Social Trends
D. Environmental or legislative changes
E. Technological changes
VI. Financial and Human Resources
A. Funding
B. Human Capital
VII. Time Line
A. Individual Events

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 B. Product Launch
C. Promotion and Distribution Plans
D. Competitors
VIII. Methods for Measuring Success
A. Financial Reports
B. Product Share
C. Company Goals
D. New Customers
Why is a budget essential when starting a business?
Budgets and timelines describe and organize business. Once businesses are up
and running, they must have a way to measure success.
How could creating plans for businesses lead to measurements of success?
IX. The International Marketing Plan
A. Geographic, Cultural and Political Factors
B. Customized Product
C. Affordability
D. Distribution Costs
E. Advertising Costs
F. Joint Ventures
Product markets are different in each county.
Why would companies change advertising in different areas? How much does it
cost to change the advertisements? Could that cost be split with another company?

PRACTICE:

Students will choose a product; it can already exist or be a new product of their
own creation. They will then create a business plan using the Business Plan outline
that is included with this module. The business plan encompasses the product
description, marketing plan, financing plan and location of the business. The business
plans should be written professionally in detail with the intention that they could be
presented to a banker or investor to request financing.
In addition to the business plan, students are to create a digital presentation that is a
high-level summarization of their business plan to present to the class

PERFORMANCE:

Enrichment Activity
(e.g., homework assignment)

SWOT Analysis
Students will choose any type of fast food restaurant. They will
research the fast food restaurant that they chose and perform a SWOT analysis on that
restaurant. They will divide the poster into four quadrants and they have one of the

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four elements of the SWOT analysis in each quadrant. At the bottom of the poster will
be recommendations for the fast food restaurant based on their SWOT analysis.

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 UNIT XIV: LEGALIZING STAGE

PREPARATION:

Students will be provided with handouts containing all the list of needed
documents to be registered before the commencement of each business from the
government websites. They have to read and familiarize the listed documents for
their chosen business organization in their business plan.

PRESENTATION:

Registering the Business Legally

Entrepreneurs need to register their companies legally. This can be done online
via the Philippine Business Registry (PBR). Do also understand types of company and
where supervision falls – Department of Trade and Industry (DTI) for sole
proprietorship, or Securities and Exchange Commission (SEC) for partnerships and
corporations. Registration for sole proprietorship can be done in a day in DTI while it
takes over 30 days for Philippine corporations, unlike Hong Kong and New Zealand,
where approval can be secured in one day with lesser steps.

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 Investment products need to be registered with the Securities and Exchange
Commission (SEC) or there are heavy penalties for not doing so. Some companies sell
de facto investment products, by asking people to buy positions, called headers in a
binary plan, such as 3-headers, 7-headers, 21-headers and the like, disguising their
operations as a legitimate multilevel marketing plan when they are illegal and classified
as unregistered investment. Multilevel marketing or network marketing is a good
entrepreneurial equalizer for those who do not have large capital, but binary companies
selling investment positions or balancing recruits in order to get paid compensation is
both pyramiding and unregistered investment.

After registering your company, there is a need to register with the local
government and the Bureau of Internal Revenue (BIR), then Social Security System
(SSS), Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual
Fund (Pag-iBig Housing), etc.

Many of these activities can be handled by companies specializing in registration

– lawyers for start-up papers while administrative companies help you register for a
small fee. Entrepreneurs should use these resources so they can focus on getting their
products into the hands of as many paying customers as soon as possible.

Summary of Business Registration for Sole Proprietorship

1. Register Business name in the Department of Trade and Industry (DTI).

2. Get a Barangay Clearance for business registration purposes from the Barangay
where your physical location will be and provide a photocopy of the DTI
registration in order for the clearance to be released.
3. The Barangay Clearance and DTI registration form will be submitted to the local
government unit in the Municipality of that Barangay for the Mayor’s Permit,
which requires the following, but not limited to:
1. Medical Certificate of Employee
2. Bureau of Fire Certificate
3. Building permit for the Engineering Office/Contract of Lease for
the physical store/ Land Title if the location is personally owned
4. Sanitary Permit
4. The Mayor’s Permit, valid ID, together with the aforementioned requirements will
be used in getting the Certificate of Registration from the Bureau of Internal
Revenue (BIR) through your assigned Regional/District Offices (RDO); wherein you
will be provided with the following, but not limited to:
1. BIR Form 2303 or the Certificate of Registration
2. Taxpayer Identification Number (TIN)
3. Registered books of accounts
4. Printing of Sales Invoice
5. Register in other government agencies, if needed (e.g. SSS, Pag-iBig, PhilHealth)

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Closing a Business Legally

The following are the steps on how to close a Sole Proprietorship legally:
1. Inform the related government agencies 30 days prior to the intended closing
date (SSS, DOLE, PHILHEALTH, PAG-IBIG)
2. Get a Barangay Clearance stating your purpose in your Barangay and show
the necessary additional documents. (See checklist at DTI website)
3. Get a Certificate of Closure in your Municipal/City Hall and show necessary
additional documents.
4. Comply BIR requirements to cancel the TIN and to receive the Certificate of
No Liability
5. Apply business closure to the Department of Trade and Industry (DTI)
using the BN Form

PRACTICE:

Students will evaluate the business organization of their chosen business for their
business plan. Afterwards, they will identify the necessary requirements needed prior to
the commencement of the business.

PERFORMANCE:

Enrichment Activity
(e.g., homework assignment)

Business Registration Document Sample

Students will research about their summarized documents needed
prior to the commencement of their business and research for a sample document to be
attached in their business plan in the appendix section and for familiarity purposes that
can be useful in their future ventures.

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 UNIT XV: PARTS OF A BUSINESS PLAN

PREPARATION:
Students will review previous topics, especially the Business Model Canvas,
which are included in the creation of the business plan. They will be grouped within
the class and brainstorm on what product to offer in the market so they can proceed
in the creation of the business plan.

PRESENTATION:

Business Plan is a written document that describes in detail how a business – usually
a startup – defines its objectives and how it is to go about achieving its goals. It lays
out a written roadmap for the firm from marketing, financial, and operational
standpoints. This document should be reviewed and updated periodically to see if goals
have been met or have changed and evolved.

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 The four main reasons to implement a business plan are the following:
1. Raise Money
2. Make Sound Decision
3. Identify Potential Weaknesses
4. Communicate ideas with stakeholders

Elements of a Business Plan

1. Cover Letter
2. Title Page/Table of Contents
3. Executive Summary
4. Company Summary
5. Product and Service Analysis
6. Marketing Plan and Business Model Canvas
7. Operation and Staffing Procedure Policies
8. Financial Plan and Analysis
9. Management Profile
10. Appendix

Cover Letter

- serves as the first impression of the business plan

- the applicant’s chance to have a personal word with the lender and prepare him
or her for reading the business plan
- used when applying for business loans for start-up

Parts of a Cover Letter

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Title Page & Table of Contents

Title Page includes the following:

- company name
- company logo & color scheme
- title & date
- CEO/Owner/Key contact Information
- Confidentiality Statement
Table of Contents in a professional business plan introduces your new business to
investors, suppliers and prospective business partners. It helps provide an overview
of what readers can expect to read within the business plan.

Executive Summary

- The most important part of your business plan

- The overview of your entire business plan should succinctly highlight the most
important parts of the plan
- Always limited to 1 page only
- Best to craft when you’re done with other sections of your business plan, in other
words – the last to be written in the entire business plan

This part should explain the following:

- An overview of your business

- A description of your product and/or service
- Your goals for the business
- Your proposed target market
- Your competition and what differentiates your business
- Your management team and their prior experience
- Financial outlook for the business

Company Summary

- also known as the company description or overview

- a high-level look at what you are as a company and how all the elements of the
business fir together
- an effective company summary should give readers, such as potential investors,
a quick and easy way to understand your business

This part is composed with the following:

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- Company Vision and Mission Statement
- Company Goals and Outcomes/Objectives
- Company Industry Profile

Product and Services Analysis

This section expands on the basic information about your products and services
included in the Executive Summary and Company Description.

The items to consider are the following:

- Your company’s product/service

- The problem the product or service solves
- Any proprietary features that give you a competitive advantage
- How you will price your product/service

It is also essential to include any product or service details, such as technical

specifications drawings, photos, patent documents, and other support information,
in the Appendices. After reading the Products & Services section, the reader should
have a clear understanding of what your business does, what problem it solves for
customers, and the unique selling proposition that makes it competitive.

Product/Service Description Worksheet

Business Name
Product/Service
Special Benefits
Unique Features
Limits & Liabilities
Production &
Delivery
Suppliers
Intellectual Property
Special Permits
Product/Service
Descriptions

Marketing Plan

This section provides details on your industry, the competitive landscape, your target
market and how you will market your business to those customers.

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 Includes the following, but not limited to:
- Geographic Segmentation
- Demographic Segmentation
- Psychographic Segmentation
- Behavioral Segmentation
- Target Market and Location
- Pricing
- SWOT Analysis
- PEST/PESTLE Analysis
- Competitor’s Analysis

Business Model Canvas

Soonest the entrepreneur decides there is opportunity for him or her to thrive in the
industry he/she wants to enter, designing the business model is the next step.
A business model is a description of the means and methods a firm employs to
generate sales revenue, profit, and cash flows, while providing a template for the
business to scale up. It has 10 building blocks subdivided into two parts – the
offering model and the operating model, with the definition of terms of each building
block.

The offering model is composed of what people in the marketing and sales
departments typically handle – target market, value proposition, channel, customer
bonding strategy and revenue model.

The operating model, on the other hand, is what people in the operations
department, like supply chain and customer fulfillment, oversee – value chain,
resources and processes, complementors, configurations and cost.

Compared to the concept of business model by other authors, the Mansmith

Business Model Map, introduced by Mansmith and Fielders Inc. in June 2010, added
two more important components:
● Value chain, which can be either be expanded or collapsed as part of the
innovation effort, after auditing the current strength and weaknesses of each
member of the value chain.
● Configuration (or reconfiguration), to attain differentiation at lower cost. This
is especially critical as resources of entrepreneurs are typically not a lot, hence,
frugality must be practiced in order not to spend for costs that do not create
value for them.

Lastly, instead of doing a business plan immediately, it is recommended to have clarity

of the business by identifying the 10 building blocks of a business via a 1-page business
model first. This method would be more practical and less threatening for aspiring

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entrepreneurs designing a business model by first using bullet points than writing the
entire business plan immediately. After the business model defined, fleshing out the
business model via a business plan can be done with emphasis on the addition of
quantifiable goals, key metrics as well as financials and control.

Operations Planning

This section explains the daily operation of your business, including its location,
equipment, personnel and processes.

This section includes the following, but not limited to:

- Production
● How will produce your product or deliver your service? Describe your
production methods, the equipment you’ll use and how much it will cost to
produce what you sell.

- Quality Control
● How will you maintain consistency? Describe the quality control procedures
you’ll use.

- Location
● Where is your business located? You briefly touched on this in the Company
Overview. In this section, expand on that information with details such as:
o The size of your location
o The type of building (retail, industrial, commercial, etc.)
o Zoning restrictions
o Accessibility for customers, employees, suppliers and transportation if
necessary
o Costs including rent, maintenance, utilities, insurance and any buildout
or remodeling costs
o Utilities

- Legal Environment
● What type of legal environment will yuour business operate in? How are you
prepared to handle legal requirements? Include details such as:
o Any license and/or permits that are needed and whether you’ve
obtained them
o Any trademarks, copyrights or patents that you have or are in the
process of applying for
o The insurance coverage your business requires and how much it costs
o Any environmental, health or workplace regulations affecting your
business

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 o Any special regulations affecting your business

- Personnel
● What type of personnel will your business need? Explain details such as:
o What types of employees? Are there any licensing or educational
requirements?
o How many employees will you need?
o Will you ever hire freelancers or independent contractors?
o Include job descriptions
o What is the pay structure (hourly, salaried, base plus commission, etc.)?
o How do you plan to find qualified employees and contractors?
o What type of training is needed and how will you train employees?

- Inventory
● If your business requires inventory, explain:
o What kind of inventory will you keep on hand?
o What will be the average value of inventory?
o What rate of inventory turnover do you expect?
o Will you need more inventory than normal during certain seasons?

- Suppliers
● List key suppliers, including:
o Names, addresses, websites
o Type and amount of inventory furnished
o Their credit and delivery policies
o History and reliability
o Do you expect any supply shortages or short-term delivery problems? If
so, how will handle them?
o Do you have more than one supplier for critical items (as back up)?
o Do you expect the cost of supplies to hold steady or fluctuate? If the
latter, how will you deal with changing costs?
o What are your suppliers’ payment terms?

- Credit Policies
● If you plan to sell to customers on credit, explain:
o Whether this is typical in your industry (do customers expect it)?
o What your credit policies will be. How much credit will you extend?
What are the criteria for extending credit?
o How will you check new customers’ creditworthiness?
o What credit terms will you offer?
o Detail how much will it cost you to offer credit, and show that you’ve
built theses costs into your pricing structure.

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 o How will you handle slow-paying customers? Explain your policies, such
as when you will follow up on late payments, and when you will get an
attorney or collections agency involved.

Financial Plan and Analysis

● Assumptions – Every projection is based on some assumptions. Pick
reasonable assumptions because you don’t need to spend much time justifying
your assumptions unless they are critical to the company’s success. Use the
assumptions area for economic or tax rates as well as significant numbers like
sales that drive other numbers like costs.

● Key financial indicators and financial ratios - this highlight what you
have determined to be the most important for measuring the performance of
the company. This acts almost like an executive summary of the more detailed
financial information that follows:
o Liquidity ratio
o Leverage ratio
o Activity ratio
o Profitability ratio
o Growth ratio
● Cash flow projection – Every business plan needs a cash flow projection.
The rest of the plan tells the story of the business and how the company will
execute that plan. The cash flow projection proves whether the plan is going to
work. The timing of when to hire staff, make significant purchases and
distribute cash to owners can all be modeled to make sure your strategy is
feasible.
● Projected income statements and balance sheets – Standard accounting
income statements and balance sheets show profitability and aspects of the
financial health of the company. Many investors and lenders calculate ratios
from the income statement and balance sheet to determine whether to give
money to the company.
● Break-even analysis or cost-volume-profit analysis – The break-even
analysis projects the sales volume you need in order to cover your costs. In
other words, when will the business break even?

Management Profile

This section contains the organizational structure of the company including

photos, positions, and designations.

Appendix

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 This section contains all the supports needed in the business plan including
sources of ideas and resources.

PRACTICE:

Students will make a Business Plan through compilation of the works presented from
the discussed and tackled topics. The documents will be arranged according to the
format provided for, in the course pack.

PERFORMANCE:

Students will have a business plan defense wherein they will present the
essential parts of their business plan as if they are applying a loan for the execution of
such business.

Rubrics will be as follows:

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