ENTREPRENEURSHIP

FINALS
MANPOWER
UNIT 10- LESSON 1: 4M’S OF OPERATIONS
★ REFERS TO THE HUMAN RESOURCES WHO WILL HANDLE
THE BUSINESS OPERATIONS.
METHOD
★ REFERS TO THE PROCESS THAT IS STRICTLY FOLLOWED Qualification Standards
IN THE MANUFACTURING OF A BUSINESS PRODUCT 1. Manpower - the personality required to a worker’s overall
physical attributes.
3 Elements of Manufacturing: 2. Experience - the length of working experience in relation to
1. Input - This refers to the materials or ingredients that are the job criteria required as a worker.
being used in creating the product. 3. Academics - the workers’ academic qualifications or
2. Process - This refers to the transformation phase where the educational attainment required of them to perform the job.
raw materials or ingredients are being processed by
manpower and machines to come up with the final product. LESSON 2: PRODUCT DESCRIPTION AND PROTOTYPING
3. Output - This refers to the final product that is intended to be
sold to the target customers.
Product Description
Manufacturing Site Option ★ Format of presenting important information about the
1. Home-based - This site option is the cheapest among the features of the product.
three and highly flexible, also a best choice for most start-up
businesses. Product Satisfying Features
2. Commercial space for rent - This is the recommended option ★ Characteristics of the product that describe its appearance
if the business already needs a commercial space for the and capabilities
processing of the product. 1. Design - can improve the marketability of the product
3. Commercial space purchase - This is the ideal option for through its appearance.
established businesses, but this requires the biggest amount 2. Product Colors - the use of the right color combination is
of capital. appealing to the customers.
3. Product Quality - characteristics of a product that contributes
MACHINE to its ability to fulfill and meet the requirements of the end
★ REFERS TO THE TOOLS, FACILITIES, AND SYSTEMS THAT users.
4. Product Warranty - it is a feature where the buyer is assured
ARE USED TO PRODUCE A PRODUCT.
that the product being purchased meets the specification
stated in the product label.
Equipment and Other Facilities
- The equipment to be used must be strategically placed within Guide in Writing a Product Description
the production site or within the service delivery area. 1. Define the buyer persona.
Information and Communications Technology
2. Create a list of features and benefits.
- Some businesses use the following information and 3. Define the tone of voice.
communication technology equipment to better serve their
4. Create a scannable format
customers: landline and mobile phones, computers, point of 5. Write the first draft
sale (POS) machines, accounting and inventory software, 6. Edit the draft to boost persuasiveness
and websites.
Prototype
Entrepreneurs’ Responsibilities in Safeguarding Machines
- working model of entrepreneurial ideas for a new product. It
1. protecting against fraudsters comes in all shapes and sizes in almost all industries.
2. training of employees in keeping information confidential
3. constant updating and checking of software programs
Types of Prototype
4. assuring that there is a business continuity program (BCP) ● Functional Prototype – designed to imitate the function of
5. appointing experts in charge of the software and computers
the real product as close as possible.
6. having insurance coverage for equipment ● Display Prototype – designed with more focus on the
appearance rather than on the functions.
MATERIALS ● Miniature – it is a smaller version of the product that is
★ REFER TO THE RAW ITEMS THAT ARE USED IN CREATING focused on the functional and display aspects of the product.
A PRODUCT OR PERFORMING A SERVICE. ● Throwaway Prototype (close-ended prototypes) – this type
will eventually be discarded or thrown away. It only
Materials Requisition Options represents what an actual product can do.
1. Manufacturing of own materials - a large amount of capital ● Evolutionary Prototype – involves building a basic but
must be prepared because all expenses in the manpower, strong type that can further improve and build to form an
machines, and materials will be shouldered by the actual product.
entrepreneur.
2. Outsourcing - a third-party manufacturer will do the Steps in Building the Product’s Prototype
manufacturing of the materials needed. 1. Create a concept sketch
3. Purchasing own products from present suppliers - the 2. Develop a virtual prototype
entrepreneur will purchase finished products from a 3. Build a physical prototype
manufacturer. 4. Apply for a patent
5. Locate a manufacturer

PREPARED BY: ST LUCY BBGURLS ( •̀ᄇ• ́)‫✧ﻭ‬ 1

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LESSON 4: SUPPLIER, VALUE, AND SUPPLY CHAIN

LESSON 3: PRODUCT TESTING AND VALIDATION
Raw Materials
Product Testing - Also known as feedstocks in case of machines, refers to the
★ the process of examining the original model of the product, unprocessed material used in the primary production or
which will be the basis of the actual product manufacturing of goods.

Importance of Testing Supplier Selection Process

1. Allows the business to determine the aspect of 1. Thinking strategically in selecting suppliers
improvements and changes in the product. 2. Setting criteria for choosing a supplier
2. Assesses the final production cost. 3. Identifying potential suppliers
3. Allows the designer of the product to plan an efficient and 4. Drawing up a shortlist of suppliers
cost-effective product line. 5. Choosing a supplier
4. The customer can use the product efficiently and safely. It
can guarantee customer satisfaction because the product is Supply Chain
tested. - It is a connected network of individuals, organizations, and
5. May lead to innovation and become highly competitive. activities that produces and distributes a specific product to
the final consumer.
Methods of Evaluation
1. Planning. It is done by creating important tasks and selecting Supply Chain Management
user groups to test the product. - refers to the management of the flow of goods and services,
2. Running Sessions. Observation of the interaction and taking including all processes in transforming raw materials into
notes of the problem encountered are the main activities in finished products.
this evaluation.
3. Output. Producing a list of problems encountered in terms of Supply Chain Management Process
usability and categorizes them by importance. 1. Consumer Relationship Management - an approach in
handling business interaction with current and potential
Services Description of the Product customers.
★ Services are intangible products that are performed to satisfy 2. Customer Service Management - provides a system of
a need or to fulfill a demand. The rental, alteration, or repair responding to customer’s complaints, concerns, questions,
of goods owned by the owners and other personal services and comments.
are some examples. 3. Demand Management - a process used to forecast, plan, and
manage the demand for products and services.
The Five I’s of Services 4. Order Fulfillment - it involves generating, filling, delivering,
1. Intangibility – services are untouchable. and providing service for customer’s orders.
2. Inventory – cannot be stored for future use. 5. Manufacturing Flow Management - it includes all activities
3. Inseparability – the provider delivers the service at the time needed to obtain, implement, and manage manufacturing
of consumption. flexibility in the supply chain.
4. Inconsistency – services are difficult to standardize. 6. Supplier Relationship Management - provides support for
5. Involvement – the customer and the provider of the service developing and maintaining good relationships with highly
participate in the same activity. valued suppliers in order to gain performance advantages.
7. Product Development and Commercialization - provides the
Labeling structure for working with customers and suppliers to
★ A label is a piece of printed information about the product’s develop products and offer them to the market.
features and attributes. It also provides a description of 8. Returns Management - is a process that enables the business
certain services that a business may provide to its customers. firm to manage volumes of returned products efficiently
while minimizing the costs.
Types of Label
1. Brand label. It gives the customer information about the Example of Supply Chain
brand.
2. Description label. It specifies the product usage,
construction, care, performance, or other features.
3. Grade label. It identifies the product quality with letters and
numbers or words.

Label Development Process

1. Initial Design
2. Consumer Test
3. Final Design
4. Proofs
5. Delivery and Quality Checking

PREPARED BY: ST. LUCY BBGURLS ( •̀ᄇ• ́)‫✧ﻭ‬ 2

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Logistics Components of Supply Chain 3. Searching

● Logistics refers to the process of planning and implementing 4. Screening
efficient transportation and storage of goods from the point a. Reviewing résumés and cover letters.
of origin to the point of consumption. b. Identifying the top candidates.
5. Evaluation and Control.
1. Sourcing and Procurement. Sourcing is the process of
evaluating individual firms to supply goods and services to Selection Process
the business, while procurement is the process of purchasing 1. Reception of applicants
those goods and services. 2. Preliminary interview
2. Production Planning and Scheduling. It ensures that the 3. Filling out of application form
orders are fulfilled in the most efficient way without 4. Employment test
interruptions and delays. 5. Final interview
3. Order Processing - It processes the needs of the customer and 6. Physical and medical examinations
sends the information into the supply chain and then to the 7. Hiring
warehouse. 8. Orientation
4. Inventory Control. A process that regulates and maximizes
the warehouse inventory of the business. Other Considerations when Hiring Peole
5. Storage and Materials Handling. Storage and material ● Compensation
handling focus on the physical requirements of holding the ● Organizational Policies
inventory. ● Company Manual
6. Transportation. Refers to the movement of goods from the
point of origin to the point of consumption. Organizational Structure and Elements
● Organizational structure provides the manner in which the
Value Chain activities of the organization are organized, controlled, and
- a step by step activity needed to create a product or a service. coordinated in order to achieve the organization’s goal.
A business conducts value chain analysis by evaluating the These activities include rules, roles, and responsibilities of
detailed procedures involved in each step. the organization’s employees.

Michael Porter’s Value Chain Centralized vs. Decentralized Organizational Structure

- Michel Porter creates a general-purpose value chain that a - organization’s structure can either be centralized or
business may use to examine all the activities involved in decentralized.
creating value for its customers.
● Centralization occurs when major decisions are made by
Elements in Porter’s Value Chain the top management.
> Primary Activities ● Decentralization occurs when lower management is
1. Inbound Logistics allowed to make important decisions.
2. Operations
3. Outbound Logistics Organizational Elements
4. Marketing and Sales 1. Common purpose
5. Sevice 2. Coordinated effort
3. Division of labor
> Support Activities 4. Hierarchy of authority
1. Procurement
2. Human Resource Management
3. Technological Development
4. Infrastructure UNIT 11- LESSON 1: BUSINESS CONCEPT AND MODELS
Business Concept
- foundational idea that describes the reason for the existence
of a business entity.
LESSON 5: PEOPLE RECRUITMENT FOR BUSINESS
Essential Elements of Business Concept
Recruitment 1. Features. Describe the specification of the product or
- the process of finding and enticing potential applicants to fill service.
the vacant positions in an organization. 2. Benefits. It clearly discusses the solution the business can
provide.
Recruitment Process
- the system of identifying the job vacancy, analyzing the job - A business concept is composed of a few sentences and is
requirements, reviewing the applications, screening, not more than one page. It is different from a business plan,
shortlisting, and selecting the right candidate for the which is a more extensive document.
business. Example of a Business Concept:
Product name: Calories Watch
1. Recruitment Planning Product Description: A watch design to track the number of calories
a. Job Analysis burned during an exercise routine.
- Job Description Business Concept: Calories Watch is a mobile application designed for
- Job Specification fitness enthusiasts to help track their progress during their training. The
b. Job Evaluation application measures the number of calories burned using an
2. Recruitment Strategy innovative circulation method that no other application can provide.

PREPARED BY: ST. LUCY BBGURLS ( •̀ᄇ• ́)‫✧ﻭ‬ 3

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Business Model Investment Prerequisites

- A conceptual structure that explains how a business operates 1. Organizational and Pre-operating Costs- pertain to those
and intends to achieve its goals. expenses in preparation for the official launch or start of the
business.
Types of Business Model Example:
1. Manufacturing. Transforms raw materials into a finished ● Business plan- consist of both pre feasibility and feasibility
product. study.
2. Distributorship. Purchases products from manufacturers ● Research expenses- golden rule to conduct research of the
and sells them to the retailers or the public. industry and the target market.
3. Retail. A business model that engages in selling directly to ● Product development costs- help in calculating the return on
the public after buying the products from a distributor or investment (ROI).
wholesaler. ● Initial promotional costs- promotional strategy
4. Franchise. Engages in using a parent business model instead
of creating a new product. 2. Product or Service Facilities Costs- these costs pertain to
5. Brick-and-mortar. Traditional business model where long-term investments that are needed for actual business
manufacturers, wholesalers, and retailers deal with the operations.
customers personally in an office, shop, or store that the Three Basic Categories of Production Costs:
business owns or rents. A. Direct Material- raw materials that go with production.
6. eCommerce. Upgraded version of brick-and-mortar. It sells B. Direct Labor- benefits, fees, salaries, and other forms of
products through a web store on the internet. payment given to employees and staff who are directly
7. Bricks-and-clicks. Has both online and offline presence. It involved in manufacturing the products.
allows the customer to place an order online and pick up the C. Factory overhead- costs required in maintaining the overall
items at the physical store. production are categorized under factory overhead costs.

3. Working Capital Investments- refers to the liquid assets that a

business has on hand. Source of payment for all unforeseen and
planned expenses of the business as well as its short-term monetary
obligations.

Forecasting Revenues and Costs for a New Product Lauch

Example Formula and Solutions:
Forecasting Revenues and Costs for a New Product Lanuch

UNIT 12- LESSON 2: INCOME STATEMENT PREPARATION

Elements of a Strong Business Model Income Statement (Profit and Loss Statement)
1. Specific Market- identifies which among the market groups - detailed report that shows all the income or earnings,
a business should focus. expenses, and the resulting profits or losses of a business for
2. Business Processes- understands what activities are a given accounting period.
required to make the business model work.
3. Key Business Resources- records essential business Purpose of Income Statement
resources that the business model is adequately prepared to 1. Internal Users- these people use the income statement to
sustain the needs of the organization. analyze the performance of a business and to be able to make
4. Strong Value Proposition- establishes what the business effective decisions.
offers and determines why the business is better than its 2. External Users- investors and creditors of the business,
competitors. indirectly related to the business operations.
5. Key Business Partners- identifies key partners who will
contribute to the ability of the business to serve the Formula:
customers. Revenues - Expenses = Income or Profit (Loss)
6. Demand Generation strategy- entrepreneurs need a
strategy that builds the interest of consumers and that is Parts of Income Statement
designed to close sales. 1. Gross Sales or Sales Revenue
7. Innovation- review the business model to ensure that it will 2. Costs of Goods Sold (GOGS)- refers to the direct costs
meet the ongoing need of the consumers. associated with producing all of the products and/or services
sold by the business.
3. Gross Profit/Margin- derived from subtracting the total
UNIT 12- LESSON 1: INVESTMENT PREREQUISITES cost of goods sold from the sales revenue. Manifests the
profitability of the business after taking into account the
direct costs incurred.
Financial Forecasting 4. Operating Expenses (or General Expenses)- all
- act of estimating the future financial outcomes of a business, expenditures to keep the business going.
such as its income and expenses, over a period of time. 5. Operating Profit/Margin- reflects the residual income after
deducting all expenses or costs of doing business, excluding
deductions of interests and taxes.

PREPARED BY: ST. LUCY BBGURLS ( •̀ᄇ• ́)‫✧ﻭ‬ 4

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6. Taxes Due- refer to the total amount of tax debt owed by the
business to the Bureau of Internal Revenue (BIR).
7. Net Profit after Taxes- variable that always marks the end
of an income statement. Financial term that reflects the profit
of a business after all taxes have already been paid.

Goodluck Future Entrepreneurs!

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PREPARED BY: ST. LUCY BBGURLS ( •̀ᄇ• ́)‫✧ﻭ‬ 5