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Entrepreneurship

The document outlines the product development process, which includes describing the product, creating a prototype, testing it, and validating market acceptability. It also discusses the 4Ms of operations: Methods, Manpower, Machines, and Materials, detailing their roles in manufacturing and distribution. Additionally, it emphasizes the importance of logistics, including warehousing, transportation, and inventory management for successful entrepreneurship.

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6 views2 pages

Entrepreneurship

The document outlines the product development process, which includes describing the product, creating a prototype, testing it, and validating market acceptability. It also discusses the 4Ms of operations: Methods, Manpower, Machines, and Materials, detailing their roles in manufacturing and distribution. Additionally, it emphasizes the importance of logistics, including warehousing, transportation, and inventory management for successful entrepreneurship.

Uploaded by

micoh.manangkil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ENTREPRENEURSHIP

RODUCT DEVELOPMENT – Process of developing, testing, and commercializing a product or service with
the ultimate objective of solving the problem of the primary target market.

Steps for product development

1. Product or Service Description – describe how a product or service works and how it benefits the
customers.
2. Creating a prototype of the product or service – Is a preliminary model or sample of a new product
or service that is created to test a product or concept or service process.
3. Testing the Product Prototype – is a vital process before an actual product or service is launched to
the market.
4. Validation of Market Acceptability – process of finding out if the intended primary target market will
be buying the product or availing the service. This is a critical factor that the entrepreneur must
validate before launching the product or service.

4Ms of Operations
1. Methods or the processes to be followed in effective manufacturing or delivering a product or
service.
Methods aspect represent the day-to-day operations of a business.
MANUFACTURING – is the process of translating raw materials into finished goods that are
acceptable to the customer’s standards. It consists of three elements;
a. Inputs – materials or ingredients to be used in creating the product
b. Process – transformation phase where inputs are processed by manpower and machines
to come up with final product.
c. Output – final product of the process stage, which is intended to be sold to target
customers.

Manufacturing Sites:

a. Home-based – business you can start and managed at home.


b. Commercial Space for Rent – gives the entrepreneurs more specialized and suited
manufacturing sites.
c. Commercial Space for Purchase -This provides the entrepreneur substantial freedom and
flexibility to design and run the commercial space.

Distribution Method:

DISTRIBUTION -Is a process of bringing the products or services to customers.

Distribution Channel;

a. Distributors- are entrepreneurs who often buy products or services to the


manufacturers and sell them at a markup price to either wholesalers or retailers.
b. Wholesalers- buy products in bulk.
c. Retailers
d. Customers – end users of the product or service.
2. Manpower – one of the highest costs of operating a business but is also the most instrumental
to its success.
a. Job Description – Enumerates the duties, responsibilities of the employee, including the
scope, limitations, terms and conditions of employment.
b. Employee Qualification – Educational background, work experience, specific skills or
knowledge and work attitude.
c. Selection of Job Applicants
d. Employee Development
Training people – one of the biggest investments of an entrepreneur or a
businessman.
Employee Orientation – usually a one-to-two- days session that summarizes the
history of the business.
3. Machines – can be described as “best friend” of manpower in producing goods and offering
services.
A. Equipment and other facilities
B. Telecommunications and information Technology
4. Materials -entrepreneur will offer products or services, he or she has to pinpoint a number of
dependable suppliers of quality raw materials and supplies.
a. OUTSOURCING – process of appointing a third party manufacturer to do manufacturing
operations of business.
b. LOGISTIC – This is where entrepreneur must understand and implement efficient logistic
management.
a. Warehousing – storing the finished goods manufactured in a facility until they are
distributed to end users.
b. Transportation – It is the process of efficient transferring the products to retailers or
consumers.
c. Inventory – The entrepreneur must be knowledgeable about the life span of the
products that will be sold.

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