ENTREPRENEUR

SHIP
4 M’s of Production
and
Business Model
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4 M’S OF OPERATIONS IN
RELATION TO THE
BUSINESS OPPORTUNITY
AND DEVELOPING
BUSINESS MODEL
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MANPOWER
 - Talks about human labor force involved
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- It is measured as the most serious and
main factor of production. The
entrepreneur must determine, attain and
match the most competent and skilled
employees with the jobs at the most
appropriate time period.
- Educational qualifications and
experience, status of employment,
numbers of workers required, skills and
expertise required for the job are some
of the manpower criteria that must be
highly considered by the entrepreneur.
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MATERIALS
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- Talks about raw materials necessary in

the production of a product. Materials
mainly form part of the finished product.
Just in case the resources are below
standard, the finished product will be of
unsatisfactory as well.
- The entrepreneur may consider cost,
quality, availability, credibility of
suppliers and waste that the raw
material may produce.
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MACHINE
 - Discusses about manufacturing
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equipment used in the production of
goods or delivery of services.
- In the process of selecting the type of
equipment to purchase, the
entrepreneur may consider types of
products to be produced, production
system to be adopted, cost of the
equipment, capacity of the equipment,
availability of spare parts in the local
market, efficiency of the equipment and
the skills required in running the
equipment.
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METHOD
Click icon to add picture - Production method discusses the
process or way of transforming raw
materials to finished products. The
resources undergoes some stages before
it is finalized and becomes set for
delivery to the target buyers.
- The selection of the method of
production is dependent on product to
produce, mode of production,
manufacturing equipment to use and
required skills to do the work.
PRODUCT
DESCRIPTION
- Is the promotion that explains what a product is and why it’s
worth buying? The purpose of a product description is to
provide customers with details around the features and
benefits of the product so they’re obliged to buy.
- Know who your target market is, focus on the product
benefits, tell the full story, use natural language and tone,
use power words that sell, and use good images. These are
guidelines for you to have a good product description; since
some customers are very particular with it since they
consider the welfare of their family, if it is safe to use.
PROTOTYPING
A duplication of a product as it will be produced,
which may contain such details as color, graphics,
packaging and directions. One of the important early
steps in the inventing process is making a prototype.
Benefits are the reasons why customers will decide to
buy the products such as affordability, efficiency or
ease of use. The features of the product or service
merely provide a descriptive fact about the product
or service.
PROTOTYPING
It is better to test your product prototype to meet
customers’ needs and expectations; and for your
product to be known and saleable. Pretesting of the
product or service is similar to a sample of the
product or service given to the consumer free of cost
in order that he/she may try the product before
committing to a purchase.
SUPPLIER
An entity that offers goods and services to another
business. This entity is among of supply chain of a
business, which may offer the main part of the value
contained within its products. Certain suppliers may
even involve in drop shipping, where they ship goods
directly to the customers of the buyer.
SUPPLIER
Suppliers are your business partners, without them
your business will not live. You need them as much as
you need your customers to be satisfied. But as an
entrepreneur you have to choose a potential supplier
that has loyalty and value your partnership; a
supplier that would lead you to the fulfillment of your
business objectives, mission and vision.
VALUE CHAIN
is a method or activities by which a company
adds value to an item, with production,
marketing, and the provision of after-sales
service. The main goal and benefit of a value
chain, and therefore value chain analysis, is to
make or support a competitive benefit.
SUPPLY CHAIN
is a structure of organizations, people, activities,
data, and resources involved in moving a product or
service from supplier to customer.
The main objective of supply chain management
includes management of a varied range of
components and procedures, for instance, storing of
raw materials, handling the inventory, warehousing,
and movement of finished product from the point of
processing to the point of consumption.
BUSINESS MODEL
describes the reasons of
how an organization
creates, delivers, and
captures value in
economic, social, cultural
or other contexts. The
development of business
model construction and
variation is also called
business model innovation
and forms a part of
business plan.
BUSINESS
MODEL
It is a company's plan
for how it will make
revenues and make a
profit. It describes what
products or services
the business plans to
manufacture and
market, and how it
plans to do so, as well
as what expenses it
will incur.
There are important phases in developing
your business model, namely;

1. identifying the specific audience;

2. establishing business process; recording a
business resources;
3. developing strong value proposition; determining
key business partners;
4. creating a demand for today’s generation strategy
and be open for innovations.
BUSINESS
MODEL
After developing a
business model, we will
proceed in developing
a business plan. To
be able to successfully
complete this lesson,
you need to prepare a
business plan and
operate your plan and
finally keep records of
your business
transactions.
BUSINESS
PLAN
is an important tool for you to have an idea about
the future of your business. Your business plan
will be your guide in the moment you will be
implementing and operating your business proposal.
BUSINESS
PLAN
You can also make use of the business plan in
securing investment capital from financial
institutions or lenders. It can also be used to
influence people to work for your enterprise, to
secure credit from suppliers, and to fascinate
potential customers.
Read the stories of Jessie, Mercy and Monna
below to fully understand the importance of
having a business plan:
“Jessie is the eldest of five children of Mr. & Mrs.
Natividad. The family is having difficulty to support
for their everyday needs. Because of this, Jessie tried
to enter selling banana cue and with his dream to
make his business grow, he put up many stalls in the
community without considering the advises of his
friends to make a business plan before implementing
his decision. After a few months his stalls shutdown.”
Read the stories of Jessie, Mercy and Monna
below to fully understand the importance of
having a business plan:
“Mercy is the youngest in the family. She found out
that she loves to cut hair and apply make up to her
friends. Until such time that her friends introduced her
to their friends too for haircut and make up when
there are occasions. Few months after, Mercy was told
by her friends to put up a beauty parlor in their place.
So she asks her mother who is also a businesswoman
to teach her how to make a business plan and
eventually ended with a successful business.”
Read the stories of Jessie, Mercy and
Monna below to fully understand the
importance of having a business plan:
“Monna is a diligent student. Because of her
knowledge gained from school about business
plan she was able to enhance her skills in
business and finally found herself into his
laundry shop business.”
Each scenario taught us that business is
not just about how much income or profit
you can get but it’s about the life of your
business. And in having a business, you
also have to consider technological
forces, Social forces, Political forces,
Cultural forces, Economic forces and
Legal forces.
BUSINESS
PLAN
The following are the components found in a
Business Plan.
 1. Introduction

this part discusses what is the business plan all

about.
 2. Executive Summary

part of the business plan which is the first to be

presented but the last to be made.
 3. Management Section

shows how you will manage your business and

the people you need to help you in your
operations.
 4. Marketing Section

shows the design of your product/service;

pricing, where you will sell and how you will
introduce your product/service to your market..
 5. Financial Section

shows the money needed for the business, how

much you will take in and how much you will
pay out.
 6. Production Section

shows the area, equipment and materials

needed for the business.
 7. Competitive Analysis

is the strategy where you identify major

competitors and research their products, sales
and marketing strategies.
 8. Market

The persons who will buy the product or

services.
 9. Organizational chart

is the diagram showing graphically the relation

of one official to another, or others of a
company.