Module_1_Personal_Entrepreneurial_Compet.pdf
- 1. 1 Module 1 Personal Entrepreneurial Competencies (PECs) Content Standards Performance Standards The learner demonstrates understanding of one’s PECs in Computer Hardware Servicing. The learner independently creates a plan of action that strengthens and/or further develops his/her PECs in Computer Hardware Servicing. Quarter I Time Allotment: 4 hours In this module, you will learn more about entrepreneurship and the entrepreneurial competencies related to Computer Hardware Servicing. You will have a first-hand experience in educational activities leading to assessment of your personal entrepreneurial competencies (PECs) and the entrepreneurial competencies of a successful computer technician within your province. You will also have several activities that will align your competencies with those of successful practitioners. Moreover, this module will encourage you to think about entrepreneurship and its role in the business community as well as in the economic and social development of an individual. To start with this module, let us first understand entrepreneurs and entrepreneurship. Entrepreneurs are those with the skills and capabilities to see and evaluate business opportunities. They are individuals who can strategically identify products or services needed by the community, and have the capacity to deliver them at the right time and at the right place. Entrepreneurs are agents of economic change; they organize, manage, and assume risks of a business. Some of the good qualities of entrepreneurs are: opportunity-seeker, risk-taker, goal-setter, excellent planner, confident problem-solver, hardworking, persistent and committed.
- 2. 2 Entrepreneurship, on the other hand, is not just a simple business activity but a strategic process of innovation and new product creation. Basically, entrepreneurship is both an art and science of converting business ideas into marketable products or services to improve the quality of living. Now that you have background knowledge about entrepreneurs and entrepreneurship, you can now walk through in assessing your PECs. Always remember that successful entrepreneurs continuously develop and improve their PECs. To begin, let us find out the competencies you will have gained upon completion of this module. At the end of this module, you are expected to: identify areas for improvement, development, and growth, align your PECs according to your business or career choice, and create a plan of action that ensures success in your business or career choice. Now try to take the first challenge in this module, the pre assessment. As part of your initial activity, try to assess your prior knowledge and experience related to personal entrepreneurial competencies. Answer Task 1. Task 1: Matching Type Directions: Match the entrepreneurial competencies in column A with their meaning in column B. Write the letter of the correct answer on the space provided before each number. A B ____1. Creative A. makes wise decisions towards the set objectives ____2. Profit-oriented B. strategic thinking and setting of goals ____3. Disciplined C. trusting in one’s ability Pre-assessment assessmentObjectives
- 3. 3 ____4. Sound decision maker D. adoptable to change ____5. Possess people skills E. innovates to have an edge over other competitors ____6. Excellent Planner F. solid dedication ____7. Confident G. skillful in record keeping ____8. Hardworking H. always sticks to the plan ____9. Ability to accept change I. work diligently ____10. Committed J. effective and efficient communication skills and relates well to people K. always looking for an opportunity to have/earn income. Task 2: Guide Questions Directions: The following are guide questions which covers the entire module. Write your answers on your assignment notebook. Discuss / share these to the class. A. Explain why entrepreneurial activities are important to social development and economy progress. B. What entrepreneurial activities related to Computer Hardware Servicing do you know and are capable of doing? C. If you were given the opportunity to own a business that relates to Computer Hardware Servicing, do you think you will be confident to manage it? Explain your answer. D. What do you think are the most important competencies one must possess in order to be successful in running a chosen business? E. Name successful entrepreneurs from your province whose businesses are related to Computer Hardware Servicing. Make sure you will be able to share with the class the PECs that made them successful.
- 4. 4 After all the guide questions are answered, share these with your classmates. You may also compare your insigths, personal knowledge, and relevant experiences on the topic to make the sharing more exciting and engaging. Learning Goals and Targets After understanding the objectives of this module, having gone through pre-assessment, and answering the guide questions, you will be asked to set your own personal goals and targets. These goals and targets will urge you to further achieve the ultimate objective of this module. In the end, these ultimate goals will motivate you to learn more about PECs. Figure 1: Strategic process to achieve the objectives of this module Reading Resources and Instructional Activities After setting your own personal goals and targets in achieving the objectives of this module, check your inherent knowledge of PECs. Answer the following guide questions with the help of your classmates. Task 3: Group Activity Directions: Answer the following guide questions on a separate sheet of paper. Share your answers with the class. 1. Explain the importance of assessing one’s PECs before engaging in a particular entrepreneurial activity. _________________________________________________________ _________________________________________________________ ________________________________________________________. Goals and Targets Learning Activities Ultimate Goal
- 5. 5 2. Are there other strategies or approaches where you can assess your PECs? Explain how these strategies will become more useful in selecting a viable business venture. _________________________________________________________ _________________________________________________________ ________________________________________________________. 3. What are the desirable personal characteristics, attributes, lifestyles, skills, and traits of a prospective entrepreneur? Why are these important? _________________________________________________________ _________________________________________________________ ________________________________________________________. 4. Why is there a need to assess one’s PECs in terms of characteristics, attributes, lifestyles, skills, and traits before starting a particular business? _________________________________________________________ _________________________________________________________ ________________________________________________________. 5. What is the significance of evaluating PECs of a successful entrepreneur? What helpful insights can you draw from this activity? ________________________________________________________ ________________________________________________________ ________________________________________________________. How was your experience in answering the guide questions with your classmates? Were you able to benefit from them? What were the insights you have realized? This time you’re going to study the different topics that will enrich your knowledge of PECs. Read all the important details about the succeeding topic carefully.
- 6. 6 Assessment of Personal Entrepreneurial Competencies (PECs) and Skills vis-à-vis a Practicing Entrepreneur in a Province Entrepreneurial competencies refer to the important characteristics that should be possessed by an individual in order to perform entrepreneurial functions effectively. In this module, you will learn some of the most important characteristics, attributes, lifestyle, skills and traits of a successful entrepreneur or an employee to be successful in a chosen career. Below are few important characteristics / traits / attributes of a good entrepreneur: Hardworking: One of the important characteristics of a good entrepreneur is hardworking. This means working diligently and being consistent about it. Hardworking people keep improving their performance to produce good products and/or provide good services. Confident: Entrepreneurs have self-reliance in one’s ability and judgment. They exhibit self-confidence to cope with the risks of operating their own business. Disciplined: Successful entrepreneurs always stick to the plan and fight the temptation to do what is unimportant. Committed: Good entrepreneurs assume full responsibility over their business. They give full commitment and solid dedication to make the business successful. Ability to accept change: Nothing is permanent but change. Change occurs frequently. When you own a business, you should cope with and thrive on changes. Capitalize on positive changes to make your business grow. Creative: An entrepreneur should be creative and innovative to stay in the business and in order to have an edge over the other competitors.
- 7. 7 Has the initiative: An entrepreneur takes the initiative. You must put yourself in a position where you are responsible for the failure or success of your business. Profit-oriented: An entrepreneur enters the world of business to generate profit or additional income. The business shall become your bread and butter. Therefore, you must see to it that the business can generate income. Listed below are the important skills of a successful entrepreneur: Excellent planner: Planning involves strategic thinking and goal setting to achieve objectives by carefully maximizing all the available resources. A good entrepreneur develops and follows the steps in the plans diligently to realize goals. A good entrepreneur knows that planning is an effective skill only when combined with action. Possesses people skills: This is a very important skill needed to be successful in any kind of business. People skills refer to effective and efficient communication and establishing good relationship to the people working in and out of your business. In day-to-day business transactions, you need to deal with people. A well-developed interpersonal skill can make a huge difference between success and failure of the business. Sound decision maker: Successful entrepreneurs have the ability to think quickly and to make wise decisions towards a pre-determined set of objectives. No one can deny that the ability to make wise decisions is an important skill that an entrepreneur should possess. Sound decisions should be based on given facts and information and lead towards the pre-determined objectives. To firm up what you have learned and have a better appreciation of the different entrepreneurial competencies, read the PECs checklist below, then answer the same.
- 8. 8 Task 4: PECs Checklist Directions: Using the PECs checklist, assess yourself by putting a check ( ) mark in either strengths or development areas column. Interpret the results by counting the total number of check marks in each of the columns. After accomplishing the checklist, form a group and share your insights on the result of the personal assessment. Table 1: PECs Checklist Personal Entrepreneurial Competencies (PECs) of an Entrepreneur Personal Assessment in terms of: Strengths Development Areas Hardworking - Works diligently Confident - Self-reliance in one’s ability Disciplined - Always stick to the plan Committed - Solid dedication Ability to accept changes - Adaptable Creative - Innovative to have edge over other competitors Profit-oriented - Always looking for an opportunity to have/earn income Excellent planner - Strategic thinking and setting of goals
- 9. 9 Possess people skill - Effective and efficient communication skills and relates well to people Sound decision maker - Makes wise decisions towards the set objectives TOTAL Interpretation or Insight: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ _________________________________________________. How was your experience in discovering the strengths and the areas you need to develop? Did you gain a valuable experience in exchanging insights with your classmates? To learn more and deepen your understanding of PECs, do task 5 below. Task 5: Interview Directions: In your province, interview a successful computer technician or entrepreneur whose type of business is related with computer hardware servicing. Focus your questions on PECs and other business-related attributes that helped them become successful. Analyze the results of the interview and reflect on the similarities and/or differences. Write your answer on a separate sheet of paper.
- 10. 10 Sample Interview Guide Name of Proprietor/Practitioner: ____________________________________ Age: _______________ Number of Years in Business: _________________ Business Name: ________________________________________________ Business Address: ______________________________________________ 1. What preparations did you make before you engaged in this type of business or job? ________________________________________________________ ________________________________________________________ _______________________________________________________. 2. What special skills and characteristics do you have that are related with your business or job? ________________________________________________________ ________________________________________________________ _______________________________________________________. 3. How did you solve business-related problems during the early years of your business operation? ________________________________________________________ ________________________________________________________ _______________________________________________________. 4. Did you follow the tips from a successful businessman or practitioner before you engaged in your business? ________________________________________________________ ________________________________________________________ _______________________________________________________. 5. What best business practices can you share with aspiring entrepreneurs? ________________________________________________________ ________________________________________________________ _______________________________________________________. 6. What do you think are the salient characteristics, attributes, lifestyle, skills and traits that made you successful in your business or job? ________________________________________________________ ________________________________________________________ ______________________________________________________.
- 11. 11 Directions: Copy the tables below in your notebook or in a separate sheet of paper. Gather the needed information from the interview to supply answer/s to row 1 in the table below, after which, fill out the second row with your PECs. Personal Entrepreneurial Competencies Characteristics Attributes Lifestyles Skills Traits Successful Entrepreneur in the province My PECs Using the information on the table above, analyze and reflect on the similarities and differences in your answers. Put your reflection on the table you copied in your notebook or in a separate sheet of paper. Write your conclusion on the space provided. Personal Entrepreneurial Competencies Similarities Differences Characteristics Attributes Lifestyles Skills Traits
- 12. 12 Conclusion: ________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ _____________________________________________________________. After performing the activities on the importance of PECs, let’s determine how much you have learned. Perform task 6 to determine how well you have understood the lesson. Task 6: Preparation of a Plan of Action Directions: Use in a separate sheet of paper / in your notebook the information generated from task 5 (Interview) and prepare an action plan that indicates alignment of your PECs to the PECs of a successful entrepreneur in computer hardware servicing in your province. Objective Area Activities Strategies Time Frame Expected Outcome To align my PECs with the PECs of a successful entrepreneur in Computer Hardware Servicing Characteristics Skills Attribute Traits
- 13. 13 Task 7: Essential Questions Directions: Read and study the following questions below. You may use a separate sheet of paper or your notebook to write your answers. 1. Why is there a need to compare and align one’s PECs with the PECs of a successful entrepreneur? ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ _______________________________________________________. 2. How does your action plan help sustain your strong PECs and/or address your development areas? ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ _______________________________________________________. 3. What plan of action will you utilize to address your development areas? ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ _______________________________________________________.
- 14. 14 Module 2 ENVIRONMENT AND MARKET (EM) Content Standards Performance Standards The learner demonstrates understanding of environment and market in Computer Hardware Servicing in one’s province. The learner independently creates a business vicinity map reflective of potential market in Computer Hardware Servicing in a province. Quarter I Time Allotment: 4 hours Aspiring entrepreneur need to explore the economic, cultural, and social conditions prevailing in an area. Needs and wants of the people in a certain area that are not met may be considered business opportunities. Identifying the needs of the community, its resources, available raw materials, skills, and appropriate technology can help a new entrepreneur seize business opportunities. To be successful in any kind of business venture, potential entrepreneurs should look closely at the environment and market. They should always be watchful of existing opportunities and constraints, and to take calculated risks. The opportunities in the business environment are factors that provide possibilities for a business to expand and make more profit. Constraints, on the other hand, are factors that limit business growth, hence reduce the chance of generating profit. One of the best ways to evaluate opportunities and constraints is to conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis. SWOT Analysis is a managerial tool used to assess the environment. It is used to gather important information which is then used in strategic planning. Strengths and weaknesses are internal in an organization. They relate to resources owned by an organization that you have control over and also the extent of its marketing.
- 15. 15 Opportunities and threats exist in the external environment. Opportunities relate to the market, new technologies, and the external factors such as government policies, climate, and trends. Threats replace what the competitors are doing. It also includes legal and other constraints. Now that you have read some important considerations to explore to be successful in any business, you are now ready to explore more about the environment and market. To begin with, let’s find out the competencies that you will master as you finish this module. At the end of this module, you are expected to: identify what is of “value” to the customer, identify the customer to sell to, explain what makes a product unique and competitive, apply creativity and innovative techniques to develop marketable products, and employ a unique selling proposition (USP) to a product and/or service. Now that you have an idea about the things you will learn, take the first challenge in this module – the pre-assessment. Task 1: Multiple Choice DIRECTIONS: Choose the letter of the best answer. Write your answer on a separate sheet of paper. 1. It is generated by examining the goods and services sold in the community. A. business creation C. business concept B. business pricing D. business idea 2. It is a process of making new products which will be sold to the customers. Objectives Pre-
- 16. 16 A. product analysis C. product development B. product conceptualization D. product implementation 3. These are luxuries, advantages and desires that every individual considers beyond necessary. A. wants C. requirements B. desires D. needs 4. It is a factor or consideration presented by a seller as the reason that a product or service is different from and better than that of the competition. A. unique selling plan C. unique pricing policy B. unique selling proposition D. finding value-added 5. A stage in which the needs of the target market are identified, reviewed, and evaluated. A. concept development C. project development B. economic analysis D. refine specification 6. It is the introduction of new ideas to make the product and services more attractive and saleable to the target customers. A. new idea C. product development B. creativity D. innovation 7. It is a managerial tool used to assess the environment and to gather important information that can be used for strategic planning. A. scanning C. WOTS Analysis B. SWOT Analysis D. survey analysis 8. It is creating names, symbol, or designs that identifies and differentiates a product from the other products. A. product naming C. branding B. unique selling proposition D. tagline 9. It is a meaningful and unforgettable statement that captures the essence of the brand. A. product naming C. branding B. unique selling proposition D. tagline 10. These are things that people cannot live without. A. wants C. requirements B. desires D. needs
- 17. 17 Task 2: Guide Questions: Directions: Read and study the guide questions below. Use a separate sheet of paper to write your answer. 1. How does one determine the product or services to be produced and/or to be provided to the target customers? ________________________________________________________ ________________________________________________________ ________________________________________________________ 2. How does one select an entrepreneurial activity? ________________________________________________________ ________________________________________________________ ________________________________________________________ 3. When can one say that a certain product has “value?” ________________________________________________________ ________________________________________________________ ________________________________________________________ 4. Does applying creativity to your product or services important? Why? ________________________________________________________ ________________________________________________________ ________________________________________________________ 5. How can one effectively respond to the needs of the target customer? ________________________________________________________ ________________________________________________________ ________________________________________________________ 6. From the viewpoint of business owner, discuss the importance of scanning the environment and market in generating business ideas. ________________________________________________________ ________________________________________________________ ________________________________________________________
- 18. 18 7. Using self-assessment, explain the level of your confidence in formulating a business idea. ________________________________________________________ ________________________________________________________ ________________________________________________________ After all the guide questions are answered and skills have been mastered, share insights/ideas with your classmates. Discuss your insights, personal knowledge, and relevant experiences on the topic to make it more exciting and engaging. Learning Goals and Target After reading and understanding the objectives of this module and having gone through the pre-assessment and guide questions, you will be asked to set your own personal goals. These goals will urge you to further achieve the ultimate objective of this module. In the end, these goals will motivate you to learn more about environment and market. Figure 2: Strategic process to reach the objectives of this module Goals and Targets Learning Activities Ultimate Goal
- 19. 19 After setting your own personal goals and targets in achieving the objectives of this module, you will have the opportunity to read and learn more about environment and market. You will also be given a chance to do practical exercises and activities to deepen your understanding of the topic. Product Development When we talk of product development, we are referring to a process of making a new product to be sold by a business or enterprise to its customers. Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly-defined customer’s needs, wants and/or a market place. The term development in this module refers collectively to the entire process of identifying a market opportunity, creating a product to appeal to the identified market, and testing, modifying, and refining the product until it becomes ready for production. There are basic, yet vital questions that you can ask yourself about product development. When you find acceptable answers to them, you may now say that you are ready to develop a product and/or render services. These questions include the following: 1. For whom are the product/services aimed at? 2. What benefit will the customers expect from product/service? 3. How will the product/service differ from the existing brand? From its competitor? In addition, needs and wants of the people within an area should also be taken into big consideration. Everyone has his/her own needs and wants. However, each person has different concepts of needs and wants. Needs in business are the important things that an individual cannot live without in a society. These include: 1. basic commodities for consumption, 2. clothing and other personal belongings, 3. shelter, sanitation and health, and 4. education.
- 20. 20 Basic needs are essential to an individual to live with dignity and pride in a community. These needs can obviously help you generate business ideas and subsequently to product development. Wants are desires, luxury and extravagance that signify wealth and expensive way of living. Wants or desires are considered above all the basic necessities of life. Some examples of wants or desires are: fashion accessories, expensive shoes and clothes, travels, eating in an expensive restaurant, watching movies, concerts, having luxurious cars, wearing expensive jewelry and perfume, living in impressive homes, among others. Needs and wants of people are the basic indicators of the kind of business that you may engage in because it can serve as the measure of your success. Some other points that might be considered in business undertakings are the kind of people, their needs, wants, lifestyle, culture and tradition, and their social orientation. To summarize, product development entirely depends on the needs and wants of the customers. Another important issue to deal with is the key concepts of developing a product. The succeeding topic shall enlighten you about the procedure in coming up with a product. Concepts of Developing a Product Concept development is a critical phase in the development of a product. In this stage, the needs of the target market are identified, and competitive products are reviewed before the product specifications are defined. The product concept is selected along with an economic analysis to come up with an outline of how a product is being developed. Figure 3 shows the stages of concept development of a product.
- 21. 21 Figure 3: Stages of Concept Development The process of product development follows the following stages: 1. Identify customer needs: Using survey forms, interviews, researches, focus group discussions, and observations, an entrepreneur can easily identify customers’ needs and wants. In this stage, the information that can be possibly gathered are product specifications (performance, taste, size, color, shape, life span of the product, etc.). This stage is very important because it would determine the product to be produced or provided. 2. Establish target specifications: Based on customers' needs and reviews of competitive products, you can now establish target specifications of the prospective new product and/or services. A target specification is essentially a wish-list. 3. Analyze competitive products: It is imperative to analyze existing competitive products to provide important information in establishing product or service specifications. Other products may exhibit successful design attributes that should be emulated or improved upon in the new product or service. 4. Generate product concepts: After having gone through with the previous processes, you may now develop a number of product Concept Development Identify Customer Needs Plan Remaining Development Project Establish Target Specifications Generate Product Concepts Select a Product Concept Analyze Competitive Products Refine Specifications Perform Economic Analysis
- 22. 22 concepts to illustrate the types of products or services that are technically feasible and will best meet the requirements of the target specifications. 5. Select a product concept: Through the process of evaluation between attributes, a final concept is selected. After the final selection, additional market research can be applied to obtain feedback from certain key customers. 6. Refine product specifications: In this stage, product or services specifications are refined on the basis of input from the foregoing activities. Final specifications are the result of extensive study, expected service life, projected selling price among others are being considered in this stage. 7. Perform economic analysis: Throughout the process of product development, it is very important to always review and estimate the economic implications regarding development expenses, manufacturing costs, and selling price of the product or services to be offered or provided. 8. Plan the remaining development project: In this final stage of concept development, you can prepare a detailed development plan which includes list of activities, necessary resources and expenses, and development schedule with milestones for tracking progress. Finding Value People buy for a reason. There should be something in your product or service that would give consumers a good reason to go back and buy more. There must be something that will make you the best option for target customers; otherwise, they have no reason to buy what you are selling. This implies further, that you offer something to your customers that will make them value your product or service. The value you incorporate in your product is called value proposition. Value proposition is a believable collection of the most persuasive reasons why people should notice you and take the action you’re asking for. It is what gets people moving, what makes people spend for your product or service.
- 23. 23 Innovation Innovation is the introduction of something new in your product or service. This may be a new idea, a new method, or a new device. If you want to increase your sales and profit, you must innovate. Some of the possible innovations for your products are change of packaging, improvement of taste, color, size, shape, and perhaps price. Some of the possible innovations in providing services are application of new and improved methods, additional featured services, and possibly freebies. Unique Selling Proposition (USP) Unique Selling Proposition is the factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition. Before you can begin to sell your product or service to your target customers, you have to sell yourself in it. This is especially important when your product or service is similar to your competitors. USP requires careful analysis of other businesses' ads and marketing messages. If you analyze what they say or what they sell, not just their product or service characteristics, you can learn a great deal about how companies distinguish themselves from competitors. Here's how to discover your USP and how to use it to increase your sales and profit: Use empathy: Put yourself in the shoes of your customers. Always focus on the needs of the target customers and forget falling in love with your own product or service. Always remember, you are making/providing this product not for yourself but for the target customers to eventually increase sales and earn profit. Essential question such as what could make them come back and ignore competition, should be asked to oneself. Most possible answers may be focused on quality, availability, convenience, cleanliness, and reliability of the product or service. Identify customer’s desires. It is very important for you to understand and find out what drives and motivates your customers to buy your product or service. Make some effort to find out, analyze and utilize the information that motivates the customers in their decision to purchase the product or service.
- 24. 24 Discover customer’s genuine reasons for buying the product. Information is very important in decision making. A competitive entrepreneur always improve their products or services to provide satisfaction and of course retention of customers. As your business grows, you should always consider the process of asking your customers important information and questions that you can use to improve your product or service. To enhance your understanding of the topic previously presented, you will be tasked to form a group and arrange an interview with a successful entrepreneur or practitioner. You have to document this interview and present this to the whole class for reflection and appreciation. Task 3: Interview Directions: Select a successful entrepreneur or practitioner. Conduct an interview using the set of questions below. Document the interview and present it to the class. Use a separate sheet of paper. 1. How did you identify your customers? ________________________________________________________ ________________________________________________________ ________________________________________________________ 2. What were your considerations in selecting your customers? ________________________________________________________ ________________________________________________________ ________________________________________________________ 3. Explain how your product or service became unique to other products. ________________________________________________________ ________________________________________________________ ________________________________________________________ 4. Did you consult somebody before you engaged in this business? Cite / give sample insights that you gained from the consultation. ________________________________________________________ ________________________________________________________ ________________________________________________________
- 25. 25 5. What were your preparations before you started the actual business? ________________________________________________________ ________________________________________________________ ________________________________________________________ 6. What creative and innovative techniques did you adapt in the development of your product or service? What was the effect of the innovative techniques to the sales and profits of your business? ________________________________________________________ ________________________________________________________ ________________________________________________________ 7. What strategy did you consider to create a unique selling proposition to your product or service? ________________________________________________________ ________________________________________________________ ________________________________________________________ Task 4: Browsing the Internet Directions: To deepen your understanding of the lesson, perform the following tasks: 1. Browse the internet and view the topics related to: a. customers’ needs and wants b. techniques in identifying customers’ needs and wants c. creativity or innovations in products and services d. unique selling proposition e. product development 2. Prepare a short narrative report about these topics and discuss it to the class. You can highlight the aspect that intensifies your knowledge of product development.
- 26. 26 Task 5: Product Conceptualization Directions: In a separate sheet of paper or in your notebook. Develop your own concept of your product or service by using the figures on this page. Use bullets in every stage of product conceptualization in listing important key ideas. 1. Identify Customers Need - - 2. Target Specifications - - - 3. Analyze a Competitive Product - - - 4. Generate Product Concept - - - 5. Select A product Concept - - - 6. Refine Product Specification - - 7. Prepare a Development Plan - - -
- 27. 27 Generating Ideas for Business The process of developing and generating a business idea is not a simple process. Some people come up with a bunch of business ideas that are not really feasible. There are two problems that arise; first is the excessive generation of ideas that can forever remain as a dreaming stage and the second is when they don’t have ideas and don’t want to become entrepreneurs. The most optimal way is to have a systematic approach in generating and selecting a business idea that can be transformed into a real business. Here are some basic yet very important considerations that can be used to generate possible ideas for business: 1. Examine existing goods and services. Are you satisfied with the product? What do other people who use the product say about it? How can it be improved? There are many ways of improving a product from the way it is made to the way it is packed and sold. You can also improve the materials used in crafting the product. In addition, you can introduce new ways of using the product, making it more useful and adaptable to the customers’ many needs. When you are improving the product or enhancing it, you are doing an innovation. You can also do an invention by introducing an entirely new product to replace the old one. Business ideas may also be generated by examining what goods and services are sold outside the community. Very often, these products are sold in a form that can still be enhanced or improved. 2. Examine the present and future needs. Look and listen to what the customers, institutions, and communities are missing in terms of goods and services. Sometimes, these needs are already obvious and identified right away. Other needs are not that obvious because they can only be identified later on, in the event of certain development in the community. For example, a province will have its electrification facility in the next six months. Only by that time will the entrepreneur could think of electrically-
- 28. 28 powered or generated business such as photo copying, computer service, digital printing, etc. 3. Examine how the needs are being satisfied. Needs for the products and services are referred to as market demand. To satisfy these needs is to supply the products and services that meet the demands of the market. The term market refers to whoever will use or buy the products or services, and these may be people or institutions such as other businesses, establishments, organizations, or government agencies. There is a very good business opportunity when there is absolutely no supply to a pressing market demand. Businesses or industries in the locality also have needs for goods and services. Their needs for raw materials, maintenance, and other services such as selling and distribution are good sources of ideas for business. 4. Examine the available resources. Observe what materials or skills are available in abundance in your area. A business can be started out of available raw materials by selling them in raw form and by processing and manufacturing them into finished products. For example, in a copra- producing town, there will be many coconut husks and shells available as “waste” products. These can be collected and made into coco rags or doormats and charcoal bricks and sold profitably outside the community. A group of people in your neighborhood may have some special skills that can be harnessed for business. For example, women in the Mountain Province possess loom weaving skills that have been passed on from one generation to another. Some communities set up weaving businesses to produce blankets, decorative, and various souvenir items for sale to tourists and lowlanders. Business ideas can come from your own skills. The work and experience you may have in agricultural arts, industrial arts, home economics, or ICT classes will provide you with business opportunities to acquire the needed skills which will earn you extra income should you decide to engage in income-generating activities. With your skills, you may also tinker around with various things in your spare time. Many products are invented this way.
- 29. 29 5. Read magazines, news articles, and other publications on new products and techniques or advances in technology. You can pick up new business ideas from magazines such as Newsweek, Reader’s Digest, Business Magazines, “Go Negosyo”, Know About Business (KAB) materials, and Small-Industry Journal. The Internet also serves as a library where you may browse and surf on possible businesses. It will also guide you on how to put the right product in the right place, at the right price, and at the right time. Key Concepts of Selecting a Business Idea Once you have identified business opportunities, you will eventually see that there are many possibilities available for you. It is very unlikely that you will have enough resources to pursue all of them at once. You have to select the most promising one among hundreds of ideas. It will be good to do this in stages. In the first stage, you screen your ideas to narrow them down to about few choices. In the next stage, trim down the choices to two options. In the final stage, choose between the two and decide which business idea is worth pursuing. In screening your ideas, examine each one in terms of the following guide questions: 1. How much capital is needed to put up the business? 2. Where should the business be located? 3. How big is the demand for the product? Do many people need this product and will continue to need it for a long time? 4. How is the demand met? Who are processing the products to meet the needs (competition or demand)? How much of the need is now being met (supply)? 5. Do you have the background and experiences needed to run this particular business? 6. Will the business be legal and not against any existing or foreseeable government regulation? 7. Is the business in line with your interest and expertise? Your answers to these questions will be helpful in screening which ones among your many ideas are worth examining further and worth pursuing.
- 30. 30 Branding Branding is a marketing practice of creating a name, a symbol or design that identifies and differentiates product or services from the rest. It is also a promise to your customers. It tells them what they can expect from your product or service and it differentiates your offerings from other competitors. Your brand is derived from who you are, who you want to be and what people perceive you to be. Branding is one of the most important aspects in any business. An effective brand strategy gives you a major edge in increasingly competitive markets. A good product can: - deliver message clearly, - confirm credibility, - connect to target prospect, - motivate buyers, and - concretize user loyalty. Here are simple tips to publicize your brand: Develop a tagline. Write a statement that is meaningful, impressive, and easy to remember to capture the essence of your brand. Design a logo. Create a logo symbolic of your business and consistent with your tagline and displace it strategically. Write a brand message. Select a key message to communicate about your brand. Sustain a brand quality. Deliver a promise of quality through your brand. Practice consistency. Be reliable and consistent to what your brand means in your business.
- 31. 31 In generating a business idea, you should first identify the type of business suited to your business idea. You should analyze and scan the potential environment, study the marketing practices and strategies of your competitors, analyze strengths, weaknesses, opportunities, and threats in your environment to ensure that the products or services you are planning to offer will be patronized and within easy reach of target consumers. How to conduct SWOT Analysis: Be realistic about the strengths and weaknesses of your business when conducting SWOT Analysis. SWOT Analysis should distinguish between where your business is today, and where it can be in the future. SWOT Analysis should always be specific. Avoid any gray areas. Always apply SWOT Analysis in relation to your competition, i.e. better than or worse than your competition. Keep your SWOT Analysis short and simple. Avoid complexity and over analysis. SWOT Analysis is subjective.
- 32. 32 Task 6: SWOT Analysis Directions: In a separate sheet of paper or in your notebook list down all your observations for your business idea. Categorize your observations according to strengths, weakness, opportunities and treats. After carefully listing them down, use the stated strategies to come up with a sound analysis, activities and best business idea. Strategies: SW - Maximize on the Strengths to overcome the internal Weakness. OW - Capitalize on the Opportunities to eliminate the internal Weakness. ST - Maximize on your Strengths to eliminate the external Threats. OT - Take advantage of the available Opportunities to eliminate the external Threats. Analysis: __________________________________________________________________________________ __________________________________________________________________________________ Strength (S) Weaknesses (W) - - - - - - - - - - - - Opportunities (O) Threats (T) - - - - - - - - - - - -
- 33. 33 __________________________________________________________________________________ __________________________________________________________________________________ Activities: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ My Best Business Idea: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ To deepen your understanding of the topics previously discussed, you will be asked to perform the following activities: Task 7: Extra Reading and Video Viewing Reading books and watching videos have been considered as some of the most effective educational activities that can help learners broaden their understanding on a certain topic. In this particular task, you will be asked to conduct extra reading and video viewing on the Internet with the following topics: A. Steps in selecting a business idea B. Criteria of a viable business idea C. Benefits of a good brand D. Ways on developing a brand After successfully performing the assigned task, make a narrative report about it and share it with the class.
- 34. 34 Task 8: Designing a Logo Directions: In a separate sheet of paper or in your notebook draw a logo that you will use in your business. Provide a simple statement to describe your logo. Tagline Logo
- 35. 35 Task 9: Making My Own Vicinity Map Directions: In a separate sheet of paper or in your notebook draw a vicinity map reflective of potential market in Computer Hardware Servicing in your province. Provide a simple statement to describe your map. Vicinity Map