Entrepreneurship
Quarter 2 Week 1 & 2
Given with the following pictures, fill in the
following blanks below to form a meaningful
word.
M__P W R
Given with the following pictures, fill in the
following blanks below to form a meaningful
word.
M _ _H N
Given with the following pictures, fill in the
following blanks below to form a meaningful
word.
M_T__I__S
Given with the following pictures, fill in the
following blanks below to form a meaningful
word.
M__H__S
FOUR M’s
The most serious issues in the whole production system are the
inputs and the transformation process. Their quality determines
the quality of the output.
The factors involved in the input and the production process are
usually referred to as the Four M’s of production, namely
Manpower, Method, Machine, and Materials.
Four M’s
Manpower
OUTPUT
Method
Machine
Materials
Manpower
Talks about human labor force involved in the manufacture of
products.
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.
Material
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.
Machine
Discusses about manufacturing 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.
Method
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.
Activity 1
General Directions: Answer the following questions based on your
learnings about 4M’s of production
Problem No. 1. “In your home, when you want to eat egg sandwich
before going to school, your mother would surely prepare it for
you. Your egg sandwich would not be produced without a
process.”
1. Who would be your manpower?
2. What would be your materials?
3. What machines or tools would you use?
4. What methods are needed to produce the egg sandwich?
(Cooking procedures- enumerate them).
Activity 2
Essay Writing: Explain the 4 Ms.
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.
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.
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.
Value Chain &
Supply Chain
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.
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
It 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.
A value chain is a series of consecutive steps that go into
the creation of a finished product, from its initial design
to its arrival at a customer's door. The chain identifies each
step in the process at which value is added, including the
sourcing, manufacturing, and marketing stages of its
production.
Components of Value Chain
Primary Activities
Primary activities consist of five components, and all are essential for
adding value and creating competitive advantage:
1. Inbound logistics include functions like receiving, warehousing, and
managing inventory.
2. Operations include procedures for converting raw materials into a
finished product.
3. Outbound logistics include activities to distribute a final product to a
consumer.
4. Marketing and sales include strategies to enhance visibility and target
appropriate customers—such as advertising, promotion, and pricing.
5. Service includes programs to maintain products and enhance the
consumer experience—like customer service, maintenance, repair, refund,
and exchange.
Components of Value Chain
Support Activities
The role of support activities is to help make the primary activities more
efficient. When you increase the efficiency of any of the four support
activities, it benefits at least one of the five primary activities.
1. Procurement concerns how a company obtains raw materials.
2.Technological development is used at a firm's research and
development (R&D) stage—like designing and developing manufacturing
techniques and automating processes.
3. Human resources (HR) management involves hiring and retaining
employees who will fulfill the firm's business strategy and help design,
market, and sell the product.
4. Infrastructure includes company systems and the composition of its
management team—such as planning, accounting, finance, and quality
control.
Supply Chain
It is a structure of organizations, people, activities,
data, and resources involved in moving a product or
service from supplier to customer.
A supply chain is a network of companies and people
that are involved in the production and delivery of a
product or service. The components of a supply chain
include producers, vendors, warehouses,
transportation companies, distribution centers, and
retailers.
Business Model
The term business model refers to a company's plan
for making a profit. It identifies the products or
services the business plans to sell, its identified
target market, and any anticipated expenses.
Business models are important for both new and
established businesses. They help new, developing
companies attract investment, recruit talent, and
motivate management and staff.
Activity 3
Develop your own Business Model based on your
group’s business concept. Make sure to reflect
the following:
-Products to offer
-Promotion
-Target Customers
-Marketing and Sales Strategies
What is the difference between a
business model and a business plan?
A business plan is a comprehensive road map that
shows how a firm expects to accomplish its goals,
whereas a business model is a conceptual
framework that outlines how a company makes
income
The following are the components found
in a Business Plan.
Introduction- this part discusses what is the business plan all
about.
Executive Summary- is part of the business plan which is the
first to be presented but the last to be made.
Management Section- shows how you will manage your
business and the people you need to help you in your
operations.
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.
The following are the components found
in a Business Plan.
Financial Section - shows the money needed for the business,
how much you will take in and how much you will pay out.
Production Section - shows the area, equipment and materials
needed for the business.
Competitive Analysis - is the strategy where you identify
major competitors and research their products, sales and
marketing strategies.
Market - The persons who will buy the product or services
Organizational chart - is the diagram showing graphically the
relation of one official to another, or others of a company.
