ENTREPRENEURSHIP

In developing a business plan, we also have to consider the importance of the 4M’s of operations in all business opportunities.
Because it helps you to identify the problems of the business in the future and in actual situation especially in the production
process and marketing. In the application of your 4M’s of production, it is best to consider the customer’s point of view in terms
of their influences as to why they will buy a particular product, does your product aim to answer each consumer’s wants or
needs and meet up with their expectations over the product, and how do suppliers, value chain and supply chain affects the
business and production.

4 M’s of Operations in Relation to the Business Opportunity

and Developing Business Model

In your previous lesson, you learned about the 7P’s of Marketing Mix - Product, Place, Price, Promotion, People, Packaging and
Positioning in relation to business opportunity, wherein marketing is about creating and accumulating customers. Marketing
plans are intended to capture a market portion and to setback competitors. Brand name was also introduced, where it is a
name, symbol, or other feature that distinguishes a seller’s goods or services in the marketplace. Your brand is one of the
greatest assets because your brand is your customers’ over-all experience of your business. Experts believed that a good brand
can result in better loyalty for its customers, a better corporate image and a more relevant identity.

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  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
undergo 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 It 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. 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 tr;y 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. 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. 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; Identifying the specific audience; establishing business
process; recording a business resources; developing strong value proposition; determining key business partners; and creating a
demand for today’s generation strategy and be open for innovations. After developing a business model, we will proceed in
developing a business plan. To be able to successfully complete this module, 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. 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.” “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.” “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.

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.

 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.
 ENTREPRENEURSHIP

Name: ______________________________________________________________ Strand

Complete the statements below and write your answers on the space provided.

4M’s of operation

1. _____________ talks about human labor force involved in the manufacture of

products. It is measured as the most serious and main factor of production.

2. _____________ is about raw materials necessary in the production of a

product.

3. _____________ discusses the process or way of transforming raw materials to

finished products.

4. The purpose of a _____________________ is to provide customers with details

around the features and benefits of the product so they’re obliged to buy.

5. A duplication of a product as it will be produced, which may contain such details

as color, graphics, packaging and directions. One of the necessary early steps

in the inventing method is creating a _______________.

6. ____________ are your business partners, without them your business will not

live.

7. ______________________ describes the reasons of how an organization

creates, delivers, and captures value in economic, social, cultural or other

contexts.

8. ____________________ is an important tool for you to have an idea about the

future of your business.

9. ____________________ is part of the business plan which is the first to be

presented but the last to be made.

10.____________________ shows the design of your product/service; pricing,

where you will sell and how you will introduce your product/service to your

market.