Production Plan and Technical Plan Chapter 4

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What should be detailed in a production plan?

The history of the product development

The marketing strategies for the product

The steps or workflow and manpower requirements (correct)

The financial projections for the first year

Which of the following is NOT a component of the financial plan?

Initial Working Capital

Organizational Cost

Marketing Research Expenses (correct)

Cost of Property, Plant, and Equipment

What is included in the cost of property, plant, and equipment?

Insurance costs for operations

Costs to acquire land, buildings, and machinery (correct)

Salaries of administrative staff

Advertising and promotional costs

The production plan must identify which factor regarding materials?

Raw material requirements and their source of supply Signup and view all the answers

Which element is essential for regulatory and compliance within the production plan?

Process and equipment specification Signup and view all the answers

What is one essential characteristic that the proposed business name must accomplish?

Reflect the business identity and image Signup and view all the answers

What is considered a sign of a risky business opportunity?

High probability of failure Signup and view all the answers

What factor is crucial for the commercialization of research and development (R&D) products?

Government support Signup and view all the answers

Which of the following organizations is NOT required to register with the Cooperative Development Authority?

For-profit businesses Signup and view all the answers

What is the primary reason for a business to register with the Bureau of Internal Revenue?

For taxation purposes Signup and view all the answers

Which personal quality is necessary for successfully starting a business?

Personal competencies Signup and view all the answers

When considering a business location, which factor is NOT mentioned as a consideration?

Availability of government incentives Signup and view all the answers

What must be readily available to successfully start a new venture?

Adequate resources Signup and view all the answers

Which of the following is NOT a reason for an entrepreneur to start their own business?

Personal vacation Signup and view all the answers

Why are business establishments with employees required to register with the Department of Labor and Employment?

To monitor compliance with labor laws Signup and view all the answers

What is essential for the basic feasibility of a new venture?

Market analysis Signup and view all the answers

Which of the following factors contributes to choosing a competitive business location?

Peace and order situation Signup and view all the answers

Which business characteristic is essential for influencing target consumers?

Promoting philosophical values and culture Signup and view all the answers

What do effective marketing strategies rely on for a new business?

Identifying target customers Signup and view all the answers

What aspect is NOT directly related to location considerations for a proposed business?

Cost of labor in the area Signup and view all the answers

In starting a completely new business from scratch, which aspect is NOT typically involved?

Buying an existing company Signup and view all the answers

What is the primary purpose of providing a business address?

To facilitate electronic communication. Signup and view all the answers

How are objectives related to the goals of a business?

Objectives define actions to achieve broader goals. Signup and view all the answers

What should a business description include?

Information about the ultimate vision and mission. Signup and view all the answers

What does a marketing plan study primarily focus on?

The characteristics of buyers and competitors. Signup and view all the answers

What is meant by the 'channel of distribution' in a marketing plan?

The methods and locations for selling the product. Signup and view all the answers

Why is it important for a business to study its market?

To understand competitors and market share. Signup and view all the answers

In the context provided, what does a 'goal' refer to?

A broad and long-term desired achievement. Signup and view all the answers

What should be included in the product description of a business?

The type of product or service intended to be produced. Signup and view all the answers

Which of the following is NOT a necessary step for registering a new business?

Obtaining a trademark for the business logo Signup and view all the answers

What is the primary function of the Department of Science and Technology (DOST) mentioned in the content?

Providing research and development for new products Signup and view all the answers

Which statement is accurate regarding the registration of a single proprietorship?

Single proprietorships do not need to register for a legal personality. Signup and view all the answers

What is another term for a business plan as stated in the content?

Venture plan Signup and view all the answers

Which aspect of the business plan is emphasized as important in the content?

Proposed name of the business Signup and view all the answers

What does the registration complexity depend on?

The legal form of the business Signup and view all the answers

Which entity is responsible for administering the registration of business names?

Department of Trade and Industry Signup and view all the answers

How is the business plan described regarding its structure?

There is no universally accepted standard format. Signup and view all the answers

Study Notes

Degree of Risk in Business

A business opportunity is considered risky when the likelihood of failure is high.
Critical phase: actualization of the entrepreneurial mindset after recognizing opportunities.
Personal competencies, technical skills, and relevant experiences are essential for business success.

Research and Development

Strong R&D efforts are necessary for product innovation.
Government support is vital for commercializing R&D products.
Entrepreneurs view starting a business as a proactive decision to seize opportunities.

Availability of Resources

Access to raw materials, skilled labor, and necessary equipment is crucial for launching a business.
Basic feasibility, competitive advantages, and marketing strategies are critical for a new venture.

Ways to Start a New Venture

Founders can establish businesses from scratch or leverage existing structures and networks.
Collaboration with industry chambers, civic groups, and educational institutions can enhance business prospects.

Legal Requirements for Business Registration

All businesses must obtain a mayor's permit or municipal license for operation.
Registration is needed with the Department of Trade and Industry (DTI) for business names, especially if not using the owner’s true name.
The Securities and Exchange Commission (SEC) grants legal personality to partnerships and corporations, while sole proprietorships are exempt from SEC registration.
Employers must register with the Social Security System (SSS) and the Department of Labor and Employment (DOLE) for compliance with labor laws.

Business Planning

A business plan serves as a comprehensive roadmap for entrepreneurs.
It includes an introduction with business name proposals, location considerations, and strategic objectives.

Outline of Business Plan Sections

Introduction: Proposed name and business goals.
Marketing Plan: Analysis of buyer characteristics, pricing policy, and promotional strategies.
Production Plan: Details on product/service production, including raw materials, equipment needs, and process controls.
Financial Plan: Estimation of costs, operational expenses, and required working capital.

Goals and Objectives

Goals represent broad, long-term desired achievements, while objectives define specific actions taken to reach those goals.
Clearly defined objectives help guide team actions toward fulfilling the overall goals.

Production and Technical Plan Details

Identifies product features, material sources, production processes, and distribution logistics.
Compliance with regulatory standards is critical for operational success.

Financial Considerations

Project costs must include property, plant, and equipment expenses, as well as organizational costs for licenses and permits.
Initial working capital is necessary to sustain operations during the early stages of business establishment.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz focuses on Chapter 4 of the Production Plan and Technical Plan, detailing how to determine your product's production process. It covers identifying raw materials, equipment needs, workflows, and manpower requirements necessary for effective product output.