The Four M's of Production

• In business, a brand name is a name, symbol, or feature that distinguishes a seller's goods or services.
• A brand is a key asset and represents the customer's overall experience.
• A good brand can increase customer loyalty, improve corporate image, and create a relevant identity.

The Four M's of Production

• The most serious issues in the whole production system are the inputs and the transformation process.
• The quality of the production system's inputs impacts the ultimate quality of the output.
• The four M's of production include Manpower, Method, Machine and Materials.

Manpower

• Manpower refers to the human labor involved in the manufacture of products.
• It's a main factor of production, requiring competent and skilled employees matched to appropriate jobs.
• Important manpower criteria include educational qualifications, experience, employment status, number of workers, skills and expertise.

Material

• Material refers to the raw materials needed to produce a product.
• Materials form part of the finished products and resources below standard may result in the finished product being unsatisfactory.
• When considering materials, entrepreneurs should consider their cost, quality, availability, supplier credibility, and potential for waste.

Machine

• Machine encompasses the manufacturing equipment used to produce goods or deliver services.
• When selecting equipment, consider the types of products, production system, cost, capacity, availability of spare parts, efficiency, and required skills.

Method

• Method describes the process of transforming raw materials into finished products.
• The resources undergo stages before finalization for delivery to target buyers.
• Method selection depends on the product, mode of production, manufacturing equipment, and required skills.

Product Description

• 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.
• Guidelines for product descriptions include knowing the target market, focusing on product benefits, telling the full story, using natural language and tone, using power words that sell, and using good images.

Prototyping

• Prototyping involves creating a product duplication which may contain details such as color, graphics, packaging, and directions.
• It's an important early step in inventing.
• Benefits include affordability, efficiency or ease of use.
• Features provide descriptive facts about the product or service.
• Product prototypes should be tested to meet customer needs and expectations and pretesting is offering a sample free of charge for consumer to try the product before purchase.

Supplier

• A supplier is an entity that offers goods and services to another business and is part of the supply chain.
• Suppliers may offer a key part of the value within a product, and some may be involved in drop shipping.
• An entrepreneur should choose a potential supplier that values loyalty and contributes to fulfilling business objectives.

Value Chain

• A value chain is the activities through which a company adds value to an item, including production, marketing, and after-sales service.
• The main goal and benefit of a value chain involves making or supporting a competitive advantage.

Supply Chain

• A supply chain is a structure of organizations, including people, activities, data, and resources.
• A supply chain moves a product or service from supplier to customer.
• Supply chain management includes managing a a range of components and procedures such as raw materials storage, inventory handling, warehousing, and movement of finished product to the end consumer.

Business Model

• A business model describes how an organization creates, delivers, and captures economic, social, cultural or other value.
• Development of a business model is also called business model innovation and forms part of a business plan.
• A business model is a company's plan for revenues and profit, detailing the products/services, manufacturing, marketing and expenses.

Important Phases of Developing a Business Model

• Identifying the specific audience
• Establishing business process
• Recording the business resources
• Developing strong value proposition
• Determining key business partners
• Creating a demand for today's generation strategy and be open for innovations

Business Plan

• After developing a business model, the next step is developing a business plan.
• An important tool to have an idea about the future of your business, a business plan guides the implementation and operation.
• The business plan can be used to secure investment, influence potential employees, secure credit, and attract customers.

Components of a Business Plan

• Introduction: Describes what the business plan is all about.
• Executive Summary: An overview of the business plan (written last, presented first).
• Management Section: Explains how the business will be managed and the people needed.
• Marketing Section: Describes the product/service design, pricing, sales location, and marketing strategy.
• Financial Section: Details the money needed, income projections, and expenses.
• Production Section: Describes the area, equipment, and materials needed.
• Competitive Analysis: Identifies major competitors and their products, sales, and marketing strategies.
• Market: Describes the persons who will buy the product or services.
• Organizational Chart: A diagram showing the company's hierarchical structure.