ENTREPRENEURSHIP Quarter 1 Module 2023-2024 PDF

ENTREPRENEURSHIP Level: SENIOR HIGH SCHOOL Semester: FIRST Subject Group: APPLIED SUBJECT Quarter: FIRST Course Description: This course deals with the concepts, underlying principles, processes...

ENTREPRENEURSHIP Level: SENIOR HIGH SCHOOL Semester: FIRST Subject Group: APPLIED SUBJECT Quarter: FIRST Course Description: This course deals with the concepts, underlying principles, processes and implementation of a business plan. The preliminaries of this course include the following: 1) discussion on the relevance of the course; 2) explanation of key concepts of common competencies; 3) explanation of core competencies relative to the course; and 4) exploration of career opportunities. Course Requirements: Grading System Performance Check 30% Enabling Assessment Activity 30% Long Test 15% Culminating Performance Task 25% Quarterly Grade 100%  1 Prerequisite Assessment 1. Associate at least five words on how you understand “Entrepreneurship “. 2. Why is Entrepreneurship important to an individual? the society? the nation? LESSON 1 KEY CONCEPTS AND RELEVANCE OF ENTREPRENEURSHIP Learning Materials: Module, pen, paper, Management books, internet (if applicable) Prerequisite Content-knowledge: Self – test about entrepreneurship Prerequisite Skill: Identifying one’s entrepreneurial abilities INTRODUCTION: A. TIME ALLOTMENT: 4 hours B. CONSULTATION: For questions and clarifications, you may consult your subject teacher on the assigned schedule via face-to-face, FB messenger, mobile number. C. RUA: At the end of the lesson, you should be able to: Discuss the relevance of the course; explain the key components of entrepreneurship; and identify the traits of an entrepreneur D. INSTITUTIONAL VALUES: Critical Thinking, Creativity, Curiosity Learners will be able to apply Critical Thinking, Creativity, and Curiosity in: Identifying the traits of an entrepreneur. I. OVERVIEW OF THE LESSON This lesson will discuss basic concepts of entrepreneurship. STUDENT’S EXPERIENTIAL LEARNING Chunk 1: “Qualities of Entrepreneurs: A Self-Assessment” Instruction: Examine yourself on your own personal characteristics and see if you possess some of the entrepreneurial traits. Check out, too, which areas you can improve on. As truthfully as you can, check your answer on the following statements. ENTREPRENEURIAL SELF-TEST No. Qualities Check your answer Yes Maybe No 1. I am persistent 2. When I am interested in a project, I need less sleep. 3. When there is something I want, I keep my goal clearly in mind 4. I examine mistakes and learn from them. 5 I keep New Year’s Resolution. 6 I have a strong personal need to succeed 7 I have new and different ideas. 8 I am adaptable. 9 I am curious. 10 I am intuitive. 11 If something cannot be done, I find a way. 12 I see problems as challenges. 13 I take chances 14 I will gamble on a good idea even if it is not sure thing. 15 To learn something new, I explore unfamiliar objects. 16 I can recover from emotional setbacks.  17 I feel sure of myself 18 I am a positive person. 19 I experiment with new ways to do things 20 I am willing to undergo sacrifices to gain possible long term rewards. 21 I usually do things my own way. 22 I tend to rebel against authority. 23 I often enjoy being alone. 24 I like being in control. 25 I have a reputation for being stubborn. 13 I take chances 14 I will gamble on a good idea even if it is not sure thing. 15 To learn something new, I explore unfamiliar objects. 16 I can recover from emotional setbacks. 17 I feel sure of myself 18 I am a positive person. 19 I experiment with new ways to do things 20 I am willing to undergo sacrifices to gain possible longterm rewards. 21 I usually do things my own way. 22 I tend to rebel against authority. 23 I often enjoy being alone. 24 I like being in control. 25 I have a reputation for being stubborn. Scores per answer: Yes - 3 points Maybe - 2 points No - 1 point Total Score Interpretation: 60-75 - You have the qualities of an entrepreneur. 48-59 - You have the potential but need to push yourself. 37-47 - You may want to start a business alone. Below 37 - Self-employment may not be for you. Fill up the sheet below based on the score findings and interpretations you obtained. Name: _____________________________________________ Total Score: _________ Total Score Interpretation: ____________________________ 1. My entrepreneurial qualities that I need to improve (where I answered “No”) _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________  3 Colegio de Los Baños - ENTREPRENEURSHIP II. LESSON PROPER A. Entrepreneurship and Entrepreneur Entrepreneurship is… An entrepreneur is… The act of creating a business or A person who sets up a business with businesses while building and scaling it to the aim to make a profit and creates a generate a profit. new business, bearing most of the risks An important driver of economic growth and enjoying most of the rewards. and innovation. An innovator, a source of new ideas, What people do to take their career and goods, services, and business/or dreams into their hands and lead it in the procedures. direction of their own choice. Playing a key role in any economy, using About building a life on your own terms. the skills and initiative necessary to No bosses. No restricting schedules. And anticipate needs and bring good new ideas no one holds you back. to market. Entrepreneurship is one of the resources economists categorize as integral to production; the three resources are land/natural resources, labor and capital. An entrepreneur combines these three to manufacture goods or provide services. They typically create a business plan, hire labor, acquire resources and financing, and provide leadership and management for the business (www.investopedia.com). Note: Understanding what an entrepreneur is can help more people recognize the value they contribute to the world. Entrepreneurs take the idea and execute it while entrepreneurship is about execution of ideas. B. Relevance/Importance of Entrepreneurship: I. Importance of Entrepreneurship 1. Development of managerial capabilities: The biggest significance of entrepreneurship lies in the fact that it helps in identifying and developing managerial capabilities of entrepreneurs. An entrepreneur studies a problem, identifies its alternatives, compares the alternatives in terms of cost and benefits implications, and finally chooses the best alternative. 2. Creation of organizations: Entrepreneurship results into creation of organizations when entrepreneurs assemble and coordinate physical, human and financial resources and direct them towards achievement of objectives through managerial skills. 3. Improving standards of living: By creating productive organizations, entrepreneurship helps in making a wide variety of goods and services available to the society which results into higher standards of living for the people. Possession of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc. are pointers to the rising living standards of people, and all this is due to the efforts of entrepreneurs. 4. Means of economic development: Entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, development of managerial skills, etc., and all these factors are so essential for the economic development of a country. Economy wise, higher earnings can help boost national income and tax revenue, and entrepreneurs contribute in other ways as well, such as investing in community projects and supporting local charities.  4 Colegio de Los Baños -ENTREPRENEURSHIP Chunk 2: Relevance of Entrepreneurship to SHS Students (www.europeanentrepreneurship.com) 1. To prepare students for livelihood even before college. 2. Entrepreneurship education aids students from all socioeconomic backgrounds to think outside the box and nurture unconventional talents and skills. 3. Entrepreneurship develops their initiative and helps them to be more creative and self- confident in whatever they undertake and to act in a socially responsible way. 4. It exposes students to numerous opportunities to learn how to think critically and analyze the pieces on the board. 5. Being aware of all the important factors and seeing how they affect each other is the foundation of a smart decision-making process. 6. Students have to be exposed to real-world examples and learn from their own experience. 7. Entrepreneurship education requires students to be innovative, creative and collaborative with others. 8. Entrepreneurship education provides budding entrepreneurs with the skills and knowledge to come up with business ideas and develop their own ventures. Examples: 1. An enterprise can involve a new concept. This usually means creating or stumbling on a new idea or concept and creating or inventing something radically new. The inventor then builds a new business around this product. An example of a keen innovator who had the uncanny knack of creating new products that captured people’s imaginations and convinced that they needed these products is the genius maverick Steve Jobs. 2. An enterprise can be built on an existing concept, but giving rise to a new business. This usually means creating a new business based on the existing concept. An example of this is Mang Inasal. It offers chicken in a new light: grilled chicken as fast food. With this new concept, Mang Inasal, which started in the Visayas, took the country by storm because its founder, Edgar “Injap” J. Sia, correctly perceived a need of people for affordable, quick-serve inihaw or grilled chicken. Thus, this business was founded and flourished, to the extent of offering very real competition to the Jollibee’s popular Chicken Joy. 3. An enterprise can involve an existing concept and an existing business. An entrepreneur can have a laundry business. Dean of Clean, for example, had three branches in Metro Manila, mostly in the center and south areas of the metropolis. The son of the owner, while still in college, was permitted by his parents to set up a fourth branch in Quezon City. Although the new store was built on an existing business - it is still a laundry shop, it required the young entrepreneur to take some personal, family, and financial risks. The setting up of branches or franchises can be considered an example of this type of enterprise. C. Types of Enterprises According to Concept: Thus, in summary, an entrepreneurial enterprise can involve: a. New concepts and/or a new business b. Existing concept and/or new business c. Existing concept/existing business The Traits/Qualities of an Entrepreneur: a. Initiative - does things before being asked b. Proactive - identifies and utilizes opportunities  5 Colegio de Los Baños -ENTREPRENEURSHIP c. Perseverance - works against all odds to overcome obstacles and is never complacent with success d. Problem-solver - introduces innovative solutions to any obstacles and problems in the enterprise e. Persuasion - convinces customers an financiers to patronize his business f. Self-confidence - makes decisions and sticks to his decisions g. Self-critical - learns from his mistakes and from experiences of others h. Planner - collects information, prepares a plan, and monitors performance i. Risk-taker - willing to take calculated risks j. Creativity - the ability to come up with clever, workable solutions k. Business like Attitude - possessing the knowledge of your chosen business and having the savvy to conduct business. l. Confidence - having a firm belief in your own capabilities and your chances of success. m. Relation Skills - the ability to get along with others, to inspire cooperation, confidence and loyalty n. Communication Skills - the ability to express yourself and to understand others so that ideas can be shared. o. Ability to Make Decisions - the talents to analyze complex situations and draw conclusions that will make the business succeed  6 Colegio de Los Baños -ENTREPRENEURSHIP ANSWER SHEET (Please submit only the answers. Do not return the entire module.) Name: ________________________________ Section: __________________ LAST NAME, FIRST NAME MIDDLE INITIAL Enabling Assessment Activity No.1 ENGAGEMENT. Answer the following questions below. Write your answer on the space provided. (10pts. each) 1. Describe entrepreneurship. ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 2. What are the three (3) types of entrepreneurial enterprise? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 3. Describe an entrepreneur. ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 4. What are the entrepreneurial traits? Discuss its importance to the success of the business venture. ____________________________________________________________________________ ____________________________________________________________________________ __________________________________________________________________________ 5. What is the relevance of entrepreneurship? Discuss how important it is in the country. ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ASSIMILATION QUESTION: What appropriate product and/or business can be conceptualized during this POST Covid 19 Pandemic? Explain why this product and/or business can be considered. You may use the back space of this page for your answer. (50 points) Rubrics: Understanding of the topic - 25pts Organization - 10pts Coherence of Ideas - 15pts Total - 50pts ___________________________________________________________________ SIGNATURE OVER PRINTED NAME OF PARENT/GUARDIAN DATE: ______________  7 Colegio de Los Baños -ENTREPRENEURSHIP Prerequisite Assessment 1. How do you imagine yourself five to ten years from now? 2. What entrepreneurial competencies do you think you possess? want to develop? LESSON 2 JOB OPPORTUNITIES FOR ENTREPRENEURSHIP AS A CAREER Learning Materials: Module, pen, paper, Management books, internet (if applicable) Prerequisite Content-knowledge: Basic concepts in entrepreneurship Prerequisite Skill: Identifying one’s entrepreneurial abilities INTRODUCTION: A. TIME ALLOTMENT: 4 hours B. CONSULTATION: For questions and clarifications, you may consult your subject teacher on the assigned schedule via face-to-face, FB messenger, mobile number. C. RUA: At the end of the lesson, you should be able to: Explain the core competencies in Entrepreneurship; and Explore job opportunities for Entrepreneurship as a career D. INSTITUTIONAL VALUES: Critical Thinking, Creativity, Curiosity Learners will be able to apply Critical Thinking, Creativity, and Curiosity in: Exploring core competencies, and job opportunities for entrepreneurship as a career E. OVERVIEW OF THE LESSON This lesson will discuss the core competencies, and job opportunities in entrepreneurship. STUDENT’S EXPERIENTIAL LEARNING  Chunk 1: “Read and You’ll Be Inspired! Ms. Sargado is a college graduate. She has been waiting for a job in a certain company. While waiting for a job, she observed that most of their neighbors were fond of planting ornamental plants. It came to her mind that they might need pots to maximize space and at the same time it will enhance the beauty of plants. So, she came up with the idea of making pots of her own design to sell. She only started with a few designs but later on her customers could already avail a variety of designs. In order for her to increase her market, she launched a small store of pots in their hometown where many retailers and wholesalers could already avail in volume until such time that she was able to hire employees to work in her business. She was very happy and became more passionate in making and selling pots; she no longer pursued her job application in other companies. Later on, she plans to market her pots in other places and sell online. These have caused her to ask consultations from experts and others who could help her. Process Questions: 1. What do you think were the reasons of Ms. Sargado in coming up with pots as business? 2. What drove her not to pursue her job application in other companies? 3. Do you think Ms. Sargado chose the right career? Give your reasons. 4. Can you say that Ms. Sargado is already satisfied and happy with her chosen career? If yes, what caused her to be satisfied and happy? 5. Can you identify persons who could possibly contribute in running the business of Ms. Sargao?  8 Colegio de Los Baños -ENTREPRENEURSHIP Chunk 2: Core Competencies in Entrepreneurship Three (3) Levels of Competencies i Personal Competencies - these are your abilities to ground yourself so that you are secure and self-assured in whatever situation you may find yourself. Ex. Creativity, determination, integrity and self-criticism ii Interpersonal competencies - these are your ability to lead, influence, communicate, supervise, negotiate and control people at all levels. It is the ability to get along with people and motivate people to perform jobs. Entrepreneurs must effectively manage people. Ex. Communication, engagement, delegation iii Business competencies- these is a set of particular abilities and knowledge that sets a company apart from its competitors. It also refers to the key characteristics that successful entrepreneurs should have in order to be successful. Ex. Business vision, financial management, networking Core vs. Common Competencies in Entrepreneurship Competencies in entrepreneurship play a leading role in making entrepreneurs successful (baseread.com) Entrepreneurial competencies facilitate opportunity recognition, help adapt rapidly to changes, enhance business performance, strengthen the firm’s competitive position, and stir the achievement of organizational success. It is the sum total of the personality, skills and knowledge that the entrepreneur possesses, which are necessary to effectively perform their functions and responsibilities (Edralin, D.M.,2016). Competence is an underlying personal characteristic which leads to superior performance. It is a combination of knowledge, skills, attitudes and motives. (baseread.com) Core competence is the foundation for sharpening a company’s competitive edge and it guides brand reputation, business growth and marketing strategy (www.thebalancemb.com) Common competence describes the knowledge, skills and abilities found in most or all positions (www.ifpm.nifc.gov) Example of Core and Common Competencies in Entrepreneurship Core Competencies Common Competencies 1. Organizing and Planning 1. Analytical and critical thinking 2. Cash flow management 2. Decision making 3. Personnel management 3. Leadership 4. Operations and distribution 4. Communication 5. Customer Relations 5. Computer Literacy 6. Bookkeeping/Accounting 6. Human Relations 7. Promotions and Advertising 7. Managing Change 8. Resources Management 8. Creative Thinking 9. Financial Management 9. Time Management 10. Information management 10. Conflict Management  9 Colegio de Los Baños -ENTREPRENEURSHIP 2. Job Opportunities for Entrepreneurship as a Career. Job Opportunity - an opportunity for employment. Career - a long-term professional journey you may determine based on your passions. - the path you embark upon to fulfil your professional goals and ambitions. - A career in entrepreneurship can be made in virtually any field, depending on your interests. Job Opportunities for Entrepreneurship Job Opportunities Example 1. Business Consultant. They are those who can When Mr. Tan helps to improve business go to client sites, identify problems, and fix processes to do better and will partner them. They assess and create solutions to help with executive management to review the company more efficiently meet its goal. Also the current business operations known as management analysts, they work in processes and make recommendations areas that include marketing, human resources, to improve efficiency, enhance customer management, and accounting. The duties for service, and reduce company costs; he business consultants generally begin with is a business consultant. understanding what clients wish to improve or fix 2. Sales Manager. Someone who knows how to Mr. Go presented the new artistic designs represent a company, manage accounts, and of Leo Arts and Designs in the market and follow up leads. Their responsibilities include implemented his strategic plans that will designing and implementing a strategic sales make the designs to be the top of the mind plan that expands company's customer base of the customers. Here, Mr. Go is a sales and ensure its strong presence. manager. 3. Research and Development Director. Johnson & Johnson today announced the Someone who understands business concepts, selection of a lead COVID-19 vaccine systems, procedures, and practices. Looking for candidate from constructs it has been used facts and information, interpreting data and working on since January 2020; the making conclusions, and recommending significant expansion of the existing courses of action. They are responsible for partnership between the Janssen controlling, coordinating, and carrying out Pharmaceutical Companies of Johnson & research in various company departments, Johnson and the Biomedical Advanced guaranteeing the continuous innovation of Research and Development Authority products and work processes (BARDA). Here, they need researchers to do the necessary research and look into the best and accurate vaccine to offer in the market.  10 Colegio de Los Baños -ENTREPRENEURSHIP Job Opportunities Example 4. Fundraiser. Someone who raises money for a Maria is passionate in helping others and specific purpose and meant not to make a profit oversee campaigns and events to raise but instead to maintain the organization or money and other kinds of donations for an toward the purpose for which it was created. organization. She ensures that campaigns They organize events, building networking are effective by researching potential relationships and raising money for a cause. donors. Here, Maria is a fundraiser. They also may design promotional materials and increase awareness of an organization's work, goals, and financial needs 5. Teacher. These educators train their students to Mr. Cruz inspires young people to have a solve business problems, plan for future growth, vision for society. He shares his and strategize how to run a business efficiently experiences and insights about business and effectively. Many business educators have and success. He also teaches them how to experience working in business as well as a make business plan and how to implement background in education, transferring the skills it. Here, Mr. Cruz is a teacher. and knowledge students need to become qualified business professionals. 6. Talent Recruiter. Someone whose job is in Mr. Gonzales ensures that the company sourcing, attracting, recruiting, interviewing, and attracts, hires, and retains the best on-boarding employees to an organization. employees, while growing a strong talent Someone who is people savvy and has an in- pipeline. Here, Mr. Gonzales is a talent depth business sense as well. recruiter. 7. Business Reporter. Someone who can write Ms. Silva was tasked to give a report on the articles is in a prime position to take the lead on business story of a full time housewife who covering a local business beat. They write successfully runs her new recipe of banana. breaking news and business stories in unique He wanted to get accurate information. So and interesting ways to increase readership. he planned to conduct an actual interview to the owner. He prepared interview questionnaires to be used in gathering the information about the success story. Here, Ms. Silva is a business reporter 8. New Venture Creator. Someone who launches a Young entrepreneur Aya Fernandez turned company, starts a new venture in a family her school science project into an eco- enterprise, or commercializes a technology. friendly social enterprise. Project Lily PH They are entrepreneurial people whose primary manufactures Eco-Uling which are role is creating new business via creating new charcoals made of water hyacinth, agri- start-ups or scaling growing companies, having forest wastes and coconut husks. The Miss significant and direct stake in the actual Teen Philippines titlist has shown how business success. Filipinas are more than just beauty queens as she leads a manpower composed of persons with disabilities and women in her community. Aya Fernandez is a new venture creator.  11 Colegio de Los Baños -ENTREPRENEURSHIP ANSWER SHEET (Please submit only the answers. Do not return the entire module.) Name: ________________________________ Section: _______________________ LAST NAME, FIRST NAME MIDDLE INITIAL ENGAGEMENT (Week 2) PERFORMANCE CHECK No. 1 Instruction: Read the questions and choose the correct letter of your answer from the words inside the box. 1. Entrepreneurship can be a long-term professional journey you may determine based on your passions. Therefore, entrepreneurship can be a ___________________. 2. Who understand business procedures and practices? ___________________. 3. Who recommend solutions to company problems? ___________________. 4. Who shares experiences and insights about business and success? ___________________. 5. Who is raising money for a cause? ___________________. 6. Who interview famous business personalities? ___________________. 7. Who is making agreements with people? ___________________. 8. Ariel is working in a manufacturing company. He introduced a unique product in the market for sale. What is the job of Ariel? ___________________. 9. Who launch a company, start a new venture in a family of enterprise or commercializing a technology? ___________________. 10. Jack Ma is the co-founder of Alibaba, an online e-commerce company. If Jessica Soho will be given a chance to interview Jack Ma regarding his success story in business, she is a ___________________. 11. One of the restaurants in the city is facing bankruptcy due to the extended Enhanced Community Quarantine caused by COVID-19. The owner of the restaurant is planning either to invest with another kind of business or to permanently stop on running a business. Who is the best person that could help the owner? ______________. 12. Anna is a graduate of Senior High School. She started baking her own discovered pastry and sells it until such time that she launched a small bread and pastry in the town. What is the job of Anna? ___________________. 13. If you will raise fund for a certain organization, you are a ___________________. 14. Mr. X is passionately sharing his experiences and insights in business. He also encouraging his listeners to maximize their full potential to profitable ventures. Who do you think is Mr. X? ___________________. 15. Who represent a company for a product or service? ___________________. Fundraiser Career Teacher Sales Manager Business Reporter New Venture Creator Talent Recruiter Research and Development Director Business Consultant  12 Colegio de Los Baños -ENTREPRENEURSHIP Prerequisite Assessment 1. How do you imagine yourself five to ten years from now? 2. What entrepreneurial competencies do you think you possess? want to develop? LESSON 3 RECOGNIZE A POTENTIAL MARKET Learning Materials: Module, pen, paper, Management books, internet (if applicable) Prerequisite Content-knowledge: Basic concepts in entrepreneurship Prerequisite Skill: Identifying one’s entrepreneurial abilities, and basic competencies INTRODUCTION: A. TIME ALLOTMENT: 4 hours B. CONSULTATION: For questions and clarifications, you may consult your subject teacher on the assigned schedule via face-to-face, FB messenger, mobile number. C. RUA: At the end of the lesson, you should be able to: Recognize a potential market Identify the market problem to be solved or the market need to be met; Analyze the market need; Determine the possible product/s or service/s that will meet the need; D. INSTITUTIONAL VALUES: Critical Thinking, Creativity, Curiosity Learners will be able to apply Critical Thinking, Creativity, and Curiosity in: Recognizing a potential market; and identifying the market problem to be solved or the market need to be met. E. OVERVIEW OF THE LESSON This lesson will discuss the market recognition and its potentials. STUDENT’S EXPERIENTIAL LEARNING Chunk 1: “Read and You’ll Be Inspired! How did Mercury Drug start? Just like other entrepreneurial success stories, Mariano found opportunities for entrepreneurship after World War 2. Mariano had been working in a local drugstore when the war destroyed several businesses in the city. Mariano saw the need to supply sulfa drugs, which were used to treat bacterial infections. He started to buy sulfa tablets and sold them at affordable prices. Soon, other people followed and adapted Mariano’s strategy. However, only Mariano sold high-quality sulfa tablets, which ensured him a steady clientele. With his hard work and dedication to build up savings, he was able to put up his first drug store in 1945, which he named Mercury Drug. The Roman god Mercury is known for speed. He also carries the caduceus, which is a symbol in the medical industry. Mariano invested his earnings into the company and introduced many innovations in the service. Among these innovations were a drug-delivery service to clients and locations that are open 24/7 because he knew people would be needing medicines any time of the day. By the time Mariano opened his second Mercury Drug at the newly constructed Ayala shopping center in Makati, he had invested in technological innovations, such as biological refrigerators and computer-guided controls. Mariano’s dedication to his business has allowed Mercury Drug into 700 stores and a widely recognized name for quality pharmaceuticals. The success story of Mariano tells us that a prospective entrepreneur needs to come up with a good idea. This will serve as the foundation of the new venture. Sometimes an entrepreneur sees a  13 Colegio de Los Baños -ENTREPRENEURSHIP market need and has an idea for a product or service to fill it. Other times an entrepreneur gets an idea for a product or service and tries to find a market for it. In his story, how did he find the need to put up a drug store? Is he able to recognize immediately his potential market for the said business venture? Chunk 2: What is Potential Market? The entrepreneur must acquire the required competency in order to gain competitive advantage. After assessing his/her entrepreneurial competency and the business competency of his/her chosen venture, the entrepreneur now determines his/her market or customers. Why is there a need for the entrepreneur to clearly identify and define the customers of his/her proposed business venture? The reason is very simple: Not all will become customers of the business venture. 1. Potential market is the part of the total population that has shown some level of interest in buying a particular product or service. Potential market is also called Total addressable market (TAM) (MBA Skool Team, 2018). 2. A potential market is the part of the market you can capture in the future. It includes the demographic groups that are not currently your customers but could become customers in the future (Lake, L, 2019). 3. Market potential is the total demand for a product in a given business environment (Bhasin, H., 2018).The size of the potential market gives an estimate of what all a company should do and how much it should invest. The Importance of Potential Markets (Lake, L., 2019) Potential markets are an important part of a business's future growth. Ensure the future of your business by identifying new customers. Think proactively about ways for your business to grow and change. Show the potential of your business to investors or collaborators. Increase your revenue. Create a Plan B that will weather changes in the economy or market. How to Identify Your Potential Markets (Lake, L., 2019) Consider every target demographic that you currently sell to, as well as those you have not yet targeted. Identify what they have in common with each other, new milestones that they will encounter in their lives that will impact their buying patterns, and where they overlap or diverge from your current customers. Ask yourself these questions that will help you identify both new ways to market your current products or services, as well as new products and services that you can begin selling. What other products do my customers need now? What related products will they need in the future? Who else could make use of the products I am selling now? What demographic information does that new group have in common with my current customers? What demographic information does that new group have in common with each other? For example, a business that makes face masks and PPEs could identify potential markets such as:  14 Colegio de Los Baños -ENTREPRENEURSHIP ▪ Hospitals and other health related industries whose employees are prone to COVID -19 virus and other viruses. Business industries and other organizations who want to ensure the health condition of their employees. Employees and workers who need to report to work to earn income. Households who needs to go out for their necessities. Reaching Your Potential Market (Lake, L., 2019) Once you've identified and chosen a potential market to begin targeting, you will need new marketing strategies in place to communicate with them. Use this profile to identify: The demographic information that people in a group have in common. The best forms of media to reach them. How they prefer to shop and make purchases. The concerns, struggles, or problems that you can help them overcome. What values matter to them, both in everyday life and when shopping. The language that resonates with them. The figure below depicts what is a potential market with respect to the total population and how it can be converted to a penetrated market: Available Market Prospects who are willing and capable (have sufficient resources) buyers, and have access to a particular market or service (www.businessdictionary.com). Defined as the number of people who are both willing and capable of buying a particular product or service in a particular market (MBA Skool Team, 2020). Target Market Refers to a group of potential customers to whom a company wants to sell its products and services. Target markets are generally categorized by age, location, income, and lifestyle. Defining a specific target market allows a company to home in on specific market factors to reach and connect with customers through sales and marketing efforts. (Kenton, W., 2019). Penetrated Market A set of customers or clients who are already using a particular product or service. A penetrated market means that the potential users of a product or service are aware of it, and in many cases are active consumers of it. (www.businessdictionary.com). The size of a potential market helps a company understand the level of investment it should make further in the market, while taking into consideration other factors. If the potential market is very small, it means there is a very small fraction of the total population showing any interest in the product or category. This means that it is better that the company doesn’t invest further in the product or category because people won’t buy it. If the size of the potential market is large, it means that there is a huge fraction of the total population which is showing interest in the product, so further investment can be made on the product development or modification, marketing, promotions etc. The size of the potential market gives an estimate of what all a company should do and how much it should invest (MBA Skool Team, 2018).  15 Colegio de Los Baños -ENTREPRENEURSHIP Chunk 3: The Market Need 1. Need - A motivating force that compels action for its satisfaction. Needs range from basic survival needs (common to all human beings) satisfied by necessities, to cultural, intellectual, and social needs (varying from place to place and age group to age group) satisfied by necessaries (www.businessdictionary.com). - A driver of human action which marketers try to identify, emphasize, and satisfy, and around which promotional efforts are organized (www.businessdictionary.com). 2. Market - A Market is a place where two parties can gather to facilitate the exchange of goods and services. The parties involved are usually buyers and sellers. The market may be physical like a retail outlet, where people meet face-to-face, or virtual like an online market, where there is no direct physical contact between buyers and sellers (Kenton, W. & Boyle, M., 2020). - A market does not refer to a particular place but it refers to a market for a commodity or commodities. It refers to an arrangement whereby buyers and sellers come in close contact with each other directly or indirectly to sell and buy goods (Shaikh, S., retrieved 2020). - A market is any place where sellers of particular goods or services can meet with buyers of those goods and services. It creates the potential for a transaction to take place. The buyers must have something they can offer in exchange for the product to create a successful transaction (Moffatt, M., 2019) Your market consists of: Existing customers: Prospects: Target market users: People who have People in your target People who have not already purchased your yet purchased your market who are not product product but are currently looking for a considering it. solution. Define the Market Need for Your New Business Why is it important to clearly define market needs? The market now demands that your business align to their needs. In order to properly align your marketing efforts - and your content, in particular - to what buyers need, you have to have a clear understanding of the many intricacies, pains, and pressures within your market. To achieve such alignment, the ability to define market patterns, needs, interests, preferences, etc. for a comprehensive view of the buying process is critical (www.aberdeen.com). Below are ways to define your market (Lancaster SCORE (2010): Consider whether the business offers a new solution to an old problem or complements an emerging trend. Have a clear picture of your target market. Determine the benefits that your product or service offers. Examine industry data that can confirm whether there is a sustained, growing demand for your product or service. Identify the percentage of market share that it is realistic for you to capture. The more competition you have, the lower the margins will be. Consider how realistic your pricing is. How can you present your product or service to potential customers so that it appears to be a good value, while still affording you a healthy profit? (Week 3)  16 Colegio de Los Baños -ENTREPRENEURSHIP ANSWER SHEET (Please submit only the answers. Do not return the entire module.) Name: ________________________________ Section: _______________________ LAST NAME, FIRST NAME MIDDLE INITIAL Enabling Assessment Activity No.2 As would be Entrepreneur, you are tasked to identify your dreamed business. It must the one that involves your interests. Indicate who are your potential market, target market, available market and/or penetrated market. Write your answer in the space provides. ___________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Rubrics: Understanding of the topic - 25pts Organization - 10pts Coherence of Ideas - 15pts Total - 50pts ___________________________________________________________________ SIGNATURE OVER PRINTED NAME OF PARENT/GUARDIAN DATE: ______________  17 Colegio de Los Baños -ENTREPRENEURSHIP Prerequisite Assessment 1. Enumerate at least FIVE each of a PRODUCT and SERVICE that you are familiar with. 2. What market need or pain points or problems does it provide / solve? LESSON 4 Developing a Business Plan: Screen Solution/s for Viability, Profitability and Customer Requirement Learning Materials: Module, pen, paper, Management books, internet (if applicable) Prerequisite Content-knowledge: Basic concepts in entrepreneurship Prerequisite Skill: Identifying one’s entrepreneurial abilities, and basic competencies INTRODUCTION: A. TIME ALLOTMENT: 4 hours B. CONSULTATION: For questions and clarifications, you may consult your subject teacher on the assigned schedule via face-to-face, FB messenger, mobile number. C. RUA: At the end of the lesson, you should be able to: Screen the proposed solution/s based on viability, profitability, and customer requirements; and Select the best product or service that will meet the market need. D. INSTITUTIONAL VALUES: Creativity, Curiosity, and Social Responsibility Learners will be able to apply Critical Thinking, Creativity, and Curiosity in: Analyzing the market need, and selecting the product or service solution. E. OVERVIEW OF THE LESSON This lesson will discuss the best product or service solution. STUDENT’S EXPERIENTIAL LEARNING “Read and You’ll Be Inspired! Directions: Read an inspiring story of a couple‘s entrepreneurial journey in having a viable business as presented below. Kindly answer the guide questions on the space provided Kwentong Negosyo of Kusina Batanguena What a waste to throw surplus food away! One palayok of sinaing na tulingan got spoiled all because a customer who pre-ordered it failed to show up to claim and pay for it. To put a stop at throwing good food away, Nestor and Johna Velasquez of Mataasnakahoy, Batangas, became backyard manufacturers. They had a mission. They were determined. They had each other to offer much needed support and inspiration, and they used the right tools such as a Pressure Canner worth Php 50, 000. The couple sold their old vehicle to get the business going. Bottled Sinaing na Tulingan (braised tuna) —what else, became their first product. Through the couple‘s efforts, they have extended the shelf-life of sinaing na tulingan from a week to 2 years! How‘s that for a noteworthy and innovation-driven kwentong negosyo? Since joining trade fairs sponsored by the Department of Trade and Industry (DTI) beginning 2015, the bottled Sinaing na Tulingan never fails to be included in the list of nominees for Most Innovative Product. It received 3rd place in the Most Innovative Category at the DTI sponsored ‗Kalakal CALABARZON 2015‘ regional trade fair. “I know that we are on the way to success when customers keep coming back for more. They also tell us how much they love our product. We have established institutional market outlets through the 50 branches of Robinson‘s Supermarket and over 40 branches of Shopwise paving the way for more exposure and wider reach to a bigger customer base,‖ shares Nestor. Since the first product, they have come up with two others– ginataang tawilis (indigenous freshwater fish found only in Taal Lake, cooked with coconut milk) and ampalaya (bitter gourd)  18 Colegio de Los Baños -ENTREPRENEURSHIP atshara (pickled). All you need to add to the menu is hot steamy rice to enjoy a delicious Filipino meal. Yum! The couple looks forward to a partnership with the Department of Science and Technology (DOST). This partnership will enable them to acquire advanced technology and packaging equipment. Innovate for success could very well be the motto of Nestor and Johna. Processing Questions: 1. What became as the primary objective and mission of the couple in putting up the business? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 2. What could be the reason why they‘ve seen their business idea viable in terms of materials to be used and its concept? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 3. In what way are their products different and innovative from their competitors? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 4. How did they finance their business venture? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 5. Where do they sell their products? Why do they choose to do that? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 6. How many years is their business at present? What are their future plans for the business? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 7. State at least four (4) reasons/characteristics that, in your opinion, made Kusina Batangueña a viable business and still growing. _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Chunk 1: Viability Viability is defined as the ability to survive or persist; the quality of being able to happen or having a reasonable chance of success. In a business sense that ability to survive is ultimately linked to financial performance and position. It also refers to the practical potential of start-up business idea to survive and grow in the marketplace. Viability of the business is likewise measured by its long-term survival and its ability to sustain profits and continue doing business over a period of time. Entrepreneurs must give serious considerations based on viability in the following areas: 1. Objectives or goals of the business serves as its direction. It must be clearly set by the management in its Mission and Vision as a guiding tool for its plans and programs to motion the enterprise to profitability. 2. Manpower or human resource refers to the people who work for the business and the entrepreneur. As they are an important factor for the business success, they must be given  19 Colegio de Los Baños -ENTREPRENEURSHIP training, if necessary, and orientation of the company‘s operation, Employees must be motivated to perform better, be persistent, must know the management, and focused in the mission and vision of the business. Their condition must be looked into by top management. 3. Management must capitalize in the use of new technology as it helps in easing work for employees, speeds up work, increase productivity, improves quality of products or service better. These are some of the benefits that technology can offer the business. As product and service quality is improved, the business will be able to create more satisfied customers which is essential in creating more loyal repeat customers. Things to Test-Check Business Viability of New Venture Idea Question to ponder: How viable is my business idea? 1. Uniqueness. How do you stand out from others? It doesn‘t necessarily mean you have to invent or create an entirely new idea for your target market but, it should be advantageously different and stand out from your competitors. Most successful businesses have a strong, unique concept and a clear identity. 2. Financing the venture. How much would you need to finance your new venture? Every business need money for costs and other expenses in starting a business whether, buying or renting space and equipment, tools and basic materials, or the like. You need to make realistic estimation and know where to obtain your budget. Have a good finance understanding. The amount needed could be from you own money, loan, or from a willing investor. Sources of Capital/Funds for the business: i. Internal source a. Savings and assets (personal properties) of a starting entrepreneur b. Sources from internal operation (business revenue) c. Short-term sources of debt financing (banks, investment/lending institutions) ii. External source a. Long-term sources of debt financing b. Bank loans iii. Other sources a. Partners‘ contribution for partnership organization b. Stock options for Corporations/ equity financing c. Liquidation of assets Even if sources come from other people, the entrepreneur must not lose control in the management of the business and carefully choose partners or investors so as not to lose focus of his projected venture due to interference of partners. 3. Customer. Who’s going to buy? Knowing who will be buying your product or service is important for your business success because you would know where to find them. Who are your customers? Define your customers whether they are students, busy professionals, mothers, teenagers, etc. Know your customer profile to better understand what they need and afford to pay. 4. Competition. How can I do better than my competitors? It is more expected than not that you have competitors in the market offering the same. Competitors can be a great resource to you as an upstart; you can see how much they charge, what marketing strategy they use and the location they choose. Ask yourself: how can I do better than the competition? What is the competitive advantage of the venture? Use your uniqueness identified in step one to find ways to outdo your competitors. 5. Economic Mood: Where are consumers' mind right now? What are the concerns that affect their spending behavior? Your business' success can greatly depend on economic mood. Gauge the state of the economic environment and think of how it relates to your new business venture. Are consumers cutting expenses or spending more? Even in these trying times of pandemic and economic downturn can be an opportunity if you can meet the mood of the consumer. If your business idea doesn't fit the current trends in spending, think of ways you can fit it into today's needs.  20 Colegio de Los Baños -ENTREPRENEURSHIP 6. Timing. Is your business seasonal or not? If you expect your business to be seasonal, time to open your business at the strongest consumer demand. For example, if your business is offering milk tea products, it is best to open during summer months or hot seasons than rainy days. New customers will come and will eventually become repeat customers. 7. Marketing of goods and services. What is your marketing strategy? In step three you identified your customer. At this point develop a marketing strategy for your potential buyers for them to know about your great new business and on how to buy them. With today's internet capacity, marketing can be relatively low-cost, using online coupons and mailing lists. Brainstorm ideas with friends and family, and look at what your competitors do to get new business. 8. Continuing Cash Flow. Do you have a proper financial plan? Before you open up shop, prepare a detailed financial plan. This is in preparation if the business will already be booming and more supplies and costs will be needed to keep with the demand. Plan at least for your business' first year, so that you get rid of possible hindrances - especially financial ones. 9. Basic Feasibility. Is it legal? Can the product or service work? There are legal requirements that needs to be complied for opening a business. Make sure that your business idea will not violate government requirements and proper documents can be legally obtained. The product or service offered must be doable, legal, complies the standard of safety and health, and is relevant to solve a need. Chunk 2: Profitability Profitability is a business‘ ability to gain profit from its business activities and investment. Though profit is closely related to profitability, the latter is but, a measurement of business efficiency – and ultimately its success or failure. A further definition of profitability is a business's ability to produce a return on an investment based on its resources. To measure profitability, we use: Payback period refers to the allotted time, usually number of years that an investment is recovered. Simply put, the payback period is the length of time an investment reaches a break-even point. 𝑰𝒏𝒊𝒕𝒊𝒂𝒍 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕/𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝑷𝒓𝒐𝒇𝒊𝒕 Return on Investment (ROI) also called Return on Assets is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment‘s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio. 𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆 𝒐𝒓 𝑷𝒓𝒐𝒇𝒊𝒕 𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 = 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 𝒐𝒓 𝑪𝒂𝒑𝒊𝒕𝒂𝒍 Return on sales (ROS) also called as Net Profit Margin measures the overall operating results of an entity. The measure considers all income recognized and all expenses incurred during the period. Return on Sales is a financial ratio that shows how efficiently a company is able to generate operating profit from its revenue. It is used to measure the performance of the company by analyzing what percentage of the revenue eventually results in profit for the company rather than being spent towards paying the company‘s operating cost. 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑷𝒓𝒐𝒇𝒊𝒕 = 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔 − 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑬𝒙𝒑𝒆𝒏𝒔𝒆 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑷𝒓𝒐𝒇𝒊𝒕 𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏 𝑺𝒂𝒍𝒆𝒔 = × 𝟏𝟎𝟎% 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔 Profit is what is left of the business revenue, income or sales after it pays all expenses. Directly related expense to revenue include wages, expenses in producing a product, operating expenses, debt-reduction payments and other expenses related to the conduct of the business activities. 𝑷𝒓𝒐𝒇𝒊𝒕 = 𝑹𝒆𝒗𝒆𝒏𝒖𝒆/ 𝑺𝒂𝒍𝒆𝒔 − 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔  21 Colegio de Los Baños -ENTREPRENEURSHIP Break- even happens when there is no profit nor loss after deducting expenses from revenue. 𝑷𝒓𝒐𝒇𝒊𝒕 = 𝑬𝒙𝒑𝒆𝒏𝒔𝒆 Illustrative example: Kuya Keeno lost his job because of the pandemic and he wanted to earn some money. On March 16, 2020 he decided to make frozen lumpiang shanghai to sell online. His initial capital in starting his business is ₱ 640.00. Upon posting it online, all lumpia were sold. More friends ordered and recommended his lumpia so he decided to make a business out of it. Below is a record of the result of his business transactions for 5 days. Let us check if he gained profit or not. Day Gross Sales Cost of Net Sales Operating Net Income / Goods (Gross sales – Expenses Net Profit Sold Cost of Good (Net Sales – Sold) Operating Expenses) 1 200 pcs. x 5.00 = 500.00 500.00 140.00 360.00 1,000.00 2 300 pcs. x 5.00 = 800.00 700.00 250.00 450.00 1,000.00 3 350 pcs. x 5.00 = 1,250.00 500.00 500.00 0 1,000.00 4 250 pcs. x 5.00 = 550.00 700.00 200.00 500.00 1,000.00 5 320 pcs. x 5.00 = 800.00 800.00 250.00 550.00 1,000.00 Total 7, 100. 00 3,900.00 3,200.00 1, 340.00 1,860.00 𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆 𝒐𝒓 𝑷𝒓𝒐𝒇𝒊𝒕 𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 = × 𝟏𝟎𝟎% 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 𝒐𝒓 𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝟏, 𝟖𝟔𝟎. 𝟎𝟎 = × 𝟏𝟎𝟎% 𝟑, 𝟗𝟎𝟎. 𝟎𝟎 = 𝟒𝟖% 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑷𝒓𝒐𝒇𝒊𝒕 𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏 𝑺𝒂𝒍𝒆𝒔 = × 𝟏𝟎𝟎% 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔 (𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔 − 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑬𝒙𝒑𝒆𝒏𝒔𝒆) = × 𝟏𝟎𝟎% 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔 𝟑, 𝟐𝟎𝟎. 𝟎𝟎 − 𝟏, 𝟑𝟒𝟎. 𝟎𝟎 = × 𝟏𝟎𝟎% 𝟑, 𝟐𝟎𝟎. 𝟎𝟎 𝟏, 𝟖𝟔𝟎. 𝟎𝟎 = × 𝟏𝟎𝟎% 𝟑, 𝟐𝟎𝟎. 𝟎𝟎 = 𝟓𝟖% 𝑰𝒏𝒊𝒕𝒊𝒂𝒍 𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝑷𝒓𝒐𝒇𝒊𝒕 𝟔𝟒𝟎. 𝟎𝟎 = 𝟑𝟔𝟎. 𝟎𝟎  22 Colegio de Los Baños -ENTREPRENEURSHIP = 𝟏. 𝟕𝟖 𝒐𝒓 𝟐 𝒅𝒂𝒚𝒔 Analysis: Is the business venture of Keeno profitable? Yes. Why is it profitable? Answers: He was able to earn back his capital within 2 days He was able to have an ROI of 48% He earned a total of ROS of 58% Chunk 3: Customer Requirement Customer Requirement refers to characteristics or specifications that should be present in a product for it to be deemed desirable by the consumer. There can be two types of customer requirements: 1. Service Requirement Intangible aspects of purchasing a product that a customer expects to be fulfilled. It consists of elements like on-time delivery, service with a smile, easy payment etc. It encompasses all aspects of how a customer expects to be treated while purchasing a product and how smooth his buying process goes. 2. Output Requirement These are mostly the tangible characteristics, features or specifications that a consumer expects to be fulfilled in the product. If a consumer is availing a service as a product, then various service requirements can take the form of output requirements. For other products such as gadgets, the product specifications like the loudness and clarity of a pair of speakers becomes its output requirements. Three levels of customer requirements: 1. Must Haves These are the bare minimum requirements expected by the customers; if fulfilled customers will be not show any exceptional appreciation but if not fulfilled, the customer will show dissatisfaction. The customers do not explicitly express their desire for these but expect it to be understood. For example, a washroom in a restaurant; the customer will feel that it is imperative to have a washroom in a decent restaurant where families or people from business organizations come to dine. 2. Satisfiers There are the requirements that customers express their desire for, explicitly. If you offer better or more of these satisfiers, then the customers will appreciate it more and will be more satisfied. For example, the assortment of desserts in a buffet; the customers might feel that they‘re entitled to at least two as they‘ve paid heavily for the buffet and will be happier if they get four. 3. Delighters These are the extras or the add ons. Absence of these will not leave the customer dissatisfied; in fact, the absence of these characteristics might not even be noticed. But adding these would increase the customer‘s satisfaction greatly and will leave them delighted. For example, you order a-la-carte in a restaurant and get complimentary wine.  23 Colegio de Los Baños -ENTREPRENEURSHIP ANSWER SHEET (Please submit only the answers. Do not return the entire module.) Name: ________________________________ Section: _______________________ LAST NAME, FIRST NAME MIDDLE INITIAL ENGAGEMENT (Week 4 and 5) PERFORMANCE CHECK NO.2 “Screen Solution/s for Viability, Profitability and Customer Requirement” I. Instructions: Choose three (3) business ideas you have in mind. Below is the viability checklist that will be used in each of your proposed business venture. Write your business idea besides the Business Viability Checklist. Put a check mark for those item that is present in your proposed business venture and each check is equivalent to one (1) point. Your business idea with the highest score has more chance of viability when ventured into business. Nature of Business: ___________________________________________ Business Viability Checklist 1. Uniqueness of the proposed business venture 2. There is enough fund to finance the proposed business venture. 3. Target customers were already identified. 4. Presence of competitors and advantage over them is identified. 5. Economic status of consumers were also considered. 6. The proposed venture is in time for the season 7. Marketing strategies are planned proactively prior to the business operation. 8. Financial plan is established ahead before the business operation. 9. Legal aspects and feasibility study is conducted before the business venture starts. Nature of Business: ___________________________________________ Business Viability Checklist 1. Uniqueness of the proposed business venture 2. There is enough fund to finance the proposed business venture. 3. Target customers were already identified. 4. Presence of competitors and advantage over them is identified. 5. Economic status of consumers were also considered. 6. The proposed venture is in time for the season 7. Marketing strategies are planned proactively prior to the business operation. 8. Financial plan is established ahead before the business operation. 9. Legal aspects and feasibility study is conducted before the business venture starts. Nature of Business: ___________________________________________ Business Viability Checklist 1. Uniqueness of the proposed business venture 2. There is enough fund to finance the proposed business venture. 3. Target customers were already identified. 4. Presence of competitors and advantage over them is identified. 5. Economic status of consumers were also considered. 6. The proposed venture is in time for the season 7. Marketing strategies are planned proactively prior to the business operation. 8. Financial plan is established ahead before the business operation. 9. Legal aspects and feasibility study is conducted before the business venture starts.  24 Colegio de Los Baños -ENTREPRENEURSHIP II. Instructions: Choose only one business idea from the 3 you had presented earlier. Complete the template below by filling-out the necessary information about your proposed business venture. Make it sure that viability, profitability, and customer requirement were highlighted. Proposed Business Venture Viability Viability Factor Instructions: Put a check mark Uniqueness on the factors that are present to Financing your proposed business venture. Customer Competition Economic Mood Timing Marketing Feasibility Profitability Instructions: Compute for possible profits for its first month of operation. Use estimated amount Customer Requirements: Instructions: Indicate in the space provided your plan/s on the suggested improvement of your customers. Rubrics: Understanding of the Topic - 20pts Coherence of Ideas - 15pts Content - 15 pts Total - 50pts _______________________________ SIGNATURE OVER PRINTED NAME OF PARENT/GUARDIAN DATE: ______________ Prerequisite Assessment 1. What words can you associate with “Market”? Write at least FIVE. 2. Why is understanding the “Market” necessary in business?  25 Colegio de Los Baños -ENTREPRENEURSHIP LESSON 5 Selecting the Best Product or Service that Will Meet the Market Need Learning Materials: Module, pen, paper, Management books, internet (if applicable) Prerequisite Content-knowledge: Basic concepts about market Prerequisite Skill: Recognizing and understanding the market INTRODUCTION: A. TIME ALLOTMENT: 4 hours B. CONSULTATION: For questions and clarifications, you may consult your subject teacher on the assigned schedule via face-to-face, FB messenger, mobile number. C. RUA: At the end of the lesson, you should be able to: * Select the best product or service that will meet the market need. D. INSTITUTIONAL VALUES: Economic literacies, Excellence, Integrity, Critical Thinking Learners will be able to apply Critical Thinking, Creativity, and Curiosity in: Recognizing, analyzing the market need, and determining who the customers are. E. OVERVIEW OF THE LESSON This lesson will discuss ways to recognize and analyze markets and customers. STUDENT’S EXPERIENTIAL LEARNING “Read and You’ll Be Inspired! Directions: Read the story well and get encouraged to reach your dreams even from small but right steps! For you to remember relevant points, write the appropriate words to complete the sentences on the spaces provided. Josephine Rectin of Legazpi City, Albay is a typical Filipino micro entrepreneur who started with a small capital. Back in 1995, she sold vegetables on foot. She had Five Hundred Pesos (PhP500) in capital. Twenty years later—and this is where her story deviates from most micro entrepreneur’ stories, she heads a multi-million family business that encompasses a mini grocery store, rice farming and trading, livestock raising, hardware store with gravel and sand, hollow blocks and nipa shingles making, trucking and hauling service, and a computer printing shop. ―” We grew the business gradually in response to customer demands. Together with my husband, Robert, and our children, we pursued one new business after the other in tune with the market conditions,” says Josephine. She turned to what she knew —selling, to help Robert provide for the needs of the family. ―”I started as an ambulant vegetable seller. When customers asked for other goods like dried fish, I would promptly supply them and then add these to my basket of products. From a portion of my earnings saved up over a period of time, I raised enough money to establish a sari-sari (variety goods) store. My store allows me to sell more and earn more. It also keeps me informed of what customers need and want. As I listen, I get ideas for new businesses. The hardware business, for example, came about when there was a house construction boom in the community. It helped a lot that my husband is keen to run it,” adds Josephine. Good customer relations is key to a successful business. Josephine makes times for small talk to make her customers feel welcome. ―”I support the saying that the customer is always right. And if they are wrong, I make them feel alright by being patient when resolving issues that matter. A good entrepreneur should avoid being short-tempered and impatient with customers”. Josephine shares, ―”the possibilities are endless especially if you are your own boss. As an entrepreneur, you have the flexibility to manage your time and resources. If you want to accomplish more, work harder and longer. Success does not come easy, but if you are willing to work for it, it is yours for the taking.” Start here:  26 Colegio de Los Baños -ENTREPRENEURSHIP 1. Josephine Rectine’s objective why she became a micro entrepreneur in 1995 was to ______________________________________________________________________ 2. She used her skill in ____________________ and started being an ______________. 3. Her customers told her what they __________ and she promptly______________ them. 4. She was able to_______________________________________ over a period of time. 5. She used it for financing her next venture, a___________________________________ 6. From that sari sari store how did Josephine get business ideas that eventually put her husband and children into doing business as well? _______________________________ Chunk 1: How do you choose the right product to sell? 1. Primary considerations in choosing a particular product financial benefit to your business relatively low investment requirements, positive return on investment, fit with present strategy, feasible to develop and produce, easy to source and procure, relatively low risk, and time to see intended results. 2. Meet the needs of the customer and solve a specific problem. Product must address a need or an opportunity. Know how your products or services can assist customers. Product must have a real value that customers can recognize, want and need. 3. Produce the product that you are capable of. Know if you have the time, resources and capability to produce your product. Find out if you can afford the manpower required. Find out if you have the resources to outsource the product development. Know if you can produce a strong demand at a specified period required with the same standard. 4. Consider the size of your potential reachable market. Get an idea of the size of your market. Know who are likely to use or benefit from your products. Define who will be your potential customers that will be interested in your product. Understand who and how big your market can pay off in the long run. 5. Comply with government rules and regulations. Be abreast with new laws or government rules and regulations can impact your product. Comply with required permits, licenses and obtain approval from the government.  27 Colegio de Los Baños -ENTREPRENEURSHIP 6. Your product must be superior in its functionality, presentation or marketing than any similar or existing in the market. Know and understand your Unique Selling Proposition - is the one thing that makes that your product different than any other. It may be that the product has a lower price or more convenient packaging, or it may taste or smell better, or last longer. 7. Identify barriers that must be overcome for a potential new product entry. Barriers to entry include high research and development expenses. Patents are barriers where your competitor may hold legal protection for an integral component of your product and may prevent you from manufacturing your product. Other barriers to entry include competitors offering lower prices due to their cost advantage. Know the potential sales, growth, profits, and time for payback. Get a clear idea of your costs. Understand how much sales you need to have to breakeven. Post a profit. Know what your return on investment will be. SWOT ANALYSIS One method people often use to decide which is the most suitable business idea is the SWOT Analysis. It helps you focus on possible problem areas and potential advantages of each idea. Inside the business To analyze the strengths and weaknesses of a business an entrepreneur should look inside the planned businesses. What will be good at and what are its weaknesses? 1. Strengths are the specific positive aspects, which will give your proposed business an advantage over similar business ventures competitors. It could be that you have a better product feature than your competitor, or you can deliver the product faster than others because of the location near the customers. 2. Weaknesses on the other hand are specific aspects that your business will not be good at. Perhaps your costs will be high because your location is far from suppliers and you will pay more for the transport. Outside the business To analyze the opportunities and strengths of your proposed business, an entrepreneur must look outside the business or the external environment. What aspects of the external environment will benefit the business and what aspects will negatively affect the business. 3. Opportunities are on-going potential developments around you that will be good for your business. It could be that the demand for the product you are proposing will increase because of the influx of tourists. 4. Threats are probable events that may affect your business negatively. For example the business idea could be so simple that other people may start similar businesses in your area and reduce your share of the market. New products and services are essential in all businesses. Existing  28 Colegio de Los Baños -ENTREPRENEURSHIP and new entrepreneurs understand that investing in their product development is necessary for business growth and success. However, financing the development process is very risky. It needs to be carefully planned and organized. Chunk 3: Key Stages in the Life Cycle of any product or service Identifying where products or services are in their lifecycle is central to your profitability. Product Life Cycle Concept describes a product’s sales, profits, customers, competitors, and marketing emphasis from its beginning until it is removed from the market. It is a guide for you to know when would be the right time to start the development process. It will explain how a planned and phased development process will help you make the wisest investment and budgeting decisions. 1. Product Development - at this point your product or service is only an idea. You're investing heavily in research and development. The new product planning involves a series of steps: 1.1 Idea Generation Methods: a. Brainstorming - sharing ideas, comments, suggestions of members b. Analyzing Existing products- learn how market is captured successfully c. Visiting suppliers’ facilities - suppliers’ raw materials can be used as a method to innovate and modify existing product. d. Surveys - get feedback from customers and potential market. e. Reading trade publications - inspirational story of successful entrepreneurs can be a basis of creating new product. 1.2 Idea Screening Ideas which are unsuitable, unacceptable or poor must be junked. Ideas with attributes are rated on the basis of a rating form, rated 1-10 in categories: general, marketing and production characteristics. 1.3 Concept Testing. Ideas which passed screening stage will require feedback from consumer. Measures consumer enthusiasm by asking reactions in pictures, and oral description of product. 1.4 Business Analysis - a review of market factors, revenues, cost and trends 1.5 Product Development - ideas are converted into visible form 1.6 Test Marketing- involves selling a fully developed product in selected area and observing the actual or on the spot performance. Depending on the result, decision as to go ahead, modify the product or services, modify marketing plan or cancel the product. 1.7 Commercialization - involves actual marketing of the product in the target market. 2. Introduction - launching of product or service in the marketplace and objective is to generate customer interest. Heavy spending on marketing confronts the entrepreneur. Sales growth depends on the desirability of the product Competition is limited, or selected High production and marketing costs Customers are called innovators as they took risk of the new product Promotions must be informative Free samples and discounts may be desirable 3. Growth- your product or service is establishing itself, sales are growing and profit margins are good. Product gains wider acceptance and objective to expand distribution and range of available product alternatives More firms enter the profitable and tested market. Profits are high due to less competitors who offers the same.  29 Colegio de Los Baños -ENTREPRENEURSHIP Distribution is expanded coupled with mass advertising to meet new goals It’s the time to work out reducing costs of delivering the new product. 4. Maturity - sales growth is slowing or has even stopped. You've been able to reduce production and marketing costs, but increased competition has driven down prices. Now is likely to be the best time to invest in a new product. Product’s sales level tries to maintain lower price and better features for as long as possible. Market is fully penetrated Competition is at its highest level. Profits decline because discounting becomes popular. High cost in advertising. Products are available at most outlets at varying prices. Promotion is very competitive. 5. Decline - new and improved products or services are on the market and competition is high. Sales fall and profit margins decline. Product’s sales falls as substitutes and new competitors enter the market Firms may lessen or reduce the items produced and outlets used. Increased marketing will have little impact on sales and won't be cost-effective unless new markets are identified. You can extend the lifecycle of a product or service by investing in an "extension strategy". You could: increase your promotional spending introduce minor innovations - perhaps by adding extra features or updating the design seek new markets But ultimately this only delays a product or service's decline. Ideally, you should always have new products or services to introduce as others decline so that at least one part of your range is showing a sales peak. A. Value Proposition and Unique Selling Proposition (USP) Value Proposition (VP) - a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives. In creating Value Proposition, entrepreneurs will consider the basic elements: Target Customer Needs/opportunity Name of the product Name of the enterprise/company There are many competitors in the market to establish superiority to them. Entrepreneurs should think some alternative and how it works better. An important aspect in Value Proposition must be truthful that will establish credibility to the consumers. Example: Potential value proposition is most common in small businesses of your locality.  30 Colegio de Los Baños -ENTREPRENEURSHIP (Week 6) ANSWER SHEET (Please submit only the answers. Do not return the entire module.) Name: ________________________________ Section: _______________________ LAST NAME, FIRST NAME MIDDLE INITIAL Enabling Assessment Activity No. 3 “The Winner” Directions: Choose two (2) from the business ideas you mentioned in Performance Check No. 2 and write them on the space provided below, for business ideas 1 and 2. Analyze and answer truthfully the questions for each business venture for a reliable result so that you will be able to properly choose the best business idea that will answer the market need and will have the most chance of viability for you Example: Business Ideas/Business 1. Washable Face Mask 2. Cemented Pot Proposal Production Production Which customer needs you Need for protection and health Need for diversion of attention want your product or service purposes in time of pandemic to satisfy? Are you capable to produce Yes. No. To hire skilled workers. the product? If not how will you produce them? START HERE: Business Ideas/Business Proposal 1. _________________ 2. ___________________ 1. Which customer needs you want your product or service to satisfy? 2. Are you capable to produce the product? If not how will you produce them? 3. Who are your possible customers for this particular business?  31 Colegio de Los Baños -ENTREPRENEURSHIP 4. What is the estimated size in number of your market? 5. Who are your competitors? 6. What is unique/different of your product to others? 7. How will you be able to supply/deliver the goods and services to customers? 8. How much capital is needed to start your business? 9. Where will you get the resources to start this business? 10. Does this business have potential growth? At what stage in the product life cycle is your business idea/ proposal? #1 _____________________________________________________________ #2 _____________________________________________________________ What are the STRENGTHS of your selected business idea/proposal? Enumerate at least 3. __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ Rubrics: Understanding of the topic - 25pts Organization - 10pts Coherence of Ideas - 15pts Total - 50pts  32 Colegio de Los Baños -ENTREPRENEURSHIP Prerequisite Assessment 1. Think of words or terms related to the topic that starts with letter “P” and find the words in the grid horizontally, vertically, or diagonally. Write the words or Terms on the space provided. 1. ______________________ 2. ______________________ 3. ______________________ 4. ______________________ 5. ______________________ 6. ______________________ 7. ______________________ LESSON 6 Marketing Mix Learning Materials: Module, pen, paper, Management books, internet (if applicable) Prerequisite Content-knowledge: Basic concepts about market Prerequisite Skil