Entrep Business Plan - 1st Quarter PDF

ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 Physical Environment Historical Data Gathering ▪ First layer o...

ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 Physical Environment Historical Data Gathering ▪ First layer of the environment. ▪ The tool used for physical environment analysis ▪ Composed of the natural elements that are ▪ Collecting data about past event and inherent in the Earth. circumstances pertaining to a particular subject through primary and secondary sources Climate Societal Environment New ▪ Directly affected by changes in the Physical Business Environment. Physical Resources Wildlife ▪ There is positive relationship between the evaluation of the societal environment and the Climate favorable operating performance of the venture. ▪ Climatic condition in a particular region where the ▪ Environmental Scanning: critical evaluation and business will be established must be evaluated. thorough study of the environment where the ▪ Entrepreneur must consider the prevalent climatic business operates. condition of the area whether it can withstand or Econom ic is fit to climatic condition in the local area. Forces ▪ Technolo Conducive to the business gical Cultural Forces Forces New Physical Resources Business ▪ Availability of raw materials is another major Legal Forces Social Forces factor that can influence the success or failure of Political the business venture. Forces ▪ Availability or lack of raw materials will determine the cost of the products. ▪ Entrepreneur must evaluate if the available raw Economic Forces materials to be used are sufficient for a long-term ▪ Factors which are primarily caused by changes operation. or movements in the Philippine economy that have direct or indirect effects on the venture. 1. Interest rates 5. Incomes Wildlife 2. Inflation rates 6. Exchange rates ▪ Wildlife abuses lead towards imbalance in the 3. Fiscal policies 7. Employment Philippine ecological system where wild plants 4. Monetary policies 8. Consumer confidence and animals are supposed to be interrelated. ▪ Entrepreneur must ensure that their business Cultural Forces contributes to the preservation of the ecological ▪ Refers to the integrated characteristics of a system in the local community or country. group of people or ethnic group in a particular society. Environmental Scanning 1. Religion 4. Customs ▪ Refers to the gathering, critical evaluation, and 2. Language 5. Education utilization of information on events and 3. Beliefs activities and their relationships with the physical, societal, and industry environments. Social Forces ▪ Includes the different forces existing in every ▪ Elements in the society resulting from human environmental layer that that have direct and interaction that can influence the thoughts, indirect effects. behavior, attitude, actions, and even belief and ▪ Importance: customs of the people. 1. It clearly portrays the trends, activities, and ▪ Product of the actions of the people on an developments happening in every environmental important event. layer including the interrelated relationships 1. Values 5. Time orientation between the various forces in the environment. 2. Traditions 6. Lifestyle patterns 2. It identifies the expected threats and opportunities 3. Literacy level 7. Professional existing in the environment. 4. Consumer psychology career roles 3. It points out the possible factors that will determine the success of the entrepreneurial venture. 4. It helps define the future path of the business. 5. It assists in the formulation of the most appropriate entrepreneurial strategies. ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 Political Forces ▪ Various elements usually comprising of the Government political parties, political systems, and other related political groups that substantially Creditors Suppliers influence political stability. 1. Trade regulations 4. Unemployment New Business 2. Taxation 5. Worker’s benefits 3. Government stability 6. Election practices Employees Customers Legal Forces Competitors ▪ Elements and bodies that are directly involved in the legislation and interpretation of laws and ordinances directly affecting the business. Government 1. Product control, pricing, and labeling ▪ System or institution that handles affairs of a 2. Health and safety of the workers particular country. 3. Administration of election process ▪ Has jurisdiction over territory and international 4. Advertising and promotion trade relations, 5. Exercise of profession ▪ The type of government system operating in a 6. Education administration and fees particular country highly influences the business. Technological Forces Suppliers ▪ Refers to the trends and developments in ▪ Individual persons or companies that provide the computer and information technology. required materials, parts, or services to the 1. Internet 4. Technological business. 2. Social Media advancements ▪ They play a crucial role in the production of goods 3. E-commerce 5. Technological or services. infrastructure ▪ Can also adversely affect the business: delay or provide defective materials or inefficient services. PESTEL Analysis ▪ Tabular framework of the trends and Customers developments in the different forces in the ▪ The buyers of goods or services produced or external environment ▪ Instability of the Philippine rendered by the business. P Political Forces government ▪ Business realizes profit from its transactions with ▪ High interest rates given by consumers. E Economic Forces commercial banks S ▪ Low level of education among Competitors Sociocultural Forces public school graduates ▪ Forces existing in the industry environment that T ▪ Readily available internet and produces, sell, or render products or services social media Technological Forces which are similar to those of the business. E ▪ Abundant raw materials ▪ Types of competitors: Ecological Forces 1) Direct – produce and sell similar products or L ▪ Frequently changed tax laws services. Legal Forces 2) Indirect – produce and sell substitute products. Environmental Forces Matrix ▪ Entrepreneur must find strategic ways to surpass ▪ Classifies the various environmental force into them in the production and delivery of goods and their frequency of occurrence and level of effect services to the customers. to the existing or proposed business Employees Industry Environment ▪ The workers of the business who are highly ▪ External environment layer where the trends responsible for the production of goods or and changes are easily and immediately felt by delivery of services to the customers. the business. ▪ They help ensure the quality and quantity of ▪ Considered the immediate environment of the products or services provided. business where it conducts it various operational ▪ The backbone of the business activities. ▪ Selected according to: o Educational o Experience background o Skills o Character o Competencies ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 Creditors SWOT Analysis ▪ Refer to banks, financial institutions, and financial ▪ Pioneered by George Albert Smith, Jr. and intermediaries engaged in the lending of money Roland Christensen – Harvard Business School to the borrower usually for a fee or charge in the professors of business policy. form of business interest. ▪ Popular tool to evaluate the internal environment ▪ Provides much needed funds by extending credit Strengths ▪ Strong attributes or to the business capabilities of the entrepreneur’s control Within the business / business that provide Forces of Competition Model great advantage in ▪ Curated by Michael Porter exploiting the business o Potential new entrance o Suppliers opportunity o Buyers o Rivalry among Weaknesses ▪ Poor attributes or o Substitute products existing firms deficiencies that give disadvantages to the Competitive Forces Matrix business ▪ Competitive forces can be plotted using this Opportunities ▪ Business situations in Outside the business matrix by which the entrepreneur can view the the form of products or environment total perspective of the competition within the services that must be industry where the business operates exploited because of their potential in terms of Internal Environment profit and growth ▪ Micro environment Threats ▪ Possible external events ▪ Refers to the environment within the business ▪ Forces operating within the internal environment: Nature and Type of Entrepreneurial Venture 1. Business ▪ Assets or properties owned Form Resources or controlled by the 1. Sole ▪ Owned by one person business proprietorship only ▪ Types of assets: ▪ Characteristics: 1) Tangible – assets that Easy to form and have physical form manage 2) Intangible – do not Simple business have physical operation appearance or form Limited pool of 2. Business ▪ Collection of values, beliefs, resources Culture principles, and expectations Growth is limited learned and shared by Owner has unlimited employees, founders, liability stakeholders, and members 2. Partnership ▪ Owned by two or more of the management person 3. Business ▪ Refers to the formal ▪ Dissolved for the ff. Structure organizational arrangement reasons: of the business in terms of Death of one partner hierarchy of positions, flow Admission of a new partner in an existing of communication, partnership relationship of functional personal insolvency of areas, and production and one partner marketing processes permanent investment withdrawal BCG Analysis Matrix 3. Corporation ▪ Formed by at least five, ▪ BCG = Boston Consulting Group but no more than fifteen ▪ An environmental scanning tool most appropriate persons. when there are several products or services that ▪ Stakeholders are not are produced or rendered by the business liable, but the company ▪ Determines market growth is. ▪ Types: o Stock o Domestic o Non- o Foreign Stock ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 Nature Market Targeting 1. Merchandising ▪ Buying and selling ▪ Target Market: a specific set of consumers who 2. Service ▪ Provides services have common needs and characteristics that the 3. Agriculture ▪ Production of company decides to serve agricultural goods and ▪ Companies need to choose the right market services segment(s) to pursue and offer their products to 4. Manufacturing ▪ Buying raw material, ▪ Market Segment Evaluation: producing new o Size of the segment and its expected products, and selling it growth to the market o Existing and probable structure of the 5. Hybrid ▪ Combined types of form segment o Capability of the business Market Identification ▪ strategic marketing approach and process that is Entrepreneurial Marketing Strategies intended to define the specific customer of the 1. Individual or ▪ Products are tailored product one-on-one to the needs of the ▪ three approaches: marketing individual consumers Market Segmentation Differentiated ▪ Several segments are ▪ Process of dividing a big market into smaller Marketing covered, and segments of buyers with distinct need, (Multi- products are characteristics, or behaviors so that they can be 2. Segmentation Marketing segment) designed to suit the reached more efficiently and effectively and specific needs of a offered with products that match particular segment ▪ Points to consider: o Accessibility of the market segment Concentrated ▪ Only one or few o Size of the market segment or Niche segments are o Distinction of the market segment Marketing covered, but the 1. Geographic Segmentation product is designed ▪ Divides the market into geographical units such for the majority of the as countries, regions or cities consumers in the 1. Climate 4. Density segment market 2. Dominant ethnic 5. Classification of the group geographical unit 3. Mass or ▪ Products are mass- 3. Culture undifferentiated produced for the marketing whole market where 2. Demographic Segmentation consumers are not ▪ Segments divided based on demographic differentiated variables 1. Age 5. Education Market Positioning 2. Gender 6. Religion ▪ Placing a product’s distinct characteristics – 3. Income 7. Ethnic Group brand, offerings, endorsers, history on the 4. Occupation 8. Family Size consumer’s minds relative to its competitors Steps in determining the market position 3. Psychographic Segmentation 1. Differentiate ▪ Unique Selling ▪ Divides the market into segments based on the market Proposition (USP) – what consumers’ psychological or personality traits, positions sets the products apart lifestyle, and values from its competitors? Why 1. Needs and Wants 5. Knowledge and 2. Attitude awareness should the customers buy 3. Social class 6. Brand concept this instead of its 4. Personality traits 7. Lifestyle competitors? ▪ Strategies: 4. Behavioral Segmentation ✓ Product differentiation ✓ Service differentiation ▪ Segments based on the consumers’… to a ✓ Channel differentiation product: ✓ People differentiation 1. Perceptions 4. Benefits 2. Knowledge 5. Loyalty 2. Evaluating ▪ Following criteria may be 3. Reactions 6. Responses the benefits considered in identifying of every the attributes or benefits: ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 market ✓ Identifiable o Plant capacity position ✓ Beneficial 2. Production ▪ Different processes or ✓ Distinctive advantage process stages involved in the ✓ Efficient and rewarding production of goods 3. Deciding on ▪ Price and quality – two ▪ Involves: the market basic dimensions that o Exact processing procedure position must be seriously o Materials, parts, or considered in deciding the ingredients required market position o Expected time to process the product Production Plan 3. Processing ▪ Involves: plant and o Capacity of the plant or ▪ Describes the activities related to production of equipment machinery goods o Model of the machinery or ▪ The result of industry analysis, particularly the equipment study of supply and demand and consumer o Availability of spare parts behavior o Cost and terms of payment 4Ms of Production Plan 4. Sources of ▪ Involves: 1. Method ▪ Process or technique of materials o Proximity of the source to converting raw materials to the processing plant o Payment terms and finished products conditions Batch Method – production o Discounts and damages undergoes several stages o Terms of shipment Project Method – usually 5. Production ▪ Shows the estimated cost substantial in size cost of production Job Order Method – production is completed by a single employee or a batch of Organization Plan employees ▪ A to do list for an organization 2. Manpower ▪ Human workforce involved ▪ List out plan of work, programs, and in the manufacturing of organizational growth over time products 1. Set priorities for work o Education of workers 2. Make sure tasks get done on time o Skills 3. Focus on one thing at a time o Experiences 4. Share work among staff, brand members, and o Number of workers needed volunteers o Salaries 5. Make goals clear to investors o Production time 6. Gets a handle on big projects 3. Machine ▪ The machine equipment 7. See the bigger picture used in the production of ▪ Provides a detailed description of the following: goods or delivery of service 1. Form of the ▪ Can come in the form o Types of product to be produced o Production system to be adapted business of sole proprietorship, o Cost of equipment Organization partnership, or o Capacity corporation o Spare parts ▪ Factors: o Efficiency 1) Capital requirements o Who will run the equipment 2) Liability of the 4. Materials ▪ Raw materials needed in the owner/s production of a product 3) Management and o Cost o Production supervisory skills o Quality of 4) Tax implications o Availability materials o Credibility 5) Government intervention 6) Nature of the Critical Areas in Production Planning business 1. Production ▪ Presents the total number 7) External financing schedule of goods to be produced requirement and the expected time to 2. Liability of the ▪ Describes the extent of produce them owner/s the owner’s financial ▪ Affected by: obligations with o Demand creditors o Resource availability ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 ▪ Limited liability – Operation Plan creditor cannot go after ▪ Outlines the various activities, from the the personal property acquisition of raw materials to the delivery of the of the owner product to target consumers ▪ Unlimited liability – ▪ Areas of operation plan: creditor can run after the owner’s properties Evaluation of Suppliers 3. Organizational ▪ Shown or reflected in ▪ Basic concept of quality management is that Structure the organizational chart control starts from suppliers of raw materials ▪ Shows and defines the ▪ Suppliers must practice total quality hierarchy of different management to minimize or avoid defects or positions in the damages in the supplies organization and the ▪ Critical evaluation with suppliers establishes interrelationship of harmonious working relationships with them: the different offices or ▪ Criteria on evaluation: departments 1. Price, Quality, and Delivery ▪ Depicts the flow of 2. E-commerce Capability communication within 3. Financial Stability the organization, and 4. Long-term Relationship Potential the line and staff 5. Total Quality Performance and Philosophy authority that must be observed and executed Materials Requisition and Receiving ▪ Structures: Procedures 1. Functional – common 2. Divisional ▪ Must be explained and person assigned to 3. Matrix conduct inspections upon receipt of the materials 4. Roles and ▪ Must be clearly defined must be included responsibilities to minimize and avoid ▪ Basis of the receiving report misunderstanding and ▪ Must be signed by authorized personnel and the overlapping of person receiving prepares the report functions of the ▪ Covers the ff. areas: various positions 1. Basis of receiving the raw materials ▪ A clear set of 2. Comparison of the order and receipt criterion, information 3. Quality of materials received about the expectations of a job Storage and Inventory Control System or position, ▪ Describes how the business stores the finished educational goods and protects its inventory against possible requirements, and theft and losses experiences for every ▪ Deals with the ff.: position must be 1. Owning or renting a warehouse provided 2. Management of the warehouse ▪ Better if there’s an 3. Procedures in the transfer of goods early list positions with 4. Control in inventory in the warehouse respective job ▪ Just-in-time manufacturing system (JIT) specifications for hiring - storage and warehousing are eliminated as personnel only actual orders are produced at the exact 5. Salary ▪ Total estimated required time requirements monthly and annual - eliminates wastage of expired products and salary requirements of require less capital since only essential the business and stocks are ordered mandatory benefits ▪ Decreasing inventory shrinkage: 1. Increase employee accountability 2. Train staff to follow security policies and procedures 3. Consider store layout 4. Develop an environment of loss prevention 5. Invest in automated cash management technology ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 Shipment System and Control 3. Social Needs ▪ These include the need for: ▪ The basis of sales invoice and other shipment o Friends documents are the purchase order received from o Acceptance o Love or belonging the customers 4. Self-esteem ▪ These include the need for: ▪ Covers the ff.: o Respect 1. Approval of shipping and sales o Recognition documents o Honor 2. Terms of shipment 5. Self- ▪ The highest level of need 3. Manner of shipping the product actualization ▪ Satisfied when people 4. Other terms and conditions like sales have finally realized their contract “ultimate dream” Functions of Support Services Value Proposition (VP) ▪ Defines and describes the functions of other ▪ Value of a company support services relative to the acquisition, ▪ Promises to deliver to customers if they choose to processing, and shipment of goods to consumers buy the product ▪ Includes important role of other support services such as maintenance personnel and security Unique Selling Proposition (USP) officers and staff ▪ The things that makes the business better than ▪ Four functional areas: the competition 1. Finance 3. Operation 2. Marketing 4. Human resources Branding ▪ Very critical in the promotion of a product among Needs and Wants consumers ▪ Marketing mix: a tool or strategy that properly ▪ They associate the features, attributes, benefits, positions the product in the minds of target or value of the product with the brand. consumers. Brand: refers to the name, design, color, Needs Wants symbol, features, or a combination of these ▪ Things that a ▪ Things that a person elements that make the product separate and person must have must have in order to distinct to survive be happy, comfortable, and satisfied. Brand Name ▪ Influence the buying decisions of the consumers ▪ Must be able to easily attract the attention of the Hierarchy of Needs target consumers, influence them, and lead them ▪ Postulated by Abraham Maslow to buy the project Self- Actualization Branding Strategy Self-esteem ▪ Formulation of a brand name for the single product that the business intends to make. Social 1. Umbrella ▪ All products of the business Brand carry the same brand name Safety Approach ▪ Various product lines are not Physiological differentiated from each other from the perspective of the brand name 1. Physiological ▪ Basic needs of human 2. House ▪ Every product of the same Needs beings Brand business has a separate brand ▪ These include: Approach that distinguishes it from the o Food o Water rest of the company’s products o Clothing o Sleep ▪ Problems and negative o Shelter o Sex perception on one product will 2. Safety Needs ▪ These include safety in not affect the other terms of: 3. Brand ▪ Brand equity: level or degree o Physical Extension of the consumer’s perceptions o Economic Strategy or reactions to a brand o Financial ENTREP: BUSINESS PLAN ENVIRONMENT | MARKET IDENTIFICATION | PRODUCTION, OPERATION, & ORGANIZATIONAL PLAN | NEEDS, WANTS, BRANDING STRATEGY SHS | STEM | FIRST SEMESTER | 2023 o awareness o perceived o association quality o experience o loyalty ▪ Entrepreneurial ventures with high positive brand equity are capitalizing or leveraging on such concept ▪ Two approaches: 1. Line Extension Approach – existing product has been modified or altered resulting in a new product or more without eliminating the original product. - The new product must be in the same category and may be modified in the form of flavor, ingredients, mechanical parts, size, or usage. 2. Product Extension Approach - A new product carries the brand in a new category. - Appears to be totally different from the existing product line.