entrep_q1_wk4_lesson1-2.pdf

12 Entrepreneurship QUARTER 1 Week 4 Lesson 1 CapsLET Capsulized Self-Learning Empowerment Toolkit Schools Division Office of Zamboanga Cit...

12 Entrepreneurship QUARTER 1 Week 4 Lesson 1 CapsLET Capsulized Self-Learning Empowerment Toolkit Schools Division Office of Zamboanga City Region IX, Zamboanga Peninsula Zamboanga City Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”  CapsLET Capsulized Self-Learning Empowerment Toolkit SUBJECT & Entrepreneur GRADE/LEVE ship QUARTER 1 WEEK 4 DAY ____________________________ dd/mm/yyyy L Grade 11 TOPIC Developing a Business Plan Code: Demonstrates understanding of concepts, underlying LEARNING CS_EP11/12ENT principles, and processes of developing a business plan. COMPETENC REP-0a-c-5 Learning Objective: Y 1. Screen the proposed solution/s based on viability, profitability, and customer. IMPORTANT: Do not write anything on this material. Write your answers on the Learner’s Activity and Assessment Sheets provided separately. UNDERSTAND Topic Title: Developing a Business plan Viability of a business- is measured by its long-term survival and its ability to sustain profits over a period of time. A business is able to survive when it’s viable because it continues to make a profit year after year. The longer a company can stay profitable, the better its viability. Profitability- is measured with income and expenses. Income is money generated from the activities of the business. For example, if crops and livestock are produced and sold, income is generated. Sustainability- viability into the future. Time- delimited viability- viability for a defined period, which no requirements for survival after the period has ended. Income Stocks- examples; utilities such as water company. Steady earnings market, expected to pay regular dividends to shareholder. Growth Stocks- example, high-tech companies. May not be earning much today. Most/all earnings retained for investment. Robustness- viability across a range of environmental conditions. Niche viability- viability in a single specialized environment. Profit – income minus expenditure. Figure 1. Business model on innovation for Sustainability. Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!” The above figure 1. Shows the sustainable value made up of a triad of economical, social and environment value forms. Below are the core concepts of viability and its different dimensions. Core Concepts of Viability: Viability means ability to survive. Economic Viability For many enterprises, viability is ultimately ▪ Profit linked to profit. Even if the business is not currently profitable perhaps it is in the early stages of development, undergoing a growth spurt, or just going through a bad patch there is an expectation that will be profitable at some future date. The expectation that it will be profitable at some future date. The expectation of future profit justifies continued investments. Sociological Viability The economic notion of viability can also be ▪ Manageability extended to not-for-profit enterprises such as public sector organizations and charities. Such organizations are viable if they are seen to deliver social or other value, sufficient to justify adequate funding and support on an ongoing basis. Sustainability Viability into the future is known as ▪ Resource consumption sustainability. ▪ Social Mandate Viability for a defined period, with no ▪ Environmental Impact requirement for survival after the period has ▪ Political Support ended, we can call time- delimited viability. ▪ Image For example, the plans for a specific event, such as the London Olympics, require time- Environmental delimited viability. Diversity However, the business case for the Dimensions of Diversity investment may reference longer term benefits for the region, and therefore imply Time some degree of sustainability as well. This affects how we think about the scope of the system. Enrichment “Market Viability” https://smallbusiness.chron.com/determine-market-viability-product-service- 40757.html SAQ 1: How important is profit? How can a company survive when it isn’t making a profit? Explain; SAQ2: As a student, what do you think is the reason why some companies are successful and some are not? Cite some example and explain; Let’s Practice Directions: Read and analyze the following questions carefully. Then, write your answer on a separate sheet of paper. What are the different Explain....and Diseconomies Explain Economies of Scale...? of Scale 1.cost=fixed cost+ variable cost 1.scarce resources Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”  2.variable cost is not linear 2.step costs 3.cost change over time 3.complexity costs 4.Resource smoothing REMEMBER KEY POINTS Variable Cost is not Linear Profitability: As volume increases, the unit price of some inputs can Viability= Future Profit be reduced (e.g.volume discounts, bulk buying.) ▪ But expenditure generally percedes income. Cost change over time ▪ Expenditure may exceed Income for several Productivity increases the more you do something, the years(“Cash Burn”), before the company more efficient yuou get (learning by doing). reaches Break Even. Resource Smoothing ▪ A company is Viable if it is expected to make Where resources come in large units, larger volumes a profit one day. should produce less wasted resource. Better utilization ▪ Conversely, a company that is currently of skilled people. profitable may have a uncertain future. Diseconomies of Scale (Possible disadvantages of large Viability= Profit companies). ▪ Profit= Income minus Expenditure Scarse Resources ▪ The simplest notion of viability is that a Demand for a scarse resource increases its price or company is viable if it makes a profit. reduces its quality/ reliability. Viability= Shareholder Value Step Costs Distribution As volume increases, new fixed costs are incurred.For ▪ Some profit goes on interest(bank, debt.,etc.) example, a larger factory or an additional layer of and tax. management. ▪ Some profit may be distributed to investors. Complexity Costs ▪ Some profit may be retaine to fund further Loss of efficiency, reliability or performance. growth (organic/acquisition). Note distinction between ▪ “value stocks”- share price based on dividend yield. ▪ “Growth stocks”-share price based on expected growth. In the growth phase, money flows into the company from investors. Company profits (if any) are mostly reinvested. In the Income phase, money is returned to investors. Viability and Size: Is Bigger Better? Four Routes to Economies of scale (Possible advantages of large companies) Cost=Fixed Cost+Variable Cost as volume increases, the fixed cost is shared across larger number of units, so the average cost goes down. TRY Let’s see how much have you learned today! Let’s Directions: Readseeandhowunderstand much havetheyougiven learned today! Choose and encircle only the letter of questions. your choice. (Answer Let’s on thesee Learner’s how much Activity andlearned have you Assessment today! sheets.) 1. It is viability into the future, called? Continuation. a. Profitability c. Income.. b. Sustainability d. Stocks 6. Below are examples of stock, which 2. What do you mean with profit? among these is one example of income a. Income minus expenditure Let’s stocks? see b. Viability into the future how much a. High-tech companies c. Viability for defined period have b.you Utilities such as water company d. Money learned c. Cost-cutting and good management 3. Viability means___________? today!d. Steady earnings a. Viability into the future 7. How does money flows in growth b. Viability for defined period Let’s phase? see how much Written by: MA. ALICEF R. APOLINARIO have you “Unido, Junto avanza con el EduKalidad Cree, learned junto junto puede!” today!  c. Money a. phase, money flows into the d. Ability to survive company from investors 4. It is a steady earnings market, b. The money return to the investors expected to pay regular dividends to c. The money flows into investors shareholder, called? d. None of these a. Profitability c. Income 8. What is step cost? b. Sustainability d. Income Stocks a. As volume increases, new fixed 5. Niche Viability means? costs are incurred.For example, a a. Viability into the future larger factory or an additional layer b. Viability for defined period of management. c. Viability in single specialized b. As volume decreases, new fixed environment costs are incurred. d. Ability to survive c. Loss of efficiency, reliability or performance. d. The money flows into investors 9. What do we mean with Robustness? a. Viability across a range of environmental conditions. b. Viability into the future c. Viability for defined period d. Viability in single specialized environment 10. It is measured by its long-term survival and its ability to sustain profits over a period of time called? a. Robustness c. profit b. Viability d. Income stocks E-NET http://www.netmba.com/marketing/market/definition/ https://learn.marsdd.com/article/deciding-which-market-problems-to- solve/ Photo/ Image REFERENCE/S https://images.app.goo.gl/uKR1sotV1RhbUGy6A https://images.app.goo.gl/JsaeSQEG8Qws1N9E8 “Smiley faces Clip Art Thumbs Up”. https://www.pinterest.ph/pin/345932815105091760/ Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!” Answer Key: What are the different Explain Economies of Scale...? 1.cost=fixed cost+ variable cost As volume increases, the fixed cost is shared across a larger number of units. 2.variable cost is not linear As volume increases, the unit price of some inputs can be reduced. 3.cost change over time The more you do something, the more efficient you get. 4.Resource smoothing Better utilization of skilled people.....and Diseconomies Explain of Scale 1.scarce resources Demand for a scarce resource increases its price or reduce its quality/ reliability. 2.step costs As volume increases, new fixed cost is incurred. 3.complexity costs Loss of efficiency, reliability or performance. Let’s Practice TRY Assessment 1. b 2. a 3. d 4. d 5. c 6. b 7. a 8. a 9. a 10. b Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”  12 Entrepreneurship QUARTER 1 Week 4 Lesson 1 CapsLET Learner’s Activity and Assessment Sheets Schools Division Office of Zamboanga City Region IX, Zamboanga Peninsula Zamboanga City NAME: CapsLETGRADE/SECTION: Capsulized Self-Learning Empowerment Toolkit Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”  NAME OF SCHOOL: ADVISER SUBJECT & Entrepreneurship QUARTER 1 WEEK 4 DAY dd/mm/yyyy GRADE/LEVEL _______ TOPIC Developing a Business Plan Demonstrates understanding of concepts, underlying Code: principles, and processes of developing a business plan. CS_EP11/12EN LEARNING Learning Objective: TREP-0a-c-5 COMPETENCY Screen the proposed solution/s based on viability, profitability, and customer. UNDERSTAND Topic Title: Developing a Business Plan SAQ 1: How important is profit? How can a company survive when it isn’t making a profit? Explain; _________________________________________________________________________ _________________________________________________________________________ What is Digestion? _________________________________________________________________________ SAQ-2: As a student, what do you think is the reason why some companies are successful and some are not? Cite some example and explain; _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Let’s Practice! Directions: Read and analyze the following questions carefully. Then, write your answer on a separate sheet of paper. What are the different Explain....and Diseconomies Explain Economies of Scale...? of Scale 1.cost=fixed cost+ variable cost 1.scarce resources 2.variable cost is not linear 2.step costs 3.cost change over time 3.complexity costs 4.Resource smoothing TRY Let’s see how much have you learned today! Directions: Let’s see how much have you learned today! Written by: MA. ALICEF R. APOLINARIO Let’s see “Unido, Junto howcon avanza much have you learned today! el EduKalidad Cree, junto junto puede!”  11. It is viability into the future, called? Continuation. c. Profitability c. Income.. d. Sustainability d. Stocks 16. Below are examples of stock, which 12. What do you mean with profit? among these is one example of e. Income minus expenditure Let’s income see stocks? f. Viability into the future e. High-tech companies how much g. Viability for defined period have f. you Utilities such as water company h. Money learnedg. Cost-cutting and good 13. Viability means___________? today! management e. Viability into the future h. Steady earnings f. Viability for defined period Let’s see does money flows in growth 17. How g. Money phase? how much h. Ability to survive have e.you phase, money flows into the 14. It is a steady earnings market, learned company from investors expected to pay regular dividends to today!f. The money return to the investors shareholder, called? g. The money flows into investors c. Profitability c. Income h. None of these d. Sustainability d. Income Stocks 18. What is step cost? 15. Niche Viability means? e. As volume increases, new fixed e. Viability into the future costs are incurred.For example, a f. Viability for defined period larger factory or an additional layer g. Viability in single specialized of management. environment f. As volume decreases, new fixed h. Ability to survive costs are incurred. g. Loss of efficiency, reliability or performance. h. The money flows into investors 19. What do we mean with Robustness? e. Viability across a range of environmental conditions. f. Viability into the future g. Viability for defined period h. Viability in single specialized environment 20. It is measured by its long-term survival and its ability to sustain profits over a period of time called? c. Viability c. profit d. Robustness d. Income stocks Written by: MA. ALICEF R. APOLINARIO “Unido, Junto avanza con el EduKalidad Cree, junto junto puede!”