ENTREPRENEURSHIP 12

QUARTER 2 - MODULE 3

11/12
Entrepreneurship
Quarter 2 – Module 3
4Ms of Operations

LessLesson 1: Value/Supply Chain

Learning Competencies: Demonstrate understanding of the 4Ms of operations.

(TLE_ICTAN11/12EM-Ia-1)
At the end of the lesson, you are expected to:
 discuss the value/supply chain in relation to the business enterprise
 recruit qualified people for one’s business enterprise, and
 develop the business model and forecasts the revenues of the business.

What is it?
SUPPLY CHAIN
includes those various firms
included in the execution of the
activities needed to produce and
transport a product or service to
consumers or industrial users. A
supply chain comprises supplies
that provide raw materials to a
producer, wholesalers and
retailers that distribute finished
goods to consumers. The main
goals focus on shared efficiency,
optimized transportation and
utilization, quality improvement
and long-term stability:
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1. Collaborative effort for efficiency
2. Maximized transportation and logistics
3. Quality enhancement
4. Long term stability and relationship
KEY PROCESS OF VALUE/SUPPLY CHAIN MANAGEMENT
1. Customer relationship management – this will allow companies to prioritize their marketing focus
on different customer groups based on each group’s long term value to the company or supply chain.
2. Customer service management – this is a multi-company, unified system of responding to
customer’s complaints, concerns, questions or comments.
3. Demand management – this process tries to align supply and demand throughout the supply chain by
foreseeing customer requirements.
4. Order-fulfilment– this engages in generating, filling, delivering, and providing on-the-spot service
for customer’s orders.
5. Manufacturing flow management – this ensures that firms in the supply chain have the necessary
resources to produce with flexibility.
6. Supplier relationship management – this provides structural support for developing and maintaining
good relationships especially with highly valued suppliers in order to gain performance advantages.
7. Product development and commercialization – this facilitates the joint development and marketing
of new products and services among a group of supply chain partner firms.
8. Returns management – this enables to manage volumes of returned product efficiently while
maximizing related costs.

9. What’s more?

Directions: Research and prepare a sample value or supply chain from your favorite fast food business in the
country. Follow the graphic organizer below and use the answer sheet provided.

SUPPLIER: MANUFACTURER: CONSUMER:

Example: Marcela Farms Example: McDo Example: General Public

LeLesson 2: Recruitment
What
is it?

RECRUITMENT is the process of convincing or encouraging a prospective applicant to fill in a vacant

position.
STEPS IN RECRUITMENT
1. Study the different company jobs and write its description and specifications.
 Job description – it defines the duties and responsibilities of a particular position.
 Job specification – it gives the specific qualifications required for the position.
2. Requisition of new employee – a formal requisition form is required indicating the position to
be filled, date needed, qualifications and other requirements needed for an applicant.
3. Actual recruitment of applicant/s
Sources of applicants:
 Internal – employees recruited within the company.
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 External–applicants recruited through advertisement, referrals, and placement
agencies.
SELECTION is the process through which organizations identify and make decisions about the
applicants who will be allowed to join the company.
STEPS IN SELECTION
1. Reception in selection – it involves screening of applicants by which applicants are
interviewed.
2. Preliminary interview – the purpose of preliminary interview is to check if an applicant is
qualified for the position and eliminate those applicants who are disqualified.
3. Filling out of application form – this serves as a guide in interviewing the applicant to
determine if the applicant matches the job requirements.
4. Employment test – this is given to measure applicant’s abilities needed for the job.
5. Final interview by immediate supervisor – to determine who among the applicants should be
hired and fitted for the job.
6. Physical & medical examination
 Medical examination – this is to determine if the applicant is fit to work.
 Pre-employment test – this is to obtain important information of the applicant in
terms of work performance.
7. Hiring – The applicant who passed the selection requirements is sent to the Human Resource
Department for final completion of the hiring process.
8. Orientation – The new employees are oriented on company policies, rules, and regulations
and informed or directed about his job.
TRAINING/RETRAINING – new applicant is required to undergo training to help him perform
his job efficiently. Retraining is required to those who need enhancement.
COMPENSATION – this contains compensation of the personnel based on their qualifications
and the usual standard in determining wage rates is matching them with the industry standards.
ESTABLISHING THE PAY STRUCTURE – this means establishing pay rates or ranges
compatible with ranks or points at through job evaluation.
ORGANIZATIONAL POLICIES – this explains the personnel policies that should be
implemented in the workplace.
COMPANY MANUAL – this serves as an important communication tool between an employee
and employer.
COMPANY CODE OF DISCIPLINE– this is the rules and regulations to achieve total efficiency
and harmonious relationship.

What’s more?

Directions: What would be the job description and specification to recruit qualified applicant/s
for a store manager position? Follow the graphic organizer below and use the answer
sheet provided.

Example:
JANITOR
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JOB DESCRIPTION: JOB SPECIFICATION:

In charge in sanitation and At least high school graduate

cleanliness of the workplace

LessLesson 3: Business Model and Revenues

What is it?

BUSINESS MODEL
 This describes how the business will generate revenue and support financial projections.
 This will greatly help in describing the importance of the business in gaining profit and sales.
 This describes the means and methods a firm employs to earn revenue projected in its plans.
CHARACTERISTICS OF A STRONG BUSINESS MODEL
1. Identify the specific audience – this is to outline each persona’s demographics, common challenges and
the solutions your company will offer.
2. Establish business process – this is to understand the activities required to make business model work.
3. Record key business resources – this is to document essential business resources to ensure the business
model is adequately prepared to sustain the needs of the business.
4. Develop a strong value proposition – this is to build strong standing out among the competitors.
5. Determine key business partners – this is to determine the key partners that can contribute to the
business’s ability to serve customers.
6. Create a demand generation strategy – this is to create strategy that builds interest in your business,
generate leads and designed close to sales.
7. Leave room for innovation – this is to give room for changes.
HOW TO FORECAST REVENUE AND GROWTH
Forecasting is calculating or predicting usually as a result of study and analysis of available pertinent
data.
Revenue is the total income produced by a given source, a property expected to yield large annual
revenue, the gross income returned by an investment.
Growth is a stage in the process of growing; it it’s a result of growth, a producing especially by growing.
It is anticipated progressive growth especially in capital value and income.

Revenue forecasts are useful both for start-ups and existing businesses. Here is how to prepare:
1. The preparation for projected sales is the first thing to be done in making revenue forecasts of the
business operation.
2. After the projected sales is determined, the business operation can forecast the revenues using the
formula:

Revenue Forecast = Projected Sales – Total Projected Expenses

For example:
JENNY Manufacturing Company sold 23, 430 units of product AM in 2018 which was higher by 10%
compared to the units sold in 2017. The products were sold at P300 per unit. Due to heavy advertising and other
promotional activities and shift in buyer’s preferences, the company expects to increase the sales 15% in 2019
against the 2018 performance. The company plans to sell the product at P350 per unit. Moreover, the company
has already projected the total expenses amounting to 500,000.00.

Required: Prepare the revenue forecast of Jenny Manufacturing Company in 2019.

Answer:
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1. The projected sales of JENNY Manufacturing Company for 2019 appears as follows:

JENNY Manufacturing Company

Sales Budget
For year 2019

Selling Units Estimated Price Sales

Projected sales (23,430 X 1.15) 26,945 P350 P9, 430,750
It is emphasized that the budgeted peso amounts are not expressed in exact figures but rounded to
thousands.

2. Revenue Forecast = Projected Sales – Total Projected Expenses

= 9, 430, 750 – 500,000.00
= 8,930,750.00

What’s more?

Directions: A. Develop a business model from the given product through what the means and methods on
how to earn revenue or income. Follow the graphic organizer below and use the answer sheet
provided.

5 MEANS & METHODS TO EARN

Product: REVENUE:
GRILLED SEA FOODS Example: Market the product through
advertising

B. Prepare the revenue forecast of ANGLE Trading Company in 2019. (10 pts.)

ANGEL Trading Company sold 25, 450 units of product in 2018 which was higher by
15% compared to the units sold in 2017. The product was sold at P400 per unit. The company
expects to increase the sales 25% in 2019 against the 2018 performance, because of the efforts
rendered by the marketing department of the company. The company is planning to sell the
product at P500 per unit. Moreover, the company has already projected the total expenses for
2019 amounting to 1, 000,000.00.

Assessment

Directions: Read each item carefully and write the letter of your choice on your answer sheet.

1. This includes those various firms included in the execution of the activities needed to produce and
transport a product or service to consumers or industrial users
a. supply chain c. supply and demand chain
b. chain of command d. demand chain
2. This will allow companies to prioritize their marketing focus on different customer groups based on
each group’s long term value to the company or supply chain.
a. returns management c. demand management
b. customer relationship management d. order-fulfilment
3. This enables firms to manage volumes of returned product efficiently while minimizing related
costs.
a. order-fulfillment c. returns management
b. demand management d. customer relationship management
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4. This is defined as the duties and responsibilities of a particular position.
a. job description c. job vacancy
b. job specification d. job agency
5. This gives a specific qualifications required for the position.
a. job agency c. job specification
b. job description d. job vacancy
6. This refers to the employee/s recruited within the company.
a. internal c. external
b. outsource d. insource
7. This refers to an applicant/s recruited within through advertisement, referrals, and placement.
a. insource c. outsource
b. external d. internal
8. This refers to the process through which organizations identify and make decisions about the
applicants who will be allowed to join the company.
a. recruitment c. selection
b. compensation d. training & retraining
9. This describes how the business will generate revenue and support financial projections.
a. business plan c. business venture
b. business model d. business idea
10. This refers to the total income produced by a given source.
a. revenue c. expenses
b. cost d. expenditure

Lourdes National High School

Panglao, Bohol

Entrepreneurship 12
Quarter 2 – Module 3
4Ms of Operations

Answer Sheet

Name: _________________________________ Score: ____________

Grade & Section: _________________________ Date: _____________

Lesson 1

What’s more?

Supplier: Manufacturer: Consumer:

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QUARTER 2 - MODULE 3

Lesson 2
What’s more? STORE MANAGER

JOB DESCRIPTION: JOB SPECIFICATION:

Lesson 3
What’s more? 5 MEANS AND METHODS TO
EARN REVENUE:
1.
PRODUCT: 2.
GRILLED SEAFOODS 3.
4.
5.

Assessment
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Teachers’ Signature Parents’ Signature Over Printed Name

Assessment

1. 2. 3. 4. 5. 6. 7.

8. 9. 10.
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QUARTER 2 - MODULE 3

Answer Key
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QUARTER 2 - MODULE 3
Lesson 1
What’s more?
Follow the rubrics below in checking:
Supplier – 2 points
Manufacturer – 2 points
Consumer – 2 points

Lesson 2
What’s more?
Follow the rubrics below in checking:
Position – 2 points
Job Description and its relatedness – 4 points
Job Specification and its relatedness – 4 points

Lesson 3
What’s more?
A. Follow the rubrics below in checking:
Means and methods to earn revenue – 5 points each
B.
ANGEL TRADING COMPANY
Sales Budget
For year 2019

Selling Units Estimated Price Sales

1. Projected sales (25,450 X .25) 31,813 P500 15,906,500
2. Revenue forecast = Projected Sales – Total projected expenses
= 15, 906, 500 – 1,000, 000
= 14,906,500

Assessment

1. a
2. b
3. c
4. a
5. c
6. a
7. b
8. c
9. b
10. a

References

Dr. Marife Agustin-Acierto (2017). Entrepreneurship. Room 215 ICP Building, CabildoSt.,
Intramuros Manila: Unlimited Books Library Services and Publishing, Inc.