SHS

Entrepreneurship
Quarter 2: Module 5

i
Entrepreneurship
Grade 11/12: Quarter 2: Module 5
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Encarnacion R. Basallo, T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of Entrepreneurship

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

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Entrepreneurship
Quarter 2: Module 5

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 Target

Businesses focus on performance that is why companies have to look the

right supplier, just as they have to look the right employees. The
interconnectedness of every element needs to play an appropriate role to have a
successful supply chain.

In the previous lesson, you have discussed the basic understanding on how
to validate the service description of the product, which is essential to ensure, that
suppliers are providing the highest quality product and services.

This module will help you understand more on how these three concepts are
interrelated to each other. After going through this module, you are expected to:

1. Select/pinpoint potential suppliers of raw materials and other inputs necessary

for the production of the product or service;

2. Discuss the value/supply chain in relation to the business enterprise;

3. Recruit qualified people for one’s business enterprise.

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 Jumpstart

This activity will enable you to assess your prior

knowledge on profit and loss report

Activity 1
Direction: If you are an owner of a business, write five (5) possible criteria or factors
to consider in selecting your potential supplier of your product using the graphic
organizer. Briefly discuss each factors below. Use another sheet of paper for your
answer.

SUPPLIER’S
CRITERIA

Discussion:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Note: Refer to Scoring Rubric on page 15

Activity 2.

Direction: Read the statement carefully. Write X if the statement is true, and write
Y if the statement is false. Use another sheet for your answer.

___1. Conducting performance reviews on credit history shows the financial stability
of the supplier.

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___2. Dealing with distant suppliers might provide you a quick delivery time and
extra load costs.
___3. Developing partnership promotes stronger commitments and encourages a
greater interest in success for the material and finished goods.

___4. Value chain and Supply chain are synonymous in nature.

___5. In value chain, it starts the process from the source flows outward
to the customer.

___6. The final stage in the supply chain is t he distribution of the product to
consumers/customer.

___7. Michelle Porter introduced the concept of value chain in his 1985 book
"Competitive Advantage: Creating and Sustaining Superior Performance."

___8. One of the characteristics need to consider when hiring a qualified candidate
is their commitment in developing and growing their own career as a professional.

___9. If you are hiring someone to do a job that is tiresome in nature, look for a
candidate who can cope with pressure, tight deadlines, and complex customer
demands.

___10. Visiting candidate’s social media page will help you acquire more insight into
their skills and experience than their resume.

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 Discover

Potential Suppliers of Raw Materials

Selecting the right suppliers is essential for building a successful

business. By employing some supplier's selection criteria, it is possible to
identify enterprises who are reliable and meet your particular needs.

Here are some factors to consider in selecting potential suppliers of raw

materials and other inputs:

1. Price

If you focused on managing your finances, a main consideration for selecting

suppliers is affordability yet possesses a good quality product.

2. Reliability

Developing a closer relationship with a reliable supplier means getting quality,

timeliness, innovation and competitiveness, which are all assets in
continuously receive throughout the supply chain relationship.

3. Stability

Look for qualified suppliers who have been in business for a long time. Stability
is important, when entering into a long-term contract with a supplier. Conduct
performance reviews on their credit history to see if they are financially stable. It
requires also in finding out what businesses use a specific supplier's services and
asking them for a reference.

4. Location

Consider about location when selecting suppliers. Dealing with distant suppliers
might provide you a longer delivery time and extra load costs. If you need it fast, a
local supplier might be a better option. Be sure to check on the freight policies of
distant suppliers. For instance, bulk orders might get a free shipping or you might
combine different orders to reduce costs.

5. Developing Partnerships

Basically, the supplier’s relationship is at its best when a strategic partnership

is made, allowing full facts of the source of materials and guaranteeing high

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 quality. A supplier is with a stronger business partnership if it provides the
following:

 Do in advance, what is required from the manufacturer and start to take the
leadership role in communication.

 Notify and communicate the manufacturer if quality problem is identified that

limit production availability.

This type of partnership promotes stronger commitments and encourages a

greater interest in success for the material and finished goods.

Following these factors will enable you to select suppliers who can support to
improve your productivity, ensure you to produce quality goods/services within
budget.

Value/Supply Chain

In business, there are forms to be done that anybody has to see its benefits. One
such form is implementing successful value chain. Value and supply chain often
used interchangeably. Yet, there is a difference between these two models. Supply
chain management and value chain management are connected both in the
processes involved in getting goods from the enterprise board, through
purchasing, manufacturing, and into the hands of consumers. However, each
discipline views the process from a unique standpoint, and with different
objectives.

Let us examine value chain management and supply chain management and their
differences to help us understand how they influence your business.

https://www.cmtc.com/hsfs/hubfs/Value_Chain_V._Supply_Chain_flows.jpg?width=500
&height=356&name=Value_Chain_V._Supply_Chain_flows.jpg

Figure 1. Value Chain and Supply Chain- A Different Perception

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 Figure 1 shows that in supply chain, it starts from the source flows
outward to the customer. On the other hand, the value chain starts with the
customer and flows inward to supplier. In addition, Table 1 indicates also on the
differences of the two models:

BASIS SUPPLY CHAIN VALUE CHAIN

Definition The integration of all the The series of input activities

activities that starts from the that focuses on creating or
manufacturing of raw material adding value to the product
into the finished product and for its valued customers
ends when the product reaches which often involves finding
the final customer. the raw material for
manufacturers or just
simply packaging and
marketing for retailers.

Origin Operation Management Business Management

Concept Transmission Added-Value

Structure Product Request - Supply Customer Request - Value

Chain - Customer Chain - Product

Goal Customer Satisfaction Gaining competitive strength

https://keydifferences.com/difference-between-supply-chain-and-value-chain.html#ComparisonChart

Table 1. Value and Supply Chain Comparison Chart

Supply Chain
Supply chain defines as a tool of business conversion that reduces costs and
maximizes customer satisfaction by providing the right product at the right price at
right time at the right place and. It involves all activities in the distribution through
a product transmission that reaches the final user while remaining profitable and
competitive.

Supply chain uses a process that control and plans the operation known as
Supply Chain Management. It manages the flow of raw material, within the business
and the flow of finished product to the end user along with full customer satisfaction.
There are five (5) main elements of supply chain management:

1. Producing and designing a product to meet consumer request

2. Obtaining the raw materials required to produce the products
3. Manufacturing and developing the products

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 4. Distributing the product to consumers/customer
5. Accepting and processing returns of defective products

When the process done effectively, the costs of materials and efficient
transport may reduce its costs for the consumer while increasing profits for the
manufacturer.

Value Chain

Michael Porter pioneered the concept of value chain in his 1985 book
"Competitive Advantage: Creating and Sustaining Superior Performance." He used
this concept to show businesses add value to their raw materialls to produce
products that finally sold to the market. There are five steps in the value chain
process, which allows a company to have a competitive strength over other
competitors. The five steps are:

1. Inbound Logistics: Deals with receiving, storing and inventory control.

2. Operations: Value-creating activities that convert inputs into finished

products such as assembly and manufacturing.

3. Outbound Logistics: Activities concerned with the collection, storage, and

distribution of finished product or service to customers.

4. Marketing and Sales: Involve activities that associated among the general
consumers or buyers to purchase a product.

5. Service: Activities that maintain and enhance the value of the product, such
as customer care and warranty package.

Supply chain is as significant as a value chain to the business world. The two
models are difficult to separate in that most of their functions connect. Both supply
and value chains need transportation and storage and end with the consumer
receiving their goods/service. Both have similar goal that is to satisfy the customers
with your products while operating efficiently and effectively, in order to give the
business a better bottom line but take somewhat different tracks to get there.

Recruit Qualified Candidate for One’s Business

Enterprise

Without growing the number of people with whom you work, you cannot
normally grow your business. Your success will depend on your capability to organize
a team of highly qualified employees who are dedicated to the goals and objectives of
your business. Recruiting defines the processes of the companies use to find
qualified candidates to fill job openings.

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 When recruiting, consider your actual needs of your business. An impressive
list of qualifications and broad work experience are necessary, but these are not the
only factor to consider when recruiting potential employees. Here are some ways to
improve your recruitment process:

1. Search for A Career-Oriented Individual

One of the characteristics need to consider when hiring a qualified candidate

is their commitment in developing and growing their own career as a professional.
Look for an employee who is working to be loyal and assess your job as a chance to
improve their career and be an asset to the company at the same time.

2. Evaluate for Practical Experience

Hiring candidate who is both qualified and experienced in your line of work is
very important. To be able for them to integrate more quickly and become familiar
with the job, concentrating on the practical experience of your potential employee is
the key.

Naturally, every new employee needs to undergo an adjustment period if a

candidate does not have the required practical experience for the job you are looking
for but keep that period as short as possible.

3. Test Your Applicants

One of the ways to improve your recruitment process is to implement various

strategies that can provide you data as far as learning abilities and analytical skills
of the candidate are concerned. Even they have an impressive resume, and they come
off as self-assured during the interview, it is up to the employer to assess potential
employees, because some of them might not been completely truthful on their
resume. In addition, you will have better understanding on how resourceful they are
when presented with a new challenge.

4. Determine Strengths Needed for the Position

If you are hiring someone to do a job that is tiresome in nature, you should
look for a candidate who have the necessary mental and psychological strength to
cope with pressure, tight deadlines, and complex customer demands.
Determine whether the candidate will be able to stay self-motivated, excited to be an
active participant in business efforts, and willing to put in the extra work to achieve
success in the business, even they are required to perform the task repeatedly.

5. Culture Fit

Another way to consider when hiring a candidate is their ability to fit in and
adjust to your business’s culture. It means they need to develop enough their social
skills, to maintain the positive atmosphere in the workplace. Since every job involves

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working with people, and communicating with clients, should hire a person with
strong social skills. Check their work history through interview questions and
conduct a reference check with their former colleagues and bosses to make sure they
may not cause future harm to your organization. This should help you a complete
picture of every candidate you interview.

6 . Take them Onboard

Once you have decided to hire candidate, provide them an actual work pairing
them with a more experienced worker who can mentor and train during his or her
initial days in the workplace. In this process, you will recognize everything about
their intelligence, skills, ability to manage with stress, social skills, and weaknesses.

7. Run Social Checks

Visiting candidate’s social media page will help you acquire more insight into
their skills and experience than their resume.

Finding the qualified candidate is not that simple and time-consuming process
because of competition, varying labor force, demographics, and workers’ principles,
but it is well-worth something that will benefit the business in the future. To be
successful, you may need to be open-minded and creative.

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 Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Activity 1:

Direction: Read each item carefully. Choose the letter of the correct answer in the
box and write it in a separate sheet.

A. Develop Partnership E. Stability I. Recruiting

B. Inbound Logistics F. Service J. Price
C. Outbound logistics G. Value Chain K. Culture Fit
D. Operations H. Career-Oriented L. Supply Chain

___1. The ability of the supplier who have been in the business for a long period.

___2. It involves all activities in the distribution through a product transmission to

the final user.

___3. An activity that maintain and enhance the value of the product, such as
customer care and warranty package.

___4. A factor of selecting potential supplier that focused on managing your finances.

___5. The ability of qualified candidate that fits in and adjusts to your business’s
culture.

___6. The series of activities that focuses on adding value to the product for its valued
customer.
___7. An activity concerned with the collection, storage, and distribution of finished
product or service to customers.

___8. The processes of the companies use to find qualified candidates to fill job
openings.

___9. Value-creating activities that convert inputs into finished products such as
assembly and manufacturing.
___10. A supplier’s relationship promotes stronger commitments and encourages a
greater interest in success for the material and finished goods.

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Activity 2.

Direction: Write the similarities and the differences of Supply Chain and Value
Chain in a separate sheet of paper.

1. Similarities:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Differences:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Note: Refer to Scoring Rubric on page 15

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 Deepen

Hope that you have gained a lot of knowledge on the discussion. This time let us
test your understanding by doing the following activity! Good luck!
Activity 1. A.

A. Activity 1. (Note: Scoring answers in all activities that need explanation and
discussion, please refer to Scoring Rubric on page 15)

Direction: Conduct an interview or survey of an entrepreneur nearby your area

through answering the following questions below.

Guide Questions:

1. What is your name (optional): _____________________________________________

2. What is the type of your business: _________________________________________
3. What is/are your product: _________________________________________________
4. Who is/are our supplier/s of your product: _________________________________
5. Do you stick to only one supplier? Why? ____________________________________
6. Why did you choose (Name of Supplier) as the main source of your product?

B. Direction. Create a report on the gathered details in A. List down the different
factors used or applied in the activity at the end of the report.
_____________________________________________________________________________
____________________________________________________________________________

Activity 2.

Direction. Think of a product. Discuss along by filling out the details in the table
below using the guided questions in each stage. Write your answer in another sheet
of paper. (20 points)

Product Name:

STAGE DETAILS
Supply

What are the raw materials needed to

make the product?

Who are the suppliers of these raw

materials?

Manufacturing

What procedures take to make this

product?

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 Distribution

How does the product get to sellers?

Consumers

How does it take to get the end-product

to the consumers or in target market?

Activity 3. My Ideal Employee!

Direction: Suppose you are the owner of a company who are about to recruit new
phase of employees. Complete the pre-hiring worksheet to gain clarity of your “Ideal
Employee’s” statistics, interest and behavior. Use another sheet of paper.

COMPANY NAME

Photo
DEMOGRAPHICS PROFILE CARRER ACCOMPLISHMENT
Name: Write any of your career
Age: accomplishment
Gender:
Address :
Career Stage: Leadership Trainings
Education Level:
Household income :
PSYCHOGRAPHIC PROFILE
 Activities & Interests: Job Expertise/Skills
 Personality characteristics:
Attitude:

Scoring Rubric

Indicator Moderate Strong Strong Evidence Very Strong Evidence

Evidence (1 - 2 (3-4 points) (5 points)
points)
Quality of Learners did Some details may Most details are
Work/ some of the not be reflected correctly reflected in
Understanding information, but accurately in in the the table. It includes
it has missing table. It may be all necessary
significant missing and hard to information that is easy
details. understand. to understand

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 Gauge

Direction: Read each item carefully. Choose the letter of the correct answer and
write it in a separate sheet.

1. Which of the following is an advantage to a supplier of delivering products on time

consistently?
A. Lower payment
B. Repeating orders
C. Lower trading costs
D. Minimal buffer stock consumed

2. Which of the following factor to consider as the most important choosing the right
suppliers?
A. Price
B. Location
C. Reliability
D. Partnership

3. Which of the following is the initial stage in a supply chain for a candy bar?
A. The supplier of sugar.
B. The seller of the candy bar.
C. The manufacturer of the candy bar,
D. Transportation between each stage of the candy bar

4. Which area of business will particularly focus to ensure deliveries of product to

customer arrive on time?
A. Sales
B. Finance
C. Logistics
D. Marketing

5. Manufacturer X and Y supply manufacturer Z, which supplies customers A and

B. Which of the following statements is best?
A. The supply chain for manufacturer X includes Y, Z, A and B.
B. The supply chain for manufacture Y includes X, Z, A and B.
C. The supply chain for company Z includes X, Y, A and B.
D. All the above.

6. Which of the following statements is true?

A. The supply chain integrates all activities and processes to provide a product
or service to the end user.
B. Raw material in the supply chain typically flows from customer to producer.

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 C. The supply chain involves only one supplier.
D. All of the above.

7. Which of the following generates the best source of the recommendation for a
potential job candidate?
A. Internet
B. Employee referral
C. Company Web site
D. Recruiting organizations

8. Manufacturing is important to the economy because:

A. It adds value to products and services
B. It supports service and production.
C. It creates wealth.
D. All of the above

9. Which of the following best describe the importance of recruiting?

A. To determine whether to use inside or outside candidates.
B. To predict the short-term supply of candidates.
C. To develop and increase the pool of applicant
D. To create positive story about a company.

10. What is the initial step in the recruitment process?

A. Perform candidate background checks.
B. Decide what positions needs to fill.
C. Perform an initial interview.
D. Create a pool of candidates.

Great job! You are done with this

module.

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18
Jumpstart
Activity 2.
1. X
2. Y
3. X
4. Y
5. Y
6. Y
7. Y
8. X
9. X
10. X
Explore
Activity 1.
1. E
2. L
3. F
4. J
5. K
6. G
7. C
8. I
9. D
10. A
Gauge
1 B 6 A
2 D 7 B
3 A 8 D
4 C 9 C
5 C 10 B
Answer Key
References
Online Resources

Stevens, Courtenay. (2020, November 09). How to Choose the Right Supplier for Your
Business. https://www.business.org/finance/inventory-management/ how-to-
choose-the-right-supplier-for-your-business/

Heathfield , Susan M. ( 2019, August 29). 10 Tips for Successful Employee Recruitment.
https://www.thebalancecareers.com/top-tips-for-successful-employee-recruiting-
1918953

O’Byrne, Rob. (2017, Jan 18). The Supply Chain and the Value Chain: The Same but
Different? https://www.supplychainsecrets.com/the-supply-chain-and-the-value-
chain-the-same-but-different/

Surbhi S. (2015, October 1). Difference Between Supply Chain and Value Chain
https://keydifferences.com/difference-between-supply-chain-and-value-chain.html

Eldridge, Bradd. (2012, August-September ). Supplier Management: Six Steps to Selecting

the Right Supplier. https://www.foodsafetymagazine.com/
magazine-archive1/-/supplier-management-six-steps-to-selecting-the-right-
supplier/

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