Entrepreneurship WEEK 2
Onwards community.
(Might Condense Info Later on)
WEEK 2
(Complete Notes from Video)
SKILLS AND CORE COMPETENCIES IN
ENTREPRENEURSHIP
Cognitive Skills - Refers to the
mental ability of the
entrepreneur to learn new
things, generate new ideas, and
express knowledge in both oral
and written format.
Skills:
1.Ability to understand written
materials
2.Ability to learn and apply new
information
3.Ability to solve problems
systematically
4.Ability to create new ideas.
5. Ability to innovate new
products and procedures and
methods.
Technical Skills - Technical
skills relate to their knowledge
and proficiency in a specialized
filed like Computer technology,
accounting, marketing,
operations research,
engineering, medical fields.
Skills:
1.Information Technology
2. feasibility study and
business plan preparation
3. Technical writing skills
4. marketing
5. management and finance
Interpersonal Skills - the
relationship and interaction of
the entrepreneur with the
workers, suppliers, creditors,
prospective customers, and other
members of the business
Skills:
1. Skills in verbal
communication
2. Skills in non-verbal
communication
3. Skills in listening
4. Skills in leading
5. Skills in negotiating
Environments to Consider before
starting a business.
Physical Environment - COMPOSED
OF THE NATURAL ELEMENTS THAT ARE
INHERENT IN THE EARTH.
Climate - Consider the prevalent
condition of the area where
he/she intends to open the
business
PHYSICAL RESOURCES - Critically
assess the availability of raw
materials in the locality before
opening a new business
WILDLIFE - Ensure that his/her
business contributes to the
preservation and not the
destruction of ecological system
Societal Environment - POSITIVE
RELATIONSHIP BETWEEN THE
SOCIETAL ENVIRONMENT AND THE
ENTREPRENEURIAL VENTURE
- Technically called
ENVIRONMENTAL SCANNING
SOCIAL FORCES - Resulting from
human interactions that can
influence the thoughts,
behaviors, attitudes, actions,
beliefs.
- Values,Traditions, literacy
level, market psychology.
- The product of the actions of
the people in the important
events that happen in any given
time. Like: Extended Families.
- Trends in social media.
POLITICAL FORCES - Comprising of
the political parties, political
systems, and other political
groups that influence political
stability
- Trade and regulation,taxation,
government stability
unemployment, worker benefits,
and election practices.
CULTURAL FORCES - The integrated
characteristics of a group of
people or ethnic group in a
particular society
- Religion, Language, beliefs,
customs, and education.
- Tradition
ECONOMIC FORCES - Primarily
caused by changes or movements
in the Philippine economy that
have direct or indirect effects
- Interest and rates, inflation
rates, fiscal policy, monetary
policy, exchange rates,
employment, consumer confidence
Interest rate - the rate of
which the lender rates the
borrower.
LEGAL FORCES -Bodies that are
directly involved in the
legislation and interpretation
of laws and ordinances
- Product control, pricing and
labeling, health and safety of
the workers, administration of
election process, ad and
promotion, exercise of
professions, and education admin
TECHNOLOGICAL FORCES - Trends
and developments in computer and
information technology
- Internet, social media, e-
commerce, tech advancement, and
infrastructure.
INDUSTRY ENVIRONMENT - TRENDS
AND CHANGES ARE EASILY AND
IMMEDIATELY FELT BY THE BUSINESS
GOVERNMENT - The system or
institution that handles the
affairs of a particular country
SUPPLIERS - Individual persons
or companies that provide the
required materials, parts, or
services to the business
-Must check the quality of the
resources.
CUSTOMERS - The buyers of goods
or services produced or rendered
by the business
COMPETITORS - Forces that
produce, sell, or render
products or services similar to
those of the business
Direct Competitor - Produce and
sell similar product
Pepsi and Coca Cola
Indirect Competitor - Sells
substitute products.
Fruit Juice and Coca Cola
EMPLOYEES - Workers of the
business who are highly
responsible for the production
of goods or delivery of services
CREDITORS - Refer to banks,
financial institutions, and
financial intermediaries engaged employees and members of the
in the lending of money management

Culture of the business or

ENVIRONMENTAL SCANNING: INTERNAL organization
04 ANALYSIS
Individual culture of the
- Internal Environment, employees
environment within the business.

Business Resources - are assets

or properties owned or
controlled by the business.

Tangible - Physical appearance

and form. Can be seen and
touched
- Money, buildings, equipment,
machineries, office supplies,
land, and human resources.

Divided into Current and Fixed

Resources.

Divided - applied, consumed or

used within 1 year or short
period of time.

- Cash,office supplies,

Fixed - properties whose

usefulness and benefits extend 1
year

- Land, machinery, equipment

Intangible Resources - The

assets of the business that do
not have physical appearance or
form.

-patent, copyright, formula,

computer software, reputation,
and good will.

Business culture or
organizational culture. -
Collection of values, beliefs,
principles, and expectations
learned and shared by the

Culture acceptance and Cultural
Integration
Formal organizational
-arrangement of the business in
terms of hierarchy of positions
-the complexity of the business
based on the nature of the
environment and factors that
play into the business.
SCANING OF INTERNAL ENVIRONMENT
SWOT ANALYSIS -pioneered by
George Albert Smith Jr., Roland
Christensen
STRENGTHS- strong attributes or
capabilities of the business
WEAKNESSES- poor attributes or
deficiencies that give
disadvantage to the business
OPPORTUNITIES- products or
services that must be exploited
THREATS- external events in the
environment
USING THE SWOT ANALYSIS
1. USE THE STRENGHTS TO EXPLOIT
THE BUSINESS OPPORTUNITIES
2. IMPROVE THE WEAKNESSES TO
AVOID THE THREATS
STRENGHTS
-Qualified working force
-Complete and new physical
facilities
-Democratic leadership style
-Motivated workers
-Valuable intangible assets
WEAKNESSES
-Autocratic form of leadership
-Demoralized employees
-Poor and dilapidated equipment
and machineries
-Unskilled workers
-Poor technological structures
OPPORTUNITIES
- Innovative products introduced
to the market
- Increasing the market share
because of market advantage
- Providing services to new
customers
- New programs of the government
THREATS
-Possible entry of competitors
-Stiff government regulations
-Higher interest rates
-Entry of cheaper products
-Unstable peace and order
situation
-Shift of customers’ taste anf
preference
Example:
S - Complete and new processing
facilities
W - Unskilled workers to handle
the new technological equipment
O - New potential customers
T - Entry of new competitors
NATURE AND TYPES OF
ENTREPRENEURIAL 05 VENTURE
SOLE PROPRIETORSHIP - Owned by
one person only
May include cooperatives, joint
ventures, and nonprofit
organizations - SPECIAL CORP

PARTNERSHIP -
-Owned by two or more persons
-Owners are usually called
partners

CORPORATION -
Formed by at least five (5)
but not more than fifteen (15)
person.
-stock
-non-stock

Domestic Corp - Local

Foreign Corp - Other Country

STOCK - Authorized to issue

shares of stock to stockholders

NON-STOCK - Authorized to issue

shares of stock to the members
WEEK 3
( With few to no notes from the
video)
NATURE OF ENTREPRENEURIAL
Market Identification
VENTURE
Market Segmentation - involves
Engaged in the buying and
dividing a market into parts
selling of products or goods -
that reflect different customer
MERCHANDISING
needs and wants.
- The entrep must find ways to
Provides service to customers
tend to a homogeneous group.
SERVICE Producer of goods or
With specific interest.
products - MANUFACTURING
- Sometimes called NICHE
ENTREPRENEURAL MARKETING
Production of agricultural goods
and animals - AGRICULTURE
Types of Market Segmentation
Nature of combined types of
• GEOGRAPHIC SEGMENTATION
business entities - HYBRID
• DEMOGRAPHIC SEGMENTATION
• PSYCHOLOGICAL SEGMENTATION
• BEHAVIORAL SEGMENTATION
Geographic Segmentation Potential Drawbacks of Market
- Climate Segmentation
- Dominant Ethnic group
- Culture ● Segmentation is an imprecise
- Density science
- Classification of the ● Markets are increasingly
geographic unit (First class, dynamic
second class, etc.) ● Just because you can identify
a segment doesn’t mean you can
Demographic Segmentation reach the customers in it
- Gender
- Age Market Targeting
- Income - set of customers sharing
- Occupation common needs and wants that a
- Education business decides to target
- Religion
- Ethnic Group Market Positioning
- Family Size - the place a product occupies
in customer minds relative to
Behavioral Segmentation competing products
- Perception
- Knowledge
- Reactions
- Benefits
- Loyalty
- Responses

Psychological Segmentation
- Needs and wants
- Attitude
- Social Class
- Personality traits
- Knowledge and awareness
- Brand Concept
- Lifestyle

Benefits of Market Segmentation

● Focuses resources on parts of

a market where the business can
succeed
● Allows a business to grow
share in markets or to “ride
the wave” of fastgrowing
segments
● Helps with new product
development
● Helps make the marketing mix
more effective
Positioning and Competitive
Advantage
• Customers choose products
based on the value proportion
• Providing superior value than
the competition is a source of
competitive advantage (if it can
be sustained
• There are various possible
value differences which can
deliver competitive advantage
Possible Positioning Strategies
• Offer more for less -good
quality at low prices
• Offer more for more -high-
priced luxury products with
prestige value
• Offer more for the same -new
features & better performance
for the same price
• Offer less for much less -good
quality, back to basics, low
prices
Benefits of Market Pos
• IDENTIFIABLE The benefits or
attribute is easily associated
with the product • BENEFICIAL
The attribute provides valuable
benefits to the target customers
• DISTINCTIVE ADVANTAGE The
attribute is distinct to the
product
• EFFICIENT AND REWARDING The
cost in attaching the attribute
or value to the products is not
higher than the
WEEK 4
(No video notes
yet)
Consumer Buying
Behavior
- is the reaction of the
consumer to various events or
forces happening to the business
community that contribute to the
decision process.
Environmental
Factors
CULTURAL FACTOR The perceptions,
attitudes, value system, and
even religion of these groups
influence their buying behavior.
SOCIAL FACTOR
Relationship maintained or
established by the consumers
with other members of society
SOCIAL CLASS -informal grouping
of consumers based either on the
personal perception of the
consumers or that of others
PERSONAL FACTOR
Personal characteristics of the
buyer in terms of age,
occupation, income, and
lifestyle
PSYCHOLOGICAL FACTOR
Perceptions, beliefs, and
attitudes of the consumers
BUYING DECISION PROCESS
RECOGNITION OF NEEDS AND WANTS
The recognition of the need
basically comes from within the
person
SEARCH FOR RELEVANT INFORMATION
The search for relevant
information usually happens when
the product is not an ordinary
household commodity
EVALUATION OF ALTERNATIVES
They can make the necessary
evaluation of various
alternatives and make an
intelligent comparison of the
different brands existing in the
market
PURCHASE DECISION
The decision to buy a particular
brand of product may come solely
from his/her own decision or may
be attributed to the influence
of outside factors
POST-PURCHASING ANALYSIS
The buyer makes a simple
analysis at the back of his/her
mind whether his/her expectation
has been met or not
Marketing Mix
- Addresses the question how can
the target consumer could be
influenced to buy the product or
service. And what marketing
strategy must be adapted to
convince the consumer the
product or service satisfies
their needs.
PRODUCT The tangible good or
intangible service offered by
the business to the target
consumers
Product - What solution does the
customer need/ want - Features,
Design, User Experience, Naming,
Branding, Differentiation,
PRODUCT MIX
WIDTH. The number of product
lines offered by a company
LENGTH. The total number of
products in a firm’s product
mix
DEPTH. The number of variations
within a product line
CONSISTENCY. How closely the
product lines are to each other
PLACE
The place where the target
consumers are expected and
willing to buy the product
Place - How does the customer
act or buy? - Location of
Purchase, Ease of transaction,
Access to distribution channels,
sales force, competitor
approaches
PRICE The value we pay in
exchange for the product and
services offered by a company
Price - What is the cost to the
customer? - Value to buyer,
price sensitivity, existing
price points, discounts,
competitor pricing.
VARIABLES THAT HIGHLY INFLUENCE
THE SETTING OF PRICES
PROMOTION
The mode of conveying
information about the product to
the target consumers.
Promotion - What is the dialogue
between the customer and company
- Message, method of delivering
message, timing of delivery,
communications by customers and
influencers,Competitor promotion
Promotional Media - Advertising,
personal selling, direct
marketing, publicity, sales
promotion,
Convenience - Is it easy to
carry? Will the package be too
heavy?
POSITIONING
The place occupied by the
product in the minds of the
consumers

PEOPLE - Individual employees or

workers who are directly
involved in the production,
marketing, and sale of the
product or service

Pride Process

P - Provide a pleasant working

environment.
R - Recognize, Reward, and
Reinforce the Good behavior,
I - Involve and participate in
the activities and programs
D - Develop skills and attitude

E - evaluate and measure WEEK 5

performance. (No video notes
PACKAGING yet)
The process of putting the
product in a package or Needs, Wants and Branding
container
Needs vs. Wants
Criteria for Choosing Packaging
Material Needs - something you require to
have.
Protection - Can the package
give ample protection to the Wants - Things you desire.
product?

Cost - Will it be cost-

efficient?

Size - What is the industry

Practice? Any weight limit

Display Value - Can I attract

consumers?
Branding
 a new product or more products
Brand Name influence the buying without eliminating the original
decision of the consumers product

Approaches in Creating a Brand Product Extension Strategy

Name - a new product carries the
● Review carefully the brand name in a new category
attributes, benefits, and values
of the product 4Ms of Production
● Evaluate the consumers in the
target market Production System
● Analyze the proposed
marketing strategies Input
● List the possible brand names -Manpower
by considerinv ghe first three -Materials
steps -Machine
● Limit the brand name to one -Design
or two words -Instructions
● Check the Internet if the
chosen brand name already exists Product and Process
-Procurement
Branding Strategy -Inspection
-formulation of a brand name for -Storage
the first single product that -Issuance
the business intends to make -Rework
-Transfer
Umbrella Brand Approach
- All the products of the
business carry the same name Output
-Final Product

The 4Ms of Production

Manpower Method Machine

Materials

Manpower - the human workforce

involved in the manufacture of
products.

House Brand Approach
- Every product of the same
business has a separate name
that distinguishes it from the
rest of the company’s product.
Line Extension Strategy
- the existing product has been
modified or altered resulting in
Manpower Criteria:
● Educational qualifications
and experience required for the
job
● Status of employment, whether
permanent or temporary
● Number of workers required
for the job
● Skills and expertise for the
job
● Appropriate time the worker ● Waste that the materials may
is needed produce
● Conduct of background
checking and issuance of
requirements
● Amount of salary or wages and
other mandatory benefits
● Availability of potential
workers in the community

Method - The process or

technique of converting raw
materials to finished product.

Manpower Criteria:
● Product to produce
● Mode of production
● Manufacturing equipment to
use
● Required skills to do the
work

Machine - The manufacturing

equipment used in the production
of goods or delivery of
services.

Manpower Criteria:
● Types of product to be
produced
● Production system to be
adopted
● Cost of the equipment
● Capacity of the equipment
● Availability of spare parts
in the local market
● Efficiency of the equipment
● The skills required in
running the equipment

Materials - the raw materials

needed in the production of a
product.

Manpower Criteria:
● Cost
● Quality
● Availability
● Credibility of suppliers