RIZAL SPECIAL EDUCATION LEARNING CENTER, INC.

Member, Association of LASSSAI-Accredited Superschools

Owned and Management by The Rizal Memorial Colleges, Inc.
Pardo de Tavera St., Davao City
Tel. No: 244-1301/222-4028

WEEK 5_Q2 APP2 - ENTREPRENUERSHIP

INPUT 18 Supplier, Value, and Supply Chain

Specific Learning Objectives:

In this lesson, the students will be able to do the following:

● Select/pinpoint suppliers of raw materials and other inputs necessary for the production of products or services.

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

Raw Materials

A raw material, also known as feedstock in case of machines, refers to the unprocessed material used in the primary
production or manufacturing of goods. The raw materials are part of determining the quality and cost of producing a
product.

Supplier Selection Process

1. Thinking strategically in selecting suppliers. In selecting the supplier for the business, the entrepreneur must
understand that effective suppliers are those who offer products and services that match the needs of the organization.
The entrepreneur must study how many suppliers he needs but should consider having choices because buying from one
supplier can be risky.

2. Setting criteria for choosing a supplier. The entrepreneur must set criteria for choosing the right supplier. Reliability,
quality, value for money, and financial security are criteria an entrepreneur should take into.

3. Identifying potential suppliers. Find suppliers through a variety of channels. It is best to have a shortlist of possible
suppliers through a combination of sources.

4. Drawing up a shortlist of suppliers. Once done in identifying potential suppliers, do some research and try to choose
and list down four to five candidates.

5. Choosing a supplier. Approach the chosen suppliers and ask for a written quotation. Compare each quotation to other
chosen suppliers. Whenever possible, it is a good idea to meet the supplier personally and see how their business operates.
Once settled, the entrepreneur may move on to negotiating terms and conditions and drawing up a contract.

Supply Chain

A supply chain is a connected network of individuals, organizations, and activities that produces and distributes a specific
product to the final consumer. Supply chain management refers to the management of the flow of goods and services,
including all processes in transforming raw materials into finished products.

Successful supply chain management involves the administration of individual functions to a set of integrated processes.

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Example: Supply chain

Situationer

An international retail business that operates a chain of hypermarkets, department stores, and grocery stores succeeds
by having fewer entities in the supply chain. It buys more generic goods directly from manufacturers, rather than suppliers
with brand names and high mark up. The company is also choosy in partnering with only those suppliers who can meet
the quantity and frequency it demands.

Logistics Components of Supply Chain

Logistics refers to the process of planning and implementing efficient transportation and storage of goods from the
point of origin to the point of consumption.

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Value Chain

The value chain is a step-by-step activity needed to create a product or a service. A business conducts value chain analysis
by evaluating the detailed procedures involved in each step.

Michael Porter’s Value Chain

Michel Porter creates a general-purpose value chain that a business may use to examine all the activities involved in
creating value for its customers. The value chain activities are performed to determine the cost and effect of the activities
on profits of the business. This tool may help understand the sources of the value of the organization.

Elements in Porter’s Value Chain

Porter’s value chain focuses on how inputs are changed into outputs that are purchased by the customers. Using these
viewpoints, Porter identifies a chain of activities common to all businesses and divides them into primary and support
activities.

Primary Activities

Primary activities involve the creation, sale, and maintenance of products or services directly.

1. Inbound logistics. These are the activities related to receiving, storing, and distributing inputs internally.

2. Operations. This is the transformation activity that changed inputs into outputs that are sold to the customers.

3. Outbound logistics. This activity delivers the product or service to the customers.

4. Marketing and sales. These are the activities used to persuade customers to purchase the product.

5. Service. It includes all the activities required to maintain the value of the product or service to customers once it has
been purchased.

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Support Activities

These activities support the primary functions.

1. Procurement. This is what the business does to get the resources needed to operate. It involves finding sellers and
negotiating low prices.

2. Human resource management. It involves the recruitment, hiring, training, motivating, and retaining its workers.
People are the source of value so that businesses can create an advantage with good human resources practices.

3. Technological development. These activities involve managing and processing information. The sources of value
creation are minimizing information technology costs, staying updated with technological advances, and maintaining
technical excellence.

4. Infrastructure. This is the support system of the business, and it functions to maintain daily operations. Accounting,
legal, administrative, and general management are examples of infrastructure.

INPUT 19 People Recruitment for Business

Specific Learning Objectives:

In this lesson, the students will be able to do the following:

-identify job positions needed for the proposed business.

-create job postings to recruit people for the business.

Recruitment

Recruitment is the process of finding and enticing potential applicants to fill the vacant positions in an organization. The
human resources team is in charge of hiring potential candidates to be new employees of the business.

Recruitment Process

The recruitment process is the system of identifying the job vacancy, analyzing the job requirements, reviewing the
applications, screening, shortlisting, and selecting the right candidate for the business.

1. Recruitment planning. Planning is the first step in the recruitment process, where all vacant positions are analyzed and
described. A recruitment plan is mandatory to attract potential candidates from a pool of candidates. These potential
candidates should be qualified, experienced with the capability to take the responsibilities required to achieve the
objectives of the organization. There are two parts of recruitment planning:

A. Job analysis. Job analysis is a tool to collect job-related data. It identifies the duties, responsibilities, skills,
abilities, and work environment of a specific job. The essential parts of job analysis are the job description and job
specification:

A.1 Job description. The job description includes information that is useful to advertise a specific job and attract
a pool of applicants. This includes information such as job title, job location, job summary, nature and objectives
of the job, task and duties to be performed, working conditions, machines, tools, and equipment to be used by
the employee and the hazard involved in it.

A.2 Job specification. The job specification is a statement indicating the educational qualifications, qualities, work
experience, and physical, technical, and communication skills required to perform a job.

B. Job evaluation. Job evaluation is the process of assessing, analyzing, and identifying the relative value or worth
of a job to other jobs in the organization.

2. Recruitment strategy. Recruitment strategy is a plan of action involving the organization’s attempt to identify, recruit,
and hire high-quality candidates to fill its open positions.

3. Searching. Searching is the process of recruitment where the candidates are sourced depending on the requirement of
the job. The searching process involves attracting job seekers to the vacancies.
The sources of recruitment can be internal or external.

4. Screening. The screening starts after the completion of sourcing the

candidates. The screening process filters the applications of the candidates for
further selection. It helps in removing the unqualified or irrelevant candidates
that were received during sourcing. Screening has two substages:

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 A. Reviewing résumés and cover letters. Reviewing is the first step in screening the candidates. In this process,
the résumés and cover letters are reviewed and checked for the candidate’s education, work experience, and
background matching the requirement of the job.

B. Identifying the top candidates. In this process, the best candidates are shortlisted, which makes it easy for the
hiring manager to make a decision.

5. Evaluation and control. In this process, the effectiveness and methods of the process are being assessed.

Example: Job description

Situationer:

A leading company in the Philippines is investing in businesses in retail, banking, and real estate. The company needs an
accounting clerk. Below is the job description:

Selection Process

The selection process pertains to the process of picking the right applicant for the right job. The organization should create
a selection process to support the job description and to identify the applicant’s knowledge, abilities, skills, and other
characteristics required to do the job.

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Other Considerations When Hiring People

Compensation

Compensation is an approach to provide monetary value to employees in exchange for the work performed. The pay
scales will be based on the minimum wage in the region or place of the business. The law also mandates the provision of
benefits to workers, such as allowances, bonuses, Social Security System (SSS), Pag-ibig Fund, and Philhealth contributions.

Organizational Policies

This section explains the policies that should be implemented in the workplace. Policies are statements of how an
organization directs itself and accompanying it are the procedures that define how to do a task or perform it step by step.

Company Manual

A company policy manual is a book given to employees by employers, which includes the organization’s policies, rules,
and regulations. It will serve as a guide for employees in the performance of their job and what is being expected from
them as an employee.

Organizational Structure and Elements

An organizational structure provides the manner in which the activities of the organization are organized, controlled, and
coordinated in order to achieve the organization’s goal. These activities include rules, roles, and responsibilities of the
organization’s employees. In managing the human resources of the organization, it is vital to look into the organizational
structure because it aligns resources with priorities defined in the business strategy. It is also important for any growing
business to provide guidance and clarity on specific human resource issues, such as managerial authority.

Centralized vs. Decentralized Organizational Structure

An organization's structure can either be centralized or decentralized. Centralization occurs when major decisions are
made by the top management. The decisions and actions of lower management and employees must have approval from
the top management. Decentralization occurs when lower management is allowed to make important decisions. It is
applicable to businesses that are widely dispersed in several areas.

Organizational Elements

The organization should compose the following elements:

1. Common purpose. A common purpose unifies employees and gives everyone an understanding of the organization's
direction. Every manager should communicate this by educating all employees on the general strategy, mission statement,
values, and objectives of the organization.

2. Coordinated effort. The coordinated effort involves working together in a way that maximizes the resources. The
common purpose of the organization is achieved through the coordinated effort of all its individuals.

3. Division of labor. The division of labor involves delegating specific parts of a broader task to different people within the
organization based on their abilities and skills.

4. Hierarchy of authority. The hierarchy of authority is a control mechanism for making sure that people in the
organization will do the right things. Decision-making under certain circumstances enables the organization to be agile,
while the ambiguity of authority may sometimes lead to slow decision-making processes.

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 INPUT 20 Business Concept and Models

Specific Learning Objective/s:

In this lesson, the students will be able to develop a business model.

Business Concept A business plan is an important tool in defining the business strategy, identifying deliverables for the
stakeholders, and developing financial forecasts of the organization. Aside from this, the entrepreneur should also
consider creating a business concept statement for the organization.

A business concept is a foundational idea that describes the reason for the existence of a business entity. It intends to
provide meaningful direction for processing a business plan and launching a firm. It also clearly identifies key items and
basic information required to build a profitable business.

Essential Elements of Business Concept

These are the necessary information needed to create an effective and powerful business concept:

1. Features. An entrepreneur must describe the specification of the product or service. It is important to choose strategic
words that will catch the attention of potential customers.

2. Benefits. In describing the benefits of the product or service, it should clearly discuss the solution the business can
provide. Think of benefits as a way to ease the pain and problems of the customers.

Business Model

A business model is a conceptual structure that explains how the business operates and intends to achieve its goals. All
business processes and policies that the firm adopts and follows are part of the business model.

Types of Business Model

The following are the different types of business models that are applicable for different businesses.

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Elements of a Strong Business Model

Creating the business model is not only about completing the business plan or identifying which product and services to
pursue. It is also about mapping out how the business will create value for customers. The following are the characteristics
of a strong business model a firm should have:

1. Specific market

When creating a business model, narrow down the market into two or three detailed target market groups. The business
model should clearly identify which among the groups it will focus on. Outline each target market’s demographics,
common challenges, and solutions the business will offer.

2. Business processes

Before the business operates, the entrepreneur should have an understanding of the activities required to make the
business model work. Determine the key business activities by identifying the core aspect of the business offerings.

3. Key business resources

Record essential business resources to ensure that the business model is adequately prepared to sustain the needs of the
organization. The common resources are capital, warehouses, websites, and customer list.

4. Strong value proposition

A strong value proposition establishes what the business offers and determines why the business is better than its
competitors.

5. Key business partners

When creating a business model, the entrepreneur should also identify key partners who will contribute to the ability of
the business to serve customers. Key partners such as suppliers, advertising partners, and strategic alliances are the
individuals who may help the organization grow towards success.

6. Demand generation strategy

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The entrepreneur needs a strategy that builds the interest of consumers and that is designed to close sales. Consider how
the customers find the business and become aware of the brand. Developing a demand generation strategy will create
awareness and interest in the offerings of the business.

7. Innovation

It is important to plan for innovation. Do not think that the initial plan is enough. Review the business model to ensure
that it will meet the ongoing needs of the consumers.

INPUT 21 Business Vision, Mission, Goals, and

Performance Objectives

Specific Learning Objectives:

In this lesson, the students will be able to do the following:
● Create a business vision and mission statement.
● Identify and set goals and objectives for the proposed business.

The Business Vision Statement

A vision statement is a declaration of what the business wants to achieve and where it wants to be in the future. It also
determines the direction of the business and identifies which market, technology, products, or customers to focus on.

Characteristics of Vision Statement

The following are different characteristics of an effectively worded vision statement.

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The Business Mission Statement

A business mission statement is a declaration that articulates the purpose of the business. A good mission statement
identifies the products and services of the company and the customer needs that the business seeks to satisfy. It also
states the target market that the business wants to serve, and the approach to be taken to satisfy its customers.

Elements of Business Mission Statement

The mission statement of the business describes the basic function of the organization in the society in terms of products
and services it offers to the customers. A clear mission statement should have the following elements:

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The Business Goals

Business goals describe what the business expects to accomplish for a certain period of time. Setting goals within an
organization is a common practice of different organizations. It intends to increase motivation and determination for
managing the firm.

Types of Business Goals

Short-term goals refer to the plans for the business in the near future. It can be for today, next week, next month, or
within the year. Short-term goals are the plans that the business wants to accomplish soon. On the other hand, long-
term goals refer to the plans that the business wants to do further in the future. These goals require time and planning
and are usually set to a minimum of 12 months.

SMART Goal Model

Goal writing does not have to be complicated. It only requires commitment and discipline to follow and complete the
required step to achieve results. To do this, organizations use the SMART goal model to articulate their goal.

1. Specific. The goal should be specific enough for clarity.

2. Measurable. There should be a way to measure the goal of the business. The entrepreneur must know how to achieve
the goal.

3. Attainable. The goal should be possible to accomplish.

4. Realistic. The goal must be realistically achievable given the available resources and time.

5. Time-bound. There should be a timeline associated with the goal, including the start and end dates.

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Performance Objectives

Performance objectives refer to the targets of the business that may be set on a quarterly, semi-annual, or yearly basis.
For a business to be efficient and productive, the performance objectives should be properly laid down to serve as a guide
for its operation and management.

Key Performance Objectives The key performance objectives are the following:

1. Quality. This is an important performance objective because it presents the visual sign of what the business does. It is
the fundamental aspect of performance, and it has a huge influence on the satisfaction of the customers.

2. Speed. Speed relates to the turnover time of customers for ordering a product or service up to the time they receive it.
If the organization can provide a product or service faster than any other business, it can be an edge and a winning start.

3. Dependability. Dependability means that customers can rely on what the business has promised and that the business
can deliver on what is expected of its products. It may have an influence on whether the customer will return for future
purchases or not.

4. Flexibility. Flexibility in performance objective means changing operations to match a customer requirement. Being
flexible gives the business the potential to hold a competitive edge due to a wider variety of products and services.

5. Cost. The cost is an important factor that directly competes on rates. The lower the production cost of a business, the
lower the prices of products. Businesses who compete on products’ prices want to keep costs as low as possible while still
maintaining the level of quality, speed, dependability, and flexibility that their customers demand.

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 RIZAL SPECIAL EDUCATION LEARNING CENTER, INC.
Member, Association of LASSSAI-Accredited Superschools
Owned and Management by The Rizal Memorial Colleges, Inc.
Pardo de Tavera St., Davao City
Tel. No: 244-1301/222-4028
APP2- ENTREPRENUERSHIP- WEEK 5

NAME OF STUDENT: _______________________________________ DATE: _______________

GRADE/SECTION: __________________________________________ SCORE: ______________

Exercise 18.1

Direction: Explain your understanding of the following concepts.

1. Raw materials

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

2. Supply chain

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

3. Logistics

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

4. Value chain

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

5. Customer relationship management

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

Attributed to https://drive.google.com/file/d/1jhroSdLzl1E0otmginPcoZHtPDacTXtr/view

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 RIZAL SPECIAL EDUCATION LEARNING CENTER, INC.
Member, Association of LASSSAI-Accredited Superschools
Owned and Management by The Rizal Memorial Colleges, Inc.
Pardo de Tavera St., Davao City
Tel. No: 244-1301/222-4028
APP2- ENTREPRENUERSHIP- WEEK 5

NAME OF STUDENT: _______________________________________ DATE: _______________

GRADE/SECTION: __________________________________________ SCORE: ______________

Exercise 19.1

Direction: Research and discuss how your school conducts the recruitment process for its applicants.

Attributed to https://drive.google.com/file/d/1vta2qp_EK_IRzEmyEJmmG3tQmyX4PPRO/view

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 RIZAL SPECIAL EDUCATION LEARNING CENTER, INC.
Member, Association of LASSSAI-Accredited Superschools
Owned and Management by The Rizal Memorial Colleges, Inc.
Pardo de Tavera St., Davao City
Tel. No: 244-1301/222-4028
APP2- ENTREPRENUERSHIP- WEEK 5

NAME OF STUDENT: _______________________________________ DATE: _______________

GRADE/SECTION: __________________________________________ SCORE: ______________

Exercise 20.1

Direction: A certain university campus is located in an isolated area with the nearest restaurant five kilometers away. The
students in the university have no nearby place to eat except for the university cafeteria. There is an opportunity to
operate a restaurant in the area. Create a business concept statement. Use the format below to present your answer.

Attributed to https://drive.google.com/file/d/17OEy7ErHjoR6iA72WdDjOHqVWnoG7vDC/view

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 RIZAL SPECIAL EDUCATION LEARNING CENTER, INC.
Member, Association of LASSSAI-Accredited Superschools
Owned and Management by The Rizal Memorial Colleges, Inc.
Pardo de Tavera St., Davao City
Tel. No: 244-1301/222-4028
APP2- ENTREPRENUERSHIP- WEEK 5

NAME OF STUDENT: _______________________________________ DATE: _______________

GRADE/SECTION: __________________________________________ SCORE: ______________

Exercise 21.1

Direction: Read and analyze the vision statement of a company below. If you were an officer in this business, what
would be your proposed goals in order to achieve the vision?

Attributed to https://drive.google.com/file/d/1peTrlFKzae38JBqv508-srrSKN5sbMRL/view

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