GRADE

12

Entrepreneurship
Work Sheet (Q2, Wk3)

Selecting Potential Suppliers

& Recruitment of Qualified
People for the Enterprise

Most Essential Learning Competency:

1. Select/pinpoint potential suppliers of raw materials

and other inputs necessary for the production of the
product or service;
2. Recruit qualified people for one’s business
enterprise
 Activities

Activity 1.1
Title of Activity: Choosing Potential Partner Suppliers and Recruitment
of Qualified People: An Interview with an Entrepreneur

Objective:
1. Interview with an entrepreneur on how they choose potential suppliers as
partners in business including the right people/workers for the job.
2. Reflect the entrepreneurs’ basis of selection and decisions for choosing their
suppliers and workers/staff.

Procedure:
A. Conduct an interview with two (2) different entrepreneurs within your barangay
regarding their choices of potential suppliers for their products/services and how
they choose their staff or workers in their business.

B. Prepare necessary questions prior to your interview. Get the entrepreneurs’ full
name and business name, address/location and nature of business.
Documentation should include pictures of the actual interview of the group.

Critical Thinking Questions:

1. Do you think that the entrepreneurs’ bases of choices in terms of suppliers and
recruiting people were appropriate/correct for his/her business and location? Why?

________________________________________________________

2. How do you reflect with the entrepreneurs’ choices and decisions when you come
up with your own business venture?

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 Remember

• A supplier is a person or business that provides a product or service to another

entity.
o “External entity that supplies relatively common, off the shelf, or standard goods
or services” (Business Dictionary).

• Supplier Selection is the stage in the buying process when the intending buyer
chooses the preferred supplier/s from those qualified as suitable. (Westburn
Dictionary)

• Four (4) Types of Suppliers:

o Manufacturer – a company that produces items for use or resale. They usually
sell for very high minimum order quantities to wholesalers and liquidators
(retailers). Example: car, food, bottles, shoes & apparel manufacturers
o Wholesaler – is an individual or business that buys in bulk from a manufacturer
and then redistributes goods to retailers. Examples: Divisoria & Baclaran
o Dropshipper – are wholesalers who will package and ship merchandise
directly to the buyer on behalf of the retailer. Examples: Shoppee, Alibaba,
Amazon, EBay
o Liquidator – in the wholesale industry, they are usually referred to retailers
who wish to sell off their merchandises cheaply at the end of the year or season.
Example: department stores, convenience stores, rice sellers, etc.

• Steps in Selection of Suppliers:

o When all the quotations have been received, the next important thing is the
selection of supplier/s.
o Different suppliers are selected for different items.
o The price of an item is the key factor in the selection of supplier.
o Qualities of goods, reputation of supplier and after sale service are also
important factor to consider.
o Requests can always be made to suppliers to send samples of items for careful
quality inspection.
o All the quotations should be filed.

• Factors to Consider when Selecting Suppliers:

o Product and process technologies
o Willingness to share technologies and information
o Quality
o Cost
o Reliability
o Order system and cycle time
o Capacity
o Communication capability

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 o Location
o Service
Note: Different companies have different criteria based on their products, price offered,
quality, on-time delivery, after-sales services, response to order change, supplier
location and supplier’s financial capability
• Suppliers must be carefully evaluated:
o Progressive firms must be able to produce quality product at reasonable prices.
Product quality is a direct result of the production workforce and the suppliers.
o Buying firms select suppliers based on their capabilities and not purely on the
competitive process since the current trend in sourcing is to reduce the supplier
base.
o In order to select suppliers who continually outperform the competition,
suppliers must be carefully analyzed and evaluated.

• When do supplier evaluation and selection decision made?

o During new product development
o Due to poor internal or external supplier performance
o At the end of the contract
o When buying new equipment
o When expanding into new markets or product lines
o When performing market tests
o When current suppliers have insufficient capacity
o When reducing the size of the supply base
o During outsourcing analyses
o When consolidating volumes across a business

• Bases of Selection of Qualified People/Personnel for the Business :

o Education
o Experience
o Physical health
o Age
o Gender
o Personality
o Attitude

• Recruitment Criteria:

Recruitment Criteria Criteria Definition Validation & Verification

Past Performance Track record and resume of recruit Verify resume submitted;
check with previous
employers, schools;
background investigation;
in-depth interview
Proficiency Profile Brain preferences, intelligences, Proficiency & skills testing;
skills, talents IQ, IQ2, MBTI, HBDI tests;

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 demonstration of skills,
competencies and talents,
in-depth interview
Personality Profile Personal conduct, behavior, On-the-job observation
relationship styles, personal during training &
disposition probationary period; in-
depth interviews, ground
dynamic exercises, check
with previous engagements,
background check in
community, neighborhood &
offices
Psychological Profile Normalcy psychological tests, Psychological tests, EQ tests,
negative for neurotic, psychotic & interviews & behavioral
sociopathic disturbances observations; background
investigation
Personal Character Emotional Literacy & Maturity Character “boot camp”
Values, attitudes, principles training & testing; personal
stories on how values &
principles are being lived;
verification from friends,
relatives, colleagues, bosses
& subordinates
Potential for Growth Personal ambition, need to In-depth interviews, essay
achieve, excel, lead, review questions on life plans,
previous five criteria stories in areas of excellence
claimed

Note:
IQ2 – test involving creative, intuitive and holistic thinking
MBTI - The Myers-Brigg Type Indicator is often used by employers to decide if a
candidate would be a good cultural fit for a company and if he or she could
subsequently transition into working with the team nicely. The MBTI is comprised of
93 questions.
HBDI - or the Herrmann Brain Dominance Instrument is a psychometric
assessment, or test, that shows how you prefer to think. By better understanding how
we, and others, prefer to think we can make better decisions. This will help improve
working relationships and empathy for others.
The HBDI measures a person's preference both for right- brained or left-brained
thinking and for conceptual or experiential thinking. These preferences attract people
of particular brain dominance profiles.

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 Checking your Understanding
Critical Thinking Questions
1. Why do you think that proper selection of suppliers is very important?
______________________________________________________________
________________________________________

2. Which one will you prefer in choosing the right people in your business –
education or experience? Why?
______________________________________________________________

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 Evaluation

Directions: Write the letter of the correct answer in a separate paper.

1. This company produces items for use or resale. They usually sell for very high
minimum order quantities to buyers.
A. Dropshipper B. Liquidator C. Manufacturer D. Wholesaler

2. This kind of test measures a person's preference both for right- brained or left-
brained thinking and for conceptual or experiential thinking.
A. EQ B. IQ C. MBTI D. HBDI

3. The following are factors to consider in selecting the best supplier except:
A. Quality B. Price C. Reliability D. Quotation

4. Appropriate time for supplier evaluation and selection decision to be made:

A. Due to poor performance C. When performing market research
B. Peso-Dollar Rate increase D. At the beginning of the contract

5. This kind of test involve creative, intuitive and holistic thinking.

A. MBTI B. IQ2 C. EQ D. IQ

6. Personal ambition, need to achieve, excel, and lead are recruitment criteria for:
A. Potential for growth C. Past performance
B. Personality profile D. Proficiency profile

7. Liquidator is also known as __ in the wholesale industry.

A. Dealer C. Retailer
B. Middleman D. Dropshipper

8. Emotional Literacy & Maturity Values, attitudes, and principles are recruitment
criteria for:
A. Personality profile C. Proficiency profile
B. Personal character D. Psychological profile

9. It is the stage in the buying process when the intending buyer chooses the
preferred supplier/s from those qualified as suitable.
A. Purchasing C. Selection process
B. Buying Process D. Supplier selection

10. Any person or business that provides a product or service to another entity.
A. Supplier B. Dealer C. Manufacturer D. Wholesaler

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 Answer Card
10. A
9. D
8. B
7. C
6. A
5. B
4. A
3. D
2. D
1. C

Evaluation

References
Books:
Dr. Eduardo A. Morato, Jr. (2016 Ed.), Entrepreneurship, Rex Books Store
Feliciano R. Fajardo (2008), Management, Rex Bookstore Publishing House
Internet:
https://www.google.com/search?q=choosing+potential+suppliers+for+business+-
+entrepreneurship&source=lnms&tbm=isch&sa=X&ved=2ahUKEwi1iIXo-
u_tAhWYHXAKHRWKDmAQ_AUoAXoECBgQAw&biw=1366&bih=657#imgrc=cPztJavG3j7pIM&imgdii
=2MUZpy6FQdavMM

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 Written by:
EVELYN S. PLAZA, San Juan City Senior High School Academic

For questions or comments, write or call:

Department of Education
Schools Division Office – San Juan City
Pinaglabanan St., San Juan City, Philippines 1500
Telefax: (632) 8451-2699; (632) 8251-2383
Email Address: depedsanjuanrecords@gmail.com