Subject: Entrepreneurship

Semester/Quarter: 2nd/ Q4
Week: 1.2

Topic: Understanding the Importance of Business Operation

Learning Task 1: Critical Review. Problems Encountered

Directions: In this activity, listed below are (5) problems /incidents encountered by an
entrepreneur during his/her business operations. Determine what actions should be taken in
every problem/incident encountered.

Incidents Encountered Actions Taken

1 Employee turnover rate Hire the “correct” people,

establish a competitive pay
structure, Provide feedback,
Provide a career path, and
Offer flexibility.

2 Increase in competition Find and then solve your

customers' pain points, find a
niche in the market via
storytelling and
specialization, set competitive
pricing, change your business
if possible, and provide great
customer service.

3 Falling sales Advertise More, Examine

Pricing Strategy or Create
your own Holiday, and Sell or
Pay Attention to your
Customer’s Needs.

4 Uncertainty Differentiate Between

External and Internal Factors,
Use SWOT to Identify your
Strengths and Weaknesses,
and Focus on the People in
Your Organization.

5 Globalization Start with strategies and not

tactics, understand the
culture, and identify the
competitive edge.
Learning Task 2: Concept Mapping on problems encountered during its business operation
and its solutions.

Directions: Complete the chart by filling in each box with the required answers.

ANSWER:

1. OUT-OF-CONTROL OVERHEAD COSTS

Solution: The first step in controlling overhead costs is to ensure that you keep
detailed records of all expenses. It's a lot easier to identify ways to reduce
overhead once you know exactly what you have.

2. TOO MUCH WASTE

Solution: Implementing lean procedures is the best method to fight waste. Look
for activities that require a lot of time or money but provide little value. For the
sake of your company's health, cease those activities. Inventory, downtime, and
transportation are all good places to start.

3. NO PERFORMANCE MONITORING

Solution: Create performance indicators to guarantee that your people and

processes are set up for success. Expectations should also be communicated and
reinforced to your staff. You can identify where improvements are needed by
evaluating performance at regular intervals.

4. UNSTABLE CASH FLOW

Solution: Failure to maintain a healthy cash flow might make your business
difficult (if not impossible) to survive. You might not be able to pay your utilities,
cover employee salaries, or afford materials if you don't have enough money. In
short, unstable cash flow can make it difficult for your business to function
properly, especially in today's environment.
5. LACK OF PLANNING

Solution: Make planning a high priority for your company to guarantee that it can
survive in hard times. Create short- and long-term objectives for your business.
Plan for multiple outcomes and be as flexible as possible. Make forecasting a
major component of all of your decisions.

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