Reading and Writing

 NDSC SHS
Grade XI Academic Track
NOTRE DAME OF SALAMAN COLLEGE, INC.

Founded in 1965 by the Oblates of Mary Immaculate (OMI)
Owned by the Archdiocese of Cotabato
Administered by the Diocesan Clergy of Cotabato (DCC)
“Service for the Love of God through Mary”
(B.E.S.T)
Amare Est Servire
ENHANCED STUDENT SELF-DIRECTED

LEARNING AND ASSESSMENT
(ESSDLA)
IN
Reading and Writing Skills
(Senior High School-Grade XI Academic Strands)

SECOND SEMESTER, S.Y 2021-2022
Prepared by:
JOEY L. RESPICIO, LPT
ROSALIE MALLORCA-BLANCA
SUBJECT TEACHERS
1
All rights reserved. No parts of this document may be reproduced, distributed in any form or by any means including photocopying or
any electronic or mechanical methods without the prior written permission of the writer except in the case of brief quotations embodied
in critical reviews and certain other noncommercial uses permitted by copy right law.
 NDSC SHS
LESSON COVERAGE
In this Enhanced Student Self-directed Lesson and Assessment, you will examine these competences when you take the
following lessons:
Lesson Title You’ll learn to… Estimated

No. Time
 describe a written text as
Lesson 1 The Reading Process connected discourse. 4 weeks
 apply effective reading
 Introducing the Reading strategies in comprehending
Process and Reading a text.
Strategies  explain critical reading as
looking for ways of thinking
 identify claim of fact,
policy, and value explicitly
or implicitly made in a
written text.
 distinguish between and

among techniques in
selecting and organizing
Lesson 2 The Reading Process information 4weeks
Evaluating written texts by  use a topic sentence outline
analyzing claims [Unit in selecting and organizing
1/Q3/Week5-8] information.
connected discourse.
 apply the process of
revision on your own paper.
Lesson 3 The Writing Process 4 weeks

 Using Pre-Writing
connect discourse.
Strategies
The Writing Process  distinguish between and among 4 weeks

techniques in selecting and
Creating Reading and
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Lesson 4 Writing Outlines organizing information

 describe a written text as connect
discourse.
Pre -Assessment (Self-assessment and NOT to be submitted)

Test I. True or False: Write TRUE if the statement given is correct and FALSE if the statement given is
incorrect.
_________1. Reading is a language skill that can be improved through consistent practice. T
_________2. Previewing the text also allows the readers to make predictions about the text’s
content. T
_________3. It is true that reading is an effortless task. F not
_________4. You can widen your vocabulary and develop skills in writing when you read. T
_________5. Reading is a complex cognitive process; it involves the transmission of messages
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 NDSC SHS
through the optic nerves. T

Test II. Identification: Identify the following statement with a correct answer.
_________6. A skill wherein a reader looks over a material and focuses on the information
he/she finds relevant. It is conducted during the prereading stage. Previewing
_________7. It is a type of quick reading which aims to get the main idea or general idea of a
given text. Skimming
_________8. A reading strategy which aims to get specific information from a given text.
Scanning
_________9. These are words, phrases, and sentences which gives additional information about
the unfamiliar word in the sentence. context clues
_________10. This type of context clues has words or phrases that are similar in meaning to the
unknown word. Synonyms
Test III. Multiple Choice: Read each sentence below and identify the type of context clues
used. Choose the letter that BEST corresponds with a correct answer. Write in CAPITAL
LETTER the answer of your choice.
11. The narrator in the poem was euphoric at his son’s victory for he cried out triumphantly when the boy
came home.
A. synonyms B. antonyms C. examples D. explanation and definitions
12. There are many eccentric creatures in the forest such as mome raths and borogoves.
13. The hero in the poem did not give in to trepidation; rather, he bravely slayed the jabberwock with his
sword.
14. Alice thought that “toves” were curious creature since they were part-badger, part-lizard, and part
corkscrew.
A. synonyms B. situations C. examples D. explanation and definitions
15. The hero’s conquest of the jabberwock is an exemplary case of bravery.
A. synonyms B. situations C. examples D. explanation and definitions
4
 NDSC SHS

(ESSDLA)
IN
READING AND WRITING SKILLS
Second Semester S.Y. 2021-2022
TOPIC/LESSON: Reading Process Quarter 1 (Week 1-2)

 Introducing the Reading Process and
Reading Strategies
The learner realizes that information in a written text
CONTENT STANDARD may be selected and organized to achieve a particular
porpuse.
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 NDSC SHS
The learner critiques a chosen sample of each pattern

PERFORMANCE STANDARD: of development focusing on information,selection,
organization, and development
At the end of the course, the students should be able
MOST ESSENTIAL COMPETENCIES to:
 describe a written text as connected discourse.
 apply effective reading strategies in
comprehending a text.
TIME ALLOTMENT 2 Weeks
GENERAL INSTRUCTIONS FOR THE FOLLOWING ACTIVITIES:

 submit all the activities required for you to answer, these activities will be recorded; and
 all answer/s should be written on a long bond paper.
UNIT 1: THE READING PROCESS

TOPIC: Introducing the Reading Process and Reading Strategies
The Reading Process

Studying a language like English is an adventure. You will discover many things as you develop
communicative skills in reading and writing. Though at times it may seem like some topics and techniques may
be easy to grasp, there will be moments that you will be mystified by some ideas before you learn them.
ENDURING UNDERSTANDINGS:
 Reading is an activity that challenges our beliefs, inspires our imagination and expands our understanding
of the world.
 Reading involves a complex interaction between the text and the reader. The reader’s interpretation is
shaped by his or her prior knowledge, experiences and attitudes.
 Reading is an indispensable skill that requires continuous practice, development, and refinement.
INTRODUCTION:
The fact that you are able to decipher the written symbols on this page, get meaning from, and put meaning into
them, is no small wonder.
But reading is not just a matter of knowing what is written in the book. To read intelligently means you are able
to read actively and critically.
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 NDSC SHS
*You do not understand what the text says and means but are also able to evaluate its content.
Warm-Up (NOT to be submitted)
The word inside the oval is taken from the title of Lewis Carroll’s poem. Examine this unusual word.
Upon reading this title, can you guess what the poem will be about? What associations do you have with the
word? Write them besides the lines. You will go back to this activity later.
Activity 1: (to be submitted)
A. Try to better appreciate what it means to read by studying a poem on your book, pages 3-4.
B. Answer the Vocabulary Check on page 4 of your textbook. Write your answer on a long bond paper.
JABBERWOCKY
by Lewis Carroll
(from Through the looking- Glass and What Alice Found There, 1872)
C. DISCUSSION: Answer the following questions on a short bond paper.

1. What is a Jabberwock?
2. What happened in the poem? What is the person about?
3. What were your impressions of the poem before reading? How about reading? What cause the changes of
your impressions? Use a diagram to illustrate your answer.
STUDY: Read the context found on your textbook on pages 5-12.
READING CUES:
1. Defining Reading
2. Applying Effective Reading Strategies
A. Previewing
Pre-reading Strategies B. Skimming and Scanning
C. Recalling Background Knowledge
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 NDSC SHS
During-Reading Strategies A. Using Context Clues

 Synonyms
 Antonyms
 Examples
 Explanations and Definitions
 Situation
B. Using Connotation and Denotation
Let’s Learn
It is not true that reading is an effortless task. It is instead a complex cognitive process. Aside from this, it
is also highly visual because it involves the transmission of messages through the optic nerves. Although you
may not be aware of it, you apply different skills when reading a particular text. You do more than just read. You
also locate main ideas, summarize, paraphrase, note details, and get the meaning of words.
Reading is a language skill which can be developed through constant practice. As some scholars found
out, you can widen your vocabulary and develop skills in writing when you read. But reading can be more
meaningful if it will be viewed as an interactive process between the writer and the reader. As a reader, you
interact with what you read by asking questions, analyzing the assertions, adding your own understanding, and
relating your experience to the message.
As a complex process, reading consist of the following stages.
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Before you read the excerpt. You have to draw on your own background knowledge by looking at the
title. This is the prereading stage. It aims to induce the readers’ motivation to read and to activate their schema
or background knowledge. Activities done during this stage include previewing, freewriting, surveying,
questioning, making assumptions about the author, identifying the purpose, and selecting a reading system
such as SQ3R (survey, question, read, recite, review).
In the while-reading stage, you may reread the text until you fully understand its meaning. The specific
skills in this stage include getting the meaning of words through context clues, predicting, inferencing,
monitoring comprehension, annotating the text, and reflecting.
In the last stage, you have to check your understanding of the text. This is the postreading stage. The
skills include reflecting, summarizing, paraphrasing, drawing conclusions, graphic organizers and journal
writing.

Answer the exercise (A and B) on your textbook, pages 12,13 on a long bond paper.
Quiz 1: Coverage Week 1-2 Lessons (to be submitted)

incorrect.
_________1. Reading is a cognitive process of decoding symbols to derive meaning form a text.
_________2. When you try to get the general idea by reading through the text quickly, what you
do is scanning.
_________3. Skimming the reading means looking for specific information.
_________4. Connotation is the basic, precise, literal meaning of the word that can be found in
a dictionary.
_________5. Denotation is the positive, negative, or neutral feelings, attitudes, ideas or
association with words.
Test II. Identification:
A. Identify the following statement with a correct answer.
_________6. It aims to induce the readers’ motivation to read and to activate their schema or
background knowledge.
_________7. A pre-reading skill which means that as you read, you make sense of the text by
seeing how it fits with what you already know.
_________8. It is a process of translating letters and other symbols into meaningful information
for understanding and use of everyday life.
_________9. In this stage of reading, you have to reflect, summarize and paraphrase your
understanding about the given text.
_________10. Activities done during this stage include getting the meaning of words through
context clues, predicting, inferencing, monitoring comprehension, annotating
the text, and reflecting.
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 NDSC SHS
B. Decode the meaning of italicized word in each sentence. Use any of the four types of context clues:
(2pts. each)
synonym antonym examples explanation
__________11. The three sides of the many pennants were decorated with glitters and sequins
and from afar they looked like glittering flags of South American countries.
__________12. The first few days of working abroad bring a sense of nostalgia where people
feel a longing for their family and friends back home. synonyms
__________13. The foreigner’s joke was a little platitudinous, corny, and old.
__________14. The company always chooses the competent, knowledgeable, and efficient
employees over the ineffectual ones. antonyms
__________15. A rondescript painting he bought somewhere in Africa consist of an old canvas
with dull colors and unexciting ones.
Test III. Short Paragraph: In five sentences explain in your own words. How can you effectively apply reading
strategies to improve your understanding of the text?
Rubric:
Criteria 5 (Excellent) 3(Good) 2(fair)
Content and Organization
SCORE EARNED
“A reader lives a thousand lives before he dies…..

the man who never reads lives only one.”
-George R.R. Martin
10
 NDSC SHS

(ESSDLA)
IN
READING AND WRITING SKILLS
TOPIC/LESSON: Reading Process Quarter 1 (Week 3-4)

 Evaluating Written Texts by Analyzing Claims
The learner realizes that information in a written text
CONTENT STANDARD may be selected and organized to achieve a particular
porpuse.
The learner critiques a chosen sample of each pattern
PERFORMANCE STANDARD: of development focusing on information,selection,
organization, and development
At the end of the course, the students should be able
MOST ESSENTIAL COMPETENCIES to:
 explain critical reading as looking for ways of
thinking
 identify claim of fact, policy, and value
explicitly or implicitly made in a written text.
TIME ALLOTMENT 2 Weeks

TOPIC: EVALUATING WRITTEN TEXTS BY ANALYZING CLAIMS
ENDURING UNDERSTANDINGS:
 Critical reading is an active and reactive process.
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 NDSC SHS
 Critical reading is the foundation of good writing.

 Analyzing a writer’s claims helps us become critical thinkers.
 Good claims are always backed up by reliable evidence.
Warm-Up (NOT to be submitted)

By now, you are beginning to form an understanding of critical reading. But before we go on to its
definition, try to list five personal traits that you think a critical reader should embody. Provide a short
explanation for each trait.
CHARACTERISTICS OF A CRITICAL READER
1. _______________________________________________________________________
2. _______________________________________________________________________
3. _______________________________________________________________________
4. _______________________________________________________________________
5. _______________________________________________________________________
STUDY: Read the context found on your textbook on pages 17-39.

READING CUES:
1. Critical Reading
2. Applying Critical Reading Strategies
3. Critical Reading as Reasoning
Critical Reading A. Defining Critical Reading
A. Keeping a reading Journal

Applying Critical Reading Strategies B. Annotating the text
C.Outlining the Text
D. Summarizing theText
E. Questioning the Text
A. Identifying Assertions
Critical Reading as Reasoning B. Formulating Counterclaims
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 NDSC SHS

Identifying Assertions (2 points each)
Identify the following assertions as statement of convention, fact, opinion, or preference.
___________1. Social media is defined as the Internet and mobile-based tools and devices that
facilitate the integration of technology, telecommunications, and social
interaction.
___________2. Facebook is a cooler social media platform that Twitter.
___________3. Teachers should use social media in their lessons to get more students interested.
___________4. In the first quarter of 2014, nearly 300 million smartphone units were sold all over
the world.
___________5. Parents ought to enforce stricter guidelines in social media to safeguard their
children’s privacy.
In your own words, answer the questions below to review the key concepts in this Unit.
1. How would you define reading?
2. Compare and contrast reading, previewing, and skimming.
3. What is the difference between explicit and implicit claims?
4. How does critical reading improve your writing?
5. What are the characteristics of an efficient and active reader?

incorrect.
_________1. Reading critically means thinking critically.
_________2. When keeping a reading journal, it is best to have separate notebook.
_________3. It is usually best to annote the text after you have read it more than once to ensure
that you understand it properly.
_________4. Creating a rough outline of the text will also be helpful in getting to understand the
given text.
_________5. Hypertext, is a linear way of showing information.
Test II. Identification:

A. Identify the following statement with a correct answer.
_________6. It is the writer’s point or position regarding the chosen topic also known
as central argument.
_________7. This type of claim states a quantifiable assertion or a measurable topic.
_________8.
_________9. In this stage of reading, you have to reflect, summarize and paraphrase your
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 NDSC SHS
understanding about the given text.

_________10. Activities done during this stage include getting the meaning of words through
context clues, predicting, inferencing, monitoring comprehension, annotating
the text, and reflecting.
B. Decode the meaning of italicized word in each sentence. Use any of the four types of context clues: (2pts.
each)
__________11. The three sides of the many pennants were decorated with glitters and sequins
and from afar they looked like glittering flags of South American countries.
__________12. The first few days of working abroad bring a sense of nostalgia where people
feel a longing for their family and friends back home.
__________13. The foreigner’s joke was a little platitudinous, corny, and old.
__________14. The company always chooses the competent, knowledgeable, and efficient
employees over the ineffectual ones.
__________15. A rondescript painting he bought somewhere in Africa consist of an old canvas
with dull colors and unexciting ones.
Test III. Short Paragraph: In five sentences explain in your own words. What are the benefits of becoming a
critical reader?
Rubric:
SCORE EARNED

incorrect.
_________1. Reading is a language skill that can be improved through consistent practice. T
_________2. Previewing the text also allows the readers to make predictions about the text’s
content. T
_________3. It is true that reading is an effortless task. F not
_________4. You can widen your vocabulary and develop skills in writing when you read. T
_________5. Reading is a complex cognitive process; it involves the transmission of messages
through the optic nerves. T
_________6. A skill wherein a reader looks over a material and focuses on the information
he/she finds relevant. It is conducted during the prereading stage. Previewing
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 NDSC SHS
_________7. It is a type of quick reading which aims to get the main idea or general idea of a
given text. Skimming
_________8. A reading strategy which aims to get specific information from a given text.
Scanning
_________9. These are words, phrases, and sentences which gives additional information about
the unfamiliar word in the sentence. context clues
_________10. This type of context clues has words or phrases that are similar in meaning to the
unknown word. Synonyms
Test III. Multiple Choice: Read each sentence below and identify the type of context clues
used. Choose the letter that BEST corresponds with a correct answer. Write in CAPITAL
11. The narrator in the poem was euphoric at his son’s victory for he cried out triumphantly when the boy
came home.
B. synonyms B. antonyms C. examples D. explanation and definitions
12. There are many eccentric creatures in the forest such as mome raths and borogoves.
13. The hero in the poem did not give in to trepidation; rather, he bravely slayed the jabberwock with his
sword.
14. Alice thought that “toves” were curious creature since they were part-badger, part-lizard, and part
corkscrew.
B. synonyms B. situations C. examples D. explanation and definitions
15. The hero’s conquest of the jabberwock is an exemplary case of bravery.
C. synonyms B. situations C. examples D. explanation and definitions
15
 NDSC SHS

(ESSDLA)
IN
ENTREPRENUERSHIP
16
 NDSC SHS
Grade XII Academic Track

TOPIC/LESSON: Introduction to Entrepreneurship Quarter 1

(Week 1-2)
The learner demonstrates understanding of key
CONTENT STANDARD concepts, underlying, principles, and core
competencies in Entrepreneurship.
The learner independently creates/ provides a
PERFORMANCE STANDARD: quality and marketable product and/ or service
in Entrepreneurship as prescribed in the
TESDA Training Regulation.
At the end of the course, the students should be
MOST ESSENTIAL COMPETENCIES able to:
 discuss the relevance of
Entrepreneurship
 explore job opportunities for
Entrepreneurship as a career
TIME ALLOTMENT

Test I. True or False: Write TRUE if the statement given is correct and FALSE if the statement given is incorrect.
_________1. Great entrepreneurs have the ability to change the way we live and work. T
_________2. The possibilities in entrepreneurship are limitless. T
_________3. Two concrete manifestations of entrepreneurship are small and medium enterprises (SMEs).
T
_________4. Economy requires infrastructure for education and training, healthcare, and other public
services. F
_________5. According to Joseph Schumpeter “The entrepreneur is neither a risk bearer nor a manager
or capitalist”. F
_________6. It is a foundation and catalyst for economic growth and innovation across nation.
Entrepreneurship
_________7. This country is noted to be one of the friendliest countries for entrepreneurs and a home of
thousands of successful entrepreneurs in the world. Unites States
_________8. With a knowledge-based economy, this country utilizes its human resources to make its
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 NDSC SHS
economy the best possible through entrepreneurship. Hong Kong

_________9. They are the one who create products, services, companies, and even industries.
Entrepreneurs
_________10. According to him entrepreneurship is a dynamic process of creating incremental wealth.
Ronstadt
Test III. Multiple Choice: Choose the letter that BEST corresponds with a correct answer. Write in CAPITAL
_________11. The theory and concept of entrepreneur in this period is based on the idea that an
entrepreneur is a person who sells goods.
A. Middle Ages B. Earliest Period C. 17th Century D. 18th Century
_________12. According to Jean- Baptiste Say, a French economist and businessman, the theory and
concept of entrepreneur in this period is the one who plays a central coordination role
both in producing and selling goods.
_________13. The entrepreneur in this age was the person who was in charge of great architectural works
such as public building and cathedrals.
_________14. This emerging country is home to budding entrepreneurs who manufacture different
products that range from toys, gadgets, electronics and cars.
A. India B. Canada C. China D. Taiwan
_________15. Entrepreneurship is encouraged in this country through the small and medium enterprise
incubation centers for the purpose of nurturing young firms, new products and
technologies.
A. India B. Canada C. China D. Taiwan
Test IV. Short Paragraph: In your own words, what is Entrepreneurship?

Rubric:
SCORE EARNED
Something to Ponder
"Entrepreneurial careers transcend specific job titles, career paths, and industries.
"The possibilities in entrepreneurship are endless. The rewards can be high"
Prepared by: Ma’am Blanca

Ma’am Catalan
Ma’am Opimo
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 NDSC SHS

(ESSDLA)
IN
ENTREPRENUERSHIP
TOPIC/LESSON: Developing a Business Plan Quarter 1 (Week 3-4)

The learner demonstrates understanding of key concepts,
CONTENT STANDARD underlying, principles, and core competencies in
Entrepreneurship.
The learner independently creates/ provides a quality and
PERFORMANCE marketable product and/ or service in Entrepreneurship as
STANDARD: prescribed in the TESDA Training Regulation.
At the end of the course, the students should be able to:
MOST ESSENTIAL
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 NDSC SHS
COMPETENCIES  recognize a potential market

 analyze the market need
 determine the possible product/s or service/s that will
meet the need;
 screen the proposed solution/s based on viability,
profitability, and customer requirements
 select the best product or service that will meet the
market need.
TIME ALLOTMENT 3 hours per day

Week 3-4: Topic/Lesson: Developing a Business Plan

Activity#1: (NOT to be submitted)
Get a dictionary and look for the meaning of each word.

Business Plan Entrepreneur Customer
Key Concepts:
Market Plan Financial Plan Market
THE BUSINESS PLAN

The business plan is a blue print of the business that the entrepreneur
would like to start. It aims to establish if a business idea will bring in a fair
return to one’s investment, will be beneficial to the society, and will bring no
harm to the environment when it is operated. There are many business” doable”.
The goals of a business plan are to assess the feasibility of the business of the
business idea, develop business strategies to make the business idea doable, and
to use it for obtaining resources, especially loans from financial institutions like
banks. According to the Department of Trade and Industry, through the Bureau
of Small and Medium Enterprise Development (BSMED), the following are the
reasons why an entrepreneur still needs to make a business plan, no matter how
good the business idea seems to be:
1. Reduce, if not remove, the risk of losing money invested in a
poorly researched of unstudied business idea. The entrepreneur should find out where one’s money is going
before letting go of it.
2. Avoid costly mistakes. Every sudden or careless decision the entrepreneur makes for the business entails costs
that one might not be able to recover.
3. Anticipate the financial requirements. It is always wise to foresee sudden increase or decrease in the demand
for the product or service so that the entrepreneur can plan for the lean months and ensure that the business will
have enough resources to meet business obligations during the periods when sales are low.
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 NDSC SHS
4. Organize the activities beforehand. As a road map on unfamiliar territory, it allows the entrepreneur to
estimate how the business will perform in the future and to prepare for contingencies in case things will not
turn out as planned.
5. Assess actual performance against set goals. It enables the entrepreneur to set targets in terms of sales
volume and revenues, as well as expenses, among others. Once the business is put up, the entrepreneur can
always go back to the business plan to compare actual performance against the set goals.
6. Apply for financing from lending institutions. A well- prepared business plan can be the back-up support to
convince possible sources of capital, especially banks, that something good will come out of the business idea.
A business plan is very important to various parties. Among those who need business plans are the
management team, shareholders, bankers or creditors, customers, suppliers, and employees. To gain their
confidence, these stakeholders will have to be informed about what are the purposes, directions, core business, and
financial situation of the business venture from the time it will start and in the next few years based on its forecast.
Developing a Business Plan
An important task in starting a new venture is to develop a business plan. As the phrase suggests, a business plan is a "road
map" to guide the future of the business or venture. The elements of the business plan will have an impact on daily
decisions and provide direction for expansion, diversification, and future evaluation of the business.
This publication will assist in drafting your own business plan. It includes a discussion of the makeup of the plan and the
information you need to develop a business plan. Business plans are traditionally developed and written by the owner with
input from family members and the members of the business team. Business plans are "living" documents that should be
reviewed and updated every year or if an opportunity for change presents itself. Reviews reinforce the thoughts and plans
of the owner and the business, and aid in the evaluation process. For an established venture, evaluation determines if the
business is in need of change or if it is meeting the expectations of the owners
Using the Proper Format
The presentation of the plan should be as professional as possible to portray your business in a positive manner. When
dealing with a lender or possible investor, the plan will be reviewed for accuracy and suggestions for changes to the plan
may be offered. The decision to recommend the loan to the appropriate committee or reject the proposal will be largely
based on your business plan. Often loan officers will not know a great deal about the proposed venture, but they will know
the correct structure of a business plan. Investors will make their decision based on the plan and the integrity of the owner.
For this reason, it is necessary to use a professional format. After loan officers complete their evaluations, the loan
committee will further review the business plan and make a decision. The committee members will often spend limited
time reviewing the document, focusing on the message of the executive summary and financial statements to make their
determination. Because of this, these portions need to be the strongest parts of the plan and based on sound in-depth
research and analysis.
Sections of the Business Plan
A business plan should be structured like a book with the title or cover page first, followed by a table of contents.
Following these two pages, the main parts of the plan normally appear in this order: executive summary, business mission
statement, goals and objectives, background information, organizational matters, marketing plan, and financial plan.
I. EXECUTIVE SUMMARY
The executive summary is placed at the front of the business plan, but it should be the last part written. The summary
describes the proposed business or changes to the existing business and the sector of which the business is (or will be) a
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 NDSC SHS
part. Research findings and recommendations should be summarized concisely to provide the reader with the information
required to make any decisions. The summary outlines the direction and future plans or goals of the business, as well as the
methods that will be used to achieve these goals.
The summary should include adequate background information to support these recommendations. The final financial
analysis and the assumptions used are also a part of the executive summary. The analysis should show how proposed
changes will ensure the sustainability of the current or proposed business. All challenges facing the existing business or
proposed venture should also be discussed in this section. Identifying such challenges shows the reader that you have
explored and taken into account all considerations during the research process.
II.MISSION, GOALS, AND OBJECTIVES
This section has three separate portions. It begins with a brief, general description of the existing or planned business. The
overview is followed by the mission statement of the business. You should try to limit the mission statement to three
sentences if possible and include only the key ideas about why the business exists. An example of a mission statement for a
produce farm might be: "The mission of XYZ Produce is to provide fresh, healthy produce to our customers, and to provide
a safe, friendly working environment for our employees." If you have more than three sentences, be as concise as possible.
The third (and final) portion sets the business's goals and objectives. There are at least two schools of thought about goals
and objectives. One is that the goals are the means of achieving the objectives, and the other is exactly the opposite--that
the objectives are the means of achieving the goals. Whichever school you follow, this is a very important part of the
business plan. These goals and objectives should show the reader what the business wishes to accomplish and the steps
needed to obtain the desired results. Goals or objectives should follow the acronym SMART, which stands for Specific,
Measurable, Attainable, Reasonable, and Timed, to allow for evaluation of the entire process and provide valuable
feedback along the way. The business owner should continually evaluate the outcomes of decisions and practices to
determine if the goals or objectives are being met and make modifications when needed.
III. BACKGROUND INFORMATION
Background information should come from the research conducted during the writing process. This portion should include
information regarding the history of the industry, the current state of the industry, and information from reputable sources
concerning the future of the industry. This portion of the business plan requires the most investment of time by the writer,
with information gathered from multiple sources to prevent bias or undue optimism. The writer should take all aspects of
the industry (past, present, and future) and business into account. If there are concerns or questions about the viability of
the industry or business, these must be addressed. In writing this portion of the plan, information may be obtained from
your local public library, periodicals, industry personnel, trusted sources on the Internet, and Penn State Extension.
Industry periodicals are another excellent source of up-to-date information. The more varied the sources, the better the
evaluation of the industry and the business, and the greater the opportunity to have an accurate plan.
The business owner must first choose an appropriate legal structure for the business. The business structure will have an
impact on the future, including potential expansion and exit from the business. If the proper legal structure is not chosen,
the business may be negatively impacted down the road. Only after the decision is made about the type of business can the
detailed planning begin.
IV. ORGANIZATIONAL MATTERS
This section of the plan describes the current or planned business structure, the management team, and risk management
strategies. There are several forms of business structure to choose from, including sole proprietorship, partnership,
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corporations (subchapter S or subchapter C), cooperative, and limited liability corporation or partnership (LLC or LLP).
These business structures are discussed in Starting or Diversifying an Agricultural Business.
The type of business structure is an important decision and often requires the advice of an attorney (and an accountant).
The business structure should fit the management skills and style(s) of the owner (or owners) and take into account the risk
management needs (both liability and financial) of the business. For example, if there is more than one owner (or multiple
investors), a sole proprietorship is not an option because more than one person has invested time and/or money into the
business. In this case, a partnership, cooperative, corporation, LLC, or LLP would be the proper choice.
If the business is not a sole proprietorship, the management team should be described in the business plan. The
management team should consist of all parties involved in the decisions and activities of the business. The strengths and
backgrounds of management team members should be discussed to highlight the positive aspects of the team. Even if the
business is a sole proprietorship, usually more than one person (often a spouse, child, relative, or other trusted person) will
have input into the decisions and therefore should be included as team member(s).
Regardless of the business structure, all businesses should also have an external management support team. This external
management support team should consist of the business's lawyer, accountant, insurance agent or broker, and possibly a
mentor. These external members are an integral part of the management team. Many large businesses have these experts on
staff. For small businesses, the external management team replaces full-time experts; the business owner(s) should consult
with this external team on a regular basis (at least once a year) to determine if the business is complying with all rules and
regulations. Listing the management team in the business plan allows the reader to know that the business owner has
developed a network of experts to provide advice.
The risk management portion of the business plan provides a description of how the business will handle unexpected or
unusual events. For example, if the business engages in agricultural production, will the business purchase crop insurance?
Does the business have adequate liability insurance? Is the business diversified to protect against the unexpected, rather
than "putting all its eggs in one basket"? If the business has employees, does the business carry adequate workers'
compensation insurance? All of these questions should be answered in the risk management portion of the business plan.
More information how liability can affect your business and on the use of insurance as a risk management tool can be
found in Agricultural Business Insurance and Understanding Agricultural Liability . The business structure will also
determine a portion of the risk management strategy since the way that a business is structured carries varying levels of risk
to the owner and/or owners. All marketing strategies (or objectives) carry a degree of risk and must be evaluated, and
mitigation strategies should be included in this portion of the plan.
V. MARKETING PLAN
Every purchase decision that a consumer makes is influenced by the marketing strategy or plan of the company selling the
product or service. Products are usually purchased based on consumer preferences, including brand name, price, and
perceived quality attributes. Consumer preferences develop (and change) over time, and an effective marketing plan takes
these preferences into account. This makes the marketing plan an important part of the overall business plan.
In order to be viable, the marketing plan must coincide with production activities. The marketing plan must address
consumer desires and needs. For example, if a perishable or seasonal crop (such as strawberries) will be produced, the
marketing plan should not include sales of locally grown berries in January if the business is in the northeastern United
States. If the business plans to purchase berries in the off-season from other sources to market, this information needs to be
included. In this way, the marketing plan must fit the production capabilities (or the capability to obtain products from
other sources).
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A complete marketing plan should identify target customers, including where they live, work, and purchase the product or
service you are providing. Products may be sold directly to the consumer (retail) or through another business (wholesale).
Whichever marketing avenue you choose, if you are starting a new enterprise or expanding on an existing one, you will
need to decide if the market can bear more of what you plan to produce. Your industry research will assist in this
determination. The plan must also address the challenges of the marketing strategy proposed. This portion of the plan
contains a description of the characteristics and advantages of your product or service. Identifying a "niche" market will be
of great value to your business.
Other variables to consider are sales location, market location, promotion and advertising, pricing, staffing, and the costs
associated with all of these. All of these aspects of the marketing plan will take time to develop and should not be taken
lightly. Further discussion on marketing fruits and vegetables can be found in Fruit and Vegetable Marketing for Small-
scale and Part-time Growers.
An adequate way of determining the answers to business and marketing issues is to conduct a SWOT analysis. The
acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths represent internal attributes and
may include aspects like previous experience in the business. Experience in sales or marketing would be an area of strength
for a retail farm market. Weaknesses are also internal and may include aspects such as the time, cost, and effort needed to
introduce a new product or service to the marketplace. Opportunities are external aspects that will help your business take
off and be sustained. If no one is offering identical products or services in your immediate area, you may have the
opportunity to capture the market. Threats are external and may include aspects like other businesses offering the same
product in close proximity to your business or government regulations impacting business practices and costs.
VI. FINANCIAL PLAN

The financial plan and assumptions are crucial to the success of the business and should be included in the business plan.
One of the foremost reasons new businesses fail is not having enough startup capital or inadequate planning to cover all
expenses and be profitable. The scope of your business will be determined by the financial resources you can acquire.
Because of this, you will need to develop a financial plan and create the supporting documents to substantiate it.
The financial plan has its basis in historical data (for an existing business) or from projections (for a proposed business).
The first issue to address is recordkeeping. You should indicate who will keep the necessary records and how these records
will be used. Internal controls, such as who will sign checks and handle any funds, should also be addressed in this section.
A good rule to follow for businesses other than sole proprietorships is having at least two people sign all checks.
The next portion of the financial plan should be assumptions concerning the source of financing. This includes if (and
when) the business will need additional capital, how much capital will be needed, and how these funds will be obtained. If
startup capital is needed, this information should be included in this portion. Personal contributions should be included
along with other funding sources. The amount of money and repayment terms should be listed. One common mistake
affecting many new businesses is underfunding at startup. Owners too often do not carefully evaluate all areas of expense
and underestimate the amount of capital needed to see a new business through the development stages (including living
expenses, if off-farm income is not available).
Typically, a balance sheet, income statement, cash flow statement, and partial budget or enterprise budgets are included in
a business plan. More information on agricultural budgets can be found in Budgeting for Agricultural Decision Making.
These documents will display the financial information in a form that lending institutions are used to seeing. If these are
not prepared by an accountant, having one review them will ensure that the proper format has been used.
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Financial projections should be completed for at least two years and, ideally, for five years. In agricultural businesses, five-
year projections are sometimes difficult to make because of variability in prices, weather, and other aspects affecting
production. One way to illustrate these risks is to develop several scenarios covering a range of production assumptions.
This attention to detail will often result in a positive experience with lenders because they realize that the plan covers
several possible circumstances and provides insight into how the business plans to manage risk. More information on
financing agricultural businesses can be found in the publication Financing Small-scale and Part-time Farms.
WHAT IS A BUSINESS PLAN FOR?

Entrepreneurs who plan to enter any business endeavor must have a
business plan on hand to guide then throughout the process. Different
business plans are prepared for different purpose. There are business plans
written prior to setting study and up an enterprise, which are similar to a
prefeasibility study and a feasibility study. Many new enterprises need to
convince prospective business investors about the soundness and potential of
their business. They need to convey the capabilities and competencies of
their owners and managers. They must also be able to ‘sell’ the proponent
and the business proposition to this audience. These are situations when a
good business plan is needed.
There are business plans that are written during the first few years of
the enterprise in order to guide the entrepreneur on which strategies would
be most beneficial for the enterprise to take. And there are business plans
that are focused on bringing the enterprise to a higher level of growth, a period where the enterprise has already reached its
peak and would want to enter into another endeavor by creating and re-establishing itself.
Clearly, a business plan serves many masters. First, it serves the entrepreneur who must set a navigational course.
Second, it serves investors and cautious financiers. And third, it serves the managers and staff of the organization so that
they will know the strategies and programs of the enterprise.
The business plan must have a specific audience in mind and what important questions do this audience want
answered. In order to aid the entrepreneur in getting his or her business plan organized, the following format may be a good
start:
I. Introduction
A. The Business Concept and the Business Model
B. The Business Goals: Vision, Mission, Objectives, and Performance Targets
C. The Business Offering and Justification
II. Executive Summary
III. The Business Proponents: Organizers with their Capabilities and Contributions
IV. The Target Customers and the Main Value Proposition to the Customer
V. The Market, Market Justification based on the Industry Dynamics and the Macro Environmental Factors
Affecting the Opportunities and Threats in the Market, the Size, Potential and Realistic Share of the
Market.
VI. The Product and Service Offerings 25
All rights
VII.reserved.
TheNo parts of this
Enterprise document
Strategy andmay be reproduced,
Enterprise Deliverydistributed
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any form Competitiveness
or by any means including photocopying or
VIII. The Financial Forecasts and Expected Returns, Risks, and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offering: Return and Benefits to Investors, Financiers, and Business
Partners
 NDSC SHS
CONTENTS OF THE BUSINESS PLAN

I. The Business Concept and the Business Model
A business concept contains the essence of the enterprise in a concise but powerful manner. It stresses the value of
the product offering to the target customers who would most likely buy it.
The product concept must then be translated into a business model. A business model is a formula on how the enterprise
exactly plans making to make money out of the business. There are four areas of money which the business model must
address:
1. How will the business raise revenues? What critical factors will cause the revenues to materialize?
2. What will the costs of the enterprise products and other costs of doing business? How will the costs be managed to
ensure comfortable profits? What critical factors will drive the costs? How can these factors be controlled?
3. What will be the major investments of the enterprise? Why will these investments give the enterprise a competitive
edge?
4. How will the enterprise finance the investments? How will the enterprise fund its growth?
II. The Business Goals: vision, mission, objectives, and performance targets
The business goals show the future and long-term prospects of the enterprise. It is composed of the vision, mission,
objectives, key result areas, and performance indicators of the enterprise.
EXECUTIVE SUMMARY
The executive summary contains everything that is relevant and important to the business audience. It is a synthesis
of the entire plan. It must contain the major argumentations of the business proponent on why the business will work and
succeed. It should provide the business plan audience all the arguments on why they should participate in the business
venture.
The executive summary should then introduce and highlight the good qualities of:
1. the business proponents and their partners;
2. the enterprise organization and its capabilities;
3. the technology provides and their expertise and experience; and
4. the suppliers and all the major service providers
It should likewise describe the products/services of the enterprise, their features and attributes, and why they are
the right ones to deliver to the customers.
The Executive Summary should then proceed to discuss and justify the Enterprise Strategy and Enterprise Delivery
System. The Enterprise Strategy builds and develops the game plan for attaining competitiveness. The Enterprise
Delivery System is the entire process of converting input (resources) into output and these output into outcomes.
The Executive Summary should also contain a section on the environment and regulatory compliance of the
proposed business, as well as the more proactive programs to become a more responsible corporate citizen.
Finally, the Executive Summary should present the capital structure of the proposed business and show how this
structure will respond to the investment programs and financial forecasts of the enterprise.
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 NDSC SHS
However, the Executive Summary can only be written last in order to capture the finding and insights of the other
parts, but for presentation purposes, it is placed in the first part of the business plan.
The Business Proponents

The third section of the business plan contains information about the business proponents or stakeholders. There
are four types of stakeholders:
1. Resource mobilizers and financial backers

2. Technology providers and applicators
3. Governance and top management
4. Operating and support team
If the business plan readers are the resource providers, then they will want to know who else are
on board to share the burden of raising money to see the whole thing through.
If the business plan readers are the technology providers, they will want to know if there will be sufficient funds to
pay for the technology.
If the business plan readers are the governance and top management team, then they will want to know what
strategies and performance indicators are being proposed.
If the business plan readers are the implementing, operating, and support teams they will want to know what
programs, activities, tasks, and resources would be in place.
THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION

The fourth section of the business plan is the Target Customers and the Main Value Proposition.
The business proponent must be very precise about the target audience or target customers. The Target Customers must be
of sufficient size, sufficient paying capacity, and have sufficient interest to purchase the products being offered by the
enterprise. The Main Value Proposition is the unique selling proposition of the enterprise.
Knowing where the target customers, are exactly concentrated, the business plan should then pinpoint what the
customers buy, how they buy, when they buy, where they buy, and what convinces them marketing channels to be
employed by the enterprise.
MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND MACRO ENVIRONMENTAL FACTORS
The fifth section of the business plan is the market demand and supply, the industry dynamics, and the macro
environmental forces affecting the business of the enterprise.
It is normal for enterprises to actually expand their product offering to include the other segments of a bigger
market. The business proponent should examine all the opportunities in this bigger market in order to determine what
exactly influences this bigger market.
The business plan should estimate the total market supply and demand for the product offerings of the enterprise.
The business plan should then determine the major critics factors that influence this market demand and supply.
Once these critical factors or variables are determined, the business plan should then forecast the future and supply.
If these physical factors are expected to remain the same, then most likely, the future forecast will follow the past trends. If
not, the future estimate of demand and supply should be revised according to the new variables influencing the demand and
supply.
The market analysis and forecasting exercise should lead to a quantification of the current and prospective size of
the market. Both the current and potential consumptions should then be dissected.
The business plan should discuss the relevant industry dynamics:
 Who are the competing enterprises in the industry and what are their comparative advantages and
disadvantages? What business models and strategies are they employing?
 Who are the suppliers in the industry and what are their capabilities and bargaining power?
 What are the channels of distribution being used by the industry? How effective are these channels?
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Both the industry players and the market are affected by the macro environment, which includes the social, political,
economic, ecological, and technological (SPEET) forces. The business plan should discuss the major trends and
changing patterns in the macro-environment, which would have significant impacts on the relevant industry and the
behavior of consumers.
 Social environment includes the demographics and cultural dimensions that govern the relevant
entrepreneurial behavior. The structure, social status, and dynamics of the population at large, as well as the
people’s beliefs, tastes, mores, customs, and traditions dictate the major parameters of market behavior.
 Political Environment defines the governance system of the country or the local area of business. It includes
all the laws, rules, and regulations on allowable and disallowable business practices.
 Economic Environment is mainly driven by supply and demand forces. It is the same factor that drives the
interest and foreign exchange rates to fluctuate with the movement of the market forces.
 Technological Environment makes or breaks competing participants in any industry. New scientific and
technological discoveries often lead to the launch and commercialization of a new products with superior
attributes or to rendering the old ones obsolete.
PRODUCTS/SERVICE OFFERING: DESCRIPTION, EVOLUTION, AND JUSTIFICATION

The sixth section of the business plan is the product/service offerings that should contain a description, evolution,
and justification of the product/service offerings.
The products/services must be described by highlighting the features and attributes that would most appeal to the
target customers. The business plan should also prove that the products/services would be accepted and carried by the
distribution channels.
ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM

The business plan should expound on the Enterprise Strategy (ES) by mapping the competitive landscape and by
situating the enterprise and its competitors as to their strategies and chosen positionings.
The business plan should then show how the Enterprise Delivery System (EDS) would enable the business to
implement the Enterprise Strategy.
The Enterprise Delivery System starts from the Input (resources mobilized), proceeds to the Throughput (the
transformation process where input are converted to output), and produces the Output (the products/services). The output
are then marketed to the customers (in the case of goods) or experienced by the customers (in the case of services).
Customer satisfaction level, profits generated, and the performance of people from the transaction are the Outcomes of the
EDS.
Input Throughput Output Marketing Desired Outcomes
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 Harnessing of human, Conversion of  Goods  Positioning  Customer

money and physical input into output produced or  Product Satisfied
resources and the services  Packaging  Sales Volume
 Resources mobilized transformation delivered attained
- Money
 Place
process within the  Profits
- Men  People generated
factory or service  Promotion
- Machines  People
shop
- Material  Price Performance
- Methods
- Management
FINANCIAL FORECASTS: EXPECTED RETURNS, RISKS, AND CONTINGELNCIES

The eight section of the business plan is the financial forecast including the financial returns, the financial risks,
and the financial contingencies.
The business plan must translate everything that we have discusses so far into financial forecasts and outcomes.
From the financial forecasts, the business plan should then calculate the expected returns from the business. The
important return calculations are the following: (1) expected return on sales; (2) expected return on assets or investments;
(3) expected return on stockholders’ equality.
The business plan should also calculate the long-term returns, using time value of money. The means estimating
the internal rate of return and the expected net present value.
The business plan should then evaluate both the business risks and the financial risks involved.
ENVIRONMENTAL AND REGULATORY COMPLICATE

The ninth part of the business is composed of the environmental and regulatory compliance.
The business plan must articulate the laws, rules, and regulations governing the business, and the industry that the
enterprise is in. It should ascertain that all the necessary permits, licenses, and authority to use proprietary intellectual
capital had either been secured or would definitely be secured.
The business plan should also assure the reader that all the necessary local government ordinances and barangay
ethics would be followed by the enterprise.
CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS AND BEFITS TO INVEBTORS,

FINACIERS, AND PARTNERS
The tenth section of the business plan contains the capital structure and financial offerings of the enterprise
including some discussion on who are the investors, the financiers, and the partners of the enterprise.
Finally, the business plan must appeal to its target audience. It must highlight for them the main features of the
business plan that they are looking for.
You may refer in your textbook on page 65-83 for additional inputs about developing a Business Plan.
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Activity#2: Do answer the questions given below: (to be submitted)
1.What is a Business Model?

2.What are the two parts of Business Model? List those with the definition of terms of each
building block.
IDENTIFY AND MEET A MARKET NEED
SECTION A:
THE VALUE OF MARKET RESEARCH
“Research is formalized curiosity. It is poking and prying with a purpose.” (Zora Neale Hurston). Market
Research is the process of gathering information which will make the company more aware of how the people the
company hopes to sell to, will react to the company’s current or potential products or services. It is simply an information
gathering exercise to determine the viability or acceptability of a product or service an entrepreneur intends to offer in the
market.
Research is important for every business, and should not be just a one-off activity. Successful businesses conduct
research on a continual basis to keep up with market trends and to maintain a competitive edge. Regardless of whether an
entrepreneur is starting or expanding its business, market research is necessary to understanding its target market and
increasing sales (“The importance of market research, “n.d.). Today, business owners conduct market research for a lot of
reasons such as the following (“The importance of market research,” n.d):
1. Identify Potential Customers

Who is going to use your product/service? How old are they? Are they male or female?
Are they single, married or divorced? Do they have children? Where do they live? What is their level of education?
2. Understand Existing Customers
Why do customers choose your product over competitors? What do they value? Is it service product
quality or the prestige associated with consuming your product/service? Who influences their buying decision? What
magazines do they read? What websites do they visit? What do they enjoying doing?
3. Set Realistic Targets
From the information you collect you will be able to set realistic targets for areas such as growth, sales and
the introduction of new products/services.
4. Develop Effective Strategies
From your research you will be able to make informed marketing decisions about how to price your
product/service, how to distribute your product/service, which media channels to use (e.g., newspaper, radio or direct
marketing) or whether to develop a new product/ service. It will also help you make an informed decision about
starting, building, consolidating, diversifying or reducing business activity.
5. Examine and Sole Business Plan
If you have identified a business problem, research will help you work out what is happening. For
example, if your sales have fallen you might discover that brand awareness has also fallen, or that a new competitor
has entered the market or a substitute product has become available.
6. Prepare for Business Expansion
Research will help you identify areas for expansion and test the market’s readiness for a new
product/service. For example, you could be looking to open a new retail store and you need to find the right location
or you could plan to make changes to your distribution channels (e.g., from home parties to retail) and need to
determine how that will affect your customer base.
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7. Identify Business Opportunities

Your research could identify new business opportunities. You may find an un-serviced or under-serviced
market. You could identify changing market trends such as population shifts, increasing levels of education or
leisure time which bring new opportunities.
What is a Target Market?

 Target Market- the individuals or companies that are interested in a particular product or service and willing and
able to pay for it identifying who you will most likely sell too.
Understand your Customer
 Customers-people who buy the products and services companies offer… the customer is always right!
 What do your customers want? How are you going to fill that want?
Demographics
 Demographics-data that describes a group of people in terms of their age, marital status, family size, ethnicity,
gender, profession, education, and income.
Psychographics
 Psychographics-data that describe a group of people in terms of their tastes, opinions, personality traits, and
lifestyle habits.
Market Segments
 Market Segments-groups of customers that share common characteristics
 Segmenting or dividing your targets market into several small groups can help you develop a product or
service that will meet customer needs
 You can not meet the needs of the entire market-narrow it down!
SECTION B:HOW TO PERFORM MARKET RESEARCH
1. Define the Question

 You need to define exactly what it is that you are trying to find out.
2. Select a Research Method
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 Survey? Observation? Focus Group? How many people should be involved in each?
 The method you use will depend on what type of information you want to gather
3. Collect Data
 Collect secondary date first (demographic and psychographic data)
 This will help you determine what kind of primary data research to perform
 Surveys- need to be clear, easy to answer, and only include the most important questions
4. Analyze Data
 Interpret the information
 Consider the market segment you are targeting
5. Draw Conclusions
 Once you have analyzed and interpret your data, you will need to determine how to use the information.
 Develop a plan of action based on the information you found in market research
SECTION C:
IDENTIFY YOUR COMPETITION
DIRECT AND INDIRECT COMPETITION

Direct Competition-competition from a business that makes most of his money selling
the same or similar products or services as another business
Indirect Business-competition by a business that makes only a small amount of money
selling the same or similar product or services as another business.
Find your Direct Competition

 can be located in the same geographic area as your business
 look in telephone directory or Chamber of Commerce
 can be located far away
Find your Indirect Competition
 Think of all of the possible business that can compete with you indirectly
Competing with Large Business
1. Large retailers usually are able to keep larger quantities of products in stock
2. Large retail chains don’t rely on one single product line
3. Large companies usually have more resources to devote to advertising
Study Individual Competitors
 Analyzing the strengths and weakness of your competition will help you figure out what you can do to get
customers to buy from your business
 Price
 Location
 Facility
 Strengths
 Weakness
 Strategy
Strategies for Maintaining Customer Loyalty
1. Listen and Respond to Feedback
 What are their concerns and how are you going to fix them?
2. Other Strategies for Maintaining Loyalty
 Superior service
 More convenient hours than other business
 Easy return policies
 Store-specific credits cards
 Personal notes or cards for birthday or a thank you for joining
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 Frequent buyer program
THE RIGHT PRODUCT FOR THE RIGHT MARKET

Successful new product spring from the convergence of: (1) the creative mind; (2) the technical mind; and (3) the
business mind. All three minds come together in the entrepreneurial mind.
In reality, however, the three minds are seldom found in one entrepreneur. However, the entrepreneur is certainly
the orchestrator of the three minds.
The Entrepreneurial Mind

The creative mind conceptualizes and designs a product that consumers find some use for: If likewise produces a
product that is pleasing to see, touch, smell, hear, and tastes. It also created a product that creates emotional attachment and
eventually becomes aa significant personal expression of the consumer.
The technical mind is also a technology originator. The entrepreneur may not necessarily possess the technical
mind but this is what drives him or her to convert new knowledge into something highly functional and operational. The
technical mind is also a technology adaptor. He or she uses old knowledge for new applications in various fields of human
endeavor: Finally, the technical mind is a technology renderer. He or she resolves to make a new product work for the
product creator by configuring the technical design of the new product.
The business mind harnesses the potentials of new products by creating the market space for them. It also
organizes sufficient forces and resources to develop, launch, and commercialize the new product in order to maximize its
market value. The business mind also manages the external and internal business environment of the new product, which
goes beyond the product development process itself.
Activity#2: Let’s Perform (to be submitted)

A. Direction: Write your answer on a long bond paper.
Begin by studying your own community, village, or barangay. Scan the external and internal
business environments and identify at least five potential business opportunities that you can possibly venture in
your localities.
Product 1
Product 2
Product 3
Product 4
Product 5
Process Question:
1. Explain the meaning of market research and give at least three reasons for business owners to conduct market
research.
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Activity#3: Let’s Perform (to be submitted)

Direction: In a form of GRAPHIC ORGANIZER discuss the importance of developing a Business Plan.
Create/write your output on a long bond paper.
RUBRICS:
GRAPHIC ORGANIZER RUBRIC

Using the following criteria, your output will be rated through the scale that reflects your assessment.
1 = Weak 2 = Moderately Weak 3 = Average 4 = Moderately Strong 5 = Strong
1.The graphic organizer has an appropriate title and labels. _____

2.The graphic organizer’s lines, boxes, and text are neat and legible. _____
3.The information in the graphic organizer is accurate. _______
4.The spelling, grammar, and punctuation of the text on the graphic organizer are accurate. _____
5.The graphic organizer presents the information in a manner that is easy to follow. _____
6.The relationships presented in the graphic organizer are correct and clear. _____
7.The form in which the graphic organizer portrays the information is appropriate to the relationships being
represented. _____
8.The graphic organizer demonstrates an understanding of the topic, its relationships & related concepts. _____
9.The graphic organizer fulfills all the requirements of the assignment. _____
10.Overall, the graphic organizer represent your full potential. _____
TOTAL: 50 POINTS
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Test I. True or False: Write TRUE if the statement given is correct and FALSE if the statement given is incorrect.
_________1. The business plan must have a specific audience in mind and what important questions do
this audience want answered. T
_________2. Business plan also manages the external and internal business environment of the new
product, which goes beyond the product development process itself. F-business mind
_________3. According to research, without a business plan firms are more likely to close down. T
_________4. The preparation of a business plan is optional for some small businesses. F
_________5. Every sudden or careless decision the entrepreneur makes for the business may cause
failure.
_________6. It outlines a company's go-to-market plan, financial projections, market research, business
purpose, and mission statement. Business plan
_________7. A person or organization that buys goods or services from a store or business. customer
_________8. Someone who has the ability and desire to establish, administer and
succeed in a startup venture along with risk entitled to it, to make profits. entrepreneur
_________9. An area or arena in which commercial dealings are conducted. market
_________10. The advertising strategy that a business will implement to sell its product or service.
Marketing plan.
_________11. Which section of a business plan is generally first but written last?
A. Appendices C. executive summary
B. C. organization and management D. business description and vision
_________12. What is the component of business plan?
A. Marketing Strategy C. Sales Strategy
B. Executive Summary D. All of the above
_________13. Which of these business components help in understanding how the business's plans will be
going to expand in the future?
A. Growth Strategy C. Competitors description
B. Summary Analysis D. None of the above
_________14. The ______________ should present the capital structure of the proposed business and show
how this structure will respond to the investment programs and financial forecasts of the
enterprise.
A. Marketing Strategy C. Sales Strategy
B. Executive Summary D. All of the above
_________15. Which of these business statements provides an explanation of the organization's reason
for existence?
A. Objective Statement C. Executive Summary
B. Mission Statement D. Company Description
Test IV. Short Paragraph: In five sentences evaluate the career opportunities you think are more appropriate for
you.
Rubric:
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SCORE EARNED
Something to Ponder
"A business plan is an operating tool which, if properly prepared, will help the entrepreneur to work
effectively towards success."
Prepared by: Ma’am Blanca

Ma’am Catalan
Ma’am Opimo

(ESSDLA)
IN
ENTREPRENUERSHIP
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TOPIC/LESSON: Marketing Quarter 2 (Week 5-8)

The learner demonstrates understanding of key concepts,
CONTENT STANDARD underlying, principles, and core competencies in
Entrepreneurship.
The learner independently creates/ provides a quality and
PERFORMANCE marketable product and/ or service in Entrepreneurship as
STANDARD: prescribed in the TESDA Training Regulation.
 recognize the importance of marketing mix in the
MOST ESSENTIAL development of marketing strategy
COMPETENCIES  describe the Marketing Mix (7Ps) in relation to the
business opportunity vis-à-vis:
- Product
- Place
- Price
- Promotion
- People
- Packaging; and
- Positioning
 develop a brand name
TIME ALLOTMENT 3 hours per day

Week 5-8: Topic/Lesson: Marketing

incorrect.
_________1. A business plan should be structured like a book with the title or cover page first, followed
by a table of contents. T
_________2. One of the foremost reasons new businesses fails is not having enough startup capital or
inadequate planning to cover all expenses and be profitable. T
_________3. The customer should continually evaluate the outcomes of decisions and practices to
determine if the goals or objectives are being met and make modifications when
needed. Owner F
_________4. Financial plan requires the most investment of time by the writer, with information gathered
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from multiple sources to prevent bias or undue optimism. F

_________5. The more varied the sources, the better the evaluation of the industry and the business, and
the greater the opportunity to have an accurate plan. T
_________6. This section of the business plan outlines the direction and future plans or goals of the
business, as well as the methods that will be used to achieve these goals. Executive Summary
_________7-11 Goals or objectives should follow the acronym SMART, which stands for 7. ___________,
8. _________, 9. ________, 10. __________, and 11. _________, to allow for evaluation of the entire
process and provide valuable feedback along the way.
16. According to him entrepreneurship is a dynamic process of creating incremental wealth.
C. Hozelits B. Casson (1982) C. Shapero D. Ronstadt (1984)
17. The term for an owner of a business who invests his/her resources to bring an idea to life, setting the direction that
transforms that idea into reality, thus providing and gaining value that balances effort, purpose and profit.
A. Entrepreneurship B. Intrapreneur C. Entrepreneur D. Innovator
18. A blue print of the business that the entrepreneur would like to start which aims to establish if a business idea will
bring in a fair return to one’s investment, will be beneficial to the society, and will bring no harm to the
environment when it is operated.
A. Business Plan B. Balance Sheet C. Branding D. Bookeeping
19. This section of the plan describes the current or planned business structure, the management team, and risk
management strategies.
Activity#1: (NOT to be submitted)
Get a dictionary and look for the meaning of each word.
Key Concepts:
Product Price Promotion Place
MARKETING
The American Marketing Association (as cited in Kotler & Keller, 2007, p.3) defines marketing as “an
organizational function and a set of process for creating, communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the organization and its stake holders.” It is the “art and science of
choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating
superior customer value” (Kotler &Keller, 2007, p.3). Moreover, marketing is also the performance of activities that seek
to accomplish an organization’s objectives by anticipating customer and client needs a directing a flow of need-satisfying
goods and services from producer to customer or client (Canon, Perrault, and McCarthy,2008). It is not only the selling of
the product or services but more importantly to know and understand the customers very well that the product or service
meets their need so it sells itself.
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In business, marketing is an integral part and a successful marketing campaign can yield massive sales. But the cost
and the time have to be factored into the business. The importance of marketing cannot be overemphasized; this is because
the tools you use are very important. Some of these tools are as follows, Radio and Television, Social media like Facebook,
LinkedIn and various social network, and Business Directories in your local area. This is where you draw a random sample
of your targeted population and how many people you need to reach in these random samples. The effectiveness of your
campaign will give a reason for your customers to contact you and become repeat customers.
THE 7Ps OF MARKETING

Everything matters with marketing and that broad, integrated
perspective is often necessary.” (Kotler & Keller). Estimate potential
market demand. Estimation is an educated guess. The best way to be very
certain and confident about estimates for potential market demand is to
look for facts about the industry where the entrepreneur intends to enter.
Census data is good source of estimates to be able to projects sales.
The traditional marketing mix elements comprised of the 4Ps of
product, price, place and promotion has enjoyed tremendous popularity
over the years in an era where most business sold products. In 1981,
Booms and Bitner extended the marketing mix by 3 new Ps that directly
relate to the service provision industry. These new elements are people,
physical environment and process. These 7Ps or elements of the
marketing can be defined based on the publications as cited in 7Ps in
Marketing (2014) and other sources about the topic: (Adapted from
entrepreneurial-insights. com)
THE MARKETING MIX

Simply put the Marketing Mix which is a tool used by
businesses and Marketers to help determine a product or brands
offering. The 4 Ps have been associated with the Marketing Mix
since their creation by E. Jerome McCarthy in 1960 (You can
see why there may have been some need to update the theory).
The Marketing Mix 4 Ps:
Product
The Product should fit the task consumers want it for, it
should work and it should be what the consumers are expecting
to get. In manufacturing industry, the production and consumption of the product are not simultaneous and it is tangible,
not always diverse nor usually perishable. “In the service industry, the production and consumption of the product are
simultaneous and the product in intangible, diverse and perishable. The nature of this ‘product’ allows for on the spot
customization. This also means that the point at which this activity is occurring becomes very important.”
STEPS IN THE PRODUCT DEVELOPMENT PROCESS
Phase One: Idea Generation
This is the initial stage where a business sources for ideas regarding a new product. Some of the sources for new
product ideas include the business customers, competitors, newspapers, journals, employees and suppliers. Small
businesses may be limited when it comes to technical research-based idea generation techniques. This stage is crucial as it
lays the foundation for all the other phases, the ideas generated shall guide the overall process of product development.
Phase Two: Screening
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The generated ideas have to go through a screening process to filter out the viable ones. The business seeks
opinions from workers, customers and other businesses to avoid the pursuit of costly unfeasible ideas. External industry
factors affecting small businesses, such as competition, legislation and changes in technology, influences the enterprise's
decision criteria. At the end of the screening process, the firm remains with only a few feasible ideas from the large pool
generated.
Phase Three: Concept Development
The enterprise undertakes research to find out the potential costs, revenues and profits arising from the product.
The business conducts a SWOT analysis to identify the strengths, weakness opportunities and threats existing in the
market. The market strategy is set out to identify the product's target group, which facilitates segmentation of the product’s
market. Market segmentation is important as it enables the firm to identify its niche. The identified niche influences most
of the marketing decisions.
Phase Four: Product Development
Product development entails the actual design and manufacture of the product. Development commences with the
manufacture of a prototype that facilitates market testing. Based upon the results of the tests, the business owner decides on
whether to undertake large-scale production or not.
Phase Five: Commercialization and Rollout
Favorable results in the development stage precede large-scale production and commercialization. Here, the
business launches its promotion campaign for the new product. The market research conducted during the conception stage
influences the timing and location of the product launch.
STAGES IN THE PRODUCT LIFE CYCLE

The product life-cycle refers to a likely pathway a product may take. It has implications for the marketing strategy
of a firm as it seeks to introduce, grow and maintain market share.
Stage 1.
Introduction Stage – This is the stage when the product is launch in the market. It is when the product is introduced and
struggles to gain brand recognition.
Stage 2.
Growth Stage – Also known as the “market acceptance “stage, this is when sales and profits grow at an increasing rate.
The advertising and word of mouth helps the product to increase sales. As sales growth, more firms are willing to stock the
product which helps the product to grow even further. During this stage, wants to sustain rapid sales growth as long as
possible.
Stage 3.
Maturity Stage – In this stage, sales and profits start to decline. More competitors enter the market with more advanced
product development. This stage is divided into three phases
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a. Growth maturity. Sales rate declines because of distribution saturation; unwillingness of middlemen to resell
manufacturers product.
b. Stable maturity. Sales become level off or at breakeven because of market saturation; unwillingness of the to
buy due to loss interest on the product.
c. Decaying maturity. Sales continue to decline; ; customers shift to other brands or available substitutes.
Stage 4
Decline Stage. In this stage, new products or brands eventually enter the industry.
Branding
It is the process of communicating a unique selling proposition for a company, product or service, which was
formed using product development, pricing and distribution strategies. The success of branding depends on effective brand
management, which is the process of consistently communicating the correct brand message to consumers with the use of
tools such as logos, mascots, jingles and slogans.
Creating a Brand
If you sell shampoo, that’s not your brand, that’s your product. If you sell a high-end, high-priced shampoo that’s
only sold in salons, that’s your brand – exclusivity and quality. If you sell a low-price shampoo in big box stores, that’s
your brand – affordability.
You can build a brand using your pricing strategy. Some companies aim to have the highest-priced product in their
space in order to create perceived value (“They could only sell it for this much if it’s the best!”). Lowering the price to
compete with bargain brands would damage the brand. If the high-price strategy isn’t working, the company might have to
pivot, changing the messaging as they change the product from a high-end item to a reliable or affordable or effective
product. This would create a new brand for the product.
Brand Management
Brand management is the process of protecting your brand. For example, if you brand your shampoo as an
exclusive, high-end product and start selling it in big box stores to increase sales; you will damage your brand as you
cheapen the image of your product. You might see a short-term rise in sales and profits as consumers, who normally
couldn’t afford your product rush to try it, but eventually, buyers will see you as a bargain shampoo and you’ll lose your
primary customers.
If you target Millennial’s with your trendy fitness clothing and add a line of apparel for senior citizens, you will
confuse the marketplace and will cause your millennial customers to view you differently.
The Role of the Four Ps
The marketing mix consists of Product, Price, Place and Promotion. Companies must address all of these in
marketing. They must develop products and features that offer the correct unique selling proposition. They must price the
product correctly to match the brand they have created. They must sell the products in ways that target their desired
customers (e.g., online for younger customers, brick and mortar for middle-aged adults, direct mail, catalogues and direct-
response TV ads for seniors).
Only after the first three Ps have been addressed do companies promote their products. Therefore, advertising,
public relations, social media and promotions are not marketing. They are examples of marketing communications
(marcom) or integrated marketing communications (IMC).
Brand management includes not only creating, pricing and using correct distribution chains to sell your products so that
these methods fit with your brand strategy, but sending your message consistently, such as a specific logotype, one slogan,
a unique jingle, or celebrity endorser.
Branding is the process of communicating a unique selling proposition for a company, product or service, which was
formed using product development, pricing and distribution strategies. The success of branding depends on effective brand
management, which is the process of consistently communicating the correct brand message to consumers with the use of
tools such as logos, mascots, jingles and slogans.
Place
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The product should be available from where your target consumer finds it easiest to shop. This may be High Street,
Mail Order or the more current option via e-commerce or an online shop. The product is not necessarily produced and
consumed in the same place. The Place of production or the plant site can be different from the place of distribution or
selling. “As mentioned, the service is produced and consumed in the same place. It cannot be owned and taken away from
the location. This is why the place at which this transaction occurs is of vital importance. The location of the service
provision is carefully analysed to allow ease of access and the desire to make the effort to reach it. Fast food restaurants
and sales and service centers may be located in busy main streets to allow walk in customers, while a fine dining restaurant
may be located in a quiet street to maintain exclusivity and privacy.”
Price
The Product should always be seen as representing good value for money. This does not necessarily mean it should
be the cheapest available; one of the main tenets of the marketing concept is that customers are usually happy to pay a little
more for something that works really well for them. With a product, the materials that go with it can be measured and its
actual tangible cost of production is also measurable. Therefore, it is not that difficult to put a price tag on it. However,
“since a service cannot be measured, it can be challenging to put a price tangible cost of production measurable, it can be
challenging to put v a price tag on it. There are some tangibles of course, such as the labor costs and overheads. But
additionally, the ambience, the experience and the brand name also factor into the final price offering.”
Pricing is Flexible. Pricing is the only single variable that is flexible and can be changed within no time. On the other
hand, the remaining elements of marketing mix like distribution channels, promotional campaigns and can increase the
cost.
Set the right Price. When setting the price keep in mind the strategic objective of the organization. For example, if a
marketer set too high or too low in both pricing decisions it can affect the sale growth.
Positioning. When setting a price, it conveys a message to your potential customers about your product and service
and creates a perceived value of marketing mix. This perceived value can affect the consumer decision-making process.
High pricing means high-quality products and services. Low pricing products and services indicate that you are a low-cost
provider
.
Different Pricing Strategies
Penetration Pricing
When companies use penetration pricing strategies, the focus is to gain market share. Goods and services are offered at
lower prices than its competitors. Marketers want to increase consumer awareness of products and services and influence
consumer to let’s give it a try. When a company sets lower prices, can damage its profitability, but in the long run they can
raise the price after successful market penetration strategy.
Cost plus pricing
It involves adding a mark-up to the cost of goods and services to arrive at a selling price. Under this approach, you add
together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a mark-up percentage in
order to derive the price of the product. Cost plus pricing can also be used within a customer contract, where the customer
reimburses the seller for all costs incurred and also pays a negotiated profit in addition to the costs incurred.
Example:
VariablecCost - Php 10.00 Solution: Therefore, the manufacturer’s unit cost
Fixed cost - Php 30,000 will be:
Expected unit sales - 1,500 Unit cost/ Manufacturing cost per unit
= Variable cost + Fix cost ÷ Unit sales
= Php 10.00 +30,000.00 ÷ 1,500
= Php 10.00 + 20.00
= Php 30.00
Suppose the manufacturing wants to earn 20% Example: Php 30.00÷(1-0.20)

mark up on sales: Manufacturing’s selling price= = Php 30.00 ÷ 0.80
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UC÷(1-%mark-up) = Php 37.50
Value-based pricing
This is a strategy of setting prices primarily based on a consumer's perceived value of a product or service. Value
pricing is customer-focused pricing, meaning companies base their pricing on how much the customer believes a product is
worth.
Value-based pricing is different than "cost-plus" pricing, which factors the costs of production into the pricing
calculation. Companies that offer unique or highly valuable features or services are better positioned to take advantage of
the value pricing model than companies which chiefly sell commoditized items.
Cost Leadership Strategy

Porter's generic strategies are ways of gaining competitive advantage – in other words, developing the "edge" that
gets you the sale and takes it away from your competitors. There are two main ways of achieving this within a Cost
Leadership strategy:
 Increasing profits by reducing costs, while charging industry-average prices.
 Increasing market share by charging lower prices, while still making a reasonable profit on each sale because
you've reduced costs.
Economy Pricing
Companies use economy pricing to target price-conscious customers. Mostly it is used by retailers and food suppliers.
With this strategy, businesses set the price as low as possible by keeping the promotional and marketing cost to the
minimum. These pricing strategies help business to increase their sales when introducing new products and services.
During the introduction stage of product life cycle, price skimming set high prices. These prices gradually decreasing as
competitors introduce the same goods in the market.
Psychological Pricing
Marketers use psychological pricing that influences the buyers to buy products and services based on their emotions
rather than logic sense.
Bundle Pricing
When businesses set bundle pricing, they sell several products combined into a single package for a lower price.
Bundling strategy is a smart way to move those unsold items taking up space. It can also create value perception in
customers’ mind that they are getting value for their money.
Bundle pricing better works for those companies having complementary product lines. For example, a restaurant can
offer a complimentary salad or green tea on a full platter dish.
Promotion
Promotion is the part of marketing where you advertise and market your product, also known as a promotional
strategy. The advertising, PR, sales promotion, personal selling and, in more recent times, social media are all key
communication tools for an organisation. These tools should be used to put across the organisation’s message to the correct
audiences in the manner they would most like to hear, whether it be informative or appealing to their emotions. Promotion
is the explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty, and support not only from
its customers but also from its other significant stakeholders.
Promotion encompasses all the direct communication efforts of the enterprise, such as advertising, public relation
campaigns, promotional tours, product offerings, point-of- sale displays, websites, flyers, emails, letters, telemarketing, and
others. In order to convince them to buy your product, you need to explain what it is, how to use it, and why they should
buy.
The trick in promoting is letting consumers feel that their needs can be satisfied by what you are selling.
Advertising It’s a key promotional strategy and can be done through the following:
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Radio
Relatively inexpensive yet very effective, radio advertisement is a great way to reach local customers and inform
them about your business and products. The best day to run a radio ad is from Wednesday to Sunday.
Television
If you want your advertisement to reach customers in regional or national levels, television is the way to go,
although it can be more costly than the other options.
Print
Print advertisement can be distributed via direct mail or printed materials which include newspapers, flyers, and
trade and consumer magazines. You can also send letters, contests, fact sheets, brochures, and coupons to current or
potential customers across the whole country. Print advertisements let people know what, where, when, and why they
should buy your product.
Electronic
You can also advertise electronically through your company website and provide important and pertinent
information to clients and customers. You can protect some parts of your website through passwords and give access to
member customers. You can also send advertisements via direct e-mail as part of your promotional strategy.
Word-of-mouth
They say the best advertisers are satisfied customers and the reverse can also be said. When customers like or
dislike your products, they tell other people about it.
Generic
This type refers to advertising that does not mention or promote a particular brand but the whole industry. You may
have seen generic advertisements for beef, pork, and milk.
Public Relations or PR
Public relations are usually focused on building a favourable image of your business. You can do this by doing
something good for the neighbourhood and the community like holding an open house or being involved in community
activities. You can engage the local media and hold press conferences as part of your promotional strategy.
In the late 70’s it was widely acknowledged by marketers that the Marketing Mix should be updated. This led to
the creation of the Extended Marketing Mix in 1981 by Booms & Bitner which added 3 new elements to the 4 Ps
Principles. This now allowed the extended Marketing Mix to include products that are services and not just physical things.
The extended 7 Ps:
People –
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All companies are reliant on the people who run them from front line Sales staff to the Managing Director. Having the
right people is essential because they are as much a part of your business offering as the products/services you are offering.
Processes
The delivery of your service is usually done with the customer present so how the service is delivered is once again
part of what the consumer is paying for.
Physical Evidence
Almost all services include some physical elements even if the bulk of what the consumer is paying for is
intangible. For example a hair salon would provide their client with a completed hairdo and an insurance company would
give their customers some form of printed material. Even if the material is not physically printed (in the case of PDFs) they
are still receiving a “physical product” by this definition
You may refer in your textbook on page 142-144 for additional inputs about 7Ps of
Activity#1: Do answer the questions given below:
1. What is the most important use of the internet for marketers? Why?
2. What are reasons of some product failure in entering the market?
3. Discuss the importance of pricing the product reasonably.
Activity #2:
Instruction: Choose at least 2 milk tea store in your locality. Evaluate the business strengths and weaknesses in terms of
their advertising, prices, packaging, customer care, location and demand. Compare your findings and come up with a
summarized report. (By Group)
Activity 3: Let’s Perform
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Instruction: You are to market “cupcakes” in a particular province, develop a brand name and a logo for it.
END OF THE LESSON
“Marketing’s job is never done. It’s about perpetual

motion. We must continue to innovate everyday”
-Unknown
STUDENT SELF- DIRECTED LEARNING AND ASSESSMENT (SSDLA)
ENTREPRENEURSHIP (ABM, STEM & HUMMS)
Topic: The 4Ms of operations and innovation (Unit 5 Week 9-12)
Content Standard: The learner demonstrates understanding of environment and market in one’s locality/town.
Performance Standard: The learner independently creates a business vicinity map reflective of potential market in one’s
locality/town
Most Essential Learning Competencies:
The learners…
 describe the 4Ms (Manpower, Method, Machine, Materials) of operations in relation to the business
opportunity:
 develop a product description
Time Allotment: 10 one-hour sessions
INTRODUCTION
The factors of production consists of many factors such as land, labour, capital, entrepreneurship and
management in which management is a vital factor of production, an entrepreneur may establishes the organization as its
owner, but it is management that make various resources productive. They simply require the catalyst of management to
produce results because it is management that coordinates various factors of production. Therefore, management occupies a
central place among all the factors of production. There are other factors of production such as money, manpower,
materials, machinery and methods known as the five m's of management.
The actions required to create new ideas, processes or products which when implemented lead to positive effective
change. While invention requires the creation of new ideas, processes or products, innovation moves one step further and
requires implementation of the inventive act. Innovation also implies a value system which seeks to derive a positive
outcome from the inventive act.
Business innovation is when companies implement new processes, ideas, services, or products with the goal of
boosting the bottom line. It could mean launching new and improved products or services (which can lead to higher
revenue), making an existing process more efficient, or solving a current business problem (both of which cut down on
costs and save time). A business focus on brainstorming, design thinking, or the establishment of an innovation lab can
drive business innovations.
The purpose of the business innovation process is to create value for the organization. That value can come from
creating new revenue opportunities or driving more revenue through existing channels; from creating efficiencies that save
time, money or both; or from improvements to productivity or performance. In short, i nnovation should lead to higher
profits.
GENERAL INSTRUCTIONS:
 Answers all activities on a long bond paper.
 Parts of answering these activities are the instructions, so you must follow all of the given instructions.
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Activity 1: To be submitted
Reflect Upon
Assuming that you are going to execute your business plan in the real world of business in the future. Would you apply
and use the 5M’s of operation? Why? Discuss your point.
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________
KEY CONCEPTS
The five M's of management are analyzed below:
1. Money: It is the most critical and all-purpose resource because it is used to acquire or hire other resources. In
organization, money is employed to generate more money in the form of profits or surplus. A business firm or enterprise
requires money in the form of fixed capital and working capital. Financial capital is money used by entrepreneurs and
businesses to buy what they need to make their products or to provide their services to the sector of the economy upon
which their operation is based.
2. Manpower (staffing): manpower refers to the managerial and non-managerial personnel employed an organization
other resources cannot act by themselves and have to be utilised by human beings. Therefore, human resources mobilize,
allocate and utilize the physical and financial resources of an organization. When setting up a business, finding honest
and capable people is always a challenge. It is a rare to find someone with all the ideal qualities. So for a businessman,
they must be able to treasure their employees who are both capable and honest as they are integral to the growth of the
business.
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Materials (Production): materials represent the physical raw materials and intermediate products (semi-finished
goods) which are converted and/or assembled into finished products with the help of certain processes and technology.
Without the proper equipment, you will not be able to perform the needed tasks efficiently. The sourcing raw materials
are critical in any business endeavour as the businessman would want to have the cheapest possible at the highest
quality.
Machinery (Equipment): machines are the equipment used to process the materials into finished or semi-finished
products. Employment of modern machinery helps to reduce costs and to improve the quality of output technology has
therefore become an important ingredient in the efficient management of organizations. You may be able to use the
manpower to do it but it is usually more efficient if machines are able to automate the work.
5. Methods: PProcee)methods refer to the normal and prescribed ways of doing things various operations are
performed according to certain systems and procedures. Use of right methods helps to increase efficiency of operations
and contributes to effective management. Without a scalable process, it would be difficult to expand the business. This
means that the methods used in the main branch must be documented and must be replicated as well in other branches.
Every other factor which is a part of the five M's has its own dynamics. It is the duty of management or business
owner to understand or analyse the basic nature and the functions of each M and the source of its availability. Managers
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must clearly know the purposes for which the other factors are employed and coordinate them in such a way as to
optimize their combined productivity.
INNOVATION
Innovation is the commercial application and successful exploitation of the idea.

Fundamentally, innovation means introducing something new into your business. This could be:
 improving or replacing business processes to increase efficiency and productivity, or to enable the business to
extend the range or quality of existing products and/or services
 developing entirely new and improved products and services - often to meet rapidly changing customer or
consumer demands or needs
 adding value to existing products, services or markets to differentiate the business from its competitors and
increase the perceived value to the customers and markets.
Whatever form it takes, innovation is a creative process. The ideas may come from:
 inside the business, from employees, managers or in-house research and development work
 outside the business, e.g. suppliers, customers, media reports, market research published by another
organisation, or universities and other sources of new technologies
Success comes from filtering those ideas, identifying those that the business will focus on and applying resources
to exploit them.
Introducing innovation can help you to: Businesses that fail to innovate run the risk of:
 improve productivity  losing market share to competitors

 reduce costs  falling productivity and efficiency
 be more competitive  losing key staff
 build the value of your brand  experiencing steadily reducing margins and profit
 establish new partnerships and  going out of business
relationships
 increase turnover and improve
profitability
Approaches to innovation
Innovation in your business can mean introducing new or improved products, services or processes. Analyse the
marketplace. There's no point considering innovation in a vacuum. To move your business forward, study
your marketplace and understand how innovation can add value to your customers. For more information on analysing
your marketplace, see the page in this guide on planning innovation.
Identify opportunities for innovation.
You can identify opportunities for innovation by adapting your product or service to the way your marketplace is
changing. *For example, if you're a specialist hamburger manufacturer, you might consider lowering the fat content in
your burgers to appeal to the health-conscious consumer.
You could also develop your business by identifying a completely new product. *For example, you could start producing
vegetarian as well as meat burgers.
Planning innovation
Some innovative ideas may just come to you out of the blue. However, you should ideally have:
49
 NDSC SHS
 innovation as part of your business strategy

 strategic vision of how you want your business to develop - if you dedicate your time to monitoring trends in
your business sector, you can then focus your innovative efforts on the most important areas.
Innovation will not only improve the chances of your business surviving, but also help it to thrive and drive
increased profits. There are lots of practical ways of assessing whether your ideas have profit potential:
Assess the competition
Find out who your competitors are and where they operate. Use the Internet and advertising sources to find out
about their products, prices and operating culture. This can give you an overview of their selling points, as well as any
areas you might be able to exploit.
 study market or industry trends
 awareness of the climate in which your business is operating will help you to plan.
 you can find a lot of information about your industry on the Internet. Business and trade magazines will also
feature useful articles.
 build a relationship with your customer.
It's not enough simply to know who your customer base is. You need to communicate effectively with them as
well. Communication involves not only listening to their needs but also actively observing their behaviour around
current products and services and generating ideas on how you can make improvements. Involve your suppliers and
other business partners.
Involve your suppliers and other business partners

Pooling your resources with your suppliers or other business partners will help to produce and develop creative
ideas. Potential partnerships can also be developed through business networking opportunities.
Next, consider what taking a particular innovative step could mean for your business. Ask yourself:
 what impact it will have on your business processes and practices
 what extra training your staff may require
 what extra resources you may need
 how you'll finance the work
 whether you'll be creating any intellectual property that will need protecting
Finally, you should include your vision in your business plan by:
 putting down your goals, both long and short term and detailing how you intend to achieve them
 linking goals to financial targets, such as achieving a specific turnover by a set date
 reviewing your plan regularly.
Innovation vs. Invention

Innovation and invention are closely linked, but the two terms are not interchangeable.
An invention is an entirely new creation. The process of business innovation can produce an invention, but the term is
broader in scope and includes the application of an existing concept or practice in a new way, or applying new
technology to an existing product or process to improve upon it.
To better understand the difference, consider this: The telephone is an invention, but the smartphone is an innovation.
Four Types of Innovation in Business

Whether a business is in the initial stage of exploring innovation or has already gained some experience from it,
new opportunities exist across the entire growth cycle. By classifying innovation into four distinct categories, companies
can assess the opportunities that exist and how different approaches can enable them to create and capture.
50
 NDSC SHS
Incremental Innovation is the continuous improvement of existing products or services to provide more value to
an existing market. It focuses on reducing defects and incrementally improving performance with features like product
line expansions, cost reductions, and next-generation products. This type of innovation occurs in the short-term and has
low technological advancement and low market impact.
Architectural Innovation is the modification of existing solutions for an entirely new market. Architectural
innovation refers to changing the overall design of a product by putting existing components together in new ways. This
innovation occurs in the short to medium term.
Disruptive Innovation is when new technologies and products are created to serve an existing market. This type
of innovation is enabled by new technology that provides a more efficient and accessible alternative to what already
exists in the market. Businesses apply disruptive innovation to serve the evolving needs of their consumer base, creating
entirely new value streams and service offerings that did not exist before.
Radical Innovation is when an organization applies new technology to a new market. This type of innovation is
when a new product, process, or service with high technological advancement has a high market impact and completely
replaces an existing offering. This innovation occurs in the long-term.
Incremental and architectural innovations extend the relevance and life cycle of an existing business. These
innovation processes follow a formal set of predetermined steps from concept to commercialization,
whereas disruptive and radical innovations supersede existing processes to redefine industry standards. These
innovation types are characterized by several process changes along the way due to unexpected events and discoveries.
The most successful companies diversify their approach to innovation by maintaining a portfolio of various
initiatives and techniques. To gain a competitive edge, businesses should explore all four types of innovation and align
each approach with specific company goals.
You may refer in your textbook on page 161- 205 for more learnings and inputs about the topic.
Activity 2
Instruction: Open your textbook on pages 187-206; comprehend the lesson about the production/operations management.
Then answer exercise on page 207.
Quiz
Instruction: Answer the following questions being asked.
1. Describe some guidelines on how to choose right machine and equipment for your business.
2. Explain how you will ensure quality control in the business.
Activity 3 Let’s Perform

Instruction:
Select an item that you frequently use: your mobile, ball pen or pencil, hair brush, alarm clock, eyeglasses,
etc. Study the product and its packaging. Consider also the manner on how you are using the product.
Identify and describe in detail on how would you innovate this product so it will satisfy your needs and
51
 NDSC SHS
wants better.
END OF THE LESSON
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 NDSC SHS

Grade XI Academic Track

NOTRE DAME OF SALAMAN COLLEGE, INC.

ENHANCED STUDENT SELF-DIRECTED

(Senior High School-Grade XI Academic Strands)

Lesson Title You’ll learn to… Estimated

 distinguish between and

Lesson 3 The Writing Process 4 weeks

The Writing Process  distinguish between and among 4 weeks

Lesson 4 Writing Outlines organizing information

Pre -Assessment (Self-assessment and NOT to be submitted)

through the optic nerves. T

ENHANCED STUDENT SELF-DIRECTED

TOPIC/LESSON: Reading Process Quarter 1 (Week 1-2)

The learner critiques a chosen sample of each pattern

TIME ALLOTMENT 2 Weeks

GENERAL INSTRUCTIONS FOR THE FOLLOWING ACTIVITIES:

UNIT 1: THE READING PROCESS

The Reading Process

C. DISCUSSION: Answer the following questions on a short bond paper.

During-Reading Strategies A. Using Context Clues

Activity 2: (to be submitted)

Quiz 1: Coverage Week 1-2 Lessons (to be submitted)

“A reader lives a thousand lives before he dies…..

ENHANCED STUDENT SELF-DIRECTED

TOPIC/LESSON: Reading Process Quarter 1 (Week 3-4)

GENERAL INSTRUCTIONS FOR THE FOLLOWING ACTIVITIES:

TOPIC: EVALUATING WRITTEN TEXTS BY ANALYZING CLAIMS

 Critical reading is an active and reactive process.

 Critical reading is the foundation of good writing.

Warm-Up (NOT to be submitted)

STUDY: Read the context found on your textbook on pages 17-39.

Critical Reading A. Defining Critical Reading

A. Keeping a reading Journal

Critical Reading as Reasoning B. Formulating Counterclaims

Activity 1: (to be submitted)

Quiz 2: Coverage Week 3-4 Lessons (to be submitted)

Test II. Identification:

understanding about the given text.

Pre -Assessment (Self-assessment and NOT to be submitted)

ENHANCED STUDENT SELF-DIRECTED

Grade XII Academic Track

TOPIC/LESSON: Introduction to Entrepreneurship Quarter 1

GENERAL INSTRUCTIONS FOR THE FOLLOWING ACTIVITIES:

economy the best possible through entrepreneurship. Hong Kong

Test IV. Short Paragraph: In your own words, what is Entrepreneurship?

Prepared by: Ma’am Blanca

ENHANCED STUDENT SELF-DIRECTED

TOPIC/LESSON: Developing a Business Plan Quarter 1 (Week 3-4)

COMPETENCIES  recognize a potential market

GENERAL INSTRUCTIONS FOR THE FOLLOWING ACTIVITIES:

Week 3-4: Topic/Lesson: Developing a Business Plan

Get a dictionary and look for the meaning of each word.

THE BUSINESS PLAN

VI. FINANCIAL PLAN

WHAT IS A BUSINESS PLAN FOR?

CONTENTS OF THE BUSINESS PLAN

The Business Proponents

1. Resource mobilizers and financial backers

THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION

PRODUCTS/SERVICE OFFERING: DESCRIPTION, EVOLUTION, AND JUSTIFICATION

ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM