12

Accountancy Business and

Management (ABM)
ENTREPRENEURSHIP
Quarter 2 – Module 3
Management & Business Model
ABM 12 – Entrepreneurship
Alternative Delivery Mode
Quarter 2 – Module 3: Management & Business Model
First Edition, 2020

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 What I Need to Know
This module was designed and prepared for you. It is here to help you to know
more about business. The objectives of each lesson will serve as your gauge as to the
knowledge you will hone upon completing this module. Pre-assessment and post-
assessment are included which deal with the topics that are covered. It will measure of
how well you have learned the module.

This module was aligned with the DepEd Senior High School curriculum.
The module has one lesson namely:
Lesson 1 – Management
Lesson 2 – Business Model

After going through this module, you are expected to:

1. Recruit qualified people for one’s business enterprise;
2. Develop the business model;

What I Know
Choose the letter of the best answer. Write the chosen letter on a sheet of paper.

1. What is this process that reaching organizational goals by working with and through
people and other organizational resources?
a. Man
b. Management
c. Method
d. Money

2. These are the different characteristics of management, except?

a. deliver the goods and services
b. involves on reaching organizational goals
c. process of continuing related activities
d. working with people

3. The practice of modern management originates from what century?

a. 12th century
b. 14th century
c. 15th century
d. 16th century

4. Who conducted the modern management?

a. Howard Stevens
b. Jeff Cox
c. Peter Drucker
d. Thomas More

5. It is to create a mechanism to put plans into action and people within the
organization are given work assignments that contribute to the company’s goals.
What management function is this?
a. Controlling
b. Influencing

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 c. Organizing
d. Planning

6. What is this management function that follows the role played by the manager in an
on-going process?
a. Controlling
b. Influencing
c. Organizing
d. Planning

7. It involves choosing tasks that must be performed to attain organizational goals and
outlining how the tasks must be performed. What is it?
a. Controlling
b. Influencing
c. Organizing
d. Planning

8. What management function is this that purpose is to increase productivity?

a. Controlling
b. Influencing
c. Organizing
d. Planning

9. What is this strategic management and entrepreneurial tool that allows to describe,
design, challenge, invent, and pivot the business?
a. Business Management
b. Business Model
c. Business Plan
d. Business Strategies

10. Theseare the process on how to create great business models, except?
a.Create this alone and look for alternatives
b.Sketch out your business model
c.Start with the customer
d. Think of all the components

Lesson

1 Management

Management is often included as a factor of production along with‚ machines,

materials, and money. According to the management guru Peter Drucker (1909-2005),
the basic task of management includes both marketing and innovation. Practice of
modern management originates from the 16th century study of low-efficiency and
failures of certain enterprises, conducted by the English statesman Sir Thomas More
(1478-1535).

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 What’s In

Activity: (Use separate sheet of paper.)

1. “Not all leaders are managers, but all effective managers have to be good leaders.”
Can you give your own opinion about this saying?

What’s New

Management is the process of reaching organizational goals by working with and

through people and other organizational resources.

Three (3) characteristics of management: 1. It is a process or series of continuing and

related activities. 2. It involves and concentrates on reaching organizational goals. 3. It
reaches these goals by working with and through people and other organizational
resources

What is It
MANAGEMENT FUNCTIONS:

The four (4) basic management functions that make up the management process are
described in the following sections:

1. PLANNING
Planning involves choosing tasks that must be performed to attain organizational
goals, outlining how the tasks must be performed, and indicating when they should be
performed. Planning activity focuses on attaining goals. Managers outline exactly what
organizations should do to be successful. Planning is concerned with the success of the
organization in the short term as well as in the long term.

2. ORGANIZING
Organizing can be thought of as assigning the tasks developed in the planning
stages, to various individuals or groups within the organization. Organizing is to create
a mechanism to put plans into action People within the organization are given work
assignments that contribute to the company’s goals. Tasks are organized so that the
output of each individual contributes to the success of departments, which, in turn,
contributes to the success of divisions, which ultimately contributes to the success of
the organization.

3. INFLUENCING
Influencing is also referred to as motivating, leading or directing. Influencing can
be defined as guiding the activities of organization members in the direction that helps
the organization move towards the fulfilment of the goals. The purpose of influencing is
to increase productivity.

4. CONTROLLING
Controlling is the following roles played by the manager: 1. Gather information
that measures performance 2. Compare present performance to pre-established

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performance norms. 3. Determine the next action plan and modifications for meeting
the desired performance parameters. Controlling is an on-going process.

LEADER VERSUS MANAGERS

There is an overlap in the roles they plan in an organization. While the leader embodies
the vision, which inspired people to move, the manager has the right of authority and
structure to move resources towards organizational goals.

MANAGER LEADER
• Chart a course providing direction
• Planning and Budgeting
• Provides guidance and counsel
• Organizing and staffing
• People follow their example
• Follows orders
• Motivates and inspires
• Controlling and solves problems
• Creates an environment for change
• Maintains control and order
• Builds relationships and trust
• Protects status quo
• Trains and teaches
• Writes memorandums
• Questions rules and regulations
• Follows rules and regulations
• Strategic orientation
• Technical orientation

Lesson

2 Business Model

The Business Model Canvas is a strategic management and entrepreneurial tool.

It allows you to describe, design, challenge, invent, and pivot your business model.

It allows you to describe, design, challenge, invent, and pivot your business
model.

What’s In
Activity: (Use separate sheet of paper.)

1. From your ongoing business plan making, what would be your business model?
Please explain briefly.

What’s New
Building Blocks of Business Model Canvass

Pillar Business Model Block

The Product Value Proposition
The Customer Customer Segment

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 Distribution Channel
Customer Relationship
Infrastructure Management Key Resources
Key Activities
Key Partnerships
Financial Aspects Revenue Streams
Cost Structure

What is It
BUSINESS MODEL CANVAS

1. Customer Segment
• Who do you help? Who are you creating value for? Who are the customers that
you wish to reach and serve? Who are your most important customers?
• Identify customer needs and desired and segment the market
• Most common market segmentation techniques of users with common needs:
- By geography
- By demographics (age, sex, income, occupation, etc)
- By personality, lifestyle, social class, interests
- By behavior – how they use the product, brand loyalty, etc - etc
2. VALUE PROPOSITION
• The product/service that is useful for your customer segments.
• Answers the question: what value do I deliver? Which problems or needs are we
solving/satisfying?
• Value is what the customer gets for what he gives, but can be influenced by
performance, customization, design, brand/status and price.
3. Distribution Channels
• Through which Channels do our Customer Segments want to be reached?
• How are our Channels integrated?
• Which ones work best?
CHANNEL TYPES
Owned Direct Sales force
Web sales
Indirect Owned store
Partner Partner stores
Wholesaler

4. Customer Relationships (How will you interact?)

• Customer Segments expect us to establish and maintain with them?
• Which ones have we established?
• How are they integrated with the rest of our business model?
• Chose the relationship type, based on your customer segment.
• Types of relationships: Personal assistance, dedicated personal assistance, self-
service, automated services, co-creation and communities.

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 5. Revenue Stream
• For what value are our customers really willing to pay?
• For what do they currently pay?
• How are they currently paying?
• How would they prefer to pay?
• How will your business make money?
6. Key Producers
• What key resources do our Value Proposition require?
• Our distribution channels. Customer Relationships?
• Revenue Streams?
• What resources do I need for my business to function?
• Types of key resources: Physical: buildings, machines; Intellectual: brands,
patents, copyrights, customer database; Human; Financial.
7. KEY ACTIVITIES
• What Key Activities do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue streams?
• What key activities does our business require in order to function?
• E.g. production, design, finding solutions, etc
8. KEY PARTNERS
• Who are our Key Partners?
• Who are our key suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?
• What suppliers and partners does my business need to work?
• Why should you do a partnership? To obtain resources, economies of scale and
reduce risk
9. Cost Structure
• What are the most important costs inherent in our business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
• Is your business more: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing); Value Driven
(focused on value creation, premium value proposition) sample characteristics;
Fixed Costs (salaries, rents, utilities); Variable costs
• Types of costs: Fixed cost: rent; Variable costs: energy, fuel, groceries
(restaurants); Economies of scale: decrease with volume; Economies of scope:
diversity leads to lower costs.

How to create great business models? The Process.

Before you start burning cash, make sure you got the right Business Model!
1. Start with the customer – your insight, idea, hidden need, etc

2. Think of all the components of the business model

3. Sketch out your business model by using the canvas and see how everything
links together

4. Co-create with other people, brainstorm, look for alternatives and improve your
model 5. Your BM is just a hypothesis, TEST IT WITH CLIENTS!

6. Reiterate on their feedback until you are able to sell a minimum viable product
(ideally).

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 What’s More
Activity: Please answer on a separate sheet of paper.

1. Create a business model of your chosen business from your business plan. Follow
the process on how to create great business model.

What I Have Learned

Management is often included as a factor of (1) ____________ along with‚ machines,
materials, and money. According to the management guru (2) _____________ (1909-
2005), the basic task of management includes both marketing and (3)____________.
Practice of modern management originates from the 16th century study of low-efficiency
and failures of certain enterprises, conducted by the English statesman Sir Thomas
More (1478-1535).

The Business Model Canvas is a (4) _____________ management and

entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your
business (5) ____________.

What I Can Do
Direction: Write your answer on a separate sheet of paper.

1. Make an explanation about your chosen distribution channels in your business

plan. Please elaborate your answer.

Assessment
Choose the letter of the best answer. Write the letter on a separate sheet of paper.

1. It is to create a mechanism to put plans into action and people within the
organization are given work assignments that contribute to the company’s goals.
What management function is this?
a. Controlling
b. Influencing
c. Organizing
d. Planning

2. Who conducted the modern management?

a. Howard Stevens
b. Jeff Cox
c. Peter Drucker
d. Thomas More

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3. What is this strategic management and entrepreneurial tool that allows to describe,
design, challenge, invent, and pivot the business?
a. Business Management
b. Business Model
c. Business Plan
d. Business Strategies

4. It involves choosing tasks that must be performed to attain organizational goals and
outlining how the tasks must be performed. What is it?
a. Controlling
b. Influencing
c. Organizing
d. Planning

5. The practice of modern management originates from what century?

a. 12th century
b. 14th century
c. 15th century
d. 16th century

6. These are the different characteristics of management, except?

a. deliver the goods and services
b. involves on reaching organizational goals
c. process of continuing related activities
d. working with people

7. What is this process that reaching organizational goals by working with and through
people and other organizational resources?
a. Man
b. Management
c. Method
d. Money

8. What management function is this that purpose is to increase productivity?

a. Controlling
b. Influencing
c. Organizing
d. Planning

9. These are the process on how to create great business models, except?
a. Create this alone and look for alternatives
b. Sketch out your business model
c. Start with the customer
d. Think of all the components

10. What is this management function that follows the role played by the manager in an
on-going process?
a. Controlling
b. Influencing
c. Organizing
d. Planning