Department of Education

Region V
Division of Camarines Sur
CALABANGA NATIONAL HIGH SCHOOL
Sta. Cruz, Calabanga, Camarines Sur
S/Y 2021-2022

BUSINESS ENTERPRISE SIMULATION

LEARNERS PACKET NO. 2
KEY CONCEPTS FROM THE ABM STRAND SUBJECTS:
HOW TO START A BUSINESS AND THE BUSINESS PLAN

INTRODUCTORY CONCEPT
In this Learners Packet, you will understand the steps on how to prepare a business
and to make a business plan. This learning materials contains the: (1) steps in setting up your
own business; (2) concepts and practices for marketing, analysis, and assessment; (3)
marketing mix; (4) strategic plan, marketing plan, operating plan, and financial plan; (5) guide
in preparing business plan; and (6) sample business plan.

LEARNING COMPETENCIES
After completing this Learners Packet, the students will be able to:
➢ Prepare a strategic plan outlining the comprehensive environment and focusing
on the appropriate competition strategy (ABM_BES12-Id-j-c-5);
➢ Prepare a marketing plan that will describe the product offering, the value it
brings to the consumer, and the subsequent tactical plan on how to reach the
consumers (4Ps), and conclude with a sales forecast (ABM_BES12-Id-j-c-6);
➢ Design a operating plan to ensure that the inputs and processes required to
deliver the product or service are identified, and estimate the costs needed for
production (ABM_BES12-Id-j-c-7);
➢ Craft a financial plan, the inputs of which are from the results of marketing plan
(sales) and operations plan (operating costs), and which will define the financial
goals that will be his/her target upon eventual execution (ABM_BES12-Id-j-c-8);
and
➢ Craft a full business plan for review of mentors before actual implementation
(ABM_BES12-Id-j-c-9).

LEARNING ACTIVITIES
STEPS IN SETTING UP YOUR OWN BUSINESS
In setting up a business is a tough yet an exciting task to attend to. There are lot of
websites and books that you can rely on to guide you to establish a business. However, the
different stages to realize your goal, which is a successful business, is generally the same.
Here are the different stages:

STAGE 1: Eureka!
The “Eureka Stage” is when a business idea pop in in your mind. It might be a new
product or innovation, or a service that your community really needs. It might be a business
concept that will augment your financial capability.

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STAGE 2: Research
The next thing to do is to conduct research. The research should not only include
reading books or in internet but also you need to find out the following:
1. Market – identify the market and find out what the market thinks, needs, wants,
desires, and/or prefers. What triggers the market? What turns it on and what puts it
off?
2. Competition – are there competitors around? Is the playing field to your advantage?
3. Support – are there institutions that would be willing to provide necessary support
to get the product/service going? What institutions or regulations can affect the
business?

STAGE 3: Design Your Business Plan

The design of the business plan will be discussed in a separate lesson.
The contents of the business plan should be based on the information gathered during
the second stage – research. The business plan must include the following information:
✓ Product/service – example, know what you want your house to look like.
✓ Market and industry – know the neighborhood; Are there “big bad wolves’ in
the area?
✓ Operations – practical side of the things; Will I build a house of straw, wood, or
bricks?
✓ Finances – budget side of the things; Can I afford a house of straw, wood, or
bricks?
✓ Strategies to make it work – For example, just think of it as simply building a
house. What are my marketing strategy? How do I protect myself from the “big
bad wolf?”

STAGE 4: Execution
Execution of the business plan is the final phase. Implement in phases, and adjust as
necessary. Dream big but act conservatively. Do not hesitate to ask for the help of others, or
start all over again until the business succeed.

CONCEPTS AND PRACTICES FOR MARKETING, ANALYSIS, AND ASSESSMENT

Before going into a business, one should observe some concepts and practices for
marketing, analysis and assessment.

Research Methods. People’s opinions matter. A conversation with people is one way of
gathering information. They might give further information or insight on the issue that you
cannot see, especially when you are blinded by emotions or feelings. Information can be
gathered from the following:
➢ Actual persons with firsthand experience (example: subscribers, customers)
➢ Professionals (experts)
➢ Peers
➢ Resource materials (researches, books)
➢ Internet

Research and Strategies. To have a well-defined understanding of your current position, you
try the commonly used and effective tool which is the SWOT analysis. The SWOT (Strength,
Weaknesses, Opportunities, and Threats) Analysis is used to identify internal and external
factors that affect, or will affect the business. Strength and weaknesses are internal factors to

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an organization, or people, while opportunities and threats are external factors that are not
within the control of an organization, or people. SWOT allows the owner to identify new
markets and to prepare for perceived downturns or competitions, and is a useful tool to aid the
process of strategic planning. The key is to be able to eliminate weaknesses and threats and
to capitalize on the strengths and opportunities (Byrd et al, 2013).
Here is the general (example) format for conducting a SWOT analysis:

Strengths Weaknesses
I
N • Excellent editorial staff that produces • Too many deadlines and projects
T quality textbooks • Editorial department is understaffed
E • Excellent sales staff with numerous because of resignations and work
contacts in public schools and private
R pressure
schools
N • Effective marketing strategies • Late collection of payments from schools
A • One of the best companies in the • High rental costs
L publishing industry

Opportunities Threats
E
X • Similar textbooks of other publishing • Other companies have similar textbooks or
T houses are not as excellent and products
reliable, such textbooks are also more • Increase in cost of raw materials could
E
expensive
R affect the price of textbooks
• Loyal customers or subscribers
N • New customers because of the senior • Free electronic textbooks on the internet
A high school curriculum • Some competitors have more regional
L • High demand as next school year offices in Visayas and Mindanao
approaches

Internal factors are the organization’s or person’s resources such as financial,

material, people, product; and strategies like practices, price, promotion. Financial resources
are the amount of money that the organization or person has. Material resources are other
non-monetary items that a person or organization may use for a particular investment. This
may be the person’s own property or lot, equipment, and others.
People pertains to the persons, personalities, connections, networks, and their
respective aptitude, attributes, and attitudes. What degree did you finish? Did you get to finish
at all? What organizations or clubs are you affiliated with? Who do you rub elbows with? Are
you a part of the renowned clan or an obscure one? What are you passionate about? Who are
you?
Product maybe a tangible goods or a service provided by the business or organization.
This refers to the quality of the goods or services offered.
Practices are the things being done by the organization or the person. It can be referred
to the values, policies, processes, and procedures.
Price is the price of the goods or services produced by the organization or person.
Promotion is the strategy/ies that are in place or that the people plan to make use of
in order to further promote the organization’s or business product.
External factors relate to anything and everything in our environment that is relevant
to the organization or person. This includes but not limited to the economy, the globe, the
nation (crisis, issues, concerns), the law and government regulations, technology and trends,
competition, and others.

Research and Marketing. The marketing research is helpful at several points in the life of
your business. Before starting the business, you can use marketing research to find out
whether the location and surrounding population are right for your proposed product (Byrd et

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al, 2013). SWOT analysis can able to help you to evaluate yourself and to get a good
description of you and your business, and how others see you is even better. It helps you to
identify the strategies that you have to improve upon to make yourself more marketable. In
addition, Byrd and Megginson reiterated that “after you open the business, marketing research
can help you decide (1) whether to develop new or different product, (2) whether to expand at
the original location or open additional branches, (3) when and where to change emphasis on
activities such as channel of distribution and advertising and promotion strategy.”
A business should always move forward. There is nothing with looking back, but staying
and living in the past helps no one. Mistakes will happen. Obstacles will always be there. Move
forward to survive. Move forward to thrive.

WHAT IS PLANNING?
According to Business Dictionary, planning is a basic management function involving
formulation of one or more detailed plans to achieve optimum balance of needs or demands
with the available resources. It is a salient but tedious and repetitive task of the business to
attend to. It is an unending function of the management of the business. Planning can make
or break the business.
Byrd and Megginson pointed out that planning can achieve the following:
1. Interest moneyed people in investing in your business.
2. Guide the owners and managers in operating the business.
3. Give direction to and motivate employees.
4. Provide an environment to attract customers and prospective employees.

THE PLANNING PROCESS

The planning process in the business in an unending activity. It started with the data
gathering through internal and external assessments. Next, setting of goals and objectives,
wherein you determine what you want to do and where you want to go. Then, create strategies
on how to attain such goals and objectives with the help of taking notes of tasks and timelines.
Afterwards, is the execution and monitoring of the business plan. And assess yourself and the
business whether the plan was actually executed properly based on the goals and objectives
set.

Gather
Information

Establish
Evaluate Goals and
Objectives

Execute and Create

Monitor Strategies

The Planning Process

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 THE MARKETING MIX

The marketing mix or 4Ps are the Product, Place, Price, and Promotion. These will help
the business establishment to determine if the goods or services produced compete well in
the market. The concept of marketing mix is putting the right product in the place with the right
price at the right time.

Product Place
(goods or services) (location or distribution channels)

Price Promotion
(marketing strategy to attract (strategy to communicate your
customers) product to the market)

Product can be an actual material, goods, or a service. The product must be appealing
to the taste of the consumers. As suggested by So and Torres (2016), consider these
questions when developing a product:
1. What is the product’s function, appearance, quality, design, features, packaging,
and brand?
2. What need does it satisfy?
3. What value does it offer to its consumers?
4. What makes it unique?
5. What is its unique selling proposition?

Place is the actual location or a means to distribute the product, it may be the store
outlet, online, or brochures. This pertains to the best approach to deliver the products to the
consumers in the best and most effective manner.
Price tells about (1) knowing how much your product actually cost; (2) how your
competitors are priced, if any; and/or (3) how much people are willing to pay for it.
Promotion, similar to place, asks whether you communicate or advertise your product
face-to-face, or in real life, or reel life using other forms of media, or using other technologies.

STRATEGIC PLAN, MARKETING PLAN,

OPERATING PLAN, AND FINANCIAL PLAN

I. Strategic Plan
Assess the competitive environment and draft an appropriate competition strategy,
which include the following information:
➢ External Assessment. Identify the potential competitors by taking note of their
strengths, weaknesses, position in the market, product development,
advertising, branding, and others.
➢ Internal Assessment. Review the proposed enterprise mission, vision, core
values, and goals, and reinforce the direction you wan to take by stating them
and determining what to de to accomplish the same. Take note that the mission,
vision, and core values may have changed to correspond to the results of the
market research.

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 ➢ Identify the competition strategy of the proposed enterprise that will adapt based
on the analyses.

II. Marketing Plan

Identify the 4P’s of your enterprise:
➢ Product
• State and finalize the product offering
• Identify its functions, features, characteristics, packaging, etc.
• Identify its unique selling proposition
➢ Price – determine the price at which you would offer the goods or service by
applying the product cost estimation and the appropriate pricing strategies
➢ Place – determine the distribution channel/type you will use for your proposed
goods or service
➢ Promotion
• Draft your promotional strategy by identifying the types of media and
techniques you plan to use
• Draft an advertising/promotional campaign for the product

III. Operating Plan

The operating plan must include the following:
• Location – include information on where to set up your enterprise and other
details, such as payment for lease of property, monthly payment, and others.
• Supply and inventory – state who are your suppliers will be and how you will
manage you inventory.
• Production and distribution – describe the major stages of production, the
processes and technologies you will use, the period of time it would take to
produce and how much/how many units to produce; include also the details on
how you will go about quality control; and describe how you plan to distribute the
product.
• Operating costs – estimate the cost for each of the processes required for
operating the business.
• Organization/human resources – describe the organizational structure of your
enterprise and the duties and responsibilities of each person involved.

IV. Financial Plan

Prepare a financial plan based on the marketing and operating plans, that shows the
following:
➢ Financial goals of the business
➢ Information on how to finance putting up the business and provide the necessary
financial statements (statement of comprehensive income, statement of financial
position, cash flow statement, cash budget, and others).

WRITING YOUR BUSINESS PLAN

The basic business plan includes the following information:

Cover page
The cover page of the business plan should comprise: business plan proposal (title
heading), business or company name, address, and contact details of the company (landline,

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mobile, email address, etc.), website (if any), names of the proponents or persons involved,
date it was written or updated, and version or revision number (if any).

Table of Contents
This indicates the salient subject headings and its corresponding pages of your
business plan. You must create this once you have finished writing your business plan, or use
the table of contents generator in Microsoft Office Word (Insert + Reference + Index and
Tables + Table of Contents). Here is an example of table of contents:

Table of Contents
1.0 Executive Summary
2.0 Business Summary
3.0 Industry and Market Analysis
4.0 Product/Service Summary
5.0 Management and Organization
6.0 Strategy
7.0 Financial Information
8.0 Appendix
8.1 Attachments
8.2 Tables
8.3 Additional Data
8.4 References

Business Summary
This part provides information about the business and the people behind the business;
the information provided must be limited to professional information.

Industry and Market Analysis

This portion includes information about your industry (example, telecommunications
industry, fast food industry, retail industry, transportation industry), your target market (who
are your desired customers and why), and the existing competitors.

Product/Service Summary
This informs the reader of the business plan about the description of the product to be
offered, and possible future offerings. This include the legality, patents, and copy or intellectual
property rights, if it is a new product. However, if it is an existing product (or a franchise),
provide the franchise information and all legal features.

Management and Organization

This is where you can “show off” by expressing your expertise, and showing that the
management and organization are professional and are made up of persons with integrity and
committed to making the business flourish.

Strategy
A primer on your objectives and goals and the management strategies, such as
location, pricing, and promotion.

Financial Information

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 This contain how the business will be funded, the expected cost, and the expected
return on investment. Likewise, to sell your idea with the investor to fund or partner with the
business and what they can get out of it.

Legal Information
This is to ensure that whether or not the partnership pushes through the ideas contained
in the plan by the proponents are not used by the reviewing investors or potential partners.
Also, to protect the concept and ensure that those who have viewed it would not use it for their
own benefit.

SAMPLE BUSINESS PLAN

Please refer to the attached sheet of this Learners Packet for the example of the the
business plan. Or you may refer to the link provided below for the softcopy of the said sample
business plan from the Dublin City Local Enterprise Office:
https://www.localenterprise.ie/DublinCity/Publications-Resources/Sample-Business-Plans.

Now, try the following learning activities!

LEARNING ACTIVITIES 1
Instructions: In five (5) to eight (8) sentences, answer the following questions.
Write your answers on tablet papers. (Five points each)
1. What is your Eureka moment? Please share it with me.
2. What is the importance of researching before starting a business?
3. What are the factors that you should research about before you start or invest in a
business?
4. Does research guarantee that a business would success? Why or why not?
5. What do you think is the most important planning phase? Explain.

LEARNING ACTIVITIES 2
Instructions: Suppose you are about to prepare a proposal for a potential business
that you would like to set up, please provide the following information. Write your
answers on tablet papers.
1. Proposed enterprise (name, nature, etc.)
2. Rationale (the basis for selecting or identifying the product)
3. Mission (what is the proposed enterprise mission? Prepare a mission statement.
4. Market (What sets your product or enterprise apart from the rest of the market
players? Who are the potential users/consumers/market of your product?)
5. Operations (What technology, procedures, and activities would producing/performing
your product entail?)
6. Financials (What possible financial allocations would be necessary to perform each
process in your operations? Would the cost of production still allow for profit? How?)

LEARNING ACTIVITIES 3
Instructions: PICTURE OUT YOUR BUSINESS. Create a business plan for your chosen
business. Focus on the parts of the business plan listed below.

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 ➢ Executive Summary
➢ Company/Business Description
➢ Marketing Analysis
➢ Marketing/Sales Strategy
➢ Staffing and Operations
➢ Financial Projection
➢ Funding Requirements
➢ Summary and Conclusion

NOTE: Prepare in Microsoft Office Word file. Margin: left – 1.5 inches, right/top/bottom
– 1 inch; Font style: Arial; Font size: 10. Paper size – A4. Kindly submit directly to your
subject teacher through FB Messenger and/or email account using this file format: BES-
2022-BP-(YOUR LAST, GIVEN NAME).

REFLECTION
Answer the questions below. Write your answers on tablet paper.
1. What is/are the importance of your proposed business enterprise in your
community?

Congratulations, you did it! Now, you are ready for the next
learning activity. Great job! 😊

REFERENCES

No Author’s Name (2020). Business Enterprise Simulation. Vibal Group, Inc. (Adopted)

Sample Business Plan. Dublin City Local Enterprise Office. Retrieved on April 17, 2022 from
https://www.localenterprise.ie/DublinCity/Publications-Resources/Sample-Business-
Plans.

Prepared by: ROSALINDA S. ALTEZA/Subject Teacher

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