LECTURE#1 -WEEK #1

LECTURE#2 WEEK #2
Learning competencies BUSINESS PLAN
Discuss the relevance of the course. Define a business plan.
Explore job opportunities for Entrepreneurship as a Identify key elements of a business plan.
career. Identify the different parts of a business plan.
Identify the different kinds of business plan.
ENTREPRENEUR Write a sample business plan.
is a science of converting processed ideas into a
remarkable PLANNING
Business venture. is very crucial in business because it will keep you
An entrepreneur is one who bears uncertainty, buys labor from trouble in the future.
and materials, and sells products at uncertain prices. BUSINESS PLAN
(Catillon) >The blueprint of individuals, organizations or groups
who would like to engage in business.
IMPORTANCE OF ENTREPRENEURSHIP >Guide in carrying out the business ideas and ensure
1.Entrepreneurship is very important to our economy as that the activities are aligned to the business purpose.
key driver. PURPOSE OF BUSINESS PLAN
2.Entrepreneurship education is in individual lifelong learning  presents a general
process picture of the enterprise.
3. Entrepreneurship will energize school management. >Serves as guide in business policy formulation.
4. Entrepreneurship will transform learners to be innovators >Provides guidance for investment decisions and
capital expenditures.
LECTURE #1 (#2) >Need of start-up capital
The Starting Point to Entrepreneurial Success >Readily made resources that can be sold to your
1. Start to be on your own market
2. Explore the Business >Serves as guide in the implementation of the plan for
3. Be on Control Environment business including marketing, production,
4. Have a Good Accountant or a Trusted Financial Adviser organizational, and financial aspects.
5. Seek the advice of Professionals >Serves as selling tool for encouraging investment and
financing.
JOBS OPPORTUNITIES LECTURE#2 (page2)
A. Employment is One Great factor in Economic Development. PARTS OF BUSINESS PLAN
The entrepreneur provides the necessary work for people that A. Executive Summary
propel the economic development of the nation. B. Introduction
B. Income Opportunity in the Countryside is Still Subsistence C. Product or Service Description
in Nature. D. Industry Analysis
Agricultural productivity will minimize internal migration E. Market Analysis
to urban centers. This could be an entrepreneurial venture in the F. Marketing Plan
economic development of the countryside. G. Production or Operational Plan
H. Organizational Plan
LECTURE #1 (#3) I. Financial Plan
How to be a Successful Entrepreneur? J. Appendices
The entrepreneur is Alert to Opportunities and Perceptive
to Make Things Happen
LECTURE#2 (page3)
The Entrepreneur has the Health and Endurance to Work Long
EXECUTIVE SUMMARY
Hours
 a brief description of each part of the business
The Entrepreneur is Flexible and Adapts to Change
plan
The Entrepreneur is Self-Assured
 a whole picture of the proposed business
The Entrepreneur Seek Other’s Opinion or Make Research
 The doorway to your business plan
 The overview of the business
Financial Manager FINANCE
 must be clear enough to catch the interest of a
Marketing Manager PROMOTION
potential venture capitalist or an interested
Production Manager PRODUCTS
individual who will finance the business
Sales Manager SALES
Store Manager OPERATIONS
HOW TO WRITE AN EXECUTIVE SUMMARY
>First paragraph Week# 3 page#2
Include your business name, location, product or service, and Tips in Identifying Market Problem
the purpose. 1. Focus only on innovation and the competition
>Next paragraph 2. Focus only on customers
Highlight important points such as projected sales and profits, 3. Focus on revenue
unit sales, profitability, and keys to success. Include graphs of Problem-Identification Research
sales, gross margin and profits for the next 3 years.
>Problem identification requires the use of an
LECTURE#2 (page3)
INTRODUCTION
appropriate measure
 covers the compelling reason for selecting a of assessment tool to determine whether a problem
particular project being proposed exists..
 Directs the reader to the main contents of the Week# 3 page#3
business plan Problem-Identification Research
Includes: 1.Brand Image is the feeling and impression in the
 BUSINESS CONCEPT consumers’ interpretation of the company,its
 BUSINESS GOAL product and services. It developed over time
Vision through advertising campaigns with consistent
Mission ideas, this is authenticated through the consumers’
 Ideas
direct experience.
 Rationale for the business
 Problems being addressed
Problem-Identification Research
 Value proposition Brand Image makes the product stand out
 Potential benefits from competitors.
 Business concept Ex: coke – happiness nike- (swoosh logo)
 Available opportunity smooth motion and speed
 Type of industry mcdo- love ko ‘to
 Target market 2.Market Characteristics describe attributes of the
 Key people involved buyers in making decision connected in purchasing a
certain product.
WEEK #3 Ex: types of goods exchanged,participants
LECTURE #3 WEEK#3
and the rules surrounding the exchange
OBJECTIVES:
3.Market Potential is the estimated maximum total
1. define a market and its importance,
sales revenue of all supplies of a product in a market
2. recognize a potential market and analyze the
throughout a certain period.Ex:speed bikes’ market
market needs..
potential may be over 500Mphp each year.
Market refers to the group of consumers or
4.Market Share is a portion of total sales volume in
organization that is interested in the product , has the
a market captured by a brand, product or company.
resources to purchase the product and permitted by
Ex: if a consumers buy 100soaps, and 40 of which is
law and other regulations to acquire the product.
from a certain company,that company holds 40% of
Market problems are your market’s stated or silent
market share.
problems . This could refer to existing inefficiencies,
Week # 3 page #4
awkward workflows or non-optional solutions.The key
Problem-Solving Research
to finding a market problem is to listen to frustration or
1.Distribution Research - determining on how to
“if-only” statements of the market
transfer the product from the manufacturer to
Identifying the Market Problem
ultimate user.
In identifying the market problem, the following can be
Examples of distribution are retail, wholesale,
considered:
personal selling , direct marketing, e commerce
Existing customers
2.Market Segmentation - grouping customers by
Target market
similar characteristics or similar purchase behaviors.
Prospects
3.Pricing Research – determining the ideal price for
Existing customers are the people who have already
the product. Setting the price for the product is one
purchased the product you are selling.
of the most important marketing steps.
Target market users are the people in your market a
4.Product Research - testing the new or revised
company wants to sell its product and services to.
products or completing test marketing.
Prospects are the people who have not yet purchased
5.Promotional Research – determining the best
your product but have an intention to buy.
research in the area of disseminating information.
WEEK #4 page #1
“Possible Product/s, or Service/s that will Meet the Need”
 Entrepreneurs must have a full knowledge as to
what products are needed in the society.
 The product will be for the satisfaction of the group
of the target market. It must be specific, identified
from the others, and easily be recognized.
 An entrepreneur must conduct market research to
determine better the needs and wants of the target
market.
Product Description Necessities
1. Cite the uniqueness of product over other existing
products in terms of characteristics, variations and
the like.
2. Use layman’s term in describing the firm’s product
or service.
3. 3. Illustrate the usefulness of the product/service.
4. 4. Present the nature including the content of raw
materials that will be used in the proposed product
and its source.
WEEK #4 page #2
THREE PRODUCTS LEVEL
The Three Product Levels model by Philip Kotler provides a
way to understand the different levels of need a customer
has for a product.
>It is worth nothing that, according to Kotler, the definition
of a product goes far beyond offering a simple product or
service. It includes anything that can be offered to the
market place to:
 Capture attention.
 Acquire customers
 Satisfy a need or want
Kotler outlined three Ways that customers attach value to a
product:
1. Need
2. Want
3. Demand
WEEK #5 page #1
Viability, Profitability and Customer Requirement
A.Describe viability, profitability and customer requirements;
B. Recognize the important factors in determining viability,
profitability and customer requirements;
C. Analyze if proposed solutions is viable, profitable and fits the
customer requirements.
VIABILITY
is defined as the ability to survive or persist; the quality
of being able to happen or having a reasonable chance of success.
Business Viability
means that a business is (or has the potential to be )
successful.
A viable business I profitable, which means it has more revenue
coming in that it’s spending on the cost of running the business.
The entrepreneur’s desire to establish his business is a visible idea
yet it must come into a test whether it is a viable business option.
It needs a careful analysis of opportunity evaluation.
The Entrepreneur should look deeper into the following
Areas based on Viability:
Management must be able to set the direction of the enterprise
with a clear Mission and Vision as the guiding tool for its plans
and programs.
PROFITABILITY
They must give emphasis on the technical and manpower
complements.
They must introduce new technology to make work easier for the
working team.
is a measure of an organization’s profit relative to its expense.
is a business‘ ability to gain profit from its business activities and
investment
WEEK #5 page #2
Areas on Profitability
Savings and wise investments are characteristics of successful
business entrepreneurs.
Sources of funds: Savings, Assets, Banks, Partnership & Stock
option.
Payback period refers to the allotted time, usually number of
years that an investment is recovered.
- it is the length of time an investment reaches a break-
even point.
Payback Period=( Initial Investment/Capital) DIVIDED (Profit)
COSTUMER REQUIREMENTS
refer to the specifications or features of a product or service that
are deemed necessary by customers.
Three Levels of Customer Requirements:
1. Must Have - These are the bare minimum requirements
expected by the customers; if fulfilled customers will be not show
any exceptional appreciation but if not fulfilled, the customer will
show dissatisfaction.
2. Satisfiers - There are the requirements that customers express
their desire for, explicitly.
3. Delighters - These are the extras or the add-ons.
The Entrepreneur should look deeper into the following
Areas on Customer Requirement:
The marketing program needs demand analysis. The
demographic profile of the customer must be taken into account
as the success of the product depends on the target customer.
Marketing research will determine the true picture of the
market demand and the product competitors.
WEEK #5 page #3
PRODUCTIVITY
Is a measure of economic performance that compares the
amount of goods and services produced (output) with he
amount of input used to produce the goods and service.
The Entrepreneur should look deeper into the following
Areas on Productivity:
Product specifications must be maintained according to product
standards that are acceptable to customers-Quality.
Production schedule must be made together with product
specifications.
Work schedules must be followed to save time and energy.
Inventory reports must be available. and warehousing activities
are supervised accordingly
WEEK #6 page 1
Entrepreneurship
Best Product for Market Need
Objectives
- presents the significance of entrepreneurial ideas as a founda-
tion for understanding of concepts, underlying principles, and
processes of developing a business plan.
- introduces you to independently or with your classmates
presents ac-ceptable detailed business plan.
- to recognize a potential market and select the best product or
service that will meet the market needs.
Tips in Choosing the Business Name
1. Easy to recall or remember - the business name must be
understandable so it is easily stored or recalled in the memory.
2. Pleasant Meaning Creates Pleasant Feelings - it produces
positive or favorable feeling upon saying or introducing to the
public.
3. Easy to Pronounce - the business name must be mentioned as
freely as it can be.
4. Easy to Spell - the business name must be simple or easy.
Words that are used in everyday communication will be an
advantage.
5. Related to the Product - the business name must describe or
relate the product. It represents the features of the product.
WEEK #6 page 2
Product Life Cycle
The Product Life Cycle concept describes and relates the product’s
sales, profits, customers, competitors, and marketing emphasis
from its beginning until it is removed or pull out from the market.
The new product planning process involves a series of steps:
1. Idea Generation - searching and looking for new product or
business opportunities. The employees, channel members,
competitors, and customers can be good source.
2. Idea Screening - ideas which are not suitable, not attractive, or
poor are junked. Ideas together with characteristics are rated on
the basis of a rating from 1-10.
5. Product Development - ideas are transformed into tangible
form.
5. Product Development - ideas are transformed into tangible
form.
6. Test Marketing - requires a selling of a fully developed product
in a selected city and observing the actual or on the spot
performance under the chosen marketing plan.
7. Commercialization - this involves the real/actual marketing of
the product in the tar-get market. The different activities to
introduce the product to the market must be present-ed.
WEEK #6 page 2
II. Introduction
A new product is introduced into the marketplace and the
objective is to generate consumer interest. The rate of sales
growth depends on the attractiveness of the product,
competition is limited or selected, losses are experienced
because of high production and marketing costs. Initial and on-
the-spot customers are called innovators who are willing to take
risk because the product is new in the market. Promotions must
be informative and free samples may be desirable.(see Entrep
p.34)
III. Growth
The product acquires wider consumer acceptance and the
objective are to expand distribution and the range of available
product alternatives. More companies enter the prof-itable and
tested market. Profits are high because the mass market buys
from a limited group of companies. Basic model are change and
chose; distribution is expanded combined with mass advertising
to meet new targets.
IV. Maturity
The product’s sales level and companies try to keep lower price,
better product fea-tures for as long as possible. Market is
saturated, penetrated and rivalry at this highest lev-el. Company
profits decline because discounting becomes well liked and high
cost in adver-tising. Products are available at most outlets at
different prices. Promotion is very competi-tive.
WEEK #7 page1
“Importance of Marketing Mix in the Development of
Marketing Strategy ”
4P’
Marketing refers to activities a company undertakes to
promote the buying or selling of a product or service. Marketing
includes advertising, selling, and delivering products to
consumers or other businesses
The Marketing Mix
The marketing mix variables are parts of the internal
environment of the company created and as such, the firm can
directly manipulate them in pursuance of a sound marketing
strategy.
4P’s –
Product - the tangible commodity or the intangible service that
the business firm offers for sale to prospective customers. It also
includes the warranties and other conditions attached to the
product.
Place - when the business firm wants to emphasize the place
variable, it makes the business company’s products available in
the location and time required by buyers.
Price - the amount of money paid by the customer to the selling
business firm so the customer can use the product. The price is
set to attract prospective customers to buy.
Product - the tangible commodity or the intangible service that
the business firm offers for sale to prospective customers. It also
includes the warranties and other conditions attached to the
product
Promotion - the provision of required information to prospective
customers so that they are persuaded to buy.
IMPORTANCE OF Marketing Mix
7P’s of Marketing Mix
The marketing mix or more popularly known as the 7Ps
of marketing is a set of controllable and inter-related variables
composed of product, place, price and promotions that the
company assembles to satisfy a target group. Note the intent,
which is to satisfy the target market. If the target market is
unclear, the marketing mix is useless.
Role of Marketing Mix Element
PRODUCT /SERVICE- to satisfy consumer needs and wants.
PRICE- to make product affordable to target consumers
PLACE- to make product available consistent with consumer’s
purchasing pattern
PROMOTION- - to build and improve consumer demand.
Promotions has four components called the Promotions Mix:
advertising, sales promotions, public relations and selling.
PHYSICAL ENVIRON MENT- to create the tangible expression of
the brand engaging the senses through the layout and images of
the services
PEOPLE- to show a living representation of the brand promise.
- PROCESS- to experience how the brand delivers value ;
how product and services gets into the customers. It
involves quality assurance and quality control.Examples
of quality assurance activities include process checklists,
process standards, process documentation and project
audit. Examples of quality control activities include
inspection, deliverable peer reviews and the software
testing process

CHAPTER 8
COMPETITION: – determining the competitors’
positioning and describe their strengths
and weaknesses.. Benchmark the competitor against
each of the key drivers of demand for the market
(price, quality, add-on services, etc.) and present the
results in a table.
Product Potentials
Direct and Indurect Competitors
SWOT Analysis
STRENGTH
WEAKNESSES
OPPORTUNITIES
THREATS