Grade

12 Self-Learning Module in ENTREPRENEURSHIP

Implement the business plan. Select potential suppliers of raw
materials and other inputs necessary for the production of the
Lesson: product or service. Discuss the value/supply chain in relation to the
business enterprise. Recruit qualified people for one’s business
enterprise.
Quarter: IV Week: 4&5 Day and Time: See Class program

Learning competency/ies:
• Implement the business plan. (CS_EP11/128-ENTREP-IVa-I-1)
• Select/pinpoint potential suppliers of raw materials and other inputs necessary for
the production of the product or service;
• Discuss the value/supply chain in relation to the business enterprise;
• Recruit qualified people for one’s business enterprise.
Learning Tasks:
Study Notebook Activity Sheet
✓ Pre-Test, p.1 ✓ Activity 1-3 pp.7-8
✓ Post-test p.6
I. INTRODUCTION
After thoroughly studying business or entrepreneurial opportunities, the most important thing to do
next is to decide immediately to implement the business plan. This module will help you how to implement
your business enterprise in a step by step procedure.
Businesses focus on performance that is why companies have to look the right supplier, just as they
have to look the right employees. The interconnectedness of every element needs to play an appropriate role to
have a successful supply chain.
In the previous lesson, you have discussed the basic understanding on how to validate the service
description of the product, which is essential to ensure, that suppliers are providing the highest quality product
and services.

II. PRE-TEST
Direction: Choose your answer from the given choices. Write the letter only.
1. What do you call a written report outlining your business strategy and a description of the future of your
business?
A. Operational Plan B. Financial Plan C. Business Plan D. Strategic Plan
2. Every business entity should have a guiding principle for it to succeed and prosper. It constitutes the purposes
of the owner other than making profit. What is this?
A. Catalogue B. Brochure C. Perspective D. Mission and Vision
3. What form of business is the simplest and easiest one?
A. Corporation B. Joint Venture C. Sole Proprietorship D. Limited Partnership
4. The Filipino Foundation was established for the purpose of helping distressed OFWs. What type of a
corporation is this?
A. Non-Stock Corporation / Non-Profit Corporation C. Close Corporation
B. Stock Corporation D. Corporation Sole
5. To establish an enterprise, the owner must consider existing local laws and must obtain a permit from the
municipality where he will do his business. What kind of permit is this?
A. License to operate B. Driver’s permit C. Mayor’s permit D. Barangay permit

III. DISCUSSION OF CONCEPTS

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 A thoroughly crafted business plan as in all other plans needs to be implemented so that all the concepts
contained therein become a reality. Implementation is an act of executing a plan or policy. As an entrepreneur,
you should convey clear objectives and priorities in order to execute a strategy as well as providing the required
resources to help your business achieve its goals. The goal of the business should be aligned with its mission,
vision and values. These are like guiding stars that will lead you to the success of your business enterprise.
There are three types of businesses in the country: sole proprietorship, partnerships, and corporations.
∙ Sole Proprietorship: The simplest and most basic type of business organization. An individual may establish
his own business and is referred to as a sole proprietor. He may enjoy all the profits gained by his business but
he is also the lone absorber of risks and losses.
∙ Partnership: This requires two or more persons who plan to contribute assets with the goal of sharing income
between all parties involved.
∙ Corporation: A corporation is the most complex type of business formed by at least five to fifteen
incorporators. Majority of these incorporators must be Filipino citizens. A corporation may raise a capital or
additional funding through public offering of shares of stocks.
The degree or level of easiness or difficulty of starting a business depends on the type of business you
will undertake. The easiest of these is of course, single proprietorship. Successful entrepreneurs started with this
type of business because it is simple to operate and easy to manage.

The following are the steps on how to register a single proprietorship business:
1. Business Name Registration at the Department of Trade and Industry (DTI)
Just like when you were born, your parents have chosen the best name for you. A name sets an identity
of your business and it can become a household name. After you have decided what name you will use for your
business, you need to search the website of the Department of Trade and Industry if the name you have chosen
is unique or has been taken by other entrepreneurs. If it is available, obtain a business name application form
and fill it up then submit it to the nearest DTI office. After processing your application, DTI will issue a business
registration certificate.
2. Obtain a Barangay Permit
It is but important to go to the Barangay where your business is located and apply for a barangay permit
allowing you to operate within the jurisdiction of the barangay. You will be needing a copy of your DTI
Certificate of Business Registration, valid IDs (at least 2), and a barangay clearance.
3. Secure Mayor’s Permit
The Mayor’s Permit is one of the most important documents you will ever need to operate your business.
Once you have obtained a DTI and Barangay certifications, the next step you will do is to register your business
at the office of the municipal or city mayor. The previously mentioned certificates will be attached to the
Mayor’s Permit application form alongside with two valid identification cards.
4. Bureau of Internal Revenue (BIR) Registration
As a law-abiding citizen entrepreneur, you need to register your business with the BIR. By doing so,
you will be able to become part of the development of the country through the taxes from the income of your
business.
You may visit the revenue district office covering your business location. Obtain and fill out a BIR
form 1901, which is the valid form for registering single proprietorship business. You will also need to submit
the DTI Certificate of Registration, Barangay Clearance, Mayor’s Permit, Community Tax Certificate, and valid
identification cards. You are then required to pay a registration fee and register your book of accounts as well
as invoices and receipts to be used in the operation of your business. After going through all the process, you
will then receive your certificate of registration or the BIR form 2303. By doing this, you can become part of
building the nation through the equitable taxes that you will pay out of the income of your business.
Other clearances that must be obtained prior to obtaining the above certificates include a) fire safety
clearance, b) electrical inspection certificate, c) occupancy certificate, d) lease contract (if the space is rented),
and e) locational clearance.
These steps are also being undertaken for partnerships and corporations. However, they vary on the
requirements needed and additional agencies to be approached for other permits and licenses such as the
Securities and Exchange Commission (SEC).
Before finally starting and operating your business, make sure you have acquired all additional
clearances, licenses or permits needed. You must also be stand ready to register with the SSS, Philhealth and
Pag-ibig Fund as these may greatly benefit your employees. After completing all the above steps, it is advisable
that you spend time focusing on formulating your operational and strategic plan for the sustainable growth of
your business.
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 Owning a business is both a prestige and honor. You can also become part of the community’s economy
by creating jobs for the locals.

Organizational Structure
When documentary requirements and certifications were already obtained and have effectively recruited
enough number of employees of your business, it is also important to create an organizational chart. Employees
should have a good character and competence to help you accomplish the goal of your business. An
organizational structure is a framework that specifies the course of certain activities in order to achieve an
organization's goals. It also clearly depicts up to what extent are the duties and responsibilities of every
individual in the organization.
The following are some the importance of having an organizational chart even for a startup business like yours:
a. It is a single picture of the whole organization of the business
b. It defines the job of each employee
c. It sustains the efficiency and performance
d. It boosts confidence among employees

Three of the most popular organizational structures are:

A. Line Organizational Structure
Also referred to as the hierarchal organizational chart and the most common organizational structure
due to its plainness and simplicity. The top of the chart features the owner or owners, the managers of the
different departments. The line of information is of vertical orientation and it does not allow collaboration
between teams of other department.
B. Functional Organization Structure
This type of structure offers more lines of communication and the flow of information can be both
vertical and horizontal. It allows collaboration among teams and individuals.
C. Line and Staff Organization Structure
This organizational structure is widely adopted by large companies. Staffs are considered as specialists
who provide advice, opinions, technical information to every department.

Potential Suppliers of Raw Materials

Selecting the right suppliers is essential for building a successful business. By employing some
supplier's selection criteria, it is possible to identify enterprises who are reliable and meet your particular needs.
Here are some factors to consider in selecting potential suppliers of raw materials and other inputs:
1. Price. If you focused on managing your finances, a main consideration for selecting suppliers is affordability
yet possesses a good quality product.
2. Reliability. Developing a closer relationship with a reliable supplier means getting quality, timeliness,
innovation and competitiveness, which are all assets in continuously receive throughout the supply chain
relationship.
3. Stability. Look for qualified suppliers who have been in business for a long time. Stability is important, when
entering into a long-term contract with a supplier. Conduct performance reviews on their credit history to see if
they are financially stable. It requires also in finding out what businesses use a specific supplier's services and
asking them for a reference.
4. Location. Consider about location when selecting suppliers. Dealing with distant suppliers might provide
you a longer delivery time and extra load costs. If you need it fast, a local supplier might be a better option. Be
sure to check on the freight policies of distant suppliers. For instance, bulk orders might get a free shipping or
you might combine different orders to reduce costs.
5. Developing Partnerships. Basically, the supplier’s relationship is at its best when a strategic partnership is
made, allowing full facts of the source of materials and guaranteeing high quality. A supplier is with a stronger
business partnership if it provides the following:
∙ Do in advance, what is required from the manufacturer and start to take the leadership role in communication.
∙ Notify and communicate the manufacturer if quality problem is identified that limit production availability.
This type of partnership promotes stronger commitments and encourages a greater interest in success
for the material and finished goods. Following these factors will enable you to select suppliers who can support
to improve your productivity, ensure you to produce quality goods/services within budget.

Value/Supply Chain

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 In business, there are forms to be done that anybody has to see its benefits. One such form is
implementing successful value chain. Value and supply chain often used interchangeably. Yet, there is a
difference between these two models. Supply chain management and value chain management are connected
both in the processes involved in getting goods from the enterprise board, through purchasing, manufacturing,
and into the hands of consumers. However, each discipline views the process from a unique standpoint, and
with different objectives.

BASIS SUPPLY CHAIN VALUE CHAIN

Definition The integration of all the activities
that starts from the manufacturing
of raw material into the finished
product and ends when the product
reaches the final customer.
The series of input activities that
focuses on creating or adding
value to the product for its valued
customers which often involves
finding the raw material for
manufacturers or just simply
packaging and marketing for
retailers.

Origin Operation Management Business Management

Concept Transmission Added-Value

Structure Product Request - Supply Chain - Customer Request - Value Chain

Customer - Product

Goal Customer Satisfaction Gaining competitive strength

https://keydifferences.com/difference-between-supply-chain-and-value-chain.html#ComparisonChart
Table 1. Value and Supply Chain Comparison Chart
Supply Chain
Supply chain defines as a tool of business conversion that reduces costs and maximizes customer
satisfaction by providing the right product at the right price at right time at the right place and. It involves all
activities in the distribution through a product transmission that reaches the final user while remaining profitable
and competitive.
Supply chain uses a process that control and plans the operation known as Supply Chain Management.
It manages the flow of raw material, within the business and the flow of finished product to the end user along
with full customer satisfaction. There are five (5) main elements of supply chain management:
1. Producing and designing a product to meet consumer request
2. Obtaining the raw materials required to produce the products
3. Manufacturing and developing the products
4. Distributing the product to consumers/customer
5. Accepting and processing returns of defective products
When the process done effectively, the costs of materials and efficient transport may reduce its costs
for the consumer while increasing profits for the manufacturer.

Value Chain
Michael Porter pioneered the concept of value chain in his 1985 book "Competitive Advantage:
Creating and Sustaining Superior Performance." He used this concept to show businesses add value to their raw
materials to produce products that finally sold to the market. There are five steps in the value chain process,
which allows a company to have a competitive strength over other competitor. The five steps are:

1. Inbound Logistics: Deals with receiving, storing and inventory control.

2. Operations: Value-creating activities that convert inputs into finished products such as assembly and
manufacturing.
3. Outbound Logistics: Activities concerned with the collection, storage, and distribution of finished product
or service to customers.

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4. Marketing and Sales: Involve activities that associated among the general consumers or buyers to purchase
a product.
5. Service: Activities that maintain and enhance the value of the product, such as customer care and warranty
package.
Supply chain is as significant as a value chain to the business world. The two models are difficult to
separate in that most of their functions connect. Both supply and value chains need transportation and storage
and end with the consumer receiving their goods/service. Both have similar goal that is to satisfy the customers
with your products while operating efficiently and effectively, in order to give the business a better bottom line
but take somewhat different tracks to get there.

Recruit Qualified Candidate for One’s Business Enterprise

Without growing the number of people with whom you work, you cannot normally grow your business.
Your success will depend on your capability to organize a team of highly qualified employees who are dedicated
to the goals and objectives of your business. Recruiting defines the processes of the companies use to find
qualified candidates to fill job openings.
When recruiting, consider your actual needs of your business. An impressive list of qualifications and
broad work experience are necessary, but these are not the only factor to consider when recruiting potential
employees. Here are some ways to improve your recruitment process:

1. S e a r c h f o r A C a r e e r - O r i e n t e d I n d i v i d u a l
One of the characteristics need to consider when hiring a qualified candidate is their commitment in
developing and growing their own career as a professional. Look for an employee who is working to be loyal
and assess your job as a chance to improve their career and be an asset to the company at the same time.
2. E v a l u a t e f o r P r a c t i c a l E x p e r i e n c e
Hiring candidate who is both qualified and experienced in your line of work is very important. To be
able for them to integrate more quickly and become familiar with the job, concentrating on the practical
experience of your potential employee is the key.
Naturally, every new employee needs to undergo an adjustment period if a candidate does not have the required
practical experience for the job you are looking for but keep that period as short as possible.
3. T e s t Y o u r A p p l i c a n t s
One of the ways to improve your recruitment process is to implement various strategies that can provide
you data as far as learning abilities and analytical skills of the candidate are concerned. Even they have an
impressive resume, and they come off as self-assured during the interview, it is up to the employer to assess
potential employees, because some of them might not been completely truthful on their resume. In addition, you
will have better understanding on how resourceful they are when presented with a new challenge.
4. D e t e r m i n e S t r e n g t h s N e e d e d f o r t h e P o s i t i o n
If you are hiring someone to do a job that is tiresome in nature, you should look for a candidate who
have the necessary mental and psychological strength to cope with pressure, tight deadlines, and complex
customer demands. Determine whether the candidate will be able to stay self-motivated, excited to be an active
participant in business efforts, and willing to put in the extra work to achieve success in the business, even they
are required to perform the task repeatedly.
5. C u l t u r e F i t
Another way to consider when hiring a candidate is their ability to fit in and adjust to your business’s
culture. It means they need to develop enough their social skills, to maintain the positive atmosphere in the
workplace. Since every job involves working with people, and communicating with clients, should hire a person
with strong social skills. Check their work history through interview questions and conduct a reference check
with their former colleagues and bosses to make sure they may not cause future harm to your organization. This
should help you a complete picture of every candidate you interview.
6. Take them Onboard
Once you have decided to hire candidate, provide them an actual work pairing them with a more
experienced worker who can mentor and train during his or her initial days in the workplace. In this process,
you will recognize everything about their intelligence, skills, ability to manage with stress, social skills, and
weaknesses.
7.RunSocialChecks
Visiting candidate’s social media page will help you acquire more insight into their skills and experience than
their resume. Finding the qualified candidate is not that simple and time-consuming process because of

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competition, varying labor force, demographics, and workers’ principles, but it is well-worth something that
will benefit the business in the future. To be successful, you may need to be open-minded and creative.

IV. POST-TEST
Direction: Write X if the statement is true, and write Y if the statement is false. Write your answer on your
study notebook.
1. Conducting performance reviews on credit history shows the financial stability of the supplier.
2. Dealing with distant suppliers might provide you a quick delivery time and extra load costs.
3. Developing partnership promotes stronger commitments and encourages a greater interest in success for the
material and finished goods.
4. Value chain and Supply chain are synonymous in nature.
5. In value chain, it starts the process from the source flows outward to the customer.
6. The final stage in the supply chain is the distribution of the product to consumers/customer.
7. Michelle Porter introduced the concept of value chain in his 1985 book "Competitive Advantage: Creating
and Sustaining Superior Performance."
8. One of the characteristics need to consider when hiring a qualified candidate is their commitment in
developing and growing their own career as a professional.
9. If you are hiring someone to do a job that is tiresome in nature, look for a candidate who can cope with
pressure, tight deadlines, and complex customer demands.
10. Visiting candidate’s social media page will help you acquire more insight into their skills and experience
than their resume.

Pre-test. 1. C 2. D 3. C 4. A 5. C Post-test. 1. X 2. Y 3. X 4. Y 5. Y 6. Y 7. Y 8. X 9. X 10. X

V. ANSWER KEY

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 ROSALES NATIONAL HIGH SCHOOL
SENIOR DEPARTMENT
Don Antonio Village, Rosales, Pangasinan
INSTRUCTION: Detach and submit this Worksheet together with the activity sheets.
WORKSHEET
Name:
Subject: ENTREPRENEURSHIP
Grade/Section:
Subj. Teacher: Week: 4 and 5

I. FORMATIVE ASSESSMENT
Test/Activity Score
A. Pre-Test p.1
B. Post Test p. 6

II. SUMMATIVE ASSESSMENT

Activity I. Directions: Choose the correct answer. Write the letter of your answer.
1. Which of the following is an advantage to a supplier of delivering products on time consistently?
A. Lower payment B. Repeating orders C. Lower trading costs D. Minimal buffer stock consumed
2. Which of the following factor to consider as the most important choosing the right suppliers?
A. Price B. Location C. Reliability D. Partnership
3. Which of the following is the initial stage in a supply chain for a candy bar?
A. The supplier of sugar. C. The manufacturer of the candy bar,
B. The seller of the candy bar. D. Transportation between each stage of the candy bar
4. Which area of business will particularly focus to ensure deliveries of product to customer arrive on time?
A. Sales B. Finance C. Logistics D. Marketing
5. Manufacturer X and Y supply manufacturer Z, which supplies customers A and B. Which of the following
statements is best?
A. The supply chain for manufacturer X includes Y, Z, A and B.
B. The supply chain for manufacture Y includes X, Z, A and B.
C. The supply chain for company Z includes X, Y, A and B.
D. All the above.
6. Which of the following statements is true?
A. The supply chain integrates all activities and processes to provide a product or service to the end user.
B. Raw material in the supply chain typically flows from customer to producer.
C. The supply chain involves only one supplier.
D. All of the above.
7. Which of the following generates the best source of the recommendation for a potential job candidate?
A. Internet B. Employee referral C. Company Web site D. Recruiting organizations
8. Manufacturing is important to the economy because:
A. It adds value to products and services C. It creates wealth.
B. It supports service and production. D. All of the above
9. Which of the following best describe the importance of recruiting?
A. To determine whether to use inside or outside candidates.
B. To predict the short-term supply of candidates.
C. To develop and increase the pool of applicant
D. To create positive story about a company.
10. What is the initial step in the recruitment process?
A. Perform candidate background checks. C. Perform an initial interview.
B. Decide what positions needs to fill. D. Create a pool of candidates.
11. Mario and James agreed to establish a business venture together. Mario will contribute money while James
will contribute his managerial skills and a portion of a lot he owns at downtown. What type of business are they
going to establish?
A. Sole Proprietorship B. Joint Venture C. Corporation D. Partnership
12. What is the main reason why we need to register our business to the Bureau of Internal Revenue?
A. To become part of nation building through payment of proper business income tax.

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 B. To receive subsidy from the government.
C. To be a good citizen of the country.
D. To have a free advertisement.
13. This document is one of the most important one. It shows that you have been give the privilege to operate
your business within the jurisdiction of the municipality or city where your business is located. What kind of
permit is this?
A. Congressional Permit B. Governor’s Permit C. Barangay Permit D. Mayor’s Permit
14. If you and your friends decided to establish a corporation, what agency of the government should you apply
for a license other than the Department of Trade and Industry?
A. Department of Budget and Management C. Bangko Sentral ng Pilipinas
B. Securities and Exchange Commission D. Department of Finance
15. These are like guiding stars that will lead you to the success of your business enterprise. What are these?
A. Loyalty, integrity and values C. Mission, virtue and values
B. Charity, humility and vision D. Mission, vision and values
16. Which of the following is NOT a requirement in obtaining a barangay permit?
A. DTI registration certificate C. Fire safety clearance
B. Valid identification cards D. Barangay clearance
17. In what way you can become part of the community’s economy and fulfillment of social responsibility?
A. By using profit to expand the business C. By paying business permit fee
B. By creating jobs for the people D. By donating to a charity
18. Which of the following type of organizational structure allows collaboration among teams and individuals?
A. Line and Staff Organization Structure C. Line Organizational Structure
B. Functional Organization Structure D. Project-based structure
19. Mr. Vincenzo Cassano is planning to establish his business. He talked to the owner of stalls near the market
for a possible rental agreement. The latter agreed to have Mr. Cassano rent one of the stalls. What type of
contract should they sign together?
A. Contract of employment C. Logistical contract
B. Joint venture contract D. Lease contract
20. What should be the main criteria for hiring people into your business?
A. Neatly dressed and has communication skills C. Good character and competence
B. Good character without competence D. Pleasing personality only

Activity II. Direction: Choose the letter of the correct answer in the box. Write the letter of your answer.
A. Develop Partnership B. Inbound Logistics C. Outbound logistics D. Operations E. Stability
F. Service G. Value Chain H. Career-Oriented I. Recruiting J. Price
K. Culture Fit L. Supply Chain

___1. The ability of the supplier who have been in the business for a long period.
___2. It involves all activities in the distribution through a product transmission to the final user.
___3. An activity that maintain and enhance the value of the product, such as customer care and warranty
package.
___4. A factor of selecting potential supplier that focused on managing your finances.
___5. The ability of qualified candidate that fits in and adjusts to your business’s culture.
___6. The series of activities that focuses on adding value to the product for its valued customer.
___7. An activity concerned with the collection, storage, and distribution of finished product or service to
customers.
___8. The processes of the companies use to find qualified candidates to fill job openings.
___9. Value-creating activities that convert inputs into finished products such as assembly and manufacturing.
___10. A supplier’s relationship promotes stronger commitments and encourages a greater interest in success
for the material and finished goods.

III. REFLECTIVE ASSESSMENT

Answer the same reflective questions in an activity sheet.