Module 7

Management
33

PLAN

ECF3
ENTREPRENEURAL
Management

to your 7TH
module!

This module is a combination of

synchronous & asynchronous learning
and will last for one week
Long Test will be given via
Google Form in asynchronous test

Identify & Meet a Market Need

ARLENE F. MUSONES, MBA

Instructor

No part of this module may be

reproduced in any form without prior
permission in writing from the
Instructor.

November 21, 2023

November 26, 2023
Date of Completion
 Marketing Plan
MODULE 6 OUTLINE
MODULE DURATION
November 21 to November 26, 2023 Synchronous Meeting and Asynchronous Learning
For asynchronous learning inquiries, you may reach me through the messenger group chat from Monday to Thursday
at 5pm to 8pm. or thru my GMAIL – arlenemusones143@gmail.com

LEARNING OBJECTES

After completing this module, you are expected to:

1. Describe the internal organizational structure;
2. Describe how manpower affect the process on setting up a business;
3. Discuss the staffing process;
4. Describe compensation schedule;
5. Identify and classify the different government agencies and areas for registration; and
6. Project Schedule

INPUT INFORMATION

Management Plan

LEARNING ACTIVITIES

1. Group discussion during a synchronous meeting

2. Asynchronous Learning

ASSESSMENT/EVALUATION
I. Synchronous Test with a time limit.
A long test link will be provided through our group chat. This is a synchronous test with a time limit.
II. Asynchronous Learning
a. Individual Activity – Individual Learning Portfolio
b. Group Activity – Case Study
ASSIGNMENT
Individual Learning Portfolio. In your own words, (minimum of 30 words each question):
1. Differentiate the four types of business organization?
2. Identify the basic issue that must be resolved in defining the internal structure of the organization.
3. Differentiate the three types of internal organizational structure?
4. What are the different activities to be undertaken in determining the staffing requirements of an
organization?
Deadline: To be announced in the GC.
Group Activity:
Actual Writing of the Management PLAN for the Group Business Plan. .
Deadline: To be announced in the GC.

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

LEARNING RESOURCES
Book/E-book:
Entrepreneurship by Cynthia L. Greene @2013 Cengage Learning Asia Pte. Ltd.
Entrepreneurship by Bruce R. Barringer and R. Duane Ireland, Fourth Edition

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

 Management Plan of a BUSINESS PLAN
MODULE 7 PROPER

OBJECTIVES OF THE MANAGEMENT Plan

1. Describe the internal organizational structure.
2. Describe how manpower affect the process on setting up a business.
3. Discuss the staffing process.
4. Compensation
5. Identify and classify the different government agencies and areas for registration.
6. Project Schedule

Major Parts of the Management Plan

A. Form of ownership
B. Internal Organizational Structure
C. Staffing Requirements and Roles & Responsibilities of members of organization
D. Legal Requirements

A. Forms of Ownership
What type of business organization must be formed to carry out effectively the objectives of the proposed project?
There are three types of business organization. These are
1. Sole Proprietorship
2. Partnership
3. Corporation
4. Cooperative

Factors Affecting the Choice of Business Organization

1. Capital Requirement
2. Liability of owner or owners
3. Managerial skills needed
4. Ease of information
5. Taxation implication
6. Government intervention
7. Nature of business
8. External financing

CASH REQUIREMENT
1. May come from CASH INFUSION of the owners.
2. May be sources from creditors like financial institutions.
3. The amount of capital needed may be enough to cover the infrastructure requirements and the scale of
operation.

Liability of Owner or Owners

1. The liability of the owner or owners may either be LIMITED OR UNLIMITED.
2. LIMITED LIABILITY – means the owner is liable only to the extent of his capital contributions.

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

 3. UNLIMITED LIABILITY – implies the creditors may run after the personal properties of the owner in case the
business cannot fully settle to financial obligations

Managerial Skills
SOLE PROPRIETORSHIP and PARTNERSHIP need only small capital requirements, the operation is simple.
In most instances, one person with managerial skills is employed to handle the daily operating activities of the business.

Corporation or Cooperatives. Operation of the business is highly complicated and covers a wide market. There is a need to
hire several managers to run the day-to-day operations.

Ease of formation
SOLE PROPRIETORSHIP & PARTNERSHIPS are easily formed. Do not require the preparation of documentary papers.
Not usually registered with the Securities And Exchange Commission (SEC).

CORPORATION
Requires the services of legal counsel and a certified public accountant.
Requires its legal personality after complying with all the legal requirements and formalities.

Taxation Implication
SOLE PROPRIETORSHIP - Computed using the scheduled tax rates and the amount is usually lower compared to that of a
partnership and a corporation.
The owner of the business includes the income realized from the business in the computation of his or her gross income.

PARTNERSHIP and CORPORATION - Are presently taxed at the rate of 30% based on the computed net taxable income
or at 2% of the gross income, whichever is higher.
The tax liability is usually higher than that of a sole proprietorship

Government Intervention
SOLE PROPREITORSHIP - comply with the local government reportorial and legal requirements. Less intervention is
imposed by the national government.
CORPORATIONS – the government usually imposes greater and wider control. Various government agencies closely
monitor the operations of corporations and they impose more stringent measures to be complied with.

Nature of Business
MERCHANDISING and SERVICE ENTITITES – do not have complicated operations. They carry out routine activities
throughout the year. Sole proprietorship and partnership are advisable for this kinds of business.

MANUFACTURING BUSINESS – requires high capital base and the nature of operation is more complicated that those of
merchandizing and service entities.

External Financing
Corporate entities can easily seek external funding from outside sources like banks should they need additional working
capital, as against sole proprietorship and partnership.

B. Internal Organizational Structure

This serves as FRAMEWORK that outlines the communication process between employees and departments. It defines the
responsibilities and functions of each employee in the organization.
Factors affecting the design of the Internal Organizational Structures:

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

 1. The SIZE of the business
2. Type of product the business sells or service it offers.
The design of the internal structure of the business usually follows once the type of business organization has been chosen.
Impliedly, the internal organizational structure of the business cannot be defined unless the type of business organization
has been chosen.
Internal Organization Structure may either be a:
1. Flat Structure
2. Department Focus Structure
3. Product-Focused Structure

Flat Structure

1. Advisable for SOLE PROPRIETORSHIPS and PARTNERSHIPS where there are few personnel.
2. There are only two or three levels of reporting.
3. It hastens the decision making process by empowering the employees to formulate decisions.
4. Bureaucracy is minimized
5. Productivity is increased
6. Lesser management budget is required.

Department-Focused Structure
1. Applicable to CORPORATE ENTITIES
2. The work to accomplish is broken down into different functions.
3. Prevailing functional areas of the business:
a. Operation
b. Marketing
c. Finance
d. Human Resources
4. Values teamwork in the attainment of its objectives and goals.

Product Focused Structure

1. Importance to the product that the business offers.

2. All efforts are joined together to deliver quality products or services to customers.
3. Enhancement of product quality is the primary concern of a product-focused structure.
4. Often adopted by huge retail corporate stores in corporate form with very strong leadership teams across several
functional areas.

Organizational Chart
1. It is a diagram of the structure of the organization which shows the positions, ranks, and relationships of the employees
in the organization.
2. Identifies the positions that execute line or staff functions.

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

 C. STAFFING REQUIREMENTS
1. Determining the appropriate NUMBER OF EMPLOYEES required by the organization.
2. RECRUITING employees who qualify for the position based on education, knowledge, training, experience,
skills and abilities.
3. Deploying and retraining employees.

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

 D. COMPENSATION
Computation of SALARIES, COMPENSATION, and FRINGE BENEFITS
The proponent should consider the following:
1. The amount legally provided in the Labor Code.
2. The statutory minimum wage in the regions as stipulated by the Regional Tripartite Wage and Productivity Board.
3. The prevailing practice in the industry.
4. The demands of the position based on expertise, qualifications, and work experience.
5. The technical requirements of the work to be performed.

E. Legal Requirements
The government requires all enterprise of whatever size, type, and forms to secure a permit before it can do business.
Business registration involves enlisting the enterprise with the proper government agencies and obtaining the necessary
permits to conduct business.
The entrepreneur, before selecting the form of ownership and registering it with the government agencies concerned,
must analyze carefully the advantages and disadvantages of the various forms of business organization. The entrepreneur
must see for himself the kind of management control and how the business will be able to generate his projected profitable
investment.
1. Application of Business Registration
2. Application for Judicial Personality
3. Payment of Filing Fee, license fee, and registration fees

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

 Initial Business Registration

F. Project Schedule

The preparatory to the actual operation should be enumerated here. The entrepreneur should list the different activities or
steps in the preparatory stage of the project and present them in a Gantt chart to exhibit the duration of each activity. In every
activity the entrepreneur should indicate the length of time needed to do it and the amount of money spent.

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA

The Gantt Chart is an important of the organization plan. It is the list of all the activities to do prior to launching the business
and the timeframe for accomplishing them. Preparing the Gantt Chart is a useful exercise that allows a person to have a view
of the pre-operating activities.
Sample Gantt Chart

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College of Business and Accountancy Prepared by: Arlene F. Musones, MBA