Senior High School

Entrepreneurship
Quarter 4 - SLAS 1
(Self-Learning Activity Sheets)
4Ms’ of Production and
Business Model

FOR TANDAG NATIONAL SCIENCE HIGH SCHOOL USE ONLY

1
IDENTIFYING INFORMATION

ENTREPRENEURSHIP
Learning Area: ______________________________ 4TH Quarter
Quarter: ____________
Name of Learner:
Grade Level: 12
School:

LEARNING ACTIVITY DESCRIPTION

Week Covered : (Week 1&2)

Most Essential Learning Competency:

 Demonstrate understanding of the 4Ms’ of operations;
 Describe the 4Ms (Manpower, Method, Machine, Materials) of
operations in relation to the business opportunity:
Develop a product description
• Create a prototype of the product
• Test the product prototype
• Validate the service description of the product with
potential customers to determine its market
acceptability;
• 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; and
• Recruit qualified people for one’s business enterprise.
• Develop the business model
• Forecast the revenues of the business

Objectives:
After completing this self-learning activity sheet, you should be able to:
1. Describe 4M’s (Manpower, Method, Machine, Materials) of
operations related to the business opportunity;
2. develop a product description;
3. create a prototype of the product; and
4. test product prototype.

Materials: Pen and Notebook

Content Background:

We must consider the importance of the 4M's of operations in all business

opportunities when developing a business plan. Because it assists you in
identifying business problems in the future and in the present, particularly in
the production process and marketing.

When applying your 4Ms of production, it is best to consider the2

customer's point of view in terms of their influences as to why they will buy a
particular product, does your product aim to answer each consumer's wants or
 needs and meet up with their expectations over the product, and how suppliers,
value chain, and supply chain affect the business and production.

Before we start with this module, answer the following questions below.

Directions: Write True if the statement is correct, otherwise write False if the statement is
incorrect on the space provided.

_________ 1. Output refers to the final products of the manufacturing process that
are distributed to customers.
_________ 2. The 4M’s in the production operation are the materials, manpower,
machine and money.
_________ 3. The rationale for how an organization creates, transports, and
captures value in economic, social, cultural, or other contexts is
described by a business model.
_________ 4. The process or activities by which a company adds cost to an article,
including production, promotion, and after-sales service, are referred
to as the value chain.
_________ 5. Supply chain is a system of organizations, people, activities, data and
properties involved in moving a product or service from supplier
to customer.

The inputs and the transformation process are the two most serious issues in the
entire production system. Their quality determines the output's quality.

The factors involved in the input and production process are known as the Four
M's of production, which stand for Manpower, Method, Machine, and Materials.

Four M’s

 Manpower
 Method OUTPUT
 Machine
 Materials

Manpower refers to the human labor force involved in the production of goods. It is
regarded as the most important and primary factor of production. The entrepreneur must
identify, recruit, and match the most competent and skilled employees to the jobs at the
best possible time.

Some of the manpower criteria that must be carefully considered by the

entrepreneur include educational qualifications and experience, employment status, the
3
number of workers required, and the skills and expertise required for the job.
 Material refers to the raw materials used in the manufacture of a product.
Materials are primarily used in the production of finished goods. If the resources are of
poor quality, the finished product will be of poor quality as well.

The entrepreneur may consider cost, quality, availability, supplier credibility, and
waste generated by the raw material.

The machine discusses manufacturing equipment used in the manufacture of

goods or the provision of services.

The entrepreneur may consider the types of products to be produced, the

production system to be used, the cost of the equipment, the capacity of the equipment,
the availability of spare parts in the local market, the efficiency of the equipment, and the
skills required to operate the equipment when deciding on the type of equipment to
purchase.

Method is process or method of converting raw materials to finished products is

referred to as the production method. Before the resources are finalized and ready for
delivery to the target buyers, they go through several stages.

The method of production chosen is determined by the product to be produced, the

mode of production, the manufacturing equipment to be used, and the required skills to
complete the work.

Product Description
It is the promotion that explains what a product is and why purchasing it is
worthwhile. A product description's goal is to provide customers with information about
the product's features and benefits so that they are compelled to buy it.

Know your target market, focus on the benefits of the product, tell the entire story,
use natural language and tone, powerful selling words, and good images. These are
guidelines for writing a good product description, as some customers are picky because
they care about the welfare of their family and want to know if it is safe to use.

Prototyping

A duplicate of a product as it will be manufactured, which may include details such

as color, graphics, packaging, and directions. Making a prototype is an important early
step in the inventing process. Benefits are the factors that influence a customer's decision
to purchase a product, such as affordability, efficiency, or ease of use. The product or
service's features merely provide a descriptive fact about the product or service. It is
preferable to test your product prototype in order to meet the needs and expectations of
your customers, as well as to make your product known and saleable. Pretesting a
product or service is similar to providing a free sample of the product or service to the
consumer so that he or she can try the product before committing to a purchase.

Supplier

A company that provides goods and services to another company. This entity is
part of a company's supply chain and may provide the majority of the value contained in
its products. Certain suppliers may even engage in drop shipping, in which they ship 4
goods directly to the buyer's customers.
 Suppliers are your business partners; without them, your company would die. You
require them just as much as you require your customers to be satisfied. However, as an
entrepreneur, you must select a potential supplier who is loyal and values your
partnership; a supplier who will help you achieve your business objectives, mission, and
vision.

A value chain is a method or set of activities by which a company adds value to an

item through production, marketing, and after-sales service. The primary goal and benefit
of a value chain, and thus value chain analysis, is to generate or support a competitive
advantage.

A supply chain is a network of organizations, people, activities, data, and

resources that transports a product or service from the supplier to the customer.

The primary goal of supply chain management is to manage a wide range of

components and procedures, such as raw material storage, inventory management,
warehousing, and the movement of finished product from the point of processing to the
point of consumption.

Business model describes the reasons of how an organization creates, delivers,

and captures value in economic, social, cultural or other contexts. The development of
business model construction and variation is also called business model innovation and
forms a part of business plan.

It is a company's strategy for generating revenue and profit. It explains what

products or services the company intends to manufacture and market, how it intends to
do so, and what expenses it expects to incur.

Identifying the specific audience; establishing a business process; recording a

business resource; developing a strong value proposition; determining key business
partners; and creating a demand for today's generation strategy and being open to
innovations are all important phases in developing your business model.

Following the development of a business model, we will move on to the development

of a business plan. To successfully complete this module, you must first prepare a
business plan, then implement it, and finally keep records of your business transactions.
5
A business plan is an important tool for you to have an idea about your company's
future. When it comes to implementing and operating your business proposal, your
business plan will be your guide.

The business plan can also be used to secure investment capital from financial
institutions or lenders. It can also be used to persuade people to work for your company,
secure credit from suppliers, and entice potential customers.

Read the stories of Jessie, Mercy and Monna below to fully understand the
importance of having a business plan:

“Jessie is the eldest of five children of Mr. & Mrs. Natividad. The family is having
difficulty to support for their everyday needs. Because of this, Jessie tried to enter selling
banana cue and with his dream to make his business grow, he put up many stalls in the
community without considering the advises of his friends to make a business plan before
implementing his decision. After a few months his stalls shutdown.”

“Mercy is the youngest in the family. She found out that she loves to cut hair and
apply make up to her friends. Until such time that her friends introduced her to their friends
too for haircut and make up when there are occasions. Few months after, Mercy was told by
her friends to put up a beauty parlor in their place. So she asks her mother who is also a
businesswoman to teach her how to make a business plan and eventually ended with a
successful business.”

“Monna is a diligent student. Because of her knowledge gained from school about
business plan she was able to enhance her skills in business and finally found herself into
his laundry shop business.”

Each scenario taught us that business is about more than just how much money
or profit you can make; it is also about the longevity of your company. You must also
consider technological forces, social forces, political forces, cultural forces, economic
forces, and legal forces when running a business.

The following are the components found in a Business Plan.

Introduction - this part discusses what is the business plan all about.

Executive Summary - is part of the business plan which is the first to be

presented but the last to be made.

Management Section - shows how you will manage your business and the
people you need to help you in your operations.

Marketing Section - shows the design of your product/service; pricing, where

you will sell and how you will introduce your product/service to your market.

Financial Section - shows the money needed for the business, how much you
will take in and how much you will pay out.

Production Section - shows the area, equipment and materials needed for the
business.

Competitive Analysis - is the strategy where you identify major competitors and
research their products, sales and marketing strategies.
6
Market - The persons who will buy the product or services
 Organizational chart - is the diagram showing graphically the relation of one
official to another, or others of a company.

General Instructions: Answer the following questions based on your knowledge of the
four Ms of manufacturing and the Value Chain or Supply Chain. Fill in the blanks with
your response. Each correct answer for Activity 1 is worth five (5) points, and each correct
answer for Activity 2 is worth two (2) points.

Activity 1 : “In your home, when you want to eat egg sandwich before going to
school, your mother would surely prepare it for you. Your egg sandwich would not
be produced without a process.”

1.Who would be your human resources?

2.What materials would you use?
3.What equipment or tools would you employ?
4.What methods are required to make the egg sandwich? (List the cooking
procedures.)

Activity 2 : With the pictures shown below, identify each picture whether it is
Value Chain or Supply Chain.

1. ____________________

2. ______________________

7
3. _____________________

Activity 3 :

Directions: Based on the image below, answer the following questions. Fill in the
blanks with your answers.

1. Do you recognize the image above? Give one example of a food business
establishment that you believe is well-known among today's teenagers.

________________________________________________________________________________
________________________________________________________________________________

2. What do you think is the reason for this particular food business
establishment's current popularity among teenagers?

________________________________________________________________________________
________________________________________________________________________________

3. Do you know of any other ways to enjoy their product besides visiting their
store and purchasing it for yourself?

________________________________________________________________________________
________________________________________________________________________________

4. Do you believe such strategies are effective in increasing business productivity?

If so, why or why not? 8

_______________________________________________________________________________
 _______________________________________________________________________________

REFLECTIONS

Concepts Learned
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Concepts Unlearned
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Business Plan Making

Below is a template for business plan. You need to fill this out using the business
you want to pursue.

This section will show how you will manage your business and
the people you need to help you in your operations
MANAGEMENT a. Manager:
SECTION
b. Workers:
This section shows the design of your product/service; pricing,
where you will sell and how you will introduce your
product/service to your market.

a. Product Description:

MARKETING
SECTION b. Price:

c. Selling location:

d. Promotional Activity:
This section shows the money needed for the business, how
much you will take in and how much you will pay out
9
 a. Capital Amount:
FINANCE
SECTION b. Expected Daily Sales:
c. Expected Daily Expenses:

d. Income per Day:

This section shows the area, equipment and materials
needs for the business.
a. Draw a lay out of your production area:
PRODUCTION b. Enumerate the equipment needed:
SECTION
c. Enumerate the materials needed:

RUBRIC FOR BUSINESS PLAN MAKING

The content was well- thought, guide

15
Content questions were thoroughly answered
The paper was well- written with ideas
Organization easily conveyed to readers. 10
Development Points are thoroughly developed 5
TOTAL 30

REFERENCES

BOOKS
Ronaldo S. Batisan, DIWA Senior High School Series:
Entrepreneurship Module. Diwa Learning Systems Inc.

Eduardo A. Morato Jr., Entrepreneurship, 1st ed., Manila, Philippines:

REX Books Store,p.13

Raymund B. Habaradas and Tereso S. Tullao,Jr., Pathways to

Entrepreneurship,2016,Phoenics publishing house,p.17-28

Aduana, Nick L. Entrepreneurship in the Philippine Setting for Senior

High School. Quezon City.C & E Publishsing, Inc. 2016.

Batisan, Ronaldo S. Entrepreneurship Module, Diwa Senior

Highschool Series, Diwa Learning System Inc. Legaspi Village,
Makati City Philippines, copyright 2016

Morato, Eduardo A. Entrepreneurship. Manila. Rex Bookstore, Inc.

2016. 10
ELECTRONIC RESOURCES

Santos, ELi. "Marketing Mix the 7 Ps of Marketing." LinkedIn

SlideShare. February 06, 2012. Accessed January 04, 2019.
https://www.slideshare.net/elisantos11/marketing-mix-the-7-ps-
of-marketing.

Tracy, Brian. "The 7 Ps of Marketing." Entrepreneur. May 17,

2004. Accessed January 04, 2019.
https://www.entrepreneur.com/article/70824.

"Marketing Mix Definition - 4Ps & 7Ps of the Marketing Mix." The
Marketing Mix. Accessed January 04, 2019.
https://marketingmix.co.uk/.

"Branding Explained." Luminosity Branding Agency. Accessed

January 04, 2019. https://www.luminosity.com.au/what-we-
do/brand/branding-explained/.

"Marketing: Distribution Channels (GCSE) | Tutor2u Business."

Tutor2u. Accessed January 04, 2019.
https://www.tutor2u.net/business/reference/marketing-
distribution- channels.

"Market Positioning - Creating an Effective Positioning Strategy."

Corporate Finance Institute. Accessed January 15, 2019.
https://corporatefinanceinstitute.com/resources/knowledge/strategy
/market- positioning/.

Jwayne2013 Follow. "Branding Ppt." LinkedIn SlideShare. January 16,

2013. Accessed January 18,
2019.https://www.slideshare.net/jwayne2013/branding-ppt-
16015717.

ANSWER KEY

TRUE 5.
TRUE 4. Activity 3 : Answers may vary.
TRUE 3. 3. Supply Chain
FALSE 2. 2. Value Chain
TRUE 1. Activity 2 : 1. Supply Chain
Activity 1 : Answers may vary.
ELICIT EVALUATION:
11
 Development Team of the Learning Activity Sheets

Writer : Cherie Lyn P. Jumadla, Tandag National Science High School

Editor : Mia O. Laorden, MT - II
Reviewer : Mia O. Laorden, MT - II
Illustrator : Mia o. Laorden, MT - II / Ronel B. Cordovez, SST - III
Management Team : Romulo T. Laorden, Principal I
Mia o. Laorden, MT - II
Joeyconsly L. Valeroso, MT - I
Adonic Don G. Oplo, MT - I
Kit Jude Q. Minion, MT - I

For inquiries and feedback, please write or call

TANDAG NATIONAL SCIENCE HIGH SCHOOL

LEARNING RESOURCE MANAGEMENT TEAM - TNSHS
Tabon Tabon, Quezon, Tandag City

Telephone : 214 - 5827

Email Address : sciencehighschool.tandag@gmail.com

12