ENTREPRENEURS

HIP
MRS. NORLINE M. VELEZ
 GUESS THE PICTURE

● Direction: Given with the following pictures, fill in the following

blanks below to form a meaningful word. Two (2) points for each
correct word.
MANPOWER
MACHINES
MATERIALS
METHODS
● An entrepreneurial venture may either be a sole proprietorship, a
partnership, or a corporation, engaged in merchandising,
manufacturing, or service. Nevertheless, whatever type and nature of
business ventures is opened to exploit different business
opportunities, innovation or creativity defines the distinction
between an entrepreneur and an ordinary business person.
● Thus, the concept of innovation or creativity must, in almost all
instances, be introduced and practiced. An entrepreneur finds way to
introduce innovation from the production process to the marketing
stage, while an ordinary businessperson simply imitates business
practices and procedures.
● The concept of innovation or creativity can easily be practiced
and highly noticeable in a manufacturing operation since raw
materials are transformed to finished goods through the production
process. Innovation can be introduced from the production phase up
to packaging and delivery.
● The three important elements in the production system are; the
input, the transformation of production process and the output.
● The Input includes the following:
● 1. Manpower
● 2. Materials
● 3. Machine
● 4. Design
● 5. Instructions
● The Production process, also referred to as the
transformation or conversion process, is the stage of
production where the materials are transformed into the
final product with the aid of manpower and machine.
● The output represents the final product from the
production process and distributed to the customers.
 4 M’s of Production

● The most serious issues in the whole production system

are the inputs and the transformation process. Their
quality determines the quality of the output.
● The factors involved in the input and the production
process are usually referred to as the Four M’s of
production, namely Manpower, Method, Machine, and
Materials.
4 M’s of Production
 Manpower

● Manpower talks about human labor force involved in the

manufacture of products. It is measured as the most
serious and main factor of production. The entrepreneur
must determine, attain and match the most competent and
skilled employees with the jobs at the most appropriate
time period.
 Manpower

● Educational qualifications and experience, status of

employment, number of workers required, skills and
expertise required for the job are some of the manpower
criteria that must be highly considered by the
entrepreneur.
 Materials

● It simply refers to the raw materials necessary in

the production of a product. Materials mainly form
part of the finished product. Just in case the resources are
below standard, the finished product will
unsatisfactory as well. The entrepreneur may consider
cost, quality, availability, credibility of suppliers and
waste that the raw materials may produce.
 Machine

● Machine is about manufacturing equipment used in the

production of goods or delivery of services. In the process of
selecting the type of equipment to purchase, the entrepreneur may
consider types of products to be produced, production system to be
adopted, cost of the equipment, capacity of the equipment,
availability of spare parts in the local market, efficiency of the
equipment and the skills required in running the equipment.
 Method

● Method or production method is the process or way of

transforming raw materials to finished products. The
resources undergo some stages before it is finalized
and become set for delivery to the target buyers. The
selection of the method of production is dependent on
product to produce, mode of production, manufacturing
equipment to use and required skills to do the work.
Method
 Method

● The product is the physical output of the whole

production process. It should be valuable and beneficial
to the consumers and should satisfy their basic needs and
wants. A product can be heterogeneous or homogeneous.
A heterogeneous product has dissimilar characteristics,
parts, and physical appearance.
 Method

● It can be easily identified from other products.

Entrepreneurial ventures that produce heterogeneous
products include makers of furniture, bags, and home
decors.
 Method

● On the other hand, a homogeneous product has a

physical appearance, taste, or chemical content that
can hardly be distinguished from that of the other
products. Businesses that produce homogeneous
products include makers of soft drinks, and medicines.
 Method

● After knowing the production process and system, and

how the product is being processed, not it is important to
know about product description, wherein product
description promotes and explains what a product is and
why it’s worth buying. The purpose of a product
description is to provide customers with details
around the features and benefits of the product so they’re
obliged to buy.
 Method

● Know who your target market is, focus on the product

benefits, tell the full story, use natural language and
tone, use power words that sell, and use good
images. These are guidelines for you to have a good
product description; since some customers are very
particular with it since they consider the welfare of their
family, if it is safe to use.
 Method

● Prototype is created before the massive production of

such product; an entrepreneur must consider
prototyping. One of the important early steps in the
inventing process is making a prototype.
 Method

● A prototype is a duplication of a product as it will be

produced, which may contain such details as color,
graphics, packaging and directions. Benefits are the
reasons why customers will decide to buy the
products such as affordability, efficiency or ease of use.
The features of the product or service merely provide a
descriptive fact about the product or service.
 Method

● Most importantly, it is better to test your product

prototype to meet customers’ needs and expectations; and
for your product to be known and saleable. Pretesting of
the product or service is similar to a sample of the
product or service given to the consumer free of cost in
order that he/she may try the product before committing
to a purchase.
 Method

● The entrepreneur’s main concern is the satisfaction of a

customer, for they are the life blood of the business.
Without them, all the efforts, will be wasted as well as
the chance to venture into a new business.
 Method

● In a manufacturing venture, the supplier plays a

vital role. They are your business partners, without
them your business will not live. You need them as much
as you need your customers to be satisfied. But as
an entrepreneur you have to choose a potential supplier
who has loyalty and values your partnership: a supplier
who would lead you to the fulfillment of your business
objectives, mission and vision.
 Method

● This entity is part of a supply chain of a business, which

may offer the main part of the value contained within its
products. Certain suppliers may even involve in drop
shipping, where they ship goods directly to the customers
of the buyer.
● How do supply chain management systems coordinate
planning, production, and logistics with suppliers?
● Supply chain management systems automate the flow of
information among members of the supply chain so that
they can use it to make better decisions about when and
how much to purchase, produce, or ship.
 VALUE CHAIN

● Value chain is a method or activities by which a company

adds value to an item, with production, marketing, and
the provision of after-sales service. The main goal and
benefit of a value chain, and therefore value chain
analysis, is to make or support a competitive benefit.
 SUPPLY CHAIN

● A supply chain is a structure of organizations, people,

activities, data, and resources involved in moving a
product or service from supplier to customer.
 SUPPLY CHAIN

● The main objective of supply chain management includes

management of a varied range of components and
procedures, for instance, storing of raw materials,
handling the inventory, warehousing, and movement of
finished product from the point of processing to the point
of consumption.
 BUSINESS MODEL

● Business model describes the factors 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 part of a business plan.
 Activity No. 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.”
 Activity No. 1.

● 1. Who would be your manpower?

● 2. What would be your materials?
● 3.What machines or tools would you use?
● 4.What methods are needed to produce the egg
sandwich? (Cooking procedure enumerate them).