Entrep

• Operations plan


  Underlying principles and methods in crafting the organizational plan and the financial plan to complete the business plan for the chosen venture
• Operations


  • Interrelated business functions of production, procurement, and distribution of the goods/services
• Production


  The process of manufacturing a product or producing a service to be offered to target customers
• Product


  Something offered to a market for its acquisition, use, or consumption to satisfy a certain want or need of customers
• Types of products


  • Tangible objects (clothes, office furniture, cars, computers, books, food, electronic gadgets)
  • Intangibles (services, ideas, events, places, data, financial stocks, entertainment)
• Service


  A form of product that consists of human-related activities, benefits, and satisfactions (medical treatments, teaching/tutoring, beauty salons, restaurants, health gyms, yoga sessions, website design, car wash, banking services, retail shops) that are offered for sale and do not result in the buyer's ownership of the commodity
• Market offerings


  • Pure tangible goods (no services accompany the product, e.g. toys, soaps, jewelries)
  • Pure services (what is being sold is primarily the service, e.g. legal advice, medical services, accounting services)
  • Goods-and-services combinations (e.g. automotive dealers, hotels and restaurants, computer shops, beauty or hair grooming salons, musical instruments stores)
• Procurement


  Sourcing the supplies and materials required for production or service delivery, including the proper handling and storage of the inventory goods
• Supplies needed for procurement

  • Tangible materials (physical goods, equipment, tools)
  • Intangible materials (software providers, digital communications systems, virtual communications and learning management systems, consulting services)
• Tangible materials


  Physical goods, equipment, and tools needed for production or service delivery, requiring spaces for storage, warehousing, and inventory sorting and inspection
• Intangible materials


  Software providers, digital communications systems, virtual communications and learning management systems, consulting services that may help in the production process or service delivery
• Distribution


  The physical transport or flow of materials and communications involved in reaching the target customers
• Delivery systems for distribution

  • Marketing channels or intermediaries in selling for manufacturers
  • Electronic channels (digital communications, electronic funds transfer) for service providers
• Distribution


  Recognizes that delivery systems must address the issues of where, when, and how the product/service is to be delivered to customers
• Basic elements of the 4 Ms

  • Methods
  • Machine
  • Materials
  • Manpower
• Methods


  The clear, detailed, and well-organized procedures or systems involved in production, procurement, and distribution
• Machines


  The required equipment and physical facilities that you need to make your product or create your service
• Materials


  All supplies and materials necessary to produce your product or perform your service
• Manpower


  The workforce needed to perform the operations' functions
• Methods


  Clear, detailed, and well-organized procedures or systems involved in production, procurement, and distribution
• Convenience products


  Consumer products and services that buyers avall frequently, immediately, and with minimal comparisons and buying efforts. They are usually low priced and placed in many locations that accessible and "convenient" for consumers to find.
• Shopping products


  Consumer products and services that customers buy less frequently. Customers spend more time and effort in comparing them in terms of quality, style, suitability, and price. They also spend more time in gathering information relevant to the products and services first before making their purchases.
• Specialty products


  Consumer products and services with unique characteristics and brand identification. Specific groups of buyers make special efforts to buy them.
• Unsought products


  Products and services that most customers do not know much about. They normally do not consider purchasing them immediately, even though they are aware of them. They require much advertising, personal selling, and other marketing efforts.
• Unsought products

  • Life insurance
  • Preplanned funeral services
  • Blood donations
  • Newly launched healthy or vitamin-fortified products that attract diet-conscious individuals
• Industrial products


  Products bought by individuals and organizations that are used for further processing or for conducting business processes or activities.
• Types of industrial products

  • Materials and parts
  • Capital items
  • Supplies and services
• Materials and parts


  Consist of raw materials (agricultural products, natural products) and manufactured materials and parts (manufactured component materials, manufactured component parts)
• Capital items


  • Industrial products
  • Fixtures
  • Infrastructure for use in production or operations
• Installations


  • Large, fixed capital purchases (buildings, office spaces, factories)
  • Fixed capital equipment (elevators, generators, CCTVs, centralized air conditioning systems, large computer systems)
• Accessory equipment


  • Portable factory equipment and tools (hand tools, basins, stock cases)
  • Office equipment (desks, chairs, computers, printers)
• Accessory equipment have shorter life cycles compared to installations
• Accessory equipment merely aid in the production process
• Capital items


  Industrial products, fixtures, and infrastructure for use in production or operations
• Supplies and services


  Group of industrial products refers to the convenience products in the industrial field because they are usually purchased with minimum effort and comparison
• Legal Forms of Business Ownership

  • Sole proprietorship
  • Partnership
  • Corporation
  • Limited liability company
  • Cooperative
• Sole proprietorship


  • Owned and managed by an individual
  • Financial liability rests only on the business owner
• Partnership


  • Owned and managed by two or more individuals
  • Financial liability is shared by the partners
• Corporation


  • Owned by many individuals
  • Financial liability is limited to the contributed shares of the owners
• Limited liability company


  • The personal assets of the owner(s) cannot be used for legal claims against the business