entrep 3rd

• Lucio Tan Sr.: 'It is not chance that gives you millions, instead being a millionaire is a result of hard work and determination.'
• Lucio Tan Sr.: 'Starting your own business is a good beginning towards fulfilling your Dreams.'
• Lucio Tan Sr.: 'Entrepreneurs should never give up due to failure. Not just entrepreneurs, but people of whatever profession – all of us should learn from our setbacks. We should never surrender to despair.'
• Lucio Tan Sr.


  Filipino business magnate, investor, and philanthropist. He presides over the Filipino conglomerate company LT Group, Inc., a company with extensive business interests in sports, banking, airline, liquor, tobacco, real estate, beverages, and education. Chairperson of Philippine Airlines
• Tony Tan Caktiong


  Filipino businessman and investor. He is the founder and chairman of Jollibee Foods Corporation, and the co-chairman of Double Dragon Properties. Forbes listed him as the fifth richest person in the Philippines in 2023, with the estimated net worth of USD$3.2 billion.
• Output represents the final products from the production process and distributed to the customers.
• The 4M's in the production operation are the materials, manpower, machine and money.
• Manpower in production operation refers to the workers involved in the production of goods.
• Product description is the marketing copy that explains what a product is and its benefits.
• Skills and expertise is important in considering manpower.
• Importance of 4 M's in developing a business plan

  It helps you identify the problems of the business in the future and in actual situations especially in the production process and marketing.
• Things to consider in the application of 4 M's


  • Customers point of view in terms of their influences as to why they will buy a particular product
  • Your product aims to answer each consumer's wants or needs and meet with their expectations over the product
  • How do suppliers, value chain and supply chain affect the business and production
• Entrepreneurial venture


  • sole proprietorship
  • partnership
  • corporation
• Entrepreneur


  Finds way to introduce innovation from the production process to the marketing stage.
• Ordinary Business Person


  Simply imitates business practices and procedures.
• The Three Important Elements in the Production System

  • INPUT
  • OUTPUT
  • PRODUCTION PROCESS
• The Input includes the following:

  • Manpower
  • Materials
  • Machine
  • Design
  • Instructions
• Production process


  The stage of production where the materials are transformed into the final product with the aid of manpower and machine.
• Output


  The final product from the production process and distributed to the customers.
• 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


  • Manpower
  • Method
  • Machine
  • Materials
• Manpower


  The most serious and main factor of production.
• Manpower criteria that must be highly considered by the entrepreneur

  • Educational qualifications and experience
  • Status of employment
  • Number of workers required
  • Skills and expertise required for the job
• Materials


  The raw materials necessary in the production of a product.
• When the resources are below standard, the finished product will unsatisfactory as well.
• An Entrepreneur must consider the following for materials

  • Cost
  • Quality
  • Availability
  • Credibility of suppliers and waste
• Machine


  The 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 the following

  • 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 or production method

  The process or way of transforming raw materials to finished products.
• 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.
• Product


  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.
• Heterogeneous product


  Has dissimilar characteristics, parts, and physical appearance. It can be easily identified from other products.
• Homogeneous product


  Has a physical appearance, taste, or chemical content that can hardly be distinguished from that of the other products.
• Product description


  Promotes and explains what a product is and why it's worth buying. The purpose is to provide customers with details around the features and benefits of the product so they're obliged to buy.
• Supplier


  Plays a vital role. They are your business partners, without them your business will not live. A potential supplier who has loyalty and values your partnership, and would lead you to the fulfillment of your business objectives, mission and vision.
• 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.
• Important phases in developing your business model

  • Identifying the specific audience
  • Establishing business process
  • Recording business resources
  • Developing strong value proposition
  • Determining key business partners
  • Creating demand for today's generation strategy and being open for innovations
• Business Plan


  A document describing a company's business activities and how it plans to achieve its goals. Startup companies use business plans to get off the ground and attract outside investors. For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• Components found in a Business Plan

  • Introduction
  • Executive Summary
  • Management Section
  • Marketing Section
  • Financial Section
  • Production Section
  • Competitive Analysis
  • Market
  • Organizational chart
• Jessie 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.