entrep mod 6

• Manpower


  • Human labor force involved in the manufacture of products
  • Educational qualifications and experience
  • Status of employment
  • Number of workers required
  • Skills and expertise required for the job
• Materials

  • Raw materials necessary in the production of a product
  • Cost
  • Quality
  • Availability
  • Credibility of suppliers
  • Waste that the raw materials may produce
• Machine


  • Manufacturing equipment used in the production of goods or delivery of services
  • 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
  • Skills required in running the equipment
• The three important elements in the production system are input, the transformation of production process and the output
• The input includes manpower, materials, machine, design and 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
• Business model

  Describes the rationale of how an organization makes, transports, and captures value in economic, social, cultural or other contexts
• An entrepreneurial venture may either be a sole proprietorship, a partnership, or a corporation, engaged in merchandising, manufacturing, or service
• Innovation or creativity must, in almost all instances, be introduced and practiced by an entrepreneur
• An ordinary businessperson simply imitates business practices and procedures
• Innovation can be introduced from the production phase up to packaging and delivery
• Materials


  Raw materials necessary in the production of a product
• Four M's

  • Manpower
  • Method
  • Machine
  • Materials
• Manpower


  • Skills
  • Technology
  • Organization
  • Resources
  • Communications
• Machine


  • Types of products to be produced
  • Production system to be adopted
  • Cost of the equipment
  • Capacity of the equipment
  • Availability of spare parts
  • Efficiency of the equipment
  • Skills required in running the equipment
• Method


  • Product to produce
  • Mode of production
  • Manufacturing equipment to use
  • Required skills to do the work
• The product is the physical output of the whole production process
• Heterogeneous product


  Product with dissimilar characteristics, parts, and physical appearance
• Homogeneous product


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


  • Know your target market
  • Focus on the product benefits
  • Tell the full story
  • Use natural language and tone
  • Use power words that sell
  • Use good images
• Prototype


  Duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions
• Benefits


  Reasons why customers will decide to buy the products such as affordability, efficiency or ease of use
• Features


  Descriptive facts about the product or service
• 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
• The entrepreneur's main concern is the satisfaction of a customer, for they are the life blood of the business
• Supplier


  • Loyalty and values your partnership
  • Leads you to the fulfillment of your business objectives, mission and vision
• 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


  Method or activities by which a company adds value to an item, with production, marketing, and the provision of after-sales service
• Supply chain


  Structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer
• When value chain management is implemented effectively, the flow of products and materials is improved through the accurate forecasting of sales and demand as well as improved inventory management
• Supply chain management decreases purchasing cost
• Value chains help increase a business's efficiency so the business can deliver the most value for the least possible cost
• Business model


  Describes the factors of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts
• There are important phases in developing your business model, namely: identifying the specific audience; establishing business process; recording business resources; developing strong value proposition; determining key business partners; and creating demand for today's generation strategy and being open for innovations
• A business plan serves the entrepreneur who must set a navigational course, investors and cautious financiers, and the managers and staff of the organization so that they will know the strategies and programs of the enterprise
• Components of a Business Plan

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

  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