entrep 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
• Innovation or creativity


  Defines the distinction between an entrepreneur and an ordinary business person
• 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 most serious issues in the whole production system are the inputs and the transformation process. Their quality determines the quality of the output
• Materials


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


  • Manpower
  • Method
  • Machine
  • Materials
• Manpower


  • Required skills for the job
  • Highly considered by the entrepreneur
• Materials


  • Form part of the finished product
  • Entrepreneur considers cost, quality, availability, credibility of suppliers, and waste
• Machine


  • Manufacturing equipment used in production
  • Entrepreneur considers types of products, production system, cost, capacity, availability of spare parts, efficiency, and required skills
• Method


  • Process or way of transforming raw materials to finished products
  • Dependent on product, mode of production, manufacturing equipment, and required skills
• The product is the physical output of the whole production process
• Heterogeneous product


  Has dissimilar characteristics, parts, and physical appearance
• Homogeneous product


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


  • Promotes and explains what a product is and why it's worth buying
  • Provides customers with details around the features and benefits
• Prototype


  • A duplication of a product as it will be produced, which may contain details like color, graphics, packaging and directions
  • An important early step in the inventing process
• Benefits


  Reasons why customers will decide to buy the products (e.g. affordability, efficiency, ease of use)
• Features


  Descriptive facts about the product or service
• Pretesting of the product or service is similar to a sample given to the consumer free of cost to try before committing to a purchase
• The entrepreneur's main concern is the satisfaction of the customer, as they are the lifeblood of the business
• Supplier


  • Plays a vital role as a business partner
  • Entrepreneur chooses a supplier with loyalty, values, and who can help fulfill business objectives
• Supply chain management systems


  Automate the flow of information among supply chain members to make better decisions about purchasing, production, and shipping
• Value chain


  • A method or activities by which a company adds value to an item, with production, marketing, and after-sales service
  • Aims to make or support a competitive advantage
• Supply chain


  A structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer
• Supply chain management


  • Manages a range of components and procedures like storing raw materials, inventory handling, warehousing, and product distribution
  • Improves flow of products and materials, minimizes delays, and increases visibility and traceability
• Business model


  • Describes how an organization creates, delivers, and captures value
  • Includes identifying audience, establishing processes, recording resources, developing value proposition, determining key partners, and creating demand
• A business plan serves the entrepreneur, investors/financiers, and the organization's managers and staff
• Components of a business plan

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


  The strategy where you identify major competitors and research their products, sales and marketing strategies
• Market


  Refers to the persons who will buy the product or services
• Organizational chart


  The diagram showing graphically the relation of one official to another, or others of a company