Apostolic Vicariate of Tabuk Catholic Schools System

SANTO ROSARIO SCHOOL OF PUDTOL, INC.

Emilia, Pudtol, Apayao

Entrepreneurship 11
Quarter 2- Module 1

Name: _________________________________ Grade and Section: ____________________ Date: _______________

4 M’s of Operations in Relation to the Business Opportunity and Developing a Business Model
In your previous lesson, you learned about the 7P’s of Marketing Mix; Product, Place, Price, Promotion, People,
Packaging and Positioning in relation to business opportunity, wherein marketing is about creating and accumulating
customers. Marketing plans are intended to capture a market portion and to setback competitors.
Brand name was also introduced, where it is a name, symbol, or other feature that distinguishes a seller’s goods or
services in the marketplace. Your brand is one of the greatest assets because your brand is your customers’ over-all
experience of your business.
Experts believe that a good brand can result in better loyalty for its customers, a better corporate image and a
more relevant identity.
Assessment Activity
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.

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
 Apostolic Vicariate of Tabuk Catholic Schools System
SANTO ROSARIO SCHOOL OF PUDTOL, INC.
Emilia, Pudtol, Apayao

Entrepreneurship 11
Quarter 2- Module 1

Name: _________________________________ Grade and Section: ____________________ Date: _______________

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.

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.
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

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
 Apostolic Vicariate of Tabuk Catholic Schools System
SANTO ROSARIO SCHOOL OF PUDTOL, INC.
Emilia, Pudtol, Apayao

Entrepreneurship 11
Quarter 2- Module 1

Name: _________________________________ Grade and Section: ____________________ Date: _______________

heterogeneous product has dissimilar characteristics, parts, and physical appearance. It can be easily identified from
other products. Entrepreneurial ventures that produce heterogeneous products include makers of furniture, bags, and home
decors.
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.
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.
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.
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. 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.
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. 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.
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 tochoose 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. 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 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.
A supply chain is a structure of organizations, people, activities, data, and resources involved in moving a product
or service from supplier to customer. 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.
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. Delays are also minimized and
products are visible and traceable throughout the supply chain.
Supply chain management decreases purchasing cost. Retailors depend on supply chains to quickly distribute costly
products to avoid sitting on expensive inventories. Any delay in production can cost a company tens of thousands of
pesos. This factor makes supply chain management ever more important.
Value chains help increase a business's efficiency so the business can deliver the most value for the least possible
cost. The end goal of a value chain is to create a competitive advantage for a company by increasing productivity while
keeping costs reasonable.
Activity No. 1
I.TRUE or FALSE. Write true if the statement is correct and false if its incorrect. Write your answer on the space
provided.

4 M’s ( Manpower, Method, Machine, Materials)

 Apostolic Vicariate of Tabuk Catholic Schools System
SANTO ROSARIO SCHOOL OF PUDTOL, INC.
Emilia, Pudtol, Apayao

Entrepreneurship 11
Quarter 2- Module 1

Name: _________________________________ Grade and Section: ____________________ Date: _______________

1. The "Manpower" component of the 4Ms focuses solely on the quantity of employees in an organization. ______
2. Efficient "Methods" are crucial for improving productivity and reducing operational costs.______
3. "Machines" in the 4Ms refer exclusively to automated equipment and exclude manual tools._______
4. The quality of "Materials" directly impacts the overall output and customer satisfaction. _______
5. Human skill levels and training are considered part of the "Manpower" in the 4Ms framework. _______
6. The "Methods" aspect of the 4Ms is concerned with creating standardized processes for consistent results. ______
7. In the 4Ms, "Machines" have no influence on the speed or efficiency of production.________
8. Ensuring a stable supply of high-quality "Materials" is a critical aspect of operational success._______
9. The 4Ms do not interact with each other; each component operates independently.________
10. Adjusting the 4Ms effectively can help an organization adapt to changes in market demand._______

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. It is a company's plan on how it will make revenues and make a profit. It
describes what products or services the business plans to manufacture and market, and how it plans to do so, as well as
what expenses it will incur. 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.
After developing a business model, we will proceed in developing a business plan. To be able to successfully complete
this module, you need to prepare a business plan and operate your plan and finally keep records of your business
transactions.
Business Plan
What is a Business Plan For?
Entrepreneurs who plan to enter any business endeavor must have a business plan on hand to guide them
throughout the process. Different business plans are prepared for different purposes. There are business plans written prior
to setting up an enterprise, which are similar to a prefeasibility study and a feasibility study. Many new enterprises need to
convince prospective business investors about the soundness and potential of their business.
There are business plans that are written during the first few years of the enterprise in order to guide the
entrepreneur on which strategies would be most beneficial for the enterprise to take. And there are business plans that are
focused on bringing the enterprise to a higher level of growth, a period where the enterprise has already reached its peak
and would want to enter into another endeavor by creating and re-establishing itself.
Clearly, a business plan serves many masters. First, it serves the entrepreneur who must set a navigational course.
Second, it serves investors and cautious financiers. And third, it serves the managers and staff of the organization so that
they will know the strategies and programs of the enterprise.
The following are the components found in a Business Plan.
Introduction - this part discusses what is the business plan all about.
Executive Summary - is part of the business plan 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.
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 - is 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
 Apostolic Vicariate of Tabuk Catholic Schools System
SANTO ROSARIO SCHOOL OF PUDTOL, INC.
Emilia, Pudtol, Apayao

Entrepreneurship 11
Quarter 2- Module 1

Name: _________________________________ Grade and Section: ____________________ Date: _______________

Organizational chart - is the diagram showing graphically the relation of one official to another, or
others of a company

Activity No. 1
I. General Directions: Answer the following questions based on your learnings about 4M’s of Production and Value
Chain or Supply Chain.
Write your answer on the space provided. Five (5) points for each correct answer for Problem No.1 and 2 points for each
correct answer in Problem No. 2.
Independent 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.”
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).
___________________________________

II. Complete the statements below and write your answers.

1. _____________ talks about human labor force involved in the manufacture of products. It is considered as the most
serious and main factor of production.
2. _____________ is about raw materials necessary in the production of a product.
3. _____________ refers to the process or way of transforming raw materials to finished products.
4. The purpose of a _____________________ is to provide customers with details around the features and benefits of the
product so they’re obliged to buy.
5. It is a duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and
directions. One of the necessary early steps in the inventing method is creating a _______________.
6. ____________ are your business partners, without them your business will not live.
7. ______________________ describes the reasons of how an organization creates, delivers, and captures value in
economic, social, cultural or other contexts.
8. ____________________ is an important tool for you to have an idea about the future of your business.
9. ____________________ is part of the business plan which is the first to be presented but the last to be made.
10.____________________ shows the design of your product/service; pricing, where you will sell and how you will
introduce your product/service to your market.

Activity No. 2

Direction: Answer the following questions based on the picture shown below. Write your answers in your
Entrepreneurship activity notebook. Two (2) points for each correct answer.

1. Are you familiar with the picture above? Give one example of a food business establishment that you think is famous
among teenagers today.
2. What do you think is the reason why this particular food business establishment became famous amongst teens
nowadays?
3. Do you know some other ways to enjoy their product other than coming in personally into their store and buying their
product for yourself?
4. Do you think such strategies are effective to make the business more productive? Why or why not?

Directions: Write True if the statement is correct, otherwise, write False if the statement is incorrect on the space provided
below.
 Apostolic Vicariate of Tabuk Catholic Schools System
SANTO ROSARIO SCHOOL OF PUDTOL, INC.
Emilia, Pudtol, Apayao

Entrepreneurship 11
Quarter 2- Module 1

Name: _________________________________ Grade and Section: ____________________ Date: _______________

______1. Output represents the final products from the production process and distributed to the customers.
______2. The 4M’s in the production operation are the materials, manpower, machine and money.
______3. Manpower in production operation refers to the workers involved in the production of goods.
______4. Product description is the marketing copy that explains what a product is and its benefits.
______5. Prototype is a replica of a product.
______6. Product to produce is one of the factors to be considered in the production method.
______7. Educational qualifications and experience is one of the criteria in considering manpower.
______8. Skills and expertise is not important in considering manpower.
______9. Benefits are the reasons why customers will decide to buy the products.
______10. Machine refers to the manufacturing equipment.
______11. Supplier is an entity that supplies goods and services to another organization.
______12. Supply chain is a system of organizations, people, activities, data and properties involved in moving a product
or service from supplier to customer.
______13. Business model describes the rationale of how an organization makes, transports, and captures value in
economic, social, cultural or other contexts.
______14. In selecting the type of equipment to purchase, the entrepreneur may consider cost and capacity of the
equipment.
______15. Value chain is the process or activities by which a company adds cost to an article, that includes production,
promotion, and providing of after-sales service.