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M_ _P_W_R
MANPOWER
M_ _H_N_S
MACHINES
M_T_ _I _L _
MATERIALS
M_ _H_ _S
METHODS
4 M’s of Operations in Relation to
the Business Opportunity and
Developing Business Model
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 Material.
OUTPUT
[] Manpower
[] Machines
[] Materials
[] Methods
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.
Manpower
Educational qualifications and experience, status of
employment, numbers of workers required, skills and
expertise required for the job are some of the manpower
criteria that must be highly considered by the entrepreneur.
Machines

Discusses about manufacturing equipment used in the

production of goods or delivery of services.
Machines
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.
Materials
Talks about 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 be of
unsatisfactory as well. The entrepreneur may consider cost, quality,
availability, credibility of suppliers and waste that the raw material
may produce.
Methods
Production method discusses the process or way of
transforming raw materials to finished products. The
resources undergo some stages before it is finalized and
becomes 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.
Product Description
It is the promotion that 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
Prototyping
A duplication of a product as it will be
produced, which may contain such details
as color, graphics, packaging and
directions. One of the important early steps
in the inventing process is making a
prototype. 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. 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.
 Supplier
An entity that offers goods and services
to another business. This entity is among
of 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.
 Suppliers
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 to choose a potential
supplier that has loyalty and value your
partnership; a supplier that would lead you to the
fulfillment of your business objectives, mission
and vision.
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.
Business model describes the reasons 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 a part of business plan.It is a company's
plan for 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 a business
resources; developing strong value
proposition; determining key business
partners; and creating a demand for
today’s generation strategy and be
open for innovations.
Business plan is an important tool for you
to have an idea about the future of
your business. Your business plan will be
your guide in the moment you will be
implementing and operating your
business proposal. You can also make
use of the business plan in securing
investment capital from financial
institutions or lenders.
 It can also be used to influence people to work
for your enterprise, to secure credit from
suppliers, and to fascinate potential customers.

Read the stories of Jessie, Mercy and Monna

below to fully understand the
importance of having a business plan:
“Jessie is the eldest of five children of Mr. & Mrs.
Natividad. The family is having difficulty to
support for their everyday needs. Because of
this, Jessie tried to enter selling banana cue and
with his dream to make his business grow, he 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.”“Mercy is the youngest in
the family. She found out that she loves to cut
Until such time that her friends introduced her to
their friends too for haircut and make up when there
are occasions. Few months after, Mercy was told by
her friends to put up a beauty parlor in their place.
So she asks her mother who is also a
businesswoman to teach her how to make a
business plan and eventually ended with a
successful business.” “Monna is a diligent student.
Because of her knowledge gained from school about
business plan she was able to enhance her skills in
business and finally found herself into his laundry
Each scenario taught us that business is
not just about how much income or profit
you can get but it’s about the life of your
business. And in having a business, you
also have to consider technological
forces, Social forces, Political forces,
Cultural forces, Economic forces and
Legal forces.
 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
• Competitive Analysis- is the strategy where
you identify major competitors and research
their products, sales and marketing strategies.

• Market- The persons who will buy the product

or services

• Organizational chart- is the diagram

showing graphically the relation of one
official to another, or others of a company.
THANKS!