Lesson 01

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4 M’s of Production and Business Model

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4 Ms of Operations
in Relation to the
Business
Opportunity and
Developing
Business Model
 4 Ms of Operations
OUTPUT
PROCESS
INPUT

Manpower
Manpower (Final Product)
Materials
Materials Machine
Machine Method
Method
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Manpower
Talks about the human labor force involved in the manufacture of
products. it is measured as the most serious and main factor of
production. 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.
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Material
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 unsatisfactory
as well. The entrepreneur may consider cost, quality, availability, the
credibility of suppliers, and waste that the raw material may produce.
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Machine
Discusses 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 types of products to be
produced, production system to be adopted, cost of the equipment, the
capacity of the equipment, availability of spare parts in the local market, the
efficiency of the equipment and the skills required in running the
equipment.
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Method
Refers to the activities, decisions, and responsibilities of managing the
resources, which are dedicated to the production and delivery of
products and services. It can contribute to the success of the business by
using available resources to effectively produce products and services in
a way that satisfies the customers.
 Product
Description
-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
Guidelines for you to have a good product description

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.
 Prototyping
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 like 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.
 Are your business partners; without
them your business will not live. You
need them as much as you need your
... customers to be satisfied.

Suppliers

A structure of organizations, people,

A method or activities by which a
activities, data, and resources involved
company adds value to an item, with
in moving a product or service from
production, marketing, and the
supplier to customer.
provision of after-sales service.

Value Chain Supply

Chain
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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.
Business
Plan An important tool for you to have an idea about
the future of your business. Your business plan
will be your guide at the moment you will be
implementing and operating your business
proposal. It can also be used to influence people to
work for your enterprise, secure credit from
suppliers, and fascinate potential customers.
 Components found in a
Business Plan
Management Section
Executive Summary
Introduction Shows how you will
Part of the business manage your business
This part plan is the first to be and the people you need
discusses what is presented but the last to help you in your
the business plan to be made. operations.

all about.
 Class Recap
Marketing Section

Shows the design of your Financial Section

product/service; pricing,
where you will sell, and how Shows the money needed Product Section
you will introduce your for the business, how
Shows the area,
product/service to your much you will take in and
market. how much you will pay
equipment, and
out. materials needed for
the business.
 Components found in a
Business Plan
Organizational Chart
Market
Competitive Analysis
the diagram showing
the strategy where you The persons who graphically the relation
identify major of one official to another,
will buy the product
competitors and research or others of a company.
their products, sales and
or services
marketing strategies.
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Thank
You
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