You are on page 1of 199

Republic of the Philippines

Department of Education

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Familiarize Basic Concepts in


Entrepreneurship
Module no.1 Module Title: Familiarizing Basic Concepts in
Entrepreneurship
ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant
HOW TO USE THIS MODULE

Welcome to the Module Familiarizing Basic Concepts in Entrepreneurship.


This module contains training materials and activities for you to complete.

The unit of competency Familiarize Basic Concepts in


Entrepreneurship contains the knowledge, skills and attitudes required for
the course Entrepreneurship.

You are required to go through a series of learning activities in order to


complete each of the learning outcomes of the module. Follow these activities
on your own and answer the Self-Check at the end of each learning activity.
If you have questions, dont hesitate to ask your teacher for assistance.
TABLE OF CONTENTS

Module Title: Familiarizing Basic Concepts in Entrepreneurship Page

Pre-Test ......................................................................................................... 1
Lesson 1 Explain the Concept of Entrepreneurship ................................... 4
Let Us Study .................................................................................................. 4
Entrepreneurship and Socio-Economic Development ....................................... 4
Activity .......................................................................................................... 6
Let Us Remember ........................................................................................... 7
How Much Have You Learned? ........................................................................ 8
Reference ....................................................................................................... 9
Lesson 2 Identify Desirable Characteristics of a
Successful Entrepreneur based on PECs ................................................... 9
Let Us Study ................................................................................................... 9
Characteristics and Qualities of a Successful Entrepreneur........................... 10
Personal Entrepreneurial Characteristics Cluster and Behavioral Indicators.. 12
Activity 1....................................................................................................... 14
Activity 2....................................................................................................... 15
Let Us Remember ......................................................................................... 21
Reference ..................................................................................................... 22
Post-Test ....................................................................................................... 23
Key to Correction .......................................................................................... 25
MODULE I

COURSE : ENTREPRENEURSHIP II

UNIT OF COMPETENCY : Familiarize Basic Concepts in


Entrepreneurship

MODULE TITLE : Familiarizing Basic Concepts in


Entrepreneurship

SUGGESTED DURATION : 4 Hours

WHAT IS THIS MODULE ABOUT?


This module covers the knowledge, skills and attitude required in order
to become an entrepreneur. It includes the concept of entrepreneurship, the
important role, qualities, as well as the strengths and weaknesses of
entrepreneurs.

WHAT WILL YOU LEARN?

Upon completion of this module, you will be able to:


1. explain the concept of entrepreneurship; and
2. identify and differentiate behavioral indicators in the Personal
Entrepreneurial Characteristics (PECs) Clusters.

WHAT DO YOU ALREADY KNOW?

Pre Test

Let us find out how much you already know. Read and understand the
items being described below. Choose the letter of the correct answer and write
it in your quiz notebook.

1. Which of the following is the index of entrepreneurship?


a. Developing a small elite class
b. Transforming ideas into economic opportunities
c. Searching, identifying and developing raw materials
d. Innovating and developing new products and services

1
2. Which of the following is NOT closely associated with entrepreneurship?
a. flexibility factors
b. change and creativity
c. knowledge and innovation
d. leadership
3. What happens when entrepreneurial activities slow down?
a. Income is evenly distributed
b. Tax revenues are increased
c. Quality of life is improved
d. Countrys unemployment rate goes up
4. Which of the following is NOT true about entrepreneurship?
a. Entrepreneurship contribute significantly to the continuous
improvement of living standards
b. Entrepreneurship helps the development of a handful of people
getting rich through enterprise
c. Entrepreneurship activities slow down the countrys unemployment
rates
d. Entrepreneurship provides an opportunity for making unproductive
use of capital resources
5. An entrepreneur is aware of ________________?
a. his familys activities
b. his business competitors
c. the way he carries himself in public
d. the demand for products or services in his community
6. Self-discipline is important in putting up a business. Which statements
below contribute to the success of an entrepreneur?
a. Develop the ability to get things done, even when you dont feel like it
b. Dedicate yourself in improving your leadership, skills and abilities
c. Being able to appeal to other peoples emotions in selling your ideas,
products or services
d. Identify a profitable market and then build your business
7. To communicate effectively is one quality of a good entrepreneur. Which
of the options below is the most important?
a. Sales ability
b. Self discipline
c. Strong work ethics
d. Strong leadership qualities
8. In business, it is the survival of the fittest that counts. Which of the
statements below best describes competitiveness?
a. Identify a profitable market and build your business
b. Make an effort to genuinely like, respect and appreciate other people
c. Learn self discipline with the right information and conscious efforts
d. Play to win, but never to sacrifice your integrity for the sake of a few
pesos.

2
9. Which PECs behavioral indicator meets or beats existing standards of
excellence to improve performance?
a. Opportunity seeking
b. Persuasion and networking
c. Demand for quality and efficiency
d. Commitment to the work contract
10. Which of the following statements is not a good PECs indicator?
a. Developing and using alternatives to monitor progress
b. Ready to adopt to alternatives or strategies when necessary
c. Developing systematic plans and monitoring activities and
performance
d. Accomplish business objectives and use of network of friends and
acquaintances

3
LESSON 1

EXPLAIN THE CONCEPT OF ENTREPRENEURSHIP

WHAT IS THIS LESSON ABOUT?

This lesson discusses the concepts of entrepreneurship. It includes its


meaning, objectives, importance, and role to socio-economic development.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:


1. give the importance of entrepreneurship; and
2. explain the role of entrepreneurship in socio-economic development.

LET US STUDY

Words to Study

Economy is the system by which the production and consumption of goods


and services is organized in a country or community.
Employment is the state of being employed or having a job; the occupation
for which you are paid.
Enterprise is any activity which provides customers with a product
(goods/services) with a view to making a profit.
Entrepreneurship is the practice of starting new organizations, particularly
new business, generally in response to identified opportunities.
Small business is one that is independently owned and operated by the
owner.

One of the current issues under consideration at the moment is the


problem of unemployment. As you can understand, the importance of getting
work for all citizens has become a priority concern for the government.

Entrepreneurship and Socio-Economic Development

Transforming ideas into economic opportunities is the index of


entrepreneurship. You only have to be a keen observer of what is

4
happening in your environment. There and then you can formulate what
business you can later on engage in.

Entrepreneurship is the capacity for innovation, investment and creation


and expansion in new markets, products and techniques. It has an extra
ordinary feature which is the creation of something new or something
unique. It is also a new way of making something out of something that
already exists thus, creating new markets.

Economically, entrepreneurship invigorates markets. The formation of


new business leads to job creation and has a multiplying effect on
economy.

Socially, entrepreneurship empowers citizens, generates innovation and


changes mindsets. These changes have the potential to integrate
developing countries into the global economy.

Entrepreneurship is an important factor in economic development. This


means that a country or society with a lot of entrepreneurs would tend to
be a productive community and thus produce wealth and spur economic
development.

The following benefits that result from entrepreneurship explain why


development takes place when a society becomes entrepreneurial:

1. Entrepreneurship creates employment

When entrepreneurs put up a business, they often need to hire at least one
or two other people in order to get things done. In fact, some businesses
employ hundreds and even thousands of workers.

2. Entrepreneurship improves the quality of life

Entrepreneurs continuously innovate and develop new products and


services based on what they perceive to be the needs of the society. They also
look for ways by which these goods and services could be more efficiently
produced. Such innovative efforts lead to better machines and a more
efficient production system. The development of new products and the
delivery of needed services make life easier and comfortable for society.

5
3. Entrepreneurship contributes to a more equitable distribution of
income and therefore eases social unrest.

By putting up an enterprise in the locality, entrepreneurs are actually


dispersing the benefits of development to other parts of the country.

When income is evenly distributed, entrepreneurship flourishes.


People have more money to buy the products and services they need,
thereby bringing in more profits to entrepreneurs. At the same time, people
may also have enough to invest on enterprises of their own, thus increasing
the supply of entrepreneurs.

The eradication of poverty will help solve social problems like crime,
juvenile delinquency, and malnutrition.

4. Entrepreneurship utilizes resources for national productivity.

Our country will develop faster economically if all its resources are
maximized. For example, in the rural areas we have vast agricultural areas
for the production of cereals and vegetables. If these areas are developed
and used to the maximum, the government need not to import rice and
other cereal products and other agricultural products, thus, it saves much
for the country.

5. Entrepreneurship brings social benefits through government.

With the revenues the government collects from taxes, duties, and licenses
paid by the entrepreneurs, the government allocate the money to different
services to the communities. These services come in the form of
infrastructure facilities such as roads and bridges, educational and medical
services and facilities, and maintenance of peace and order.

Activity:

With the readings presented to you, you are now convinced that you can
be an entrepreneur and that you can help alleviate poverty in our country.
If you wish to start a business and become an entrepreneur, what will be
your personal gains? List at least 3 Personal Gains:
What would your community and your country gain if you establish a
business and become an entrepreneur?

6
Give at least 3 Personal Gains in your business (My gain, Community
Gain and Country Gain) by considering the table below.
My Businesses My Gain Community Gain Country Gain
1.
2.
3.

LET US REMEMBER

Entrepreneurship can bring valuable benefits such as self-employment for


people, improvement in goods and services, use of local raw materials, and
increased income for themselves which help improves the quality of life of
the people.

HOW MUCH HAVE YOU LEARNED?

Directions: Choose the correct answer from the options under each item. Write
the letter of the correct answer in a sheet of paper.

1. Which of the following best describe entrepreneurship?


a. has the capacity for innovation, investment and creation of
markets, products and techniques
b. empowers citizens, generates innovation and changes mindsets
c. creates employment
d. a, b, and c
2. The state of being employed or having a job refers to .
a. job creation
b. employment
c. occupation
d. entrepreneurship
3. Every activity that an individual undertake in and out of the school
prepares one to be productive in the future. A productive individual is
one who is .
a. able to make a living for himself out of his own effort
b. able to transforms ideas into productive endeavor
c. able to influence others to engage in business
d. a and b
4. What happens when entrepreneurial activities slow down?
a. Unemployment
b. Improve quality of life
c. Increase tax revenues
d. Even distribution of income

7
5. Which of the following is the index of entrepreneurship?
a. Developing a small elite class
b. transforming ideas into economic opportunities
c. searching, identifying and developing raw materials
d. innovating and developing new products and services

LET US APPLY WHAT YOU HAVE LEARNED

Identify a progressive community/ commercial center within your


immediate community. Interview a successful businessman/ entrepreneur in
that area and find out from him/ her how he is helping the community (in
particular) and the Philippines (in general) because of his business
establishment. Prepare and present a report on this interview tomorrow.

REFERENCES:

Asuncion, Jr. Ramon G.; et.al.; Entrepreneurship: Abiba Publishing House,


INC: Copyright 1992.

Leuterio, Florida C.; Technology and Livelihood Education for Sustainable


Development: St. Augustine Publications, Inc.: Don Quijote St.,
Sampaloc, Manila Philippine Copyright 2005.

Suratos, Cesar P. and J. S. Simpliciano; Technology and Livelihood Education


II: Latest Edition, St. Bernadette Publications, Inc.: Cubao, Quezon City
2006

Principe, June B. et.al.; Technology and Home Economics for Secondary


Schools Fourth Year: FNB Educational, Inc.: #2 Uranus St., Corner
Jupiter Street, Congresional Subdivision, Project 6, Quezon City. 2000

Technology and Home Economics III. Business Technology, Business


Management I. Experimental Education, 1993.

http://www.isquare.com/qualities.cfm
http:www.wikieducator.org/VUSSC/Content/Entrepreneurship/Starting-Up-a-
Business/Objectives

8
LESSON 2

IDENTIFY DESIRABLE CHARACTERISTICS OF A SUCCESSFUL


ENTREPRENEUR BASED ON PECs

WHAT IS THIS LESSON ABOUT?

This lesson deals with the desirable characteristics of a successful


entrepreneur based on the behavioral indicators of Personal Entrepreneurial
Characteristics (PECs) cluster

WHAT WILL YOU LEARN?

At the end of the lesson you should be able to:

1. identify the desirable characteristics of a successful entrepreneur;


2. explain and differentiate the clusters of Personal Entrepreneurial
Characteristics (PECs); and
3. recognize and differentiate the behavioral indicators of each cluster.

LET US STUDY

Words to Study

Integrity - uprightness of character, honesty


Innovation - acts of introduction something new
Obstacle - a hindrance or obstruction in either physical or moral sense
Opportunity - a favorable or advantageous circumstance
Passion - a powerful emotion, such as love joy
Persistence - act of persisting in any course or enterprise; perseverance
Risk - the possibility of suffering harm or loss

Do you have a strong desire to become a successful entrepreneur? Would


you like to know if you have what it takes to build a successful business?

9
1. Integrity - someone once said, Right is right
even if no one is doing it, and wrong is wrong even
Characteristics if everyone is doing it We all hear stories about
corporate greed and corruption. However, the
truth is, successful entrepreneurs are rated being
honest with everyone the number one factor of
their success.
and
2. Self discipline to become a successful
entrepreneur you have to be highly disciplined. If
you are trying to build a business from the ground
up, you will be faced with doing all the job
Qualities functions of a company, such as accounting,
marketing and costumer service. You have to
develop the ability to get things done, even when
you dont feel like it. Luckily, you learn self-
discipline with the right information and conscious
of effort.

3. People skills - another critical factor among


a successful entrepreneurs is having good people
skills. You should make an effort to genuinely like,
respect, and appreciate other people. The ability to
win people over will carry you far in all walks of
life, especially your own business.
Successful

4. Strong work ethics theres no substitute for


hard work when it comes to becoming a successful
Entrepreneur entrepreneur. Most people want to do the fastest
and easiest solution when it comes to work. To be
successful, dedicate yourself to persistent,
productive, and old fashioned hard work.

10
5. Passion you need to be passionate about your
business. This doesnt necessarily mean you have
to build a business around something you love.
You should identify a profitable market and then
build your business.
Characteristics Loving your business will also make it easier
to get through the start-up phase, and other
future obstacles.

and
6. Strong leadership qualities- being able to
communicate effectively, motivate others, sell your
ideas, and be decisive, are just a few qualities of a
good leader. In order to become a successful
entrepreneur you must dedicate yourself of
Qualities
improving your leadership and abilities.

7. Competitiveness competition is everywhere.


of In business, it is the survival of the fittest. If you
can out market and outperform your competitors,
your chance of being a successful entrepreneur
will be much better. Play to win, but never
sacrifice your integrity for the sake of a few bucks.
a

8. Well-organized One of the main reason why


small businesses fail is lack of organization.
Successful Everyone can learn organization skills with enough
hard work, practice and persistence.

Entrepreneur 9. Sales ability- The ability to convince others to


make a conscious decision is a key of becoming a
successful entrepreneur People dont buy for
logical reasons. They buy for emotional reasons.
Being able to appeal to other people emotions is
the key to selling your ideas, products or services.

11
Personal Entrepreneurial Characteristics Clusters and Behavioral
Indicators

Behavioral scientists and psychologists who have been studying


entrepreneurs found that successful entrepreneurs all over the world have
some characteristics in common. They were able to identify ten personal
entrepreneurial characteristics (PECs) under the following clusters:

I. Achievement Cluster

Successful entrepreneurs are people who accomplish things. They have


what psychologists call the need to achieve They want to perform tasks
excellently not only for prestige or money but for the sake of excellence itself.
When entrepreneurial individual work on something, they like to know
afterwards that it was a job well done and this alone is enough to make them
happy.

Achievers rate high in the following PECs

1. Opportunity-Seeking. An entrepreneur is said to be a good opportunity-


seeker if he sees and acts on new business opportunities and seizes
unusual opportunities to acquire financing, equipment, land and work
space or assistance.

2. Persistence. A persistent individual is one who

a. takes different actions to overcome an obstacle


b. makes personal sacrifice or spends extraordinary efforts to
complete a job
c. sticks to his judgments in the face of opposition or early lack of
success

3. Commitment to the Work Contract. The true-blue entrepreneur is


committed to the work that he has agreed to do. When he accepts a job,
he takes full responsibility for its completion. No job is too small, too
dirty or too difficult to be done. When necessary, he pitches in for
workers to get things done. He exerts extra effort to satisfy the costumer.
In the end, if he fails he would take full measure of the blame. But if he
succeeds, he expects to get full credit.

4. Risk Taking. A gambler is a person who takes high risks and so he


tends to lose all his money and even his shirts in the end. An
entrepreneur is not a gambler. A successful entrepreneur takes
calculated, moderate, or reasonable risks where he perceives the chances
for winning to be good. In other words, he states a preference for
situations that involve moderate risks.
12
5. Demand for Quality and Efficiency. A true entrepreneur is not satisfied
with mediocre work. He sets a high standard of performance. The high
standard of performance makes him act to meet or exceed existing
standards of excellence or improve on past performance. He strives to do
things better, faster, or cheaper.

II. Planning Cluster

Going into business is the result of deliberate goal-setting, tireless


information-seeking and systematic planning and monitoring by the
entrepreneur.

a. Goal-Setting. An entrepreneur always thinks not only of what he wants


to accomplish day-to-day but also in one, two, or five years from now.
In other words, he sets clear and specific short-and-long term
objectives. He thinks of todays activity as a small step towards that
which he eventually wants to accomplish.
b. Information-Seeking. As a careful planner, the successful
entrepreneur always makes it a point to seek information that is
relevant and useful to his present or future business. He obtains
information from clients, suppliers, experts, competitors, contacts, and
information networks. He also consults experts for business or
technical advice.
c. Systematic Planning and Monitoring. The successful entrepreneur
does not only set short-and-long term goals. He does not only seek
information regularly. He also systematically plans and monitors his
activities and performance. He develops and uses alternatives and
monitors his progress. He is ready to switch to alternative strategies
when necessary to achieve his goals.

III. Power Cluster

The personal motto of a successful entrepreneur is I can. He thinks


that he can achieve things; he can convince people to his way of thinking; he
can influence the outcome of events. He is a natural leader. He is decisive and
he believes in his power.

a. Persuasion and networking. A persuasive person who readily


establishes a network or personal business contracts around him
usually makes a good entrepreneur. In order to persuade others, the
entrepreneur uses deliberate strategies. In order to accomplish his
business objectives he uses his network of useful friends and
acquaintances.

13
b. Self-Confidence. The entrepreneur exudes self-confidence. He
strongly believes in himself and his own abilities. No challenge is too
difficult nor is a task too big that the entrepreneur would indulge in
self-doubt. When he enters a business, it is because he is confident
that the business would be successful and profitable.

Activity 1

Almost anyone can develop the qualities necessary to succeed as an


entrepreneur. To illustrate, consider this question.

Who among the following is the most successful entrepreneur?

1. A 35 year-old farmer who has owned a two hectare pineapple plantation


for 10 years, makes just enough to get by, but loves what he is doing,
and calls everyone in the barangay a friend.

2. A 30 year-old CEO of a software firm who works 70 hours a week, stays


stressed, never sees his family, but makes five million pesos in revenue
per year.

3. A 35 year-old single mom who makes money online with internets, and
gets to spend all the time she wants with her kids.

4. A 22 year-old college dropout who created a few websites that he


manages a few hours per week and now makes enough to travel the
world, spends time with friends and family, and pursues his favorite
hobbies.

14
Activity 2

INSTRUCTIONS

I. This questionnaire contains 85 sentences. Read each one and decide


which describes you better. Be honest to yourself. The questionnaires
purpose is to help you make a self-evaluation; it is not a test and
there are no correct/wrong answers.
II. Choose the number associated to the sentence that describes your
behavior:

1. never
2. seldom
3. sometimes
4. most of the time
5. always

III. Write down the chosen number on the blanks provided for in each
sentence. See example:

I keep myself calm in these tense situations.

The person considered feels that the situation above seldom describes
his/her behavior; therefore he/she writes the number 2 on the
blanks.

15
PECS SELF-RATING QUESTIONNAIRE

1. I look for things that need to be done. ______


2. I like challenges and new opportunities. ______
3. When I face a difficult problem,
I spend a lot of time to find a solution. ______
4. When I begin a work or project,
I gather all possible information available. ______
5. I get upset when things are not done well. ______
6. I make an effort to accomplish my work. ______
7. I find ways doing things faster. ______
8. I establish my own goals. ______
9. I plan a big job by dividing it into several small tasks. ______
10. I think of different solutions to solve problems. ______
11. I tell people when they do not perform as expected. ______
12. I feel I will succeed in any activity I engage. ______
13. I get support by others for my suggestions. ______
14. I develop strategies to influence others. ______
15. I compare my achievements to my expectations. ______
16. I know how much money is necessary
to develop my projects or activities. ______
17. I listen carefully to any person who talks to me. ______
18. I know what needs to be done;
I dont need anyone to tell me what to do. ______
19. I prefer to accomplish task
that I dominate and feel safe doing them. ______
20. I insist several times to get someone to do what I want. ______
21. I search for advice from people
who know about the different aspects of my business ______
22. It is important for me to do high quality work. ______
23. I work for several hours and make
personal sacrifices in order to finish my work in time. ______
24. I dont use my time in the best possible way. ______
25. I do things without a specific target in mind. ______
26. I carefully analyze the advantages
and disadvantages of several ways to execute a task. ______
27. I have my mind focused on many projects at the same time. ______
28. If I dislike someones attitude, I tell him/her. ______
29. I change my way of thinking
if other people strongly disagree with my point of view. ______
30. I convince other people of my opinions. ______
31. I dont spend a lot of time thinking
how to influence other peoples ideas. ______
32. Regularly I check how far I am
from achieving the goals I have set. ______
33. I know how much money
16
I can expect in return for my projects. ______
34. I get upset when I dont do what I want. ______
35. I do things even before it is clear to me
how they should be done. ______
36. I look for opportunities of doing new things. ______
37. When something hinders what I am trying to do,
I try to find other ways to accomplish my task. ______
38. I often do things without looking for
some information concerning the task. ______
39. My results at work are better than those from
people who work with me. ______
40. I do what it takes to have my work done. ______
41. I get upset when I waste time. ______
42. I do things that help me accomplish my objectives. ______
43. I try to anticipate all the problems that might happen and think
of what can be done in any case any of them take place. ______
44. Once I have chosen my solution to a problem,
I dont change it. ______
45. It is difficult for me to instruct people
on what they should do. ______
46. When I try something difficult or something
that challenges me. I feel confident I will succeed. ______
47. I show people I am capable
of executing the task they have for me. ______
48. I seek important people to help me reach my goals. ______
49. I dont know how far I am from achieving my goals.
50. I dont care for the financial consequences of my acts. ______
51. I have failed in the past. ______
52. I do things before they become urgent. ______
53. I try to find new tasks,
different from the ones I have already done. ______
54. When I face a great difficulty, I look for other tasks. ______
55. When I have to do a job for someone, I ask many
questions to be sure I understood what he/she wants. ______
56. When my work is satisfactory,
I dont depend more time trying to improve it. ______
57. When I am doing something for another person, I make
a lot of effort so he/she is very satisfied with my work. ______
58. I seek cheaper ways of doing things. ______
59. My goals correspond to what is important to me. ______
60. I face problems when they appear
instead of anticipating them. ______
61. I think of different ways of solving problems. ______
62. I show when I disagree to someone. ______
63. I do risky things. ______
64. I am very persuasive with other people. ______
17
65. When trying to reach my goals, I look for
solutions that would be positive for all people involved. ______
66. I coordinate the performance of people who work with me. ______
67. I have good control of my finances. ______
68. There have been times when I took advantage of people. ______
69. I wait for the orders of someone else, and then I act. ______
70. I take advantage from opportunities as they appear. ______
71. I try several ways to overcome the obstacles that disturb the
accomplishment of my goals. ______
72. I look for different sources of information
that could help me in my tasks or projects. ______
73. I want my business to be the best in the branch. ______
74. I dont let my work interfere with my personal life. ______
75. Most of the money I use in my project or work is borrowed. ______
76. I have a clear vision of where I intend to get in the future. ______
77. I have logical and systematic approach of my activities. ______
78. If a way of solving a problem doesnt work out, I try another. ______
79. I tell people what they have to do,
even if they dont want to do it. ______
80. I stick to my decision, even when other people
strongly disagree with me. ______
81. I cant change peoples opinion,
even with my strongest points of view. ______
82. I know who is able to help me to reach my objectives. ______
83. When I work with a deadline, I check regularly
if I will be able to finish my work in time. ______
84. My projects include financial information. ______
85. I have no problems to recognize something I dont know. ______

18
SCORE SHEET PECs SELF RATING QUESTINNAIRE

Instructions:
1. Write down the answer for each sentence on the lines above the
correspondent number of the statement. Note that the numbers of
statements are serial in each column.
2. Make the calculation indicated in each line to compute the points for each
characteristic.
3. Sum up all the point obtained for each characteristic to obtain the total
score.

Choice for the statements Score Characteristic


____ + _____ + _____+ _____ + _____ + 6
(1) (18) (35) (52) (69) = _____ Shows initiative
____ + _____ + _____+ _____ + _____ + 6
(2) (19) (36) (53) (70) = _____ Is aware of opportunities and
____ + _____ + _____+ _____ + _____ + 6 takes advantages of them
(3) (20) (37) (54) (71) = _____ Is perseverant
____ + _____ + _____+ _____ + _____ + 6
(4) (21) (38) (55) (72) = _____ Searches for information
____ + _____ + _____+ _____ + _____ + 6
(5) (22) (39) (56) (73) = _____ Is aware of the importance of
____ + _____ + _____+ _____ + _____ + 6 high-quality work
(6) (23) (40) (57) (74) = _____ Knows the importance of
____ + _____ + _____+ _____ + _____ + 6 fulfilling tasks
(7) (24) (41) (58) (75) = _____ Is efficiency oriented
____ + _____ + _____+ _____ + _____ + 6
(8) (25) (42) (59) (76) = _____ Is objective oriented
____ + _____ + _____+ _____ + _____ + 6
(9) (26) (43) (60) (77) = _____ Makes systematic planning
____ + _____ + _____+ _____ + _____ + 6
(10) (27) (44) (61) (78) = _____ Looks for solutions for
____ + _____ + _____+ _____ + _____ + 6 problems
(11) (28) (45) (62) (79) = _____
____ + _____ + _____+ _____ + _____ + 6 Is assertive
(12) (29) (46) (63) (80) = _____
____ + _____ + _____+ _____ + _____ + 6 Is self confident
(13) (30) (47) (64) (81) = _____
____ + _____ + _____+ _____ + _____ + 6 Is persuasive
(14) (31) (48) (65) (82) = _____
____ + _____ + _____+ _____ + _____ + 6 Uses strategies to influence
(15) (32) (49) (66) (83) = _____ people
____ + _____ + _____+ _____ + _____ + 6
(16) (33) (50) (67) (84) = _____ Monitors goals, achievements
____ + _____ + _____+ _____ + _____ + 6 and performances\
(17) (34) (51) (68) (85) = _____ Is aware of the importance of
FINAL SCORE = ______________________ financial information
(Entrepreneurial Profile) Correction Factor

19
PECs SELF RATING QUESTIONNAIRE - RESULTS
PROFILE
Shows initiative

Is aware of opportunities and


takes advantages of them
Is perseverant

Searches for information

Is aware of the importance of


high-quality work
Knows the importance of
fulfilling tasks
Is efficiency oriented

Is objective oriented

Makes systematic planning

Looks for solutions for


problems
Is assertive

Is self confident

Is persuasive

Uses strategies to influence


people
Monitors goals, achievements
and performances\
Is aware of the importance of
financial information
Correction Factor

5 10 15 20 25

20
LET US REMEMBER

Early exposure to an enterprise culture and adequate training,


especially during youth or childhood, can help develop the qualities of
an individual and increase the chances of a successful
entrepreneurial career later.

Application Exercise

List your own PECs. Do you think you possess the PECs to become a
successful entrepreneur? What PECs do you still need to develop in order to
become a successful entrepreneur? Why?

HOW MUCH HAVE YOU LEARNED?

Directions: Choose the correct answer from the options under each item. Write
the letter of the correct answer in a sheet of paper.

1. Self discipline is important in putting up a business. Which selection


below contributes to the success of an entrepreneur?
a. Develop the ability to get things done, even when you dont feel like
doing it
b. Dedicate yourself in improving your leadership, skills and abilities
c. Being able to appeal to other peoples emotions in selling your
ideas, products or services
d. Identify a profitable market and then build your business
2. To communicate effectively is one quality of a good entrepreneur. Which
of the options below is the most important?
a. Strong leadership qualities
b. Strong work ethics
c. Sales ability
d. Self discipline
3. In business, it is the survival of the fittest that counts. Which one of
these best describes competitiveness?
a. Play to win, but never to sacrifice your integrity for the sake of a
few bucks
b. Learn self discipline with the right information and conscious
efforts
c. Make an effort to genuinely like, respect and appreciate other
people
d. Identify a profitable market and build your business
4. Which PECs behavioral indicator meets or beats existing standards of
excellence to improve performance?
a. commitment to the work contract
b. demand for quality and efficiency
21
c. opportunity seeking
d. persuasion and networking
5. Which of the statements below is NOT a good indicator of the PECs?
a. Developing systematic plans and monitoring activities and
performance
b. Developing and using alternatives to monitors progress
c. Ready to adopt to alternatives or strategies when necessary to
achieve goals
d. Accomplish business objectives and use network of friends and
acquaintances

REFERENCES:

Asuncion, Jr. Ramon G.; et.al.; Entrepreneurship: Abiba Publishing House,


INC: Copyright 1992.

Leuterio, Florida C.; Technology and Livelihood Education for Sustainable


Development: St. Augustine Publications, Inc.: Don Quijote St.,
Sampaloc, Manila Philippine Copyright 2005.

Suratos, Cesar P. and J. S. Simpliciano; Technology and Livelihood Education


II: Latest Edition, St. Bernadette Publications, Inc.: Cubao, Quezon City
2006

Principe, June B. et.al.; Technology and Home Economics for Secondary


Schools Fourth Year: FNB Educational, Inc.: #2 Uranus St., Corner
Jupiter Street, Congresional Subdivision, Project 6, Quezon City. 2000

Technology and Home Economics III. Business Technology, Business


Management I. Experimental Education, 1993.

http://www.isquare.com/qualities.cfm

http:www.wikieducator.org/VUSSC/Content/Entrepreneurship/Starting-Up-a-
Business/Objectives

DTI provided PECs, Go Negosyo Teen Edition 2007, Teachers Camp, Baguio
City

22
Post-Test

Let us find out how much you have learned. Read and understand the items
being described below. Choose the letter of the correct answer and write it in
your quiz notebook.

1. Which of the following is the index of entrepreneurship?


a. Developing a small elite class
b. transforming ideas into economic opportunities
c. searching, identifying and developing raw materials
d. innovating and developing new products and services
2. Which of the following is NOT closely associated with entrepreneurship?
a. flexibility factors
b. change and creativity
c. knowledge and innovation
d. none of these
3. What happens when entrepreneurial activities slow down?
a. Income is evenly distributed
b. Tax revenues are increased
c. Quality of life is improved
d. Countrys unemployment rate goes up
4. Which of the following is NOT true about entrepreneurship?
a. Entrepreneurship contributes significantly to the continuous
improvement of living standards
b. Entrepreneurship helps the development of a handful of people
getting rich through enterprise
c. Entrepreneurship activities slow down the countrys unemployment
rates
d. Entrepreneurship provides an opportunity for making unproductive
use of capital resources
5. An entrepreneur is aware of _______________.
a. his familys activities
b. his business competitors
c. the way he carries himself in public
d. the present demand for certain products or services in his community
6. Self discipline is important in putting up a business. Which statements
below contributes to the success of an entrepreneur?
a. Develop the ability to get things done, even when you dont feel like it
b. Dedicate yourself in improving your leadership, skills and abilities
c. Being able to appeal to other peoples emotions in selling your ideas,
products or services
d. Identify a profitable market and then build your business
7. To communicate effectively is one quality of a good entrepreneur. Which
of the options below is the most important quality?
a. Sales ability
b. Self discipline
23
c. Strong work ethics
d. Strong leadership qualities
8. In business, it is the survival of the fittest that counts, Which of the
statements below best describes competitiveness?
a. Identify a profitable market and build your business
b. Make an effort to genuinely like, respect and appreciate other people
c. Learn self discipline with the right information and conscious efforts
d. Play to win, but never to sacrifice your integrity for the sake of a few
pesos.
9. Which PECs behavioral indicator meets or beats existing standards of
excellence to improve performance?
a. Opportunity seeking
b. Persuasion and networking
c. Demand for quality and efficiency
d. Commitment to the work contract
10. Which of the statements below is NOT a good indicator of the PECs?
a. Developing and using alternatives to monitor progress
b. Ready to adopt to alternatives or strategies when necessary
c. Developing systematic plans and monitoring activities and
performance
d. Accomplish business objectives and use of network of friends and
acquaintances

24
KEY TO CORRECTIONS

PRE-TEST

1. b 6. a
2. d 7. d
3. d 8. d
4. b 9. c
5. d 10. d

Lesson 1
1. d
2. b
3. d
4. a
5. b

Lesson 2
1. a
2. d
3. a
4. b
5. d

POST-TEST
1. b 6. a
2. d 7. d
3. d 8. d
4. b 9. c
5. d 10. d

25
Republic of the Philippines
Department of Education

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Acquire Fundamental Skills in


Managing a Business
Module no.2 Module Title: Acquiring Fundamental Skills in
Managing a Business
TABLE OF CONTENTS

Module Title: Acquiring Fundamental Skills in Managing a Business Page

Pre-Test .......................................................................................................... 1
Lesson 1 Acquire Fundamental Skills in Managing a Business .................... 5
Let Us Study .................................................................................................. 5
Management Functions of Entrepreneurs ....................................................... 5
Let Us Remember ......................................................................................... 12
Activity ........................................................................................................ 12
How much have you learned?........................................................................ 12
Let us apply what you have learned ............................................................. 14
Reference ..................................................................................................... 14
Lesson 2 Differentiate the Legal Forms of Business Ownership................. 16
Let us study ................................................................................................. 16
Deciding the business ownership .................................................................. 16
Let us remember .......................................................................................... 19
Activity ......................................................................................................... 19
How much have you learned?........................................................................ 20
Let us apply what you have learned ............................................................. 21
Reference ..................................................................................................... 21
Post-Test ................................................................................................... 22
Key to Correction .......................................................................................... 25
HOW TO USE THIS MODULE

Welcome to the Module Acquiring Fundamental Skills in Managing a


Business. This module contains instructional materials and activities for you to
complete.

The unit of competency Acquire Fundamental Skills in Managing a


Business contains the knowledge, skills and attitudes required for the course
Entrepreneurship.

You are required to go through a series of learning activities in order to


complete each of the learning outcomes of the module. Follow these activities on
your own and answer the Self-Check at the end of each learning activity.
If you have questions, dont hesitate to ask your teacher for assistance.
MODULE II

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : Acquire Fundamental Skills in


Managing a Business

MODULE TITLE : Acquiring Fundamental Skills in


Managing a Business

SUGGESTED DURATION : 4 Hours

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills, and attitudes required


in identifying and explaining effective managerial functions of
entrepreneurs.

WHAT WILL YOU LEARN?

Upon completion of this module you must be able to:

1. acquire fundamental skills in managing a business; and


2. differentiate the legal forms of business ownership.

WHAT DO YOU ALREADY KNOW?

Pre-Test

Answer the questions below honestly. Write the letter only of your
answer in your activity notebook.

1. The most basic management function of an entrepreneur which tells


you where
you are going and how to get there?
a. controlling
b. organizing
c. planning
d. staffing

2. Plans are categorized in different ways. Which plan is used repeatedly


as it covers policies, procedures, and rules in management functions?
a. organizational plans
b. staffing plans
c. standing plans
d. single-purpose plans
3. This plan is essentially non-repetitious. Since it is usually used within
a short period of time. It comprises programs, projects and budgets
a. improvement plan
b. organizational plan
c. single purpose plan
d. standing plan

4. A management function that clusters the activities into departments


or job positions, and designating the personnel to head and compose
each department is called ______.
a. directing
b. organizing
c. planning
d. staffing

5. A diagram that shows the relationships of the position and their


corresponding authority, responsibility, and accountability is ______.
a. functional type organization
b. line and staff organization
c. line organization
d. organizational chart

6. Directing is a challenging task. The principal concern of directing as a


management function is to ______.
a. assess the skills, strengths, weaknesses and potentials of
personnel
b. discover the problem in quantity or quality of skills of
personnel
c. influence subordinate to contribute to the attainment of
the firm objectives
d. make sure that what is done in the enterprise conforms
with what had been planned

7. Which among the choices below is necessary to determine how often


you should measure performance in the controlling process?
a. compare performance with standards and analyze
deviations
` b. establish standards
c. measure actual performance
d. set performance measurements

8. A type of organization chart where officers have staffs to assists them


but who do not have any authority over line personnel is
.
1
a. line and staff organization
b. line organization
c. functional staff organization
d. organizational chart
9. Assessing the skills, strengths, weaknesses and potentials of your
personnel will tell you whether_______.
a. your company has just the right quantity and quality of
men
b. you have an excess in quantity but are short in quality
c. both quantity and quality of skills of your personnel are
insufficient
d. a b & c

10. If you find out that there is a problem in quantity and quality of
skills among your present personnel. What solution should you
adopt to solve the problem?
a. consider recruiting from inside or outside the
organization
b. undertake training and skills development
c. advise the person to look for another job
d. a & b

11. When entrepreneurial activities slow down, what goes up?


a. Tax revenue
b. Inflation rate
c. Business profits
d. Unemployment rate

12. An entrepreneur is aware of


a. his familys activities
b. his business competitors
c. his relations to people in his community
d. the demand for products or services in his community

13. The term legal form refers to the type of business ownership.
Which type of business ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
d. Sole proprietorship

14. Partnership is a business form owned by two or more persons.


Which among the choices below is NOT an advantage of partnership
a. Partners have to be consulted each time a decision and
action is made.

2
b. No income tax is levied on the partnership itself but on
the owners as individuals.
c. Partners decide as to who shall pay debts in case the
business is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer
the consequences.

15. Which of the following is NOT an advantage of a corporation?


a. Corporation continues to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a
stockholder
c. Each stockholder shares in the ownership of the
company, together with the incorporators.
d. Subject to a more government control.

3
LESSON 1

ACQUIRE FUNDAMENTAL SKILLS IN MANAGING A BUSINESS

WHAT IS THIS LESSON ABOUT?

This lesson discusses the fundamental skills in managing a


business.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to;

1. identify and explain the fundamental skills in managing a


business;
2. differentiate the kinds of organizational chart for effective
management of an enterprise; and
3. appreciate the value of efficient management of a business
enterprise.

LET US STUDY

Words to Study

Accountability is a situation of being answerable to higher authorities.


Authority is the power or right delegated or given to a person.
Line organization is a type of organization which is characterized by a
superior having direct command over workers to accomplish the
task.
Line and staff organization is a type of organization where line officers
have staffs who assist them but who do not have any authority
over line personnel.
Organization chart is a diagram that shows the organizational
relationships of the positions and their corresponding authority,
responsibility, and accountability.
Responsibility is the duty that one has to fulfill in connection with the
performance of the job.

4
MANAGEMENT FUNCTIONS OF ENTREPRENEURS

Management functions are the same to all organizations regardless


of size or type. The only difference is the amount of emphasis given to
each level. But in general, managers have to do the planning, organizing,
staffing, directing, and controlling.

PLANNING

Planning is the most basic management function that tells you


where to go and how to get there. It is like preparing a blueprint of
what is to be done, when, how, and by whom it should be done.

Classification of Plans:

1. Standing plans. These plans are used repeatedly and cover


policies, procedures, and rules.

2. Single-used or single-purpose plans. These plans are


essentially one-shot or non repetitious. This is used within a
relatively short period of time, they comprise programs, projects,
and budgets. Programs are complicated; they are made up of
objectives, goals, strategies, policies, rules, job assignments,
financial resources and other pertinent items.

Another way to classify plans is according to whether they are


short, (to be from a day to a year), intermediate range plans (to be from a
few months to three years); and long-range plans (to be up to 25 years)

Steps Involved in the Strategic Planning

1) Formulate organization objectives. This serve as the basis


where the efforts and services will be used.
2) Analyze present resources. This refers to the availability of
money, staff, machines, materials, space and time to help you
realize your plans.
3) Determine alternative courses of action. Reduce number of
alternatives. Remove those do not look promising, and retain those
sound ones for further analysis.
4) Examine the alternatives. You need to do some statistical and
quantitative analysis of factors involved in each alternative.
5) Select the best course of action. Choosing alternative most
likely to be effective in achieving your objectives.

5
6) Develop support plans. Smaller plans aims to establish
coordination among other levels of the organization so that the
enterprise goal can be easily achieve.
7) Implement the plan. Plans only come into reality when it is
implemented. In implementing the plans, it require the exercise of
other management functions, such as organizing, staffing,
directing, and controlling.

ORGANIZING

Organizing involves identifying the specific activities necessary to


achieve the enterprise goals, clustering the activities into departments or
job positions, and designating the personnel to head and compose each
department.

An example of the organizing function is the owner-manager of a


small factory who establishes three departments - production
department, sales department, and administrative department. He
assigns manager to head each department and clearly delineates
responsibilities among them. Thus, he give the production manager the
responsibility for manufacturing, packing, and shipping, while he
delegates to the sales manager the responsibility for advertising and
costumer service. Then he assigns the administrative head to look after
personnel, purchasing, and accounting.

Below is the diagram showing the organizational relationships of


the positions and their corresponding authority, responsibility, and
accountability.

A. LINE ORGANIZATION

The manager has direct command over workers who accomplish


the tasks. Below is an example of a line organization

MANAGER

SUPERVISOR

FOREMAN

WORKERS 6
B. LINE AND STAFF ORGANIZATION

Any activities that a line officer can not do are delegated to a staff
officer to render these services. For example, in a small manufacturing
enterprise, the president, production manager, and sales manager
perform line functions, while legal counsel who helps and advices the
president has no authority over line employee. Below is an example of
this type.

PRESIDENT

LEGAL COUNSEL

SALES MANAGER PRODUCTION ADMINISTRATIVE


MANAGER MANAGER

C. FUNCTIONAL STAFF ORGANIZATION

In this setup, the worker has more than one immediate superior or
as many as the types of activities assigned to him. An example of this
type is shown below.

7
MANAGER

SUPERVISOR

FOREMAN

QUALITY PRODUCTION
CONTROL SPECIALIST

WORKERS

8
STAFFING

This process involves proper and effective selection, appraisal and


development of personnel to do the jobs and fulfill the roles in the
structure.

A. Asses your workload. The officers manning the operating units


can determine what exactly they are responsible for. This
information can be used as basis for defining the organizational
structure, and the quantity and quality of personnel needed to
handle the workload.

B. Study jobs in the company. This refers to the process of


determining the duties, responsibilities of each job. The analysis
can tell you whether or not the present workers have the
required skills and abilities. You can also find out who else
among the presents employees fit in each job.

C. Examine your present personnel. Assess the skills, strengths,


weaknesses, and potentials. Compare your inventory against
your forecasted manpower needs. Your findings will tell you
whether:

a) Your company has just the right quantity and quality of


people;
b) You have an excess in quantity but are short in quality;
or
c) Both quantity and quality of skills of your personnel are
insufficient.

D. Design an improvement plan. If you find out that there is a


problem in quantity or quality of skills among your present
personnel, you may adopt any of the following solutions:

a) If your workers are not enough, consider recruiting from


inside or outside the organization.
b) If your workers do not posses the required skills, you may
resort to training and development.

DIRECTING

Directing involves putting your plans into effect. How to influence


your subordinates who have distinct needs and a unique personality, to
contribute to the attainment of the firms objectives is the principal
concern of directing.

9
Understanding certain principles will help you direct the actions of
your subordinates towards the successful implementation of your plans.
Directing includes the following;

A. Motivation is the process of encouraging the subordinates to act in


a desired manner. When an employee joins a company they bring
with them certain needs which they hope to be able to satisfy.

a. Physiological needs these are needs for air, food, water, for
survival
b. Safety needs to be protected from danger, threat, or
deprivation
c. Esteem needs such as those for self-confidence,
achievement, competence, knowledge, self-respect freedom
and independence. It also includes the needs for status,
recognition, importance, and respect.
d. Self- realization needs represent the needs for full
development of potentials and of being creative.

B. Leadership is the ability of an individual to persuade the


subordinates to follow. As a leader you need a mixture of skills to
be effective. These skills may be required in varying degrees by
managers in different situations. These skills include the following;

a. Conceptual skills refer to the mental capacity of an


individual to grasp the relationship of different parts into an
integrated whole. They need these skills in planning, and
analyzing.

b. Human relation skills is the ability to deal effectively with


people

c. Technical skills incorporate the capabilities to perform the


mechanics of a certain job which the operative employees
perform, like producing goods that the company
manufactures.

CONTROLLING

The function of controlling is to make sure that what is done in the


enterprise conforms to what has been planned. The two main activities
involved here are comparing actual performance with desired
performance and making necessary connections where there is deviation
from the plans.

Steps in the controlling process:


10
A. Establish standards. Standards are sets of measurements
against which you can evaluate actual results.

Three common types of standards:

Physical standards include quantity of products or services,


number of customers or clients, and quantity of clients or
services.
Monetary standards are indicated in terms of peso values and
include labor cost, selling cost, material cost, sales revenue, and
gross profit.
Time standards refer to the speed with which job should be
done or the deadlines for their completion.

B. Set performance measurements. It is also necessary to


determine how often should you measure performance, who will
do the measurement, and what form will the measurement take.
An important consideration in determining appraisal is that it
must be easy to do and easy to explain to your people.

C. Measure actual performance. This step can be easy for you if


the standards are spelled out clearly and if what your personnel
are doing can be determined clearly. It Includes observation, oral
and written reports, automatic methods, inspections, tests, and
samples.

D. Compare performance with standards and analyze


deviations. Control does not stop after measuring performance.
Data about actual performance can be meaningless unless they
are compared with desired performance. Then you should
analyze the reasons for the failure to meet the standards so that
you can deal with the roots of the performance problems.
Depending on the nature of the shortfalls in performance,
you may correct these shortfalls by resorting to any of the
following remedies.

a) Revising your plans


b) Modifying your goals
c) Reassigning workers
d) Clarifying duties and responsibilities
e) Hiring additional staff
f) Firing problems workers
g) Stronger leadership

11
Controls can be classified as either organizational or operational.
Organizational controls are those that measure the over all performance
of the organization. Operational controls evaluate day to day activities
and spot areas where you may need to take corrective actions.

Effective controls have the following characteristics

a) They control the proper activities. People will naturally be


conscious about meeting standards if they are aware that
those activities will be monitored. However, you should take
care not to cause an imbalance but concentrating to much
control on one group of activities and easing up on another.
b) Control should be timely. A stitch in time saves nine a
popular saying goes. Control must report deviation in time to
enable you to deal with the problem before it is too late.
c) Controls should be cost effective. Controlling entails costs.
You pay for the processing and monitoring that you use, like
registers and computers, you pay for the personnel like the
inspector, accountants, and inventory controllers. You also
pay for the line personnel who work on the data on scrap,
production costs, and personnel report. But are all these
practical and economical?
d) Controls must be accurate. Control measures must be
accurate to have a good basis for corrective actions.
e) Controls must be accepted. It is important that your people
understand the purpose and benefits of control so that they
will not feel that you have installed controls just because you
dont trust your men.

Activity 1

Interview at least three (3) successful managers of different


organizations. Give their similarities and differences using the Venn
Diagram and share the results to the class.

Differences Similarities Differences

Activity 2

12
Give the steps involved in the Strategic Planning by filling up the
diagram below.

Steps Involved in the Strategic Planning

1.

2. 3. 4.

5. 6. 7.

LET US REMEMBER

Effective management is very much important in running a business,


without proper management people might just work to pursue their own
interest without considering that of the organization or those of the
other members. Effective and efficient management makes it possible for
both the organization and the employees to work for a common goal, at
the same time satisfying their respective interest.

HOW MUCH HAVE YOU LEARNED?

Answer the questions below honestly. Write the letter of your


answer in your activity notebook.

1. The most basic management functions of an entrepreneur, which tells


you where you are going and how to get there?
a. controlling
b. organizing
c. planning
d. staffing
2. Plans are categorized in different ways. Which plan is used repeatedly
as it covers policies, procedures, and rules in management functions?
a. organizational plans
13
b. staffing plans
c. standing plans
d. single-purpose plans
3. This plan is essentially non-repetitious. Since it is usually used within
a short period of time. It comprises programs, projects and budgets
a. improvement plan
b. organizational plan
c. single purpose plan
d. standing plan
4. A management function that clusters the activities into departments
or job positions, and designating the personnel to head and compose
each department is called ______.
a. directing
b. organizing
c. planning
d. staffing

5. A diagram that shows the relationships of the position and their


corresponding authority, responsibility, and accountability is ______.
a. functional type organization
b. line and staff organization
c. line organization
d. organizational chart
6. Directing is a challenging task. The principal concern of directing as
a management function is to ______.
a. assess the skills, strengths, weaknesses and potentials of
personnel
b. discover the problem in quantity or quality of skills of
personnel
c. influence subordinate to contribute to the attainment of
the firm objectives
d. make sure that what is done in the enterprise conforms
with what had been planned
7. Which among the choices below is necessary to determine how often
you should measure performance in the controlling process?
a. compare performance with standards and analyze
deviations
` b. establish standards
c. measure actual performance
d. set performance measurements
8. A type of organization chart where officers have staffs to assists them
but who do not have any authority over line personnel is
.
a. line and staff organization
14
b. line organization
c. functional staff organization
d. organizational chart
9. Assessing the skills, strengths, weaknesses and potentials of your
personnel will tell you whether_______.
a. your company has just the right quantity and quality of
men
b. you have an excess in quantity but are short in quality
c. both quantity and quality of skills of your personnel are
insufficient
d. a b & c
10. If you find out that there is a problem in quantity and quality of
skills among your present personnel. What solution should you
adopt to solve the problem?
a. consider recruiting from inside or outside the
organization
b. undertake training and skills development
c. advise the person to look for another job
d. a & b

LET US APPLY WHAT YOU HAVE LEARNED

Interview different entrepreneurs in your community; ask them to talk


about their experiences and insights as an entrepreneur manager,
especially on the management functions of planning, organizing, staffing,
directing and controlling. Discuss the results of your findings in your
class.

REFERENCES:

Asuncion, Jr. Ramon G.; et.al.; Entrepreneurship: Abiba Publishing


House, INC: Copyright 1992.

Leuterio, Florida C.; Technology and Livelihood Education for


Sustainable Development: St. Augustine Publications, Inc.: Don
Quijote St., Sampaloc, Manila Philippine Copyright 2005.

Principe, June B. et.al.; Technology and Home Economics for Secondary


Schools Fourth Year: FNB Educational, Inc.: #2 Uranus St.,
Corner Jupiter Street, Congresional Subdivision, Project 6,
Quezon City. 2000

15
Suratos, Cesar P. and J. S. Simpliciano; Technology and Livelihood
Education II: Latest Edition, St. Bernadette Publications, Inc.:
Cubao, Quezon City 2006

Technology and Home Economics III. Business Technology,


Business
Management I. Experimental Education, 1993.

http://www.isquare.com/qualities.cfm

http:www.wikieducator.org/VUSSC/Content/Entrepreneurship/Starting
-Up-a- ` Business/Objectives

16
LESSON 2

DIFFERENTIATE THE LEGAL FORMS OF BUSINESS OWNERSHIP

WHAT IS THIS LESSON ABOUT?

This lesson deals with legal forms of business ownership.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:

1. identify the legal forms of business ownership; and


2. discuss the advantages and disadvantages of the legal forms of
business.

LET US STUDY

Words to Study

Legal forms refer to the documents of ownership of a business.


Business is a legally recognized organization designed to provide goods and /or
services to consumers.
Enterprise is a business undertaking
Proprietorship is the state or right of a proprietor or owner
Liability refers to the amount that is owed.
Transaction is a business deal or agreement
Income is the gain or recurrent benefit usually measured in money that derives
from capital or labor

Deciding the business ownership

A business first exists in your mind is an idea. When this idea is


developed and put into writing, it becomes a plan. As you gather your
resources be it material or human resources, you are making your plan
into a reality. And when you register it, it becomes a legal entity, with
appropriate rights and responsibilities.

17
Once you have identified your project or business, you are ready to
organize and set up your own enterprise. This means that you have to
decide on its forms of ownership then later the location, hire and train
personnel, raise funds, acquire machinery and equipment, and finally
register the business.

The term legal form refers to the form of ownership of a business.


You may decide to share ownership with other people if you are not the
only source of project ideas or if you do not have enough capital and
experience to start the business on your own.

Sole proprietorship. A sole proprietorship is a business unit


owned and managed by only one person. It is the simplest and most
common form.

Most small businesses start as sole proprietorships. Here, you and


the business are essentially one. You, as the sole proprietor owns all the
assets.

As such, you will exclusively enjoy the benefits to be derived from


the business. If you decide to become a sole proprietor, you do not need to
consult anyone on matters related to setting or running the business.

Advantages of a Sole Proprietorship Disadvantages of a Sole


Proprietorship
Relatively low start-up costs
Greatest freedom from Unlimited liability
regulation Lack of continuity in business
Owner in direct control of organization
decision-making Difficulty in raising capital
Minimal working capital All the risks are of the owner
required Owner shoulders any liability
Tax advantages to owner incurred in the business
Owner is the boss
All profits to owner
In cases of death, the business
may be passed on to another by
virtue of a will.

Partnership. Under this business form, two or more persons


are owners of the business. The owners define their rights and
duties as partners in the business through a partnership
agreement.
18
Advantages of a Partnership Disadvantages of a Partnership
The partners decide as to who Any action of one partner within
shall be responsible for paying the scope of business binds the
debts in case the business is other partner as well. Thus, if
unable to pay its liabilities later. one partner commits a mistake,
They agree as to how much will the other has to suffer the
be the share of each one in the consequences as well.
profits of the business and what Partners also have to be
business responsibilities will be consulted each time a decision or
assigned to each. action concerning the business
The partners agree as to when needs to be made. This means
the partnership ends such as taking more time to get things
when one partner agrees to a done.
buy-out offer or when one of the
partner dies.
No income tax is levied on the
partnership itself but on the
owners as individuals.

Corporation: This business form is initiated by individuals called


incorporators, numbering from a minimum of five to a maximum of
fifteen.
Advantages of a Corporation Disadvantages of a
Corporation
The incorporators put up the initial or
starting capital of the business. To get The corporation is subject
additional capital, shares of stocks are to more government
sold to interested parties called the control.
stockholders. The corporation is relatively
Each stockholder shares in the complicated in form and
ownership of the company, together management. It needs high
with the incorporators. cost of formation and
The right of the stockholder to vote on operation.
matters affecting the corporation Its credit is weakened by
depends on the number of shares he or the limited liability of the
she holds. stockholder.
The number of share holders in the It is subject to a heavier
corporation is used as basis for taxation.
computing the share of each one in the The stockholders voting
profits of the corporation. This share is rights have become
called the dividend. theoretical especially in a
The life of the business does not depend big corporation because of

19
on the stockholders. the use of proxies.
It has continuity in existence for a The stockholders have little
maximum of 50 years. voice in the conduct of the
Continuity is not affected by death of a business of the
stock holder or by the transfer of shares corporation.
of stocks from one stockholder to
another.
In case of losses, liabilities are settled
through the sale of the assets of the
corporation.
Cooperative: A cooperative is owned by twenty-five or more
individuals who, like in a corporation buy shares in the business.
However, unlike a corporation, each member of the cooperative is
entitled to only one vote on matters regarding the business regardless of
the number of shares he or she has bought. In case of losses,
responsibility for paying liabilities is also borne equally by the members.

LET US REMEMBER

An entrepreneur should carefully choose what legal form of business


he has to venture. He has to consider or study very carefully the
advantages and disadvantages of each.

Activity

Read the following carefully. Then answer and discuss the questions at
the end of the story.

Jane and Rose are best of friends working in the same agency.
While they were having their coffee break one day, Rose having three
children going to school complained to Jane how difficult to make ends
meet with the meager salary they are receiving. When Jane heard her
friend, she said why dont you put-up a sideline? You are a good cook.
You can sell peanut adobo, brittle , peanut butter or other food products.
I am sure you will not have problems in terms of raw materials because
these raw materials are abundant in our community.
Rose is sold to the idea and persuaded her friend to be her partner.
The two friends contributed P2,000.00 each to start the business. They
agreed to have equal profit. Rose would take care of production while
Jane will concentrate in marketing.

Jane started getting orders while Rose concentrated in cooking.


When they succeeded in getting big orders they decided to register their

20
business as a partnership under the name R & J Food Products. From
then on, their costumers have regular orders and even becoming bigger.

After six months of operation, the partners earned P20,000.00 and


they decided to divide it equally between them. Meanwhile, Rose was
exhausting herself with her production efforts, while Janes life went on
very casually because once the first orders have been booked, most of the
buyers placed repeated orders.
Before the business reached its first year anniversary, Rose got
sick and advised to rest. Rose can no longer cook and Rose husbands
forbade her to continue the business.

1. What went wrong with the business?


2. If you were Rose would you enter into a partnership with a friend
or would you register the venture as a sole proprietorship?
3. Were the partners right in splitting the profits equally?
4. Discuss the advantages and disadvantages of partnership.

HOW MUCH HAVE YOU LEARNED?

SELECTION TYPE: Select the best answer by writing the LETTER only
in your quiz notebook.

1. The term legal form refers to the type of business ownership. Which
type of business ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
d. Sole proprietorship
2. Partnership is a business form owned by two or more persons.
Which among the choices below is NOT an advantage of partnership
a. Partners have to be consulted each time a decision and action
is made.
b. No income tax is levied on the partnership itself but on the
owners as individuals.
c. Partners decide as to who shall pay debts in case the business
is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer the
consequences.
3. Which of the following is NOT an advantage of a corporation?
a. Corporation continue to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a stockholder
c. Each stockholder shares in the ownership of the company,
together with the incorporators.

21
d. Subject to a more government control.
4. Which of the choices below makes sole proprietorship advantageous
to the owner?
a. All profits goes to the owner
b. Unlimited liability
c. All the risk are for the owner
d. Owner shoulders any liability incurred in the business.
5. Which of the choices below is NOT true about a cooperative?
a. Each member is entitled to only one vote
b. Responsibility for paying liabilities is borne equally by the
members
c. Owned by twenty-five or more individuals
d. Initiated by individuals numbering from a minimum of five to a
maximum of fifteen

LET US APPLY WHAT YOU HAVE LEARNED

1. If you engage into business, what form of ownership would you


choose and why?

2. Conduct a simple survey in your community. Find out what


business forms are existing. Present your findings to class.

REFERENCES:

Asuncion, Jr. Ramon G.; et.al.; Entrepreneurship: Abiba Publishing


House, INC: Copyright 1992.

Leuterio, Florida C.; Technology and Livelihood Education for


Sustainable Development: St. Augustine Publications, Inc.: Don
Quijote St., Sampaloc, Manila Philippine Copyright 2005.

Principe, June B. et.al.; Technology and Home Economics for Secondary


Schools Fourth Year: FNB Educational, Inc.: #2 Uranus St.,
Corner Jupiter Street, Congresional Subdivision, Project 6,
Quezon City. 2000

Suratos, Cesar P. and J. S. Simpliciano; Technology and Livelihood


Education II: Latest Edition, St. Bernadette Publications, Inc.:
Cubao, Quezon City 2006

22
________Technology and Home Economics III. Business Technology,
Business
Management I. Experimental Education, 1993.

http://www.isquare.com/qualities.cfm

http:www.wikieducator.org/VUSSC/Content/Entrepreneurship/Starting
-Up-a- ` Business/Objectives

23
Post-Test

Answer the questions below honestly. Write the letter only of your
answer in your activity notebook.

1. The most basic management function of an entrepreneur which tells


you where you are going and how to get there?
a. controlling
b. organizing
c. planning
d. staffing
2. Plans are categorized in different ways. Which plan is used repeatedly
as it covers policies, procedures, and rules in management functions?
a. organizational plans
b. staffing plans
c. standing plans
d. single-purpose plans
3. This plan is essentially non-repetitious. Since it is usually used within
a short period of time. It comprises programs, projects and budgets
a. improvement plan
b. organizational plan
c. single purpose plan
d. standing plan
4. A management function that clusters the activities into departments
or job positions, and designating the personnel to head and compose
each department is called ______.
a. directing
b. organizing
c. planning
d. staffing
5. A diagram that shows the relationships of the position and their
corresponding authority, responsibility, and accountability is ______.
a. functional type organization
b. line and staff organization
c. line organization
d. organizational chart
6. Directing is a challenging task. The principal concern of directing as
a management function is to ______.
a. assess the skills, strengths, weaknesses and potentials of
personnel
b. discover the problem in quantity or quality of skills of
personnel
c. influence subordinate to contribute to the attainment of
the firm objectives
d. make sure that what is done in the enterprise conforms
with what had been planned
24
7. Which among the choices below is the management function that is
necessary to determine how often you should measure performance in
the controlling process?
a. compare performance with standards and analyze
deviations
` b. establish standards
c. measure actual performance
e. set performance measurements
8. A type of organization chart where officers have staffs to assists them
but who do not have any authority over line personnel is
.
a. line and staff organization
b. line organization
c. functional staff organization
d. organizational chart
9. Assessing the skills, strengths, weaknesses and potentials of your
personnel will tell you whether_______.
a. your company has just the right quantity and quality of
men
b. you have an excess in quantity but are short in quality
c. both quantity and quality of skills of your personnel are
insufficient
d. a b & c
10. If you find out that there is a problem in quantity and quality of
skills among your present personnel, what solution should you adopt
to solve the problem?
a. consider recruiting from inside or outside the organization
b. undertake training and skills development
c. advise the person to look for another job
d. a & b
11. When entrepreneurial activities slow down, what goes up?
a. Tax revenue
b. Inflation rate
c. Business profits
d. Unemployment rate
12. An entrepreneur is aware of
a. his familys activities
b. his business competitors
c. his relations to people in his community
d. the present demand for certain products or services in his
community.

25
13. The term legal form refers to the type of business ownership. Which
type of business ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
d. Sole proprietorship
14. Partnership is a business form owned by two or more persons.
Which among the choices below is NOT an advantage of
partnership
a. Partners have to be consulted each time a decision and
action is made.
b. No income tax is levied on the partnership itself but on the
owners as individuals.
c. Partners decide as to who shall pay debts in case the
business is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer the
consequences.
15. Which of the following is NOT an advantage of corporation?
a. Corporation continues to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a
stockholder
c. Each stockholder shares in the ownership of the company,
together with the incorporators.
d. Subject to a more government control.

26
Key to Correction

Pre-test and Post-Test


1. c 11. d
2. c 12. d
3. c 13. d
4. b 14. d
5. c 15. d
6. c
7. a
8. a
9. d
10. b

27
ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School

28
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant

1
2
Republic of the Philippines
Department of Education

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Identify Business Opportunities

Module no.3 Module Title: Identifying Business Opportunities


ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant
TABLE OF CONTENTS

Module Title. Identifying Business Opportunities....................... 1

Pre-test .......................................................................................... 1

LO 1. Identify and Analyze the Existing Problems and Needs in the


Community where there are Business Opportunities ............ 5
Let Us Study .................................................................................. 5
How to Identify the Needs in the Community ......................... 6
o Activity I ...................................................................... 7
o Activity II ..................................................................... 7
How Much Have You Learned? ....................................................... 9
Let Us Apply What You Have Learned ............................................. 10

LO 2. Select Appropriate Business Opportunities Based on the


Needs of the Community ....................................................... 12
Let Us Study .................................................................................. 12
SWOT Analysis ..................................................................... 13
o Activity I ...................................................................... 14
How Much Have You Learned? ....................................................... 14
Let Us Apply What You Have Learned ............................................. 15

LO 3. Prepare a Product Concept ................................................... 17


Let Us Study .................................................................................. 17
Five Ingredients that Define a Product................................... 18
Components of a Product ...................................................... 18
Product Life Cycle ................................................................. 19
Designing a New Product ...................................................... 19
Product Development Stages ................................................. 20
Idea Generation .................................................................... 20
Product Development Process ............................................... 20
Sample of a Project Concept .................................................. 21
o Activity I ...................................................................... 23
o Activity II ..................................................................... 24
o Activity III .................................................................... 25
How Much Have You Learned? ....................................................... 26
Let Us Apply What You Have Learned ............................................. 27

Post-Test ........................................................................................ 30

Key to Correction............................................................................ 33
HOW TO USE THIS MODULE

Welcome to the Module Identifying Business Opportunities.


This module contains instructional materials and activities for you to
complete.

The unit of competency Identify Business Opportunities contains


the knowledge, skills and attitudes required for the course
Entrepreneurship.

You are required to go through a series of learning activities in


order to complete each of the learning outcomes of the module. Follow
these activities on your own and answer the Self-Check at the end of
each learning activity.
If you have questions, dont hesitate to ask your teacher for
assistance.
MODULE III

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : Identify Business


Opportunities

MODULE TITLE : Identifying Business


Opportunities

SUGGESTED DURATION : 12 hrs.

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills, attitudes and values


needed in identifying business opportunities.

WHAT WILL YOU LEARN?

At the end of this module, you should be able to:


a. identify and analyze the existing problems and needs in the
community where there are business opportunities;
b. select appropriate business opportunities based on the needs of the
community; and
c. prepare a product concept.

WHAT DO YOU ALREADY KNOW?

Pre-test

Let us find out how much you already know. Read and understand
the items being described below. Choose the letter of the correct answer
and write it in your quiz notebook.

1. The following statements tell how environmental scanning is done.


Choose from the options the correct arrangement of the steps in
conducting environmental scanning.
1. Note down the needs of the people in the community.
2. For things and services needed, find out what are not
available and plan how to develop these into entrepreneurial
ventures.
3. Communicate with people through interviews,
observations and advertisements on what is new.
4. Check those items which are already available and think
how they may improve the packaging and quality.
a. 4,1,2,3 b. 3,1,4,2 c. 2,4,1,3 d. 1,4,2,3

1
2. The statistical study of human population and its distribution is
called _________.
a. demography
b. ecology
c. photography
d. psychology
3. Environmental scanning is the acquisition and use of
information about events, trends and relationships in an
organizations external environment. New products or materials
and new processes in doing things are vital aspects
of_______________.
a. ecological environment
b. educational environment
c. political environment
d. technological environment
4. As an entrepreneur, the first thing that you should find out are
the demands of the community. This refers to___________.
a. community needs
b. evaluation
c. industrial information
d. technology
5. How will you determine the needs of the people in your
community?
a. conduct an environmental scanning
b. make use of observations
c. make use of surveys and referrals
d. all of the above
6. The growth of industry always creates opportunities for
establishing an enterprise. This refers to ________.
a. industrial information
b. review of old projects
c. synchronization of plans
d. technology
7. Read technical and business journals. The underlined words
refer to ____________.
a. evaluation of development plans
b. industrial information
c. local specialized skills
d. review of old projects
8. Why is there a need for an entrepreneur to explore the economic,
cultural, and social conditions of the community?
a. To determine the number of population in the community
b. To discover the developed enterprise in the community
c. To find out the analytical skills among the professional in
the community
d. To identify the problems, needs and business
opportunities in the community
9. As an entrepreneur, how will you make your product more
useful and of good quality?
a. change the brand of the product into a new one
2
b. seek assistance from the government
c. use your creativity and imagination
d. none of the above
10. When you identify the demands of the people then you are
identifying the ______________.
a. Community Needs
b. Industrial Information
c. Local Specialized Skills
d. Technology
11. When there is competition, then there are ___________ in
business.
a. opportunities
b. strengths
c. threats
d. weaknesses
12. The acronym SWOT means _________.
a. Style, Wear, Operation, Tool
b. Strengths, Weaknesses, Opportunities, Threats
c. Store, Warehouse, On line, Technology
d. all of the above
13. If the people in the community patronize your product, then
your business has ______________.
a. Operation
b. Strength
c. Threats
d. Weakness
14. Which of the following questions can be categorized as an
opportunity?
a. What could you improve?
b. What are the interesting trends you are aware of?
c. What obstacles do you face?
d. Is it accessible to all?
15. You encounter difficulty in hiring workers due to low salary.
This is classified as ________________.
a. opportunities
b. strengths
c. threats
d. weaknesses
16. Which of the following is not an ingredient that defines a
product?
a. brand promises
b. delivery processes
c. description and features
d. tangible elements
17. Anything that can be offered to a market that might satisfy a
want or need is called_______.
a. package
b. product
c. service
d. technology
3
18. What business term describes the complete process of
bringing a new product to market?
a. business environment
b. new product development
c. product design
d. product development process
19. The producers view of a product is called__________.
a. feature of the product
b. product formulation
c. product concept
d. all of the choices
20. The following are the factors to consider in preparing a
product concept EXCEPT:
a. the costs
b. the market
c. the goods and services
d. the people

4
LESSON 1

IDENTIFY AND ANALYZE THE EXISTING PROBLEMS AND NEEDS IN THE


COMMUNITY WHERE THERE ARE BUSINESS OPPORTUNITIES

WHAT IS THIS LESSON ABOUT?

The lesson deals with the problems and needs identified in the
community where there are business opportunities.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:


1. conduct an environmental scanning where there are business
opportunities; and
2. identify and analyze the existing problems and needs in the
community.

LET US STUDY

Words to Study

Environmental Scanning is any of the various techniques


through which images/information are recorded or
gathered from conditions, situations and materials in the
particular environment.
Demography is the statistical study of human population and
its distribution.
Individual Interest is the skill or expertise of a person.
Technology means improved products or services.
Resources are available money, equipment and facilities.
Trend is a practice or interest that is very popular for a short
period of time
Goods are products that are brought and sold in the business.
Services are work done for others as an occupation or
business.
Technology is the system by which a society provides its
members with those things needed or desired.
Industrial is anything having to do with the business of
manufacturing products; excludes utility, transportation,
and financial companies.

5
How to identify the needs of the community?
How would I know the needs of
our community? The initial step in identifying the
needs of the community is through
environmental scanning. This can
be done through:
Interviews
Sharing ideas with others
Reading
Observations
Advertisement
Industrial Factors that can help identify the needs
Information in the community
-are newspapers,
technical and
business journals
that provide
techniques and Local Specialized Skills
information on -traditional skills of the
business people in the
opportunities community

Evaluation of
development plans
-developed plans which
are still possible in the
community

Technology
-are modern gadgets
which can be utilized
to identify business
opportunities
Review of old projects
in the community
-old projects may
become attractive
when market or related
production factors
have changed
6
ACTIVITY I

Who are the entrepreneurs in Identify at least five entrepreneurs in your


my community? community and describe what kind of business
each has. Then list one of their most
outstanding characteristics.

Name of Entrepreneurial Outstanding


Entrepreneur Venture Characteristics
1.
2.
3.
4.
5.

ACTIVITY II

Directions: Develop your own checklist for an


environmental scanning activity. List down
How to conduct environmental things which you think you need to know from
scanning? your correspondents. The numbers indicate
the number of responses to the same
information you will ask. Therefore, you will
interview a minimum of 3 and a maximum of 7
respondents. Good luck!

No. Inquiries 1 2 3 4 5
1
2
3
4
5
6
7

7
LET US REMEMBER

The needs and problems in the community are identified through


environmental scanning where there are business opportunities.

HOW MUCH HAVE YOU LEARNED?

Directions: Choose the correct answer from the options under each item. Write
the letter of the correct answer in a sheet of paper.

1. The following statements tell how environmental scanning is done.


Choose from the options the correct arrangement of the steps in
conducting environmental scanning.
1. Note down the needs of the people in the community.
2. For things and services needed, find out what are not available
and plan how to develop these into entrepreneurial ventures.
3. Communicate with people through interviews, observations and
advertisements on what is new.
4. Check those items which are already available and think how
they may improve the packaging and quality.
a. 4,1,2,3 b. 3,1,4,2 c. 2,4,1,3 d. 1,4,2,3
2. The statistical study of human population and its distribution is called
_________.
a. demography
b. ecology
c. photography
d. psychology
3. Environmental scanning is the acquisition and use of information
about events, trends and relationships in an organizations external
environment. New products or materials and new processes in doing
things are vital aspects of_______________.
a. ecological environment
b. educational environment
c. political environment
d. technological environment
4. As an entrepreneur, the first thing that you should find out are the
demands of the community. This refers to___________.
a. community needs
b. evaluation
8
c. industrial information
d. technology
5. How will you determine the needs of the people in your community?
a. conduct an environmental scanning
b. make use of observations
c. make use of surveys and referrals
d. all of the choices
6. The growth of industry always creates opportunities for establishing
an enterprise. What does this imply?
a. industrial information
b. review of old projects
c. synchronization of plans
d. technology
7. Read technical and business journals. The underlined words refer to
____________.
a. evaluation of development plans
b. industrial information
c. local specialized skills
d. review of old projects
8. Why is there a need for an entrepreneur to explore the economic,
cultural, and social conditions of the community?
a. To determine the number of population in the community
b. To discover the developed enterprise in the community
c. To find out the analytical skills among the professional in the
community
d. To identify the problems, needs and business opportunities in
the community
9. As an entrepreneur, how will you make your product more useful
and of good quality?
a. change the brand of the product into a new one
b. seek assistance from the government
c. use your creativity and imagination
d. none of the above
10. When you identify the demands of the people then you are identifying
the ______________.
a. Community Needs
b. Industrial Information
c. Local Specialized Skills
d. Technology

9
LET US APPLY WHAT YOU HAVE LEARNED

Directions: List down the goods and services that are available based on the
conducted environmental scanning. Then, categorize them as available and not
available; as well as those services which are available and not.

Goods available/not available in the community

Available Not Available


1.
2.
3.
4.
5.

Services available/not available in the community

Available Not Available


1.
2.
3.
4.
5.

The next step you will do is to list down the sample of goods and services identified
based on the needs of your community. In a scale of 1 5, rank those products and
services, depending on your interest, capability and resources. Rank 1 as the highest
point to consider; while 5 is the lowest point value.
Rank your concern according to: a) interest b) capability c) resources

TOTAL
GOODS/SERVICES INTEREST CAPABILITY RESOURCES RANK
POINTS
1.
2.
3.
4.
5.

RESOURCES:
Learning Materials
Hand Outs/Flyers
Writing Materials
Camera

10
LESSON 2

SELECT APPROPRIATE BUSINESS OPPORTUNITIES BASED ON THE


NEEDS OF THE COMMUNITY

WHAT IS THIS LESSON ABOUT?

The lesson deals with the selection of appropriate business opportunities


based on the needs of the community.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:


1. select appropriate business opportunities based on the needs of the
community.

LET US STUDY

Words to Study

Strengths are the capital, knowledge, skill or other advantage that a


firm has or can acquire over its competitors in meeting the needs of
its customers.
Weakness is a defect or shortcoming which increases the risk of a
failure.
Opportunity means a good position, chance, or prospect, as for
advancement or success.
Threat is an indication or warning of probable trouble.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats

After identifying the different business opportunities in your community,


you will now try to examine which opportunity to undertake. The SWOT
Analysis will help you select the appropriate business opportunities based on
the needs of your community.

11
What is SWOT Analysis?

SWOT Analysis is a planning tool used to understand the Strengths,


Weaknesses, Opportunities, and Threats involved in a project or in a
business.
i. It helps you develop your career in a way that takes best
advantage of your talents, abilities and opportunities in your
community.
ii. It helps you to focus on your strengths, minimize threats,
and take the greatest possible advantage of opportunities
available in your community.

SWOT ANALYSIS

O
S W P
T E P T
R A O H
E K R R
N N T E
G E U A
T S N T
H S I
S E S
T
S I
E
S

Is the business in
demand in your
community?
Is the product new in
your community?
Is it accessible to all? What obstacles do
Will your community you face?
patronize it? What is your
competitor doing
that you should be
What could you improve? worried about?
What should you avoid? Could any of your
What factors would cause weaknesses
the loss of your sales? seriously threaten
your business?

Where are the good


opportunities facing you?
What are the interesting
trends you are aware of?
12
ACTIVITY I

Instructions: Select three businesses and


What are the opportunities that will interview the owner on which existing
help me decide to start a business? opportunity/ies influenced their decision to
start their business and what specific
opportunity they met.

o an unfilled want o a change


o a want for more o an annoyance
o a want for better o a problem

Name of Business Type of Business Type of Opportunity Specific Opportunity


met by the business
1.
2.
3.
4.
5.

LET US REMEMBER

SWOT Analysis is a tool for evaluating the strengths, weaknesses,


opportunities and threats which help you select the appropriate business
opportunities based on community needs.

HOW MUCH HAVE YOU LEARNED?

Directions: Choose the correct answer from the options under each item. Write
the letter of the correct answer in a sheet of paper.

1. When there is competition, then there is a___________ in business.


a. opportunity
b. strength
c. threat
d. weakness
2. The acronym for SWOT is _________.
a. Style, Wear, Operation, Tool
b. Strengths, Weaknesses, Opportunities, Threats
c. Store, Warehouse, On line, Technology

13
d. all of the above
3. If the people in the community patronize your product, then your
business has ______________.
a. Operation
b. Strength
c. Threats
d. Weakness
4. Which of the following questions can be categorized as an opportunity?
a. What could you improve?
b. What are the interesting trends you are aware of?
c. What obstacles do you face?
d. Is it accessible to all?
5. You encounter difficulty in hiring workers due to low salary. This is
classified as ________________.
a. opportunity
b. strength
c. threat
d. weakness

LET US APPLY WHAT YOU HAVE LEARNED

Directions: Read the story below and answer the given questions.

Nenas Travails

Ever since Nena was a young girl, she always liked to sew. Her love for
sewing prompted her to set up a business which included a variety of sewing
activities. She was in business as a sole proprietor but later set up the
business as a corporation with three shareholders, one of them being herself.
She was the primary shareholder of the business since she was the primary
provider of service. Unfortunate family circumstances occurred which
prompted her to put practically all entrepreneurial businesses on hold. She
needed more reliable week-to-week steady income so she decided to find a full
time job working for someone else. Prior to making the new job decision, Nena
and the other owners liquidated the business.

Nena still had a lot of calls from people who wanted to do some work. So,
she started up the business again as a sole proprietor, using a cottage
industry help because of a lack of time to commit to the management
function.

It has been often suggested to Nena that she revive her business. She
would like to do so in the future. She does, though, like her full-time position.
If she starts up the business again, she needs additional financing to buy

14
necessary supplies and materials to make a competitive comeback into the
marketplace for oversized handkerchiefs. Her target market has been tapped
by small-time seamstresses since terminating her business.

Nena would very much like to start up the business again but wants to
find the right kind of business ownership for her business. At the present time,
she does know anyone who has the skills/interests to work with her as a
partner in the business. She does know of several people who would be
interested in putting money into the business if she decided to either go into a
partnership, with them being silent partners, or make it a corporation. Use the
problem-solving process to help Nena come up with a practical decision.

A. Literal Comprehension
1. What is Nenas problem/challenge?
______________________________________________________________________________
2. List all possible alternatives that are available to Nena.
______________________________________________________________________________
3. What criteria should Nena use in evaluating the alternatives?
______________________________________________________________________________
Making Inferences
4. Why is there a need for Nena to start a new business?
______________________________________________________________________________
Critical Thinking
5. Why is selecting business opportunities important?
______________________________________________________________________________

B. Choose the appropriate business opportunities that can be identified based


on the given problem by putting a check mark on the second column of the
table.
POSSIBLE BUSINESS OPPORTUNITIES
1. Retailing
2. Wholesaling
3. Merchandise/Products Servicing
4. Manufacturing
5. Fishery/ Agriculture

RESOURCES:

References
Computer
LCD/OHP

15
LESSON 3

PREPARE A PRODUCT CONCEPT

WHAT IS THIS LESSON ABOUT?

The lesson deals with the preparation of a product concept for a target
market.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:


1. identify the target market of the product;
2. select the materials needed in preparing a product concept; and
3. prepare a product concept and present it before a panel.

LET US STUDY

Words to Study

Market is a place where goods are offered for sale.


Packaging is the act of designing and producing the container for
a product.
Price is what you are going to charge your customers for the
products sold or services rendered.
Proponent is a person who makes a proposal or a proposition for a
product concept.

Can you identify these products?

16
What is a product?

A product is anything that can be offered to a market that might satisfy a


want or need.

Five Ingredients that Define a Product:


Tangible Elements physical and technical characteristics of the
product
Presumed Benefits the expected experience that customers seek
if they use the product
Delivery Processes the service consideration and applications of
the product
Brand Promises the reputation, assurances, and uniqueness of
the product of the manufacturer
Product Context the relationship of the product with its use in
the environment

What are the components of a product?

PRODUCT

Brand (Name) Product idea Package

Physical Properties Description and Features Quality Level Service (Warranty)

Example of a Product and Its Components

Product Idea
Physical Properties: Liquid
Description: Aromatic Shampoo
Quality Level:
Service/Warranty: Manufacturing,/Expiry
date, etc.
Brand Name: Palmolive Natural Shampoo

17
Product Life Cycle

The Product Life Cycle (PLC) is based upon the biological life cycle. For
example, a seed is planted (introduction); it begins to sprout (growth); it shoots
out leaves and puts down roots as it becomes an adult (maturity); after a long
period as an adult the plant begins to shrink and die out (decline).

PRODUCT LIFE CYCLE


SALES REVENUE

INTRODUCTION
DEVELOPMENT

MATURITY
GROWTH

DECLINE
DESIGNING A NEW PRODUCT
An effective design process:
Matches products or service characteristics with customer
requirements
Ensures that customer requirements are met in the simplest and
least costly manner
Reduces the time required to design a new product or service and
Minimizes the revisions necessary to make a design

PRODUCT DEVELOPMENT STAGES


1. Idea Generation
2. Feasibility Study
3. Development and Testing of Product Design
4. Final Design and Process Plans

18
IDEA GENERATION

Marketing
Department
Internal sources External sources

Analysis of customer needs Market surveys

Suggestions coming from customer Suggestions coming


Contact staff from customers

Ideas from research and development Actions of competitors

PRODUCT DEVELOPMENT PROCESS

Suppliers R & D Customers

Marketing Idea Generation Competitors

Product Concept

19
Sample of a Product Concept

AUTOMATED WASTE
PROCESSOR

Rene Gaor Delfino


Muntinlupa Business High School

The target market of the product are:

Households in Muntinlupa
Schools
The city and local government units
junkshops

20
Inventors
Engineers
Machinist

The product can be sold any time since it is not


seasonal. However, the rainy season may be the
peak season to sell the product better than
summer days.

Iron flat bars, rods, tins for mechanical parts


Sensors
Electromagnets
Electronic components such as diode, resistors,
etc.
Electronic circuits
Plastic tubings, rubber

21
The product will be designed to utilize recycled
materials thus, a minimum cost of production is
expected to be P2,200.00/unit
Selling price is P3,000.00/unit

Automated Waste Processor (AWP) is designed to


segregate waste into biodegradable and non-
biodegradable in the first phase
The second phase will segregate the non-biodegradable
into metals, non-metals and other solid waste
The third phase will process and define biodegradable
into liquid waste which can be used or further process
into compost
Automated Waste Processor (AWP) is expected to
lessen the garbage thrown into dumpsites, utilize or
recycle the non-biodegradable into useful materials
Automated Waste Processor (AWP) will help cleaning
and greening the polluted environment in the urban
areas

ACTIVITY I

Name your Product Directions: In this activity, popular slogans are


given. In the next column, list the associated
product or business, and in the last column,
indicate your opinion about the quality of the
slogan by writing YES or NO. Do this in your
quiz notebook.

National Slogans Name the Associated


Good Slogan?
Product/ Business
1. Better Things for
Better Living
2. The Choice of a New
Generation
22
3. We Deliver for You
4. What You Want is
What You Get
5. Be All that You Can
Be
6. A Mind Is a Terrible
Thing To Waste
7. Fly the Friendly
Skies
8. It Does Your Body
Good
9. Make a Run for the
Border
10. I Love What You Do
For Me

ACTIVITY II

Are you ready for an


interview?

1. How did you come up with your business idea?


___________________________________________________________________________
___________________________________________________________________________
2. What concepts did you have about business before starting your business?
___________________________________________________________________________
___________________________________________________________________________
3. What key areas of knowledge do you need to gain after going into business?
___________________________________________________________________________
___________________________________________________________________________
4. In what ways have friends and family members been helpful sources of
assistance?
___________________________________________________________________________
___________________________________________________________________________
5. How did you prepare your product concept?
___________________________________________________________________________
___________________________________________________________________________

23
ACTIVITY III

Directions: Research your topic. Write the


Plan, Draft and Present information on note cards. Make a draft of your
presentation. Practice in front of a friendly
audience or mirror. Try to relax! Look up! Make
eye contact. Speak up!

Rehearsal Time
After writing a draft of your presentation, rehearse by yourself in front of a
mirror. Then ask two others to listen and evaluate your talk. Ask them to
complete the evaluation form below. Then, use their comments to rewrite
and improve your talk. Then, practice again before making your final
presentation.
Evaluator 1 Evaluator 2
1. Did my introduction grab your interest? ___________ ___________
2. Did I present my ideas logically? ___________ ___________
3. Were my visual aids useful? ___________ ___________
4. Did I speak clearly and slowly? ___________ ___________
5. Suggestions on how I can improve:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

LET US REMEMBER

A well prepared product concept helps an


entrepreneur to start a business.

24
HOW MUCH HAVE YOU LEARNED?

1. Which of the following is not an ingredient that defines a product?


a. brand promises
b. delivery processes
c. description and features
d. tangible elements
2. Anything that can be offered to a market that might satisfy a want or
need is called ________.
a. package
b. product
c. service
d. technology
3. It is a business term which describes the complete process of bringing a
new product to market.
a. business environment
b. new product development
c. product design
d. product development process
4. The producers view of a product is called__________.
a. feature of the product
b. product formulation
c. product concept
d. all of the choices
5. The following are the factors to consider in preparing a product concept
EXCEPT:
a. the costs
b. the market
c. the goods and services
d. the people

25
LET US APPLY WHAT YOU HAVE LEARNED

Directions: Prepare and present a product concept before a panel,


following the given templates.

PICTURES

The target market of the product are:

26

27

Resources:

Computer Unit with Internet Access


LCD/ Projector
Writing Materials
References

28
REFERENCES:

Teneza, Celedonia T., Ed.D., et. al., Technology and Livelihood Education I,
Shekina Publishing and Printing Press, Almanza, Las Pias City 2006

Teneza, Celedonia T., Ed.D. , Technology and Livelihood Education, Business


Management III, Shekina Publishing and Printing Press, Almanza, Las Pias
City 2006

International Labor Office, Training Manual for Small-Scale Entrepreneurs,


Generate Your Business Idea, pp. 19 - 28 ILO Publications, International
Labour Office, CH-1211 Geneva 22, Switzerland 2001

Villanueva-Rojo, Luz, Ed.D., et. al., Business Management III, pp. 54 62


Adriana Publishing Co., Inc. 2003

A Presentation on Product Planning and Development Delivered by Engr.


Enieleen J. Dozina, Product Analyst Petron Corporation, Oct 8, 2008

www.business.org
www.businessdictionary.com
www.rapidbi.com
www.mindtools.com
www.cornerstones4kids.org
www.knowthis.com
http://portal.cornerstone4kids.org
http://chroifis.utotonto.ca
http://www.prod.vision.org
http://www.colgate.co.uk

29
Post-Test

Let us find out how much you already know. Read and understand the
items being described below. Choose the letter of the correct answer and write
it in your quiz notebook.

1. The following statements tell how environmental scanning is done.


Choose from the options the correct arrangement of the steps in
conducting environmental scanning.
1. Note down the needs of the people in the community.
2. For things and services needed, find out what are not available
and plan how to develop these into entrepreneurial ventures.
3. Communicate with people through interviews, observations and
advertisements on what is new.
4. Check those items which are already available and think how
they may improve the packaging and quality.
a. 4,1,2,3 b. 3,1,4,2 c. 2,4,1,3 d. 1,4,2,3
2. The statistical study of human population and its distribution is
called _________.
a. demography
b. ecology
c. photography
d. psychology
3. Environmental scanning is the acquisition and use of
information about events, trends and relationships in an
organizations external environment. New products or materials
and new processes in doing things are vital aspects
of_______________.
a. ecological environment
b. educational environment
c. political environment
d. technological environment
4. As an entrepreneur, the first thing that you should find out are
the demands of the community. This refers to___________.
a. community needs
b. evaluation
c. industrial information
d. technology
5. How will you determine the needs of the people in your
community?
a. conduct an environmental scanning
b. make use of observations
c. make use of surveys and referrals
d. all of the above

30
6. The growth of industry always creates opportunities for
establishing an enterprise. This refers to ________.
a. industrial information
b. review of old projects
c. synchronization of plans
d. technology
7. Read technical and business journals. The underlined words
refer to ____________.
a. evaluation of development plans
b. industrial information
c. local specialized skills
d. review of old projects
8. Why is there a need for an entrepreneur to explore the economic,
cultural, and social conditions of the community?
a. To determine the number of population in the community
b. To discover the developed enterprise in the community
c. To find out the analytical skills among the professional in the
community
d. To identify the problems, needs and business opportunities in the
community
9. As an entrepreneur, how will you make your product more
useful and of good quality?
a. change the brand of the product into a new one
b. seek assistance from the government
c. use your creativity and imagination
d. none of the above
10. When you identify the demands of the people then you are
identifying the ______________.
a. Community Needs
b. Industrial Information
c. Local Specialized Skills
d. Technology
11. When there is competition, then there is a___________ in
business.
a. opportunity
b. strength
c. threat
d. weakness
12. The acronym SWOT stands for _________.
a. Style, Wear, Operation, Tool
b. Strengths, Weaknesses, Opportunities, Threats
c. Store, Warehouse, On line, Technology
d. all of the above

31
13. If the people in the community patronize your product, then
your business has ______________.
a. Operation
b. Strength
c. Threat
d. Weakness
14. Which of the following questions can be categorized as an
opportunity?
a. What could you improve?
b. What are the interesting trends you are aware of?
c. What obstacles do you face?
d. Is it accessible to all?
15. You encounter difficulty in hiring workers due to low salary. This is
classified as ________________.
a. opportunity
b. strength
c. threat
d. weakness
16. Which of the following is not an ingredient that defines a product?
a. brand promises
b. delivery processes
c. description and features
d. tangible elements
17. Anything that can be offered to a market that might satisfy a want or
need.
a. package
b. product
c. service
d. technology
18. It is a business term which describes the complete process of
bringing a new product to market.
a. business environment
b. new product development
c. product design
d. product development process
19. The producers view of a product is called__________.
a. feature of the product
b. product formulation
c. product concept
d. all of the choices
20. The following are the factors to consider in preparing a product
concept EXCEPT:
a. costs
b. market
c. goods and services
d. people
32
Key to Correction

Pre-Test and Post-Test

1. b
2. a
3. d
4. a
5. d
6. d
7. b
8. d
9. c
10. a
11. c
12. b
13. b
14. b
15. c
16. c
17. b
18. b
19. c
20. c

33
Republic of the Philippines
Department of Education

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Plan a Business

Module no. 4 Module Title: Planning a Business


ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant
TABLE OF CONTENTS

Module Title. Planning a Business ............................................... 1

Pre-test .......................................................................................... 1

LO 1. Discuss the Importance a Business Plan .............................. 3


Let Us Study .................................................................................. 3
Benefits Derived from Planning a Business ........................... 3
How Much Have You Learned? ....................................................... 4

LO 2. Determine the Types of Business Plan ................................... 6


Let Us Study .................................................................................. 6
Feasibility Study ................................................................... 6
Concept Paper....................................................................... 8
Business Plan ....................................................................... 8
How Much Have You Learned? ....................................................... 9
Let Us Apply What You Have Learned ............................................. 10

LO 3. Identify and Describe the Steps in


Preparing a Business Plan ................................................... 13
Let Us Study .................................................................................. 13
Guide questions to help evaluate personal resources ............. 14
How Much Have You Learned? ....................................................... 15
Let Us Apply What You Have Learned ............................................. 17

Key to Correction............................................................................ 19
HOW TO USE THIS MODULE

Welcome to the Module Planning a Business. This module contains


instructional materials and activities for you to complete.

The unit of competency Plan a Business contains the knowledge, skills


and attitudes required for the course Entrepreneurship.

You are required to go through a series of learning activities in order to


complete each of the learning outcomes of the module. Follow these activities
on your own and answer the Self-Check at the end of each learning activity.
If you have questions, dont hesitate to ask your teacher for assistance.
MODULE IV

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : PLAN A BUSINESS

MODULE TITLE : PLANNING A BUSINESS

SUGGESTED DURATION : 8 HRS

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills attitudes and values


needed in discussing the importance of a business plan and enumerating
the steps in preparing a business plan.

WHAT WILL YOU LEARN?

At the end of this module, you should be able to:

a. discuss the importance of a business plan;


b. determine the types of business plan; and
c. identify and describe the steps in preparing a business plan.

WHAT DO YOU ALREADY KNOW?

Pre-test:

Let us find out how much you already know about planning a
business.

A. Direction: Choose the best answer. Write only the letter of the
correct answer.

1. Which of the following is the most basic of all management


functions?
a. controlling
b. directing
c. organizing
d. planning

1
2. What are considered as positive factors of a business venture?
a. opportunities and weaknesses
b. strengths and opportunities
c. strengths and threats
d. strengths and weaknesses

3. Which is not true in a business plan?


a. It does not detect the defect.
b. It eliminates risk.
c. It forecasts future situations.
d. It minimizes costs.
4. What is the most likely the cause of failure of Filipino
entrepreneurs?
a. crab mentality
b. failure to meet deadline
c. weaknesses
d. bahala na attitude

B. Choose the letter of the correct answer from the pool of words in
the box then write it in your answer sheet.

a. actual business f. production plan


b. business plan g. SWOT
c. capital h. goals
d. bloodstream i. costs of productions
e. poor management j. risks
k. gold

1. _____ serves as your guide in managing your enterprise.


2. A business plan is anticipated before _____is assumed.
3. Lack of _____is one of the entrepreneurs problems to finance
business.
4. _____ is the parallel effect of lack of planning in business.
5. _____is the number of volume of intended production on a
specific period of time.
6. ____ is one of the components of business planning.
7. A marketing plan is considered the _____of the office because it
gives life to business.
8. An organizational plan is responsible on how to execute plans,
objectives and _____of an enterprise.
9. Planning can minimize ______.
10. In business, time is ________.

2
LESSON 1

DISCUSS THE IMPORTANCE OF A BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson deals with planning for a business or enterprise.

At the end of the lesson you should be able to:


a. discuss the importance of business planning;
b. appreciate certain benefits in business planning; and
c. follow the basic principles of business planning.

LET US STUDY

Words to study

micro means very small/limited in quantity


endeavor means an effort to do a task
business planning is the process of setting up
goals for a particular business
business plan means any plan that works for a
business to look ahead.

To start a small enterprise , you must have a foresight. Anticipate


what may happen to your business. Any endeavor, particularly the
desired form or type of business, sets the direction of the enterprise.

A. The Benefits Derived from Planning a Business.

Making a business a plan can minimize or eliminate risks. It


involves a careful study of the competence, interest and
resources of the entrepreneur against the needs of the
consumers. A feasibility study is necessary because through
this, an entrepreneur can determine whether his/her choice is
profitable or not.

3
A business plan can also minimize the cost of production. This
includes how each of the resources of production such as
manpower, money, materials and machines are used. Every
aspect of the business operations is monitored and controlled
which prevents unnecessary waste of resources that will result
to economy and efficiency.

A business plan can also identify the defects of the business


operations. Goals and objectives are formulated. Procedure,
strategies and techniques are planned. Reevaluation may be
done to avoid encountering the same problem.

B. The Basic Principles in Running a Small Enterprise


must consider in running a business/enterprise are the following:

1. Planning must be realistic. It must be based on available


human, financial and physical resources. Planning without
enough resources may result to the failure fail of an enterprise.
2. Planning must be based on the needs of the community. It
should fit the needs of the people in a community which can be
known through observations, personal interviews and
questionnaires.
3. Planning must be flexible. You, as the entrepreneur should be
able to adjust and to plan if development changes occur or
changes in government laws or policies happen. Planning
should respond to the trends in consumers tastes and
preferences.
4. Planning must start with simple projects. This requires simple
management and technology, thus, the micro business is
advised.

LET US APPLY WHAT YOU HAVE LEARNED

You are planning to get into t-shirt printing service business.


Conduct a market survey if the service will become successful.

Directions: Divide yourselves into two big groups. Simulate conducting


a market survey in your group. Then, present a report on the market
survey done by answering the following questions:
1. How did you conduct the market survey?
2. As a result of the survey, do you think your proposed business
will be successful? Why/why not?
3. What principle did you follow in conducting the market survey
as part of your business plan?
4. Why do you consider this activity (market survey) as an
important tool in planning a business?
4
LET US REMEMBER

Planning is important to ensure a profitable and


successful business.

HOW MUCH HAVE YOU LEARNED?

Directions: Write only the letter of the correct answer.

a. what to expect e. business plan


b. time management f. projects
c. strengths
d. micro

1. _______eliminates risks.
2. The positive factors of planning is called _____.
3. Planning is what to do it, how to do it, when to do it and
______in the future.
4. Planning must start with simple _____.
5. In business, time is gold. For this reason, an
Entrepreneur must be efficient in _____.

RESOURCES:

Computer with Internet Access


Journals
Magazines

REFERENCES:

Villanueva, et. al., Business Management III,


Adriana Publishing Co. Inc., pp. 74-76, Cubao, Quezon City
http//articles.bplans.com/

5
LESSON 2

DETERMINE THE TYPES OF BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson deals with the different types of business plan.

At the end of the lesson you should be able to:

a. enumerate the components of a business plan; and


b. determine and describe the different types of business plan;

LET US STUDY

Words to study

Component is a constituent part of the business


plan.
Feasibility study is an analysis and evaluation of a
proposed project to determine its profitability.
Marketing deals with the selling and buying
activities of the business.
Project summary deals with the introduction
statement of the problem.

After having learned about the importance of business planning,


you must know the different types of business plan.

1. Feasibility study
It is created in order to minimize risk and to ascertain the
viability of a project.
- It is not merely an investigation but a frame work on how the
operation of a business project shall be accomplished.
- It is used to determine the potential success of a proposed
business venture.

6
A feasibility study has a project summary which deals with the
introductory statement of the problem, the business name, the business
logo, the business location, descriptive definition of the project and
objectives.

A feasibility study contains five major components, namely:

a. Marketing study
The sufficient demands for the product as well as the
competitive position of the firm in the industry must be
determined.

b. Technical study
In this study, you must consider the manufacturing
process, plant size, production schedule, machinery,
plant location and layout structure, raw materials,
utilities and waste disposal.

c. Management study
- This involves on how the project shall be managed such
as the business organization including the organization
chart and function of each unit management personnel,
skills and numbers of labor required.

d. Financial study
- You should include the assessment of total capital
requirements break-even outputs, sales and prices,
amount of sales required to earn a certain amount of
profit and the cash payback period.

d. Social desirability
- This is measured by economic benefits to the people living
in the community and its vicinities.

2. Concept Paper

It is a written plan for a business on how it will be


managed. It is a tool to represent a certain venture
anticipating its future.

The different parts of the concept paper are the following:

a. Introduction This is the part that discusses the significant


details of the product/service and why the
product/service is needed by the community.

7
b. Objectives - This part gives the details of the business both
specific and general.

c. Rationale This part focuses on the advantages of putting a


certain business.

d. Terms & conditions - In this part, specific agreement from


particular to general things are clarified.

e. Recommendations This part is very important because it helps


to improve the project in the future.

3. Business Plan

A business plan describes the nature of the business, the sales


and marketing strategy, the financial background, containing a
projected profit and loss statement.

Components of Business Plan:

a. The environment The needs of the people in the community


should be identified.
b. Behavior of the product You should know the market trends,
product demand in the community, the resources,
quantity and quality goods in buying,
c. Location of the business You should consider the place where
customers prefer to buy.
d. Organizational plan The needed workers in the business must
be listed in the organizational chart.
e. Production plan This involves the manpower, money,
machinery, materials and methods to be able to produce
the desired output based on anticipated profit.
f. Financial plan You as an entrepreneur need to determine the
fiscal needs of the business and the sources of needed
funds.

4. Project Proposal
This is the initial document that converts an idea or policy
into the details of a potential project.

The Essential Parts of a Business Proposal.

a. Executive Summary
The overview of the proposal from beginning to end should
be stated in the project proposal.

8
b. Justification
This emphasizes the need of the proposal.
c. Procedure
The steps are being explained where to start and to end.
d. Objectives
The goals or targets of the business are defined.
e. Project Organization and Management
The manpower and function of each are clearly stated.
f. Budget
You should determine the source for the input and output,
the profits and the loss of the business.

LET US APPLY WHAT YOU HAVE LEARNED

Directions: Think of a service type of business which you


feel is a good venture to invest on.
Part 1: Make your own concept paper to support your
business ideas and plans. Share it to your classmates.

TITLE OF YOUR CONCEPT PAPER:

INTRODUCTION:

OBJECTIVES:

RATIONALE:

TERMS AND CONDITIONS:

RECOMMENDATIONS:

9
Part 2: Using your data in the concept paper, conceptualize a Business
Plan. Fill in the data regarding the Components of a Business Plan.

ENVIRONMENT:

LOCATION OF THE BUSINESS:

BEHAVIOR OF THE PRODUCT:

ORGANIZATIONAL PLAN:

FINANCIAL PLAN:

LET US REMEMBER

A business plan unifies the different


parts and activities of the business to
achieve its goals and objectives.

HOW MUCH HAVE YOU LEARNED?


Directions: Choose the letter of the attribute/attributes being described/
asked:
1. The component of a business plan which identifies the available
raw materials in your community.
a. behavior of the product
b. environment
c. location of the business
d. organizational plan
2. Why is an organizational plan needed in planning a business?
a. To find out what products and services are available and
which of these can be improved
b. To coordinate the activities of the work force towards the
companys goals
c. To determine the needs of the community
d. To identify the market trends in the community

10
3. It is the process of setting up goals for a particular business
endeavor and taking up steps to achieve these.
a. business enterprise
b. business planning
c. business operation
d. business expertise
4. The component of a business plan which identifies the available
raw materials in your community.
a. behavior of the product
b. environment
c. location of the business
d. organizational plan
5. There are several factors to consider in selecting the location of
your business. Which of these factors is not included?
a. the cost and availability of land
b. the quality of the product
c. the availability of transportation facilities, communication,
water, electricity and labor
d. behavior of the product

11
RESOURCES:

Computer with Internet Access


Journals
Magazines

REFERENCES:

Villanueva, et. al., Business Management III,


Adriana Publishing Co. Inc., pp. 74-76, Cubao, Quezon City
http//articles.bplans.com/
http//retail.about.com
Teneza et.al, Business Management IV,
Shekinah Publishing and Printing Press, pp. 116,
171-172; Las Pinas, City

12
LESSON 3

IDENTIFY AND DESCRIBE


THE STEPS IN PREPARING A BUSINESS PLAN

WHAT IS THIS LESSON ABOUT?

This lesson deals with the Steps in Preparing a Business Plan

At the end of the lesson you should be able to:

a. identify and describe the steps in preparing a business plan; and


b. follow the steps in preparing a business plan.

LET US STUDY

Words to study

scheme deals with the design of a project.


adequate means enough supply of the product.
management involves the administration of a
business enterprise.

If you already know the type of business you are planning to


engage into, the following are the steps which can help you in preparing
a business plan that you must follow:

1. Make an evaluation of your personal resources, interests, available


raw materials and available specialized technical skills in your
community. Create a name of your business. Does it tell well
about what you are selling? Is it easy to spell and remember?

These are guide questions to help you evaluate your personal


resources:

Are you interested in the business?


Do you have sufficient funds?
Do you possess management skills?
Are raw materials available?
Does the government give financial and technical assistance?
Do you have good personal relations with other people?

13
2. Conduct an analysis or survey of your market.
Who are your customers?
What product or service will you offer?
Is there a good demand for your product or service?
Are the customers interested in the existing product or
services?
How many competitors are there in the market?
How much is your estimated share in the market?
Could you possibly offer a better quality product or service at
a lower price?
Is there a reasonable profit?
3. Select a proper business location.
Is the location clean, decent and peaceful?
Are there customers in the place?
Are facilities such as electricity, water, transportation and
communication available?
Is the place accessible to raw materials and other supplies?
In case your first choice is not available, do you have a good
alternative?
4. Make a financial plan.
Determine your objective.
How much money will you need?
What are your sources of funds?
Does your budget determine how you will spend your
money?
How soon can you recover your investment?
5. Make a production plan.
Determine whether to buy or lease the production equipment
Will you improve the quality of an existing product?
Can your production scheme meet market demand?
Do you have a proper scheduling of production?
6. Make an organizational plan.
Find out what type of organization is most suitable
Are you acquainted with the laws, policies and requirement
of your business organization?
Who will be your workers?
What will be the duties and responsibilities of each?
7. Make a management plan.
Write down your goals and objectives.
Determine your strategies.
What customer policies will you adapt?
What human resource development program will you
undertake?
What will be your program of social responsibility?

14
Being an entrepreneur, you must have an effective business plan.
You should follow the steps in preparing a business so that the data
must be accurate and adequate. This will help you to choose the
appropriate and effective strategies to ensure success in your business
venture.

LET US APPLY WHAT YOU HAVE LEARNED

ACTIVITY: Think of a simple business you want to engage in.


Make a sample business plan of that business using the format
below:

Business Name :
Location :
Name of Owner :

Introduction :

is a registered business engaged in


owned by .

Business goals are as follows:

a. The operation started on


b. The location could be reached by
c. The business could be expanded by

Table of Contents
Section I : The Business

1. Description of the Business


The business is engaged in the distribution of or production, or of
servicing customers.

2. Product/Service
The product/service is
3. Market
Production will be distributed in (mention primary and secondary
market) The clients belong to (description of the socio-economic
level). The product is bought by clients for the following reasons:

4. Location of the Business


The business is located at
It can easily be reached by .

15
5. Competitors are as follows:

(State the name of the company and other relevant facts such as
size and possible sales)

A competitors profile includes price, quality, location, image


projected, strategies of selling and operations.

6. Price
The current price is _____. It is derived from the following factors:
(production cost and marked up costs) .

7. Marketing strategies
The product will be distributed in the following manner:

8. Management
The management group is composed of the following (name,
position, responsibility and qualification)

9. Personnel
The personnel needed are the following (enumerate the type of
work and their qualifications)

Summary of Section One

Section II: Financial Data

1. Sources and application of funding:


Secure financial assistance from

For the following purposes

Using the following collaterals

2. Capital Equipment List


The capital and equipment lists are the following:

16
Briefly describe the equipment and their uses. Include processes
employed in the production)

3. Balance Sheet
This is a statement of the financial condition of an enterprise at a
given point in time usually only a focus, quarterly, semi-annually
or annually. It shows the owner how money has been invested and
the accrued profit or losses.

4. Break-even Analysis
(It is a tool used by an entrepreneur in solving managerial
problems). It compares the total resources (TR) with the total cost
(TC)

TR represents income while TC represents expenses of the


enterprise. When TR is greater than TC, there is profit. But when
TR equals TC it is break even. There is no profit, nor loss.

5. Income Projection (Profit-Loss Statement)


a. Detailed by month(for the first year)
b. Detailed by quarter (for the 2nd, 3rd, 4th, 5th)

LET US REMEMBER

Business planning is needed to guide the entrepreneur in


the management and other aspects of the business process
to ensure profit.

HOW MUCH HAVE YOU LEARNED?

A. Directions: Choose the answer in column B to the questions in


column A. Write the letter only in your test notebook.
A B

1. Who will be your workers? a. organizational plan


2. How much money will you b. financial plan
need?
3. How many competitors are c. survey of your market
there in the market? d. management plan
4. Are there customers in the e. business location
place?
5. What customers policy will
you adapt?

17
B. Choose a partner. Exchange Business Plans that you have prepared in
the application portion. Check if all the parts are complied with. Rate the
Business Plan using the following descriptive ratings:

Descriptor Rating
Complete 5
Incomplete 3
Needs Improvement 1

RESOURCES:

Computer with Internet Access


Journals
Magazines

REFERENCE:

Villanueva, et. al., Business Management III,


Adriana Publishing Co. Inc., pp. 105-110,
Cubao, Quezon City

18
KEY TO CORRECTIONS

Pre-test
A.
1. D
2. B
3. A
4. B

B.
1. B
2. A
3. C
4. E
5. F
6. G
7. D
8. H
9. J
10. K

Lesson 1
1. E
2. C
3. A
4. F
5. B

Lesson 2

1. B
2. B
3. B
4. A
5. B OR D

Lesson 3
1. A
2. B
3. C
4. E
5. D

19
Republic of the Philippines
Department of Education

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Legalize a Business

Module no. 5 Module Title: Legalizing a Business


ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant
TABLE OF CONTENTS

Module Title. Legalizing a Business ............................................. 1

Pre-test .......................................................................................... 1

LO1. Enumerate and Explain the Procedure in


Legalizing Business ...................................................................... 1
Let Us Study .................................................................................. 1
Procedure in Registering a Business...................................... 4
Benefits Derived from Registering your Business ................... 4
Sample of Legal Documents .................................................. 6
Let Us Remember ........................................................................... 12
How Much Have You Learned? ....................................................... 12
Let Us Apply What You Have Learned ............................................. 12

Post-Test ........................................................................................ 16

Key to Correction............................................................................ 17
HOW TO USE THIS MODULE

Welcome to the Module Legalizing a Business. This module


contains instructional materials and activities for you to complete.

The unit of competency Legalize a Business contains the


knowledge, skills and attitudes required for the course
Entrepreneurship.

You are required to go through a series of learning activities in


order to complete each of the learning outcomes of the module. Follow
these activities on your own and answer the Self-Check at the end of
each learning activity.
If you have questions, dont hesitate to ask your teacher for
assistance.
MODULE V

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : LEGALIZE A BUSINESS

MODULE TITLE : LEGALIZING A BUSINESS

SUGGESTED DURATION : 12 HRS

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills, attitudes and values


needed in legalizing a business.

WHAT WILL YOU LEARN?


At the end of this module, you should be able to:

a. enumerate the procedure in legalizing the business;


b. gather legal documents pertaining to business/enterprise; and
c. explain the importance of registering the business to various
government offices.

WHAT DO YOU ALREADY KNOW?

Pre-test

Let us find out how much you already know about legalizing a
business. Read and understand the questions below. Choose the
correct answer by writing the letter of your answer in your quiz
notebook.

1. After registering with the DTI, the certificate becomes your proof
of _____.
a. authority to operate a business
b. business ownership
c. license to operate
d. payment of taxes
2. Where do you need to go to in order to secure the municipal
license or Mayors permit which will serve as your license or
permit to operate the business?
a. BIR
b. BPLO
c. CDA
d. DTI

1
3. Article of Partnership or Article of Incorporation should be
registered with this agency.
a. BIR
b. DTI
c. SEC
d. YECS
4. If you need to systematize the payment of taxes of your
business, where will you go?
a. BIR
b. DOLE
c. SEC
d. SSS
5. It is necessary to register your business to make it _____.
a. functional
b. legal
c. operational
d. profitable

2
LESSON 1

ENUMERATE AND EXPLAIN THE STEPS/PROCEDURE IN MAKING


THE BUSINESS LEGAL

WHAT IS THIS LESSON ABOUT?

This lesson discusses the steps/procedure in making the business


legal.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:

1. enumerate and explain the steps/procedure in legalizing a


business;
2. gather legal documents pertaining to business; and
3. emphasize and explain the importance of registering the business
and various government offices.

LET US STUDY

Words to Study

Ownership means an exclusive right of a person to a


business
Authorization is the issuance of approval to operate
Legalize means to be permitted by law
DTI Department of Trade and Industry
DOLE Department of Labor and Employment
SSS Social Security System
SEC Securities and Exchange Commission
CDA Cooperative Development Authority
BPLO Business Permit and Licensing Office

Legality of your business venture is necessary to make your


operation legal. The following pages shows some of the documents to be
secured from the different governments agencies to run your enterprise
legally. Without compliance with the legal requirements your business is
considered illegal. These are documentary transactions between the
owner of the business and the government.

3
I need to get a
permit for my
business, where
can I ask for
assistance?
DTI DOLE SSS
SEC BPLO CDA
Barangay Permit or
Business Clearance

The following is the procedure in registering a business as


mandated by the Introduction to Entrepreneurs of Small Enterprises,
Research and Development Foundation (SERDEF).

Register your business name with the Department of Trade and


Industry (DTI). The certificate issued after registration becomes
your proof of business ownership.
Register with your municipal city government. When you have
a municipal license or a mayors permit, this serves as your
authorization to conduct or operate the business.
Register with the Bureau of Internal Revenues (BIR). This will
help systematize your financial operation and payment of taxes.
You have to register at the Social Security System (SSS) if you
have five or more employees.
Register the Article of Partnership or Article of Incorporation
with the Securities and Exchange Commission (SEC).
Register with the Department of Labor and Employment.

There are several benefits derived from registering your business


with the government, as follows:

1. When you register your business with the Department of Trade


and Industry, the certificate issued to you becomes your proof
of business ownership.
2. The municipal license or Mayors permit issued to you serves as
an authorization for you to operate your business.
3. Your registration with the Bureau of Internal Revenue will help
you systematize your financial operations and the payment of
taxes.
4. If you have registered your business enterprise with
Cooperative Development Authority (CDA)which is optional, you
can enjoy the following privileges:

4
a. Exemption from taxes and fees except from real property and
capital gains tax, import duties and taxes, value-added tax on
imported articles, taxes on income not arising from the CDA
activity such as interest, royalties, prizes and dividends.
b. Exemption of the CDA derived income from the computations of
the owners or members in division.
c. Exemption from any government rules and regulations on
assets, income and activities directly connected with the
services of CDA.

It is a must to register your business for your own benefit and


protection. When your business has been registered you are now
ready to own your business and face challenges coming your way.

(The following pages show some samples of legal documents pertaining to


business/enterprise.)

5
Sample of Local Business Clearance as Issued and Signed by the
Office of the Barangay Captain

6
Sample of Business Permit and Licence to be Issued by the Office of
the Mayor

Front Page

7
Back Page

8
LET US APPLY WHAT YOU HAVE LEARNED

Activity 1. Interview a business owner in your neighborhood. Ask


him/her how the business was registered, how much it costs him/her to
register his/her business. Share interview results with the class.

Activity 2. Interview a shareholder of a successful cooperative


enterprise. Ask how he/she registered the business and how much is
the cost.

LET US REMEMBER

As an entrepreneur, it is important to register your


business to various government offices for your own
benefit and protection.

HOW MUCH HAVE YOU LEARNED?

Activity 1

Write the steps in registering your business. Record them in the


correct order. Do this in your quiz notebook.

12
Activity 2

Filling-up of legal forms.

Directions:
Fill-out the application form in applying for a business permit.

Front Page

13
Back Page

14
RESOURCES:

References
Legal documents from different government agencies
Business plan

REFERENCES:

Villanueva, et. al. Business Management III,


Adriana Publishing Co. Inc., pp.119-121, Cubao, Quezon
City
Teneza, et. al. Business Management III,
Shekinah Publishing and Printing Press, pp.173-176,
Las Pinas City
http://www.businessplanpro.com
http//www.business.org
http//www.businessdictionary.com

15
Post-Test

Let us find out how much you already know about legalizing a
business. Read and understand the questions below. Choose the
correct answer by writing the letter of your answer in your quiz
notebook.

1. After registering with the DTI, the certificate becomes your proof
of _____.
e. authority to operate a business
f. business ownership
g. license to operate
h. payment of taxes
2. Where do you need to go to in order to secure the municipal
license or Mayors permit which will serve as your license or
permit to operate the business?
a. BIR
b. BPLO
c. CDA
d. DTI
3. Article of Partnership or Article of Incorporation should be
registered with this agency.
a. BIR
b. DTI
c. SEC
d. YECS
4. If you need to systematize the payment of taxes of your
business, where will you go?
a. BIR
b. DOLE
c. SEC
d. SSS
5. It is necessary to register your business to make it _____.
a. functional
b. legal
c. operational
d. profitable

16
KEY TO CORRECTIONS

Pre-test and Post-Test

1. B
2. B
3. C
4. A
5. B

17
Republic of the Philippines
Department of Education
PUBLIC TECHNICAL-
VOCATIONAL
HIGH SCHOOLS
PUBLIC TECHNICAL-
VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Develop a Business Plan

Module no.6 Module Title: Developing a Business Plan


ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant
TABLE OF CONTENTS

Module Title. Developing a Business Plan ................................... 1

Pre-test .......................................................................................... 1

LO 1. Organize the Main Parts of a Business Plan .......................... 4


Let Us Study .................................................................................. 4
Activity I ........................................................................... 5
Problem/Need ....................................................................... 6
Activity II.......................................................................... 6
Statement of Vision, Mission and Values ............................... 6
Activity III......................................................................... 7
Marketing Plan ..................................................................... 7
Activity IV ........................................................................ 7
Production and Technical Plan .............................................. 10
Activity V.......................................................................... 10
Organizational/Management Plan ......................................... 11
Activity VI ........................................................................ 11
Sustainability ....................................................................... 12
Activity VII ....................................................................... 13
Sample of Projected Revenue ................................................. 14
Activity VIII ...................................................................... 15
Sample of Income Statement ................................................. 16
Activity IX ........................................................................ 17
Social Impact ........................................................................ 17
Activity X ......................................................................... 17
How Much Have You Learned? ....................................................... 18

Post-Test ........................................................................................ 22
Key to Correction............................................................................ 24
HOW TO USE THIS MODULE

Welcome to the Module Developing a Business Plan. This module


contains instructional materials and activities for you to complete.

The unit of competency Develop a Business Plan contains the


knowledge, skills and attitudes required for the course Entrepreneurship.

You are required to go through a series of learning activities in order to


complete each of the learning outcomes of the module. Follow these activities
on your own and answer the Self-Check at the end of each learning activity.
If you have questions, dont hesitate to ask your teacher for assistance.
MODULE VI

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : DEVELOP A BUSINESS


PLAN

MODULE TITLE : DEVELOPING A


BUSINESS PLAN

SUGGESTED DURATION : 20 Hours

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills and attitudes required


in developing a workable business plan.

WHAT WILL YOU LEARN?

At the end of this module, you should be able to:


a. organize the main parts of a business plan.

WHAT DO YOU ALREADY KNOW?

Pre-test

Let us find out how much you already know.

A. Read and understand the items being described below. Choose


the letter of the correct answer and write it in your quiz
notebook.

d. Addendum d. Target Market


e. Market Trends e. Sustainability
f. Mission f. Vision

1. It refers to a group of persons who use and patronize the


products/services that specifically fits their needs/wants.
2. These are documents or information attached to clarify or
support the information in the original document.
3. It is a clear description of goals.
4. It is a description of what the proponent sees if the problem is
solved.
5. It means support for business in environmental issues.

1
B. Multiple Choice. Read and understand the following statements
then select the letter of the correct answer and write it in
your quiz notebook.

1. It is the detailed description on how the business is


implemented.
a. evaluation plan
b. management plan
c. operational plan
d. organizational plan
2. It is the process of setting goals for a particular business
undertaking done through a step-by-step process.
a. Business planning
b. Feasibility planning
c. Marketing plan
d. Production plan
3. It gives the information on financial concerns and stability of
the plan.
a. Financial Plan
b. Marketing Plan
c. Organizational Plan
d. Production Plan
4. Business production and services are varied based
on____________.
a. innovation
b. lifestyle of the people
c. needs and wants
d. science and technology
5. This is the center of interest in a given garment.
a. balance
b. emphasis
c. harmony
d. proportion
6. It is part of a business plan which can be both within or beyond
the control of the entrepreneur.
a. mission
b. objectives
c. risk
d. vision
7. This plan is a course of action for obtaining and using the
money that is needed to implement the goals of the business
organization.
a. Financial
b. Marketing
c. Organizational
d. Production

2
8. It is the place where we can buy different goods from one or a
number of vendors.
a. church
b. market
c. pack
d. school
9. The 4 Ps of a good marketing plan are.
a. Package, Place, Plan, Price
b. Plan, Place, Product, Price
c. Place, Price, Product, Promotion
d. Price, Place, Promotion, Purchase
10. It is an outline of your business.
a. Business Plan Proper
b. Executive Summary
c. Overview of the Business
d. Personal Details

3
LESSON 1

ORGANIZE AND CONSTRUCT THE MAIN PARTS OF A BUSINESS


PLAN

WHAT IS THIS LESSON ABOUT?

This lesson presents concepts on how to organize the main


parts of a business plan.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:


1. organize the main parts of a business plan;
2. use survey instruments to gather data;
3. analyze and interpret survey results; and
4. construct preliminary parts of a business plan based on the
organized main parts

LET US STUDY

Words to study

Sustainability is the support for a business on environmental


issues.
Addendum is a document or information attached or added to
clarify, modify or support the information in the original
document or written work.
Target Market refers to a group of persons who use and
patronize the products/services that specifically fit their
needs/wants.
Market Trends are used to provide strategic information and
leads that will aid and sustain business development.
Market size is the number of buyers and sellers in a particular
market.
Business Risk is the probability inherent in a firms operations
and environment (such as competition and adverse
economic conditions) that may impair its ability to
provide returns on investments.

4
ACTIVITY I: The Business Plan

Directions: Recall your previous lesson on the parts of a


business plan. Then fill in the parts of the business plan in the
illustration below.

Parts of a
Business
Plan

5
In organizing the main parts of a business plan one must
consider the survey instruments to gather data and the results to
analyze and interpret the business plan.

MAIN PARTS
Section 4

Business Plan Proper

I. THE PROBLEM/NEED

This pertains to the description of the problem/need


being addressed to, as well as the reasons/rationale why the
problem/need must be addressed by the business and the
descriptions on how the business has solved the problem/need.

ACTIVITY II

Fill in the given template of the Problem/Need of the business


plan based on your gathered data.

THE PROBLEM/NEED
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

II. STATEMENT OF VISION, MISSION AND VALUES

VISION
It is a description or statement of what the proponent sees if the
problem/need is solved.

MISSION
It is a clear description of goals and objectives that presents practical
steps to achieve the vision.

VALUES
It is a clear statement of values critical to the culture, integrity and
activities of the business.

6
ACTIVITY III

Construct your own business mission, vision and values based


on your prepared product concept.

VISION
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

MISSION
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

VALUES
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

III. THE MARKETING PLAN

A. Research and Analysis


It is a description of the target market, market size,
competition, market share and market trends.

B. Marketing Strategies
This includes the Four Ps price, promotion, product and
place. The Four Ps all work together to reinforce the positioning
strategy which is based upon what your target customer wants
or needs.

ACTIVITY IV

Fill in exercises A, B and C based on your product concept and


data gathered.

EXERCISE A

MARKET PLAN

Instructions: In a group, write the market plan and be sure to include


the features of your product or service, the target audience
and your marketing strategies.

7
Product:________________________
Target Market: Who will buy your product/service? Why will they buy
it?

OTHERS
PRODUCT
AGE JOB RESIDENCE (Please
INTEREST
Specify)
___________ ___________ ___________ ___________ ___________

Competitors: Who else sells a product or service similar to yours?


(List up to three)
a. Excellent Bakery
b. Heavens Touch Bakery
c. Pan de Manila

Do your competitors have a large clientele, or they seem to be busy?


a. ___________________ b. ___________________ c. __________________

When are your competitors most busy?

HOURS DAYS MONTHS


a.____________________ ______________________ _____________________
b.____________________ ______________________ _____________________
c.____________________ ______________________ _____________________

Where do your competitors customers live?


a. Within one kilometer: Two to five kilometer:
b. Within one kilometer: Two to five kilometer:
c. Within one kilometer: Two to five kilometer:

EXERCISE B

MARKET PLAN

Comparison Chart of Competitors:

Directions: Underline the appropriate answer that best describes the


statement.

COMPARE Excellent Heavens Touch Pan de Manila

Market Share % GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR


Quality GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR
Location GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR
Size of Facility LARGE,MED,SMALL LARGE,MED,SMALL LARGE,MED,SMALL
Prices HIGH, AVERAGE,LOW HIGH, AVERAGE,LOW HIGH, AVERAGE,LOW
Reputation GOOD,FAIR,POOR GOOD,FAIR,POOR GOOD,FAIR,POOR

8
Pricing:
How much will you charge?______________________________________
Why will you charge this price? __________________________________
How much do your competitors charge?__________________________
Why do your competitors charge that price?______________________

Advertising

Indicate choice of sales tools: REASON FOR CHOOSING THIS METHOD

Telephone _________________________________________________________
Personal Contact _________________________________________________________
Paid Advertising _________________________________________________________
a. Newspaper Ads
b. Radio and TV
c. Posters, signs and billboards
d. Direct mail brochures, flyers, letters, samples (choose one)
Free Publicity _________________________________________________________
Using Contacts _________________________________________________________
Public Relations _________________________________________________________
Sales Promotions _________________________________________________________

EXERCISE C

MARKET PLAN

Public Relations

What can you do to get the attention of the potential customers:


Newspapers? ________________________________________________
Magazines? ________________________________________________
TV Stations? ________________________________________________
Radio Stations? ________________________________________________
Promotions ________________________________________________

Which of the following will you use to get your product or service into
the hands of the customers? Why?
Games ________________________________________________
Coupons ________________________________________________
Special Prices ________________________________________________
Double Offers ________________________________________________
Other (pls. specify) ________________________________________________

9
IV. PRODUCTION AND TECHNICAL PLAN

The Production Paradigm

Transformation
Process
Inputs Outputs
ASSEMBLING
LABOR CANNING FINISHED PRODUCTS:
LAND CONSTRUCTING BAGS
MACHINE CULTURING T-SHIRTS
RAW MATERIALS DRAWING FURNITURE
CANNED GOODS
SEWING
PASTRY
MILLING
PRINTING
BAKING

ACTIVITY V

Illustrate your own production paradigm based on your product


concept using the box below.

10
V. ORGANIZATIONAL/MANAGEMENT PLAN

This plan includes the members of the team and the teams
contribution to the business.

Here is an example of an organizational/management


chart:

Manager/Owner

Supervisor

Clerk

Maintenance

ACTIVITY VI

Design your own organizational/management chart based on


your chosen business.

11
SECTION V
I. SUSTAINABILITY

I. Financial Plan
Where the money comes from and where it goes.
This section of the business plan is the key area, where
people will judge how competent you are as an entrepreneur.
It must be well written, concise and sufficiently documented.

Example of financial plan:

A. Anong Sarap Bakery, the initial capital is P 40,000.00.


There will be five members. Each of the members shall
share Php 8,000.00.

B. Monthly Expenses
Table 1
MONTHLY EXPENSES

FIXED COST
Rental PhP3,000.00
Salaries:
Baker 3,500.00
Helper 3,000.00
Roller 450.00
Mixer 900.00
Slicer 200.00
Tools & Utensils 175.00
(A)TOTAL FIXED COST PhP 11,225.00

VARIABLE COST (Month)


Raw Materials
Flour PhP 3,000.00
Butter/Lard 550.00
Yeast/Leavening 120.00
Egg 1,000.00
Flavoring 500.00
Sugar 1,000.00
Telephone Bill 600.00
Electricity 1,000.00
LPG 1,000.00
Water 500.00
Transportation 1,000.00
Miscellaneous 2,000.00
(B)TOTAL VARIABLE PhP 12,370.00
COST
(A+B) TOTAL MONTHLY Php 23,595.00
COST

Table 1 shows the projected expenses per month during the


initial year of operation. It is noted that fixed cost is greater that the
variable costs.

12
ACTIVITY VII

Show your projected expenses per month during the initial year of
your operation based on your product concept. Use table 1 as your
example.

FIXED COST
Rental
Salaries:

(A)TOTAL FIXED
COST

VARIABLE COST
(Month)
Raw Materials

Telephone Bill
Electricity
Water
Transportation
Miscellaneous
(B)TOTAL VARIABLE
COST
(A+B) TOTAL
MONTHLY COST

13
Table 2
PROJECTED REVENUE

Projected Projected Yearly


Types of Daily Monthly
Costing Volume Volume Projected
Bread Revenue Revenue
Daily Monthly Revenue
C P 1.50
Peter
M - 50 200 P 400.00 6000 P 12,000.00 P144,000.00
Pandesal
SP P 2.00
C P 4.00
Monay
M P 1.00 100 P 500.00 3000 P 15,000.00 P180,000.00
Lisa
SP P 5.00
C P 4.50
Mama
M P 1.50 50 P 300.00 1500 P 9,000.00 P108,000.00
Empanada
SP P 6.00
C P 1.75
Hopia Like
M - .75 150 P 375.00 4500 P 11,250.00 P135,000.00
Ko
SP P 2.50
C - P 22.00
Tasty ang
M P 5.00 25 P 675.00 750 P 20,250.00 P243,000.00
Bread ko!
SP P 27.00
Total 525 P 2,250.00 15750 P 67,500.00 P810,000.00
Cost C
Mark-up - M
Selling price - SP
Table 3
MONTHLY PROJECTED COST REVENUE

Jan Feb Mar Apr May Jun


Revenue P67,500.00 P69,187.50 P72,646.88 P79,911.56 P87,902.72 P96,692.99
Cost P23,595.00 P24,184.88 P25,394.12 P27,933.53 P30,726.88 P33,799.57
Projected P43,905.00 P45,002.63 P47,252.76 P51,978.03 P57,175.84 P62,893.42
Net Profit

Table 4

Jul Aug Sep Oct Nov Dec Total


P99,110.32 P94,154.80 P91,800.93 P87,210.88 P104,653.06 P125,583.67 P1,076,355.31
P34,644.56 P32,912.33 P32,089.52 P30,485.05 P36,582.06 P43,898.47 P376,245.98
P64,465.75 P61,242.47 P59,711.40 P56,725.83 P68,071.00 P74,878.10 P700,109.33

Table 4 shows that the months from August to October are


considered non-peak months. It is assumed that the business grows
by its monthly profit because of old and new consumers of the
products. According to the table shown above, August to October are
non-peak months (5% loss from previous month is computed) whereas
June, November and December are peak months (for June, 10%
increase of sales from previous month and 20% for the latter months).

14
Break-Even

Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)

When TR is greater than FC and VC means the business is earning profit.

When TR is less than the FC + VC means the business is losing.

When TR = then FC + VC, the business is break-even.


Tables 2 & 3 showed the projected cost and revenue by month.
Based on the table the Total Revenue is greater than the combined
fixed and variable cost. It indicates that Anong Sarap Bakery has the
great potential of generating profit.
ACTIVITY VIII

Compute your projected cost and revenue by month based on you


product concepts. Use tables 2 and 3 as your examples.

Projected Revenue
Projected Projected Yearly
Daily Monthly
Types Costing Volume Volume Projected
Revenue Revenue
Daily Monthly Revenue

Total

Projected Monthly Revenue

Jan Feb Mar Apr May Jun


Revenue
Cost
Projected
Net Profit
July Aug Sep Oct Nov Dec Total

15
Examples of Projected Income Statement and Cashflow

Table 4
ANONG SARAP BAKERY
PROJECTED INCOME STATEMENT
FOR THE YEARS ENDED 2008 AND 2009

2008 2009
REVENUE PhP 1,076,355.31 PhP 1,237,808.60
Cost /Expenses PhP376,245.98 Php432,682.87
Projected Net Income PhP700,109.33 PhP805,125.73
Projected Income for the year is expected to by at least rise by 15%
Table 5
ST
CASH FLOW 1 QUARTER OF 2008
January February March
Beginning Cash Balance P 40,000.00 P 60,310.00 P 81,127.75
Cash Inflows
Net Income P 43,905.00 P 45,002.63 P 47,252.76
P 83,905.00 P 105,312.63 P 128,380.51
Cash Outflow
Fixed Cost P 11,225.00 P 11,225.00 P 11,225.00
Variable Cost P 12,370.00 P 12,959.88 P 14,169.12
P 23,595.00 P 24,184.88 P 25,394.12
Ending Cash Balance P 60,310.00 P 81,127.75 P 102,986.39

I. For the initial operation of Anong Sarap Bakery, the


investments shall come entirely from its 5-member team
sharing equally. Each will have 20% capital share.
II. The initial source fund may be generated by special fund -
raising activities from the school. This can also be coursed
through the YECS for the students to invest.
III. Based on our projection the business will earn 2.5% on the first
month and 5% on the second month. Having this as a
continuing trend, it is expected that after a year, the 15% return
on investment is highly feasible.

ACTIVITY IX

Compute your projected income statement for the year ended and
cash flow for the first quarter of the year based on you product
concept. Use Table 4 and 5 above as you guides.

PROJECTED INCOME STATEMENT


FOR THE YEARS ENDED

REVENUE
Cost /Expenses
Projected Net Income

16
ST
CASH FLOW 1 QUARTER OF
January February March
Cash Balance- Beginning
Cash Inflows
Net Income
Cash Outflow
Fixed Cost
Variable Cost
Cash Balance Ending

II. SOCIAL IMPACT

This part should enumerate the impact of the business


activity to its employees, consumer and the community as well.
Social impact should also emphasize social responsibility to
sound environment and sanitation practices.
The impact should be stated in a clear and concise
statement that is anchored on the mission, vision and values of
the business.

Social Impact Sample Form

1. Anong Sarap Bakery aspires to be the most admired


cooperative bakeshop in Marikina City. Its unique feature is
the cooperative spirit among its incorporators. In the next
years to come we want this bakery to be operative inside the
ERVHS Campus, where students can have their on-the-job-
training (OJT) and they can invest in the future.
2. Anong Sarap Bakery will conduct activities that would
promote spirit of entrepreneurship through active
participation in community and school activities since they
are the number one clientele of the bakeshop.
3. Our target is to have a bakeshop where students through
their on-the-job-training (OJT) program can work with. It
vows to support the training needs of the school in terms of
baking, marketing, back office operations and food service.
Anong Sarap Bakery considers itself as partner in progress of
the community and school.

17
ACTIVITY X
Write the social impact of your chosen business by answering
the following.

1. What is the desired outcome of your business as stated in


your vision statement?
___________________________________________________________.
2. What are the business activities and its corresponding social
impact? Write it in the appropriate column.

Business Activity Social Impact


1.
2.
3.
4.

3. What are your business programs directly benefiting the


following stakeholders?
a. employees
b. school
c. community

LET US REMEMBER

A workable business plan maximizes the chances


of starting a viable and sustainable business.

HOW MUCH HAVE YOU LEARNED?

ACTIVITY
Prepare your own business plan according to your chosen
business following the given format.

Business Name :
Location :
Name of Owner :

Introduction :
is a registered business engaged in
owned by .

Business goals are as follows:

a. The operation started on


b. The location could be reached by
c. The business could be expanded by

18
Table of Contents
Section I : The Business

1. Description of the Business


The business is engaged in the distribution of or production, or
of servicing customers.

2. Product/Service
The product/service is
3. Market
Production will be distributed in (mention primary and
secondary market) The clients belong to (description of the
socio-economic level). The product is bought by clients for the
following reasons:

4. Location of the Business


The business is located at
It can easily be reached by .
5. Competitors are as follows:

(State the name of the company and other relevant facts such as
size and possible sales)
A competitors profile includes price, quality, location, image
projected, strategies of selling and operations.
6. Price
The current price is _____. It is derived from the following
factors: (production cost and marked up costs) .

7. Marketing strategies
The product will be distributed in the following manner:

8. Management
The management group is composed of the following (name,
position, responsibility and qualification)

9. Personnel
The personnel needed are the following (enumerate the type of
work and their qualifications)

Summary of Section One

19
Section II: Financial Data

1. Sources and application of funding:


Secure financial assistance from

For the following purposes

Using the following collaterals

2. Capital Equipment List


The capital and equipment lists are the following:

Briefly describe the equipment and their uses. Include


processes employed in the production)

3. Balance Sheet
This is a statement of the financial condition of an enterprise at
a given point in time usually only a focus, quarterly, semi-
annually or annually. It shows the owner how money has been
invested and the accrued profit or losses.

(Name of Business)
Balance Sheet
June 30, 20XX

ASSETS
Cash P xxx,xxx.xx
Account Recievable xxx,xxx.xx
Supplies xxx,xxx.xx
Equipment xxx,xxx.xx

TOTAL ASSETS P xxx,xxx.xx

LIABILITIES AND OWNERS EQUITY

Accounts Payable P xxx,xxx.xx


Bank Loan xxx,xxx.xx P xxx,xxx.xx

Capital P xxx,xxx.xx
Add: Net Income xxx,xxx.xx
Total xxx,xxx.xx
Less: Drawing xxx,xxx.xx xxx,xxx.xx

TOTAL LIABILITIES AND OWNERS EQUITY P xxx,xxx.xx

20
4. Break-even Analysis
(It is a tool used by an entrepreneur in solving managerial
problems). It compares the total resources (TR) with the total
cost (TC)

Break-Even

Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)

When TR is greater than FC and VC means the business is earning profit.

When TR is less than the FC + VC means the business is losing.

When TR = then FC + VC, the business is break-even.

5. Income Projection (Profit-Loss Statement)


a. Detailed by month(for the first year)

(Name of Business)
Income Statement
For the Month Ended June 30, 20XX

REVENUES
Bank Loan P xxx,xxx.xx

OPERATING EXPENSES
Salary Expense P xxx,xxx.xx
Rent Expense xxx,xxx.xx
Supplies Expense xxx,xxx.xx
Total Operating Exp. xxx,xxx.xx

NET INCOME P xxx,xxx.xx

21
Post-test

Let us find out how much you already know.

B. Read and understand the items being described below. Choose


the letter of the correct answer and write it in your quiz
notebook.

a. Addendum d. Target Market


b. Market Trends e. Sustainability
c. Mission f. Vision

1. It refers to a group of persons who use and patronize the


products/services that specifically fits their needs/wants.
2. These are documents or information attached to clarify or
support the information in the original document.
3. It is a clear description of goals.
4. It is a description of what the proponent sees if the problem is
solved.
5. It means support for business in environmental issues.

B. Multiple Choice. Read and understand the following statements


then select the letter of the correct answer and write it in
your quiz notebook.

1. It is the detailed description on how the business is


implemented.
a. evaluation plan
b. management plan
c. operational plan
d. organizational plan
2. It is the process of setting goals for a particular business
undertaking done through a step-by-step process.
a. Business planning
b. Feasibility planning
c. Marketing plan
d. Production plan
3. It gives the information on financial concerns and stability of
the plan.
a. Financial Plan
b. Marketing Plan
c. Organizational Plan
d. Production Plan
4. Business production and services are varied based
on____________.
a. innovation
b. lifestyle of the people

22
c. needs and wants
d. science and technology
5. This is the center of interest in a given garment.
a. balance
b. emphasis
c. harmony
d. proportion
6. It is part of a business plan which can be both within or beyond
the control of the entrepreneur.
a. mission
b. objectives
c. risk
d. vision
7. This plan is a course of action for obtaining and using the
money that is needed to implement the goals of the business
organization.
a. Financial
b. Marketing
c. Organizational
d. Production
8. It is the place where we can buy different goods from one or a
number of vendors.
a. church
b. market
c. pack
d. school
9. The 4 Ps of a good marketing plan are.
a. Package, Place, Plan, Price
b. Plan, Place, Product, Price
c. Place, Price, Product, Promotion
d. Price, Place, Promotion, Purchase
10.It is an outline of your business.
a. Business Plan Proper
b. Executive Summary
c. Overview of the Business
d. Personal Details

23
KEY TO CORRECTION

Pre-test and Post-Test


A. 1. F
2. A
1. C
2. C
3. E
B. 1. C
2. A
1. A
2. C
3. A
4. C
5. A
6. B
7. C
8. B

24
Republic of the Philippines
Department of Education

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS

Unit of Competency: Evaluate the Business Plan

Module no. 7 Module Title: Evaluating the Business Plan


ACKNOWLEDGMENT

The Department of Education wishes to extend thanks and


appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.

This learning material was developed, enhanced and refined by the


following personnel:

Writeshop on the Development of CBC-CBLM

Writers:

MARYAN C. CABASAG
Solana Fresh Water Fishery School

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School

MA. JOSEFINA B. LUNA


E. Rodriguez Vocational High School

DAISY VILLANUEVA
Malolos Marine Fishery School

GAY BUENAVISTA
Muntinlupa Business High School

JEANNETH CUETO
Muntinlupa Business High School

OFELIA F. BERNARDO
Jones Rural School

ROLANDO M. CUBANGBANG
Jones Rural School
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School

LITO L. AGCAOILI
Alcala Rural School

Encoders:

WARREN LLOYD MANUEL

MARISOL E SALDIVAR

MIA LORAINE MANUEL

CARLO MAGPANTAY

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades

Writeshop on the Refinement and Enrichment of CBC-CBLM of


Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

CECILIA C. BUNAO
Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila

OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II

ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II

JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II

Encoders:

WARREN LLOYD MANUEL


Fairview, Quezon City

MARISOL SALDIVAR
Taguig City

EDUARDO PINEDA
Cauayan, Isabela

CARLO MAGPANTAY
Project 4, Quezon City

MIA LORAINE MANUEL


Fairview, Quezon City

Editor:

ESTRELLITA EVANGELISTA, Ed. D.

Facilitator:

ORLANDO MANUEL, Ph. D.


Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City

MARYAN C. CABASAG
Solana Fresh Water Fishery School
Iraga, Solana, Cagayan
Region 02

MA. GENEFREDA M. CUANAN


Don Alejandro Roces Sr. Science Technology High School
Roces Ave., Brgy. Obrero, Quezon City
NCR

Encoder:

MIA LORAINE MANUEL

Facilitator:

RENE GAOR DELFINO


Muntinlupa Business High School

Editors:

CAROLINA F. CHAVEZ
Principal II
Muntinlupa Business High School

AIDA T. GALURA VSA II


Angeles City National Trade School

BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School

CORAZON ECHANO, Ph.D.


Consultant
TABLE OF CONTENTS

Module Title. Evaluating a Business Plan .................................... 1

Let Us Study .................................................................................. 2


Rubrics for Business Evaluation ........................................... 2
Rubrics for Oral Presentation and Defense ............................ 6
How Much Have You Learned? ....................................................... 6
Let Us Apply What You Have Learned ............................................. 6
HOW TO USE THIS MODULE

Welcome to the Module Evaluating a Business. This module


contains instructional materials and activities for you to complete.

The unit of competency Evaluate a Business contains the


knowledge, skills and attitudes required for the course
Entrepreneurship.

You are required to go through a series of learning activities in


order to complete each of the learning outcomes of the module. Follow
these activities on your own and answer the Self-Check at the end of
each learning activity.
If you have questions, dont hesitate to ask your teacher for
assistance.
MODULE VII

UNIT OF COMPETENCY : EVALUATE THE BUSINESS


PLAN

MODULE TITLE : EVALUATING THE


BUSINESS PLAN

SUGGESTED DURATION : 20 HOURS

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills and attitudes required in


evaluating, presenting and defending business plan.

WHAT WILL YOU LEARN?

At the end of this module, you should be able to:

a. evaluate the presented business plan according to a set of


criteria.

LET US STUDY

Words to Study

Business Plan means any plan that works for a


business to look ahead.
Evaluation means assessment of completed work
according to a set of criteria
Rubric is a scoring guide used in subjective
assessments.

After preparing your business plan, it is now time to assess the


viability of the business you want to venture in using the rubrics.

1
Business Plan Oral Presentation Rubric
Business Name: _____________________________________________________________
Student(s) Names:_____________________________________________ School: _______________________
CATEGORY 4 3 2 1 Points
Executive All required aspects of the All required aspects of the The executive summary is The required aspects of the
Summary/Overview of executive summary are executive summary are interesting but some required executive summary are not
the Business included and grasps the included information is missing included and does not grasp
evaluator's attention the reader's attention
Problem/Product/Service Covers product/service Includes essential knowledge Includes information about the Content is minimal or
Description description with great detail about the product/service product/service but not completely incomplete

Marketing Plan/ Marketing strategies are well Almost all the marketing Some of the marketing strategies Many requirements were not
presented: customer demand strategies are well documented; are covered, the advertising is met.
is demonstrated and customer demand is incomplete
advertising is appropriate demonstrated and advertising
and well done is appropriate
Financial Soundness The financial plan is excellent The financial plan is complete The financial plan does not include There are several errors or
and complete but not presented in an all of the required information parts omitted in the financial
organized manner plan
Sustainability potential is The business idea clearly The business idea could be The business idea would have to The business plan did not
addressed demonstrates sustainability. sustainable, requiring some be modified significantly to address the potential for
Continuation is a decision to modifications demonstrate sustainability sustainability
be made by the owner(s)
Creativity in Idea and The business idea is creative The business idea displays The business idea is not very There is little display of
Opportunity and the plan demonstrates creativity with some original but has opportunity for creativity
clear opportunity for success opportunity for success success
Spelling and There are no spelling or There is one to two spelling or There are three to four spelling The business plan has many
Punctuation punctuation errors in the punctuation errors in the and punctuation errors in the spelling and punctuation
business plan business plan business plan errors.

Presentation to Judges Interesting, well-rehearsed. Relatively interesting and Able to hold attention of judges Presentation was not
Displayed complete rehearsed. Displayed but lacked knowledge of business prepared. Unorganized
knowledge and confidence in knowledge and confidence in plan. Coverse with the judges business plan. Attempts to
product/service. Converse product/service. Coverse with poorly converse with the judges
with the judges execellently the judges relatively well

Judge: ________________________________ Total Points


2

3
RUBRICS FOR BUSINESS PLAN PAPER EVALUATION

Description Rubric Rating


10 8 6 4
Executive Summary

Personal Details
I. Names & Brief Biography
II. Name of Adviser/s & Brief Biography
Overview of the Business
I. Name of the Business
II. Description of the Business Model
III. Statement of Vision, Mission, and Values
Business Plan Proper
I. The Problem/Need
A. Description of the exact problem/need
addressed
B. Reasons/rationale why the problem/ need
must be addressed by the business
C. Descriptions on how the business has
solved the problem/need
II. Statement of Vision, Mission , and Values
A. Vision
Description/statement of what the proponent
sees if the problem/ need are solved.
B. Mission
Clear description of goals and objectives that
present practical steps to achieve the vision.
C. Clear statement of values critical to the
culture, integrity and activities of the business
III. The Marketing Plan
A. Research & Analysis
1. Description of the Target Market
2. Market Size
3. Competition/Market Share
4. Market Trends
B. Marketing Strategies
1. How the product/service be introduced
in the market?
2. How will the customers be reached and
served?
3. How will the investors be served?
4. Description of the business ownership,
roles of the partners.
5. Value Added Features
6. Location of the business
IV. Production and Technical Plan
A. Detailed description of products/services

3
B. Operating Strategies
1. Description/Illustration of production
model
2. Detailed description of raw material,
suppliers, transportation needed and
how these will be accessed.
3. Details/data presented on how the
Products/services will be further
developed and the help needed and the
agency or company who can do it.
C. Critical Risks
a. Data on existing competitors
b. Statement on how the proposed business
is different from the others
c. Description/Illustration of the proposed
business' competitive strategy
d. Partners are identified, their roles, and
added value to maximize impact.
e. Detailed description of the risks and
opportunities (SWOT Analysis)
f. Description on how the business would
capitalize to prevent the risks.
V. Organizational/Management Plan
A. Members of the team
B. Team's contribution to the business
C. Others who can be part of the team
VI. Operational Plan
A. Detailed description on how the business will
be implemented.
a. Assignment of tasks
b. Schedules of deliverables
c. Data of necessary resources
d. Description/Illustration of operational
model and work flow
f. Description of business back progress and
division of works
g. Data on estimates of the business
operations
B. Monitoring and Evaluation
a. Statement of outcome the business will
achieve based on targets
b. Descriptions/Illustrations on how you will
monitor achievement
c. Statement of performance targets
d. Time line on when the targets will be
achieved
Sustainability
I. Financial Plan

4
(This includes strategies for fund raising.)
A. Soundness of the average investment needed
B. Data/Schedule of the specific investments
needed in 1 - 2 years
C. Percentage share on investments/capital of
each member of the proponents
D. Detailed description on how funds will be
raised to start the business
E. Data/Statement on how many years the
business will earn profit
II. Social Impact
A. Statement of the business' long-term desired
outcomes
B. Statement of the social impact generated from
each of the business activities
C. Statement/data on the benefit and impact of
the business to the community

5
LET US APPLY WHAT YOU HAVE LEARNED

Each group will be called at random to defend their prepared


Business Plan. Teacher forms a Panel of Evaluators (composed of 5
good students) to rate the presenter using the Rubrics. Ratings will be
posted on the Bulletin Board.

LET US REMEMBER

A well prepared business plan aids the


entrepreneur to be successful in his/her business
venture.

RESOURCES:

Worksheets
Survey Forms
Checklists
Score card

REFERENCES:

Villanueva , et. al, Business Management III, Adriana Publishing Co.


Inc. , Quezon City, 2003
Students Proposed Business Plan
Sample Business Plan, Muntinlupa Business High School
www.businessdictionary.com

You might also like