12

ENTREPRENEURSHIP
Learning Activity Sheets
Quarter 4
4 Ms of Operations
Product/ Service Development
Business Model

Grade 12 - Sapphire and Diamond

Please answer the following:

I- 4Ms Operation

A. Activity 1- word search (answers only)

B. Analyze the picture (answers only)

C. Essay (copy and answer)

II- Product / Service Development

A. Activity 1. Identify if it is Product features or Product Benefit (answers only)

B. Activity 2. Identify target audiences ( answers only)
C. Activity 3. Drawing

III- Business Model

A. Multiple choice – copy and answer

Note: every task you completed should be documented and written on a sheet of A4 size bond
paper (“ A4 sir? Oo A4 . Sa bond paper sir ? oo sa bondpaper)
 ENTREPRENEURSHIP
Name of the Learner: Grade Level:
Section: Date:

4 Ms of Operations

Background Information for Learners

Management is the art of getting things done with and through other people. It is
imperative for an entrepreneur to know about how to keep the business running with the least
effort (Edralin 2019). Production is an activity that converts materials into useful forms.
Operations Management is how organizations produce or deliver the goods and services that
provide the reason for their existence (YGOAL 2016). To understand more about operations
management you may watch this video at Youtube https://bit.ly/3br0XeY.

Lesson 1: Demonstrate Understanding of the 4Ms of Operations

The 4M’s of operations cover the input portions. These 4 M’s are composed of
Manpower, Method, Machine and Materials. These four domains are also applicable to
business opportunities since it is in essence-tied to manufacturing as well.
Fig. 1.

INPUT PROCESS
Materials OUTPUT
Materials
Manpower (Final
Manpower Method Product)
Method
Machine
Machine

Manpower is the worker or human workforce involved in the manufacturing process of

business. People run factories and service establishments. Even factories with the most
advanced and automated machines still require good people to operate and maintain the
machine. Hiring the right people is the first step to good operations management (Morato
2017). Some of the criteria that an entrepreneur to consider in hiring workforce:
a. Educational qualifications and experience required for the job
b. Status of employment (permanent or contractual)
c. Number of employees/ staffs needed in the job
d. Skills and expertise required
e. Availability of potential workers in the community
f. Salary requirements and other mandatory benefits (Aduana 2017).
Method refers to the system and step by step process in the business. The process or
technique of converting raw materials to finished products. Operations proper implements and
runs the factory or service shop that converts the input into output (Morato 2017). Wrong
methods can jeopardize the operations because it may not be able to attain the results. The
selection of the method of production is dependent on some factors:
● Product to produce
● Mode of production
● Manufacturing equipment to use, and
● Required skills to do the work.
Machines are also important in the operations of the business. It refers to the
manufacturing equipment used in the production of goods or delivery of services. Without
proper equipment, business will not be able to perform the needed tasks efficiently and fast.
Selecting an equipment to purchase, the entrepreneur may consider the following important
elements:
● Types of products to be produced
● Production system to be adopted
● Cost of the equipment
● Capacity of the equipment
● Availability of spare parts in the local market
● Efficiency and durability of the equipment
● Skills require in operating the equipment
Materials simply refers to the raw materials needed in the production or manufacturing of
a product. Sourcing of raw materials is critical in any business, the entrepreneur would want to
acquire the cheapest possible price at a highest quality. The entrepreneur may consider the
following factors in the selection of raw materials:
● Cost
● Quality
● Availability
● Credibility of suppliers
● Waste that the raw materials may produce
Understanding more about 4 Ms of operations, you may watch this video
http://bit.ly/4MsOperations.

Describe the 4Ms of operations in relation to the business opportunity

Operations Management refers to the activities, decisions and responsibilities of
managing the resources, which are dedicated to the production and delivery of products and
services. It can contribute to the success of business by using available resources to effectively
produce products and services in a way that satisfies the customers. Production Management
is important in the business firm (YGOAL 2016):
● It helps the business to achieve all its objectives. Therefore, the firm may increase its
sales.
● It helps the business to satisfy its customers. Therefore, it increases the firm's
reputation, goodwill and image.
● It helps to introduce new products in the market. Therefore, the firm can develop and
offer newer and better quality products.
 ● It helps the business to support other functional areas in the organization such as
marketing, finance and human resource. Therefore, marketing can find an easier means
to sell products and services, finance can get more funds due to increased sales and
human resources can effectively manage the workforce due to better performance of
the production management.
● It helps the business to face competition. Therefore, the firm can produce products of
right quantity, right quality, appropriate price and at the right time.
● It helps the business to facilitate optimum utilization of resources such as manpower,
machines, methods and materials. Therefore, the firm can meet the objectives.
● It helps the business to reduce the cost of producing products and services. Therefore,
the firm can achieve cost efficiency objectives.
● It helps the business to expand and grow. Therefore, the firm can earn higher profits.
● It helps the business to generate employment.
● It helps the business to boost the economy.
For more information, you may watch this video https://bit.ly/32Vp2Xy.

Learning Competency with Code

1. Demonstrate understanding of the 4Ms of Operations (Machine, Manpower,
Method, Materials)
2. Describe the 4Ms of operations in relation to the business opportunity
TLE_ICTAN11/12EM-Ia-2

Activities

Activity 1: WORD SEARCH

Direction: Search for the ten (10) words related to 4 Ms of Operations in the box below. Clues
are provided. Encircle the word in the box and write it before the clue.

1. A manufacturing equipment used in the productions of goods or delivery of services.

2. The process of technique of converting raw materials to finished product.
3. The human workforce in the manufacturing process of business.
4. The raw materials needed in the production process.
 5. An activity that converts materials into useful forms.
6. What is put in, taken in, or operated on by any process or system
7. A series of actions or steps taken in order to achieve a particular end.
8. Finished product.
9. The art of getting things done with and through other people.
10. The actions and decisions made by participants and members of a business that affect
the production, distribution, service, and management.

Activity 2: Analyze the picture. Identify the 4M’s of Operations in the picture.
Example:

Source: https://bit.ly/3h1YbOw
MATERIALS Meat
MANPOWER Cook
METHOD Frying
MACHINE Gas Stove, Fying
pan, and Spatula

A.
MATERIALS
MANPOWER
METHOD
MACHINE

MATERIALS
MANPOWER
METHOD
MACHINE
C.
MATERIALS
MANPOWER
METHOD
Source: https://bit.ly/3btwGw6 MACHINE

Activity 3: Essay (10 points)

Direction: Based on the three pictures, In Input-Process-Output (IPO) model, when is
manpower, method, materials and machine used as an input and as a process? Explain your
answer.

EXCELLENT VERY GOOD AVERAGE

5 4 3

Ideas This paper is clear and focused. It holds This paper is mostly The writer is beginning to
the reader's attention. Relevant details and focused, and has some define the topic, even though
quotes enrich the central theme. good details and development is still basic or
quotes. general.
Organization The organization enhances and shows the Paragraphs are mostly The organizational structure
central idea or theme. The order, structure organized, in order, and is strong enough to move the
of information is compelling and moves make sense to the reader through the text
the reader through the text. reader. without too much confusion.
Sentence Fluency The writing has an easy flow, rhythm, and The writing mostly The text hums along with a
cadence. Sentences are well organized flows, and usually steady beat, but tends to be
with strong and varied structure that invites oral reading. more businesslike than
invites expressive oral reading. musical, more mechanical
than fluid.
 ENTREPRENEURSHIP
Name of the Learner: Grade Level:
Section: Date:

Product/ Service Development

Background Information for Learners

Product/ Service development refers to all stages involved in bringing a product from
concept or idea. It is the process of developing, testing, and commercializing a product/ service
with the ultimate objective of solving the problem of the primary target market. Product/
service development does not mean it is a product management. Product development is the
entire product’s journey including:
● Identifying market needs
● Conceptualizing and designing the product
● Building the product road map
● Developing a Minimum Viable Product
● Releasing the Minimum Viable Product
● Iterating based on user feedback
Before a new product/ service is introduced in the market, refining the product/ service
should be the first to focus and validate the market acceptability.
Developing a Product or Service Description
The product/ service production describes how a product/ service works and how it
benefits the customers. A clear product/ service description is important and this will serve as
the blueprint of all business operations. Developing a product/ service description is how you
will convince the customer to buy your product. It is now one of the most important aspects of
an online shop on how to convince customers to click the “Add to Cart” (Patell n.d.). Here are
the three things to consider in developing a product/ service description that sell:
1. TARGET AUDIENCE
- A good product/ service description starts with a solid buyer persona (break down
of the characteristics of your potential customers. Identify which features would be
of most interest to your potential buyers. Put yourself in the
customer’s shoes where the product/ service description
will address (Matson 2020).
2. PRODUCT BENEFITS
- Potential customers want to
know how they benefit them of
your product/ service. Developing a
product/service description, it is
important to write the factual information and features of
the product/ service highlighting what your potential customer’s needs and address
the buyer’s problems and how they can improve their lives (Matson 2020).
3. POWER WORDS BUT REALISTIC
- There are certain words and phrases that naturally elicit an
emotional response in humans. Old statements such as
“World-class service or product excellence” may not
matter to customers at all (Matson 2020).
Creating a Prototype of the Product or Service
A prototype is a preliminary model or sample of a new product or service that is created
to test a product concept or service process.
What exactly does a prototype look like?
- Depends on the idea
- Depends on your budget
- Depends on your goals
Advantages of Creating a Product/ Service Prototype (Tamara n.d.):
1. Enables the entrepreneur to engage in trial-and-error, provides room for
improvements, and refines the functionality of the product design or service
process.
2. Provides the entrepreneur window to test the performance and specifications of
various materials and service processes.
3. Helps the entrepreneur effectively describe the product or service to the product
team.
4. Elicits respect from key stakeholders and customers. It gives credibility to the
entrepreneur.
Four Steps in Creating Product/ Service Prototype (Nelson 2016)
1. CONCEPT SKETCH
- Draw your idea to help you visualize your prototype in greater
detail
(Dom 2017)
 2. VIRTUAL PROTOTYPE
- Create a digital sketch of your idea. If you are not skilled with computer
drawing and rendering tools, professional graphic designers or prototype
designers can assist you with this step.
(Humane Interface 2016)
3. PHYSICAL PROTOTYPE
- Build a physical prototype. Once your first prototype is built, you
may find flaws that need to correct before you seek a patent. You may
need to build several prototypes to get a good one done.
(Coleman 2017)
4. LOCATE A MANUFACTURER
- Locate a manufacturer that can produce your product at a
profitable price. If your idea is going to be profitable, you need to be
able to build it at a cost that is low enough that you can cover
expenses without cutting too far into your revenue.

(Study.com 2003-2020)
Watching this video https://www.youtube.com/watch?v=43N3l3laWGE may give you
an idea on how to create a Product/ Service Prototype.
Testing the Product Prototype
Testing the prototype is a vital process before an actual product or service is launched
to the market. It will uncover the final loopholes that need to be fixed before commercialization.
It gives the entrepreneur a leeway to examine and scrutinize the prototype and provide feedback
as to what can be improved before the launch. These improvements and changes must be
completed first before moving forward to the next step.
Methods applied in Testing the Product Prototype
1. Focus Group Discussion – The participants will provide
relevant insights about the new product or service. The
objective of the FGD is to identify errors, deficiencies,
and issues that may impede the success of the product.
Participants also need to provide suggestions and
practical solutions on how to improve these
deficiencies.
2. Legality and ethical test – Prior to launching, the
entrepreneur must ensure that the product or service
complies with all relevant laws and regulations and has a
necessary license or permit to operate a particular business.
For example, food products must be cleared first with the
Bureau of food and drugs (BFAD) before they are offered to
the public. The entrepreneur must also make sure that the
manufacturing/production of goods or offering of the service
does not generate ethical issues such as being threats to
health, safety, and environment.
 3. Safety test – the entrepreneur must ensure that the
product is safe to use, safe to be consumed (food
and beverages), and safe to be applied (cosmetic
products). The product should not in any way
harm the customer or put the customer in peculiar
situations. in services, the entrepreneur must
ensure that the processes to be performed by the
service provider must not be detrimental to the
safety and health of the customer.
4. Product costing test – the entrepreneur must
examine every stage of the manufacturing process or
every process of the service blueprint to evaluate and
finalize the cost involved. This is the time when the
entrepreneur can match the expected costs versus his or
her budget. Modification in the manufacturing process
or service blueprint can still be made at this point to
align with the cost objective of the entrepreneur.

5. Component test – Each component of the

product or service must be tested
independently to identify component failures
for goods or service failures for services. Any
failure identified must be redesigned and
tested again until it becomes fully operational
and functional.

6. Competitors’ product/service test – the entrepreneur

must test a similar line of products or the competitors’
product or service itself to compare and get the best
practices to be applied to the new product or service.

Validation of Market Acceptability

Validation of Market Acceptability is the process of finding out if the intended primary
target will be buying the product or availing the service. Market acceptability is a critical factor
that the entrepreneur must validate before launching the product or service, because this can
strongly suggest if the business will be successful or not. It either validates or disconfirms the
perception of the entrepreneur about the suitability of the chosen primary target market.
It also tests whether the value proposition and unique selling proposition are appropriate
or there is a need to improve on them.
Ways to Validate your Product Acceptability (Kular 2018)
1. Sales - Nothing is more important than customers seeing the value in your product
and exchanging money for it.
 2. Research – It can be useful when you are still in the ideation stage. Look also for
your competition. Competition is good, because it confirms that there is existing
demand for what you plan to sell.
3. Demand and Supply - Analyze demand and search volume.
4. Campaign - Market research can be useful, but real product validation requires
paying customers.
5. Feedback - Meet your customer in person, you’ll benefit by getting to talk to
potential customers, seeing their initial reactions to your product, and finding out if
they are willing to spend money on it.
Select/ Pinpoint Potential Suppliers of Raw Materials and Other Inputs Necessary for the
Production of Product/ Servcie

Selecting a supplier is the process of looking for a potential supplier to acquire the necessary
materials to support the outputs of organizations. Choosing the right supplier scanning a series
of price lists, value for money, quality, reliability and service.

Identify your suppliers. Set the criteria to help you find the right supplier, you may consider
the Cost, Price, Reliability, Stability, Location, Quality & Safety, Delivery, Service, Social
Responsibility, Convenience, Simplicity, Risk and Agility (Business Queensland 2017).

Discuss the value/ supply chain in relation to the business enterprise

Value chain is the whole series of activities that create and build value at every step. A
process in which a company adds value to its raw materials to produce products eventually sold
to consumers. It gives companies a competitive advantage in the industry, while the supply
chain leads to overall customer satisfaction. There are five steps in the value chain process
(Tarver 2020):
1. Inbound Logistics- Receiving, warehousing, and inventory control.
2. Operations- Value-creating activities that transform inputs into products, such
as assembly and manufacturing.
3. Outbound Logistics- Activities required to get a finished product to a customer.
These include warehousing, inventory management, order fulfillment, and
shipping.
4. Marketing and Sales- Activities associated with getting a buyer to purchase a
product.
5. Service- Activities that maintain and enhance a product's value, such as
customer support and warranty service.

Recruit qualified people for one's business enterprise

Your success in the business will depend on your ability to put together a team of highly
qualified people who are committed to the goals and objectives of your firm. If your business
is on a startup stage, you need to recruit an employee who (Kauffman Entrepreneurs 2005):
· embody the company's values
· work hard and work smart
 · have the specific skills required
· learn quickly when new skills are needed
· able to work with little supervision
· take initiative to make things happen
· comfortable in the uncertainty of an entrepreneurial situation
· are flexible to business needs and changing requirements

Learning Competency with Code

1. Develop a product description
2. Create a prototype of the product
3. Test the product prototype
4. Validate the service description of the product with potential suppliers of raw
materials and other inputs necessary of the product for service.
5. Select/ pinpoint potential suppliers of raw materials and other inputs necessary
for the production of product or service
6. Discuss the value/supply chain in relation to the business enterprise
7. Recruit qualified people for one's business enterprise
TLE_ICTAN11/12EM-Ia-2
Activities
Day 1
Activity 1: Read the statements comprehensively. Identify if it is Product Features or Product
Benefits. Source: https://shopee.ph/
1. With the proper ingredients, success comes naturally. Here is everything you need to
make a distinctive tasting sausage stick that will be sure to tingle your taste buds. Comes
with complete instructions.

2. YAS GIRL! Walk in this navy velvet set and expect all eyes on you. Designed with a
one shoulder unique crop top and fitted capri pants.

3. 4.5V ~ 5.5V from the USB port; Without drive javascript devices: void (0);Compatible
with USB 1.1 / 2.0; Operating Temperature: -10 to + 55Deg.C; Storage Temperature: -
20 to + 55Deg.C; More than 12 years of data storage

4. The most effective way to lose weight without Diet and Exercise! Without experiencing
LBM, Headaches and Palpitation. Reduces food cravings and Increases fluid intake.
Each box contains 5 sachets of Skinny Coffee good for 5 days. It should be taken in the
morning 15-30 minutes before breakfast.

5. Brand: VEGER/ Model: VP2016/ Capacity: 20000mAh (74WH)/ Colors: Black/White/

Dimension: 147.8*67.5*27.5MM/ Micro Input: 5V/2.0A/ Type-C Input: 5V/2.0A/
USB Output 1: 5V/1.0A (IQ Smart Recognition)/ USB Output 2: 5V/2.1A (IQ Smart
Identification)/ LED Digital Power Indicator/ Li-polymer Battery/ Weight: 412g
 6. Whether it's for work or for leisure, you deserve a quick and reliable home internet
connection. Look no further because Globe At Home Prepaid WiFi is finally here!.
With its improved WiFi connection, wide internet coverage, and ready-to-use freebie
and features, your home online experience will never be the same again.

7. High quality 4mm drive unit super bass, bright treble; Lightweight foldable structure;
Can turn into a wired headphone in one second.

8. Delivering heart-thumping lows and clear-as-day highs, these wireless headphones are
true standouts in the new 0917 Series Two collection.

9. "Who said you can’t look stylish while staying safe? Channel your brooding K-drama
lead with this personal protective bucket hat.

10. Hat opening: 24 in; face shield: 121/ 4x10p; Bucket hat is made of soft brushed twill
fabric; face shield is made of PVC plastic; Detachable face shield; Adjustable strap to
keep the hat in place"

Day 2
Activity 2: Did you answer correctly the Activity 1? Congratulations! Now, using the
statements 1-10 from Activity 1, kindly identify the target audience of the product/ service.
Day 3-4
Activity 3: Create a concept sketch or prototype drawing of your product idea.
Rubric for Prototype drawing
CRITERIA EXCELLENT (20) SATISFACTORY (15) NEEDS IMPROVEMENT (10) SCORE

Appropriate medium in Clearly identifies a range Applies selected medium Uses selected medium inaccurately
prototype drawings to of possible alternative to perform the task with to perform task ineffectively and
perform tasks. medium to create an some efficiency and inefficiently, while demonstrating
understanding of the effectiveness. Displays only a minimal understanding of
product and chooses the understanding of the purpose and results
most appropriate to results.
perform the task

Development of work Students did preliminary Students did some Students just began working without
drawings to get an idea of planning ahead of time to thinking out different possibilities.
which way to continue develop ideas

Construction or drawings Evidence of thorough Evidence of work done Students left some stuff undone due
work appropriate to the on the project. Project is to lack of work or time.
time allotted, drawings or seen as complete.
prototype were complete
with attention to detail
 Aesthetics Drawings are crisp and Drawings or prototypes Drawings or prototypes are unsightly
clean with measurements are clean and neat, but and messy.
labeled properly. not particularly attractive
Prototype does not show to the eye.
glue marks or other
evidence of sloppiness.

Scale Drawings or prototype are Drawings or prototypes There was no attempt to make
made to scale with a were attempted to be drawings or prototypes to scale
legend provided made at scale, with some
issues.

Source: rubricprototype.pdf
 ENTREPRENEURSHIP
Week 3
Name of the Learner: Grade Level:
Section: Date:

Business Model

Background Information for Learners

What is a Business Model?
Business model is a description of how your business makes money. It is an explanation
of how you deliver value to your customers at an appropriate cost. Models generally include
information like products or services the business plans to sell, target markets, and any
anticipated expenses. It acts as the blueprint of the business and a roadmap for its success or
failure as it explains how the business creates and captures value through its decisions and
processes.
According to management guru Peter Drucker:
“A business model is supposed to answer who your customer is, what value you can create/add
for the customer and how you can do that at reasonable costs (Das 2020).” In their simplest
forms, business models can be broken into three parts (Parsons n.d.):
● Everything it takes to make something: design, raw materials, manufacturing, labor,
and so on.
● Everything it takes to sell that thing: marketing, distribution, delivering a service, and
processing the sale.
● How and what the customer pays: pricing strategy, payment methods, payment timing,
and so on.

Different Kinds of Business Model (Parsons n.d.)

1. Advertising – You have to satisfy your two customer groups: your readers or
viewers and your advertisers. Examples YouTube
 2. Affiliate – Uses links embedded in content instead of visual advertisements that are
easily identifiable. For example, if you run a book review website, you could embed
links to Amazon within your reviews. Examples; Top TenReviews.com
3. Brokerage – Connects buyers and sellers and helps facilitate a transaction. Example:
Real Estate Agency
4. Customization/ Concierge- Take existing products/ services and add a custom
element to the transaction that makes every sale unique for the given customer.
Example Nike Customized sneakers
5. Crowdsourcing – Frequently paired to Advertising models to generate revenue.
Providing the right rewards to entice the crowd is the key to successful
crowdsourcing. Example: YouTube
6. Franchise – Common in the Restaurant Industry. You are selling the recipe for
starting and running a successful business to someone else. Example: Jollibee
7. Leasing – Like renting, at the end of a lease agreement, the customer needs to return
the product. Example: Condominium, Cars
8. Marketplace – Allow sellers to list items for sale and provide customers with easy
tools for connecting to sellers. Example: eBay, Shoppee
9. Subscription – Consumers get charged a subscription fee to get access to service.
Example: Netflix
10. Pay-As-You-Go – Customers get charged for actual usage at the end of the billing
period. Water or Electric Companies

Develop Business Model

Business models are important for both new and established businesses. In developing
business models, entrepreneurs must adapt the dynamics of traffic lights. These are the three
“green lights” or the positive signals that can help entrepreneurs to develop ideal business
models and eventually succeed. On the other hand, there are three “red lights’ or negative
signals that entrepreneurs must avoid.
Green Lights
▪ Target high value customers – someone who is easy to find, willing to pay a price that
will reasonably profit the entrepreneur, easy to persuade with the least promotional
effect, and someone who can join the bandwagon of customers that, when consolidated,
can generate a substantial amount of revenues aligned with the profit objectives of the
entrepreneur.
▪ Offer products or services with great value – The value proposition and unique selling
proposition should always kick in. The entrepreneur must position the unique attributes
of the product/ service. The entrepreneur must also devise an efficient distribution
system where the flow of goods/ services delivery is convenient, fast and available
when needed, and consider the influx of technological advancements such as the
internet, and third party outsourcing.
▪ Offer products or services with reasonable profit – Increase markup and decrease
operation cost. The entrepreneur should devise an efficient distribution system, lessen
unnecessary manpower efforts, apply lean manufacturing processes, and add support
products or auxiliary services that can increase revenue without adding substantial cost.
 Red Lights
▪ Satisfying the customer becomes too costly and irrational – The entrepreneur must
calculate the cost and profit associated with serving the customer before pursuing the
business. In marketing, the term “lifetime value of a customer” was coined to
understand the potential value that customer can bring to the business in the long run,
but there are obvious red flags which are collectively called customer satisfaction costs:
(1) Warranty because some products are as sturdy as they should be. (2)After sales
costs- some products or services require extensive technical support, installation and
customer service.
▪ Being a market leader is difficult to sustain – If there are major customers purchasing
the entrepreneur’s product or services. If there are major players in the industry that
control the majority of the distribution network. If technology has changed the way the
entrepreneur operates the business. If technology replaces the need for the product/
service, and if the competitors can easily tap the market.
▪ Return on Investment (ROI) takes too long and too small – If the reports say that ROI
is less than 25% in the first three years of business operations. If there is additional
capital for the production. Only less than 50% of the capital required will be allocated
to revenue-generating activities. If the present capacity is also incapable to produce or
handle new commitments. If there is an uncontrollable industry factor.

Components of Business Model Canvas

Source: http://bit.ly/Keypartners
A. Value Proposition – A description of the goods or
services that a company offers and why they are desirable
to customers. It is a promise of value to be delivered. It
summarizes why a customer should buy a product or use a
service.
Example: “The number one bottled water brand by volume
Nestle Pure Life Purified Water enhanced with Minerals
for Taste offers healthy hydration in a variety of sizes and
is committed to helping families live a healthy, active lifestyle.”
Unique Selling Proposition (USP) - A consideration presented by the seller as the
reason one product or service is different and better from another product or service.
You can include the Product characteristics, Price Structure, Placement Strategy and
Promotional Strategy.
Example: “Pizza delivered in 30 minutes or it’s Free!” – Domino’s Pizza
 Tagline – A short, memorable phrase that is used throughout your marketing. It
should convey the main sentiment or feeling that you want people to associate with
your brand.
Example: “Langhap Sarap” - Jollibee, “Just Do It” – Nike, “We Find Ways” – BDO
B. Customer Segmentation - the process of dividing
customers into groups based on common characteristics
so companies can market to each group effectively and
appropriately. It identifies the target market. Companies
often segment customers according to demographics
that include:
✔ Age
✔ Gender
✔ Marital status
✔ Location (urban, suburban, rural)
✔ Life stage (single, married, divorced, empty-nester, retired, etc.)
Customer segmentation requires a company to gather specific information – data –
about customers and analyze it to identify patterns that can be used to create segments (Murphy
2020).
Data Gathering Techniques:
● Face-To-Face/ Telephone/ Chat/ Online Interview – a data collection when the
interviewer communicates directly with the respondents.
● Focused Group Discussion (FGD) – Group of people are gathered and shared
their perceptions, opinions, beliefs, ideas, and attitudes towards the product or
service, concept, advertisement and packaging.
● Surveys – Company prepared a survey questionnaire. Surveys may be done
through paper questionnaires or online via google forms.
C. Channels - describes how a company
communicates with and reaches its Customer
Segments to deliver its Value Proposition. It is
important to understand which pathway (or
channel) is best for your company to reach your
customers (ATm Startup Aggieland Texas A & M
University n.d.).
FIVE TYPES OF CHANNEL PHASES:
▪ AWARENESS- how do we raise awareness about our company’s products and
services? Advertising (Word of Mouth, Social Media, Newspaper, etc.)
▪ EVALUATION- how do we help customers evaluate our organization Value
Proposition? Surveys or Reviews
▪ PURCHASE- how do we allow customers to purchase specific products and services?
Web vs. Brick and Mortar or Self-Checkout
▪ DELIVERY- how do we deliver a Value Proposition to customers?
Over the counter or Delivered/Catered
▪ AFTER SALES- How do we provide post-purchase customer support?
 Call center or Return policy or Customer assistance
D. Customer Relationships - The ways in
which your company communicates and deals with
existing customers. Follow-ups build relationships
aside from saying “Thank you”. Palin said,
“Satisfying customers isn’t enough to guarantee
they’ll come back, you need to go above and
beyond. That’s true whether you run a coffee shop
where regulars want to feel like a part of the family
or an auto-parts company whose customers
demand high quality and responsive service.”
Six Tips to Create Good Customer Relationship (bdc n.d.):
1. Understand what your customer values – Listen to what they say, and how they say
it and adjust your approach to match their expectations.
2. Show you genuinely care – People want to connect beyond the professional level.
Being friendly and with a personal approach pays off.
3. Adapt to their pace – If customers in a hurry do not slow them down. If the
customers want to chat do not rush them.
4. Let your brand be your guide – Your branding and marketing make a promise and
it is essential to deliver on that. Do not fail your customers with your company’s
promise.
5. Model the behavior you want to see – The way you treat your employees shows
them how they are supposed to treat your customers.
6. Remember that relationships are built over time – Exceed expectations. It is
important to go above, and beyond, you do not need to hit the home run with every
conversation.
E. Revenue Streams – I would like you to know what
revenue means, Revenue is the amount of money that is
brought into a company through its various business
activities (e.g. sales of products and services). How will
you find your revenue? For example, if you sell 10 packs
of ube-cheese pandesal per day for 120 per pack. Let us
break down using this formula Number of Goods sold x
Price = Revenue.

#of Goods Price Daily Weekly Monthly Yearly

sold Revenue Revenue Revenue Revenue

10 Packs of 120.00 =1,200.00 1,200.00 x 1,200 x 30 1, 200 x

ube-cheese 7 = 8,400 = 36,000 365 =
Pandesal 438,000

Revenue Streams is the various sources from which a business earns money from the
sale of goods or the provision of services. The types of revenue that a business records on its
accounts depending on the types of activities carried out by the business. The revenue accounts
of retail businesses are more diverse, as compared to businesses that provide services
(Corporate Finance Institute 2015).
Revenue Stream is the building block presenting the cash a company generates from
each Customer Segment. It can be generated in different ways (Empower Women 2016):
▪ Sale of Physical Product – The customers pay cash for the product.
▪ Usage Fee – The customer pays a user fee for a particular service.
▪ Subscription fee – The customers pay for a particular service. Example Netflix Movie
Subscription
▪ Lending/Renting/Leasing – The customer pays to use a particular product for a fixed
period of time.
▪ Brokerage Fee – Company gets a revenue from an intermediate service. It is often used
by real estate agents, and credit card providers
▪ Advertising – Your company may charge fees for advertising a product, service or
brand.
▪ Volume and Unit Selling – Your company charges a fixed price for a product however
if the customers choose to buy in a higher quantity you may give them a discount or
you may have a different price for different customer segments.
Take note: You will need to decide what kind of Revenue Stream best fits your business.

F. Key Resources - The resources are needed to

create value for your customers. These resources can
be categorized into four main categories (Empower
Women 2016):
▪ Physical resources – raw materials, building,
vehicle, transportation, storage facility, machines,
factory, and equipment.
▪ Human Resources – staff or employees (engineer
or marketing expert)
▪ Intellectual Resources – brand, patent, copyright, partnership, customer database.
▪ Financial Resources – cash, credit, equity

G. Key Partners - The relationships that you have with

other business, governmental, or non-consumer
entities that help your business model work such as
suppliers, manufacturers, business partners, etc.
Four Types of Partnerships
▪ Strategic Alliances between Non-competitors –
You can partner with a manufacturer to
produce a part of your business product.
▪ Competition – You can strategically partner with your competitor.
▪ Joint Ventures to Develop New Businesses – You can join your company with
another company to create a new different entity.
 ▪ Buyer-Supplier Relationship – You can build a reliable relationship with your
buyer and supplier.

H. Key Activities - Any activities that your

business is engaged in for the primary purpose of
making a profit such as operations, marketing,
production, problem-solving, and
administration. The Key activities of a business
represent what the company must do to make the
business model work. These activities can be
producing a product or providing a service, or a mix of both (Epperhart 2015).
Two Major Types of Key Activities
▪ Supply Chain Management – Supply chain comes in two places: Key Resources
and Key Partners. Key Resources are helping you manage your Key Partners.
▪ Software Development – Today almost all business systems have been moved
into software processes. Computer software that helps you manage all of the
pieces of a business that need to operate and run.

I. Cost Structure - The costs and expenses that

your company will incur while operating your
business model.
Two Main Categories of Cost
▪ Cost-Driven – Focuses on minimizing
the costs of the product or service as
much as possible.
▪ Value-Driven – Focuses on creating
more value in the product itself, not necessarily producing the product at the
lowest possible cost.
Types of Cost (Murphy 2020)
▪ Fixed Cost – Costs that do not vary with the level of output in the short term.
Example : Rent, Office Supplies, Advertising
▪ Variable Cost – Cost varies in direct proportion with the level of output.
Example: Raw materials, Packaging costs, Labor cost
▪ Operating Cost – Expenses associated with day-to-day business transactions. It
can be variable or fixed cost.
▪ Direct Cost – Related to producing a good or service. It includes raw materials,
labor, distribution and expenses.
▪ Indirect Cost – Unrelated to producing a good or service. Electricity used to
power the plant is considered as an indirect cost because the electricity is used
for all the products made in the plant.

Learning Competency with Code

1. Develop a Business Model
 TLE_ICTAN11/12EM-Ia-2
Activities
Day 1
Activity 1: Multiple Choice
Instruction: Read comprehensively. Choose the correct letter of your answer.
1. “Broadcast Yourself” – Youtube
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
2. Gather specific information – data – about customers and analyze it to identify patterns
that can be used.
a. Customer Feedback c. Customer Segments
b. Customer Relationships d. Customer Service
3. “The milk chocolate melts in your mouth, not in your hand.” – Mars, Incorporated
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
4. Number of Costs of Good Sold multiplied by Price.
a. Cost b. Good c. Price d. Revenue
5. The relationships that you have with other business, governmental, or non-consumer
entities that help your business model work.
a. Key Activities c. Key Partners
b. Key Chain d. Key Resources
6. The amount of money that has to be paid to acquire a given product
a. Cost b. Good c. Price d. Revenue
7. “Who your customer is, what value you can create/add for the customer and how you
can do that at reasonable costs.”
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition
8. Understand what your customer values.
a. Customer Feedback c. Customer Segments
b. Customer Relationships d. Customer Service
9. Any activities that your business is engaged in for the primary purpose of making a
profit.
a. Key Activities c. Key Partners
b. Key Chain d. Key Resources
10. “Why is there nothing quite like the iPhone? Every iPhone we’ve made – and we
mean every single one – was built on the same belief. That a phone should be more
than a collection of features. That, above all, a phone should be absolutely simple,
beautiful and magical to use.”
a. Business Model c. Unique Selling Proposition
b. Tagline d. Value Proposition