Philippine College of Advanced Arts and Technology Grade

1914 Doña Faustina Bldg., Recto Ave., Quiapo, Manila 1001

12

Quarter III
Quarter 2
Quarter 2
MS. REYMA JOY L. MACUGAY
Author

MR. ROBERT JEROME DE VERA

Author

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 Grade 12: Entrepreneurship Module

Greetings, students! Let’s have a checkpoint before you become the next multi-
millionaire through the topics in this module.

Before we begin, you may sometimes hear the word entrepreneur and
entrepreneurship. But what do these terms mean? Let us see what you already know about
these terms by answering the following questions.

Can you guess which is which?

Instruction: Read the statement carefully then write TRUE if the statement is correct and
FALSE if you think the statement is not correct.

___________1. Entrepreneurship graduates can become business reporters.

___________2. The greatest significance of entrepreneurship is to help identify and develop

the managerial capabilities of entrepreneurs.

___________3. An entrepreneur is a “Risk Taker.”

___________4. An entrepreneur can become a business consultant.

___________5. Entrepreneurship is not an economic activity.

___________6. Entrepreneurship can improve the life of the entrepreneurs only.

___________7. Entrepreneurship is a process of actions of an entrepreneur who is always in

search of opportunities.

___________8. The entrepreneurs could easily see the results of his efforts.

Entrepreneurship is encourage by the economy because it can provide a

lot of opportunites for the unemployed people. It will increase per capital income,
improve standard of living and increase individual savings, provide revenue to the
government in the form of income tax, value added tax, export and import duties,
and balanced regional development.

There are busineness plans that are written during the first few years of
the enterprise in order to guide the entrepreneur on which strategies would be
the most beneficial for the enterprise to take. Many new enterprises need to
convince prospective business investors about the soundness and potential of
their business.

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Discuss the relevance of the course.

 Identify the different characterictics of successful entrepreneur.
 Explore the job opportunities for entrepreneurship as a career; and
 Appreciate the significance of entrepreneurship.

Lesson

Concept of Entrepreneurship

The word entrepreneur derives from the French words entre meaning “between” and
prende which means “to take”. The word was originally used to describe people who “take on the
risk” between buyers and sellers or who “undertake” a task such as starting a new venture. The
capacity and willingness to develop, organize and manage a business venture along with any of
its risks in order to make a profit. The most obvious example of entrepreneurship is the starting
of new business.

Entrepreneurship is defined as the process by which individuals pursue opportunities

without regard to resources they currently control for the purpose of exploiting future goods and
services.

Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas
that can provide solutions to the needs of the market and the society. The enterprise is created
by an entrepreneur and the process is called “Entrepreneurship”.

Characteristics of Successful Entrepreneurs

Passion for the Successful Entrepeneur Product/Customer

Business focus

Tenacity Execution
despite failure Intelligence

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

1. Passion for the Business

- It comes from the entrepreneur’s belief that the business will positively influence
people’s lives. It is the passion for an idea that gets a business going and keeps it going
when times are tough.

2. Product/Customer Focus

- An entrepreneur’s perceptive focus in products and customers arise from the

fact that most entpreneurs are at heart and craftside. It is also involves the diligence to
spot product opportunities and to see them through to completion.

3. Tenacity Despite Failure

- It is the process of developing a new business idea that may require a certain
degree of experimentation before success is attained. It must be able to assume the risk
involved in the enterprise that needs to be a risk taker not an avoider.

4. Execution Intelligence

- It is the ability to fashion a solid business idea into a viable business is a key
characteristics of successful entrepreneurs. It is also the factor that determins whether
the start-up is successful or fails.

Types of Entrepreneur

1. Innovative Entrepreneurs
- They are those who always make new things by thinking of new ideas. They
have the ability to think newer, better and more economical ideas.

2. Imitating Entrepreneurs
- They are those who don’t create new things but only follow the ideas of other
entrepreneurs.

3. Fabian Entrepreneurs
- They are skeptical about changes to be made in the organization. They don’t
initiate but follow only after they are satisfied.

4. Drone Entrepreneurs
- They are those who live on the labor of others. They are die-hard conservatives
even ready to suffer the loss of business.

5. Social Entrepreneurs
- They are those who initiate changes and drive social innovation and
transformation in the various fields such as education, health, human rights,
environment and enterprise development.

Career Opportunities of Entrepreneurship

1. Business Consultant – with the experise of in the field of entrepreneurship, they can
be a very good source of advices to other entrepreneurs and would be business men.

2. Teacher – a gradute of an entrepreneurship can use they knowledge in teaching.

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 Grade 12: Entrepreneurship Module

3. Researcher – the entrepreneur can be employed as a researcher by an enterprise.

4. Sales – the entrepreneurship graduate can apply as a salesman.

5. Business Reporter – the entrepreneur being expert in the field can be employed as
a busiess reporter.

Activity

Assessment No.1

Search and watch the video of the Thai TV advertisement on youtube and answer the
following questions.

Title: Pineapple Ice Cream

Youtube link: https://www.youtube.com/watch?v=fwicURDoDI8

Guide Questions:

1. What is the story all about?

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________
______________________________________________________________________________________

2. How did the girl learned to do business?

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________
______________________________________________________________________________________

______________________________________________________________________________________

3. What important skills did she learn to understand and do her business better?
______________________________________________________________________________________

______________________________________________________________________________________
______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

Assessment No.2

Choose three successful entrepreneurs in your community or nearby places and

conduct an interview using the guide questions below. Record your interview.

Guide Questions:

1. What motivated you to become an entrepreneur and how it started?

2. How much was your start-up capital?

5

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

3. What do you think are your characteristics and competencies that made you a

successful entrepreneur?

4. What do you think of being employed? Why you did not choose that path

Additional Activity: Post-Test

I. Read the question carefully and write the letter of the correct answer on the space provided.

_______1. Entrepreneur means:

a. Risk Taker c. To Research
b. To undertake d. To Improve standards of living

_______2. The entrepreneur who create new ideas are called?

a. Fabian c. Innovative
b. Drone d. Imitating

_______3. Which is NOT a career for an entrepreneur?

a. Business Consultant c. Salesman
b. Domestic Helper d. Research and Development

_______4. Which of the statement below is true?

a. Entrepreneur have limited career opportunities
b. Entrepreneur are prone to constant high income
c. Entrepreneur are contributors to the development of the socity
d. Entrepreneurs are the reasons for the unemployment problem

_______5. Which of the following statement is NOT true?

a. An entrepreneur will patiently wait for his efforts to bear fruit.
b. The profit of the entrepreneur is immediate
c. All entrepreneurs are successful
d. Entrepreneur are researcher

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Identify the market to be solved or the market to be met.

 Analyze the market need.
 Determine the possible products or services that will meet the need; and
 Screen the proposed solutions based on viability, profitability, customer
requiements and select the best products or service that will meet the market
need.

Recalling

Entrepreneurs create value by introducing new products, services or finding

better ways of making them. These may include innovation in terms of product
design or addition of new product features to existing ones. They have endless
curiosity to discover new or different ideas and see wheather these ideas will work in
the market place. This is what separates entrepreneurs from the ordinary
businessman whose objectives is simply to earn profits from producing, buying and
selling goods.

Pretest

Direction: Arrange the scrambled letters to form a correct word.

1. NISSUBES __________________

2. ICEVERS __________________

3. SUTEMOSRC __________________

4. UPSIERSPL __________________

5. PECITIONMTO __________________

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Lesson

The Difference between Opportunities and Ideas

It is important to understand that there is a difference between an opportunity

and an idea. Entrepreneurs recognize an opportunity as a favorable set of
circumstances that creates a need for a new product, service or business and idea is
a thought, an impression or a notion. This is the critical point because many
entrepreneurial ventures fail not because the entrepreneurs that launched them
didn’t work hard, but rather because there was no real opportunity to begin with.
Before getting excited about a business idea, it is crucial to understand if the idea fills
a need and satifies the criteria for an opportunity.

Creation of Identification of Opening of

entrepreneurial Entrepreneurial entrepreneurial
Ideas Opportunities Venture

Opportunity: Seeking, Screening and Seizing

The 3S of opportunity is the framework that most of the promising
entrepreneurs use to finally come up with the ultimate product or service suited for
a specific opportunity.

1. Seeking the Opportunity

It is the first and the most difficult process to

the number of options that entrepreneur will have
to choose from. Entrepreneurs are innovative
opportunity seekers and they are also the tinker on
improving their operational capability by
employing new technologies that will bring them
greater efficiency.

Essentials in Entrepreneur’s Opportunity – Seeking:

 Entrepreneurial mind frame – it allows the entrepreneur to see things in a very

positive and optimistic light in the midst of crisis or difficult situation. They
able to use these problematic situations as inspiration in creating something
innovative.
 Entrepreneurial Heart Flame – it is about emotional intelligence or EQ, which
is often manifested in the entrepreneur’s efforts to nurture relationships with
customers, employees and suppliers.
 Entrepreneurial Gut Game – this refers to the ability of the entrepreneur to
sense without using the five senses. This is also known as intuition, just knows
whether something will work or not without sequential thinking.

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 Grade 12: Entrepreneurship Module

Sources of Opportunities

There are many ways to discover opportunities. Looking at the big picture,
some have noticed the emerging trends and patterns for business opportunities and
while others are trying to find out their target market. Here are the two common
sources of opportunities:

Macro Environmental Sources of Opportunities

The macro environment forces can be divided into five categories compose
of Social, Political, Economical, Ecological and Technological dimensions of knowns
as SPEET analysis. The macro environment forces will create their own opportunities
for the enterprise to exploit and their own threats for the enterprise to counteract.

 Socio-Cultural Environment
- It helps the entrepreneur assess the trend and dynamics of the
bigger consumer population, their beliefs, tastes, customs and
traditions.

The entrepreneur should take note of the following sociocultural factors:

Health Consciousness. Attitudes toward saving and investing.

Educational Level. Emphasis on safety.
Attitudes towards imported Buying habits.
goods and services. Religion and beliefs.
Attitudes toward the person’s
life style.

 Political Environment
- It defines the governance system of the country or the local are of
business. It includes all the law, rules and regulation that govern
business practices as well as the permits, approvals and licenses
necessary to operate the business.

The entrepreneur should take note of the following political factors:

Government stability and likely Rule of Law

changes. Government effectiveness.
Bureaucracy. Political Rights.
Corruption level and Tax policy.

Freedom of Press

 Economical Environment
- The entrepeneurs must be able to think critically through each and
every single economic event that impacts their enterprise because
these factors will drive the interest and foreign exchange rates that
fluctuate with the movement of the market forces. These factors
include income, expenses and resources.

The entrepreneur should take note of the following factors:

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Exchange rates. Level of consumer’s disposable income.

Unemployment trends and Monetary Policies.
labor cost. Price fluctuations.
Strategies of Business Cycle. Stock Market Trends
Trade flows and patterns.

 Ecological Environment
- These factors will help the entrepreneur to determine if the business
they entering into will comply the environmental starndards or will
just be a hazzard to people, animals and nature. There is a growing
awareness in the world today that will make this factor more
important for countries, industries and businesses.

The entrepreneur should take note of the following ecological factors:

Weather and climate change. Attitudes toward “green” and

Air and water pollution. ecological products.
Recycling and waste management. Attitudes toward and support for
renewable energy.

 Technological Environment
- These are composed of innovations of an existing technology or
invention. Entrepreneurs should always be modern with the
technological changes, as these are catalysts in improving a
product or service.

The entrepreneur should take note of the following technological factors:

Basic infrastructure. Communication infrastructure.

Technology incentives. Access to newest technology.
Rate of technological changes. Internet infrastructure and
Legislation regarding technology. penetration.

Micro-market Sources of Opportunities

It refers to the specific target market segment of a particular enterprises. These

are the target customers that represent the immediate customers of an enterprise
which means those who are currently buying the goods or services offered by the
enterprise and its direct competitors. The need for segmentation would be crucial in
micro-market analysis because the definition of value of money differs from group to
group.

 Consumer prefences, interest and perception

o These are the current needs and wants of the potential customers
that should be discovered right away by a building entrepreneur.
 Competitors
o Recognizing and understanding potential competitors will aid the
entrepreneur to develop product or service that is unique and will
surely stand out on the competition.
 Irritants from the market place

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

o Entrepreneurs see opportunities in situations where there is a

recurring problem or sometimes when there is no more hope in
solving the problem.
 Location
o Entrepreneurs just have to look at their ecosystem and they be able
to spot a business opportunity right away.

2. Screening the Opportunity

After opportunity seeking comes the rigouros process

of opportunity screening. It is a process of cautiously selecting
the best opportunity and the selection will depend on the
entrepreneurs. it is also important to come up with a short list
of a few promising opportunities, which could be scrutinized in
detail.

The 12 Rs of Opportunity Screening

 Relevance  Range
 Resonance  Revolutionary Impact
 Reinforcement of  Relative Ease of
Entrepreneur Interests. Implementations
 Reveneus  Returns
 Responsiveness  Resources Required
 Reach  Risks

3. Seizing the Opportunity

It is the last step in opportunity spotting and
assessement wherein the entrepreneur has an idea as to where
they will locate the business and how they will market the
product and service.

3 types of innovation
 Breakthrough innovation
- It includes the inventions and occur infrequently as these
establish that platform on which future innovations in an area
are developed.

 Technological innovation
- It occur more frequently than breakthrough innovations and
these are the technological advancements of an existing
product or service.
 Ordinary innovations
- This means that the market has a strong influence in the
implementation of an innovation.

4 stages of Seizing the Opportunity

 Idea Stage – the entrepreneur determines what are the feasible

products and services that will perfectly suit the opportunity.
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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

 Concept Stage – the developed idea will undergo a consumer

acceptance test. This test includes getting the initial reactions of the
primary target market and the distribution channel.

 Product development Stage – the entrepreneur leverages on the

information generated from the positive customers via the concept
stage.

 Test marketing Stage – this stage validates the work done from the
first three stages to measure success in the commercialization of
the product and service.

Activity

Assessment No. 1

Complete the table below by supplying it with products that you consider
similar. Write the product and not the brand in their respective columns. Then
describe and differentiate its characteristics and uses.

No. of Primary Product Substitute Product

Items (product name) (product name)
Example Butter – expensive price used as Margarine – lessen price also used
bread spread. as bread spread

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Assessment No.2

Direction: Encircle the letter of your choice.

1. It is the process of considering, evaluating and pursuing market-based

activities that are believed to be advantageous for the firm.
a. Opportunity – Seeking c. Opportunity - Screeing
b. Opportunity – Seizing d. Source of Opportunity
2. This is the essential to opportunity – seeking which allows the entrepreneur
to see things in a positive and optimistic light in the midst of crisis or difficult
situations.
a. Entrepreneurial mind frame c. Entrepreneurial heart flame
b. Entrepreneurial gut game d. Opportunities and Ideas
3. It is the ability of entrepreneur that can sense without using the five senses,
also known as instuition.
a. Entrepreneur heart flame c. Opportunities and Ideas
b. Entrepreneur mind frame d. Entrepreneur gut game
4. One of the essentials of entrepreneurs’s opportunity-seeking that refers to
the driven passion of an individual.
a. Opportunities and Ideas c. Entrepreneur gut game
b. Entrepreneur heart flame d. Entrepreneur mind frame
5. Which of the following are NOT belong in the group of Social environment?
a. Economical c. Political
b. Socio-cultural d. Natural
6. Which of the following are NOT belong in the group of Micro-market
sources of Opportunities?
a. Revolutionary Impact c. Irritants from the market place
b. Location d. Competitors
7. Which of the three innovation are includes the inventions and occur
infrequently as these establish that platform on which future innovations in an
area are developed.
a. Breakthrough Innovation c. Ordinary Innovation
b. Technological Innovation d. None of the above
8. Rule of law, political rights and Government Effectiveness are just some
factor of which environment?
a. Socio-cultural c. Ecological
b. Political d. Technological
9. What is the last step of spotting and assessment?
a. Opportunity - Seizing c. Opportunity - Screening
b. Opportunity – Seeking d. Source of Opportunities
10. It is the first and the most difficult process to the number of options that
entrepreneur will have to choose from.
a. Concept Stage c. Ordinary Innovation
b. Opportunity – Seeking d. Ecological Environment

13

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Additional Activity: Word Hunt

Look for words in the puzzle related to the topic may it be horizontally,
vertically or diagonally. Write the words on the space provided below.

T E C H N O L O G I C A L O P H B C S S
P O V B N P R Y C D V H F C V B N M O C
L K J G Y P T F G E V C G S N H R N Q R
O I U F G O B C F A H G R S D C O V B E
U I T R D R F G V C X E V B F I D T G E
O P O O Y T F V B C Y C V B T T Y U F N
H G H J U U T G H U G H J A Y T R S G I
S E I Z I N G B B V B N V M K L K H F N
D Y T U Y I T A A A G O H G H S J V B G
U Y R Y U T I O U T N V G B N J G F D F
Y G H J K I V C D N V H G P R O D U C T
P L M H S E E K I N G G F G V D X E R R
P C A A T I A N A K O Y U I O P U Y R Y
O I O J H G H J R U E N E R P E R T N E
B V G H I Y C J G Y V J I L K H G F Y U
C O M P E T I T I O N O J U G H J K V F

1. __________________________ 6. __________________________

2. __________________________ 7. __________________________

3. __________________________ 8. __________________________

4. __________________________ 9. __________________________

5. __________________________ 10. __________________________

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Describe the concept of marketing mix.

 Identify and understand the 7P’s in the marketing mix.
 Appreciate the importance of marketing mix

Recalling

In the previous lesson, we learned that Market sources of opportunities can

be discovered from increase or decreased demand as well as higher or lower supply.
The entrepreneur must be able to measure the actual demand and supply of the
industry that enterprise belongs to. Equally important is the monitoring of the
prevalence of product substitutes and their market impact on the existing players in
the industry.

Source of Opportunity

Opportunity Seeking Opportunity Screening Opportunity Seizing

Pretest

Direction: Write the words or terms on the space provided that starts with letter P
and related to our topic. Find the words horizontally, vertically and diagonaly.

P R O D U C T I O N A U P I J 1. _______________
L B G H F D F G O T R R R H G 2. _______________
A C P O L I T I C S O V O C X
3. _______________
C R T Y U I T O O M K L D B E
E V G P R I C E O V F O U P L 4. _______________
U Y T F S V B T N M V C C X P 5. _______________
Q A S O D F I R E E W Q T G O
H G P V G O P C A A T D F G E 6. _______________
G H F G N B G N I G A K C A P 7. _______________

15

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

Lesson

Marketing Mix

In its broadest sense, marketing is about creating and accumulating

customers. Marketing plans are designed to capture market share and defeat
competitors. To get to the point, marketing mix is a business mechanism used for
effective marketing of the products. Moreover, marketing mix is a set of controllable
and connected variables that a company gathers to satisfy a customer better than its
competitor. It is summarize as the “7 Ps”in marketing.

Product

Packaging Price

7 P's of
Positioning Marketing Place

People Promotion

The 7 P’s of Marketing Mix

There are several important frameworks which you can utilize for the purpose
of marketing your product and services. Realizing these P’s in the most ideal manner
can turn out to be very profitable and you should see each description of the 7 P’s.

1. Product

The first P in the marketing mix is the Product. It refers

to any goods or services that the enterprise offers to its
customers in order to satisfy their needs and to produce their
expected results. Products are often identified with their brand
names to distinguish them from other products in the market.
Types of
products

Breakthrough Differentiated Copycat Niche

Products Products Products Products

 Breakthrough Products
- It offers completely new performance benefits. They may double
the performance at half the cost and may be much more
convenienent and easy to use.

ex. mobile devices, house appliances and gaming devices.

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

 Differential Products
- It is a marketing strategy that focuses on showing off the
differences between your product or business and the competition.
Try to claim a new space in the mind of the customer different from
the spaces occupied by existing products.

ex. Food Product and Personal Grooming Product.

 Copycat Products
- A product that has been designed, branded or packaged to look
exactly like the original known as a cheap imitation. The marketer
should offer more physical space in the shelves, lower prices,
promotional freebies and the like.

ex. Chocolate, shampoo and dishwashing liquid.

 Niche Products
- This product are not intend to compete directly with the brand and
they serve a specific customer base and product category. These
are unique and one-of-a-kind products which making them some
of the most popular item bought online.

ex. Trendy t-shirts, eco-friendy products and gadgets.

2. Price

The second P in the Marketing Mix is Price. It is the

amount of money that a consumer pays or willing to pay for
the product or service offered. A product is only worth what
customers are prepared to pay for it. Pricing will depend on
the business objectives set by enterprise. While price is a major
factor for the customer in buying a product, it is not the only
factor such as in the case of buying premium products. Finding the right price for a
product is not a simple matter of adding a mark-up on the cost of a product or service
as some companies do.
Penetraion Pricing

Skimming Pricing

Competition Pricing

Pricing Strategies
Product Line Pricing

Bundle Pricing & Premium Pricing

Psychological Pricing & Optional Pricing

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part of copyrighted material without prior written permission from the rightful owner.
 Grade 12: Entrepreneurship Module

3. Place

The third P in Marketing Mix is Place. The

concerned with various methods of transporting,
storing goods and making them available for the
customer. Getting the right product to the right place
at the right time involves the distribution system. It is
also called as the distribution channel. Place matters
for a business of any size. It is a crucial part of the marketing mix. The main function
of a distribution channel is to provide a link between production and consumption.

STAGES OF DISTRIBUTION CHANNEL

1 Producer Wholesaler Retailer Consumer

2 Producer Retailer Consumer

3 Producer Consumer

 Channel 1 – has contains two stages between producer and consumer – a

wholesaler and a retailer. A wholesaler typically buys and stores large
quantities of several goods and will break into bulk deliveries to supply
retaliers with small quantities.
 Channel 2 – has contain one intermediary. A retailer is a company that buys
products from a manufacturer and sell to end users or customers.
 Channel 3 – it is known as “direct-marketing” channel. Since it has no
intermediately levels. In this case the manufacturer sells directly to
customers.

4. Promotion

The fourth P in the Marketing Mix is Promotion. It is

the process of communicating with customers and
provides information to the customer that will assist them
in making a decision to purchase a product or service. Thus,
the idea is to create an awareness an awareness, attract and
induce the consumers to buy the product in preference of
others.

Six Compotent of Promotion

 Advertising  Branding
 Public Relations  Endorsement
 Sales Promotion  Brochure

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 Grade 12: Entrepreneurship Module

5. People

The Fifth P in the Marketing Mix is People. Aside from the fact that they are
the target consumers of the company, people are the ultimate marketing strategy.
This is because they distribute, promote, price and sell the products in the most
attractive market places.

Knowing the customer is the linchpin of a successful marketing strategy,

people are an essential ingredient in service provision; recruiting and training the
right staff is required to create a competitive advantage.

The marketing efforts of people are organized at four levels; (1) to create
customer awareness, (2) to arise customer interest, (3) to educate customers as they
evaluate their choices and (4) to close the sale and deliver the products.

6. Positioning

The sixth P in the Marketing Mix is Positioning. It is

known as one of the most important of the 7 P’s because it
refers to a product’s status in relation to the wider market,
particularly how it lines up against competitors. Enterprises
can establish their positioning either by starting with their
product creations or with their customer’s outcome
expectations.

Three Basic Concepts of Positioning

 Functional Positions – it deals with solving a problem that provides and getting
a favorable perception from investors, stockholders and consumers.
 Symbolic Positions – deal with self-image enhancement, ego identification,
belonginess, social meaningfulness and affective fulfillment.
 Experimental Positions – deal with providing sensory or cognitive stimulation.

Steps of the Positioning Process

1. Confirm your understanding of market dynamics.

2. Identify your competitive advantages.
3. Choose competitive advantages that define market “niche”
4. Define your positioning strategy.
5. Communicate and deliver on the positioning strategy.

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 Grade 12: Entrepreneurship Module

7. Packaging

Finally, the seventh P in the Marketing Mix is

Packaging. This is the silent hero in marketing world
because it refers to the outside appearance of a product
and how it is presented to the customers. There used to
be a time when products came wrapped in ordinary
packaging that prominently displayed the brand name, the
main attributes of the product, the company’s logo and its
place of business.

to provide the effects of time and

environment for the natural and
manufactured products.

Protection
Companies used
attrative colors,
logos, and symbols This involves merging of
to promote the unit loads for shipping.
product. Promotion Containment
Five Basic
Functions of
Packaging

Utility of Use Information

This type of packaging includes The packaging conveys

dispensing devices, prepacked hot necessary information to
meals and disposable medical the consumers.
tools.

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 Grade 12: Entrepreneurship Module

Activity

Assessment No.1
Draw to Survive. Create your own Concept Map for the 7 P’s of Marketing
Mix. Put your concept map on a piece of paper.

Rubrics:

1. Contents & Concepts – 25%

2. Completeness – 25%
3. Organization – 25%
4. Layout – 25%
Total 100%

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 Grade 12: Entrepreneurship Module

Assessment No.2

Paste-the-P’s. look for newspapers or magazines. Find and identify pictures

related to the P’s in Marketing Mix. Cut out the pictures, sort and paste them on the
box, then answer a short description on the box next to the picture.

PICTURE#1

PICTURE#2

PICTURE#3

PICTURE#4

PICTURE#5

PICTURE#6

PICTURE#7

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 Grade 12: Entrepreneurship Module

Additional Activity: Quiz

Direction: Read the question carefully. Write your answer on the space provided.

_____1. It is the amount of money that a consumer pays or willing to pay for the
product or service offered.
a. People c. Packaging
b. Price d. Place

_____2. What is the 1st channel in stages of distribution of channel?

a. Producer, Wholesale, Retailer & Consumer c. Producer & Consumer
b. Producer, Retailer & Consumer d. None of the above

_____3. In five basic function of packaging, the companies used attractive logos and
symbols to promote the product.
a. Information c. Protection
b. Containment d. Promotion

_____4. It is known as one of the most important of the 7 P’s because it refers to a
product’s status in relation to the wider market, particularly how it lines up against
competitors.
a. Product c. Packaging
b. Positioning d. People

_____5. This is the silent hero in marketing world because it refers to the outside
appearance of a product and how it is presented to the customers.
a. Price c. Place
b. Packaging d. People

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 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Define the meaning of brand name.

 Explain the entrepreneurial mind and;
 Differentiate the seven types of branding stategies
 Appreciate the importance developing a brand name.

Recalling

After studying and understanding the framework of the marketing mix which
consists of a combination of factors that a business can control in order to influence
consumers to purchase its product. Marketing Mix strategy is choosing and
implementing the best possible course of action to attain the organization’s long
term objectives and gain competitive edge.

7 P’s of Marketing Mix

 Product  People
 Price  Positioning
 Place  Packaging
 Promotion

Lesson

New Product Development

Brand name is a symbol or other feature that

distinguishes a seller’s goods or services in the marketplace.
Your brand is one of your greatest assets because it is your
customer’s over-all experience of your business. Brand
equity is the added value endowed on products and services,
which may be reflected in the way consumer’s think, feel and
act with respect to the brand.

The Entrepreneurial Brand

Successful new products spring from the convergence of: (1) the creative mind,
(2) the technical mind, (3) the business mind. All three minds come together in the
entrepreneurial mind.
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 Grade 12: Entrepreneurship Module

 Creative Mind – it conceptualize and designs a product that consumers find

some for it. It produces a product that is pleasing to see, touch, smell, hear
and taste.
 Technical Mind – it is the technology originator. The entrepreneur may not
necessarily possess the technical mind but this is what drive a person to
convert new knowledge into something highly functional and operational.
 Business Mind – the potentials of new products by creating the market space
for them. It organizes sufficient forces amd resources to develop, launch and
commercialize the new product in order to maximize its market value.

6 Types of Branding Strategies

There are several types of branding that may add value to your company
depending on your target, audience, industry, budget and marketing campaigns.
Here are the six types of branding strategies that have potential to build brand equity
for your business.

1. Personal Branding
- It describes branding that is used for an individual instead of
branding for a whole business. This type of branding is sometimes
used to establish a person’s character and personality.

ex. Celebrities, Politicians and leaders.

2. Product Branding
- This is one of the most popular branding types. This is because it
focuses on making a single product distinct and recognizable.
Symbols or designs are an essential part of product branding to
help your customers identify your product easly.

ex. Energy drinks, Powder Detergent and Soda

3. Corporate Branding
- It refers to a company’s image or identity and the way it’s presented
to customers. Marketing professionals often build corporate brands
to demonstrate how they prefer the company to perceive the
organization.

ex. Nike, Apple and Tesla

4. Service Branding
- It leverages the needs of the customer. Companies that use service
branding seek to provide their customers with world-wide service.
They aim to use excellent customer service as a way to provide
value to their customers.

ex. Airlines, hotels. Banks and travel agencies.

5. Co-Branding
- it is a form of branding that connects companies together or
marketing partnership between two or more business. It helps the
brand to impact each other positively.
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 Grade 12: Entrepreneurship Module

ex. BMW - Louis Vitton, Nike – Jordan and Kanye - Addidas

6. Online Branding
- It is also known as internet branding that helps business to position
themselves as part of the online marketplace. This type of branding
includes a company’s website, social media platforms and blogs.

ex. Lazada and Shopee

Activity

Assessment No.1

Below are different colors. Think and give at least 5 particular product or
company, local or international that you can identify with each color. Write your
answers in the box beside each color.

Example
RED - Jollibee

RED -

BLUE -

YELLOW -

BLACK -

GREEN -

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 Grade 12: Entrepreneurship Module

Assesstment No.2

Identification. Write your answer on the space provided.

________________1. is a symbol or other feature that distinguishes a seller’s goods or

services in the marketplace.

________________2. This type of branding includes a company’s website, social media

platforms and blogs.

________________3. It leverages the needs of the customer. Companies that use

service branding seek to provide their customers with world-wide service.

________________4. it conceptualize and designs a product that consumers find some

for it. It produces a product that is pleasing to see, touch, smell, hear and taste.

________________5. Marketing professionals often build corporate brands to

demonstrate how they prefer the company to perceive the organization.

________________6. It organizes sufficient forces amd resources to develop, launch

and commercialize the new product in order to maximize its market value.

________________7. This is one of the most popular branding types. This is because it
focuses on making a single product distinct and recognizable.

________________8. The entrepreneur may not necessarily possess the technical mind
but this is what drive a person to convert new knowledge into something highly
functional and operational.

________________9. This type of branding is sometimes used to establish a person’s

character and personality.

________________10. it is a form of branding that connects companies together or

marketing partnership between two or more business.

A poor man is not the one without a cent. A poor man

is the one without a dream.
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 Grade 12: Entrepreneurship Module

Philippine College of Advanced Arts and Technology Grade

1914 Doña Faustina Bldg., Recto Ave., Quiapo, Manila 1001
12

Quarter IV
Quarter 2
Quarter 2
MS. REYMA JOY L. MACUGAY
Author

MR. ROBERT JEROME DE VERA

Author

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 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Describe the 4M’s of operation in relation to the business opportunity.

 Apply the concept of 4M’s of production in a small manufacturing business.
 Appreciate the importance of production process, business model and
business plan.

Lesson

4 M’s of Production

The most serious issues in the whole production system are

the inputs and the transformation process. Their quality determines
the quality of the output. The factors involved in the input and
the production process are usually referred to as the Four M’s of
production namely Manpower, Method, Machine and Materials.

Production
Process

Manpower Method Machine Materials

- Skill - Schedule - Design - Design
- Technology - Procedure - Installation - Quality
- Resources - Operater - Supplier - Consumables
Communication - Maintenance

Manpower
Manpower talks about human labor force involved in the manufacture of products. It
is measured as the most serious and main factor of production. The entrepreneur must
determine, attain and match the most competent and skilled employees with the jobs at the
most appropriate time period.
Educational qualifications and experience, status of employment, number of workers
required, skills and expertise required for the job are some of the manpower criteria that
must be highly considered by the entrepreneur.
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 Grade 12: Entrepreneurship Module

Materials
It simply refers to the raw materials necessary in the production of a product.
Materials mainly form part of the finished product. Just in case the resources are below
standard, the finished product will unsatisfactory as well. The entrepreneur may consider
cost, quality, availability, credibility of suppliers and waste that the raw materials may
produce.

Machine
It is all about manufacturing equipment used in the production of goods or delivery
of services. In the process of selecting the type of equipment to purchase, the entrepreneur
may consider types of product to be produced, production system to be adopted, cost of the
equipment, availability of spare parts in the local market and efficiency of the equipment and
the skills required in running the equipment.
Method
It is the process or way of transforming raw materials to finished products. The
resources undergo some stages before it is finalized and become set for delivery to the target
buyers. The selection of the method of production is dependent on product to produce, mode
of production, manufacturing equipment to use and required skills to do the work.

Managing the Operation Function

The Product is the physical output of the whole production process. It should be
valuable and beneficial to the consumers and should satisfy their basic needs and wants.
There are two types of product: (1) heterogeneous product has dissimilar characteristics,
parts and physical appearance. It can be easily identified from other products, (2)
homogeneous product has a physical appearance, taste or chemical content that can hardly
be distinguished from that of the other products.

Prototype

Is a duplication of a product as it will be produced, which may contain such details as

color, graphics, packaging and directions. Benefits are the reason why customers will decide
to buy the products such as affordability, efficiency or ease of use. The features of the product
or service merely provide a descriptive fact about the product or service.

Suppliers

In a manufacturing venture, the suppliers plays a vital role. they are your business
parteners, without them your business will not live. You need them as much as you need your
customers to be satisfied.
Chain Management System

Value Supply
chain chain
It is a method or activities by which Is a structure or organization,
a company adds value to an item, people, activities data, and resources
with production, marketing and the involved in moving a product or
provision of after-sales service. service from supplier to customer.

The Eight Rs of HR

The Human Resources Function can be set at two levels. The first level is Strategic HR,
where it manages the big changes in the direction of the enterprise. The second level is
Operational HR, the function of this hr is to install the administrative systems that would allow

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 Grade 12: Entrepreneurship Module

for the efficient management of the organization and the creation of a conductive work
environment that would nurture a culture of execellence and empower its people.

Recruiting Reviewing Rewarding Retooling

Choosing the Performance Motivation, Transforming
right people indicators incentives people to
with right and system to higher levels
competencies, assessement. pursue SPM. of performance.
values and
attitude.

Recycling Resonating

Maximizing Rally the

potentials of organization to
people in the meet challenges to
organization. develop a culture
of excellence.

Retaining Routing
Satisfying needs, Career pathing of
wants and demands personnel to reach
of people and their optimum
creating a potential.
conductive work
environment.

Business Model

Business model describes the factors of how an organization

creates, delivers and captures value in economic, social, cultural
or other contexts. The development of business model construction
and variation is also called business model innovation and forms
part of a business plan.
There are important phases in developing your business model,
namely: identifying the specific audience, establishing business
process, recording business resources, developing strong value
proposition, determining key business partners and creating demand
for today’s generation strategy and being open for innovations.

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 Grade 12: Entrepreneurship Module

Business Plan

Entrepreneurs who plan to enter any business endeavor must have a business plan
on hand to guide them throughout the process. Different plans are prepared for different
purposes. There are business plans written prior to setting up an enterprise which are similar
to a prefeasibility study and a feasibility study.

There are business plans that are written during the first few years of the enterprise
in order to guide the entrepreneur on which strategies would be most beneficial for the
enterprise to take. And there are business plans that are focused on bringing the enterprise
to a higher level of growth, a period where the enterprise has already reached its peak and
would want to enter into another endeavor by creating and re-establishing itself.

The following are the components found in a business plan.

 Introduction – this part discusses what is the business plan all about.
 Executive Summary – is part of the business plan which is the first to be presented
but the last to be made.
 Management Section – shows how you will manage your business and the people you
need to help you in your operations.
 Marketing Section – shows the design of the product where you will sell and how you
will introduce the product to the market.
 Financial Section – shows the money needed for the business, how much you will take
in and how much you will pay out.
 Production Section – shows the area, equipment and materials needed for the
business.
 Competitive Analysis – is the strategy where you identify major competitors and
research their products, sales and marketing strategies.
 Market – refers to the persons who will buy the product or services.
 Organizational chart – is the diagram showing graphically the relation of one official
to another or others of a company.

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 Grade 12: Entrepreneurship Module

Activity

Assessment No.1
Read the questions carefully and write the letter of the correct answer on the space
provided.
_____1. Which of the following refers to the human workforce involved in the manufacture of
products?
a. Materials b. Method c. Machine d. Manpower

_____2. It is the replica of a product.

a. Prototype c. Suppliers
b. Business model d. Product description

_____3. The 4M’s of production are as follows except ONE. Which one is it?
a. Manpower c. Management
b. Method d. Materials

_____4. Which of the following refers to the system of organization, people, activities,
information and resources involved in moving a product from supplier to customer?
a. Business Model c. Prototype
b. Value Chain d. Supply Chain

_____5. Which of the following refers to the manufacturing equipment used in the production
of goods or delivery of services?
a. Method c. Materials
b. Machine d. Manpower

_____6. It refers to the process or technique of converting raw materials to finished products.
a. Manpower c. Method
b. Materials d. Machine

_____7. Which of the following is the process or activities by which a company adds value to an
article, including production, marketing and the provision of aftersales service?
a. Prototype c. Business Model
b. Supply Chain d. Value Chain

_____8. Which of the following refers to the marketing copy that explains what a product is and
why it is worth purchasing?
a. Product Description c. Suppliers
b. Prototype d. Business Model

_____9. Statement 1 – skills and expertise are not important in considering manpower.
Statement 2 – Benefits are the reasons why customers will decide to buy the products.
a. Only statement 1 is true c. Both statement are true
b. Only statement 2 is true d. Both statement are false

_____10. Statement 1 – educational qualifications and experience is one of the criteria in

considering manpower.
Statement 2 – Product to produce is one of the factors to be considered in method or
production method.
a. Only statement 1 is true c. Both statement are true
b. Only statement 2 is true d. Both statement are false.

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 Grade 12: Entrepreneurship Module

Assessment No.2

Answer the following questions based on the picture shown below. write your
answer on your notebook or on the space provided.

Questions:

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

Additional Activity

Answer the following questions based on your learnings about 4Ms of Production. Write
your answer on the space provided.
“in your home, when you want to eat egg sandwich before going to school, your mother would
surely prepare it for you. Your egg sandwich would not be produced without a process.”

Questions:

1. Who would be your manpower?

________________________________________________________________________
________________________________________________________________________
2. What would be your materials?
________________________________________________________________________
________________________________________________________________________
3. What machine or tools would you use?
________________________________________________________________________
________________________________________________________________________
4. What methods are needed to produce the egg sandwich? (enumerate the cooking
procedure
________________________________________________________________________

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 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Identify essential factors in forecasting revenues and costs

 Calculate mark-up and selling price of a product or merchandise
 Compute projected revenues and costs
 Create a table showing projected revenue and cost
 Appreciate the significance of forecasting revenues an costs to a business.

Recalling

The 4 M’s analysis is a method for evaluation which of the 4M conditions is

responsible for a defect mode. This is a tool designed to identify, explore and graphically
display the possible causes related to a problem or condition. This approach allows teams to
focus on content of the problem, creates a snapshot of the collective knowledge and
consensus of a team and focuses the team on the cause rather than the symptom.

Lesson

Revenue

It is a result when sales exceed the cost to produce goods

or render the services. it is also recognized when earned,
whether pain in cash or changed to the account of the customer.
Other terms, related to revenue include sales and service
income. Sales is used especially when the nature of business is
merchandising or retailing, while Service Income is used to
record revenues earned by rendering services.

The entrepreneur would want their forecasting for their

small business as credible and as accurate as possibe to avoid complications in the future. In
estimating potential revenue for the business, factors such as external and internal factors
that can affect the business must be considered. These factors serve as basis in forecasting
revenues of the business. These factors are:

 The economic condition of the country

- When the economy grows, its growth is experienced by the
consumers. Consumers are more likely to buy products and
services. The entrepreneur must be able to identify the overall
health of the economy in order to make informed estimates. A
healthy economy makes good business.

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 Grade 12: Entrepreneurship Module

 The competing business or competitors

- Observe how your competitors are doing business. Since your
share same market with them, information about the number of
products sold daily or the number of items they are carrying will
give you a benchmark on how much products you need to stock
your business in order to cope with the customer demand.

 Changes happening in the Community

- Changes happening in the environment such as customer
demographic, lifestyle and buying behavior give the entrepreneur
a better perspective about the market. the entrepreneur should
always be keen in adapting to these changes in order sustain the
business.

 The internet aspect of the business

- Another factor that affects forecasting revenues in the business
itself. Plant capacity often plays a very important role in
forecasting.
4 Revenue Forecasting models for Accurate Predictions

 Straight Line Forecast Method

- This method requires only basic mathematics and hence very easy
to put in place. It provides fair estimates of what to expect in your
future financial growth. It considers your historical revenue
growth rate to measure future growth.

 Moving Average Forecast Method

- A moving average calculates the average performance of a metric
within shorter time periods, such as days, months, and quarters.
It's not used for long time frames, such as years, as it develops too
much lag. This method is mostly used to estimate revenues, sales
growth, profits, and other similar financial metrics.

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 Grade 12: Entrepreneurship Module

 Time Series Forecast Method

- The time series method helps identify patterns in existing data
that may repeat in the future. It focuses on data-driven forecasting
across different financial metrics. This method is useful in
scenarios where performance is mostly steady, and external
trends affect forecasts.

 Linear Regression Forecast Method

- Linear regression depicts the relationship between two or more
data points on a graph. It makes a trend line showing the
relationship between the variables. This method is quite easy for
businesses that create revenue forecasts in Excel. The trend line
in this method helps forecast future growth, supports efficient
budgeting, and helps in better decisions.

Mark up

It is refers to the amount added to the cost to come up with the selling price. The
formula for getting the mark up price is as follows:

Mark up Price = ( Cost x Desired Mark Up Percentage )

Mark up for T-shirt = (90.00 x .50)

Mark up for T-shirt = 45.00

In calculating for the selling price, the formula is as follows:

Selling price = Cost + Mark Up

Selling price = 90.00 + 45.00

Selling price for T-shirt = 135.00

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 Grade 12: Entrepreneurship Module

Table1

Projected Daily Revenue

Ready to Wear Online Selling Business

Projected Projected
Volume Revenue
(D) (E)
Type of Cost per Mark Up Selling
RTW’s Unit 50% Price Average No.
(A) (B) (C) of items sold
(Daily) (Daily)
(A) (B) = (A x .50) (C) = (A+B) (D) (E) = (C x D)

T-Shirt 90.00 45.00 135.00 10 1,350.00

Jeans 230.00 115.00 345.00 6 2,070.00

Total 320.00 160.00 480.00 16 3,420.00

Table 2 shows the projected monthly and yearly revenue of Aling Marites online selling
business. Computations about the montly revenue is calculated by multiplying daily revenues
by 30 days (1 month)

For example, in table1 the daily revenue is 3,420. To get the monthly projected
revenue it is multiplied by 30 days. Therefore,
Projected Monthly Revenue = Projected Daily Revenue x 30 days.

Projected Monthly Revenue = 3,420 x 30

Projected Monthly Revenue = 102,600.00

On the other hand, the projected yearly revenue is computed by multiplying the
monthly revenue by 12 months. The calculation for projected yearly revenue is as follows:
Projected Yearly Revenue = Projected Daily Revenues x 365 days
Projected Yearly Revenue = 3,420.00 x 365

Projected Yearly Revenue = 1,248,300.00

Table 2

Projected Monthly and Yearly Revenue

Ready to Wear Online Selling Business

Projected Projected Projected Projected

Volume Revenue Volume Revenue
Type Selling
of Price
RTW’s (A) Average no. of Average
items sold (Monthly) No.
(Montly) of items (Yearly)
sold
(Yearly)
(C) = (A+B) F = (D x 30 days) G = (C x F) H = (D x 365 I = (C x H)
days)
T- 135.00 300 40,500.00 3,650 492, 750.00
Shirt
Jeans 345 180 62,100.00 2,190 755,550.00

Total 480.00 480 102,600 5,840 1,248,300.00

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 Grade 12: Entrepreneurship Module

Table 3 shows the projected monthly revenues covering one year of operation. The
table shows an average increase of revenue every month by 5 percent except June, July to
October and December. While the month of June has twice the increase from the previous
month by 10 percent, let us consider that months covering July to October are considered to
be Off-Peak months, therefore sales from July to October are expected to decrease. It is
assumed that there is no increase in revenue from July to August, while from August to
October the decrease in revenues is 5 percent from previous month. Since revenues from
sales of RTW’s are considered to be seasonal, it assumed that there is a 10 percent increase
in revenue from November to December.

Computation for assumed increase of reveneue on specific months is as follows:

Projected Monthly Revenue (Increase) = Revenue (January) x 5 % Increase
Projected Monthly Revenue (Increase) = 102,600.00 x .05
Projected Monthly Revenue (Increase) = 5,130.00
Projected Revenue for February = Revenue (January) + Amount of Increase
Projected Revenue for February = 102,600.00 + 5,130.00
Projected Revenue for February = 107,730.00

On the other hand, decrease in revenue is computed as follows:

Projected Monthly Revenue (Decrease) = Revenue (August) x 5 % Increase
Projected Monthly Revenue (Increase) = 144,041.14 x .05
Projected Monthly Revenue (Increase) = 7,202.06
Projected Revenue for September = Revenue (August) - Amount of Decrease
Projected Revenue for September = 144,041.14 – 7,202.06
Projected Revenue for September = 136,839.08

Table 3
Projected Monthly Revenue
Ready to Wear Online Selling Business

Month January February March April May June

Revenue 102,600.00 107,730.00 113,116.50 118,772.33 124,710.94 137,182.04

Month July August September October November December

Revenue 144,041.14 144,041.14 136,839.08 129,997.13 136,496.98 150,146.68

Important Assumptions:
February to May Increase of 5% from previous revenue
June Increase of 10% from previous revenue
July to August The same Revenue
September to October Loss of 5% from previous revenue
November Increase of 5% from previous revenue
December Increase of 10% from previous revenue

39

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 Grade 12: Entrepreneurship Module

The numbers in the last table are very attractive, having revenues that are increasing
in numbers is a good sign that a business is growing. However, an entrepreneur should not
be overwhelmed by these revenues, as these are just gross revenue, this is not the final
amount of profit or income an entrepreneur will get at the end of every period. Take note that
the amount of net revenue is still subjected to the expenses incurred in the operation of
business.

-
Activity

Assessment No.1
Aling Marisa is operating a buy and sell business, she sells broomsticks (walis
tingting) in her stall at a local market. she gets her broom sticks from a local supplier for 25
pesos each. She then adds 50 percent mark up on each broomstick. Everyday, Aling Marisa
can sell 30 pcs of broomsticks.

Use the template below and fill in the necessary figures based on the scenario.
remember to use the factors to consider in projecting revenues and refer to table 1,2 and 3
as your guide.

Table 1
Projected Daily Revenue
Name of Business _______________________________

Projected Projected
Volume Revenue
(D) (E)
Type of Cost per Mark Up Selling
RTW’s Unit 50% Price Average No.
(A) (B) (C) of items sold
(Daily) (Daily)
(A) (B) = (A x .50) (C) = (A+B) (D) (E) = (C x D)

Total

Table 2
Projected Monthly and Yearly Revenue
Name of Business _______________________________

Projected Projected Projected Projected

Volume Revenue Volume Revenue
Type of Selling
RTW’s Price
(A) Average no. of Average No.
items sold (Monthly) of items sold
(Montly) (Yearly) (Yearly)
(C) = (A+B) F = (D x 30 days) G = (C x F) H = (D x 365 I = (C x H)
days)

Total

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 Grade 12: Entrepreneurship Module

Table 3
Projected Monthly Revenue
Name of Business _______________________________

Month January February March April May June

Revenue

Month July August September October November December

Revenue

Assessment No.2

Write TRUE if the statement is correct and FALSE if the statement is incorrect.

________1. When sales exceed the cost to produce goods its result is called forecasting.
________2. Mark-up refers to the amount added to the cost of a product to determine the selling
price.
________3. Forecasting is a planning tool that helps the entrepreneur cope with uncertainties
in his future operation.
________4. Costs incurred through payment of utilities such as water and electricity are called
operating expenses.
________5. Mang Mario is a fruit vendor. Selling fruits is an example of a service concern
business.
________6. The selling price of a product is calculated by adding its cost per unit and markup.
________7. Merchandise or goods purchased are called Purchases.
________8. Aling Becky sells suman in her neighbourhood, every day she can sell 75 pieces of
suman for 5.00 pesos each. Her daily revenue is 325.00 pesos.

Additional Activity: Post-Test

It is understood that you now know how to calculate mark-up and selling price of an
item or merchandise. Let us try the following situations to see if you have understood the
concepts.

1. Kyle, a local entrepreneur is planning to sell 10 liter-bottled waters in his sari-sari

store. A local water purifying business in the city sells their 10-liter bottled water for 20 pesos
each. Kyle wants to add 25 per cent mark up from the original cost of 10 liters bottled water.
Calculate how much mark-up Kyle should add. Determine how much should be the selling
price for 10-liter bottled water.

2. Zoei sells fruits in a local fruit stand in the market. She gets her fruits from a local
wholesaler in the city. Zoei charges 40 per cent mark up for every kilo of watermelon she gets.
Suppose the cost per kilo of watermelon is 25, how much is the selling price for one kilo of
watermelon?

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 Grade 12: Entrepreneurship Module

Quests

at the end of this lesson, learners should be able to:

 Identify the purpose of keeping business records.

 Value the importance of keeping accurate business transactions.
 Prepare an income statement of your business operation; and
 Appreciate the significance of the lesson.

Recalling

Forecasting the revenue is based on the existing state of the business as well as the
historical performance. A revenue forecast involves looking at your entire business, rather
than only activities and quotas executed by your sales team. Compared to a sales forecasts,
revenue forecasts tend to be more holistic.

Lesson

A Very good Business Plan

The entrepreneur must be very clear about the

purpose in establishing the enterprise. Whether it is for
henerating profits or feeding the family, making a difference
in the industry or actualizing the self, the purpose must be
compelling enough to motivate the entrepreneur.

The next step for the entrepreneur is to have a very

good business plan. It is a wise thing ti do in order to chart the
course of the business properly and to focus the efforts of the
entrepreneur. The puropose of a business plan are: (1) Entice
partners, investors, and bankers to fund a business venture/
(2) Communicate what the enterprise is all about, what market it wants to serve and (3) show
what financial returns it could muster.

Guidelines for Successful Business Plan

1. Objectives – The entrepreneur should have a clear idea on what is his purpose of putting
up his enterprise.

2. Tasks – This means that the entrepreneur must know what are the tasks he has to perform
in order to realize his objectives.

3. Time Allocation – This means that the entrepreneur should have a time table or a schedule
to follow for every task so that the tasks will be accomplished timely and he can realize his
objectives.

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 Grade 12: Entrepreneurship Module

4. Progress – This means the entrepreneur should monitor the development of the tasks and
the accomplishment of the objectives.

In operating a business, the entrepreneur should first consult professionals for

advices, like accountants or consultants from small enterprises. The following are the basic
requirements to start a business in the Philippines:
 Securities and Exchange Commission (SEC) Registration – for partnership or
corporation.
 Department of Trade and Industry (DTI) Registration – for your business
tradenmae.
 Mayor’s Business Permit – for getting the licence to operate in the city or
municipality and payment of your local business taxes.
 Bureau of Internal Revenue (BIR) Registration – for getting TIN, official receipts
and invoices, registering your books of accounts and paying your national internal
revenue taxes.
 SSS, Philhealth and Pag-ibig Fund Registration – for registering yourself or your
company as an employer and for remitting your employees’ contribution together
with your employer’ share.

Keeping Business Records

Good record keeping can help protect the business, measure the performance and
maximize profit.

Records are the source documents, both physical and electronic that specify
transaction dates and amounts, legal agreements, private customer and business details.

Developing a system to log, store and dispose of records can benefit the business. A
systematic recording allows you to:

a. Plan and work more efficiently

b. Meet legal and tax requirements
c. Measure profit and performance
d. Protect your rights
e. Manage potential risks.

Partnership

If two or more persons bind themselves into a contract to contribute money, property
and expertise in a common venture with the intention of dividing the profits among
themselves. A minimum of two persons can constitute a partnership. However, there is no
limit to the number of persons in a partnership.

There are two types of partnership based on the liability of the partners:

 General Partnership
- It is composed of partners who are liable individually and
collectively to all those who have claims against them. Claimants
can run after all the personal assets of all the partners.
 Limited Partnership
- It consists of partners who have limited liabilities while others in
the partnership have unlimited liabilities. A limited partner is not
personally liable for all the obligations of the partnership beyond
on their prorated capital contribution to the partnership.

43

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 Grade 12: Entrepreneurship Module

-
Activity

Assessment No.1

Identify the services offered by the following offices to you as an entrepreneur.

1. Department of Trade and Industry (DTI)

______________________________________________________________________________________________
______________________________________________________________________________________________

2. Securities and Exchange Commission (SEC)

______________________________________________________________________________________________
______________________________________________________________________________________________

3. Bureau of Internal Reveneu (BIR)

______________________________________________________________________________________________
______________________________________________________________________________________________

4. Mayor’s Office
______________________________________________________________________________________________
______________________________________________________________________________________________

Assessment No.2

Write an essay answering the following guide questions.

1. As an Entrepreneur, is it important to know the services offered by the offices mentioned

above? If yes, in what way do their services become important to you? If no, what makes
their services unnecessary to you?

2. Do you think a business can last without availing the services of the said offices? Why or
why not?

Additional Activity: Post-Test

I. Read the question carefully and write the letter of the correct answer on the space provided.

_______1. To secure a Tax Identification Number, which office will you go?

a. Mayor’s Office C. SEC

b. BIR D. DTI
_______2. Which of the following is not a step to follow before operating a business?
a. Register your business
b. Set up an accounting system
c. Advertise the business using facebook
d. Selling the product
________3. The objective of the entrepreneur should be
a. Specific and Clear c. Short and Blurred
b. Specific and Long Term d. Long and Not Specific

________4. The sources of documents are called

a. Income Statements c. Records
b. Balance Sheets d. Record Keepings
________5. The task to be accomplished before operating the business should have:
a. Design b. Decoration c. Time Allotment d. Measurement

44

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 Grade 12: Entrepreneurship Module

References:

Entrepreneurship successfully launching new ventures by R. Duane Ireland Bruce R.

Barringer
Entrepreneurship and organizational innovation by Carolina Machado, J. Paulo Davim
Essentials of Entrepreneurship and small business management, Global Edition by
SCARBOROUGH NORMAN M, ET AL.
Social Innovation and social Entrepreneurship fundamentals, concepts and tools by Luis
Portales
The SAGE handbook of small business and entrepreneurship by Robert Blackburn, Dirk
De Clercq, Jarna Heinonen
Aduana, N. (2017). Entrepreneurship in Philippine Setting (for Senior High School)
Banastao,C.,& Frias, S.(2008) Entrepreneurship.Quezon City Philippines: C & E
Publishing,Inc.
Batisan, R. (2016). Entrepreneurship Module, Diwa Senior Highschool Series, Diwa
Learning System Inc. Legaspi Village, Makati City Philippines.
De Guzman, A. (2018). Entrepreneurship. For Senior High School Applied
Subject ABM Strand. Lorimar Publishing, Inc. p. 25 – 26.
Habaradas, Raymund B. and Tullao,Jr., Tereso S., Pathways to Entrepreneurship, 2016,
Phoenics publishing house
Entrepreneurship by Eduardo A. Morato, Jr.
https://www.slideshare.net/HarshitChadha/marketing-mix-7-ps-
34642513?fbclid=IwAR1lQkIG0TqeHuVfE8nAIXLYeuCjqGgmxUHvCP5RcnYVuz8Vi8YyfPkX
kLg
https://www.slideshare.net/elisantos11/marketing-mix-the-7-ps-of
marketing?fbclid=IwAR2MqXnHGKRW7MSaDQDncp1YjeHy0k0HBjkPN-
SiXFxfWSxmhqzIk-Qdsmo
https://www.slideshare.net/kkpanchal/7ps-of-marketing-
45928315?fbclid=IwAR22XCQwWxM3T5Gf9miyn6wnDSwNg7nc26DkA4me93shmAowI3
BOxSH2W4U
https://www.slideshare.net/networldsujeet/marketing-7-ps?fbclid=IwAR3mtOivIJq-
OH4TO_tzYJ0ocMfS_JKxrzr8bpNzp_nkCHfKLwJFcVkqacM
https://books.google.com.ph/books?id=uqmdDQAAQBAJ&printsec=frontcover&dq=ent
repreneurship&hl=en&sa=X&ved=2ahUKEwiJieSBy_X1AhXly4sBHe8FCh8Q6AF6BAgLEAI
&fbclid=IwAR0z_ko1-EjZz0rUhjLoypGNNBlfVBcv_bLpCqJG9NViTyq3phQCQlcH-
Wk#v=onepage&q=entrepreneurship&f=false
https://www.slideshare.net/HitEshMunJal2/brand-name-81875641
https://www.business2community.com/branding/7-types-of-branding-strategies-and-
how-to-select-one-examples-02316182

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 Grade 12: Entrepreneurship Module

https://www.indeed.com/career-advice/career-development/corporate-
branding#:~:text=Corporate%20branding%20refers%20to%20a,company%20to%20perc
eive%20the%20organization.
https://www.slideshare.net/NenzkieMojares/entrepreneurship-
overview?next_slideshow=86234127&fbclid=IwAR2BQN5Ttc_q7gtxiFAM0gWe7YQnfHm
LLAgGaX8gk62uCG25sUsaIz2miwM
https://www.slideshare.net/NenzkieMojares/entrep2-pp-
106163659?next_slideshow=106163659&fbclid=IwAR20KigNDc_CPy8KTCPGlV2hvRWyT
3iGsTN8xdLl1stLneRrr9GtGAt6D8k
https://slideplayer.com/slide/16640533/?fbclid=IwAR1esoQRgOWhpTGGsAU1VptuYSU
wa8OhHUeiCjse2ktidhrvuS_4D5HsnQs
https://www.slideshare.net/albertramanujan/introduction-to-entrepreneurship-
70718160?fbclid=IwAR1-lN_7GzRr9b6BSkCoR-w-QZmL3rBDawBcLfbOB5iT3LmK2hdPqg-
ps1A
https://www.slideshare.net/wilfreddextertanedo/entrepreneurship-lesson-1-
introduction-to-entrepreneurship-pinoy-
style?fbclid=IwAR1lQkIG0TqeHuVfE8nAIXLYeuCjqGgmxUHvCP5RcnYVuz8Vi8YyfPkXkLg
https://www.slideshare.net/RevathyRajasekaran/entrepreneurship-introduction-
185158280?fbclid=IwAR3BgEByNel9GrNkcGCKJGQkRC53q-
d5rNR3dHWuSbPVrpH258FzAfW8ZSo

A poor man is not the one without a cent. A poor man

is the one without a dream.

46

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part of copyrighted material without prior written permission from the rightful owner.