ENTREPRENEURSHIP 5.

Proactive – an entrepreneur can control a situation by

making things happen or by preparing for possible
RELEVANCE OF ENTREP TO AN ORG
future problems.
6. Risk Taker – an entrepreneur has the courage to
1. Development of Managerial Capabilities - this means
pursue business ideas.
that one of the benefits an entrepreneur gets is to
7. Innovative - the entrepreneur has big business ideas
develop his managerial skills.
and he does not stop improving and thinking of new
2. Creation of Organizations - which means that because
worthwhile ideas for his business
of entrepreneurship many organizations will exist.
3. Improving Standard of Living - this means that
CORE COMPETENCIES
entrepreneurship can lift up the economic status of an
individual.
1. Economic and Dynamic Activity - Entrepreneurship is
4. Means of Economic Development - this means that
an economic activity because it involves the creation
not only the life of the entrepreneur is improved but
and operation of an enterprise with a view to creating
also the society where the business is located
value or wealth by ensuring optimum utilization of
limited resources.
Entrepreneur came from the French verb ENTREPRENDE
2. Innovative – The entrepreneur constantly looks for
Which means TO UNDERTAKE the risk of enterprise
new ideas, thus he needs to be creative.
Innovators who are willing to take risks and generate
3. Profit Potential - The entrepreneur can be
unique ideas that can provide profitable solutions
compensated by his profit coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but
FACTORS AFFECTING ENTREPRENEURSHIP
wise enough to offset the risk.
1. Personality Factors which include:
a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities
PERSONAL COMPETENCIES
and seize it
c. Problem Solver - which means he can retain good
ACHIEVEMENT CLUSTER (OPCRD)
relations with other people.
d. Perseverance - meaning he will pursue things to get
Opportunity seeker
done regardless of challenges.
Persistence/persevere
e. Persuasion - means that he can entice people to buy
Commited to work
even if they don’t want to.
Risk-taker
f. A Planner - he makes plans before doing things and
Demand for efficiency & quality
does not fail to monitor it.
g. Risk-taker - which means that he is willing to gamble
PLANNING CLUSTER (GSI)
but he will calculate it first.
Goal setter
2. Environmental Factors which include political,
Systematic planner
climate, legal system, economic and social conditions
Information seeker
and market situations

COMMON COMPETENCIES POWER CLUSTER (PNSC)

1.Decisive - an entrepreneur must be firm in making
Persuasion and networking
decisions.
2. Communicator - an entrepreneur must have a Self confidence
convincing power.
3. Leader - an entrepreneur must have the charisma to
be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the
ability to be the first to see business chances.
MISSION VISION
A vision statement focuses on the future, and how the
A mission statement is a clear, concise description of a
company hopes to impact the world.
company’s purpose.
It describes what a company desires to achieve in the
It defines WHO the company is (and WHOM they’re long-run, generally in a time frame of five to ten years or
targeting), WHAT they do, and, most importantly, WHY sometimes even longer.
they do it.
CHARACTERISTICS OF A GREAT VISION STATEMENT
Ambitious - your vision statement should be a challenge
HOW TO DEVELOP A MISSION STATEMENT? that your team must strive to achieve.
1.Define your company’s offering Feasible - keep your vision statement within the realm
2.Define your core values of feasibility - not easy but not impossible.
3.Connect with leadership and key stakeholders for Broad - all of your company's goals sgould fit under
insights wider umbrella of your overall vision.
4.Find the connection between your offerings and your Strategic - describe an ideal future that's relevant to
values your company and makes sense as part of your brand.
5.Use that connection to draft a mission statement
6.Tighten up your mission statement CHARACTERISTICS OF A GREAT VISION STATEMENT
keep your own vision statement separate
QUESTIONS Collaborate
1.What is the primary purpose of a mission statement in add first,edit later.
an organization? avoid buzzwords and jargon.
To communicate the organization's core purpose and Avoid ambiguity
values
2.A mission statement should be __________ and easy MISSION - A one sentence statement outlining what
to understand. your company does,why it does it,and how it gets it
concise done.
3.Why is it important for a mission statement to reflect
an organization's core values and purpose? VISION - An aspirational statement that describes a
To provide a clear direction for decision-making and company's goals for the future and the impact it aims to
actions make on the world.
4.Which of the following is an example of an effective
mission statement? EXECUTIVE SUMMARY
a) "To make as much profit as possible for our
shareholders." the executive summary is commonly the last section to
b) "To be the global leader in providing innovative, be written after all other major parts have been
sustainable solutions for clean energy." completed, it is the next major part of the business plan
c) "To achieve a 10% increase in revenue every quarter." after the introduction.
d) "To keep our customers satisfied by any means
necessary."
1. Vision, mission, goals, and objectives of the business
2. Business model
WHAT NOT TO INCLUDE IN A COMPANY MISSION
-business model defines the perspective of the business
STATEMENT
in terms of its structure, production, operation, and
too much bluff
financial activities that will lead to the
your company's vision
achievement of the VGMO.
corporate jargon
3. Business and product position
-The business and product position will help determine
how the business defines its course and the process of
accumulating wealth. It tells the size of the market and
the target market share of the business and product.
4. Wealth improvement approaches INDUSTRY ANALYSIS
describes the methodologies or approaches that will be 1. Conducting a critical evaluation of the forces in the
taken by the business in order to industry that affect the
1. Maintain a competitive advantage, proposed business
2. Position the business in the market, 2. Evaluating the probable position of the business in
3. Improve the market share, and the industry
4. Maximize the utilization of resources. 3. Determining the most appropriate strategy that may
be adopted by the
5. Parties supporting the business proposed business
The parties that have a direct relationship with the
business are as follows: CONDUCTING A CRITICAL EVALUATION
1. Consumers the evaluation appears to be a mere play of words. The
2. Creditors industry analysis in all instances must not fail to
3. Suppliers evaluate and describe the target consumers and the
4. Employees and staff competitors. Data and information on these important
forces in the industry are usually the results of research
ENVIRONMENTAL ANALYSIS work.
It is a strategic tool that helps determine the external
and internal factors affecting the performance of the The demand and supply analysis, also called the
business. These factors may be political, economic, consumer and competitor analysis, is the backbone or
social, or technological in nature. The environmental the foundation of all other analyses. Where there are no
analysis may consist of at least 20 pages including the consumers or buyers of the product, the business will
graphical representations, tables, and computations. never be created. The presence of the consumers is the
The environmental analysis section is considered the ultimate reason for the existence of any business
heart of the business plan. endeavor.
Evaluating the Business Position
GLOBAL ANALYSIS
This deals with market share and growth. Entrepreneurs
The trend in the global market is the result of what
may use a perceptual map, also called positioning map,
happened in the past, while a possible business idea is
to help them understand their position against their
the expected event that may happen in the future.
competitors in the market.
Investors are more interested in what will happen in the
future. The global trend simply acts as an indicator of ORGANIZATIONAL PLAN – provides a detailed
any favorable sign for a business idea. description of the business

SOCIETAL ANALYSIS  Form of the business organization

Variables affecting the societal environment  Liability of the owner or owners
1. Political forces,  Organizational structure
2. Economic forces,  Roles and responsibilities
3. Socioeconomic forces,  Salary requirements
4. Technological forces, FORMS OF THE BUSINESS ORGANIZATION - Factors
5. Ecological forces, and affecting the selection of the most appropriate business
6. Legal forces. form

ECONOMIC ENVIRONMENT  Capital requirement

The prevailing interest rate given by most  Liability of the owner or owners
commercial and industrial banks  Management and supervisory skills
 Tax implications
 Government intervention
  Nature of the Business must produce goods based on the total demand of the
 External financing requirement consumers

LIABILITY OF THE OWNERS - describes the extent of the OPERATION PLAN - outlines the various activities, from
owner’s financial obligations with creditors. the acquisition of raw materials to the delivery of the
products to the target consumers.
LIMITED LIABILITY means that in the case of business
dissolution and there still remains unsettled financial  Evaluation of suppliers
obligation of the business, the creditor cannot go after  Materials requisition and receiving procedures
the personal property of the business owner.  Storage and inventory control system
 Shipment system and control
UNLIMITED LIABILITY means that the creditors can run
 Functions of support services
after the personal property of the owner in the event
that the business fails to fully settle its financial EVALUATION OF SUPPLIERS - The business must
obligation during business dissolution. conduct a critical evaluation of the suppliers of raw
materials and establish harmonious working
relationships with them to reduce the threats they
ORGANIZATIONAL STRUCTURE - It shows and defines posed.
the hierarchy of the different positions in the
MATERIALS REQUISITION AND RECEIVING PRODUCTS
organization and the interrelationships of the different
offices or departments. The person assigned to conduct inspection upon receipt
of the materials must be included.
ROLES AND RESPONSIBILITIES - must be clearly defined
in order to minimize and avoid misunderstanding and  Basis of receiving the raw materials
overlapping of functions.  Comparison of the order and receipt
 Quality of materials received
- Complete information about the expectations of a
particular job or positions facilitates evaluation and The basis of the receiving report is the purchase order
hiring of qualified personnel and the assessment of of the business. It must be signed by authorized
performance of existing workforce. personnel. After the inspection, the person receiving the
materials usually prepares the receiving report.
PRODUCTION PLAN - presents or describes activities
related to the production of goods. the result of the STORAGE AND INVENTORY CONTROL SYSTEM
industry analysis, particularly the study of supply and
demand and consumer behavior. describes how the business stores the finished goods
and protects its inventory against possible theft and
 Production Schedule losses.
 Production Process
 Processing Plant and equipment  Owning or renting a warehouse
 Sources of Material  Management of the warehouse
 Production Cost  Procedures in the transfer of goods.
 Control of inventory in the warehouse
Service Provision Plan – FOR SERVICE ENTITIES
the JUST-IN-TIME MANUFACTURING SYSTEM, also
PRODUCTION SCHEDULE - the total number of goods to known as JIT production system, storage and
be produced and the expected time to produce them. warehousing are eliminated because only actual orders
are produced at the exact required time.
 Demand for the product
 Availability of resources
 Capacity of the plant
SHIPMENT SYSTEM AND CONTROL - The basis of sales
The primary factor that influences the number of goods invoice and other shipment documents are the purchase
to be produced is market demand. The entrepreneur order received from the customers.
  Approval of shipping and sales documents Product refers to any goods or services that is produced
 Terms of shipment to meet the consumers’ wants, tastes and preferences.
 Manner of shipping the product comes with 2 products
 Other terms and conditions like sales contract. GOODS
A. CONSUMER GOODS - The one people use for
FUNCTIONS OF SUPPORT SERVICES - describes the everyday
functions of other support services relative to the B. BUSINESS GOODS - The things business owner use to
acquisition, processing, and shipment of goods to the produce the consumers goods
customers. SERVICES
A. CONSUMERS SERVICES - where people go to for daily
 Finance lives
 Marketing B. PROFESSIONAL SERVICES - The one who offers service
 Operation that only professionals can do
 Human resources
PLACE
Which part of the plan outlines the form of the business
organization,liability of the owner or owners, Place represents the location where the buyer and
organizational structure, roles and responsibilities, seller exchange goods or services. It is also called
salary requirements? ORGANIZATIONAL PLAN as the distribution channel. It can include any physical
store as well as virtual stores or online shops on the
The PRODUCTION COST presents the total number of Internet.
goods to be produced and the expected time to produce Channel 1 contains two stages between producer and
them. consumer - a wholesaler and a retailer. A wholesaler
In the case of business dissolution and there still typically buys and stores large quantities of several
remains unsettled financial obligation of the business, producers' goods and then breaks into bulk deliveries to
the creditor cannot go after the personal property of the supply retailers with smaller quantities. For small
business owner. This is what you called LIMITED retailers with limited order quantities, the use of
LIABILITY wholesalers makes economic sense.

ORGANIZATION PLAN Channel 2 contains one intermediary. In consumer

1. Form of the business organization markets, this is typically a retailer. A retailer is a
2. Liability of the owner or owners company that buys products from a manufacturer or
3. Organizational structure wholesaler and sells them to end users or customers. In
4. Roles and responsibilities a sense, a retailer is an intermediary or middleman that
5. Salary requirements customers use to get products from the manufacturers.
Channel 3 is called a "direct-marketing" channel, since it
PRODUCTION PLAN has no intermediary levels. In this case the
1. Production Schedule manufacturer sells directly to customers.
2. Production Process
3. Processing Plant and equipment PRICE
4. Sources of Material in the narrowest sense, price is the value of money in
5. Production Cost exchange for a product or service. Generally speaking,
the price is the amount or value that a customer gives
OPERATION PLAN up to enjoy the benefits of having or using a
1. Evaluation of suppliers product or service.
2. Materials requisition and receiving procedures price is determined by what
3. Storage and inventory control system (1) a buyer is willing to pay,
4. Shipment system and control
(2) a seller is willing to accept, and
5. Functions of support services
(3) the competition is allowing to be charged
PROMOTION
MARKETING PLAN Promotion refers to the complete set of activities, which
PRODUCT communicate the product, brand or service to the user.
The idea is to create an awareness, attract and induce
the consumers to buy the product, in preference over
others.
ADVERTISING
PUBLIC RELATIONS
PERSONAL SELLING
SALES AND PROMOTION
DIRECT MARKETING
PEOPLE
Your team, the staff that makes it happen for you,
your audience, and your advertisers are the people in
marketing. This consist of each person who is involved in
the product or service whether directly or indirectly.

PACKAGING
Packaging is a silent hero in the marketing world.
Packaging refers to the outside appearance of a product
and how it is presented to the customers.

POSITIONING
When a company presents a product or service in a
way that is different from the competitors, they are said
to be “positioning” it. Positioning refers to a process
used by marketers to create an image in the minds of a
target market