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Grade 12 ENTREPRENEURSHIP
(ENTREP-12-Q4-WEEKS1 & 2)
4 M’S OF OPERATIONS IN RELATION TO
THE BUSINESS OPPORTUNITY AND
DEVELOPING BUSINESS MODEL
TIME LEARNING COMPETENCY LEARNING TASKS MODE OF
ALLOTMEN DELIVERY
T
Describe the 4Ms (Manpower, *Answer the Pre-Test Parent/ Guardian
Method, Machine, Materials) of and Activity 1 will go to school
2 hours operations in relation to the business *Read the lecture every Friday for
opportunity: *Answer Activity 2 retrieval and
 Develop a product description distribution of
2 hours *Answer Activity 3, 4 and
 Create a prototype of the printed modules.
the Assessment.
product *Do the additional
 Test the product prototype Activity.
 Discuss the value/supply chain
in relation to the business
enterprise;

Pre-Test: Instruction: Read the statements carefully then write TRUE if the statement is correct
and write FALSE if you think the answer is not correct. Write your answer on your
paper.
1. Output represents the final products from the production process and distributed to the
customers.
2. The 4M’s in the production operation are the materials, manpower, machine and money.
3. Manpower in production operation refers to the workers involved in the production of
goods.
4. Product description is the marketing copy that explains what a product is and its benefits.
5. Prototype is a replica of a product.
6. Product to produce is one of the factors to be considered in the production method.
7. Educational qualifications and experience are criteria in considering manpower.
8. Skills and expertise are not important in considering manpower.
9. Benefits are the reasons why customers will decide to buy the products.
10. Machine refers to the manufacturing equipment.
11. Supplier is an entity that supplies goods and services to another organization.
12. Supply chain is a system of organizations, people, activities, data and properties
involved in moving a product or service from supplier to customer.
13. Business model describes the rationale of how an organization makes, transports, and
captures value in economic, social, cultural or other contexts.
14. In selecting the type of equipment to purchase, the entrepreneur may consider cost and
capacity of the equipment.
15. Value chain is the process or activities by which a company adds cost to an article that
includes production, promotion, and providing of after-sales service.

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ACTIVITY 1: GUESS THE PICTURE
Direction: Given with the following pictures, fill in the following blanks below to form a
meaningful word. Two (2) points for each correct word.

1. 3.

2. 4.

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.

Four M’s
 Manpower
 Method OUTPUT
 Machine
 Materials

Manpower
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 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, numbers of workers required,
skills and expertise required for the job are some of the manpower criteria that must be highly
considered by the entrepreneur.

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

Machine
Discusses 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 products to be produced, production system to be adopted, cost of the
equipment, capacity of the equipment, availability of spare parts in the local market, efficiency of
the equipment and the skills required in running the equipment.

Method
Production method discusses the process or way of transforming raw materials to finished
products. The resources undergo some stages before it is finalized and becomes 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.

Product Description
It is the promotion that explains what a product is and why it’s worth buying? The purpose of
a product description is to provide customers with details around the features and benefits of the
product so they’re obliged to buy. Know who your target market is, focus on the product benefits,
tell the full story, use natural language and tone, use power words that sell, and use good
images. These are guidelines for you to have a good product description; since some customers
are very particular with it since they consider the welfare of their family, if it is safe to use.

Prototyping
A duplication of a product as it will be produced, which may contain such details as color,
graphics, packaging and directions. One of the important early steps in the inventing process is
making a prototype. Benefits are the reasons 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. It is better to test your product prototype to meet
customers’ needs and expectations; and for your product to be known and saleable. Pretesting
of the product or service is similar to a sample of the product or service given to the consumer
free of cost in order that he/she may try the product before committing to a purchase.

Supplier
An entity that offers goods and services to another business. This entity is among of supply
chain of a business, which may offer the main part of the value contained within its products.
Certain suppliers may even involve in drop shipping, where they ship goods directly to the
customers of the buyer.
Suppliers are your business partners; without them your business will not live. You need
them as much as you need your customers to be satisfied. But as an entrepreneur you have to
choose a potential supplier that has loyalty and value your partnership; a supplier that would lead
you to the fulfillment of your business objectives, mission and vision.

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 Value chain is a method or activities by which a company adds value to an item, with
production, marketing, and the provision of after-sales service. The main goal and benefit of a
value chain, and therefore value chain analysis, is to make or support a competitive benefit.

A supply chain is a structure of organizations, people, activities, data, and resources

involved in moving a product or service from supplier to customer. The main objective of supply
chain management includes management of a varied range of components and procedures, for
instance, storing of raw materials, handling the inventory, warehousing, and movement of
finished product from the point of processing to the point of consumption.

Business model describes

the reasons of how an organization creates, delivers, and captures value in economic, social,
cultural or other contexts. The development of business model construction and variation is also
called business model innovation and forms a part of business plan.
It is a company's plan for how it will make revenues and make a profit. It describes what
products or services the business plans to manufacture and market, and how it plans to do so,
as well as what expenses it will incur.
There are important phases in developing your business model, namely; Identifying the
specific audience; establishing business process; recording a business resources; developing
strong value proposition; determining key business partners; and creating a demand for today’s
generation strategy and be open for innovations.
After developing a business model, we will proceed in developing a business plan. To be
able to successfully complete this module, you need to prepare a business plan and operate
your plan and finally keep records of your business transactions.

Business plan is an important tool for you to have an idea about the future of your
business. Your business plan will be your guide in the moment you will be implementing and
operating your business proposal.
You can also make use of the business plan in securing investment capital from financial
institutions or lenders. It can also be used to influence people to work for your enterprise, to
secure credit from suppliers, and to fascinate potential customers.

Read the stories of Jessie, Mercy and Monna below to fully understand the importance of having
a business plan:
“Jessie is the eldest of five children of Mr. & Mrs. Natividad. The family is having
difficulty to support for their everyday needs. Because of this, Jessie tried to enter selling
banana cue and with his dream to make his business grow, he put up many stalls in the
community without considering the advises of his friends to make a business plan before
implementing his decision. After a few months his stalls shutdown.”
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply
make up to her friends. Until such time that her friends introduced her to their friends too for
haircut and make up when there are occasions. Few months after, Mercy was told by her
friends to put up a beauty parlor in their place. So she asks her mother who is also a
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 businesswoman to teach her how to make a business plan and eventually ended with a
successful business.”
“Monna is a diligent student. Because of her knowledge gained from school about
business plan she was able to enhance her skills in business and finally found herself into
his laundry shop business.”

Each scenario taught us that business is not just about how much income or profit you can get
but it’s about the life of your business. And in having a business, you also have to consider
technological forces, Social forces, Political forces, Cultural forces, Economic forces and Legal
forces.
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 your product/service; pricing, where you will sell
and how you will introduce your product/service to your 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- 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.

ACTIVITY 2 General Directions: Answer the following questions based on your learnings about
4M’s of production and Value Chain or Supply Chain. Write your answer on the
space provided. Five (5) points in each correct answer for Problem No.1 and 2
points for each correct answer in Problem No.2.

Problem No. 1. “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.”
1. Who would be your manpower? ________________________________________
2. What would be your materials? ________________________________________
3. What machines or tools would you use? _________________________________
4. What methods are needed to produce the egg sandwich? (Cooking procedures-
enumerate them).______________________________________________________

Problem No. 2: With the following pictures shown, identify each picture whether it is Value
Chain or Supply Chain.

1. 3.

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 ____________________________ ___________________________

2.

_______________________

ACTIVITY 3. Complete the statements below and write your answers on your paper.
1. _____________ talks about human labor force involved in the manufacture of products. It is
measured as the most serious and main factor of production.
2. _____________ is about raw materials necessary in the production of a product.
3. _____________ discusses the process or way of transforming raw materials to finished
products.
4. The purpose of a _____________________ is to provide customers with details around the
features and benefits of the product so they’re obliged to buy.
5. A duplication of a product as it will be produced, which may contain such details as color,
graphics, packaging and directions. One of the necessary early steps in the inventing
method is creating a _______________.

ACTIVITY 4 Direction: Answer the following questions based on the picture shown below. Write
your answers on your paper.

1. Are you familiar with the picture

above? 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
becomes famous amongst teens nowadays?
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 ______________________________________________________________.
3. Do you know some other ways to enjoy their product other than coming in personally into
their store and buying their product for yourself?
______________________________________________________________.
4. Do you think such strategies are effective to make the business more productive? Why
or why not?
______________________________________________________________.

ASSESSMENT
Choose the best answer. Write the letter of your answer on your paper.
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. The 4M’s of production are as follows EXCEPT ______.
A. Management B. Manpower C. Method D. Machine
3. Which of the following refers to the marketing copy that explains what a product is and why it
is worth purchasing?
A. Prototype C. Business Model
B. Product description D. Suppliers
4. It represents the final products from the production process and distributed to the customers.
A. Input B. Supplies C. Output D. Materials
5. It is a replica of a product.
A. Prototype C. Business Model
B. Product description D. Suppliers
6. Which of the following refers to the system of organizations, people, activities,information,
and resources involved in moving a product or service from supplier to customer?
A. Supply chain B. Value chain C. Business model D. Prototype
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 after-sales service?
A. Supply chain B. Value chain C. Business model D. Prototype
8. It describes the rationale of how an organization creates, delivers, and captures value in
economic, social, cultural or other contexts.
A. Prototype C. Business Model
B. Product description D. Suppliers
9. It is an entity that supplies goods and services to another organization.
A. Suppliers B. Business model C. Prototype D. Product description
10. Which of the following refers to the manufacturing equipment used in the production of
goods or delivery of services?
A. Machine B. Manpower C. Method D. Materials

ADDITIONAL ACTIVITY : Business Plan Making

Following is a template for business plan. You need to fill this out using the business you
want to pursue.

This section will show how you will manage your business
and the people you need to help you in your operations
MANAGEMENT
a. Manager: ______________________________
SECTION
b. Workers: ______________________________

MARKETING This section shows the design of your product/service;

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 pricing, where you will sell and how you will introduce your
product/service to your market.
a. Product Description: ______________________________
SECTION b. Price: _________________________________________
c. Selling location: __________________________________
d. Promotional Activity: ______________________________

This section shows the money needed for the business, how
much you will take in and how much you will pay out
a. Capital Amount: ____________________________
FINANCE
b. Expected Daily Sales: _______________________
SECTION
c. Expected Daily Expenses: ____________________
d. Income per Day:_______ _____________________

This section shows the area, equipment and materials

needs for the business.
PRODUCTION
a. Draw a lay out of your production area:
SECTION
b. Enumerate the equipment needed.
c. Enumerate the materials needed:

RUBRIC FOR BUSINESS PLAN MAKING

Content The content was well-thought ,guide questions 15
were thoroughly answered
Organization The paper was well-written with ideas easily 10
conveyed to readers.
Development Points are thoroughly developed 5
TOTAL 30

Source: Module by Department of Education-Division of Cagayan de Oro

Submitted by:

MYLENE A. TORRELIZA MAY C. QUIRANTE FELY C. SABADO

09453193118 09509208885 09178470256

Validated by:

EDUARD O. GONONG GAVINO L. FELIPE JR.

Master Teacher II Head Teacher III

KEY TO CORRECTIONS:
Pre-Test 1. TRUE 2. FALSE 3. TRUE 4. TRUE 5. TRUE 6. TRUE 7. TRUE 8. FALSE 9. TRUE 10. TRUE
11. TRUE 12. TRUE 13. TRUE 14. TRUE 15. TRUE
Activity 1 1. MANPOWER 2. MATERIALS 3. MACHINES 4. METHODS
Activity 2 Problem 1 Answers may vary.
Problem 2 1. Supply Chain 2. Value chain 3. Supply chain
Activity 3 1. Manpower 2. Material 3. Method4. product description 5. prototype
Activity 4 Answers may vary.
Assessment. 1. D 2. A 3. B 4. C 5. A 6. A 7. B 8. C 9. A 10. A