11/12

Entrepreneurship
Quarter 2 – Module 3:
Value and Supply Chain

SELF-LEARNING MODULE

DIVISION OF GENERAL SANTOS CITY

Subject Area – Grade 11/12
Self-Learning Module (SLM)
Quarter 2 – Module 3: Value and Supply Chain
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Development Team of the Module

Writers: Jim Boy M. Pestaño
Editors: Hilda Emma D. Macaway
Reviewers: Luzviminda R. Loreno – SHS Coordinator
Illustrator:
Layout Artist:
Cover Art Designer: Ian Caesar E. Frondoza
Management Team: Romelito G. Flores, CESO V – Schools Division Superintendent
Carlos G. Susarno, CESO VI – Asst. Schools Division Superintendent
Juliet F. Lastimosa, CID Chief
Sally A. Palomo, EPS - LRMS
Gregorio O. Ruales, EPS – ADM Coordinator
Dr. Luzviminda R. Loreno – Division Senior High School
Coordinator
Gregorio O. Ruales - Division ADM Coordinator
Luzviminda R. Loreno – SHS Coordinator

Printed in the Philippines by Department of Education – General Santos City

Office Address: Tiongson St., Lagao, General Santos City

Telefax: (083) 552-8909
E-mail Address: depedgensan@deped.gov.ph
 11/12

Entrepreneurship
Quarter 2 – Module 3:
Value and Supply Chain

SELF-LEARNING MODULE

DIVISION OF GENERAL SANTOS CITY

Introductory Message
For the facilitator:

Welcome to the Entrepreneurship 11/12 Self-Learning Module (SLM) on Value

and Supply Chain!

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

ii
For the learner:

Welcome to the Entrepreneurship 11/12 Self-Learning Module (SLM) on Value

and Supply Chain!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or

iii
 skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

iv
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master on discussing the value and supply chain in relation to the business
enterprise. The scope of this module permits it to be used in many different
learning situations. The language used recognizes the diverse vocabulary level of
students. The lessons are arranged to follow the standard sequence of the course.
But the order in which you read them can be changed to correspond with the
textbook you are now using.

In this module, we will discuss the value and supply chain in relation to the
business enterprise.

Learning Code: TLE_ICTAN11/12EM-Ia-2

After going through this module, you are expected to:

1. define what is a value and supply chain; and
2. discuss the value and supply chain in relation to the business enterprise.

GENERAL INSTRUCTION: Write all your answers on the answer sheet or in a

separate paper/notebook as per advised by the subject teacher.

1
 What I Know

Instruction: Choose the correct answer by encircling the letter of your choice on
the following questions.

1. What are the five primary activities of the value chain model?
a. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and
Technology Development
b. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and
Service
c. Inbound logistics, Operations, Infrastructure, HR Management, and Service
d. Inbound logistics, Procurement, Outbound Logistics, Marketing and Sales,
and Service

2. What are the supporting activities of the value chain model?

a. Infrastructure of the firm, Human Resource department, Technology
department, Procurement
b. Infrastructure of the firm, Human Resource department, Technology
department, Marketing and Sales
c. Infrastructure of the firm, Service, Technology department, Procurement
d. Inbound logistics, Procurement, Outbound Logistics, Marketing and Sales,
and Service

3. It is a business model that describes the full range of activities needed to create
a product or service.
a. PEST c. Value Chain
b. SWOT d. Value Chain Analysis

4. It include functions like receiving, warehousing, and managing inventory.

a. Inbound Logistics c. Outbound Logistics
b. Operations d. Marketing and Sales

5. It include strategies to enhance visibility and target appropriate customers—

such as advertising, promotion, and pricing.
a. Service c. Marketing and Sales
b. Operations d. Outbound Logistics

6. It includes programs to maintain products and enhance the consumer

experience—like customer service, maintenance, repair, refund, and exchange.
a. Operations c. Inbound Logistics
b. Service d. Marketing and Sales

7. It include procedures for converting raw materials into a finished product.

a. Operations c. Inbound Logistics
b. Service d. Marketing and Sales

2
8. It include activities to distribute a final product to a consumer.
a. Service c. Marketing and Sales
b. Operations d. Outbound Logistics

9. It is used at a firm's research and development (R&D) stage—like designing and

developing manufacturing techniques and automating processes.
a. Procurement c. Human Resource
b. Technological development d. Infrastructure

10. It involves hiring and retaining employees who will fulfill the firm's business
strategy and help design, market, and sell the product.
a. Procurement c. Human Resource
b. Technological development d. Infrastructure

11. It includes company systems and the composition of its management team—
such as planning, accounting, finance, and quality control.
a. Procurement c. Human Resource
b. Technological development d. Infrastructure

12. It concerns how a company obtains raw materials.

a. Procurement c. Human Resource
b. Technological development d. Infrastructure

13. It refers to factors that allow a company to produce goods or services better or
more cheaply than its rivals.
a. Value Chain Analysis c. Competitive Advantage
b. Operations Management d. HR Planning

14. Its main focus is on the cost and efficiencies of supply, and the flow of
materials from their various sources to their final destination.
a. Operations Management c. Supply Chain Management
b. Value Chain d. HR Management

15. It is when a firm's products or services differ from its competitors' offerings
and are seen as superior.
a. Competitive Advantage c. Differential Advantage
b. Comparative Advantage d. Technological Advantage

3
Lesson

1 Value and Supply Chain

Good day students! In our previous lesson, we discussed on how to develop a

product description as found necessary in every business venture that we may
have.

Today, we will discuss value and supply chain in relation to the business enterprise.

In this lesson, we will discover how value and supply chain contribute to the
successful business operations. We will also discover how an effective value and
supply chain management put every business enterprise into its advantage.

What’s In

In our previous lesson, we tackled how to develop a product description. For us to

connect it in today’s lesson, let us review what we had learned by answering the
following:

1. What is a product description?

___________________________________________________________________________
___________________________________________________________________________

2. How to write a product description?

___________________________________________________________________________
___________________________________________________________________________

3. How important is product description in every product?

___________________________________________________________________________
___________________________________________________________________________

Notes to the Teacher

Teacher facilitates an activity that enables learners to use previously taught lesson.

4
 What’s New

Activity 1: Connect the Chain!

Instruction: Arrange the following statement/words listed in the box based on
your understanding and self-assessment which you think must come first and
connect them to form a chain. After you have connected the chain, justify your
answer. Write your answer on the space provided below.

Customer Service, Maintenance, Repair Advertising/Promotion of Products

Buying/Acquiring Raw Materials

Production/Processing of Materials Distribution of Products to Consumer

1.

2.

3.

4.

5.

Justify your answer here.

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

5
Rubrics for Scoring:
Content of the Answer - 10 points
Coherence of Ideas - 10 points
Total - 20 points

What is It

Great! I believe that you are now ready to learn value and supply chain and its
relation to the business enterprise. Our discussion deals with how value and
supply chain contributed to the success of every business enterprise.

VALUE CHAIN

A value chain is a business model that describes the full range of activities needed
to create a product or service. For companies that produce goods, a value chain
comprises the steps that involve bringing a product from conception to distribution,
and everything in between—such as procuring raw materials, manufacturing
functions, and marketing activities.
A company conducts a value-chain analysis by evaluating the detailed procedures
involved in each step of its business. The purpose of a value-chain analysis is to
increase production efficiency so that a company can deliver maximum value for
the least possible cost.

 A value chain is a step-by-step business model for transforming a product or

service from idea to reality.
 Value chains help increase a business's efficiency so the business can
deliver the most value for the least possible cost.
 The end goal of a value chain is to create a competitive advantage for a
company by increasing productivity while keeping costs reasonable.
 The value-chain theory analyzes a firm's five primary activities and four
support activities.

Understanding Value Chains

Because of ever-increasing competition for unbeatable prices, exceptional products,

and customer loyalty, companies must continually examine the value they create in
order to retain their competitive advantage. A value chain can help a company to
discern areas of its business that are inefficient, then implement strategies that will
optimize its procedures for maximum efficiency and profitability.

In addition to ensuring that production mechanics are seamless and efficient, it's
critical that businesses keep customers feeling confident and secure enough to
remain loyal. Value-chain analyses can help with this, too.

6
Components of a Value Chain

In his concept of a value chain, Porter splits a business's activities into two
categories, "primary" and "support," whose sample activities we list below. Specific
activities in each category will vary according to the industry.

Primary Activities

Primary activities consist of five components, and all are essential for adding value
and creating competitive advantage:

1. Inbound logistics include functions like receiving, warehousing, and

managing inventory.
2. Operations include procedures for converting raw materials into a finished
product.
3. Outbound logistics include activities to distribute a final product to a
consumer.
4. Marketing and sales include strategies to enhance visibility and target
appropriate customers—such as advertising, promotion, and pricing.
5. Service includes programs to maintain products and enhance the consumer
experience—like customer service, maintenance, repair, refund, and
exchange.

Support Activities

The role of support activities is to help make the primary activities more efficient.
When you increase the efficiency of any of the four support activities, it benefits at
least one of the five primary activities. These support activities are generally
denoted as overhead costs on a company's income statement:

1. Procurement concerns how a company obtains raw materials.

2. Technological development is used at a firm's research and development
(R&D) stage—like designing and developing manufacturing techniques and
automating processes.
3. Human resources (HR) management involves hiring and retaining
employees who will fulfill the firm's business strategy and help design,
market, and sell the product.
4. Infrastructure includes company systems and the composition of its
management team—such as planning, accounting, finance, and quality
control.

Value Chain Analysis

Value chain analysis is the process of looking at the activities that go into
changing the inputs for a product or service into an output that is valued by the
customer. Companies conduct value-chain analysis by looking at every production
step required to create a product and identifying ways to increase the efficiency of
the chain.

7
Porter's Value Chain Analysis

Back in 1985, Michael Porter, a Harvard Business School professor, introduced a

basic value chain model in his book The Competitive Advantage: Creating and
Sustaining Superior Performance. He identified several key steps common among all
value chain analyses and determined that there are primary and supporting
activities that when performed at the most optimal levels will create value for their
customers, such that the value offered to the customer exceeds the cost of creating
that value, resulting in higher profit. Porter’s framework groups activities into
primary and support categories.

The primary activities focus on taking the inputs, converting them into outputs,
and delivering the output to the customer. The support activities play an auxiliary
role in primary activities. When a company is efficient in combining these activities
to provide a superior product or service, then the customer is willing to pay more
for the product than the cost to make and deliver the product which results in a
higher profit margin.
What Is Competitive Advantage?

Competitive advantage refers to factors that allow a company to produce goods or

services better or more cheaply than its rivals. These factors allow the productive
entity to generate more sales or superior margins compared to its market rivals.

Competitive advantages are attributed to a variety of factors including cost

structure, branding, and the quality of product offerings, the distribution
network, intellectual property, and customer service.

 Competitive advantage is what makes an entity's products or services more

desirable to customers than that of any other rival.
 Competitive advantages can be broken down into comparative advantages
and differential advantages.
 Comparative advantage is a company's ability to produce something more
efficiently than a rival, which leads to greater profit margins.
 A differential advantage is when a company's products are seen as both
unique and higher quality, relative to those of a competitor.

Understanding Competitive Advantage

Competitive advantages generate greater value for a firm and its

shareholders because of certain strengths or conditions. The more sustainable the
competitive advantage, the more difficult it is for competitors to neutralize the
advantage. The two main types of competitive advantages are comparative
advantage and differential advantage.

8
Comparative Advantage

A firm's ability to produce a good or service more efficiently than its competitors,
which leads to greater profit margins, creates a comparative advantage. Rational
consumers will choose the cheaper of any two perfect substitutes offered. For
example, a car owner will buy gasoline from a gas station that is 5 cents
cheaper than other stations in the area. For imperfect substitutes, like Pepsi versus
Coke, higher margins for the lowest-cost producers can eventually bring superior
returns.

Economies of scale, efficient internal systems, and geographic location can also
create a comparative advantage. Comparative advantage does not imply a better
product or service, though. It only shows the firm can offer a product or service of
the same value at a lower price.

For example, a firm that manufactures a product in China may have lower labor
costs than a company that manufactures in the U.S., so it can offer an equal
product at a lower price. In the context of international trade economics,
opportunity cost determines comparative advantages.

Amazon is an example of a company focused on building and maintaining a

comparative advantage. The ecommerce platform has a level of scale and efficiency
that is difficult for retail competitors to replicate, allowing it to rise to prominence
largely through price competition.

Differential Advantage

A differential advantage is when a firm's products or services differ from its

competitors' offerings and are seen as superior. Advanced technology, patent-
protected products or processes, superior personnel, and strong brand identity are
all drivers of differential advantage. These factors support wide margins and large
market shares.

Apple is famous for creating innovative products, such as the iPhone, and
supporting its market leadership with savvy marketing campaigns to build an elite
brand. Major drug companies can also market branded drugs at high price points
because they are protected by patents.

How to Improve the Value Chain

When a firm takes into account its value chain, it needs to consider its value
proposition, or what sets it apart from its competitors. Value chain analysis is
designed to improve profits by creating a product or service that is so superior that
customers are willing to pay more to the cost to develop it.

But improving a value chain for the sake of improvement should not be the end
goal. Instead, a company should decide why it wants to improve its value chain in
the context of its competitive advantage to differentiate itself among its peers.

9
Two common competitive advantage strategies include low cost provider or
specialization/differentiation of product or service.

 Low-cost provider – value chain analysis focuses on costs and how a

company can reduce those costs.
 Specialization – value chain analysis focuses on the activities that create a
unique product or differentiation in service.

SUPPLY CHAIN

 A supply chain is a network between a company and its suppliers to produce

and distribute a specific product to the final buyer. This network includes
different activities, people, entities, information, and resources. The supply
chain also represents the steps it takes to get the product or service from its
original state to the customer.
 Companies develop supply chains so they can reduce their costs and remain
competitive in the business landscape.

Understanding Supply Chains

A supply chain involves a series of steps involved to get a product or

service to the customer. The steps include moving and transforming raw
materials into finished products, transporting those products, and distributing
them to the end-user. The entities involved in the supply chain include
producers, vendors, warehouses, transportation companies, distribution centers,
and retailers.

 A supply chain is a network between a company and its suppliers to produce

and distribute a specific product or service.
 The entities in the supply chain include producers, vendors, warehouses,
transportation companies, distribution centers, and retailers.
 The functions in a supply chain include product development, marketing,
operations, distribution, finance, and customer service.
 Supply chain management results in lower costs and a faster production
cycle.
 The elements of a supply chain include all the functions that start with
receiving an order to meeting the customer's request. These functions
include product development, marketing, operations, distribution networks,
finance, and customer service.
 Supply chain management is a very important part of the business process.
There are many different links in this chain that require skill and expertise.
When supply chain management is effective, it can lower a company's overall
costs and boost profitability. If one link breaks down, it can affect the rest of
the chain and can be costly.

Supply Chain Management vs. Business Logistics Management

The terms supply chain management and business logistics

management—or simply, logistics—are often used interchangeably. Logistics,
which is one link in the supply chain, is different.

10
 Logistics refers specifically to the part of the supply chain that deals
with the planning and control of the movement and storage of goods and
services from their point of origin to their final destination. Logistics
management begins with the raw materials and ends with the delivery of the
final product.

Successful logistics management ensures that there is no delay in

delivery at any point in the chain and that products and services are
delivered in good condition. This, in turn, helps keep the company's costs
down.

How the Flow of Manufacturing Costs Works

The flow of manufacturing costs refers to the process of using

materials and labor to complete a finished product that can be sold to a
customer. A supply chain management system can reduce the cost and
complexity of the manufacturing process, particularly for a manufacturer
who uses many parts.

For example, a clothing manufacturer may first move raw materials

into production, such as fabric, zippers, and other pieces used to make
clothing. The manufacturer then incurs labor costs to run machinery and
perform other work using the materials. Once the items are completed, they
must be packaged and stored until they are sold to a customer.

Reliable Suppliers

An efficient supply chain management process requires reliable

suppliers. This means they produce a quality product that meets the
manufacturer’s needs, and the product is delivered on time.

Assume, for example, that XYZ Furniture manufactures high-end

furniture, and that a supplier provides metal handles and other attachments.
The metal components need to be durable so they can be used on the
furniture for years, and the metal parts shipped to XYZ should work as
intended. The supplier must be able to fill the manufacturer’s orders and
ship metal parts to meet XYZ’s production needs. These steps are necessary
to produce a quality product that is shipped to a customer in a timely
manner.

Supply Chain and Deflation

The evolution and increased efficiencies of supply chains have played

a significant role in curbing inflation. As efficiencies in moving products from
A to B increase, the costs in doing so decrease, which lowers the final cost to
the consumer. While deflation is often regarded as a negative, supply chain
efficiencies are one of the few examples where deflation is a good thing.

As globalization continues, supply chain efficiencies become more

optimized, which keeps the pressure on input prices.

Synchronizing Value and Supply

11
  For supply chains to generate maximum value in this dynamic environment,
they must synchronize the flows of supply with the flows of value from
customers in the form of rapidly shifting tastes, preferences, and demand.
 Supply chain and value chain should not be considered different entities
anymore, but, rather, should be integrated.

What’s More

Activity 2: Let’s Chain It!

Instruction: In your Quarter 2 - Module 1 – What’s More, you have been asked to
assess a business enterprise in your community on its 4Ms being used in the
operations. Now, with the same business enterprise identified, assess its value and
supply chain management applied. Used the table provided below.

Primary and Support Activities Description (Write your assessment

in this column)

Inbound Logistics

Operations

Outbound Logistics

Marketing and Sales

Service

12
Procurement

Technological Development

Human Resources Management

Infrastructure

Rubrics for Scoring:

Understanding of the Topic - 20pts
Content of the Answer - 20pts
Coherence of Ideas - 10pts
Total - 50pts

What I Have Learned

Now, let’s try this.

Instruction: Match Column A to Column B by connecting the dots.

Column A Column B

A. business model for creating products

and services
B. help increase a business's efficiency
Value Chain C. main focus is on the cost and
efficiencies of supply
D.main focus is on the flow of materials
from their various sources to their
final destination
Supply Chain E. Inbound logistics, Operations,
Outbound logistics, Marketing and
Sales, Service

13
 F. Procurement, Technological
development, HR Management,
Infrastructure
G.integrative philosophy to manage the
total flow of goods from suppliers to
the ultimate user

What I Can Do

Activity 3: Venturing the Chain!

Instruction: Based on your proposed business venture in the previous activity, lay
down the Value and Supply Chain that you think needed in your business
enterprise by putting a description on the space provided below.

Name of Proposed Business Venture

____________________________________________

Primary and Support Activities Description (Write what you think is

best for your proposed business
venture)

Inbound Logistics

Operations

Outbound Logistics

Marketing and Sales

Service

14
Procurement

Technological Development

Human Resources Management

Infrastructure

Rubrics for Scoring:

Understanding of the Topic - 20pts

Ability to Connect Ideas - 15pts
Content - 15pts
Total - 50pts

Assessment

Good job!

Now, let try this.

Instruction: Choose the correct answer by encircling the letter of your choice on
the following questions.

1. It is a business model that describes the full range of activities needed to create
a product or service.
a. PEST c. Value Chain
b. SWOT d. Value Chain Analysis

2. It includes company systems and the composition of its management team—

such as planning, accounting, finance, and quality control.
a. Procurement c. Human Resource
b. Technological development d. Infrastructure

15
3. Its main focus is on the cost and efficiencies of supply, and the flow of materials
from their various sources to their final destination.
a. Operations Management c. Supply Chain Management
b. Value Chain d. HR Management

4. It include functions like receiving, warehousing, and managing inventory.

a. Inbound Logistics c. Outbound Logistics
b. Operations d. Marketing and Sales
5. It refers to factors that allow a company to produce goods or services better or
more cheaply than its rivals.
a. Value Chain Analysis c. Competitive Advantage
b. Operations Management d. HR Planning

6. It involves hiring and retaining employees who will fulfill the firm's business
strategy and help design, market, and sell the product.
a. Procurement c. Human Resource
b. Technological development d. Infrastructure

7. It includes programs to maintain products and enhance the consumer

experience—like customer service, maintenance, repair, refund, and exchange.
a. Operations c. Inbound Logistics
b. Service d. Marketing and Sales

8. What are the five primary activities of the value chain model?
a. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales,
and Technology Development
b. Inbound logistics, Operations, Outbound Logistics, Marketing and Sales,
and Service
c. Inbound logistics, Operations, Infrastructure, HR Management, and Service
d. Inbound logistics, Procurement, Outbound Logistics, Marketing and Sales,
and Service

9. It include procedures for converting raw materials into a finished product.

a. Operations c. Inbound Logistics
b. Service d. Marketing and Sales

10. It is used at a firm's research and development (R&D) stage—like designing

and developing manufacturing techniques and automating processes.
a. Procurement c. Human Resource
b. Technological development d. Infrastructure

11. What are the supporting activities of the value chain model?
a. Infrastructure of the firm, Human Resource department, Technology
department, Procurement
b. Infrastructure of the firm, Human Resource department, Technology
department, Marketing and Sales
c. Infrastructure of the firm, Service, Technology department, Procurement
d. Inbound logistics, Procurement, Outbound Logistics, Marketing and Sales,
and Service

16
12. It include activities to distribute a final product to a consumer.
a. Service c. Marketing and Sales
b. Operations d. Outbound Logistics

13. It is when a firm's products or services differ from its competitors' offerings
and are seen as superior.
a. Competitive Advantage c. Differential Advantage
b. Comparative Advantage d. Technological Advantage
14. It include strategies to enhance visibility and target appropriate customers—
such as advertising, promotion, and pricing.
a. Service c. Marketing and Sales
b. Operations d. Outbound Logistics

15. It concerns how a company obtains raw materials.

a. Procurement c. Human Resource
b. Technological development d. Infrastructure

Additional Activities

Great! Now, that you have gained understanding on how value and supply chain
works for the business enterprise, the next thing to do is to develop a value and
supply chain management for your proposed business enterprise. Integrate
everything you have planned in your business plan.

17
Answer Key

18
References
Tardi, C. (2020). Value Chain. Retrieved from:
https://www.investopedia.com/terms/v/valuechain.asp
Zucchi, K. (2020). Value Chain Analysis. Retrieved from:
https://www.investopedia.com/articles/investing/111014/basics-value-chain-
analysis.asp
Twin, A. (2020). Competitive Advantage. Retrieved from:
https://www.investopedia.com/terms/c/competitive_advantage.asp

19
 DISCLAIMER

This Self-learning Module (SLM) was developed by DepEd – Division of

General Santos City with the primary objective of preparing for and
addressing the new normal. Contents of this module were based on DepEd’s
Most Essential Learning Competencies (MELC). This is a supplementary
material to be used by all learners in General Santos City in all public
schools beginning SY 2020-2021. The process of LR development was
observed in the production of this module. This is version 1.0. We highly
encourage feedback, comments, and recommendations.

For inquiries or feedback, please write or call:

Department of Education – Division of General Santos City

Learning Resource Management System (LRMS)

Tiongson Street, Brgy. Lagao, General Santos City

Telefax No.: (083) 552-8909

Email Address: depedgensan@deped.gov.ph