11/12

Entrepreneurship
Quarter 2 – Module 3
4Ms of Operations

1
Entrepreneurship – Grade 12
Alternative Delivery Mode
Quarter 2 – Module 3: 4Ms of Operation

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 book 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.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Ronquilio G. Daño, LPT

Editor: Felicilda S. Alipe
Management Team: Bianito A. Dagatan EdD, CESO V
Schools Division Superintendent

Casiana P. Caberte PhD

Assistant Schools Division Superintendent

Felix C. Galacio Jr. PhD

EPS, Mathematics

Josephine D. Eronico PhD

EPS, LRMDS

Printed in the Philippines by Schools Division of Bohol

Department of Education – Region VII, Central Visayas

Office Address: 0050 Lino Chatto Drive Barangay Cogon, Tagbilaran City,
Bohol
Telefax: (038) 501 – 7550
Tel Nos. (038) 412 – 4938; (038) 411-2544; (038) 501 – 7550
E-mail Address: depedbohol@deped.gov.ph

2
 LessLesson 1: Value/Supply Chain

Learning Competencies: Demonstrate understanding of the 4Ms of operations

(TLE_ICTAN11/12EM-Ia-1)

At the end of the lesson, you are expected to:

• discuss the value/supply chain in relation to the business enterprise
• recruit qualified people for one’s business enterprise, and
• develop the business model and forecasts the revenues of the business.

What is it?

SUPPLY CHAIN includes those various firms included in the execution of the
activities needed to produce and transport a product or service to consumers or
industrial users. A supply chain comprises supplies that provide raw materials to a
producer, wholesalers and retailers that distribute finished goods to consumers. The
main goals focus on shared efficiency, optimized transportation and utilization, quality
improvement and long-term stability:
1. Collaborative effort for efficiency
2. Maximized transportation and logistics
3. Quality enhancement
4. Long term stability and relationship

KEY PROCESS OF VALUE/SUPPLY CHAIN MANAGEMENT

1. Customer relationship management – this will allow companies to prioritize

their marketing focus on different customer groups based on each group’s
long term value to the company or supply chain.
2. Customer service management – this is a multi-company, unified system of
responding to customer’s complaints, concerns, questions or comments.
3. Demand management – this process tries to align supply and demand
throughout the supply chain by foreseeing customer requirements.
4. Order-fulfilment – this engages in generating, filling, delivering, and providing
on-the-spot service for customer’s orders.
5. Manufacturing flow management – this ensures that firms in the supply
chain have the necessary resources to produce with flexibility.
6. Supplier relationship management – this provides structural support for
developing and maintaining good relationships especially with highly valued
suppliers in order to gain performance advantages.
7. Product development and commercialization – this facilitates the joint
development and marketing of new products and services among a group of
supply chain partner firms.
8. Returns management – this enables to manage volumes of returned product
efficiently while maximizing related costs.

9.
10. What’s more?

Directions:
Research and prepare a sample value or supply chain from your favorite
fast food business in the country. Follow the graphic organizer below and
use the answer sheet provided.

3
 SUPPLIER MANUFACTURER: CONSUMER:

Example: Marcela Example: McDo Example:

Farms General Public

LessLesson 2: Recruitment

What is it?

RECRUITMENT is the process of convincing or encouraging a prospective

applicant to fill in a vacant position.

STEPS IN RECRUITMENT
1. Study the different company jobs and write its description and
specifications.
• Job description – it defines the duties and responsibilities of a
particular position.
• Job specification – it gives the specific qualifications required
for the position.
2. Requisition of new employee – a formal requisition form is required
indicating the position to be filled, date needed, qualifications and
other requirements needed for an applicant.
3. Actual recruitment of applicant/s
Sources of applicants:
• Internal – employees recruited within the company.
• External – applicants recruited through advertisement,
referrals, and placement agencies.

SELECTION is the process through which organizations identify and make

decisions about the applicants who will be allowed to join the company.

STEPS IN SELECTION
1. Reception in selection – it involves screening of applicants by which
applicants are interviewed.
2. Preliminary interview – the purpose of preliminary interview is to
check if an applicant is qualified for the position and eliminate those
applicants who are disqualified.
3. Filling out of application form – this serves as a guide in interviewing
the applicant to determine if the applicant matches the job
requirements.
4. Employment test – this is given to measure applicant’s abilities needed
for the job.
5. Final interview by immediate supervisor – to determine who among the
applicants should be hired and fitted for the job.
6. Physical & medical examination
• Medical examination – this is to determine if the applicant is fit
to work.
• Pre-employment test – this is to obtain important information
of the applicant in terms of work performance.

4
 7. Hiring – The applicant who passed the selection requirements is sent
to the Human Resource Department for final completion of the hiring
process.
8. Orientation – The new employees are oriented on company policies,
rules, and regulations and informed or directed about his job.

TRAINING/RETRAINING – new applicant is required to undergo training

to help him perform his job efficiently. Retraining is required to those who need
enhancement.

COMPENSATION – this contains compensation of the personnel based

on their qualifications and the usual standard in determining wage rates is
matching them with the industry standards.

ESTABLISHING THE PAY STRUCTURE – this means establishing pay

rates or ranges compatible with ranks or points at through job evaluation.

ORGANIZATIONAL POLICIES – this explains the personnel policies that

should be implemented in the workplace.

COMPANY MANUAL – this serves as an important communication tool

between an employee and employer.

COMPANY CODE OF DISCIPLINE – this is the rules and regulations to

achieve total efficiency and harmonious relationship.

What’s more?

Directions:
What would be the job description and specification to recruit qualified
applicant/s for a store manager position? Follow the graphic organizer
below and use the answer sheet provided.

Example:

JANITOR

JOB DESCRIPTION: JOB SPECIFICATION:

In charge in sanitation and At least high school graduate

cleanliness of the workplace

5
 LessLesson 3: Business Model and Revenues

What is it?

BUSINESS MODEL
• This describes how the business will generate revenue and support financial
projections.
• This will greatly help in describing the importance of the business in gaining
profit and sales.
• This describes the means and methods a firm employs to earn revenue
projected in its plans.

CHARACTERISTICS OF A STRONG BUSINESS MODEL

1. Identify the specific audience – this is to outline each persona’s demographics,
common challenges and the solutions your company will offer.
2. Establish business process – this is to understand the activities required to
make business model work.
3. Record key business resources – this is to document essential business
resources to ensure the business model is adequately prepared to sustain the
needs of the business.
4. Develop a strong value proposition – this is to build strong standing out among
the competitors.
5. Determine key business partners – this is to determine the key partners that
can contribute to the business’s ability to serve customers.
6. Create a demand generation strategy – this is to create strategy that builds
interest in your business, generate leads and designed close to sales.
7. Leave room for innovation – this is to give room for changes.

HOW TO FORECAST REVENUE AND GROWTH

Forecasting is calculating or predicting usually as a result of study and analysis
of available pertinent data.
Revenue is the total income produced by a given source, a property expected to
yield large annual revenue, the gross income returned by an investment.
Growth is a stage in the process of growing; it it’s a result of growth, a
producing especially by growing. It is anticipated progressive growth especially in
capital value and income.
Revenue forecasts are useful both for start-ups and existing businesses. Here is
how to prepare:
1. The preparation for projected sales is the first thing to be done in making
revenue forecasts of the business operation.
2. After the projected sales is determined, the business operation can forecast
the revenues using the formula:
Revenue Forecast = Projected Sales – Total Expenses
For example:
JENNY Manufacturing Company sold 23, 430 units of product AM in 2018
which was higher by 10% compared to the units sold in 2017. The products were sold
at P300 per unit. Due to heavy advertising and other promotional activities and shift
in buyer’s preferences, the company expects to increase the sales 15% in 2019 against
the 2018 performance. The company plans to sell the product at P350 per unit.
Moreover, the company has already projected the total expenses amounting to
500,000.00.

6
Required: Prepare the revenue forecast of Jenny Manufacturing Company in 2019.
Answer:
1. The projected sales of JENNY Manufacturing Company for 2019 appears as
follows:
JENNY Manufacturing Company
Sales Budget
For year 2019

Selling Units Estimated Price Sales

Projected sales (23,430 X .15) 26,945 P350 P9, 430,750
It is emphasized that the budgeted peso amounts are not expressed in exact
figures but rounded to thousands.

2. Revenue Forecast = Projected Sales – Total Expenses

= 9, 430, 750 – 500,000.00
= 8,930,750.00

What’s more?

Directions:
A. Develop a business model from the given product through what the
means and methods on how to earn revenue or income. Follow the
graphic organizer below and use the answer sheet provided.

5 MEANS & METHODS TO

EARN REVENUE:
Product: Example: Market the product
GRILLED SEA FOODS through advertising

B. Prepare the revenue forecast of ANGLE Trading Company in 2019.

(10 pts.)

ANGEL Trading Company sold 25, 450 units of product in 2018

which was higher by 15% compared to the units sold in 2017. The
product was sold at P400 per unit. The company expects to increase the
sales 25% in 2019 against the 2018 performance, because of the efforts
rendered by the marketing department of the company. The company is
planning to sell the product at P500 per unit. Moreover, the company
has already projected the total expenses for 2019 amounting to 1,
000,000.00.

7
 Assessment
Directions: Read each item carefully and write the letter of your choice on your
answer sheet.

1. This includes those various firms included in the execution of the activities
needed to produce and transport a product or service to consumers or
industrial users
A. supply chain C. supply and demand chain
B. chain of command D. demand chain
2. This will allow companies to prioritize their marketing focus on different
customer groups based on each group’s long term value to the company or
supply chain.
A. returns management C. demand management
B. customer relationship management D. order-fulfilment
3. This enables firms to manage volumes of returned product efficiently while
minimizing related costs.
A. order-fulfillment C. returns management
B. demand management D. customer relationship management
4. This is defined as the duties and responsibilities of a particular position.
A. job description C. job vacancy
B. job specification D. job agency
5. This gives a specific qualifications required for the position.
A. job agency C. job specification
B. job description D. job vacancy
6. This refers to the employee/s recruited within the company.
A. internal C. external
B. outsource D. insource
7. This refers to an applicant/s recruited within through advertisement,
referrals, and placement.
A. insource C. outsource
B. external D. internal
8. This refers to the process through which organizations identify and make
decisions about the applicants who will be allowed to join the company.
A. recruitment C. selection
B. compensation D. training & retraining
9. This describes how the business will generate revenue and support financial
projections.
A. business plan C. business venture
B. business model D. business idea
10. This refers to the total income produced by a given source.
A. revenue C. expenses
B. cost D. expenditure

8
 Answer Sheet

Name: __________________________________________________________
Grade & Section: ________________ Score: _______

Quarter 2 – Module 3

Lesson 1
What’s more?

SUPPLIER MANUFACTURER CONSUMER

Lesson 2
What’s more?

STORE MANAGER

JOB DESCRIPTION: JOB SPECIFICATION:

9
Lesson 3
What’s more?

A.

5 MEANS & METHODS TO

EARN REVENUE:

1.
2.
Product: 3.
GRILLED SEA FOODS 4.
5.

B.

Assessment
1. 2. 3. 4. 5. 6. 7.

8. 9. 10.

References

Dr. Marife Agustin-Acierto (2017). Entrepreneurship. Room 215 ICP Building,

CabildoSt., Intramuros Manila: Unlimited Books Library Services and Publishing, Inc.

10