ENTREPRENEURSHIP

Prepared by:

JENNY CARLA A. DOMER

PART 1: The Development of
the Business Plan
– PLANNING THE ENTERPRISE
– OPPORTUNITY SEEKING, SCREENING, AND
SEIZING
– GETTING TO KNOW THE MARKET
– LET THE MARKET KNOW YOU BETTER
– THE RIGHT PRODUCT FOR THE RIGHT MARKET
 CHAPTER 1

PLANNING THE
ENTERPRISE
WHAT IS A BUSINESS
PLAN FOR?
– FEASIBILITY STUDY
– CONVINCE PROSPECTIVE BUSINESS
INVESTORS
– GUIDE THE ENTREPRENEUR
– HIGHER LEVEL OF GROWTH
 BUSINESS PLAN FORMAT

I. INTRODUCTION
A. THE BUSINESS CONCEPT AND BUSINESS MODEL
B. THE BUSINESS GOALS: VISION, MISSION, OBJECTIVES, AND PERFROMANCE TARGETS
C. THE BUSINESS OFFERING AND JUSTIFICATION
II. EXECUTIVE SUMMARY
III. THE BUSINESS PROPONENTS: ORGANIZERS WITH THEIR CAPABILITIES AND CONTRIBUTIONS
IV. THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION TO THE CUSTOMER
V. THE MARKET
VI. THE PRODUCT AND SERVICE OFFERING
VII. THE ENTERPRISE STRATEGY AND DELIVERY SYSTEMS: BUSINESS COMPETETIVENESS
VIII.THE FINANCIAL FORECASTS AND EXPECTED RETURNS, RISKS, AND CONTINGENCIES
IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE
X. THE CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS AND BENEFITS TO
INVESTORS, FINANCIERS, AND BUSINESS PARTNERS
 CONTENTS OF A BUSINESS PLAN
I. A. THE BUSINESS CONCEPT AND THE BUSINESS MODEL

BUSINESS CONCEPT – PRODUCT OFFERING TO THE CUSTOMERS

BUSINESS MODEL – FORMULA ON HOW THE ENTERPRISE EXACTLY PLANS TO
MAKE MONEY OUT OF THE BUSINESS
4 AREAS:
1. HOW WILL THE BUSINESS RAISE REVENUES? CRITICAL FACTORS FOR THE
REVENUES TO MATERIALIZE?
2. COSTS OF THE PRODUCTS AND OTHER COSTS? HOW TO MANAGE THESE
COSTS?
3. MAJOR INVESTMENTS? WHY WILL THESE INVESTMENTS GIVE THE
ENTERPRISE A COMPETITIVE EDGE?
4. HOW WILL THE ENTERPRISE FINANCE THE INVESTMENTS? HOW TO FUND ITS
GROWTH?
 CONTENTS OF A BUSINESS PLAN
I. B. THE BUSINESS GOALS: VISION MISSION, OBJECTIVES, &
PERFORMANCE TARGETS
BUSINESS GOALS – SHOW THE FUTURE AND LONG-TERM PROSPECTS
OF THE ENTERPRISE.
EXAMPLE: DOUBLE HAPPINESS FOOD CHAIN
VISION - “to establish a commanding presence and market leadership as a food chain
servicing major bus terminals in central luzon within the next five years”
MISSION – “to provide quality food and passenger convenience services that would
generate sufficient profits for the stockholders and improve the lives of its employees”
OBJECTIVES – specific; measurable, achievable, reliable, time-bound
1. to establish a strong market presence in Central Luzon;
2. to earn good financial returns for its owners;
3. to delight customers with high quality food and services; and
4. to make Double Happiness a happy and rewarding place to work in.
 Objectives should be translated into KEY RESULT AREAS. KRA’s are
the qualitative manifestations that the objectives are being achieved.
OBJECTIVES KEY RESULT AREAS Performance
Indicators
1. To establish a strong 1a. Number of food outlets in major bus terminals in Central 2018 2019 2024
market presence in central Luzon
luzon 1b. Sales volume attained
1c. Market share in Central Luzon
2. To earn good financial 2a. Amount of net profits realized for the next 5 years
returns for its owners 2b. ROE, ROA, ROI, ROS
3. To delight customers with 3a. Growth in sales per outlet
high quality food and sevices 3b. Percentage of repeat customers
3c. Number of customers commendations and complaints
3d. Awards and recognition for excellent service
3e. Customer survey rating

4. To make Double Happiness 4a. Compensation and benefits of managers and workers
a happy and rewarding place are above industry rates
to work in 4b. Management and employee turnover
4c. Number of job applicants
 CONTENTS OF A BUSINESS PLAN
II. THE EXECUTIVE SUMMARY

– CONTAINS EVERYTHING THAT IS RELEVANT AND IMPORTANT TO THE BUSINESS

AUDIENCE
– SYNTHESIS OF THE ENTIRE PLAN; CONTAINS THE MAJOR ARGUMENTS ON WHY THE
BUSINESS WILL WORK AND SUCCEED.
– SHOULD INTRODUCE AND HIGHLIGHT THE GOOD QUALITIES OF THE BUSINESS
PROPONENTS, THE ENTERPRISE ORGANIZATION AND ITS CAPABILITIES, AND THE
SERVICE PROVIDERS
– DESCRIBE THE PRODUCTS/SERVICES, FEATURES AND ATTRIBUTES
– JUSTIFY THE ENTERPRISE STRATEGY AND DELIVERY SYSTEM
– INVESTMENT REQUIREMENTS, PROJECTED FINANCIAL STATEMENTS AND THEIR
ANALYSIS; YIELDS AND RETURNS ALONG WITH RISKS AND CONTINGENCY MEASURES
– ENVIRONMENTAL AND REGULATORY COMPLIANCE, PROACTIVE PROGRAMS
– CAPITAL STRUCTURE
 CONTENTS OF A BUSINESS PLAN
III. THE BUSINESS PROPONENTS
– 4 TYPES OF STAKEHOLDERS:
RESOURCE MOBILIZERS AND FINANCIAL BACKERS – raising
money
TECHNOLOGY PROVIDERS AND APPLICATORS – sufficient
technology funds
GOVERNANCE AND TOP MANAGEMENT – strategies and
performance
OPERATING AND SUPPORT TEAM – programs, activities,
tasks, and resources
 CONTENTS OF A BUSINESS PLAN
IV. THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION

1. TARGET CUSTOMERS MUST BE SUFFICIENT IN SIZE, SUFFICIENT PAYING

CAPACITY, AND SUFFICICENT INTEREST TO PURCHASE THE
PRODUCTS/SERVICES

2. THE MAIN VALUE PROPOSITION IS THE UNIQUE SELLING PROPOSITION

THE BUSINESS PLAN SHOULD POINT OUT WHAT THE CUSTOMERS BUY,
HOW THEY BUY, WHEN THEY BUY, WHERE THEY BUY, AND WHAT CONVINCES
THEM TO BUY.
 CONTENTS OF A BUSINESS PLAN
V. MARKET DEMAND & SUPPLY, INDUSTRY DYNAMICS, & MACRO
ENVIRONMENTAL FACTORS
– ESTIMATE THE TOTAL MARKET SUPPLY AND DEMAND FOR THE
PRODUCT/SERVICE; DETERMINE THE MAJOR CRITICAL FACTORS
AFFECTING THE DEMAND AND SUPPLY; FORECAST THE DEMAND AND
SUPPLY
– INDUSTRY DYNAMICS:
1. WHO ARE THE COMPETING ENTERPRISES? THEIR ADVANTAGES AND
DISADVANTAGES? THEIR BUSINESS MODELS AND STRATEGIES?
2. WHO ARE THE SUPPLIERS AND THEIR CAPABILITIES?
3. WHAT ARE THE CHANNELS OF DISTRIBUTION AND ITS EFFECTIVITY?
 CONTENTS OF A BUSINESS PLAN
V. MARKET DEMAND & SUPPLY, INDUSTRY DYNAMICS, & MACRO
ENVIRONMENTAL FACTORS

– MACRO ENVIRONEMNT INCLUDES THE SOCIAL, POLITICAL, ECONOMIC,

ECOLOGICAL, AND TECHNOLOGICAL (SPEET) FORCES.

– THE BUSINESS PLAN MUST DISCUSS THE MAJOR TRENDS AND

CHANGING PATTERNS IN THE MACRO-ENVIRONMENT WHICH WOULD
HAVE SIGNIFICANT IMPACTS ON THE INDUSTRY AND BEHAVIOR OF
CONSUMERS.
 CONTENTS OF A BUSINESS PLAN
VI. PRODUCT/SERVICE OFFERING: DESCRIPTION, EVOLUTION,
& JUSTIFICATION

– CONTAINS THE DESCRIPTION, EVOLUTION, AND JUSTIFICATION OF THE

PRODUCT/SERVICE OFFERINGS.

– HIGHLIGHT THE FEATURES AND ATTRIBUTES THAT WOULD MOST

APPEAL TO THE TARGET CUSTOMERS.

– SHOULD PROVE THAT THE PRODUCT/SRVICE WOULD BE ACCEPTED

AND CARRIED BY THE DISTRIBUTION CHANNELS.
 CONTENTS OF A BUSINESS PLAN
VII. ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM

– STRATEGY: MAPPING THE COMPETITIVE LANDSCAPE AND SITUATING THE

ENTERPRISE AND ITS COMPETITORS AS TO THEIR STRATEGIES AND CHOSEN
POSITIONINGS.
– DELIVERY SYSTEM: HOW WOULD IT ENABLE THE BUSINESS TO IMPLEMENT THE
STRATEGY
STARTS FROM THE INPUT (resources mobilized), PROCEEDS TO THE
THROUGHPUT (transformation process where input is converted into output), AND
PRODUCES THE OUTPUT (products or services)
THE OUTPUT ARE THEN MARKETED OR EXPERIENCED BY THE CUSTOMERS.
THE CUSTOMER SATISFACTION LEVEL, PROFITS GENERATED, AND THE PERFORMANCE
OF THE PEOPLE FROM THE TRANSACTION ARE THE OUTCOMES OF THE EDS.
 THE ENTERPRISE DELIVERY SYSTEM
INPUT THROUGHPUT OUTPUT MARKETING DESIRED
OUTCOMES
1. HARNESSING OF 1. CONVERSION OF 1. GOODS 1. POSITONING 1. CUSTOMER
HUMAN, INPUT INTO OUTPUT PRODUCED OR 2. PRODUCT SATISFIED
MONEY, AND AND THE SERVICES 3. PACKAGING 2. SALES VOLUME
PHYSICAL TRANSFORMATION DELIVERED 4. PLACE ATTAINED
RESOURCES PROCESS WITHIN 5. PEOPLE 3. PROFITS
THE FACTORY OR 6. PROMOTION GENERATED
2. RESOURCES SEVICE SHOP 7. PRICE 4. PEOPLE
MOBILIZED PERFROMANCE
- MONEY
- MEN
- MACHINES
- MATERIALS
- METHODS
- MANAGEMENT
 CONTENTS OF A BUSINESS PLAN
VIII. FINANCIAL FORECASTS: EXPECTED RETURNS, RISKS, &
CONTINGENCIES
– CALCULATE THE EXPECTED RETURNS FROM THE BUSINESS:
1. EXPECTED RETURNS ON SALES
2. EXPECTED RETURNS ON ASSETS OR INVESTMENTS
3. EXPECTED RETURN ON STOCKHOLDER’S EQUITY
– CALCULATE THE LONG-TERM RETURNS USING THE TIME
VALUE OF MONEY
– EVALUATE BOTH THE BUSINESS RISKS AND FINANCIAL
RISKS
 CONTENTS OF A BUSINESS PLAN
IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE

– THE BUSINESS PLAN MUST ARTICULATE THE LAWS, RULES,

AND REGULATIONS GOVERNING THE BUSINESS, AND THE
INDUSTRY THAT THE ENTERPRISE IS IN
– ASCERTAIN THAT ALL THE NECESSARY PERMITS, LICENSES,
AND AUTHORITY TO USE PROPRIETARY INTELLECTUAL CAPITAL
HAD BEEN SECURED
– FOLLOWED ALL THE NECESSARY LOCAL GOVERNMENT
ORDINANCES AND BARANGAY ETHICS
 CONTENTS OF A BUSINESS PLAN
X. CAPITAL STRUCTURE AND FINANCIAL OFFERING
– DISUSS WHO THE INVESTORS ARE, THE FINANCIERS, AND THE
PARTNERS OF THE ENTERPRISE

– THE BUSINESS PLAN MUST APPEAL TO ITS TARGET AUDIENCE; IT MUST

HIGHLIGHT THE MAIN FEATURES OF THE BUSINESS PLAN THAT THEY
ARE LOOKING FOR.

– DISCUSS THE RETURNS AND BENEFIT TO INVESTORS, FINANCIERS, AND

PARTNERS
 CHAPTER 2

OPPORTUNITY
SEEKING, SCREENING,
AND SEIZING
OPPORTUNITY SEEKING
– ENTREPRENEURS ARE INNOVATIVE OPPORTUNITY SEEKERS.
– ENTREPRENEURS HAVE ENDLESS CURIOSITY TO DISCOVER NEW OR
DIFFERENT IDEAS AND SEE WHETHER THESE IDEAS WILL WORK IN
THE MARKETPLACE.
– THEY CREATE VALUE BY INTRODUCING NEW PRODUCTS OR
SERVICES OR FINDING BETTER WAYS OF MAKING THEM.
– AT THE HIGHEST LEVEL, ENTREPRENEURS MAY TOTALLY CHANGE
THE PREVAILING BUSINESS PARADIGM BY RENDERING IT
OBSOLETE THROUGH THE INTRODUCTION OF DISRUPTIVE
TECHNOLOGIES, PROCESSES, AND SYSTEMS.
ENTREPRENEURIAL MIND FRAME,
HEART FLAME, AND GUT GAME
ENTREPRENEURIAL MIND FRAME
- TO SEE THINGS IN AN OPTIMISTIC LIGHT IN THE MIDST OF CRISIS; USE
THIS SITUATION AS INSPIRATION IN CREATING SOMETHING INNOVATIVE

ENTREPRENEURIAL HEART FLAME

- THE PASSION IN FINDING FULFILLMENT IN THE ACT AND PROCESS OF
DISCOVERY; THE GREAT DESIRE TO ATTAIN A VISION AND FULFILL A MISSION;
EMOTIONAL INTELLIGENCE, MANIFESTED IN THE ENTREPRENEUR’S EFFORTS
TO NURTURE RELATIONSHIPS WITH CUSTOMERS, EMPLOYEES, AND SUPPLIERS
ENTREPRENEURIAL MIND FRAME,
HEART FLAME, AND GUT GAME
ENTREPRENEURIAL GUT GAME (INTUITION)

- THE ABILITY TO SENSE WITHOUT USING THE FIVE SENSES;

ALSO RELATED TO TAKING RISKS COURAGEOUSLY
- CONFIDENCE IN ONE’S SELF AND THE FIRM BELIEF THAT
EVERYTHING IS WITHIN REACH SO LONG AS YOU CAN ASPIRE FOR
IT.
 MACRO ENVIRONMENTAL
SOURCES OF OPPORTUNITIES
– MACRO ENVIRONMENT REFERS TO THE “BIG FORCES” THAT AFFECT
THE AREA, THE INDUSTRY, AND THE MARKET; IT INFLUENCE HOW
BUSINESS SHOULD BE CONDUCTED, HOW CONSUMERS WILL
BEHAVE, HOW SUPPLY AND DEMAND WILL MOVE, HOW
COMPETITORS WOULD POSITION THEMSELVES, AND HOW THE COST
OF DOING BUSINESS WILL PROCEED.

– FIVE CATEGORIES: SOCIAL, POLITICAL, ECONOMIC, ECOLOGICAL,

AND TECHNOLOGICAL DIMENSIONS (SPEET)
 INDUSTRY SOURCES OF
OPPORTUNITIES
– PARTICIPANTS IN THE INDUSTRY INCLUDE:
– RIVALS OR COMPETITORS
– SUPPLIERS OF INPUT
– CONSUMER MARKET SEGMENTS
– SUBSTITUTE PRODUCTS OR SERVICES

– A THOROUGH ANALYSIS OF INDUSTRY STRUCTURE AND

DYNAMICS YIELDS OPPORTUNITIES FOR THE CLEVER
ENTREPRENEUR.
 MARKET SOURCES OF
OPPORTUNITIES
– CAN BE DISCOVERED FROM INCREASED OR DECREASED
DEMAND AS WELL AS HIGHER OR LOWER SUPPLY

THE ENTREPRENEUR MUST ALSO BE ABLE TO MEASURE THE:

– DEMAND AND SUPPLY OF THE INDUSTRY
– PRODUCT SUBSTITUTES
– MARKET TREND ANALYSIS
– MARKET TRAITS, CHARACTERISTICS, AND BEHAVIOR
 CONSUMER PREFERENCES,
PIQUES, & PERCEPETIONS
– CONSUMER PREFERENCE REFERS TOT EH TASTES
OF PARTICULAR GROUPS OF PEOPLE

– THERE ARE TIMES WHEN THE PRODUCT IS NOT

CHANGED BY THE ENTERPRISE BUT WHAT
CHANGES IS THE WAY CONSUMERS PERCEIVE THE
PRODUCT. THIS IS CONSUMER PERCEPTION
 OTHER SOURCES OF
OPPORTUNITIES
– UNEXPECTED SUCCESSES OR FAILURES CAN LEAD TO GOOD
OPPORTUNITIES.

– ANOTHER POTENTIAL SOURCE OF OPPORTUNITY IS THE

ENTREPERENEUR’S OWN SET OF SKILLS OR EXPERTISE OR
HOBBY.

– NEW KNOWLEDGE AND NEW TECHNOLOGY

OPPORTUNITY SCREENING

– A SHORT LIST OF A FEW VERY

PROMISING OPPORTUNITIES, WHICH
SHOULD BE SCRUTINIZED IN DETAIL
 THE PERSONAL SCREEN
– DO I HAVE THE DRIVE TO PURSUE THIS BUSINESS
OPPORTUNITY TO THE END?
– WILL I SPEND ALL MY TIME, EFFORT, AND MONEY TO MAKE
THE BUSINESS OPPORTUNITY WORK?
– WILL I SACRIFICE MY EXISTING LIFESTYLE, ENDURE
EMOTIONAL HARDSHIP, AND FOREGO MY USUAL
COMFORTS TO SUCCEED IN THIS BUSINESS OPPORTUNITY?
 THE 12 R’S OF OPPORTUNITY
SCREENING
1. RELEVANCE TO MISION, VISION, AND OBJECTIVES OF
THE ENTREPRENEUR
2. RESONANCE TO VALUES
3. REINFORCEMENT OF ENTREPRENEURIAL INTERESTS
4. REVENUES
5. RESPONSIVENESS TO CUSTOMER NEEDS AND WANTS
6. REACH
 THE 12 R’S OF OPPORTUNITY
SCREENING
7. RANGE
8. REVOLUTIONARY IMPACT
9. RETURNS
10.RELATIVE EASE OF IMPLEMENTATION
11.RESOURCES REQUIRED
12.RISKS
 TARGET
CUSTOMERS
AND THE MAIN
VALUE
PROPOSITION
“In its simplest terms, a value proposition is a
positioning statement that explains what benefit
you provide for who and how you do it uniquely
well. It describes your target buyer, the pain point
you solve, and why you’re distinctly better than the
alternatives.”- Michael Skok
The key term in this definition is “uniquely.” A
compelling value proposition is designed to convey how
the brand stands apart from its competition, and why
your target audience should choose it over the rest.
The value proposition is usually a block of text (a headline, sub-
headline and one paragraph of text) with a visual (photo, hero
shot, graphics).
– Headline. What is the end-benefit you’re offering, in 1 short
sentence. Can mention the product and/or the customer.
Attention grabber.
– Sub-headline or a 2-3 sentence paragraph. A specific
explanation of what you do/offer, for whom and why is it useful.
– 3 bullet points. List the key benefits or features.
– Visual. Images communicate much faster than words. Show the
product, the hero shot or an image reinforcing your main
message .
Evaluate your current value proposition by checking
whether it answers the questions below:
–What product or service is your company selling?
–What is the end-benefit of using it?
–Who is your target customer for this product or
service?
–What makes your offering unique and different?
–Use the headline-paragraph-bullets-visual
formula to structure the answers.
Some questions you’ll want to ask yourself
include…
Product Customer
– What does your product – What are the emotional drivers of
do? purchasing?
– What does it fell like to use – What are the hidden needs?
your product? – What are the rational drivers of
– How does your product purchasing?
work? – What are the risks of switching to
your product?
– What features does it have?
– What do people currently do
instead?
How to create a winning value proposition?
The best value proposition is clear: what is it, for whom
and how is it useful? If those questions are answered,
you’re on the right path. Always strive for clarity first.
If your value proposition makes people go “hmph?”,
you’re doing it wrong. If they have to read a lot of text to
understand your offering, you’re doing it wrong. Yes,
sufficient amount of information is crucial for
conversions, but you need to draw them in with a clear,
compelling value proposition first.
What makes a good value proposition:
• Clarity! It’s easy to understand.
• It communicates the concrete results a customer will
get from purchasing and using your products and/or
services.
• It says how it’s different or better than the competitor’s
offer.
• It avoids hype (like ‘never seen before amazing miracle
product’), superlatives (‘best’) and business jargon
(‘value-added interactions’).
• It can be read and understood in about 5 seconds.
Comments
 Very clear what it is and for whom
 Specific lead paragraph
 Key features outlined above the fold
 A relevant image
 Features a booster – “100%
rebrandable”
Comments
 It’s clear what it is and for whom
 Specific benefit oriented sub-
headline
 Relevant visuals
 Smooth transition into features and
benefits
Comments
 Clear statement about
what it is and for whom
 List of benefits
 Relevant image
Comments
 A different kind of layout, but well done. It tells a story of ‘what’
and ‘how’
 Easy to follow.
 Key features / benefits listed along with relevant imagery
‘Remember everything’ is a good slogan, but I’d add a specific
sub-headline underneath it for improved clarity
Product: App for organizing.
Target market: Busy individuals and professionals.
Primary benefit: Easy and integrated task management.
What makes it unique? The ability to organize your notes all
in one place so you never forget a great idea.
 Skillshare: “Learn a New Skill Each
Day”

Product: Online classes and lessons.

Target market: Entrepreneurs and creative minds.
Primary benefit: The ability to learn via bite-sized lessons.
What makes it unique? The focus on quick, on-demand learning.
 Target: “Expect More, Pay Less”

Product: Thousands of SKUs across many industries.

Target market: Cost-conscious shoppers who expect quality.
Primary benefit: Quality products at prices that are lower than the
competition.
What makes it unique? You don’t have to compromise on price or quality;
you can get both.
 THE PRE-FEASIBILITY
STUDY
AFTER NARROWING DOWN THE MANY
OPPORTUNITIES INTO ONE OR TWO MOST ATTRACTIVE
ONES, THE NEXT STEP IS TO CONDUCT A PRE-
FEASIBILITY STUDY TO ASCERTAIN THE VIABILITY OF
THE OPPORTUNITY BY FOCUSING ON A FEW KEY ITEMS
THAT COULD MAKE OR BREAK THE BUSINESS CONCEPT.
THE INDUSTRY DYNAMICS
THE BUSINESS PLAN SHOULD DISCUSS THE RELEVANT INDUSTRY DYNAMICS
– WHO ARE THE COMPETING ENTERPRISES IN THE INDUSTRY
AND WHAT ARE THEIR COMPARATIVE ADVANTAGES AND
DISADVANTAGES? WHAT BUSINESS MODELS AND STRATEGIES
ARE THEY EMPLOYING?
– WHO ARE THE SUPPLIERS IN THE INDUSTRY AND WHAT ARE
THEIR CAPABILITIES AND BARGAINING POWER?
– WHAT ARE THE CHANNELS OF DISTRIBUTION BEING USED BY
THE INDUSTRY? HOW EFFECTIVE ARE THESE CHANNELS?
MACRO ENVIRONMENTAL SOURCES OF
OPPORTUNITIES
SOCIO-CULTURAL ENVIRONMENT – DEMOGRAPHICS AND CULTURAL DIMENSIONS; HELPS
THE ENTREPRENEUR TO ASSESS THE TRENDS OF CONSUMER POPULATION, THEIR BELIEFS,
TASTES, CUSTOMS, & TRADITIONS
POLITICAL ENVIRONMENT – LAWS, RULES, AND REGULATIONS THAT GOVERN BUSINESS
PRACTICES; REGULATES THE USE OF NATURAL RESOURCES, DISPOSAL OF WASTES,
TAXATION, ETC.
ECONOMIC ENVIRONMENT – SUPPLY AND DEMAND FORCES; INCOME LEVEL AND
PURCHASING POWER OF THE CONSUMERS
ECOLOGICAL ENVIRONMENT – NATURAL RESOURCES AND THE ECOSYSTEM
TECHNOLOGICAL ENVIRONMENT – NEW SCIENTIFIC AND TECHNOLOGICAL DISCOVERIES
WHICH LAUNCH COMMERCIALIZATION OF NEW PRODUCTS WITH SUPERIOR ATTRIBUTES
OR RENDERING THE OLD ONES OBSOLETE.
 RELEVANT OPPORTUNITIES AND
THREATS TO A FAST FOOD CHAIN
FACTORS OPPORTUNITIES THREATS
SOCIAL -INCREASED CUSTOMER
-INCREASING DOUBLE BASE
INCOME EARNERS IN THE -MORE HEALTHY
FAMILY PRODUCT OFFERINGS
-TREND TOWARD HEALTHIER
FOOD CHOICES
POLITICAL -INCREASED
-TAX EXEMPTION FOR 13TH PURCHASING POWER OF
MONTH PAY AND OTHER THE CONSUMERS
BONUSES
 FACTORS OPPORTUNITIES THREATS
ECONOMIC -OPPORTUNITY TO EXPAND -SMALLER SUPPLIERS’
-ASEAN INTEGRATION TO OTHER ASEAN DIFFICULTY COPING WITH
(ZERO TARIFF) MARKETS GREATER COMPETITION
POSED BY FOREIGN RIVALS
ECOLOGICAL -OPPORTUNITY TO START -ADDITIONAL COSTS
-INCREASED USAGE OF ECO AN ADVOCACY TOWARD A INCURRED BY NEW
BAGS AND ENVIRONMENT- GREENER OPERATION PACKAGING MAY
FRIENDLY CONTAINERS DECREASE PROFITABILITY
TECHNOLOGICAL -GREATER USAGE OF APPS -POTENTIAL FOR ONLINE
-INCREASED USAGE OF TO PLACE DELIVERY CUSTOMER
SMARTPHONES FOR ORDERS VIA DISAPPOINTMENTS AND
INFORMATION SMARTPHONES MAY HELP NETIZEN BASHING DUE TO
DISSEMINATION INCREASE MARKET REACH POOR PRODUCT/SERVICE
DELIVERY CAUSE BY
TECHNICAL GLITCHES
 THE PRE-FEASIBILITY
STUDY
– MARKET POTENTIAL AND PROSPECTS
 BASED ON THE ESTIMATED NUMBER OF POSSIBLE
CUSTOMERS WHO MIGHT AVAIL OF THE PRODUCT OR
SERVICE.
 MARKET ESTIMATION & SEGMENTING THROUGH THE
USE OF DEMOGRAPHICS (INCOME, AGE, GENDER,
LEVEL OF EDUCATION, LOCATIONAL PROXIMITY)
 THE PRE-FEASIBILITY
STUDY
– MARKET POTENTIAL AND PROSPECTS
 ASSESSING COMPETITION
 ESTIMATING MARKET SALES AND SHARE
THE MOST IMPORTANT TASK IS TO QUANTIFY THE MARKET
POTENTIAL IN A SYSTEMATIC WAY. THE ENTREPRENEUR
SHOULD EVALUATE THE RELATIVE STRENGTH OF THE VARIOUS
SUPPLIERS OR COMPETITORS IN THE MARKET PLACE, THEN
DETERMINE WHAT SLICE OR SHARE OF THE TARGETED
MARKET SEGMENT.
 MARKET RESEARCH
BASIC QUESTIONS IN MARKET RESEARCH
WHY PURPOSE AND OBJECTIVE FOR CONDUCTING THE MARKET RESEARCH
WHAT DETERMINES THE SCOPE AND THE LIMITATIONS OF THE MARKET
RESEARCH TO BE CONDUCTED
WHICH DETERMINES WHICH SEGMENT OF THE MARKET MUST BE STUDIED
WHO IDENTIFIES WHO AMONG THE MEMBERS OF THE SELECTED MARKET
SEGMENT WILL PARTICIPATE IN THE MARKET RESEARCH
WHEN DETERMINES THE TIME AND TIMING OF THE RESEARCH
WHERE PINPOINTS THE RELEVANT LOCATION OF THE MARKET RESEARCH
HOW DETERMINES THE METHODOLOGY TO BE USED FOR THE MARKET
RESEARCH
 MARKET RESEARCH METHODOLOGIES
 SALES DATA MINING – OBSERVING SALES IN A PERIOD OF TIME, ARRAYING AND
CLASSIFYING THE DATA IN AN ORGANIZED MANNER
 FOCUSED GROUP DISCUSSION – EXTRACTING CONSUMER AND NON-
CONSUMER EXPERIENCES REGARDING PRODUCTS, PLACES, OR PROGRAMS;
ALSO USED FOR GENERATING INSIGHTS; AN INTERVIEW BY A FACILITATOR OF A
SMALL GROUP OF PEOPLE
 OBSERVATION TECHNIQUE – OBSERVE PEOPLE AS THEY GO ABOUT THEIR
USUAL ACTIVITY SUCH AS BUYING AND USING PRODUCTS ANS SERVICES AND
ASSESS HOW THEY BEHAVE.
 SURVEY RESEARCH – MOST PREFERRED INSTRUMENT FOR IN-DEPTH
QUANTITATIVE RESEARCH; RESPONDENTS ARE ASKED A VARIETY OF QUESTIONS
IN A FORM OF PERSONAL (FACE-TO-FACE INTERVIEW), OR MAIL INTERVIEW.]
 THE PRODUCT AND SERVICE
OFFERINGS
NEW PRODUCT DEVELOPMENT SPRING FROM THE CONVERGENCE OF:
1. CREATIVE MIND – CONCEPTUALIZES AND DESIGNS A PRODUCT THAT
CONSUMERS FIND USEFUL; PLEASING TO THE FIVE SENSES
2. TECHNICAL MIND – TECHNOLOGY ORIGINATOR, ADAPTOR, AND RENDERER;
USES OLD KNOWLEDGE FOR NEW APPLICATIONS IN VARIOUS FIELDS OF
HUMAN ENDEAVOR.
3. BUSINESS MIND – HARNESSES THE POTENTIALS OF NEW PRODUCTS BY
CREATING THE MARKET SPACE FOR THEM; ORGANIZES SUFFICIENT FORCES
AND RESOURCES TO DEVELOP, LAUNCH, AND COMMERCIALIZE THE NEW
PRODUCT IN ORDER TO MAXIMIZE ITS MARKET VALUE
 THE PRODUCT AND SERVICE
OFFERINGS
PRODUCT CONCEPTUALIZATION (CREATIVE MIND) – IDEALIZED
ABSTRACTION OF THE PRODUCT OR SERVICE TO BE OFFERED TO THE
PREFERRED MARKET OF THE ENTREPRENEUR
PRODUCT DEVELOPMENT (TECHNICAL MIND) – CONVERSION OF THE
PRODUCT CONCEPT INTO A VIABLE PRODUCT; PROVIDING THE QUALITY
AND PERFORMANCE SPECIFICATIONS THROUGH TECHNOLOGY
PRODUCT LAUNCH (BUSINESS MIND) – BRINGING OF THE PRODUCT FROM
THE PROTOTYPE STAGE TO THE PRODUCTION PHASE AND FINALLY TO THE
MARKET PLACE; DETERMINING THE BEST WAY TO MAXIMIZE PRODUCT
SALES TO ITS TARGET MARKET
 7P’S OF THE MARKETING MIX

–SERVES AS THE OVERALL BUSINESS

STRATEGY
–COMPOSED OF: POSITIONING,
PRODUCT, PACKAGING, PLACE,
PEOPLE, PROMOTION, AND PRICE.
 7P’S OF THE MARKETING MIX
POSITIONING
–SPECIFICALLY ADDRESS THE NEEDS OF A
CHOSEN TARGET MARKET.
–DISTINGUISHING ITSELF FROM THE
COMPETITORS
–HOW CUSTOMERS PERCEIVE THE ENTERPRISE
AND ITS PRODUCT/SERVICE
 7P’S OF THE MARKETING MIX
PRODUCT
– IDENTIFIED WITH THEIR BRAND NAMES TO DISTINGUISH THEM FROM OTHER
PRODUCTS IN THE MARKET.
– BREAKTHROUGH PRODUCTS: OFFER COMPLETELY NEW PERFORMANCE
BENEFITS
– DIFFERENTIATED PRODUCTS: A NEW PRODUCT DIFFERENT FROM AN EXISTING
PRODUCT
– COPYCAT PRODUCTS: FROM THE NAME ITSELF, A COPY FROM EN EXISTING
PRODUCT
– NICHE PRODUCTS: DO NOT INTEND TO COMPETE DIRECTLY WITH GIANT
PRODUCTS; PRODUCTS WITH LOWER REACH, LOWER VISIBILITY, LOWER PRICES,
AND LOWER TOP OF MIND
 7P’S OF THE MARKETING MIX
PACKAGING
– IDENTIFIES THE PRODUCT, DESCRIBES ITS FEATURES AND
BENEFITS, AND COMPLIES WITH GOVERNEMNT RULES.
– DIFFERENTIATES THE PRODUCT FROM ITS COMPETITORS
– LENGHTENS THE LIFESPAN, PHYSICALLY PROTECTS, AND
EXTENDS THE USEFULNESS OF THE PRODUCT.
– CAN BECOME AN ENVIRONMENTAL ISSUE
– CAN INCREASE THE COST
 7P’S OF THE MARKETING MIX
PLACE
– PHYSICAL LOCATION OF THE BUSINESS
– THE FINAL CHOICE OF LOCATION MUST BE BASED ON THE FF:
1. IMAGE & LOCATION CONDITIONS
2. EXACT FIT TO TARGET CUSTOMERS
3. CLUSTERING OF COMPETITOR ESTABLISHMENTS
4. FUTURE AREA DEVELOPMENT
5. FISCAL AND REGULATORY REQUIREMENTS
 7P’S OF THE MARKETING MIX
PEOPLE
– THE ULTIMATE MARKETING STRATEGY
– THE REGULAR CONTACT POINTS BETWEEN THE ENTERPRISE AND ITS
MARKET
– 4 LEVELS OF MARKETING EFFORTS OF PEOPLE:
1. TO CREATE CUSTOMER AWARENESS
2. TO AROUSE CUSTOMER INTEREST
3. TO EDUCATE CUSTOMERS AS THEY EVALUATE THEIR BUYING
CHOICES
4. TO CLOSE THE SALE AND DELIVER THE PRODUCTS
 7P’S OF THE MARKETING MIX
PROMOTION
– EXPLICIT COMMUNICATION STRATEGY TO ELICIT THE PATRONAGE, LOYALTY,
AND SUPPORT FROM CUSTOMERS AND SIGNIFICANT STAKEHOLDERS
– ENCOMPASSES ALL THE DIRECT COMUNICATION EFFORTS OF THE
ENTERPRISE
– EFFECTIVE PROMOTION DEPENDS ON 3 CRITICAL FACTORS:
1. THE CREDIBILITY OF THE COMMUNICATOR
2. THE MESSAGE AND THE MEDIUM OF THE MESSAGE
3. THE RECEPTIVENESS OF THE AUDIENCE TO ALL THAT IS BEING
COMMUNICATED
 7P’S OF THE MARKETING MIX
PRICE
– BASED ON THE BUSINESS OBJECTIVES SET BY THE ENTERPRISE
– SETTING THE PRICE OF THE PRODUCT/SERVICE SHOULD BE BASED ON THE
FOLLOWING:
1. PROFIT AND REVENUEMAXIMIZATION
2. MARKET SHARE MAXIMIZATION
3. ATTAINMENT OF THE DESIRED PRESTIGE OR QUALITY LEADERSHIP
4. PENETRATION, SURVIVAL, OR LIQUIDATION
5. SCARCITY PRICING OR MARKET SKIMMING
6. COST RECOVERY
7. SUBSIDY AND MARGINAL PRICING
The Enterprise Delivery System
Input Throughput Output Final Delivery Outcomes
to Customers
Resources • Transformation • Products • Marketing & • Customer
mobilized Process • Goods Customer expectations
• Money • Conversion of made or Servicing (quality, delivery,
• Men Input into Services • Marketing price)
• Machines Output rendered Program • Market
• Materials • Service Level expectations (sales,
• Methods Experience market share,
• Management market reach)
• Finance
expectations
(profits, return on
investment)
The 9 Critical Sub-Systems in the
Transformation Process
1.Technology Application and Utilization
2.Operating Work Flow – the step-by-step process
of sourcing and storing input, converting these
into output and delivering it to the customers
3.Layouting – physical layout of the enterprise
4.Production Programming and Scheduling
The 9 Critical Sub-Systems in the
Transformation Process
5. Quality Control
6. Operating Systems and Procedures
7. Operations Management, Supervision, and
Control
8. Worker Motivation, Skilling, Deployment,
Compensation, & Control
9. Support Services