ENTREP|4M’S OF OPERATION IN RELATION TO THE BUSINESS OPPORTUNITY AND DEVELOPING BUSINESS MODEL Flashcards
4M’S OF OPERATION
MANPOWER
MATERIAL
MACHINE
METHOD
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.
MANPOWER
Talks about raw materials necessary in the production of a product. 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
MATERIAL
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
MACHINE
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 art of doing.
METHOD
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.
PRODUCT DESCRIPTION
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.
PROTOTYPING
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.
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.
SUPPLIERS
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 _______ 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.
A SUPPLY 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.
VALUE CHAIN
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.
BUSINESS MODEL
-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.
BUSINESS PLAN
Creates and Delivers value in social, economic, and cultural context
Business Model
Describes a business strategy and its predicted financial performance
Business Plan
COMPONENTS FOUND IN A BUSINESS PLAN (9)
INTRODUCTION
EXECUTIVE SUMMARY
MANAGEMENT SECTION
ORGANIZATIONAL CHART
MARKETING SECTION
COMPETITIVE ANALYSIS
MARKET
FINANCIAL SECTION
PRODUCTION SECTION
