Module 2 - Business Enterprise Simulation-1
Module 2 - Business Enterprise Simulation-1
LESSONS
Preparing the Business Plan:
1. Preparing Strategy plan for competitive advantage
2. The competitive environment
3. Industry analysis
4. Competitive analysis and strategies
5. Preparing a marketing plan
6. Sales forecast
7. The operations plan
8. Crafting a financial plan.
CONTENT STANDARD
The learners demonstrate the key concepts Accounting, Business and Management through the
preparation of a business plan, which outlines the different management aspects of the business
particularly those essential to execution
PERFORMANCE STANDARD
The learners shall be able to apply knowledge from his/her previous business courses through the
preparation of a business plan that will guide the eventual implementation of the venture
prepare a strategic plan outlining the competitive environment and focusing on the appropriate
competition strategy draw conclusions and formulate recommendations
prepare a marketing plan that will describe the product offering, the value it brings to the
consumer, and the subsequent tactical plan on how to reach consumers (4Ps), and conclude with
a sales forecast
design an operating plan to ensure that the inputs and processes required to deliver the product
or service are identified, and estimate the costs needed for production
craft a financial plan, the inputs of which are from the results of the marketing plan (sales) and
operations plan (operating costs), and which will define the financial goals that will be his/her
target upon eventual execution
craft a full business plan for review of mentors before actual execution
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 1
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Before you proceed, keep in mind first that preparing a business plan is a serious
responsibility. If even the smallest of details are not given proper attention or if unnecessary
details are included, then the business will be at risk of failing. In addition, you should try to be
objective, strategic, and determined when preparing your business plan. Lastly, keep in mind that
if done conscientiously, a business plan will be helpful in ensuring the success of a business.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 2
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Strategy plan for competitive advantage – deals with the competitive environment where the
entrepreneur will participate in.
Industry analysis
- The examination of the industry where the entrepreneur’s business will participate in,
usually in the next three to five years.
- It compasses the opportunities and threats in the industry as well as the major trends
that could affect the growth or decline of the industry.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 3
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Competitive Analysis
- the examination of what the direct and indirect competitors are doing and what they can
possibly do in the future.
- It also shows the driving forces and the rationale on why the competitors are doing what
they are doing.
Reflect Upon
1. What business do you have in mind that you are very interested in? Why?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
2. How competitive is the environment of the business you have in mind? Why do you say
so?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
A. Executive Summary
B. The Competitive Environment
1. Industry Analysis
(Porter’s Five Forces Model of Competition)
2. Competitive Analysis
(Competitive Profile Matrix)
C. Competitive Strategies
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 4
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Industry Analysis
The most practical way to conduct an industry analysis to test its attractiveness is to follow
Porter’s Five Forces Model of Competition, a framework developed in the 1980s by American
academic Michael E. Porter. This framework is illustrated below:
Source:https://www.reddit.com/r/Bitcoin/comments/1d16pm/porter_5_forces_of_competition_model_not_btc/
To illustrate Porter's Five Forces using a real-life example, refer to Case 2 from the
previous module:
Case 2: Mrs. Maritess Bonifacio had been a banker for five years. But she resigned from work
she got married and had her first child. She resigned so she could focus on raisin her son. One
day, while her son was sleeping, Mrs. Bonifacio was channel surfing when she chanced upon a
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 5
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
news feature. The news feature was about virtual assistants, or freelancers or home-based online
employees. While watching the program, Mrs. Bonifacio discovered that virtual assistants work at
home using a computer connected to the Internet to serve the needs of foreign employers.
According to the program, foreign employers prefer this setup because it is cheaper for them to
operate rather than to hire regular employees. Mrs. Bonifacio also found out from the program
that the Philippines is currently one of the major sources of virtual assistants in the world with over
more than 1 000 000 Filipinos serving various foreign markets worldwide. After watching the news
feature, Mrs. Bonifacio did more research and she found out that virtual assistants in the
Philippines earn an average of $5 per hour and that most of the jobs were related to accounting,
finance, marketing, and sales. She also discovered that this trend of hiring virtual assistants is
expected to continue for the next 5 to 10 years, thus giving opportunities for Filipinos to work
online instead of going abroad or working in office-based jobs.
The following is a sample industry analysis of Case 2 using Porter's Five Forces Model
Competition:
1. Threat of New Entrants/Potential Competitors
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 6
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Despite the influx of online businesses, online employers are still picky on who to hire
because they require an online employee who has a specific set of skills to accomplish
a particular job. For example, online English tutors should have at least an English
degree from a reputable university or at least some experience in teaching English
classes.
Online employers dictate the salary of their online employee, and this salary is
nonnegotiable most of the time. In addition, online employers do not provide benefits
as compared to regular employment. Moreover, they can easily replace an online
employee if he or she does not deliver on time or the desired output.
Online freelancers, being the suppliers, have low to medium bargaining power
since online employers are meticulous in hiring online freelancers. Despite the influx of
online jobs, the online freelancers must still be equipped and qualified to do the job that
they are applying for. Some even undergo training or get short course before applying for
certain online job vacancies. Others use their work experience as qualification.
Rivalry against other online freelancers is low because the number of online jobs is way
higher than online freelancers. The rivalry is actually between the online freelancer and
himself or herself (if he or she has the skills needed to do the job required). As mentioned
several times already, the online freelancer must be equipped and skilled to perform the
online job.
The online freelancer must also continue with other online jobs or projects after the
contract with the previous one ends so the skills can be enhanced further. Doing so will
also boost the credibility of the online freelancer because past projects and ratings are
posted in his or her profile. Getting positive ratings will give him or her the edge to be
competitive in the online freelancing world.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 7
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Competitive Analysis
One of the most practical tools to analyze competition is to prepare a Competitive Profile
Matrix (CPM).
4 - Major Strength
3 - Minor Strength
2- Minor Weakness
1 - Major Weakness
To better understand CPM and how it helps entrepreneurs analyze the competitive
environment, refer to Case 3 from the previous module.
Case 3: Mr. Marvin Miranda is a fresh graduate of marketing management. He has observed that
the current administration has brought about a number of drastic changes, including the
implementation in Baguio City of a curfew for minors and a 1:00 AM liquor ban. Marvin believes
that a number of bars in Baguio City might be affected by these new policies. Additionally, he has
also noticed that most of the coffee and tea shops in Baguio City are always full. An aspiring
entrepreneur ever since he was young, Marvin wants to tap the market which he believes he
knows the most the youth.
After the FGD session where he gathered insightful details, Marvin plans to make a
competition analysis for the top coffee and tea shops in Baguio City through a CPM. He believes
a CPM will help him devise appropriate competition strategies. Based on his scan, there are three
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 8
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
potential competitors: Nova Coffee Shop, Bueno Coffee Shop, and Milla Coffee Shop. He will
name his coffee shop Miranda Coffee Shop.
Enumerated below are critical success factors for coffee and tea shops that Marvin was
summarize from FGD he conducted.
The results show that Miranda Coffee Shop can generally compete with the existing
competitors which garnered a score of 2,90 (2.50 is the median score based on the CSF scale of
I to 4). Miranda Coffee Shop is strong in terms of strategic location, non-coffee/tea products, and
digital promos. However, it needs to be competitive on basic coffee and tea products, brand image
since it is still new, and coffee/tea packaging. Miranda Coffee Shop must be vigilant with its
competitors, especially Nova Coffee Shop which is strong in overall service ambiance and service
personnel.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 9
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Competitive Strategies
After assessing and evaluating the competitive strength and position of your business
against the competitors, you, as the entrepreneur, have to come up with competitive strategies to
counter the challenges posed by the competition. Aside from his Five Forces Model of
Competition, Michael E. Porter also devised three generic competitive strategies collectively
called Porter's Generic Competitive Strategies-that can be applied in any business: cost
leadership strategy, differentiation. Strategy, and focus strategy. Refer to the following chart.
Source: https://i.ytimg.com/vi/HiBRviA3lnI/maxresdefaul]t.jpg
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 10
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
In the case of Mr. Miranda, it was clearly shown in the CPM-based on Mr. Miranda's FG that
more weight was given to service personnel (20%) in a coffee and tea shop business. This
was the consolidated result of the FGD session he conducted. Therefore, to be competitive
with Nova Coffee Shop, which got a rating of 4 points, Miranda Coffee Shop must devise a
differentiation focus strategy with emphasis on excellent coffee and tea shop service. The
differentiation focus strategy is the most appropriate because there is a target segment that
wants an excellent service experience from a coffee and tea shop the main reason why they
take their coffee at a coffee shop than at the comfort of their homes.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 11
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
2. Can you name two real-life MSMEs in the Philippines which were able to compete with
industry giants? How do you think they succeeded?
3. How will the ASEAN integration change the competitive landscape of business in the
Philippines given that there are a number of industry giants in these countries, especially
the progressive ones?
sari-sari store
laundry shop
barber shop
ihaw-ihaw
carinderia
water station
LPG business
cell phone load business
rice retailing business
spa business
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 12
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Marketing Plan
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 13
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
1. Product
2. Place
3. Price
4. Promotion
5. Packaging
6. People
7. Process
D. Sales Forecast
Strategic marketing efforts are made based on the nature of the product or service that will
be offered. Product or service offering refers to the value that the business will give to a customer.
The marketing strategy also influence’s the target customers' decision-making process whether
your product/service or those of the competitors. In offering a product or service, there are specific
questions that you need to answer in order to be certain in terms of what you will offer and what
the customer will expect from you. These questions are as follows:
Examples:
Product: Smartphones
What is your product/service mix (i.e., business that offers more than one good or
service)?
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 14
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Example: Smartphone distribution business selling brand new smartphones and at the
same time offering smartphone repair service
What is the depth of your offering (i.e., number of products or services available in each
product line?)
Example: Smartphones for Class AB worth P 30 000 - P 50 000; for Class C worth P I5
000 - P30 000; and for Class DE worth P3 000 - P15 000
What is the width of your offering (i.e., the number of lines available in your offering?
To better understand how to craft a product/service offering, refer to Case 4 from the
previous module.
Case 4: Mr.: Carl Aquino has a degree in literature and has been into poetry ever since he was a
kid. He is a tremendously talented poet who specializes in composing love poems for
couples. Last Valentine's Day, he and his friends set up a poem booth during the college
fair. In their booth were a netbook, specialty paper, envelopes, and a printer. He was
pleasantly surprised when several couples proceeded to their booth and asked him to
compose love poems. He charged P 100 for each love poem. He typed each poem on
his netbook using a free desktop publishing software. He added designs and graphics
sometimes pictures of the couples themselves passed on through a flash drive or via
Bluetooth -to the poem before printing it on specialty paper. Carl felt appreciated every
time a couple came by their booth to ask for a poem.
What is your product/service mix (i.e., business that offers more than one good or
service)?
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 15
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Answer: At the onset, Mr. Aquino will just offer a product, that is, a poem due to creative
limitation. In the future, Mr. Aquino can offer delivery of poems as a service.
What is the depth of your offering (i.e., number of products or services available in each
product line)?
Answer: Mr. Aquino can cater to couples, couples-to-be, and poem lovers.
What is the width of your offering (i.e., the number of lines available in your offering)?
Answer: In the future, Mr. Aquino can offer other creative romantic products like balloons
or a combination of flowers and poems.
In Case 4, therefore, the product offering of Mr. Aquino's business is a poem for, among
others, couples, couples-to-be, and poem lovers.
Value Proposition (VP) refers to a definitive statement which promotes the benefits value that a
product or service can cater to the customers. It is made to create a customer perception about
the value that the product/service will offer to the customer.
Unique Selling Proposition (USP) refers to a statement that promotes the most compelling
attribute of a product or service and what makes it different from the rest of its competitors. It is
made to differentiate an attribute of a product or service.
It is imperative to craft a VP and USP as both will be the core reasons why the business should
exist and why the business should continue.
To better understand VP and USP, Case 4 will be used again as reference for the following
example.
Proposed VP: Poem for you and your significant other in an instant!
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 16
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Justification: The VP is specific and straight to the point. It describes what the business is
offering, opening with the product right away. The value or benefit of the customers
is that they can receive a poem from poet for their own creative satisfaction or as
a gift to their significant others. The language used is easy to understand,
specifically geared toward attracting couples, couples-to-be, and poem lovers. The
compelling assurance from this VP comes from the word instant which emphasizes
that the customers will receive the poem immediately. Lastly, a poem given in an
instant is a unique concept that is not yet common in the marketplace.
Proposed USP: Printed poem for you and your Significant other in an instant
Justification: The proposed USP is also specific, short, and simple. It clearly specifies that the
customers will get a printed poem in an instant. The concept of making
personalızed poems for couples is relatively new and is virtually unique in all
aspects.
In crafting a VP and USP, keep in mind that even a catchy and strategic VP and USP will
not work if they are not effectively communicated to the target customers. These days, digital
channels are the emerging platforms to relay these marketing messages to the target customers.
Nevertheless, traditional ways such as signage, print advertisements, flyers, and radio
advertisements still remain useful and effective in many cases.
Reflect Upon
1. What VP of a business/product/service has struck you the most? Why?
2. What USP of a business/product/service has struck you the most? Why?
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 17
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
the reason why he was able to finish his education. Ron knows firsthand how his father
runs the business-from production to packaging all the way to distribution. Ron, who had
shown at an early age an interest in the family business, has also been trained by his
parents on how to manage the family business.
Unfortunately, the business has been on a decline due to stiff competition and
ineffective marketing initiatives, including unattractive packaging. Ron's parents tasked
him to help out in marketing the product in a more creative and appealing way. The family
is hoping to reverse the downward trend so that they can fulfill their dream to export their
bagoong to Thailand, a country where fish paste is commonly used in preparing various
dishes.
The challenge for Mr. Valdez 1s to effectively utilize the 7Ps of marketing for the bagoong
business both in the Philippines and in Thailand
Brand Name: The brand name is Mang Bagoong. The inspiration of this brand name is Ron's
father, Mr. Norberto Valdez, the family patriarch who makes the fish paste. The
word mang loosely means "mister", therefore, Mang Bagoong refers to Mr. Valdez
himself. In Thailand, the word mang has a positive meaning as it refers to the
queen of Thailand whom people respect and love.
Product Bagoong isda is prepared by mixing salt and a
Description: volume of fish such as dilis, galunggong, inglis, and
tulingan. The mixture is kept inside a large earthen
fermentation jar and tightly covered and sealed to
keep insects and parasites from mixing with the
salted fish.
Place: Due to the stiff competition of the local players, Mr. Ron Valdez plans to export
Mang Bagoong to Thailand where fish paste is an essential condiment. Mang
Bagoong will be produced in Mamburao, Occidental Mindoro and from there, the
finished products will be exported to Thailand. The import partner of Mang
Bagoong in Thailand will be Food Gallery, which imports over 50 brands from
around the globe then distributes these to 150 retailers and more than 500 chains
of restaurants, quick service restaurants, and hotels throughout Thailand.
Price: To compute for the price, Mr. Ron Valdez delineated first the variable costs and
fixed costs as presented in the matrix below. It was also converted to Thai baht
since it is the official currency in Thailand. The computation below is for 600 bottles
(265 mL) of Mang Bagoong.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 18
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
2. Compute for the Unit Cost by dividing Total Cost over Units Produced.
P32 950
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 19
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
3. Decide on the pricing Strategy and the actual price per unit.
Mr. Ron Valdez will use the penetration pricing strategy where he will first set a low
price to penetrate the Thai market. Thailand also specializes in fish-based condiments;
therefore, it will be difficult to use competitive pricing strategy right away. The current
prices of direct competitors in Thailand range from P180 to P450 if converted to Philippine
peso. Since Mang Bagoong will be exported, the minimum number of order is 2 000
bottles. The price will be P90 for a 9 oz or 265 mL bottle which is equivalent to P180 000
per order. The competitors offer 12 oz bottles of fish paste. Mr. Ron Valdez does not want
to compete directly against those offering fish paste in 12 oz bottles because based on his
observation and research, a smaller bottle is used more often than the larger ones. The
gross profit per unit is computed as follows:
Nam Pla Rah Fish Sauce Highly popular in the Isaan province of Thailand, nam pla rah is frequently added
to green papaya salad (som tam) in order to give it a unique taste, In
Northeastern Thai cuisine, nam pla rah is an essential ingredient in nearly every
recipe that originated from that area (hot pots, bamboo curry, and spicy minced
pork, to name but a few).
In the preparation of Nam Pla Rah Fish Sauce, mud fish is pickled, cleaned, and
then diced up with salt and rice bran. Once mixed, the fish is then carefully
fermented until it produces the desired consistency and flavor. The use of nam
pla rah is a distinctly Thai practice mastering the use of this ingredient will open
up a whole new range of Thai cuisine that is not frequently celebrated outside
Isaan.
Sources: http:/www.templeofthai.com/food/sauces/bu-do-sauce-5160000508.php
http://www.templeofthai.com/food/sauces/namplarah-5110000509.php
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 20
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
The following are some ways for Mr. Valdez to promote Mang Bagoong.
1. Food Expositions (Sales Promotion) - Mr. Valdez will participate in international food
expositions, festivals, and conferences where the different dishes and products of various
exporters, international retailers, and distributors are displayed. Doing so will give Mr.
Valdez various opportunities to prove that Mang Bagoong is a high-quality product. Events
such as food expositions and festivals showcase food products from all over the world,
and participating in them will definitely help increase people's awareness of Mang
Bagoong
2. Online Engagement (Digital Marketing) - Mr. Valdez will present Mang Bagoong in
strategic social media pages and accounts in Thailand to gain substantial visibility in the
Thai market. Below are examples of Thai Cuisines that can best be partnered with Mang
Bagoong. These Thai cuisines will be posted in social media accounts with customer.
3. Food Magazines and Newspapers in Thailand - Mang Bagoong will also be presented in
strategic food magazines and newspapers in Thailand to gain substantial visibility in the
Thai market. For example, Mr. Valdez will have an article about Mang Bagoong written
and then featured in two popular food magazines in Thailand -Thailand's Best Street Food
and Tong's Thai Kitchen This article, which will present Mang Bagoong as a quality fish
paste product of the Philippines will help promote the product to the Thai market, most
especially to food enthusiasts.
The marketing strategies budget is set by the entrepreneur based on its marketing
objectives and current resources. The marketing objectives and current resources must
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 21
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
meet and be very realistic so that implementation will be seamless. In this case, the total
marketing strategies budget set for Mang Bagoong is P167 703.58 which is detailed in
computation below. (The given figures are assumed marketing costs only.)
P16 283.93 per m x 6 m (size of the standee)- P97 703.58 (For the stall that will be
designed to stand out and leave a catchy impression to potential customers)
Online engagement
Mang Bagoong will actively engage in showcasing the product through pictures in
social media.
Budget: Free (This is on the assumption that Mr. Valdez will utilize free social media
platforms only.)
Reflect Upon
1. What promotional strategy do you think is very effective? Why do you say so?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 22
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
People: Along with his dad, Mr. Ron Valdez will manage the overall supervision of the Mang
Bagoong business. He will also seek assistance from his three classmates who are
experts in the export business - Ms. Marielle Servan, Ms. Louis Esguerra, and Mr.
Jean Capistrano. The three will be in charge of the negotiation strategies and in
handling trade fairs in Thailand. The three initially agreed to work pro bono for the
negotiation tactics and trade fair management, but Mr. Valdez will shoulder their travel
fare and expenses. Thereafter, they will be compensated based on the outcome of
their export initiatives. The Mang Bagoong export team will employ negotiation
strategies suited to a Thai customer. There are four principles in doing business in
Thailand as enumerated in http://www.leadershipcrossroads.com/mat/
cou/Thailand.pdf:
1. Physical presence is important to Thais because it shows the serious intention of the
businessperson (exporter) in dealing with his or her clientele.
2. The exporter should present the product professionally and exude the attitude of a
professional businessperson who must adapt to the culture, ethics, and beliefs of the
Thais.
3. A sticky business relationship (one that is mutually beneficial) must be developed since
it takes a lot of time to forge a successful partnership in Thailand.
4. Communicate well and be straight to the point as Thais do not waste time.
Packaging: The export business is more complicated compared to doing business domestically.
Therefore, all international standards must be met or followed by Mang Bagoong,
especially the packaging.
The following are the international standards in packaging products similar to Mang
Bagoong.
1. The exporters must use fiberboard box or carton (size: 28 in x 18 in x 18 in) in packing
Mang Bagoong. One box will have 50 bottles. To secure the bottles from breaking, each
box must have a box partition, with each bottle covered with bubble wrap to make it stable
and to avoid getting damaged. The product will be transported by sea freight
The exporters also need to consider the climatic conditions during the journey, possible
susceptibility to pilferage, customer's requirements, and cost of packing materials to
maintain the good quality of the product that will be shipped from the Philippines to
Thailand. The exporters must make sure that they meet the packing specifications of their
customer.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 23
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
2. Export marking is a sign or symbol indicated in export boxes. Such markings show the
essential data and other data of the products to be exported, including the details of the
exporter and the customer.
Essential data are the basic information and nature of the products inside an export
box. It also includes the name and address of the exporter and the name and address
of the customer
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 24
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
3. Other data or other pertinent export details required by the country of origin, country of
destination, or both
Package Weight
Order Number
Like us on Facebook.com/
MangBagoong Ph
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 25
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
4. Marking symbols are symbols that are used in export boxes to signal special handling
for the products inside the box. These symbols are crucial in exporting to preserve the
original physical state of the product, including its freshness.
Reflect Upon
1. What product or service in the market has an effective and efficient packaging? Explain.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
2. Do you think packaging really affects the purchase decision of a consumer? Justify your
answer.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 26
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
\
Read the article on http://www.entrepreneur.com.ph/startup-tips/a-successful
entrepreneur-shares-his-marketing-strategies. It is about a successful entrepreneur sharing his
marketing strategies. After reading the article, answer these questions:
2. How did these marketing strategies help make his business successful?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Sales Forecast
A sales forecast is a projection of potential sales that the business will generate as a
result of the marketing efforts to be implemented and the general condition of the industry to
where the business belongs. it also provides the entrepreneur a production forecast, a projection
of the potential number of products to be manufactured based on the sales forecast, and prepares
the capacity materials, manpower, machine, and methods for operations needed to produce the
sales forecast. As a contınuation, the Mang Bagoong business of Mr. Ron Valdez will be used as
example.
In preparing a sales projection, the entrepreneur should take into account the industry
trends, the competitors, and his or her own resources to come up with a realistic one.
On Year 1, Mang Bagoong is expected to sell 10 000 bottles only as this will be a trial
balloon setup first. Food Gallery will order 10 000 bottles as initially negotiated and will distribute
these to its clientele.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 27
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
These are the sales projection for the next four years for Mang Bagoong with the
marketing efforts to be implemented:
Mr. Ron Valdez projected that there will be an increase of 10-20 percent in sales since
the demand in sauces and condiments in Thailand is constantly growing. This 10-20 percent
projection is also based on an industry estimate from a reputable Thai journal. The behavior of
tourists also shows that they are into trying new condiments. In addition, various Thai food are
extremely popular, most especially to tourists Reuters estimates that around 30 million tourists
per year visit this Southeast Asian nation. Thai delicacies are also very popular due to their
appetizing combination of the four fundamental tastes: salty, sour, spicy, and sweet. The
challenge then for Mang Bagoong is how to differentiate itself since the competition is very stiff.
Aside from lower price and smaller packaging, it should also focus on product quality to
compete with local Thai condiments/sauces.
An operations plan has four aspects methods, manpower, machines, and materials
(collectively called 4Ms of Operations). These four Ms are equally important to produce efficient
and effective operations.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 28
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
I. Methods
II. Manpower 1
A. Job Description
B. Employee Qualification
C. Selection of Job Applicants
D. Job Offer
E. Employee Development
III. Machines
IV. Materials
A. Suppliers
B. Logistics
For continuity, the Mang Bagoong business of Mr. Ron Valdez will again be used in the
example. The operations plan of Mang Bagoong will be more complex since it involves the
delivery of goods abroad.
I. Methods are simply the daily processes that a business conducts. Depending on the type
of business, methods include manufacturing of a physical product, rendering of services,
product distribution, and inventory management.
A. For the Mang Bágoong business, one of the crucial methods is manufacturing since Mang
Bagoong will be produced at an assembly plant near Mr. Ron Valdez's home in
Mamburao, Occidental Mindoro. He chose an assembly plant for manufacturing because
it offers a more specialized and suitable manufacturing site compared to making the
product at home. In addition, fishing is a significant economic activity in Mamburao. The
municipality, in fact, exports tuna to mainland Luzon and other countries. It also markets
yellow fin (tambakol), gulyasan, tulingan, and other coral fish like lapu-lapu to other
provinces such as Cavite, Quezon, and Batangas. Since Mamburao is a coastal area, the
common industries are dried fish processing and bagoong and patis making.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 29
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Inputs are the ingredients or materials needed to manufacture a product fish (dilis,
galunggong, inglis, or tulingan), salt, water, drum, packaging materials.
B. The chart on the next page depicts the distribution method to be employed by Mr. Ron
Valdez. The distribution method is the step-by-step process on how a product will reach
the customers. The distribution channel, on the other hand is where the goods or services
pass through to reach the customers. The distribution channel will be indirect since Mang
Bagoong will go through several ports or locations before reaching the target place or
recipient. Mr. Valdez will rely on an importer/wholesaler from Thailand who will then be
the one to distribute the product to 150 retailers and over 500 chain restaurants, quick
service restaurants, and hotels throughout Thailand. The finished product will be shipped
from Abra de Ilog to Batangas Port via RoRo Car Port. The shipping company will be
Montenegro Shipping Line, Inc. From Batangas Port, Mang Bagoong will be delivered to
Manila Port via Mendoza Trucking Services. From Manila Port, Mang Bagoong will be
shipped to Yangon Port in Myanmar. From Myanmar, Bangkok Shipping Service will
deliver Mang Bagoong to the wholesaler/importer company in Thailand which, in this case,
is Food Gallery Limited (refer back to the discussion on the 7Ps of Marketing).
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 30
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
C. Payment process in export involves the method on how the importer will pay the exporter
The payment process for export businesses is also more complicated than local
businesses. The process below details how the importer pays the exporter (Mang
Bagoong). The key premise for the payment process is that it should be prepared and
implemented in the most efficient and hassle-free way to avoid delays and losses.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 31
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
II. Manpower
Manpower is basically the labor force needed in business operations. It is a vital part
of an operations plan. Getting the right people with the required skills, good attitude, and
exceptional character will help the business reach its full potential. In the case of Mang
Bagoong. the credentials of Mr. Ron Valdez were explained already in Module 1. His
friends (Marielle, Louis, and Jean), who will handle the negotiations, trade fairs, and all
export-related activities in Thailand, are graduates of BS Marketing Management and
have been interested in this business ever since they were in college. In fact, the Mang
Bagoong export business was their project for their International Marketing subject in
college. It won for the group several awards in competitions. They used the existing Mang
Bagoong business of Mr. Norberto Valdez, Ron's father, as their inspiration in crafting their
International Marketing paper. They also have a close business relationship with Food
Gallery. They are leveraging their experience in trade fairs and negotiation sessions in
Thailand as their investment/training in export business.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 32
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
For the manufacturing side, they will contract five workers for P300 per day. These
workers should be adept in the manufacturing process of bagoong. They will undergo
training tor five days before immersing n the actual manufacturing plant.
.
III. Machines are equipment (soft or hard) needed to manufacture a product.
The following hard and soft machines will be used by Mr. Ron Valdez for his Mang
Bagoong business:
Delivery truck - The delivery truck will carry the Mang Bagoong products from the
production plant to Abra de Ilog. [t will also be their official service for the business.
There is already an available truck the one used for the Mang Bagoong domestic
business.
Fully sanitized drums- These drums will be used for the fermentation of Mang
Bagoong.
Laptop-This will be used to monitor orders and make reports and for accounting.
research, administrative tasks, digital marketing, and online banking,
Web sites and social media pages - These will be created to promote Mang
Bagoong online.
The materials needed are basically the inputs of production mentioned previously:
fish (dilis, galunggong, inglis, or tulingan), salt, water, drums or barrels, and packaging
materials.
Bagoong is fermented for 30-90 days. The prepared solution is mixed every day to
maintain the consistency of the flavor. Mang Bagoong is prepared by mixing th fish, and
salt in a 25 percent salt to 75 percent fish ratio by weight.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 33
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
During the preparation process and fermentation period of bagoong, workers must
maintain proper hygiene to conform to the highest international standards. The shelf life
of Mang Bagoong lasts up to two years with proper handling and prevention of spoilage.
The supplies will come from the local market in Mamburao, Occidental Mindoro which is
500 meters away from the manufacturing plant
Read the article "Top Tools and Techniques to Make Your Business More Efficient" on
http:/www.theguardian.com/small-business-network/2013/oct/18/top-tools-techniques-efficient-
business. Which do you think among these tools and techniques should be utilized by Filipino
entrepreneurs? How will these tools and techniques help them?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
Here are the costs of smartphones and laptops to be depreciated for three years:
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 34
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Check the projected income statement for four years of Mang Bagoong. The figures ay
are based on the results of the Mang Bagoong sales forecast driven by marketing and negotiation
strategies plus the operational plan with the costs to be incurred. This is the most realistic high-
level financial plan appropriate for Mang Bagoong given the internal and external circumstances
facing the business. It is assumed that funding for the business is available and sourced from the
current capital of the Mang Bagoong business in their domestic operations and loans from local
banks.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 35
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Mang Bagoong
Balance Sheet
As of 31 Decenber 2017
Assets
Current Assets
Cash P 2 000 000
Accounts Receivable 100 000
Mang Bagoong Inventory 50 000
Short-term Investments 200 000
Prepaid Expenses 200 000
Total Current Assets P 2 550 000
Non-current Assets
Delivery Truck P 500 000
Accumulated Depreciation- Delivery Truck (100 000)
Other Long-term Investments 400 000
Total Noncurrent Assets P 800 000
Liabilities
Owner's Equity
Mang Bagoong, Capital P 1 550 000
Total Owner's Equity P 1 550 000
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 36
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
After plotting all the necessary components of the business plan one by one, consolidating
these pieces of information now becomes easy. Below is a simplified format of business plan.
A. Executive Summary
C. Competitive Strategies
1. Product
2. Place
3. Price
4. Promotion
5. Packaging
6. People
7. Process
G. Sales Forecast
H. Methods
1. Manufacturing/Sourcing of Goods or Service Delivery Process
2. Distribution Method
3. Payment Process
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 37
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
I. Manpower
1. Job Description
2. Employee Qualification
3. Selection of Job Applicants
4. Job Offer
5. Employee Development
J. Machines
1. Equipment and Other Physical Facilities
2. Telecommunications and Information Technology
K. Materials
1. Suppliers
2. Logistics
During the grueling weeks of preparing the business plan, it will be very helpful to have an
entrepreneur-mentor or a professor guide your group for alignment and for strategic direction as
well.
1. Among the businesses mentioned, what do you think will be the most profitable based on
your own financial projections for the next three to five years
______________________________________________________________________
______________________________________________________________________
2. Do you think the cost of franchising business in the Philippines is profitably reasonable or
not? Why?
______________________________________________________________________
______________________________________________________________________
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 38
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
ESSENTIAL LEARNING
This module gave real-world insights in the preparation of a business plan from the
standpoints of different entrepreneurs in the given cases. It also narrated insightful
encounters with mentors/entrepreneurs/professors. The business plan as discussed serve
as the blueprint in implementing a business; thus, it is crucial that each entrepreneur must
prepare a well-researched and well-written business plan. Without a well-researched and
well-written business plan, it will be cumbersome for an entrepreneur to implement the
business since there is no guide or direction to follow.
A strategy plan was made upon close scrutiny of the competitive environment and the
industry where the business operates. The applications of appropriate competitive
strategies were also presented through the various cases discussed.
The marketing plan was taught so that you will be able to bear in mind that only appropriate
marketing strategies must be implemented based on the market needs. The product or
service offering must satisfy specific questions as well. The Value Proposition and Unique
Selling Proposition were also discussed as necessary for the longevity of the business
and to keep it competitive. The 7Ps in Marketing were also taught to aid you in ne
promotion of products or services, whether domestically or internationally. You were also
familiarized with the steps in making a sales forecast which will serve as the objective of
a business in the next three to five years.
The 4Ms of Operations the methods or processes of the business and how to make them
efficient and effective, the manpower that runs the business, the machines that make
business processes simpler, and the materials needed for production were also taught in
this unit. Additionally, this module introduced you to the financial plan, a document that
presents numerical values to the marketing and sales efforts to be implemented and the
costs to be incurred. A carefully made financial plan can tell whether a business is worth
pursuing or not. The elements you learned in this module strategy plan, marketing plan,
operations plan, and financial plan-make up a simplified business plan that covers all
facets of a prospective business.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 39
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Culminating Output
1. Form a team with five members. Each of you must scan his or her environment and find
the most compelling business opportunities derived either from external sources or
internal sources. Therefore, each one of you must prepare an individual Opportunity
Attractiveness Matrix (OAM).
2. Each of you must present your individual OAM, highlighting the top business opportunity
in your locality. You and your team must convene and prepare the final OAM, choosing
only one of the business opportunities presented the one with the highest score in the final
OAM.
3. Once the most compelling opportunity has already been identified, your team should
strategically decide whether you will implement the business in your school with an ABM
professor as a mentor (Model A, a school-based business to be discussed in detail in the
next unit) or implement the business in your community with an existing
entrepreneur/industry partner venturing in the same business that you and your team have
identified (Model B, actual community-based business also to be discussed in detail in the
next unit). After finalizing which model to follow. Your team can know start preparing a
comprehensive business plan for your chosen business opportunity.
4. Make sure that your team cites the source of each piece of information included in your
business plan to avoid plagiarism. Additionally, the tasks should be distributed equally to
all members, with each one having specific tasks according to his or her capabilities. The
business plan should be professional-looking, free of grammatical and spelling errors, and
full of relevant content.
5. The final business plan must be submitted to your ABM professor or industry partner on
the set deadline. The ABM professor or industry partner will then review the business plan
thoroughly before he or she gives a recommendation for implementation. Additionally, he
or she will advise the students if there is a need to revise any portion of the business plan.
6. You and your team will be graded by your ABM professor or industry partner using the
Rubric for Making a Business Plan found on the next page.
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 40
Republic of the Philippines
MARINDUQUE STATE COLLEGE
LABORATORY HIGH SCHOOL
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: [email protected] LHS Tel. No: (042) 332 – 0351
Website: www.marinduquestatecollege.edu.ph LHS Email Address: [email protected]
Vision: Marinduque State College is a research-driven higher education institution pursuing excellence and innovation by 2025.
Mission: Marinduque State College is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically advanced programs across cultures and communities by establishing centers of
excellence and development and research-driven outreach program.
SERVING BEYOND EXCELLENCE! 41