Holy Cross College

Sta. Ana, Pampanga

Module
in
Technology and Livelihood Education 10

Jocelyn G. Gregorio, LPT

 Table of Contents

Introduction………………………………………………………………………………………. 3

Unit 1: Entrepreneurship and Financial Literacy………………………………………….. 4

Lesson 1: Reassessing Personal Entrepreneurial Competencies………………………. 4

Entrepreneurial Competencies………………………………………………………………. 5

Characteristics of Entrepreneurs……………………………………………………………... 5

Reassessment of Personal Entrepreneurial Competencies…………………………….. 6

Action Plan………………………………………………………………………………………. 15

Lesson 2: Generating Business Ideas and Developing a Product……………………. 17

Business Ideas……………………………………………………………………………………. 18

Product Development…………………………………………………………………………. 21

Unique and Competitive Products………………………………………………………….. 21

Innovative Techniques to Develop Marketable Products……………………………… 22

Unique Selling Proposition…………………………………………………………………….. 22

Digital Marketing……………………………………………………………………………….. 23

Brands…………………………………………………………………………………………….. 24

Designing your Logo…………………………………………………………………………… 25

Lesson 3: Cash Flow Management………………………………………………………….. 27

Why Cash Flow Important? .................................................................................... 27

Building a Positive Cash Flow………………………………………………………………... 28

Making a Cash Flow Statement……………………………………………………………… 28

Lesson 4: Savings and Investment…………………………………………………………… 29

The Need to Save and Invest………………………………………………………………… 31

Ways of Saving and Investing……………………………………………………………….. 31

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 Introduction

Technology and Livelihood Education 10 is a specialized course that embarks on

a new shift from purely curriculum based on the Training Regulations (TR) of the
Technical Education and Skills Development Authority (TESDA) to an entrepreneurship-
based program. With this shift, beginning lessons on entrepreneurship and financial
literacy occupy the first unit of this module, followed by the specialization courses in
Home Economics.

The specialization courses for Grade 10 are the following:

 Entrepreneurship and Financial Literacy

 Cookery

In this module, students will go through a series of learning activities in order to

complete each learning outcome. It gives students creative opportunities for
experimentations which can open business opportunities. For aspiring entrepreneurs, this
would be an innovative idea to continuously experiment on new products to introduce
to consumers and create their own market.

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 Unit 1

Entrepreneurship and Financial Literacy

Overview

This unit is a continuation of the entrepreneurship and financial literacy lessons in

Grade 7, which was continued in Grade 8 and 9, and finally in Grade 10.

This unit will help you assess yourself in becoming entrepreneurs in the future. We
will look again at your personal entrepreneurial competencies (PECs) and find out how
much you have gained in the last three years of studying entrepreneurship. In addition,
we will see how much you have learned, acquired, or improved your knowledge, skills,
and traits.

Lesson 1

Reassessing Personal Entrepreneurial Competencies

I. Learning Targets:

 I can cite various concepts of entrepreneur and entrepreneurial competencies;

 I can describe the characteristics of entrepreneurs;
 I can reassess my personal entrepreneurial competencies using the PECs
assessment quiz;
 I can identify the strong and weak points of one’s PECs; and
 I can prepare an action plan based on one’s PECs.

II. Explore (Pre-Assessment)

Directions: Read the following statements carefully then choose the letter of the best
answer from the given choices. Write your answers on a separate sheet of paper.
1. These refer to characteristics, such as personality, traits, skills, and knowledge that are
identified and considered important for entrepreneurial success.

A. Entrepreneurial Competencies C. Entrepreneurship

B. Personality D. Entrepreneur

2. They are leaders and the success of their business depends on their ability to make
the right decisions.

A. Decision-makers C. Excellent planners

B. Goal-setters D. Hardworking

3. This is a method widely used as a tool in analyzing all the factors that can have an
impact on one’s goals or objectives.

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A. SWOT C. Competencies

B. PECs D. Opportunities

4. These are factors in your environment that serve as obstruction to the attainment of
your goals.

A. Threats C. Opportunities

B. Strengths D. Weaknesses

5. They have a genuine interest in meeting and entertaining people.

A. Enthusiastic C. Responsible

B. Problem-solvers D. Decision-makers

III. Firm up (Lecture and Discussion)

Entrepreneurial Competencies

To achieve success in life, competencies and personal qualities are necessary

when you join the workforce or become an entrepreneur. If you intend to become an
entrepreneur, you must possess entrepreneurial competencies.

Entrepreneurial competencies refer to the important characteristics that should

be possessed by an individual in order to perform entrepreneurial functions effectively.

Assessing one’s entrepreneurial competencies and skills can enhance his/her

entrepreneurial interests.

Characteristics of Entrepreneurs

 Innovative and trendsetters. They have the ability to introduce new ideas,
concepts, or methods. They have creative minds and do not stick to one style for
so long.
 Problem-solvers. They take efforts to solve problems and have strong faith in their
abilities. They are also optimistic individuals and positive thinkers.
 Enthusiastic. They display high energy levels and genuine interest in meeting and
entertaining people.
 Opportunity-seekers. They are curious and always on the look-out for
opportunities and finding out whether they could do something of this
opportunity. They also seek for appropriate solutions to answer the needs and
wants of consumers.
 Goal-setters. They establish specific, measurable, attainable, and realistic
objectives as well as long-term goals for their businesses.
 Reasonable risk-takers. They take reasonable risks after careful weighing
situations that involve moderate risks that exist when results are not certain.

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  Excellent planners. They plan for the operations which involves strategic thinking
and goal setting to achieve objectives by carefully maximizing all the available
resources.
 Service-oriented. They focus on providing satisfaction and making themselves
available to attend to the needs of their customers with efficiency and
graciousness.
 Decision-makers. They have the ability to think quickly and to make wise
decisions towards pre-determined set of objectives.

Reassessment of Personal Entrepreneurial Competencies

A. By SWOT Analysis

Assessing Personal Competencies

SWOT is the acronym for strengths, weaknesses, opportunities, and threats. This is
a method widely used as a tool in analyzing all the factors that can have an impact on
one’s goals or objectives. It helps you to build on what you do well, to address what
you're lacking, to minimize risks, and to take the greatest possible advantage of
chances for success.

On a personal level, a SWOT analysis identifies your strengths and weaknesses as

an individual – traits, skills, abilities, and other characteristics. For a more objective
assessment, ask others’ honest evaluation of you – your family, friends, classmates, and
even those not so friendly to you. From the gathered data, you can identify your
strengths and weaknesses.

On the other hand, opportunities and threats are those outside of you. These are
environmental factors that may favor or interfere with your personal goals or objectives.
Identifying threats and opportunities can be done through environmental scanning. By
environmental scanning, you can observe your surroundings, talk to people, and make
a careful analysis of your observations and how these observations influence or affect
you, the growth of businesses, and the changes in the market, trends, and changing
lifestyles that impact consumer choices and demands.

When doing a SWOT analysis for assessing your competencies, follow these steps:

1. Construct four 3 x 3 inch boxes and label each box as below:

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

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2. Fill each box with all the factors that best describe your personality and character.
Use the following questions as guide and fill the boxes with your answers. Put more
factors inside each box if you have more. There is no limit to how many factors for each
SWOT to put inside each box.

a. Strengths or positive characteristics about you.

 What are the character traits, talents, skills, work habits, attitudes, and
values that you are proud to possess and are considered your
strengths/assets?

b. Weaknesses or characteristics that you need to improve on

 What are the character traits, work habits, attitudes, and values that
make you weak?
 What are your characteristics, including work habits, that you would like to
improve on or are not as proud of and would like to change?

c. Opportunities or what you see externally (in the environment or your

surrounding) about your goal.

 What opportunities can you see in your environment, such as:

o the quality of education in schools;
o organizations that you can access with less or o financial
requirement;
o available technology that you can avail of; and
o Apprenticeship program available to you?

d. Threats or the factors in your environment that serve as an obstruction to the

attainment of your goals

 What threats can you see that obstruct your goal, such as:
o lack of financial support;
o lack of facilities to develop your skills and talents; and
o Absence of technology for communication and update of the
information?

3. By analyzing each item in every box, match the items in each box with the items in
the other boxes. An example is to match your strengths with the opportunities and the
weaknesses with the threats. It is not necessary that matching is one to one; an item
can be matched with two or more other items. By analyzing your strength alongside the
opportunities, you will be able to see what areas you can further pursue and be more
aggressive in acting upon. Examining your weaknesses alongside the threats will show
you the areas where you are more vulnerable. Knowing them can help you convert the
negatives into positives through further develop your strengths and correct your
weaknesses.

Example of SWOT Analysis

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 STRENGTHS
 committed to work
 creative has initiative
 Positive attitude toward
work.
OPPORTUNITIES
 presence of good-quality schools
and training centers
 presence of organizations that can
provide financial support and skill
development
WEAKNESSES
 insufficient training
 inadequate knowledge of
technology
 weak interpersonal relations
THREATS
 presence of more competitors in
the area of interest
 lack of financial support to pursue
goals

B. By Using Entrepreneurial Tests/Inventories

Entrepreneurial Test 1

This is a simple test that aims to gather information about your quantities or traits
as an individual to give you clues on your chances of success in entrepreneurial or
related activities.

Put a check mark () under the column that best describes your thoughts and
feelings. Take time to read and understand each statement before you answer. This
way, you can give an answer that most closely applies to you.

STRONGLY AGREE DISAGREE

CHARACTERISTICS AGREE (MODERATE) (LOW)
(HIGH) (3) (2) (1)
Achievement: I have a strong desire to be
successful in my chosen business venture.
Belief: I have a faith in myself and the
service or product that I plan to build my
business around.
Creativity: I address situations in
imaginative and innovative ways.
Discipline: I choose to do what I know I
should do and be responsible for my
actions.
Expressive: I express my ideas and feelings
clearly and logically, both in oral and
written forms.
Friendly: I am genuinely interested in
people.
Goal-oriented: I tend to set my sights on

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present goals and will work hard toward
achieving them.
Health-conscious: I am aware of my
physical limitations and will work in a way to
preserve my health.
Independent: I can work alone, I am
knowledgeable, and I handle my finances
well.
Judgment: My conclusion of a conclusion is
generally accurate.
Knowledge: I have sufficient experience in
my field, and I have spent enough time in a
professional setting to learn the business.
Leadership: I direct people effectively while
instilling confidence and loyalty.
Maturity: I take responsibility for my actions.
Networking: I am willing to join associations
with other entrepreneurs to gain
professional support for my venture.
Positive attitude: I am convinced that I can
accomplish anything I set my mind to and
rarely entertain negative thoughts.
Questioning: I am not afraid to ask
questions to get the information I need to
expand my knowledge.
Resourceful: I find ways to accomplish just
about any task I must do.
Sales ability: I present information about
myself and/or my business in a convincing
and honest manner.
Tolerance: I handled stressful situations with
a positive and realistic attitude.
Venturesome: I am willing to take risks, be
an enterprising person in making new
things, and handle troublesome situations.
Well balanced: I generally maintain a sense
of humor when things do not work out as
expected.
Youthful nature: I am capable of doing my
work with enthusiasm and a high level of
energy.
Zest: I look forward to enjoying my business,

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the people I will be dealing with, and the
resulting fruit of my labor.

Scoring

 To rate oneself, simply multiply the “Strongly Agree” responses by 3, the “Agree”
responses by 2, and the “Disagree” responses by 1. Read the interpretation that
corresponds to the score.
 56-69: You have strong, positive characteristics/traits/abilities to be a successful
entrepreneur.
 42-55: You are a positive person and one with a clear direction. You should not
have any problem with working on certain areas to improve your business
potential.
 23-41: This is an indication that finding a business partner who can support your
goals may be an option worth considering.

Entrepreneurial Test 2

Self-assessment: Identifying Strengths/Weaknesses of Personal Entrepreneurial

Competencies by Cluster

This test is an informal tool that aims to give you some immediate clues on your
entrepreneurial profile.

Answer each item by putting a check mark () under the column that best
describes you.

High Moderate Low

(3) (2) (1)
A. Achievement Cluster
1. Opportunity-seeking
 Scans the environment through interviews
and observations for possible business
opportunities
 Makes a careful study of an opportunity
that has been identified
 Acts promptly to make a plan of action
2. Risk-taking
 Studies carefully the number of risks
involved
 Has the courage to meet risks that go with
a new business
 Takes action to remove or reduce risks
3. Demand for efficiency and quality
 Does things in an organized way

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  Accomplishes a job in a better and faster
way using the least resources
 Does an excellent job per quality
standards
4. Persistence
 Finds solutions to obstacles or problems
 Has the ability to meet challenges in
solving problems
 Takes personal responsibility for any result
or consequence
5. Commitment
 Makes personal sacrifices to achieve
goals
 Strives to work in accordance to standards
 Focuses on set goals and strives hard to
achieve them
B. Planning Cluster
6. Information-seeking
 Seeks information regarding customers’
needs in the marketplace
 Does research on how to come up with a
product
 Consults experts for plans to start a
business
7. Goal-setting
 Sets clear and realistic objectives and
goals
 Sets attainable goals
 Sets achievable long-term goals
8. Systematic-planning
 Plans tasks before doing it
 Breaks large tasks into smaller tasks for
easier implementation
 Revises plans when needed
C. Power Cluster
9. Persuasion and networking
 Establishes a link to other persons and
other groups for business ventures
 Acts to develop and maintain good
relations with others
 Promotes business using social media
platforms to influence others about the

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 product
10. Independence and self-confidence
 Does work as planned
 Sticks with one’s decision after careful
study
 Expresses confidence in one’s ability to
plan and do tasks

Scoring

 There are three sets of scores in this test. These are your scores under
Achievement Cluster, Planning Cluster, and Power Cluster.
 Your score in each cluster will reveal the degree of competency you possess
in each, which could be High, Moderate, or Low. This will appear in your PEC
Profile.

Achievement Planning Power

High 35-45 22-27 15-18
Moderate 25-34 16-21 11-14
Low 15-24 9-15 6-10

Your PEC Profile in Each Cluster

 High - You have predominantly positive personality traits and competencies to

start a successful business in the future. Reinforce these traits and competencies
with more training, reading, and experience in business.
 Moderate – You have many positive traits and competencies that equip you to
start a small entrepreneurial activity. There is a need, however, to improve on
those traits or competencies that have not been fully developed.
 Low – You have the entrepreneurial inclination; however, this is not enough. You
need to develop and strengthen the traits or competencies you lack. Gain
experience with more readings, observations, and by working as a trainee with
successful entrepreneurs.

Entrepreneurial Test 3

Put a check mark () under the column that you think best describes you. Take
time to read and understand each statement and answer honestly as it applies to you.
This will help you discover who you are as a potential entrepreneur in the future.

 High – If you strongly show the characteristic and/or do the practice most of the
time.
 Moderate – If you fairly show the characteristic and/or do the practice
sometimes but not all the time.

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  Low – If you occasionally show or do the practice only once in a while.

Characteristics/Traits High Moderate Low

(3) (2) (1)
1. I always have a strong desire to succeed in
anything I do.
2. I know well my strong qualities or traits and
those weak traits I need to overcome.
3. I do not easily lose interest even if I fail in
what I do.
4. I consider failure as a challenge and an
opportunity to try again.
5. I find ways to enjoy what I am doing and
continue doing it without getting bored.
6. I am willing to work beyond and above
what is required of me without expecting
anything in return.
7. I see to it that I finish a task because I feel
responsible for it.
8. I always keep my things in order and it
irritates me when my surrounding is
disorderly.
9. I love to be with people and enjoy talking
to them.
10. I plan my activities everyday and make
sure I do them.
11. I see to it that I take care of my health whie
working hard to finish the tasks assigned to
me
12. I love to read books and other materials to
be well-informed.
13. I remain calm even if I have problems that
challenge me.
14. I am not afraid to fail in any task I do as
long as I am given a chance to do it again.
15. I am good at convincing others to work for
me or do something for me.
16. I always keep myself in a good mood and
try to keep my sense of humor.
17. I am an innovative person who can
produce something
18. I am interested in going into business

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 someday.
19. I love to experiment or create new things
out of old things or anything I see around
me.
20. I try to weigh the pros and cons of an issue
before I make my decision.
21. I try to be rational than emotional when I
make a decision.
22. I have tried selling things I do not use
anymore or sell food items I can easily
prepare.
23. I believe I can succeed in a business in the
future if given the opportunity.
24. I believe I have an open mind and I am
receptive to change.
25. I find ways to improve on the process when
I am not happy with the way things are
done.
26. I consult others who know better about the
things I am not very good at.
27. I am a person who enjoys creating or
inventing something from old things.
28. I love to experiment with different ways of
doing things like creating new recipes.
29. I like to do things in a systematic and
orderly manner.
30. I am a person who will not hesitate to plan
and try new things even if I know that there
are some risks involved in doing them.
31. I influence other people more than being
influenced by them.
32. I set high expectations for myself in the
things I want to accomplish.
33. I am satisfied with what I can accomplish
for as long as I give myself.
34. I set goals everyday and exert effort to
realize them.
35. I am prepared to do a task even if I know
there is little chance of success.

Scoring

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  The highest score is 105 points and the lowest score is 35 points.
 86-105: You have strong qualities for becoming a successful career person or
entrepreneur in the future.
 61-85: You possess moderately strong qualities that can be a good start for an
entrepreneurial activity or any related job. Your qualities can be further
strengthened through experience and further readings, interactions with experts
in your area, and observations of successful people in the business.
 35-60: There is always an opportunity to strengthen those qualities while you are
in your neophyte years of schooling, what is important is you are aware of those
traits you need to strengthen and have the determination to improve on them.

Action Plan

An action plan is a checklist for the steps or tasks you need to complete in order
to achieve the goals you have set.

It is an essential part of the strategic planning process and helps with improving
teamwork planning. Not only in project management, but action plans can be used
by individuals to prepare a strategy to achieve their own personal goals as well.

Components of an action plan include:

 A well-defined description of the goal to be achieved

 Tasks/ steps that need to be carried out to reach the goal
 People who will be in charge of carrying out each task
 When will these tasks be completed (deadlines and milestones)
 Resources needed to complete the tasks
 Measures to evaluate progress

An action plan includes the following steps:

1. List down the tasks needed to achieve your objectives. Describe the actions that
you will take to achieve your objectives.
2. Establish a time frame for achieving each action.
3. Name the person involved for each action.
4. Cite the expected outcome for each action that you will do.
5. Specify ways to follow up on the action plan to check that the steps are being
carried out.

IV. Transfer

Activities:

 Answer Activity 1 on your textbook (page 15)

 Answer Case Study “Cakes Atbp.” (page 16)
 Answer Activity 3 on your textbook (page 21)

Assessment:

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Explain the following:

1. What is opportunity seeking in entrepreneurship?

2. How do you show persistence in your task as a student?

Enumeration:

Characteristics of an entrepreneur:

1.___________________________________________________________________________________

2.___________________________________________________________________________________

3.___________________________________________________________________________________

4.___________________________________________________________________________________

5.___________________________________________________________________________________

6.___________________________________________________________________________________

Features of an action plan:

7.___________________________________________________________________________________

8.___________________________________________________________________________________

9.___________________________________________________________________________________

10.__________________________________________________________________________________

V. Generalization

1. An assessment of one’s entrepreneurial competencies and skills and PECs aligned

with other successful practitioners will help ensure a successful business idea.

2. PECs include the characteristics, traits, skills, lifestyle, and other attributes of an
entrepreneur who can perceive economic opportunities to create wealth.

3. An action plan is a list of activities and well-defined steps that must be taken to
achieve a specific goal. This plan enables an entrepreneur to prepare the needed
tasks for the self-improvement of one’s PECs or to start a new business venture.

4. Enhancing your entrepreneurial competencies will strengthen your business acumen

in any career option and may bring about significant changes in your life.

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 Lesson 2

Generating Business Ideas and Developing a Product

I. Learning Targets:

 I can generate new business idea;

 I can develop a product/service;
 I can explain what makes a product unique and competitive;
 I can identify what “value” is to the customer;
 I can apply creativity and innovative techniques to develop a marketable
product;
 I can employ a USP to the product/service;
 I can develop a brand for the product; and
 I can create a unique product brand.

II. Explore (Pre-Assessment)

Directions: Read the following statements carefully then choose the letter of the best
answer from the given choices. Write your answers on a separate sheet of paper.
1. It is defined as the process of conceptualizing, designing, creating, producing,
introducing, and delivering new products and services to consumers.

A. Product C. Services

B. Product Development D. Product Specification

2. It involves continuous search for new product opportunities.

A. Business Idea C. Business Plan

B. Generating a new product idea D. Business Analysis

3. USP is means:

A. Unique Service Proposition C. Unique Selling Price

B. Unique Selling Preposition D. Unique Selling Proposition

4. Which of the following criteria for new products is correct?

A. There must be inadequate market demand.

B. The product must satisfy key financial criteria.

C. The product does not fit to company’s marketing structure.

D. The product is not profitable.

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5. This stage involves the production of new products and includes budgeting for
advertising, personal selling, and sales promotion among others.

A. Contribution C. Commercialization

B. Centralization D. Corporation

III. Firm up (Lecture and Discussion)

Generating Business Ideas and Developing a Product

In this lesson, you will be able to select a business idea that may help you create
a product/or service for the customers in the environment. Your experiences and skills
can help you develop new and different ways to use existing products in the market.
This can lead you to economic prosperity as the other successful entrepreneurs that
have done it before you.

Some people would like to go into business but are somewhat unsure as to what
type of product to sell or what sector to serve. Many options are available for you to
select but only one will prevail, that is, something close to your heart or one that you
can easily manage. You have to make a clear decision on what you want from a
business and what you can share in terms of your experience and personal efforts.

You have to focus on whether you will engage in service, trade, manufacture, or
other forms of business. To find the business that is just right for you, start making a long
and shortlist of business opportunities that you like.

Business Ideas

A business idea is a concept which can be used for commercial purposes. It

typically centers on a commodity or service that can be sold for money, according to a
unique model. There are several methods for developing and testing a business idea.
The ability to come up with a business idea can be transformed into a viable business,
where ideas supported by feasibility and a business plan can then be sold to interested
investors, firms, and interested parties for a lump sum or a management contract, or as
agreed. Business ideas, if introduced at the right time, when demand for such service or
a product introduced by the idea is expected to surge, can lead to a very profitable
business. Business ideas are always available through different sources; however, it is the
application applied on these ideas, and timing makes all the difference in failure or
success.

An idea that is worth a business should be one that has a market in the present
and the future. The idea could be a product, service, system, or others, many of which
could fall in any of the following:

A. Create a new product or service for a new market

B. Create some new value for a product for the customers.
C. Create a new market segments for your product/service.

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 D. Create a unique and strong competitive product.
E. Introduce a new product based on your interest, talent, ability, and
preferably, passion.
F. Introduce joint products/services in new ways.
G. Introduce a simple, cost-effective solution to some problems.
H. Make use of the businesses left behind by big companies.
I. Make use of the new trends in technology in creating your product.

Steps in Selecting Business Idea

The following steps can help you find, select, and develop business ideas:

 Recognize a need for the product or service. The ability to recognize a need
demands research, professional experience, gut feeling, and personal
experience.
 Improve an existing product. This scenario could open an opportunity to
introduce an innovation or improvement that could lead to new or improved
product specifications.
 Recognized trends. By understanding the types of market trends, you can
distinguish what makes sense for your business. This focused analysis helps you
adapt and stay competitive in any rapidly changing business environment.
 Read, research, and interview people. Be fully informed and updated on current
events and socioeconomic developments, including product development
news on the internet.
 Question assumptions. This includes challenging oneself and avoiding the status
quo. Being an inquisitive person may lead to new ideas, products/services and
even a new venture.

Criteria in Selecting a Business Idea

The process of selecting a business idea is not a simple process. Some people
come up with a bunch of business ideas that are not really feasible. There are two
problems that arise: first is the excessive generation of ideas that can forever remain as
dreaming stage and the second is when they don’t have ideas and don’t want to
become entrepreneurs.

The most optimal way is to have a systematic approach in generating and

selecting a business idea that can be transformed into a real business. To select business
ideas, here are the following factors or resources:

1. Markets. Analyze the number of prospective buyers, the presence of

competitors, and the prices and quality of goods and services.
2. Capital. Money is important in putting up a business. The availability of funds
should fit the type of business to be established.
3. Skills. The entrepreneur should have the necessary skills in the business that
he/she will undertake.

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 4. Suppliers. There should be sufficient suppliers of raw materials and other inputs of
the business.
5. Individual interests. The business interests of individuals vary. Interests should
match business opportunities.
6. Technology. Entrepreneurs should be aware of the presence of technology,
particularly new technology needed to improve products or services. or
introduce new ones in the market.
7. Manpower. Make sure that experts or trained personnel are available to make
business feasible. The success of the business also depends on the efficiency of its
employees.

Examples of Business Ideas/Opportunities by Category

1. Accessories – men’s and women’s accessories, baby accessories, home

accessories, and office accessories.
2. Agriculture and fisheries – meat and poultry products, fruits and vegetables,
fish and other kinds of seafood, cut flowers, plants and nurseries, animal
feeds, poultry, and hog raising.
3. Cleaning materials – soaps and detergents, floor waxes and polishing
compounds, personal hygiene needs, and all accessories used for cleaning.
4. Clothing and textile – textile and clothing products, personal clothing and
accessories, fashion accessories, household clothing items, clothing and
accessories production, dressmaking and tailoring, trading, and selling
clothing items.
5. Education – school supplies and equipment, publishing, learning activities,
tutoring and teaching, special schools, daycare centers, and production of
learning equipment.
6. Food and food service – food products and production, food items, fast food,
bakeries and pastries, restaurants, mobile kiosks, take outs, and food delivery.
7. Handicrafts – all handicrafts and products made of wood, paper, leather,
metal, stone, and other materials, embroidery, and weaving.
8. Health and health services – personal care items, health products and
supplements, caregiving and related services, spa, therapy, special clinics,
medicines, and drugs.
9. Home furnishings – all products for kitchen, bedroom, living rooms, and other
accessories.
10. Housing – building and specialized skills in house construction and
refurbishing.
11. Transportation and communication – transportation and communication
supplies and services, transport vehicles and services, auto services, and
repair shops.

Answer Activity 1 on your textbook (page 30)

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Product Development

When we talk about product development, we are referring to a process of

making a new product to be sold by a business or enterprise to its customers. Product
development may involve modification of an existing product or its presentation, or
formulation of an entirely new product that satisfies a newly-defined customer’s needs,
wants and/or a market place.

The term development refers collectively to the entire process of identifying a

market opportunity, creating a product to appeal to the identified market, and testing,
modifying, and refining the product until it becomes ready for production.

Guided by a company’s new product strategy, a new product is best

developed through six stages, namely:

1. Generating a new product idea. It involves continuous search for new product
opportunities.
2. Screening ideas. In this process, the greater potential ideas are selected for
further development. Ideas deemed poor or unsuitable are rejected.
3. Business analysis. In this stage, the management (a) identifies the product
features; (b) estimates the market demand; (c) establishes a program to
develop the product; and (d) assigns responsibility for further study of the
product’s feasibility.
4. Product development. This stage focuses on the production of the new product
into a tangible form, from concept, to test stage, to development and
marketing.
5. Market tests. This stage refers to the limited introduction of the product in the
areas chosen to represent the intended market to know the possible buyers’
reactions to the new product/s. It is a simple launching of the entire marketing
process.
6. Commercialization. The new product is introduced in the market. This involves
expenses for advertising, personal selling, and sales promotion.

Read Example of a Product Development Process in Dressmaking on your textbook

(page 32-36)

Unique and Competitive Product/s

More consumers are concerned about the quality of the natural environment. To
preserve the natural environment, more “green products” have been introduced to
satisfy a growing number of consumers. The following are examples of green
products:

A. Building panels made of recycled materials such as corrugated cardboard

and plastics.

21
 B. Steel-wool soap pads that include plastic fibers from recycled bottles as well
as phosphorus-free soaps.
C. Converting PET bottles into clothing, hybrid down, and 3D knitwear.
D. A fiber and textile company’s technology that can turn seawater into
freshwater and recycle plastic bottles into polyester fibers that can be made
into an innovative, super soft, light, and comfortable fabric that quickly wicks
sweat and moisture away from the body.

Innovative Techniques to Develop Marketable Products

 There must be adequate market demand. A product must meet the needs of
the consumers.
 The product must satisfy key financial criteria. Questions that should be asked
are: “Is adequate financing available?” “Will the new item reduce seasonal
fluctuations in the company’s sales?” and “Can we make a sufficient profit with
the product?”
 The product must be compatible with environmental standards. The product
should not be harmful to the environment.
 The product must fit the company’s present marketing structure. Questions
related to these criteria include: “Can the existing sales force be used?” and
“Can the present channels of distribution be used?” For a product to be
deemed marketable, it must:
A. keep to the company’s objective and image;
B. be compatible with the firm’s production capabilities; and
C. Satisfy pertinent legal requirements.

Unique Selling Proposition (USP)

Unique Selling Proposition is a strategy used by businesses to encourage

customers to buy from them and not from their competitors. Before you can begin to
sell your product or service to your target customers, you have to sell yourself in it. This is
especially important when your product or service is similar to your competitors.

USP requires careful analysis of other businesses’ ads and marketing messages. If
you analyze what they say or what they sell, not just their product or service
characteristics, you can learn a great deal about how companies distinguish
themselves from competitors.

What your
brand can
offer

What the What your

consumer competitor’s
wants brand offer 22
 The guidelines in making a USP are the following:

1. Determine your target customers. Know what benefit/s you can give if they buy
your product.
2. Think of ways in which your product can help solve their problems. To potential
clients, the benefits of your product are more important than the features.
3. To encourage people to buy your product, you can offer a guarantee once they
buy it. Customers can change or return the product if it malfunctions within
seven days from the date of purchase.

Digital Marketing

Any marketing that uses electronic devices to convey promotional messaging

and measure its impact. In practice, digital marketing typically refers to marketing
campaigns that appear on a computer, phone, tablet, or other device. It can take
many forms, including online video, display ads, and social media posts. Digital
marketing is often compared to “traditional marketing” such as magazine ads,
billboards, and direct mail. Oddly, television is usually lumped in with traditional
marketing.

The following are some of the best ways you can market online:

A. Search engine optimization. You make your website friendly for online
advertisements, which will allow you to send promotional content of your
product/s to the target audience.
B. Search engine marketing. You can use paid search, such as pay per click
listings and advertisements to connect to users.
C. E-mail marketing. You can increase the effectiveness of your e-mail
campaigns by using personalization.

Examples of Unique Selling Proposition (USP)

 M&M’s

“The milk chocolate melts in your mouth, not in your hand.”

23
  Head & Shoulders

“Clinically proven up to 100% dandruff protection.”

 The North Face

“Products that last a lifetime.”

Answer Activity 2 on your textbook (page 41)

Brands

The term brand refers to a business and marketing concept that helps people
identify a particular company, product, or individual. Brands are intangible, which
means you can't actually touch or see them. As such, they help shape people's
perceptions of companies, their products, or individuals. Brands often use identifying
markers to help create brand identities within the marketplace. They provide enormous
value to the company or individual, giving them a competitive edge over others in the
same industry. As such, many entities often seek legal protection for their brands by
obtaining trademarks.

Benefits of a Good Brand

 Brands help target customers in identifying the products offered for sale in the
marketplace and make it possible to secure a standard quality. Usually, a
branded product is superior to a non-branded one.

24
  Branded articles enjoy prestige in the minds of consumers, thereby increasing
brand loyalty and shared values of the product/s.
 Brand loyalty reduces marketing costs because it is cheaper to retain old
customers than to gain new ones. Satisfied customers can result in powerful
word-of-mouth awareness which can reassure new customers. (Go, 1996)

Steps in Developing a Brand

1. Use something short, simple, easy to remember, and easy to pronounce.

2. Choose an appropriate name fits the product.
3. Focus the rand name on the quality of the product that may persuade
customers to buy it.
4. Adopt on attractive logo that must also be reflected in the packaging.
5. Register brand names and make them visible on websites, mobile
applications, and other social media platforms.
6. Convey a brand message with value-added benefits for the customers.

Examples of brand tagline:

 Alaska – “Wala paring tatalo sa Alaska.”

 LBC – “Hari ng padala.”
 Max’s Restaurant – “Sarap to the bones!”
 Mega Sardines – “Tatak barko. Tatak sariwa!”
 Meralco – “May liwanag ang buhay.”

Designing your Logo

A logo is a graphic mark, emblem, symbol, or stylized name used to identify a

company, organization, product, or brand. It may take the form of an abstract or
figurative design, or it may present as a stylized version of the company’s name if it has
sufficient brand recognition.

Logos have become an integral part of companies' brand identities. A widely

and instantly recognized logo is a valuable intangible asset for a corporation and is thus
trademarked for intellectual property protection in the majority of situations.

25
IV. Transfer

Essay.

1. Describe the qualities of a unique product brand.

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

2. Explain the stages of product development.

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

3. Expound on why some firms sell identical products under more than one of their own
brands.

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

4. Why do products need a brand?

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

5. How will you describe a unique product brand?

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

Answer Performance Task on your textbook (page 46)

V. Generalization

1. Innovative products are unique. These new products are also categorized as
replacements for products with less demand and are not profitable in the market
place.
2. Brand refers to a name, term, symbol or design, or a combination of them that
identifies the goods or services of one seller and distinguishes them from the
other similar products.
3. The use of brand names contributes to product differentiation and provides
consumers legal protection in the marketplace.

26
 4. Observing the steps in choosing a brand name will help increase sales in
marketing new products.
5. USP is a strategy used by businesses to encourage customers to buy from them
and not from their competitors.

Lesson 3

Cash Flow Management

I. Learning Targets:

 I can define what a cash flow is;

 I can cite the importance of cash flow;
 I can explain how to build a positive cash flow;
 I can show how to keep track of cash inflows and outflows; and
 I can make a simple cash flow statement.

II. Explore (Pre-Assessment)

Directions: Write True if the statement is correct or False if the statement is incorrect.
_______1. Cash flow tells you how much cash is coming in and how much is going out.

_______2. Selling some assets or borrowing money from the bank helps in improving the
cash flow.

_______3. Income is represented in cash flow as cash in.

_______4. All operating expenses are considered positive cash-out.

_______5. Negative cash flow means the business cannot pay its debts or obligations.

III. Firm up (Lecture and Discussion)

What is Cash Flow?

Cash flow is the net amount of cash and cash equivalents being transferred into
and out of a business. Cash received represents inflows, while money spent represents
outflows.

At a fundamental level, a company’s ability to create value for shareholders is

determined by its ability to generate positive cash flows or, more specifically, maximize
long-term free cash flow (FCF). FCF is the cash that a company generates from its
normal business operations after subtracting any money spent on capital expenditures
(CapEx).

Why Cash Flow Important?

Cash flow is important in any endeavor, be it personal, family, or in business,

because it is an indication whether the operations of any of these entities are

27
succeeding or failing. For instance, we know that when operating a business, the
primary goal is for the business to make money and be profitable. In the course of
doing a business, there will be operating expenses that will be incurred in connection
with the business operations. If the business is to generate profit, the operating expenses
should be less than the revenue or income.

Building a Positive Cash Flow

A business is healthy when there is a positive cash flow, which means that the
business has enough funds to pay its obligations. A business is not healthy when there is
a negative cash flow, which means that it is not doing well because it is experiencing a
cash shortage over a particular period. However, this can be temporary and the
business can recover in due time when the sale of its products increases in the following
period or when it can collect some delayed payments for some of the products sold
previously on credit to some customers.

If the business, however, is experiencing negative cash flow over a long period,
it’s an indication that it is not doing well and may go eventually bankrupt. Similarly,
when a family’s income is not enough to meet the family’s expenses, the family will
either resort to borrowing or will have to cut down on some of its expenditures. This
means learning to sacrifice or delay gratification or, if the family resorts to borrowing,
facing the consequences of having to pay the debt, thus affecting the future income
of the family. The key here is to build a positive cash flow, which is to build a system with
more cash inflows than cash outflows. One should be able to do this properly by:

A. ensuring expenses are incurred only when necessary and at the proper
time;
B. settling liabilities or debts at the most reasonable period both for the
family or business and its creditors; and
C. putting aside a part of the income or revenues as savings so that a
contingency fund is set up.

A contingency fund is an amount of money set aside to meet unexpected

events requiring funding. Timing is very important in the management of cash flow.

Making a Cash Flow Statement

A cash flow statement shows the amount of cash available to settle obligations.

Read Cash Flow Statement Samples on your textbook (page 52-53).

IV. Transfer

Activities:

 Answer Activity 1 on your textbook (page 53).

 Answer Activity 2 on your textbook (page 54).
 Answer Performance Task on your textbook (page 57).

28
Explain.

1. Why timing is very important in cash flow?

_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________________

2. Why cash is considered as the lifeline of business?

_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________________

3. How can you maintain a positive cash flow with your school allowance? Suggest
three ways.

_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________________

V. Generalization

1. In any business, cash flow allows one to know whether the business will have enough
money to fund its operations, not only in the short term but for a long period.

2. Cash flow primarily tells you the amount of cash on hand available for settling the
business’ debts and obligations. It indicates if the business is healthy or not, which will
affect its profitability in the long run.

3. Cash flow information will show the business what possible alternative solutions it can
take if in case, the cash available is in excess or short of the requirement.

4. It is important in cash flow to know all the details of the operating income or source of
funds and operating expenses.

5. Timing is very important in cash flow. One should be able to project when to borrow
money to fill the shortfall of cash or when to invest the excess money. If there is any,
borrowing m oney and investing will cause interest. Either one pays interest when
borrowing or earns interest income when investing.

Lesson 4

Savings and Investment

I. Learning Targets:

 I can define savings and investment;

 I can cite why there is a need to save and invest;

29
  I can enumerate ways to save and invest; and
 I can appreciate savings and investments in your life.

II. Explore (Pre-Assessment)

Direction: Write True if the statement is correct and False if the statement is incorrect.

________1. Savings accounts are considered as investments.

________2. In mutual funds, return or profit is guaranteed.

________3. The bank is the best place to save your money if your goal is safety and
security for your money.

________4. When the prices of consumer goods increase because of inflation, the value
of your investment increases.

________5. Time deposits are considered as medium-risk investments.

________6. Real estate properties are good investments because they are more stable
and hardly lose in value.

________7. When investing in real estate, the major consideration is that it has good fair
market value.

________8. Depreciation of a real estate property diminishes its value.

________9. It is important to know the risks before investing your money.

________10. Stock prices change very often because they are generally affected by
supply and demand.

III. Firm up (Lecture and Discussion)

Savings and Investments

Savings refers to the money that a person has left over after they subtract out
their consumer spending from their disposable income over a given time period.
Savings, therefore, represents a net surplus of funds for an individual or household after
all expenses and obligations have been paid.

Savings are kept in the form of cash or cash equivalents (e.g. as bank deposits),
which are exposed to no risk of loss but also come with correspondingly minimal returns.
Savings can be grown through investing, which requires that the money be put at risk,
however.

Investment is the act of allocating resources, usually money, with the

expectation of generating an income or profit. You can invest in endeavors, such as

30
using money to start a business, or in assets, such as purchasing real estate in hopes of
reselling it later at a higher price.

The Need to Save and Invest

One of the basic principles in managing your money, whether you are in business
or earning from employment, is to have a financial plan for future. The best way to
prepare for your future is to develop the habit of saving money. Saving money
develops discipline in managing your finances; provides financial independence; and
gives peace of mind, especially in cases of emergencies or unforeseen expenses. Also,
when you retire from work or business and are now without a steady source of income,
have enough savings can help carry you thru the remaining years of your life. That is
why while you are still young, productive, and have a steady source of income, you
should allocate some extra money from your income as your savings.

On the other hand, investing money is a bit more adventurous than saving
because it entails some risks and, at the same time, involves in most instances, bigger
amounts of money. The advantage of investing however is that it promises a higher
return for your money than savings as long as you choose the right type of investment
tool. A higher return means more savings for the future.

Ways of Saving and Investing

1. Bank Time Deposit

A time deposit is an interest-bearing bank account that has a pre-set date of
maturity. A certificate of deposit (CD) is the best-known example. The money must
remain in the account for the fixed term in order to earn the stated interest rate.

Time deposits generally pay a slightly higher rate of interest than a regular
savings account. The longer the time to maturity, the higher the interest payment will
be.

Another name for this type of investment is term deposit.

2. Government Bonds/Treasury Bills

Government bonds or treasury bills are monetary instruments offered by the
government in the financial market for people who are willing to invest their money
with low risk and a fairly better return than putting your money in the bank as savings or
a time deposit. It is a low-risk investment because the government is guaranteeing it.
The only risk is if the government goes bankrupt and has no money to pay back the
investor. However, the probability this will happen is very low.
3. Real Estate

Real estate investing refers to the purchase of property as an investment to generate

income rather than using it as a primary residence. In simple terms, it can be

31
understood as any land, building, infrastructure and other tangible property which is
usually immovable but transferable.

4. Mutual Funds or Unit Investment Trust Funds

A mutual fund is a company that pools money from many investors and
invests the money in securities such as stocks, bonds, and short-term debt. The
combined holdings of the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s part ownership in the
fund and the income it generates.

5. Stock Market or Equity Market

The stock market refers to the collection of markets and exchanges where
regular activities of buying, selling, and issuance of shares of publicly-held
companies take place. Such financial activities are conducted through
institutionalized formal exchanges or over-the-counter (OTC) marketplaces which
operate under a defined set of regulations. There can be multiple stock trading
venues in a country or a region which allow transactions in stocks and other forms of
securities.

IV. Transfer

 Answer Activity 2 on your textbook (page 70).

Explain.

1. What are the importance of savings and investments?

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

2. How do savings affect the future of an individual?

_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________________

3. Why is it important to be knowledgeable and well informed before going into an

investment?

_____________________________________________________________________________________
_____________________________________________________________________________________
___________________________________________________________________________________

V. Generalization

32
1. Savings is setting aside a portion of an income, earnings, or allowance at home or in
banks. Investment is the process of putting money in an investment instrument where it
can earn interest for a period of time.

2. There is a need to save or invest to develop discipline in handling finances, provide

financial independence, and give peace of mind for the future.

3. Ways of saving include saving at home or in banks. Ways of investing include time
deposits in banks, government bonds, real estate, mutual funds, and stock markets.

33