This module contains two (2) lessons, namely:

LESSON 3: MARKETING STRATEGIES

LESSON 4: THE 4M’s OF OPERATIONS
At the end of this module, the student is expected to:
 recognize the importance of marketing mix in the development of marketing strategy;
 describe the Marketing Mix (7P’s) in relation to the business opportunity vis-à-vis: product; place;
price; promotion; people; packaging; and positioning;
 develop a brand name;
 demonstrate understanding of the 4M’s of operations;
 describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to the
business opportunity;
 develop a product description;
 create a prototype of the product;
 validate the service description of the product with potential customers to determine its market
acceptability;
 select/pinpoint potential suppliers of raw materials and other inputs necessary for the production
of the product or service; and
 discuss the value/supply chain in relation to the business enterprise.

General Instructions: Answer all the activities on this module. Use separate sheets of paper
for your answers.
Activity I CATEGORY P. Write nine (9) words that are related in the category, starting with the
given letter “P”. Our category is about business marketing and since this module is about 7P’s,
we will use only the letter “P” in listing words.
1. ___________________ 4. ___________________ 7. __________________
2. ___________________ 5. ___________________ 8. __________________
3. ___________________ 6. __________________ 9. __________________

A start up or a company’s strategy combines all of its marketing goals into one
comprehension plan. A good marketing strategy should be drawn from market research and
focus on the product mix in order to achieve maximum profit and sustain the business. The
marketing strategy is the foundation of a marketing plan.
The following questions will help in formulating the marketing strategies:
1. Who is producing similar products:
2. Where are the competitors located?
3. What is the quality and price of their products?
4. What I can do to make a new product that is better than those of the competitors?
5. Why would customers or consumers want to change to a new product?
6. What offers or incentives do competitors give to retailers?
7. What are competitors likely do if a new product is introduced?

After developing a marketing strategy, there is a “Seven P Formula” that can be used to
continually evaluate and re-evaluate the business activities. These seven are: product, price,
promotion, place, packaging, positioning and people. As products, markets, customers and
needs change rapidly, it is a must to continually revisit these seven P’s to ensure the business is
on track and achieve the maximum results possible in today’s marketplace.
THE 7P’s IN BUSINESS OPPORTUNITY
1. Product. To begin with, develop the habit of looking at the product as an outside marketing
consultant brought in to help the company decide whether or not it is in the right business at this time.
Ask critical questions such as, “Is the current product or service, or mix of products and service,
appropriate and suitable for the market and for the customers of today?”
A. Whenever there is difficulty selling as much as the products or services as planned, there is a
need to develop the habit of assessing the business honestly and asking, “Are these the right
product or services for the customer today?”
B. Compared to the competitors, is the product or service superior in some significant ways to
anything else available? If so, what is it? If not, could it be developed to an area of superiority?
Should this product or service be offered at all in the current marketplace?
2. Price. The second P in the formula is price. Develop the habit of continually examining and re-
examining the prices of the products and services to sell for making sure they are still appropriate to the

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Subject: Entrepreneurship - Module 2
realities of the current market. Sometimes there is a need to lower the prices. At other times, it may be
appropriate to raise the prices. Many companies have found that the profitability of certain products or
services does not justify the amount of effort and resources that go into producing them. By raising their
prices, they may lose a percentage of the customers, but the remaining percentage generates a profit on
every sale.
3. Promotion. The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways to tell the customers about the products or services and how to market
and to sales. Small changes in the way the product is promoted and sold will lead to dramatic changes in
the results. Even small changes in the advertising can lead to immediate higher sales.
Large and small companies in every industry continually experiment different ways of advertising,
promoting, and selling the products and services. Here is the rule: Whatever method of marketing and
sales is being used today will, sooner or later, stop working. Sometimes it will stop working for known
reasons, and sometimes it will be for unknown reasons. In either case, the methods of marketing and
sales will eventually stop working, and will necessitate developing new sales, marketing and advertising
approaches, offerings and strategies.
4. Place. The fourth P in the marketing mix is the place where the product or service is actually
sold. Develop the habit of reviewing and reflecting upon the exact location where the customer meets the
salesperson. Sometimes a change in place can lead to a rapid increase in sales.
Sell the product in many different places. Some companies use direct selling, sending
salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell
through catalogs or mail order. Some sell at trade shows or in retail establishments. Some sell in joint
ventures with other similar products or services. Some companies use manufacturers’ representatives or
distributors. Many companies use a combination of one or more of these methods.
5. Packaging. The fifth element in the marketing mix is the packaging. Develop the habit of
standing back and looking at very visual element in the packaging of the product or service through the
eyes of a critical prospect. Remember, customers form the first impression within the first 30 seconds of
seeing the product or some elements of the company. Small improvements in the packaging or external
appearance of the product or service can often lead to completely different reactions from the customers.
With regard to the packaging of a company, a product or a service, think in terms of everything
that the customer sees from the first moment of the contact with company all the way through the
purchasing process.
Packaging refers to the way the product or service appears from the outside. Packaging also
refers to the people and how it is dressed and groomed. It refers to the offices, the waiting rooms, the
brochures, the correspondence and every single visual element about the company. Everything counts.
Everything helps or hurts. Everything affects the customer’s confidence.
6. Positioning. The next P is positioning. Positioning develops the habit of thinking continually
about how the products are positioned in the hearts and minds of your customers. How do customers
think and talk about the products even if it not present? How do customers think and talk about the
company? What positioning does it have in the market, in terms of the specific words people use when it
is described and offered to the others?
7. People. The final P of the marketing mix is people. Develop the habit of thinking in terms of
the people inside and outside the business who are responsible for every element of the sales, marketing
strategies, and activities.
It is amazing how many entrepreneurs and businesspeople will work extremely hard to think
through every element of the marketing strategy and the marketing mix, and then pay little attention to the
fact that every single decision and policy has to be carried out by a specific person, in a specific way. The
ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the needed job
to have done, is more important than everything else put together.
In his best-selling book, Good to Great, Jim Collins discovered the most important factor applied by the
best companies was that they first of all “got the right people on the bus, and the wrong people off the
bus.” Once these companies had hired the right people, the second step was to “get the right people in
the right seats on the bus.”
To be successful in business, you must develop the habit of thinking in terms of exactly who is
going to carry out each task and responsibility. In many cases, its not possible to move forward until you
can attract and put the right person into the right position. Many of the best business plans ever
developed sit on shelves today because the {people who created them} could not find the key people who
could execute the plans.

DEVELOPING A BRAND NAME

For a new business, creating and effectively marketing a new brand name is one of the most challenging
aspects of starting a business.
For a new business, creating and effectively marketing a new brand name is one of the most challenging
aspects of getting out of the proverbial starting blocks.
Choose the wrong name and customers have no idea what your business stands for or what it does.
Choose the right name and customers immediately identify with your value proposition. It is an important
step.
THE SIGNIFICANCE OF THE BRAND NAME
Brand name will always be incredibly important even if progressive business experts claim that
the significance of brand names is fading. As an entrepreneur, therefore it is important that you spend a
considerate amount of time and effort developing your brand name.

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Subject: Entrepreneurship – Module 2
 HOW TO DEVELOP A BRAND
If you are ready to brand your business, you need to have a clear understanding of what
developing a brand actually involves before you really get started. Your brand development
process should always follow these major steps:
1. Decide what is going to be brand. It is branding a product, a service, a company, or an individual.
2. Do the research. First, find out everything there is to know about the market. Then, find out everything
there is to know about the product or service.
3. Position the product or service. Find and win a place for the offering in the marketplace and in
consumers’ minds by providing us unique solutions to problems or needs that aren’t already being
addressed by competing products.
4. Write the brand definition. The brand definition described what is to offered, why is it offered, how the
offering is different and better, what unique benefits the customers can count on, and what promise or set of
promises will make all who work with and buy from the business.
5. Develop the name, logo and tagline. The name is the key that unlocks the brand image in the consumer’s
mind. The logo is the brandmark or symbol that serves as the face of the brand. The tagline is the
memorable phrase that provides consumers with a quick indication of the product, brand, and market
position.
6. Launch the brand. The brand goes public when the name, logo and slogan is unveiled, and when it begins
to tell the market the story of how the brand reflects what it stands for.
7. Manage, leverage, and protect the brand. This is the “care and feeding” phrase of the branding process;
it is the step that leads to a strong, healthy, resilient brand. Just like good parenting, good branding
management can be summed up in a single word – consistency.
8. Realign the brand to keep it current. Occasionally, it can (and should) change how the brand is
presented. From time to time, there is a need to update the brand presentation (the face of the brand) to
keep it relevant to the market in which it lives.

Activity II THE POWER OF COLOR. For each color below, draw a company logo or product
that comes into your head first.
red
blue
green
black

Activity III
A. VICINITY MAPPING. Create your business vicinity map that is reflective of your own
potential market in one’s locality or town. Consider the feasibility of the place and the 7Ps
discuss in this module.
Rubrics for Scoring:
Description Score
The illustration of the vicinity map is complete and clear. 50
The Illustration of the vicinity map is complete. 45
The illustration of the vicinity map is lacking 1 40
The illustration of the vicinity map is lacking 2 35
The illustration of the vicinity map is lacking 3 30

B. PASTE THE P’s. Choose five (5) on the 7Ps and cut pictures from magazines or
newspapers that are related to it. Write a short description on each picture.

PICTURE 1 DESCRIPTION
PICTURE 2 DESCRIPTION
PICTURE 3 DESCRIPTION
PICTURE 4 DESCRIPTION
PICTURE 5 DESCRIPTION

Rubric: Content: 2%, Understanding: 2%, Application: 1%

Activity IV BRANDING STRATEGY. Choose a branding strategy to use on your own product
or service and briefly explain why you have chosen it.
Excellent – 20 pts. Average – 15 pts. Good – 10 pts.
The learner’s answer the questions The learner’s answer is The learner’s answer is not well
Ideas/Content clear and focused. Relevant details understandable even though the defined and/or too many
were given. statement is general or basic. irrelevant details.

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Subject: Entrepreneurship – Module 2
 The form and presentation of the The form and presentation of the The form and presentation of the
answer enhances the ability for the answer is understandable in the answer is seldom
Presentation
reader to understand and connect with format. understandable and not explain it
the message. broadly.

Activity V PICTURE GUESS. Given with following pictures below, fill the following
blanks to form word(s). (2 points each)

__ __ c __ __ n e M __ __ p __ __ __ r

__ e __ h __ __ M __ __ e r __ __ __ s

If sales are the engine that powers Auto Savage yards,

then Production is the drive train that gets us where we are going.
Production is both reactive and proactive almost simultaneously.
It reacts to what is sold today and must meet the expectations set
by the sales team. It must also anticipate what most likely will be
needed in the near future. The key for production is to have
procedures and processes that can accomplish both. Once the
procedures and processes that can accomplish both. Once the
procedures are set up to maximize efficiency, it is time to train the
production staff on their individual responsibilities centered on the 4’Ms of Production.
4M’s of Production
1. Use the Inventory Management System to establish what is needed and at what inventory stock
levels impacts the first M-Method. Based on what is known, the manager can determine the
volume of cars that need to be processed and who will be responsible for each step of the
process. The manager will determine the most efficient way for each part of the process to be
done to eliminate damage to the product and to eliminate areas where time and manpower are
wasted. Controlling waste is the key to efficient and profitable production.
2. The second M is Manpower. When examining the Methods which are now in place, what is the
ideal number of people it will take to perform these methods and what positions they should be
in? How will the personnel be trained and measured for performance? What is the “cycle time”
of each part of the Method?
3. Machine is the Third M in the sequence. When examining the facilities, vehicles and tools, is
everything needed in place to ensure the safety of the employees while maximizing the efficiency
and productivity of the department? Do all employees have access to the same tools and
equipment if needed? Do the tools enable them to perform tasks independently? Are they trained
on how to maintain the machinery and tools?
4. Material is the last portion of the M’s of Production. Are the materials needed is in place to
perform all parts of production and are they conveniently located to minimize waste? Example:
All material needed to clean and package are always available and are in place to minimize effort.
Does the layout of the production department minimize wasted movement? Example: Does the
part flow go in one direction or does it zigzag throughout your facility?
Measuring Production
Once the new processes are formalized and employees are trained on how to perform,
you can begin to measure for expected performance and begin enforcing minimums. Do get
also production standards and implementation procedures. Once these standards are known,
the manager is responsible in figuring out how to motivate (by means of money/recognition) and
train the employees to reach these new standards.
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Subject: Entrepreneurship – Module 2
Production or Technical Feasibility
Once an entrepreneur has found information about potential consumers, their
requirements and the likely share of the market that could be obtained for a new product, it is
then necessary to assess whether production at this scale is technically feasible.
The series of questions below is helpful in deciding technical requirements of the
business:
1. Are enough raw materials of the correct quality available when needed for year-round production?
2. Is the cost of the raw materials satisfactory?
3. Are the correct size and type of equipment available for the expected production level and is it at a
reasonable cost?
4. Can it be made by local workshops? Are maintenance and repair costs affordable?
5. Are sufficient information and expertise available to ensure that the food is consistently made at the required
quality?
6. Are suitable packaging materials available and affordable?
7. Are distribution procedures to retailers or other sellers established?
8. Is a suitable building available? What modifications are needed?
9. Are services (fuel, water, electricity, etc.) available and affordable?
10. Are trained workers available and are their salaries affordable?
Contents of Production or Technical Feasibility
1. Production Planning
This plan should indicate how the different stages in a process are linked together. It should
identify any ‘bottlenecks” in the process, the equipment that is required for each stage and where quality
assurance procedures should be used.
The date that has been found from market surveys is added to the process chart to indicate the
scale of production that is required.
A chart is prepared and used for planning a number of different aspects of the production
process.
2. Raw Materials and Ingredients
There are two stages involved in planning the amounts of materials that are needed to produce
the required weight of product. It is necessary to calculate the amount of each ingredient that will be
needed to formulate a batch of product. Further, it is necessary to calculate the amount of loses that can
be expected during preparation.
3. Equipment required
The decisions on equipment requirements are influenced by the:
3.1 The cost and availability of machinery;
3.2 The availability of people who are skilled in maintenance and repair; and
3.3 The availability and cost of spare parts and the possibilities of local equipment fabrication.
4. Packaging
Selection of packaging materials frequently causes the largest problems for small producers and
is often the main cause of delay in getting a business established.
Considerations include the following:
4.1 The technical requirements of the product for protection against light, crushing, air, moisture, etc.;
4.2 The promotional and marketing requirements; and
4.3 The relative cost and availability of different types of packaging, professional advice should be sought from
packaging specialists or agents of packaging manufacturers.
5. Staffing Levels
Decisions on the number and types of workers that are required to operate the proposed
business are taken in conjunction with decisions on equipment procurement.
It is possible to break down the production into different stages and then decide the number of
people that will be needed for each stage of the process.
It is important also to include functions such as store management, quality assurance and
bookkeeping when planning employment levels.

Prototyping
Prototyping is the process of building a model of a system. In terms of an information
system, prototypes are employed to help system designers build an information system that
intuitive and easy to manipulate for end users. Prototyping is an iterative process that is part of
the analysis phase of the systems development life cycle.
During the requirements determination portion of the systems analysis phase, system
analysts gather information about the organization's current procedures and business processes
related the proposed information system. In addition, they study the current information system,
if there is one, and conduct user interviews and collect documentation. This helps the analysts
develop an initial set of system requirements.
Prototyping can augment this process because it converts these basic, yet sometimes
intangible, specifications into a tangible but limited working model of the desired information
system. The user feedback gained from developing a physical system that the users can touch
and see facilitates an evaluative response that the analyst can employ to modify existing
requirements as well as developing new ones.
Prototyping comes in many forms - from low tech sketches or paper screens from which
users and developers can paste controls and objects, to high tech operational systems using
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Subject: Entrepreneurship – Module 2
CASE (computer-aided software engineering) or fourth generation languages and everywhere in
between. Many organizations use multiple prototyping tools. For example, some will use paper
in the initial analysis to facilitate concrete user feedback and then later develop an operational
prototype using fourth generation languages, such as Visual Basic, during the design stage.
Supplier
An entity that offers goods and services to another business. This entity is among of
supply chain of a business, which may offer the main part of the value contained within its
products. Certain suppliers may even involve in drop shipping, where they ship goods directly to
the customers of the buyer.
Suppliers are your business partners; without them your business will not live. You
need them as much as you need your customers to be satisfied. But as an entrepreneur you
must choose a potential supplier that has loyalty and value your partnership; a supplier that
would lead you to the fulfillment of your business objectives, mission and vision.
Value chain is a method or activities by which a company adds value to an item, with
production, marketing, and the provision of after-sales service. The main goal and benefit of a
value chain, and therefore value chain analysis, is to make or support a competitive benefit.
A supply chain is a structure of organizations, people, activities, data, and resources
involved in moving a product or service from supplier to customer.
The main objective of supply chain management includes management of a varied range of
components and procedures, for instance, storing of raw materials, handling the inventory,
warehousing, and movement of finished product from the point of processing to the point of
consumption.
Developing a Business Model
Business model describes the reasons of how an organization creates, delivers, and
captures value in economic, social, cultural, or other contexts. The development of business
model construction and variation is also called business model innovation and forms a part of
business plan.
Most technical entrepreneurs focus hard on building an innovative product but forget that
an elegant solution does not automatically translate into a successful business. Businesses
require an equality elegant businesses model, with the right price, messaging, and delivery
channel to the right target customers to keep the dream alive and growing.
Defining the right business model requires the same diligence as designing the right
product, but the approach and skills required are different. That is why investors acknowledge
that the two co-founders are often better than one – with focusing on the technical solution, and
the other focusing on defining and building the business model. These two jobs must do in
parallel.
In the investment community, this work is called proving the business model. It starts
with validating a business opportunity (a large, customer segment willing to pay money to solve
a real problem), in much the same way as your proof of concept or prototype validates your
technical solution.
Here are seven steps recommended for establishing the right business model.
7 Steps Recommended in Establishing the Right Business Model
1. Size the value of the solution in the target segment.
Customers often complain that existing approaches are not intuitive or integrated, but old
solutions may be familiar and locked in. Estimate your costs, including a 50 percent gross margin, as a
lower bound on a price. Products too expensive for the market would not succeed, and prices too low will
leave an exposure. Match with competitor prices and market demographics.
2. Confirm that the products and service solve the problem.
Once the prototype or alpha version is available, expose it to real customers to see and feel the
same excitement and delight. Look for feedback on how to make it a better fit. If it does not relieve the
pain, or does not work, no business model will be saved.
3. Test the channel and support strategy.
Now is the time to pitch the entire business model to a group of customers or a specialty selected
focus group. This is not just a product pitch, but must include all elements of your pricing, marketing,
distribution and maintenance. Here again is a chance to make pivots for almost no cost.
4. Talk to industry experts and investors.
A small advisory board of outsiders with experience in the domain can give the unbiased needed
feedback, as well as connections for setting up distribution and sales channels. It is also valuable to talk
to potential investors for their views and possible sources of capital, even if it is for a bootstrapping effort.
5. Plan and execute a pilot or local rollout.
Good transaction on a limited rollout is great validation of a business model. It allows to test
costs, quality and pricing in a few stores or a single city, with minimum jeopardy and maximum speed for
recovery and corrections. Save your viral campaign and major inventory build-up for later.
6. Focus on collecting customer references.

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Subject: Entrepreneurship – Module 2
 Give extra attention to those first few customers, and ask for publishable testimonials and word-
of-mouth support in return. If there will be no support, even with the personal efforts, take it as a red flag
that the business will probably not scale at the rate you projected.
7. Target national trade shows and industry association groups.
There is a need for positive visibility, credibility and feedback from these organizations as a final
validation of the business model, as well as the product model, in the context of major competitors. This
may also be a great source for leads as a key part at that final roll-out and scale-up effort.

Forecasting the revenues of the Business and the Costs to be Incurred

Having completed the study of technical feasibility, the entrepreneur should then have
sufficient information to determine the costs that are likely to be involved in production.
Additionally, the market survey will have supplied information about the safe price that could be
achieved for the new product. The entrepreneur is therefore in a position to calculate the
expected income and expenditure and the gross profit that can be achieved.
1. Start Up Costs
The start-up capital is the amount of money that is needed to buy the facilities and equipment, to
register and license the business and get the necessary certificates.
Working capital includes the costs of raw materials, packaging, staff training, product promotion,
etc. that have to be made before the business begins to generate income from sales of the product.
The start-up capital and initial working capital are calculated to determine whether the
entrepreneur’s savings (known as the owner’s equity) will be sufficient to start the business without a
loan.
The requirement for working capital also continues as the business develops and a “cashflow’
should be prepared. Requirements for working capital will differ among types of business. This is
because of the seasonal nature of the raw materials needed and other ingredients.
Example of Start-up costs for burger production:
Start-up Costs Php
Renovation of space for the store 10,000
Equipment 13,500
Registration of business 2,500
Business License 2,500
Hygiene inspection and certificate 2,500
Raw materials and ingredients for 4 weeks production 9,275
Packaging (minimum order) 2,000
Staff training (equivalent to income from 2 weeks production value 15,000
Initial production promotion 2,500
Staff salaries for 6 weeks 36,000
TOTAL 95,775

2. Operating Costs
There are two types of operating (or production) costs. Those expenses that must be paid even if
no production takes place are called fixed costs and those that depend on the amount of food that is
produced are the variable costs.
3. Income and Profit
From the market survey, the estimated market size and share enable you to calculate the
expected sales. The gross profit (or gross loss) is the difference between the expected income and the
total operating costs over the first year, including any loan repayments.
Income is therefore calculated as follows:
Income = Selling price per unit x number of units sold
Financial Planning
If the gross profit indicates that the proposed business is likely to be successful, it is then
necessary to repeat the calculation of monthly gross profit for one to five years.
This will then show whether there is sufficient cash available to operate the business
without the need for further loans.
This is known as a cashflow forecast.
Example of cashflow forecast for burger:
Month J F M A M J J A S O N D Total
Income (P’000) 50 60 90 120 150 190 210 220 250 270 270 290 2,170
Expenses (P’000) 60 80 95 125 140 150 150 150 180 180 180 180 1,670
Cumulative Profit/Loss
(10) (30) (35) (40) (30) 10 70 140 210 300 390 500 500
(P’000)

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Subject: Entrepreneurship – Module 2
 Activity VI PROBLEM SOLVING. Answer the following questions below based on your
leanings in 4M’s of Production, Value chain and Supply chain.
“In your home, when you want to eat cheese and tuna sandwich before going to school,
your parent would surely prepare it for you. Your cheese and tuna sandwich would not be
produced without a process.”
1. Who would be your manpower? _______________________________
2. What would be your materials? ________________________________
3. What machines or tools would you use? _________________________
4. What methods are needed to produce the cheese and tuna sandwich? (Cooking
procedures- enumerate them). __________________________________

Activity VII. Answer the following questions based on the picture shown below.

1. Are you familiar with the picture above? Give one example of a food
business/restaurant that is popular to people nowadays.
2. What do you think is the reason why this particular food business establishment
becomes popular to the people?
3. Do you know some other ways to enjoy their product other than coming in personally
into their store and buying their product for yourself?
4. Do you think such strategies are effective to make the business more productive? Why
or why not?
Rubrics for scoring:
Excellent – 25 pts. Average – 20 pts. Good – 15 pts.
The learner’s answer the questions clear The learner’s answer is The learner’s answer is not well
Ideas/
and focused. Relevant details were understandable even though the defined and/or too many irrelevant
Content
given. statement is general or basic. details.
The form and presentation of the answer The form and presentation of the The form and presentation of the
enhances the ability for the reader to answer is understandable in the answer is seldom understandable
Presentation
understand and connect with the format. and not explain it broadly.
message.

Activity VIII MODIFIED TRUE OR FALSE. Write TRUE if the statement is correct, if FALSE,
underline the word/s that makes the statement incorrect.
1. Output represents the final products from the production process and distributed to the
customers.
2. The 4M’s in the production operation are the materials, manpower, machine and money.
3. Manpower in production operation refers to the workers involved in the production of goods.
4. Product description is the marketing copy that explains what a product is and its benefits.
5. Prototype is a replica of a product.
6. Product to produce is one of the factors to be considered in the production method.
7. Educational qualifications and experience are one of the criteria in considering manpower.
8. Skills and expertise are not important in considering manpower.
9. Benefits are the reasons why customers will decide to buy the products.
10. Machine refers to the manufacturing equipment.
11. Supplier is an entity that supplies goods and services to another organization.
12. Supply chain is a system of organizations, people, activities, data and properties involved in
moving a product or service from supplier to customer.
13. Business model describes the rationale of how an organization makes, transports, and
captures value in economic, social, cultural, or other contexts.
14. In selecting the type of equipment to purchase, the entrepreneur may consider cost and
capacity of the equipment.
15. Value chain is the process or activities by which a company adds cost to an article that
includes production, promotion, and providing of after-sales service.

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Subject: Entrepreneurship – Module 2