LEARNING ACTIVITY SHEET

Grade Level/ Subject Grade 11 – Entrepreneurship Quarter 2

Topic Business Model Week 3

MELC  Develop the business model. Competency 3

o Distinguish the importance of Duration 2 hours

developing a business model.
Specific Objectives
o Create a business model. Score

I. Let’s Know
Before starting a business, it requires to have an efficient business model which sets the
right price, details for financing, messaging and delivery channel to the right target customers.
Investor acknowledges two co-founders because one of them could focus on the technical
solution, while the other on the defining and building the business model.

To those entrepreneurs who are planning to establish a business, they must first develop a
business model or plan before venturing into a business, regardless how small or big enterprise
it might be. Here are some of the reasons why it is important to prepare a business model:
a. serves as an extension of the feasibility study;
b. combines all the factors in a business plan in order to visualize the proposed
enterprise or business; and
c. conveys the vision, mission, and objectives of the enterprise or business to the
internal (board, employees, etc.) and external parties (potential investors, public,
etc.).

The business model must contain the following:

 Forecast of business revenues
 Costing
 Estimation of profits
 Projections of its five-year financial statements

It starts with confirming the business opportunity, in the same way as the proof of concept
or prototype validates the technical solution. Below are the seven (7) steps recommended for
establishing the right business model:

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 KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER CUSTOMER SEGMENT
RELATIONSHIPS
Who are our Key What Key Activities do our What Key Activities do our For whom are we creating
Partners? Value Propositions Value Propositions What type of relationship value?
Who are our Key acquire? require? does each of our Customer Who are our most valued
Suppliers? Our Distribution Channels? Our Distribution Channels? Segments expects us to customers?
Which Key Resources are Customer Relationships? Customer Relationships? establish and maintain with
we acquiring from Revenue Streams? Revenue Streams? them?
partners? Which ones have we
Which Key Activities do established?
partners perform? How are they integrated
with the rest of the
business model?
How costly are they?

KEY RESOURCES CHANNELS

What Key Resources do Through which channels

our Value Propositions do our Customer
require? Segments want to be
Our Distribution Channels? reached?
Customer Relationships? How are we reaching them
Revenue Streams? now?
How are our Channels
Integrated?
Which ones work best?
Which ones are most cost-
efficient?
How are we Integrating
them with customer
routines?

COST STRUCTURE REVENUE STREAMS

What are the most important costs inherent in our business model? For what value are our customers really willing to pay?
Which Key Resources are the most expensive? For what do they currently pay?
Which Key Activities are the most expensive? How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?

Figure 3. Business Model

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Seven (7) Steps Recommended in Establishing the Right Business Model

1. Size the value of the solution in the target segment.

Estimate the costs, as a lower bound on a price. Expensive products may be hard
to sell and if you price low, it will leave an exposure. Assess your market, observe your
competitors and match with their prices.

2. Confirm that the product or service solves the problem.

Put your prototype or alpha version into test; let the real customers experience your
product so that you could have an honest feedback. Based on their feedbacks, you
will be able to establish what things or factors need to be improvised or maintained.

3. Test the channel and support strategy.

In this part, you pitch your business model to a group of customers, which includes
all elements like pricing, marketing, distribution and maintenance. This is the chance to
make pivots for almost no cost.

4. Talk to industry experts and investors.

A third-party advisory board with experience of the same field could give you an
honest and unbiased needed feedback. They might have connections or
recommendations for setting up your distribution and sales channels. It is also valuable
to talk to potential investors for they could be invest additional source of capital for
your business.

5. Plan and execute a pilot or local rollout.

It tests the cost, quality and the level of pricing of your products in a community or
target market.

6. Focus on collecting customer references.

Pay attention to those first few customers, and ask for their testimonials and word-
of-mouth to support and spread the word of your product and services. Without them, it
would be difficult for the business rate your project.

7. Target national trade shows and industry association groups.

As a final validation of the business model, you should gather the positive visibility,
credibility and feedback from the organizations as well as the product model, in the
context of major competitors. This may also be a great factor that will help you
enhance your product and/or services offered. Many business plans have highly on
competitive product features, but helps on the business model for details and
innovations.

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II. Let’s Perform & Practice
By this time, you were able to understand what are a business model and its
importance. Now, I want you to fill out the matrix below based on research and what is
the business model of a fast food company like McDonalds.

Key Partners Key Activities Value Relationships Customer

Prepositions Segments

Key Resources Channels

Cost Structure Revenue Streams

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III. Let’s Connect / Let’s Analyze
After answering the question and filling out the matrix above, what do you think is the
importance of a business model and what does it help a fast food like McDonalds to
achieve?

RUBRIC
Criteria 5 3 1 Score
The essay is The essay is The essay
focused, focused on topic poorly
Focus/ Main purposeful, and and includes few addresses topic
Point reflects clear loosely related and includes
insight and ideas irrelevant ideas
ideas
Persuasively Supports main Provides little or
supports main point with some no support for
point with well- underdeveloped the main point
Support
developed reasons and/or
reasons and/or examples
examples
Effective and Some use of Little or no use
Language Use, creative use of elements of of elements of
Style & elements of style Contains style Many
Conventions style to enhance frequent errors errors in
(Sentence meaning Uses in grammar, grammar,
structure, word correct spelling, and spelling, and
choice, grammar, punctuation punctuation,
grammar, spelling, makes reader’s
spelling, punctuation comprehension
punctuation) throughout with difficult
very few errors
Distinctive Very little No
experimentation experimentation experimentation
with language to enhance nor
and usage to concepts Does enhancement of
Originality
enhance not exhibit concepts No
(Expression of
concepts creativity adherence to
the theme in a
Applies higher the theme
creative way)
order thinking
and creative
skills to relay
complex ideas
https://www.kpu.ca/sites/default/files/NEVR/High%20School%20Rubrics.pdf

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III. Let’s Answer
Circle the letter of the best answer to the question.
1. What best describes a business model?
A. A business model is based on research.
B. A business model helps in setting the right price.
C. A business model is based on the emotions of the consumers.
D. A business model is a company/entity’s plan in establishing a sole
proprietorship business.

2. A business model must contain the following except:

A. Costing
B. Forecasting of revenue
C. Profit estimation
D. Profit and Loss Ratio

3. What is the importance of a business model?

A. The business model is important for innovation.
B. The business model is the feasibility study itself.
C. The business model plays an important part of the business plan.
D. The business model conveys the vision, mission and objectives of
the business.
4. Which of the 7 steps recommended tells us to have a third-party advisory
board with experience of the same field could give you an honest and
unbiased needed feedback?
A. Focus on collecting customer references
B. Talk to industry experts and investors
C. Test the channel and support strategy
D. Size the value of the solution in the target segment

5. Which of the 7 steps recommended wants you to pay attention to those

first few customers?
A. Focus on collecting customer references
B. Talk to industry experts and investors
C. Test the channel and support strategy
D. Size the value of the solution in the target segment

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IV. Let’s Explore / Let’s Create
I want you to create a simple business model for a business who sells surgical face
masks. Refer to the recommendations above on how to create a business model. Use
the back portion of your paper. Below is the rubric on how you will be graded.

RUBRIC
Criteria 5 3 1 Score
Meets or Exceeds Meets Does not meet
Highest Expectations expectations
Executive Expectations Missing most Missed entire
Summary Completed all content page.
content for this
area.
Ties presentation Understands their Does not
has a complete position on the understand their
understanding of Business Model position on the
"Business Model Canvas product Business Model,
Canvas", product knowledge, and product
Subject Knowledge and customer sources knowledge, and
segment in the referenced in sources
executive executive referenced in
summary and summary and executive
presentation. slides. summary and
slides.
Proper grammar Minimal grammar Poor grammar and
Grammar &
and spelling is and spelling errors spelling
Spelling
evident.
https://www.rcampus.com/rubricshowc.cfm?code=BX74284&sp=yes&

Writer: Editor:
CLEO LYN MARIE T. ABELARDO GERALDINE T. GOMEZ
Teacher II Teacher III
Davao City National High School Calinan National High School

Evaluator:
DIOSEL V. CAGAPE
Teacher III
Daniel R. Aguinaldo National High School

References:

1. How to use the Business Model Canvass-A Step by Step Guide. Retrieved from:
https://www.garyfox.co/canvas-models/how-to-use-business-model-canvas-guide/
Retrieved on: July 1,2020
2. Zwilling, M. (2015).7 Steps for Establishing the Right Business Model. Retrieved
from: https://www.entrepreneur.com/article/242308 Retrieved on: July 1, 2020
3. De Guzman, A. (2018). Entrepreneurship (For Senior High School, Applied Subject,
ABM Strand). Philippines: Lorimar Publishing, Inc.
4. Gallardo, Manahan, Tendero and Viray (2018). Entrepreneurship. Philippines: Anvil
Publishing, Inc.

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