Note: Submit your answer in google classroom and bring the original copy during

the Final Examination

ACTIVITY IN THE TOPIC BUSINESS PLAN

Sammy’s Motor Repair Shop: In the Beginning

At the age 26, Samuel Bugarin established his motor repair shop along the highway, one
kilometer away from the commercial district of his town. He holds a degree in Mechanical
Engineering and just after graduation, he started working as an apprentice in his uncle’s motor
repair shop. He prodded his uncle to expand his business but his advice was not heeded.
He thinks that the motor repair business is growing steadily. He noticed that the new car
models are operated with electronics systems installed in them. Sammy believes that repair and
maintenance of the new care models cannot served adequately by repair shops existing in the
area.
Sammy immerses himself into learning the care and maintenance of electronic installations in
cars. He also acquired the skills necessary for maintaining efficient performance of cars. When
he thought he already possessed the required training, he decided to become a motor repair shop
entrepreneur.
Sammy gathered relevant information he thought would be necessary in the preparation of a
business plan. He considered hiring at least five experienced mechanics. He started constructing
the building where his office and service facilities will be housed. He made sure that customers
can contact him through the telephone he installed in his office. In addition, he maintains a
handphone so he can serve those whose cars get stalled somewhere.
Sammy stuck to his business plan and business was very encouraging during the first three
years. On the fourth year of his operation, a new motor repair shop opened just across the
highway from his shop. It was inevitable that some of his customers would move over to his new
competitor. Sammy did not anticipate the threat now confronting his business. He was already
entertaining the idea of putting up another shop at the other end of the commercial district. But
now, it seems that his dream of opening another shop is slowly drifting away. With the entry of
the competitor, he is beginning to lose faith in the usefulness of a business plan. He is
apprehensive and he wants quick advise.

Questions: Answer the following: 5 points each

1. If you were a friend of Sammy, what would you tell him?
2. Is Sammy’s situation hopeless? Why?
3. What did Sammy miss regarding his business plan?
 POST TEST IN POST BUSINESS PLAN

Test I. Multiple Choices. Write the letter of the correct answer.

1. A document that helps the SBO determine what resources are needed to achieve the objective
of the firm, and the like:
a. financial plan b. marketing plan c. human resource plan d. business plan

2. The part of the business plan that indicates the name of the business, the names of the
proponents, address and others.
a. title page and contents b. executive summary
c. description of the business d. the product or service

3. The part of the business plan which contains information on the capital needs of the
business, how the money will be spent, what benefits will be derived by the business from the
loan or investment, among others:
a. executive summary b. description of the business
c. the product or service d. market strategies

4. When the SBO is determining which part of the total potential market will be served by the
firm, he is actually developing a market strategy referred to as:
a. definition of the market b. determination of the market share
c. position strategy d. pricing strategy

5. When the SBO wants to know what the customers really want to buy from the firm, he is
starting to develop a:
a. pricing strategy b. positioning strategy
c. distribution strategy d. promotion strategy

6. A method of pricing where the firm sets prices based on buyer desires:
a. cost plus pricing b. demand pricing
c. competitive pricing d. markup pricing

7. They sell directly to consumers:

a. brokers b. wholesalers
c. retailers d. manufacturer’s representatives

8. This portion of the promotion strategy is a detailed presentation of the publicity strategy of
the firm:
a. advertising aspects b. packaging
c. public relations d. sales promotions
9. That portion of the business plan that contains the organizational structure, operating
expenses, capital requirements, and cost of goods sold:
a. market strategies b. analysis of the competition
c. operations and management d. financial data

10. The financial statement that shows the financial condition of the business as of a given date:
a. income statement b. cash flow statement
c. balance sheet d. statement of planning premises

Test II. Fill in the blanks. Write the correct answer of the following statements:

1. ________________ is a sort of a business blueprint and it keeps the entrepreneur on the

right track.

2. ________________ is that portion of a business plan indicating the capital needs of the
business, how the money will be used, among others.

3. Market strategies are formulated after undertaking _____________.

4. _________________ is one where the firm identifies a target market segment and
develops a unique strategy mix to address the desire of the segment.

5. ________________ is that pricing method that covers all costs, plus an extra increment to
deliver profit.

6. _______________ is the most effective channel if the plan is to move goods directly to the
ultimate users.

7. _________________ are means used to support the sales message like special sales
coupons, contest, and the like.

8. The cost of goods of trading firms consist of ___________________________.

9. The ___________________ shows the income, expenses, and profits of a firm over a
period of time.

10. The ___________________ is a financial statement that shows the financial condition
of the business as of a given date.