CHAPTER 2: PLANNING THE BUSINESS TO Facility layout planning - involves the placement

ESTABLISH of departments, workstations, and machines.

Planning - the defining of goals for future
organizational performance and deciding on the
The factors to consider in facility layout planning
tasks and resources needed to attain them.
are:
Product planning involves determining:
a. objective or purpose of the system in terms of
a. how the product meets the customers' needs output and flexibility
b. how long it takes for the product to make and to b. product and service demand
be marketed, and
c. number and volume of operations
c. the total cost to the customer
d. space availability
Process planning - deals with determining the
specific technologies and procedures required to
produce a product or service. Job planning or job design - is the function of
specifying the work activities of an individual or
Facility location planning - deals with the
group in an organizational setting.
identification of the place where the
manufacturing process will be situated
The areas to consider in job planning or job
design:
Guide in facility location planning are:
a. task to be done
a proximity or nearness to customers
b. qualification of workers
b. business climate
e. physical location
c. total cost
d. working time
d. transportation facilities (or infrastructure)
e. reason for hiring
e. quality of labor
f. performance measurement
f. supplies
g. motivation
location of the company's other facilities
h. training
h. peace and order condition
The customer is divided into 4 P's, namely:
i. governmental laws, rules, and regulations
Promotion - means telling the target market about
j. environmental regulations
the product.
k. host community
Personal selling involves direct communication
l. competitive advantage Between sellers and potential buyers.

Mass selling - is communicating with a large
group of buyers at the same time.
Advertising is a paid form of presenting the
product.
Publicity - is not paid.
Sales promotion - refers to activities that stimulate
interest, trial, or purchase by final customers.
Buying at first sight is the instinctive reaction of
the customers to buy right away.
Consumer's Evaluation of the Purchase Process
The factors that guide consumers in the purchase
process are:
1. price
Social needs are concerned with individual Meeting Financial Requirements
interaction with others like:
financial requirements - the business will depend
1. love upon the nature of the business and the nature of
the product. A direct door-to-door selling activity.
2. friendship
Trade - buys the product from the
3. status
supplier/producer of goods on a cash or credit
basis and sells them also on a cash or credit basis.

Personal needs are concerned with the need for

The Sources of Cash CHAPTER 3: PROJECT FEASIBILITY STUDY
Feasibility - study is an activity designed to find
out what is feasible, achievable, attainable,
Cash may come from any of the following:
practicable, or workable.
1. The personal money of the entrepreneur
2. Loans from relatives and friends
Product feasibility studies are needed by:
3. Loans from banks and other lending institutions
1. Management
4. Investors
2. Investors
5. Government assistance programs
Parts of the Feasibility Study
1. Executive Summary presents the
highlights of the study that are shown in
detail in the different sections. The
executive summary.
2. project background and history discuss the
proponents of the project or the owner of
the project. This section states the name of
the business.
3. Industry study involves the analyses of the
CHAPTER 4: WRITING THE BUSINESS PLAN
business plan - is a written document describing
all relevant internal and external elements and
strategies for starting a new venture, a new
product, or a business expansion.
The business plan will detail the following:
1. Product to be made or traded or service to be
rendered
2. Marketing- when, where, and to whom the
product or service is to be sold