SE N I O R H I G H SC H O O L D E PA R T M E N T

PSC1 Building, Guzman St., Calao West, Santiago City |Email: info@pscc.edu.ph

INSTRUCTIONAL MODULE IN SHS ENTREP

ENTREPRENEURSHIP
Week 15
TIME ALLOTMENT: 3 Hours
CONSULTATION HOURS: F-7:30- 8:30 ABM 12A,
F 8:30-9:30 H.E, IA-AS, ICT 12A
F 9:30-10:30 HUMSS 12A
F 10:30-11:30 STEM 12 B
Th – 8:30-9:30 STEM 12A, ABM 12 A
Th 9:30-10:30 HUMSS 12B

CONTENT: CHAPTER VII: THE BUSINESS PLAN

 What is Business Plan
 Purposes of Business Plan
 Parts of the Business Plan
 Analysis of the Competition
 Operations and Management
 Supporting Document

LEARNING COMPETENCIES:
At the end of the week, learners are expected to:
1. discuss business plan;
2. know the purposes of business plan; and
3. explain the parts of the business plan.

LEARNING RESOURCES:
1. Fajardo, Feliciano., Entrepreneurship, Manila: National Bookstore, 1994
2. Lao, Felix., Marketing Management, Manila, Rex Publishing Co., 1998
3. Robert G. Medina., Entrepreneurship and Small Business Management, Manila:Rex Book Store2010
4. Managementstudyguide.com
5. https://www.universalclass.com/articles/business/marketing-strategies-promotion-advertising-
and-public-relations.htm

DISCUSSION:

CHAPTER VII. CONTINUATION TO THE PARTS OF THE BUSINESS PLAN

Price Strategy
-How the prices its products or service is a very important component of the business plan in determining the
right price.

The ff. Factors must be considered:

1. The customer’s perception.
2. The profit objectives of the firm.

FIRM PRICE METHODS

1. COST PLUS PRICING – this method covers all cost, variable and fixed, plus an extra increment to
deliver profit.
2. DEMAND PRICING – this is a method of pricing where the firm sets price based on buyer desire.
3. COMPETITIVE PRICING – this method of pricing calls for price setting- on the basis of prices charged
by competitors.
4. MARKET PRICING – this is of cost- oriented pricing in which the firm sets prices by adding per unit
merchandise costs, operating expenses and desired profit.

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PRICE
Price – is the money, good, or service exchanged for the ownership or use of a good or service. When 100 pesos
is paid for a sack of corn, that amount is the price of the corn.

The various names of price are the following:

1. Tuition education
2. Interest use of money
3. Taxes government service
4. Subscription regular receipt of a periodical
5. Royalty use of copyright
6. Rent use of asset
7. Fare taxi or bus ride
8. Fee service of a physician
9. Retainer lawyers services over a period of time
10. Toll long distance call or travel on some highways
11. Salary services of an executives or a white collar worker
12. Wage service of a blue collar worker
13. Commission salesperson’s services
14. Honorarium guest speaker’s services
15. Dues membership in a union club

SELECTING A PRICING STRATEGY

Market skimming strategy – requires the setting of price at the upper limit of the realistic range of choice. The
purpose of skimming is to maximize profits as the products is first introduced. Later, a slow reduction in price
over a time is made to capture new targets markets.

PRICING APROACHES
Prices of products and services may be set based on any of the various pricing approaches. They are the
following:
1. Cost based approach
2. Buyers based approach
3. Competition based approach.

COST BASED APPROACH – refers to the setting of prices on the basis of costs. Under this approach the total
cost are calculated and a margin of profit is added. There are two types of pricing under the cost based approach.
1. Cost plus pricing – this method calls for adding a percentage of cost on top of the total cost.
2. Target rate of return pricing – this approach enables a company to establish the level of profits that it
feels will yield a satisfactory return.

BUYER BASED APPROACH – deals with consumer perception or behaviour as bases for determining the
selling price of a product or services.
1. Perceived value pricing – this method establishes the price for a product based on the buyers perception
of the value on the product or service.
2. Price-Quality relationship pricing – this approach is based on the observation of the consumers either
high price with high quality or low quality with low price.
3. Loss-leader pricing – this refers to the practice of setting low prices on selected products which will result
in the generation of less profits, but the objective of increasing the sales volume of other products sold
by the company.
4. Odd number pricing – this refers to the practice of setting price even below peso amount.

COMPETITION BASED APPROACH – refers to the setting of prices based on what prices are being charged
by competitors.
1. Going rate pricing – under this pricing method, the firm adapts a price based on the competitor’s prices.
2. Sealed bid pricing – in sealed bid pricing, the firm sets its price which is thought to be a little lower than
the competitiors.

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THE DIFFERENT BETWEEN 4 PS TO 4 CS

Robert F. Lauterborn proposed a 4 Cs classification in 1990. His classification is a more consumer-

orientated version of the 4 Ps that attempts to better fit the movement from mass marketing to place marketing

PRODUCT - CONSUMER (wants and needs)

A company will only sell what the consumer specifically wants to buy. So, marketers should study
consumer wants and needs in order to attract them one by one with something they want to purchase.

PRICE - COST
Price is only a part of the total cost to satisfy a want or a need. The total cost will consider for example
the cost of time in acquiring a good or a service. It reflects the total cost of ownership. Many factors affect cost,
including but not limited to the customer's cost to change or implement the new product or service and the
customer's cost for not selecting a competitor's product or service.

PLACE-CONVENIENCE
In the era of Internet, catalogues, credit cards and phones, consumers neither need to go anywhere to
satisfy a want or a need nor are they limited to a few places to satisfy them. Marketers should know how the
target market prefers to buy, how to be there and be global, in order to guarantee convenience to buy. With the
rise of Internet and hybrid models of purchasing, Place is becoming less relevant. Convenience takes into account
the ease of buying the product, finding the product, finding information about the product, and several other
factors.

PROMOTION-COMMUNICATION
While promotion is "manipulative" and from the seller, communication is "cooperative" and from the
buyer with the aim to create a dialogue with the potential customers based on their needs and lifestyles. It
represents a broader focus. Communications can include advertising, public relations, personal selling, viral
advertising, and any form of communication between the organization and the consumer.

Congratulations for finishing Module 15! Keep up the good work.

LEARNING TASKS:

SHS ENTREP (ENTREPRENEURSHIP)

WEEK 15
ACTIVITY 1

Instructions:

1. Read the module intended for Week 15.

2. Answer the activity given by the teacher.
3. Answers may be written in a 1 whole sheet of paper/ bond paper or encoded.
4. Names in outputs to be submitted shall have this format (placed at the upper most right corner of the
papers):
Full Name (Last Name, First Name Middle Initial)
Strand & Section
Week Number
Activity Number
5. File names of outputs to be submitted shall be named as follows:
<FIRST NAME INITIALS, LAST NAME> <SUBJECT CODE> <WEEK NUMBER> <ACTIVITY
NUMBER>
e.g. JC DELA CRUZ HUMSS 11A WEEK1 ACTIVITY1
3. Send your answer thru chat tab in the Microsoft Teams (private message to teacher).

Date of Submission: December 16, 2020, until 5:00 P.M.

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REFLECTIVE ESSAY: Answer the question concisely but substantially. Limit your answer in 5-10 sentences.

1. Are magazines appropriate for advertising small business? Why or why not?
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Rubric for Essay

20 points Answers show mastery of content and deeper analysis/ understanding
of the content.
16 points Answers show some analysis. Student’s answer show master and
understanding of the content.
14 points Answer show some understanding of the essential content, facts, but it
is lacking in greater analysis and evidence.
10 points Answers do not show understanding of basic content. Answers are
incomplete or inaccurate. Answers show mastery of the general content
is missing.
5 points Product does not address the question or is off topic.

Prepared by:

ROLANDO R. DELA CRUZ

Teacher

Approved by:

AISEN FAITH C. MARRERO, LPT, MPA

Principal, Senior High School

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