10
Entrepreneurship 2
Quarter 2 – Module 4
Performing Purchasing and Inventory of Production
Materials
Department of Education • Republic of the Philippines
ENTREPRENEURSHIP 2
Copyright: Department of Education
Publisher: Department of Education, Mandaue City Division
This learning module was developed by the following personnel:
MA.FE B. CALIGDONG
Mandaue City Comprehensive National High School
JOCELY O. BACARON
Mandaue City Comprehensive National High School
VANESA B. BEJO
Mandaue City Comprehensive National High School
Entrepreneurship 2
Quarter 2 – Module 4
Performing Purchasing and Inventory of Production Materials
Department of Education – Republic of the Philippines
HOW TO USE THE MODULE
This module is a self-learning tool that contains instructional materials and
activities for the students to complete each of the learning outcomes of the module. It
has an instruction that can be clearly understand by the learner. It is a self –pace
learning kit, it means that the module should be done according to the pace of the
student but will not exceed on the weeks given by the facilitator.
The module includes principles, methods, and procedures in identifying
suppliers, and in conducting and managing inventory of supplies and resources. It also
conceptualizes, formulate, and implement business models to operationalize the
business. The learning material teach underlying theories, principles, and practices in
setting a target market and projected sales. The module contains the knowledge, skills
and attitudes required for the subject.
The instruction is given on how to go through about the module, the students
have to work on the module based on the given activity, the facilitator has to require
students to submit the outputs stated in the module and on the duration of the period as
per instruction of the facilitator.
Introduction
Entrepreneurship is a subject of Technical Vocational Education Curriculum
(TVE) for Grade 10 students under the K to 12 curriculums. It is designed for preparing
the individual learner to earn a living or increase his earning, by utilizing the knowledge
and skills acquired at school. It is aimed at preparing individual necessary for self-
reliance.
The subject provides varied and relevant activities and opportunities to
determine understanding of the key concepts and to demonstrate learning
competencies as required by the subject. Thus, it aims to provide knowledge and skills
that can be applied in a specific skill acquired by the students in his/her chosen field of
interest in the TLE subject to be use in lifelong learning.
The learning material is specifically designed to focus on the different learning
competencies to develop the knowledge and acquire skills in all entrepreneurial
activities of the learner.
Content Standards
The learner demonstrates an understanding of principles, methods, and
procedures in identifying suppliers, and in conducting and managing inventory of
supplies and resources.
The learner demonstrates understanding of conceptualizing, formulating and
implementing business models to operationalize a business.
The learner demonstrates understanding of underlying theories, principles, and
practices in setting a target market and projecting sales.
Performance Standards
The learner applies principles, methods and procedures in identifying suppliers
and in conducting and managing inventory of supplies and resources.
The learner prepares, describes and creates business model to operationalize
and launch trial run period of the business’ product or service.
The learner conducts marketing, benchmarking, goal setting and sales
projecting, prepare and presents results for business decision.
Objective:
Learners are expected to become proficient in performing skill on the
competency;
1. conduct product or service trial run based on the operational plan of
the business.- Business Trial Run Design
Subject Requirements
Grade 10 student has to take the Entrepreneurship subject to complete the
Technical Vocational Education curriculum. The subject is added to the curriculum as a
special subject to train the students on how to venture into business using the skill
acquired in TLE subject. The subject requires a total number of 2 hours per week.
The subject is added to the curriculum to equip the learners with the appropriate
knowledge, attitude, values and skills on entrepreneurial activities necessary to become
self reliance and productive citizens of our society.
Pre- assessment Test
Read the questions carefully and write the letter of your answer on your quiz
notebook.
1. It refers to the actual testing of the business
a. enforces
b. executes
c. implements
d. trial run
2. It is a step-by-step procedure followed in transforming materials into finished product.
a. method
b. process
c. procedure
d. operation
3. It refers to a tool that check and balance the management of the business to ensure
a good income.
a. plan
b. business plan
c. trial run design
d. production Plan
4. In what part of the structure of the business trial run design the statement “free for
the 1st 5 buyers per cup size” is written?
a. target market
b. target goals
c. price flexibility
d. advertisement
5. It refers to the materials needed for processing to come up with finished products.
a. inputs
b. raw materials
c. stocks
d. supplies
In this Module, we will discuss how to develop a business trial run design
considering the structure that make up a business trial run design.
Activity 1
Some of the words below comprises the structure of the business trial run
design. Pick out the eight words that comprises the structure of the business trial run
design and arrange it according to the proper sequence or position of the trial run
design. Write your answer on a sheet of paper.
Business Name Service Type of business
Product type of business Price Flexibility
Business Location Advertisement/Promotion
Timetable Target Goals
Market/Clients Business Owner
Given the sections in the structure of the business plan, what is the first section
to be written? Why?
Which of these sections, encourage prospective clients?
Topic: Conduct a Product or Service Trial Run
Words to Study
Inputs- are the materials needed for processing to come up with finished products.
Process- is the step-by-step procedure followed in transforming materials into finished
products.
Projected Sales- are expected results of variable cost and fixed cost within the target
period.
Trial -Run- is the actual testing of the business.
Viability- means practicability of the business.
The lesson deals with the development of a Business Trial Run Design
(BUTRUD) based on the viability of the business an entrepreneur want to engage in. It
also deals how to use the BUTRUD and run a trial for a product or service business. A
Business Trial Run Design is based on the strategies like price flexibility, advertisement
and promotions, target market, target goals and business location.
Before engaging into any actual business like selling a product/s that are to
manufacture or produce, the essential thing to do first is to design a Business Trial Run
Design (BUTRUD). This will serve as guide on how to decide from time to time to come
up with a better business management be it manufacturing or rendering services.
Having a trial run is a great advantage because this gives important information
about the progress of the business in all aspects of venturing.
Below is a sample BUTRUD for the product type of business. Remember to give
emphasis on the timetable of the trial before the actual management of the business.
Here is a simple trial run matrix of a product type of business about Ice Cream.
This ice cream is a combination of the seasoned fruits and vegetables. It is called as”
Frut-Veg Ice Cream for All Seasons”.
BUSINESS TRIAL RUN DESIGN (BUTRUD)
PRODUCT TYPE OF BUSINESS
Business Name Frut-Veg Ice Cream for All Seasons
Business Owner Dr. Celedonia T. Teneza
Business Location Lot 10, Blk. 136, Lopez Jaena St.,Brgy. Rizal, Makati City
Target Goals To earn income of ₱3,000.00 in a week.
To double the income for the succeeding weeks
after the trial run.
To have an upward sale from week 1 onward.
To save at least 10% of the daily income for
revolving fund after the trial week.
Timetable ONE WEEK ONLY
Price Flexibility Minimum Price - ₱12.00/ cup size
Maximum Price - ₱299/ gallon
Advertisement & Free for the 1st 5 buyers per cup size
Promotion 50% discount for the next 5 buyers per cup size
25% discount for the 1st 5 buyers per gallon
25% discount for the next 5 buyers per gallon
Target Market Community neighborhood
Students in the nearby elementary, high school &
universities
Buyers/walk ins in the market/ supermarket
Enrichment Activity
Below is a Business Trial Run Design for product and service type of business.
Choose at least one from the given matrix and fill up the needed information. Assume
that it is your business, design it up to the last structure of the Business Trial Run.
Note: Use one whole sheet of paper for this activity.
You may replace a product of your interest.
Business Trial Run Design
(BUTRUD)
Products/ Perfume Detergent Parlor
Services
Business Name
Business Owner
Business Location
Target Goals
Timetable
Price Flexibility
Advertisement &
Promotions
Target Market
Generalization
In business venture, it is important that the enterprise owner is well versed with
the Business Trial Run Design (BUTRUD). This would help the owner to improve the
business operations that may result for better products or services. The BUTRUD
serves as tool to check and balance the management of the business to ensure a good
income.
Choose the answer in column B to the phrases in column A. Write the letter only
in your paper.
Column A Column B
1. structure of the BUTRUD that shows the duration a. trial run
of the trial run.
2. shows different cost of product. b. target goals
3. practicability of the business c. business location
4. R. Palma St., Cebu City d. advertisement & promotion
5. actual testing of the business e. timetable
6. buy one get one free f. process
7. students and teachers g. target market
8. results of variable cost and fixed costs h. price flexibility
9.procedure followed in transforming materials i. projected sales
10. income of ₱1,000.00 a day j. viability
Application
LET US APPLY WHAT YOU HAVE LEARNED
Items on the first column of the chart below describe some part of the structure
of a Business Trial Run Design discussed in this lesson. Analyze what is being
described and write your answer on the column opposite of each item.
1. Buy free for the 1st 5 clients
2. One week trial run
3. To save 10% from income after a
week of trial run
4. Students from elementary, high
school and universities
5. Frut-Veg Ice Cream for All Seasons
Post Assessment
Read the questions carefully and write the letter of your answer on your quiz
notebook.
1. It refers to the actual testing of the business
a. enforces
b. executes
c. implements
d. trial run
2. It is a step-by-step procedure followed in transforming materials into finished product.
a. method
b. process
c. procedure
d. operation
3. It refers to a tool that check and balance the management of the business to ensure
a good
income.
a. plan
b. business plan
c. trial run design
d. production Plan
4. In what part of the structure of the business trial run design the statement “free for
the 1st 5
buyers per cup size” is written?
a. target market
b. target goals
c. price flexibility
d. advertisement
5. It refers to the materials needed for processing to come up with finished products.
a. inputs
b. raw materials
c. stocks
d. supplies
Additional Activity
Make your own Business Trial Run Design, it can be a product or service type of
business. Write it in a 1 whole sheet of paper.
References:
Reynaldo M. Valdez.,et al Competency Based Curriculum and Competency Based
Learning
Material for Fourth Year, July 2009
Coursehero.com
Academia.edu
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Contact Number: 09208382383
09436885588
09455986955
Office of the Management Team: Mandaue City Comprehensive National High School
