Entrep - 3rd Quarter

Physical Environment

The natural elements inherent in the Earth that entrepreneurs should evaluate before opening their business.

Climate

The prevalent climatic condition of the area where the business is located.

Physical Resources

The availability of raw materials that can influence the success or failure of the business venture.

Wildlife

Ensuring that the business contributes to the preservation of the ecological system.

Societal Environment

Composed of social, political, cultural, economic, legal, and technological forces.

Economic Forces

Factors caused by changes in the economy that affect the entrepreneurial venture.

Cultural Forces

Integrated characteristics of a group of people in a society.

Social Forces

Elements resulting from human interactions that influence thoughts, behavior, and attitudes.

Political Forces

Political parties, systems, and groups that influence the political stability of a country.

Legal Forces

Elements and bodies involved in legislation and interpretation of laws affecting the business.

Technological Forces

Trends and developments in computer and information technology that impact business.

Industry Environment

The external environment where trends and changes are felt by the business.

Government

The system or institution that handles the affairs of a country.

Suppliers

Individuals or companies that provide materials or services to the business.

Customers

Buyers of goods or services produced by the business.

Competitors

Forces that produce or sell similar products or services.

Employees

Workers responsible for production or service delivery.

Creditors

Banks and financial institutions that lend money to the business.

Internal Environment

The environment within the business.

Business Resources

Assets or properties owned or controlled by the business.

Business Culture

Collection of values, beliefs, and principles shared by employees and stakeholders.

Business Structure

Organizational arrangement, hierarchy, and functional areas of the business.

Environmental Scanning

Gathering, evaluating, and utilizing information on events and activities in the environment.

Significance of Environmental Scanning

Portrays trends, identifies threats and opportunities, determines success factors, defines the future path, and assists in formulating entrepreneurial strategies.

Physical Environment Scanning

Gathering historical data about past events and circumstances.

Societal Environment Scanning

Analyzing trends and developments in social, political, cultural, economic, legal, and technological forces.

Industrial Environment Scanning

Understanding the forces of competition, including government, suppliers, customers, competitors, employees, and creditors.

Internal Environment Scanning

Evaluating business resources, culture, and structure through SWOT analysis and BGC analysis matrix.

Nature and Type of Entrepreneurial Venture

Classifying ventures based on the nature of the business, such as merchandising, service, manufacturing, agriculture, or hybrid.

Market Identification

Defining the specific customer of the product through market segmentation, targeting, and positioning.

Market Segmentation

Dividing the market into smaller segments with distinct needs, characteristics, or behaviors.

Market Targeting

Determining the set of buyers with common needs and characteristics that the venture intends to serve.

Market Positioning

Arranging a product to occupy a clear, distinct, and desirable place in relation to competing products.

Organization Plan

A to-do list for an organization that sets priorities, ensures tasks are done on time, and focuses on goals.

Form of Business Organization

Sole proprietorship, partnership, or corporation, each with different capital requirements, liability, management, and taxation.

Double taxation (individual and corporate)

The concept of being taxed twice, once at the individual level and once at the corporate level.

Government intervention

The involvement of the government in the economy through policies and regulations.

Minimal

Referring to a low level or amount of something.

Less gov't intervention

The idea of reducing government involvement in the economy.

High gov't intervention

The concept of increased government involvement in the economy.

Nature of business

Describing the type or category of a business.

Merchandising or Service

Differentiating between businesses that focus on selling products (merchandising) and those that provide services.

Merchandising and/or Service

The possibility of a business engaging in both selling products and providing services.

Hybrid

Referring to a combination or mixture of different elements or characteristics.

External facing requirement

A requirement or expectation that is directed towards external stakeholders or customers.

Liability of the Owners:

This section describes the extent of the owner’s financial obligations with creditors. The extent of liability can either be limited or unlimited.

Limited Liability

The extent to which the personal property of a business owner is protected from creditors in the event of business dissolution.

Unlimited Liability

The extent to which the personal property of a business owner can be pursued by creditors in the event of business failure.

Organizational Structure

The hierarchical arrangement and interrelationships of positions within an organization.

Functional Structure

A type of organizational structure where employees are grouped based on their similar skills, tasks, and accountabilities.

Divisional Structure

An organizational structure that groups business activities based on specific market, product, service, or customer groups.

Matrix Structure

A combination of functional and divisional structures that allows for decentralized decision-making and greater inter-departmental interactions.

Roles and Responsibilities:

 It must be clearly defined in order to minimize and avoid misunderstanding of functions. bEducational requirements and experiences required of the workers must also be specified.

Role

The specific position or group within an organization.

Identity

The person or people assigned to a particular role or group.

Primary

The main responsibility or task associated with a role.

Secondary

Additional responsibilities that a role holder must fulfill.

Interfaces

The key people or groups with whom a role holder needs to interact.

Salary Requirements

The total estimated monthly and annual salary needs of a business, including mandatory benefits.

Production Plan

Describes activities related to the production of goods.

Method

The process or technique used to convert raw materials into finished products.

Manpower

The human workforce involved in the manufacturing process.

Machine

The manufacturing equipment used in production.

Materials

The raw materials required for production.

Production Schedule

Presents the total number of goods to be produced and the expected time to produce them, influenced by factors such as demand, resource availability, and capacity.

Production Process

The different stages and procedures involved in the production of goods, including the processing procedure, required materials, and expected processing time.

Processing Plant and Equipment

Describes the manufacturing plant, machinery, equipment, and tools used in production, including their estimated costs and the selection of the plant location.

Sources of Materials

Describes the possible sources of raw materials and manufacturing supplies, considering factors such as proximity, payment terms, discounts, damages, and shipment terms.

Production Cost

Estimates the cost of production, including labor, direct materials, and factory overhead.

Operation Plan

Outlines the activities from acquiring raw materials to delivering products to consumers.

Evaluation of Suppliers

The critical evaluation of raw material suppliers and the establishment of working relationships with them.

Materials Requisition and Receiving Procedures

The procedures for requesting and receiving raw materials and manufacturing supplies, including the basis of receiving, comparison of order and receipt, and quality control.

Storage and Inventory Control System

Describes how finished goods are stored and inventory is protected against theft and losses, including owning or renting a warehouse, warehouse management, transfer procedures, and inventory control.

Shipment System and Control

Covers the approval of shipping and sales documents, terms of shipment, manner of shipping, and other terms and conditions related to sales contracts.

Functions of Support Services

Describes the functions of support services such as finance, marketing, operations, and human resources in relation to the acquisition, processing, and shipment of goods to consumers.