UNIVERSITY OF SAINT LOUIS

Tuguegarao City

SCHOOL OF ACCOUNTANCY, BUSINESS and HOSPITALITY

Second Semester
A.Y. 2020-2021

CORRESPONDENCE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind

Prepared by:

CAMILLE JAM L. SERA

MARY ANN C. BARTOLOME, MBE

Reviewed by:

MARY ANN C. BARTOLOME, MBE

Business Administration Program Chair

Recommended by:

ALICIA SILVA-TULIAO, MBE

Academic Dean

Approved by:

EMMANUEL JAMES PATTAGUAN, Ph.D.

Vice President for Academics

ENTR 1013 – The Entrepreneurial Mind | 1

 School of Accountancy, Business and Hospitality
Business Administration Department
Curriculum 2019-2020

CORRESPONDENCE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind

This Weeks’ Time Table: April 26-30, 2021

For this week, the following shall be your guide for the different lessons and tasks that you need to accomplish.
Be patient, read them carefully before proceeding to the tasks expected of you.

HAVE A FRUITFUL LEARNING EXPERIENCE 😊

Date Topics Activities or Tasks

April 26-27 Gate 3 – Execution: Machinery, Read Lessons
Methods and Management Skills This is NOT included in your Midterm Exam.
 Machinery
 Methods
 Opportunity Seizing via Operating
Model
 Management Skills
 Putting the Operating Model
Together
April 28, 29, MIDTERM EXAM Please follow your schedule during Prelims.

Good Luck and God Bless 😊

30

ENTR 1013 – The Entrepreneurial Mind | 2

 CORRESPONDENCE LEARNING MODULE
ENTR 1013 – The Entrepreneurial Mind
AY 2020-2021

Lesson 13: Gate 3 – Execution

Topic: Machinery, Methods and Management Skills

Learning Outcomes: At the end of this module, you are expected to:

1. Stimulate creativity and critical thinking in identifying opportunities and apply innovative approaches
in envisioning one’s entrepreneurial career.
2. Formulate business strategies to create value.
3. Gain knowledge in handling people, handling rewards and acquire leadership skills.

LEARNING CONTENT

Introduction:

It is only after all the tasks behind the four “gates” are accomplished that prosperity and success can be
attained.
We are already done with the first two gates; we are now going to proceed to the next gate. The third gate is
the execution gate, composed of machinery, methods and management skills. Value is actually created when
formulated strategies are executed.

Machinery is having an organization that can deliver its intended value. Methods, on the other hand, are
processes that institutionalize what needs to be done efficiently and effectively, while management skills
entail knowledge of people handling and reward handling, and having leadership skills.

The entrepreneur needs emotional quotient, or EQ to build the right culture to get things done.

ENTR 1013 – The Entrepreneurial Mind | 3

Lesson Proper:

GATE 3 – Execution: Machinery, Methods, and Management Skills

“A mind that creates. A will that excels. A

heart that cares. A team that wins. An
institution that lasts. All for the Glory of
God.”
Abenson Group

Execution – is the practice side of managing activities, makes strategy come alive.
- A great combination of strategy and execution can reduce uncertainty, lower cost, meet targets faster
and can be a source of advantage.
- Good execution softens poor strategy and gives time for the management to see and correct its strat-
egy.
- It is therefore important to think of execution during strategy formulation and involve key people in exe-
cution from the beginning.

A. Machinery – is an organization structure that can deliver the value planned.

- Machinery or organization can only be articulated after the value proposition in the offering model is
defined.
- This means strategy is the key driver of structure and value is created only if the structure is in harmony
with strategy.
- This also means a change in strategy will necessitate a review of its organization design to avoid any
contradictions.

Structure must support growth strategy; hence if market segment growth mandate, different market
segments must get sufficient attention. On the other hand, if geographical expansion is the mandate,
organization must provide sufficient attention to geographical focus to attain competitive advantage.

B. Methods – are about systems and processes that allow the entrepreneur information and control.

1. A value chain is a way to look at two different types of business activities: the first action that
creates value for a customer and the following action that supports the execution of the first action.
For instance, a grocery store may determine that offering grocery delivery is the first action that will
create value for the customer. The following actions that support the grocery delivery may include
online ordering, same-day delivery, and scheduling automatic weekly delivery. These multiple
activities are linked together to create value for the customer.

Entrepreneurs should ask themselves two related questions:

1. What functions or business processes have to be done excellently to achieve sustainable com-
petitive advantage? (a value creation approach)
2. In what value chain activities would poor execution seriously weaken strategic success? (a
problem-solving approach)

ENTR 1013 – The Entrepreneurial Mind | 4

 is the strategic linkage or a series of value-adding individual
activities required to create, produce and deliver products and
Value chain
services to the customer that is the total business plan to create
profit for the firm.

The value chain helps employees visualize and understand the role each department of an organization
plays meeting the needs of other departments. In short, the value chain describes the primary activities
needed to accomplish a firm’s task and asks the question “What’s the most efficient way to do what
needs to be done?”
- It is an expanded supply chain.

Example of the Value Chain of a Manufacturing Company

Distribut Supply End
Design Sourcing R&D Mfg Mktg Channel
ion Chain users

- The value chain above shows the flow from design to manufacturing as part of the pre-transaction
cluster; from marketing to channel as part of the transaction cluster before the end customers are
reached. Another channel can be created for after sales service as part of the post-transaction cluster.

The value chain is important especially for start-ups as it defines the time and effort required in each
stage of the value chain before products can be sold to a paying customer. The time and effort needed
also to estimate the cash flow required to get things going in the start-up.

The value chain of a company’s strategy that is differentiated will differ from the value chain if the
strategy is low cost. Differentiated versus low cost activities would be different in value and cost, hence,
can drive competitive advantage.

Materials – suppliers delivering orders is the most fundamental part in a value chain.

2. Value network / Ecosystem

o The value chain is an expanded supply chain. Value network, on the other hand, is an expanded
value chain that shows the involvement of other stakeholders in each value chain stage to co-
create value. It is also called the ecosystem.

With an online business model, members of the value chain need not have ownership of goods
before they can resell, unlike the old manufacturing model where goods are passed on from one
party to another.

Resources
a. Hard assets are physical (channel, infrastructure, technology), financial and intangible assets
(brand, IP, customer info)
b. Soft assets are human assets like relationships, skills, and knowledge.

3. Processes - transform inputs into outputs.

- Processes are critical repetitive tasks that are routinized to foster good strategy execution. It in-
cludes managerial processes, operational processes and support processes. They support the
value chain for better efficiency and effectiveness.

a. Managerial processes – govern the operation of a system such as corporate governance

(norms, metrics).
b. Operational processes – are the sequence of value-adding activities that function together
(known as value stream) that adds value to the core process.
ENTR 1013 – The Entrepreneurial Mind | 5
 c. Support processes – are procedures that support the core process, and these are purchasing,
accounting, technical and recruitment.

Process can be improved with productivity tools whenever available. Entrepreneurs must involve their
team for inputs, must listen and be open-minded with feedback because team members who are
intimate or directly interacting with customers usually know the customers’ pain points than their
superiors, being the ‘sensors’ of the company. Ensuring the employees have a voice is a great way to
bond and identify talents within the company as well. Team members with sense making skills will be
useful as your company grows.

Begin with strategy-critical processes and ensure they are aligned with your value creation strategy.

Critical processes are the processes with the biggest effect on the attainment of goals, impact key
factors for success and business strategy, solve problems encountered from a customer’s perspective
or offer greater value for the firm.

While two different items, resources and processes are treated together in the business model because
they repeatedly deliver the value proposition and the value capture. They more focused the value
proposition, the better for resources and processes to execute. Key processes rely on resources to get
things done.

a. Capabilities
As mentioned, structure comes after strategy. While the offering model answers where the firm will win,
the operating model completes the picture by answering how the firm will win, identify capabilities
needed to create an advantage.

b. Complementors
Companies cannot do everything alone. They need other people to help them deliver the value
proposition. Other items, companies may want to do something fast but lacks the capabilities to do so.
Other times, outsourcing some functions appears to make more financial sense.

c. Configuration and Cost

Entrepreneurs are always reconfiguring how to grow revenues, increase differentiation, improve cash
position while reducing cost.

C. Management skills
Execution can be built via building infrastructure to increase capabilities, which are composed of
coordination, commitment and competencies.

a. People – sharing meaningfulness and pride in their work while accomplishing required tasks.
b. Rewards – attaining a sense of identity with financial blessings while accomplishing required
tasks.
c. Leadership – having a sincere sense of mission and purpose while practicing good
governance.

We will discuss more about Management Skills on the next chapter 😊

*** END of LESSON 13***

ENTR 1013 – The Entrepreneurial Mind | 6

Learning Task

Think of a past project you have planned that has failed or wasn’t as successful as you had hoped.

1. Identify the barriers of the execution. (Why it failed)

2. How would you address these barriers? (Solution)
3. What have you learned from those mistakes?

REFERENCES

Textbooks

Go, Josiah and Escareal-Go, Chiqui (2018) Entrepreneurship: Starting an Enterprise. Having an Innovation
Mindset

Online References

"What Is a Value Chain? - Definition, Analysis & Example." Study.com, 26 April 2017,
study.com/academy/lesson/what-is-a-value-chain-definition-analysis-example.html

Learning Materials

1. Worksheets
2. Module

ENTR 1013 – The Entrepreneurial Mind | 7

 SCHOOL OF ACCOUNTANCY, BUSINESS and HOSPITALITY
Second Semester
A.Y. 2020-2021

CORRESPONDENCE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind
Lesson 13

WORKSHEET – TASKS

NAME:
COURSE & YEAR:
INSTRUCTOR:

Learning Task

Think of a past project you have planned that has failed or wasn’t as successful as you had hoped.

1. Identify the barriers of the execution. (Why it failed)

2. How would you address these barriers? (Solution)
3. What have you learned from those mistakes?

ENTR 1013 – The Entrepreneurial Mind | 8

ENTR 1013 – The Entrepreneurial Mind | 9