Pamantasan ng Lungsod ng Muntinlupa College of Business Administration Chapter I Executive Summary A. Types of Business 1. Nature of Business Nerriena’s Food Company is a manufacturing type of business. It will manufacture a highly specialized product govern by three individuals under the partnership agreement. Since partners are college friends and already built a trust to each other, they decided to combine their properties and money as a source of their profit for the best interest of their business operation. The proponents wished to enter the food industry specialized in creative alternative yet nutritious snack/merienda for the reason that Filipino are known for
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Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Chapter I
Executive Summary
A. Types of Business
1. Nature of Business
Nerriena’s Food Company is a manufacturing type of business. It will
manufacture a highly specialized product govern by three individuals under the
partnership agreement. Since partners are college friends and already built a trust to
each other, they decided to combine their properties and money as a source of their
profit for the best interest of their business operation.
The proponents wished to enter the food industry specialized in creative
alternative yet nutritious snack/merienda for the reason that Filipino are known for
being a merienda lover. Just how much do, we, Filipinos love to eat, besides the usual
three meals a day, we have morning and afternoon snack so that cassava-custard cake
is one of the best option of Filipino in taking merienda. It can also be a dessert
because it is like a leche plan but more delicious than the leche plan.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
2. Name
The owners decided the name of the company as “NERRIENA’s Food Co.” It
was derived from the name of the owners, namely; Kristine wherein Ne was
taken. rrie for Jerrilyn and na for Ronalyn. Using Nerriena as proponent’s
company name was tribute for friendship and as a compliance to their promise
before, that they will going to establish a business under that firm name.
3. Product
Cassava Custard Cake is definitely a nutritious and delicious snack. Cassava
will partly added with choco-mocha which is a unique flavor cassava cake and to
make it different in taste into the other cassava products. It is an excellent source
of nutrition and energy. Other healthy ingredients are sugar, milk, coconut milk,
cheese etc.
B. Management, Marketing and Financial Highlights
Management Aspect
Once marketing issues have been addressed, it is the time to take a look at key
organizational issues. A study of this aspect will help the management to select the
appropriate form of business, design the internal structure and staff organization, with
who is the appropriate and qualified individual to manage the business or might as
Pamantasan ng Lungsod ng Muntinlupa
College of Business Administration
well call on the certified attorney or other advisor if necessary. All of these should be
geared towards the efficient operation of the project.
Marketing Aspect
The aim of the marketing study is to ascertain the future total demand for the
product; determined the competitive situation of the product in the industry, establish
the annual quantity which it may sell, estimate the future selling prices and design of
the marketing program for the product.
The market analysis should be conducted because it is critical in the success
of the business. It results to information about the market potential which provides the
basis of accurate sale forecasts and marketing strategy.
The purpose of market analysis is to thoroughly acquaint yourself with all the
aspects of market so that you can formulate a plan to capture a share of it.
Financing Aspects
The cash requirements and financing leverage of the firm on one hand, and the
investment policies of institution on the other should be thoroughly weighed. The
purpose of this is to obtain adequate financing on the most reasonable terms.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
C. Socio- Economic Contributions
Establishing a business is very risky especially now that our economy Is
facing economic crisis condition. Taking the risks is one way of proving that there is
always a way to balance every situation in any circumstances.
Being one of those manufacturers in the food industry, we assure that we will
contribute betterment not only for us but for everybody. First we want to promote
healthy food with regards to our product. Through cassava custard cake in its simple
way we can supply the excessive loss of nutrients to maintain healthy body function
for Filipinos.
Second, we fully understand that, to find a job today is really hard, so,
Nerriena’s Food Co. is said to be a “Job Creator”
We are looking forward to generate income for economic benefits.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Chapter II
Marketing Plan
The marketing aspect is the most important part in making project feasibility study
because it serves as an instrument on the effectiveness of the strategies used as evidenced by
the sales turnover. The primary concern of the small business enterprise in making an
analysis on the trend of services and in manufacturing, the company will determine its
profitability but also the changing trends of market, for the producers/business owner to
come out with the new kinds of the product and manufacturing according to the needs of the
customer.
A. Product/Service
Food is in demand, the demand as evident, is taking a great share of the
market, just as Filipinos are starting to have the feel of enjoying quick merienda and
dessert.
Nerriena’s Food Company provides Cassava –Custard Cake that will suit
each customer’s taste preferences especially Filipinos because we Filipinos love to
eat “kakanin” even foreigners like it. Services will be open from 8:00 am to 8:00 pm
everyday.
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College of Business Administration
B. Target Market
1. Area Coverage
Location is considered essential to the marketing mix, no matter good
your product /services if it is not accessible to the target market, the effort of
the management business found out to be useless. Poblacion as a melting pot
of Muntinlupa is the accessible target place by the proponent. Nerriena’s Food
Company is located at the Poblacion Muntinlupa City beside Julies Bakeshop
near OLACS ( Our lady of Abandoned Church School) were the customer
could easily drop by to have merienda and refreshments.
2. Consumer
Cassava-Choco Delight is any age not less than 1 or 2 years old. Our product
is not just good for life but also helping consumers in maintaining their
healthy life.
C. Demand and Supply Analysis
1. Total Potential Demand
Over the years, the Philippines witnessed a substantial growth in the Manufacturing
and Food Industry food is intricately linked with its culture and traditions. Outside the
home, eating has become lucrative for the retail business. The demand for the food
like Cassava Custard Cake is now gaining for a lots of franchise business offered it.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Our company will be introducing a different style of making cassava cake and by the
product name Cassava-Custard Cake that will attract Pinoy taste preference. We have
computed the total population from the current population in Barangay Poblacion,
Muntinlupa City which is 80,801 and the growth rate is .014. See Table 1.
Table 1
Nerriena’s Food Company
Demand Schedule
Potential Customers in Poblacion Muntinlupa City
YEAR
Total
Population
.014
Projected
Demand
70%
Estimated
Demand
for CCC
5% of
Population
Projected
# of
Cassava
Cake
Projected
Demand in
a Week
Projected
Demand in
a Month
Total
demand
(Projected
demand)*12
months
2010 80,801 56,561 2,828 3 8484 33,936 407,232
2011 81,932 57,352 2,868 3 8604 34,416 412,992
2012 83,079 58,155 2,908 3 8724 34,896 418,752
2013 84,242 58,969 2,948 3 8844 35,376 424,512
2014 85,421 59,795 2,988 3 8964 35,856 430,272
Note:
.014% Growth of Barangay Poblacion, Muntinlupa City from the Muntinlupa
Municipality Projected Population of Barangay Poblacion.
70% projected demand for Cassava Custard Cake for ages 5- above y/o (3 pieces
of cassava cake per order)
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Table 2
Nerriena’s Food Comapany
Projected Sales
Year
Supply Gap*.014%
(per order)
Price
** 5%
Annual Projected
Sales
Monthly Projected
Sales
2010 57,012 30 1,710,360 142,530
2011 57,819 31.50 1,821,299 151,775
2012 58,625 33.08 1,939,315 161,610
2013 59,432 34.73 2,064,073 172,006
2014 60,238 36.47 2,076,404 173,034
Note:
.014% Growth Rate of Alabang basis for increase in supply gap
5% Inflation Rate basis for increase in price
3 slices of Cassava cake per order
2. Present Competitors
The 70% of the population of Barangay Poblacion is composed of 5 years old
and above. On the 70%, based on the survey that the proponents conducted 5% of the
total population will purchase Cassava-Custard Cake. From the total demand of
Cassava Food Industry we will have 14 % customers.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Competitors are as follows:
- Nena’s Cassava store 33%
- Julies Bakeshop 28%
- Alvarez Bakeshop 25%
Table 3
Projected Number of Competitor
Year
Total
Demand
(Projected
demand *12
mons/order)
Nena’s
Cassava
Store
33%
Julies
Bakeshop
28%
Alvarez
Bakeshop
25%
Cassava-
Custard
Cake 14 %
*supply gap
2010 407, 232 134, 387 114, 025 101, 808 57, 102
2011 412, 992 136, 287 115, 637 103, 248 57, 819
2012 418, 752 138, 188 117, 250 104, 688 58, 625
2013 424, 512 140, 089 118, 863 106, 128 59, 432
2014 430, 272 141, 990 120, 496 107, 568 60, 238
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
D. Marketing Program and Strategies
To make the people aware of this newly launched product, certain strategies
must be done even before operations. Printing of flyers will be one way of
introducing the product. The use of banners and streamers will also be effective.
Marketing Program
Product
There will be the same kind of compound to other in its nature but in its
content and mixture will differ for is more nutritious and delicious.
Pricing
As a start, we want to accept by society from the time we have opened the
business. We determine our prices by getting the large number of tallies to survey
which the people we have surveyed want the majority of the reasonable price the
price set is P30.00
E. Marketing / Selling Expenses
In this section of the marketing plan, the proponent has decided to give flyers
(leaflets), banners and streamers
Table 4
Types of advertisement Cost
Flyers (leaflets) Php. 1,500
Banners Php. 1,000
Steamers Php 500
Total Php. 3,000
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Chapter III
Production/ Operation Plan
A. Technical Production Description
The technical aspect of this study involves the proposed projects’ producing
process of the product, building and a structure, the capacity and design of the
machinery, plant size and plant layout.. This is also deals with the requirements with
the raw materials, and other supplies and the labor requirements.
The section on technical study to the Cassava-Custard Cake aims to provide a
description of the proposed process for producing Cassava Cake wherein items will
be presented only to the extent necessary to understand the business and come up
with realistic estimates costs.
The financial study will therefore reflect costs based on whatever technical
and production data the proponents and other industry sources provided. The result of
this study can calibrate and adjusted if there are charges in product design.
B. Production/ Operation Process
1. Step by step procedure in making Cassava-Custard Cake(Cassava Cake)
Step 1: Grind the raw cassava
Step 2: Squeeze the grinded cassava
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Step 3: Mixed all the ingredients
Step 4: To make topping, combine condensed milk, egg yolk, coconut
milk and sugar
Step 5: Spoon 1 tablespoon of caramelized sugar (for topping) into the
(cooking pan) llanera for topping purposes.
Step 6: Put 1 cup of mixed cassava into the (cooking pan) llanera.
Step7: Meanwhile, boil water
Step 8: When the water gets to a rolling boil, arrange the llanera with cassava
in the steamer and between stand for maximum of 1 hour.
C. Manufacturing Process
Grinding- Squeezing- Mixing- Boiling – Steaming
2. Labor and Machinery requirements per step
To complete the flow of the operation the following are needed:
Table 5
LABOR REQUIREMENTS
Food service supervisor Manager - Supervise and monitor the flow of production
- Secure the quality if the product being
purchase
- Do the tabulating and daily recording of sales
Production Chief (cook) - In charge in all product preparation
- Checks all products as it leaves the
production area and tabulates each individual
order or proportion of the product.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Cashier/ Service Crew - Receiving payment made by the customer
- Itemize and total all customer order (per day)
The following are the machines needed for the company operation:
Table 6
MACHINES / EQUIPMENTS USES
Steamer - Use to cook / steam the cassava cake.
Grinder - Grind the cassava into a very small pieces
Llanera (cooking pan - Use to have different size and designs of Cassava
cake
Electric Stove - Use to cook the product
Freezer - A storage cabinet, compartment. Or room where food
or other perishable goods can be frozen and preserved
at a very low temperature.
D. Machinery/ Equipment Requirement
Table 7
ITEM QUANTITY COST
1. Freezer 1 pc. 10,000.00
2. Electric Stove 2 pcs. 5,000
3. Grinder 2.pcs. 1,500
4. Llanera (cooking pan) 300 pcs. 3,000
5. Steamer 2 pcs. 3,000
Total 22,500
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
E. Raw Materials Requirement
Production Cost100 pcs of Cassava (produce)
Table 8
Direct
Materials
Unit(s) Cost Unit Total
Cassava 20 kilos 10.00 Per kilo 200
Chocolate
(powder)
320 ml 76.00 Per piece 76
Margarine 15 grams 25.00 Per piece 76
Cheese 2 boxes 32.00 Per box 72
Coconut Milk 10 kilos 11.50 Per kilo 116
Milk
(condense)
5 pieces 62.00 Per piece 310
Egg 50 pieces 4.00 Per piece 256
Sugar
Total
5 kilos 29.80 Per Kilo 149
Php.1,255
Indirect
Materials
Unit(s) Cost Unit Total
Plastic box 500 pieces Php.50/100pcs. Per pieces Php 250.00
Plastic bag 1,000 pieces Php.10/ 100pcs. Per pieces Php 200.00
Php. 450.00
Total Direct and Indirect Materials 1,705Multiply by 3 / slicesCost Per Order (DM) 5,115Multiply by 87 / days
445,005
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Divide by Units to be Produce 61,763 / unitsCost of Direct Materials (order) 7.21 / orderDivided by 3Cost of Direct Materials (units) 2.40 / unit
Direct Labor No. of Crew Rate/ day monthly AnnualProduction Laborer 1 300 9,000 108,000Divided by units to be produce 61,763Divided by 3Direct Labor Cost 0.58 / unit
Factory Overhead13th Month Pay 45,000Payroll Taxes 30,600Insurance 754Light and Water 29,880Repair and Maintenance 1,885Rent 2,500Depreciation 7,682Total 118,301
Divided by Units to be produce 61,763Cost per Unit 1.92 / unit
4.90 / unitMultiply by 3Cost per Order 14.70Mark up (102%) 14.99
(29.69)Price P30.00
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
F. Plant / Factory Location.
Location is a vital part in the success of the business to be established. It’s determines
the feasibility and accessibility to the propose customer.
Cassava-Custard Cake is proposed in National Road Poblacion, Muntinlupa City
besides (OLACS) Our Lady of Abandoned Church School.
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G. Plant Layout
This includes the factor plan of the establishment. This will gives us an idea of
how it will look like when it is finished. Also, the proposal layout is to be able to
allocate divide or at least can properly minimized the space.
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H. Waste Disposal System
Garbage shall be disposed through the garbage collector. Garbage truck
collectors usually garbage daily and the trash should be disposed properly. The
company’s waste disposal is located at the backside near delivery lock of the store.
Garbage will compose of biodegradable and non- biodegradable with separate trash
cans.
Water waste shall be disposed through drainage pipers installed in the
premises. The drainage pipers course the ways to the main sewerage system in the
area.
I. Quality Control
Nerriena’s Food Company aims to having satisfaction to each customers that
consumes their product. Certain standard measures should be settled to ensure
qualities of the product as well as to service. Below are someway to provide quality
control system.
Standard recipe
Standard sized and quality
Proper sanitation
Proper hygiene and cleanliness on the production (includes the proper attire of the
crews)
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Chapter IV
Organizational Structure
The organization Plan includes the study of the organization and forms of the
business with its keys personnel and officers. In this aspect we can determine the real
effectiveness of the organizational structure. The organizational plan is also important
because it presents the information and planning up the initial operation of the
business. The effectiveness of this plan will bring to realization the feasibility of this
project.
A. Legal Form of the Business
The proposed business venture named “Nerriena’s Food Company” will be organized
as a partnership; an association of two or more persons who contribute money,
property, talent or industry with the intention dividing the profit and losses among
themselves according to their agreed ratio. Each partner is personally liable for any
debt incurred by the partnership.
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B. Organizational Structure
C. Qualification of Officers
The propose business will be the General Manager, Finance Manager,
Supervisor and Customer Relation Staff or Service Crew. The employees will be
required to work 8 hours including one hour break a days. The business will start
operating from 8am to 8 pm equivalent to 12 hours. So if it is necessary in shifting
schedule, it is allowable depending on the availability of each employees/staff. Each
employee will do their duties and tasks assigned to them. It can be expected that
different special services will perform by each staff, according to the needs of the
customer.
Manager(s)
Chief Cook(s)Packaging Purchaser
Cashier(s)/Crew
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Table 9 General Manager
JOB SPECIFICATION JOB DESCRIPTION
Single
25-35 years old
At least 3 years of working
experience
Must have excellent skills in
managing a business
Analytical, hardworking and
result oriented
Leadership Skills
Graduate in BS Management
Will handle overall movement
of business
Will undertake the decision
making aspect of the business
Will allocate resources among
various assets
Responsible in preparing
financial statement every end of
the month; Income statement,
Balance sheet and Cash Flow
Responsible in disbursements of
fund and as well depositing sales
in the bank.
Table 10 Production Chief or Cook
JOB SPECIFICATIO JOB DESCRIPTION
18- 25 years old
At least 2 years in College
(HRM Course)
Must have good Cooking
Has a pleasing personality
The chief cook direct and
participates in the preparation
and serving of meals
Determines things and sequence
of operation required to meet
serving times
Inspects galley and equipment
for cleanliness and proper
storage.
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Table 11
Cahier or Service Crew
JOB SPECIFICATION JOB DESCRIPTION
18-25 years old
At least 2 years in College (have
background in Accountancy)
Must have good public relation
Has a pleasing personality
Will handle all inquiries and
phone calls
Do record keeping and
tabulating of sales (per day)
Itemize and total all customer
order (per order)
Prepares sales summary
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D. Gantt Chart
June July Aug Sep Oct Nov Dec Jan Feb
1. Gathering of useful data and information
2. Preparation procurement of location site
3. Processing the permits and license to be needed
4. Determining and purchasing of materials
5. Site development
6. Acquisition of equipment, furniture and supplies
7. Advertising and promotion
8. Recruitment and selecting of employees
9. Training employees
10. Opening of the store
E. Administrative Expense
Table 12
Position No. of Employees Rate per Month Monthly Cost
Food Production
Chief Cook
2 persons 9,000.00 18,000.00
Cashier/Service
Crew
2 persons 9,000.00 18,000.00
Packaging Crew 1 person 9,000.00 18,000.00
Total 5 employees 27, 000.00 54,000.00
Note:
Minimum rate of employees P 300.00 per day.
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration
Chapter V
F. List of Schedule
Schedule 1 Projected Sale
Year Supply Gap Price Sales
2010 57, 012 30 1,710,630
2011 57, 819 31.50 1,821,299
2012 58, 625 33.08 1,939,315
2013 59, 432 34.73 2,064,073
2014 60, 238 36.47 2,196,880
Schedule 2-a Cost of Sale
Items 2010 2011 2012 2013 2014
Raw Material Used 148,321 169,818 181,069 192,571 205,016
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Schedule 20 Office Supplies
Quantity Units Cost Unit Total AnnualMonthly Used:
Bond Paper 2 Reams 220.00 Ream 440 3,280Record Book 1 Book 65.00 Book 65 780Order Slip 1 Ream 60.00 Ream 60 720Total 6,780
Annual Used:
Time Card 1 Ream 26.00 Ream 26 312 Storage Box 1 Pc 275.00 Pc 275 3,300Ball Pen 5 Pcs 5.00 Pcs 25 300Pencil 5 Pcs 5.00 Pcs 25 300Pentel Pen 2 Pc 25.00 Pc 50 600Folder 10 Pc 5.00 Pc 50 600Total 5,412
Total 12,192
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Nerriena’s Food CompanyProject Cost
Capital Outlay Leasehold Improvement 2,500Office Equipment 5,590Office Furniture 7,195Factory Equipment 31,870.18Total Capital Expense 47,155.18
Working CapitalOperating
Pre-Operating 11,710Salaries and wages 51,000Payroll Taxes 3,090Office Supplies 12,192Water and Electricity 2,490Repair and Maintenance 565.50Allowance for Contingency 4,713.50Total Working Capital 84,921
Capital Needed 132,076.18Capital Contribution 135,000
J. Kosca 45,000R. Sales 45,000K. Zamora 45,000
Pamantasan ng Lungsod ng Muntinlupa College of Business Administration