Chapter I INTRODUCTION
This chapter discusses the background of the study, rationale of the study, objectives of the study, stud y, scope and delimitation, significance of the study, research methodology methodology,, research design, design, respondents, respondents, locale of the study, study, data gathering tool and data gathering procedure. Background of the study
A bakery is a place where products such as breads, cakes, pastries, and pies are baked and sold. Some retail retail bakeries bakeries are also cafés cafés,, serving coffee and tea to custo custome mers rs who who wish wish to consu consume me the the bak baked ed goo goods ds on the premis premises es ( www.oxforddictionaries.com www.oxforddictionaries.com ).
Aside from cakes and pastries a bakery shop also offers different varieties of bread like an de !oco, !heese "read, #nsaymada, andesal, Tuna andesal, !arrot "read, an de $onggo, Spanish bread, %aisin wheat buns, $alunggay "read, %aisin bread and many more. As well as products like "anana cake, &ruit cake, 'be cake, !hocolate cake, cupcake and many more. The type of service chosen to provide in a bakery directly correlates correlates with the type of bakery chosen to open open in the first place. place. There There are generally generally three types of service service bakeri bakeries es off offer( er( coun countter, er, spec speciialty alty,, and and sit sit)dow )down* n* caf café +www.starting)a)bakery.com www.starting)a)bakery.com. . !ounter Service are bakeries that provide counter service it is tend to be more traditional. !ounter service means all service is provided at the bakery-s counter. !ustomers that come up to the counter to pay for the bread they picked
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out or to order the sticky bun in the display case. Specialty Service is bakeries that specialies in certain types of products that provides specialty service like made to order cakes and cupcakes and etc. Sit)/own or !afé)like Service is a bakery that chooses to incorporate full menus and also incorporate full service. "akeries with cafés generally enjoy higher profits, but must also deliver great customer service and clean seating areas +www.starting)a)bakery.com +www.starting)a)bakery.com. . 0n 1eneral Santos !ity, although there is lots of existing bakery shops, the customers customers are looking looking for healthier version of baked)goods baked)goods especially to breads +e.g. wheat bread, carrot bread, malunggay bread, etc.. Also, customers are most interested in breads with low sugar, whole grain and ero grams trans fat serving where most of the existing bakery shops cannot cater +$intel, 2334. 5ence, the researchers conducted the study to determine the viability and profitability of putting up a bakery in 1eneral Santos !ity and to meet the needs and wants of the customers through providing a healthier and tastier baked) goods. Rationale of the study
The researchers chose to conduct a study of putting up a bakery business in 1eneral Santos !ity to know if there is a demand that will lead to profitability profitability.. Also, to know what are the risks involved so that if the study will be put into realiation, the problems or circumstances that will arise in the future will be eliminated immediately. immediately.
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$oreo $oreove ver, r, the the resear research chers ers cond conduc ucte ted d a study study of bake bakery ry busi busine ness ss to determine the viability of this venture in marketing, technical, management and organiation, financial and socio)economic aspects in 1eneral Santos !ity. Objectives of the study
This study aimed to determine the viability and profitability of putting up bakery in 1eneral Santos !ity. Specifically, it sought to( 6. Analye the "akery 0ndustry in 1eneral Santos !ity 2. resent the description of the proposed bakery business 7. /etermine the feasibility of the proposed project in the following aspects( a. $arketing8 b. Technical8 c. $anagement and 9rganiation8 d. &inancial and8 e. Socio)economic. cope and Deli!itations
The study focused on determining the viability and profitability of putting up a bakery in 1eneral Santos !ity. The study also focused on the discussion of the the five five +: +: majo majorr aspe aspect cts s of the the busi busine ness. ss. The The marke marketi ting ng aspect aspect,, whic which h highlighted the products to be offered and its prices, target market and the promot promotion ional al strate strategy gy.. The techni technical cal aspect aspect,, which which stresse stressed d the operat operation ional al proces process s and servi service ce flow flow.. The The mana manage geme ment nt and orien orienta tati tion on aspec aspect, t, whic which h showed the form of business organiation, the employees to be hired, and their
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salaries to be received. The financial aspect which emphasied the performance and condition of our bakery for the incoming years. ;astly, the socio)economic aspect which showed the benefit of the business to the economy and the society. Thus, study was delimited from the data where the researchers gathered from the respondents. 0n making the research, a time frame is intended to help the researchers to conceptualie and prepare a research proposal. 0ndicating the se
The following are the beneficiaries of the proposed business( existing players "#isting $layers% The result of the study will provide the existing additional knowledge and better understanding of the entire operation of the business. They will be updated on the current trends in bakery business. &ob eekers eekers%% The result of the study will give them knowledge and be
aware them on the proposed business for the future job application. 'ocal (overn!ent of (eneral antos City% The result of the study will
benefit them on how to operate a bakery and also on how to support on the development of the bakery baker y industry in the city. Researchers% The result of the study will help the researchers to develop
their skills in running a business and will help them to be ready in this future undertaking.
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Other Researchers% Researchers% The result of the study will help them to use as a
guide and reference on putting up a bakery business. 0t will also give knowledge to do research that is related to this study. Research )ethodology
The research methodology discusses the research design, respondents of the study, locale of the study, data data gathering tools, data gathering procedure, and definition of terms. Research Design
0n order to get the information from the respondents, the researchers used the descriptive exploratory method. This method is helpful since it is focus on the disc discov overy ery of ideas ideas and and insi insigh ghts ts in coll collect ectin ing g the the accur accurat ate e data data about about the the importance and significance of the study. The The method helps in assessing the data gath gather ered ed from from the the resp respon onde dent nts s in the the aspe aspect cts s of mark market etin ing, g, tech techni nica cal, l, management and organiation, financial and socio)economic +>owalcyk, 236:. &igure 6 on the page ? shows the research design of the study. 0t shows the overall content of the study which includes the objectives of the study, research methodology, respondents, locale of the study, and the tool used in gathering data. The primary data were gathered through using an interview guide and the data serves as a basis in the conducting the internal assessment assessment of the proposed business which as a result identifies the putting up of the proposed business which is the feasibility study of putting up a bakery in 1eneral Santos !ity.
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, *easibility study of putting up a Bakery Research )ethodology
Objectives of the tudy
The Industry
Research Design
/escriptive #xploratory Business Description
'ocale of the study
1eneral Santos !ity -iability
Respondents
$arketing Aspect
1oldilocks
Technical Aspect
%ed %ibbon
$anagement @ 9rganiation
%olee "akeshop
&inancial Aspect
;eonidas !akes @ astry
Socio)#conomic Aspect
=o)anns "akeshop Data (athering Tool Tool
0nterview 1uide
*easible Bakery in (eneral antos City
*igure +% Research Design
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Respondents
The respondents of the study were the manager and personnel of the select selected ed major major players players namely namely,, 1oldil 1oldilocks ocks,, %ed %ibbon %ibbon,, Aunt Aunt ;udi, ;udi, %olee %olee "akeshop, ;eonidas !akes @ astry, and =o)anns "akeshop. The researchers chose these respondents because they have more experience on how to operate and manage a bakery and already have a good reputation in the industry. 0n addition, they were operating bakery businesses that are related to the study. 'ocale of the tudy
The The stud study y was cond conduc ucte ted d in 1ene 1enera rall Sant Santos os !ity !ity.. 0t is know known n as progr progress essiv ive e city city becau because se of the the exis existi ting ng diff differe erent nt busi busine nesse sses s ente enterp rpris rises es,, buildings, hotels, malls and especially there are existing excellent colleges and universi universitie ties. s. As the numbers numbers of establ establish ishment ments s are sudden suddenly ly increas increasing ing,, the demand also increases and the researchers believe that this is the ideal place of the proposed business. Data (athering Tool Tool
The data gathering instrument used in the study was interview guide. This was used in determining the five +: major concept of the industry, marketing, techni technical cal,, managem management ent and organi organiat ation ion,, financi financial al and socio) socio)econ economi omic. c. The interview guide was used to gather information that is needed in the study. 0t only contains a few topics to cover in the interview. 0nterview guide was used as a suggestive reference or assistant during interview. 0t helps in looking attention onth onthe e main main poin points ts of the the rela relate ted d stud study y and and in secu securi ring ng the the same same kind kind of information in different interview or interviewers.
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Data (athering $rocedure
The researchers first identified and selected a respondent and make a letter of intent and interview guide which formulates some
To further understand the unfamiliar words these are defined operationally( business that ,,.s Bread / Cakes (allery 0 The name of the proposed business the researchers want to establish in 1eneral Santos !ity. This is the the propo propose sed d busin business ess that that the the resea researc rcher hers s want want to Bakery0 This establish. The study study that that resea researc rcher hers s condu conduct cted ed that that refers refers to an *easibil *easibility ity 0 The anal analy ysis sis and and evaluation evaluation of a proposed project project to determine if it is technically feasible, if it is feasible within the estimated cost, and if it will be profitable.
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researchers want )arketing ,spect ,spect 0 This is one of the aspects that the researchers to determine if the proposed business is feasible. 0t refers to the products to be offered, the target market and the promotional strategy. Technical ,spect 0 This is one of the aspects that the researchers want
to determine if the proposed business is feasible. 0t refers at the operational process and service flow. )anage!ent and Organi1ation ,spect 0 This is one of the aspects that
the researchers want to determine if the proposed business is feasible, that refers to the form of the organiation and the employees to be hired and their salaries. *inancial ,spect 0 This is one of the aspects that the researchers want
to determine if the proposed business is feasible. 0t refers to the performance and condition of the proposed business for the incoming years. aspect ects that the oci ocio2 o2"c "co ono!i no!ic c ,spec spectt 0 This is one of the asp researchers want to determine if the proposed business is feasible. 0t refers to the benefit of the proposed business to the economy and society.
Chapter II R"-I"3 O* R"',T"D 'IT"R,TUR"
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This chapter discusses related studies of bakery in &oreign, Bational, and ;ocal. *oreign
"ased on company sales that were submitted to the $inistry of !ommerce by ;arive, 2367, the Thai baked goods market was estimated estimated to be worth nearly 24 billion baht in 2362. Accordin According g to leading leading players the market grew at least 63 percent per year during the past few years and will continue to enjoy annual double digit growth of 63)6: percent in the short to medium term as a result of increasing number of in)store bakery shops and retail outlets. According to ;arive +2367, that according acco rding to /echSangrijan, Thai "akery Association resident, in "angkok and large cities upcountry, the Crice for breakfast
traditionD
is
gradually
being
replaced
by
breads* breads*cro croissa issant* nt*san sandwi dwiches ches*et *etc. c. especia especially lly amongst amongst female female office office workers workers.. !ompared with other countries in Asia, Thailand is perceived to be lagging behind in bread per capital consumption and there is certainly a room for growth. "ut accor accordi ding ng to $uvs $uvsii %esea %esearc rch h /esk /esk +$ay +$ay 22, 22, 236? 236?,, the the bakery bakery business in 0ndia is the largest industry in food processing sector. The most common product are bread and biscuit but other items like cake and pastries are also popular in 0ndia. 0t is also stated that bakery business in 0ndia is one of the most profitable food processing opportunity, to select what product to offer and having having a proper proper market marketing ing strategy strategy are the major major decidi deciding ng factor factor in gettin getting g succession in the bakery business.
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0n 0ndia, there are sufficient automatic and semi)automatic bread as well as biscuit manufacturing units but there are still number of people prefer fresh bread and other products from local bakery. "akery products are an item of mass consumption in view of its low price and with rapid growth and changing eating habits of people, bakery products have gained popularity among masses +Anurag $ore $umbai, =une 2:, 2362. According to Anurag $ore $umbai, +2362, the bakery industry has achieved third position in generating revenue among the processed food sector. The market sie for the industry is pegged at 'SE F.4 billion in 2363 and is expected reach 'SE4.? billion by 236:. 0t also mentions that the shining star of the sector remains the biscuits industry, which is expected to outperform the growth of the sector overall. 0t was also reported by %esearch and $arkets +&ebruary, 2362, the global baked goods market has shown rapid recovery following the economic recession, recording strong growth over recent years. &actors fuelling market expansion include include convenience, convenience, affordability affordability and health health benefits benefits of baked goods products. products. /emand for healthier fortified baked products has also driven sales. "ut Anurag $ore $umbai +2362 also reported that as the business and the industry thrives, the challenges accruing out of it are also growing at a fast pace. Admittedly, the 0ndian bakery industry is not really geared up to face the daunting task that lies ahead, which is of striking a balance. The per capita consumption of bakery products in 0ndia, as it stands today, is one to two kg per annum, annum, whic which h is comp compar arat ativ ively ely lowe lowerr than than the the advanc advanced ed count countrie ries s where where
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consumption is between 63 and :3 kg per annum. The growth rate of bakery products has been tremendous in both urban and rural areas. Ghile another another report by Timothea Timothea Hi, a /emand $edia +2362, a growing growing albeit paradoxical trend in the bakery industry in '.S is that, consumers are hungering hungering for both healthy baked goods and comfort foods. The bakery industry industry has shown signs of recovery from the recession with an emphasis on products with natural and organic ingredients, as well as smaller portion sies. The '.S. bakery industry was comprised of commercial and retail baking operations that combined to generate E77 billion in annual revenues. Ghile there were fewer commercial bakeries, or 2,I33, compared to ?,333 retail stores, the former produced J6 percent of the industry-s profits. &urther, those profits tended to be concentrated concentrated among the top commercial bakeries, bakeries, whereas retail bakeries were more fragmented as a whole. Among the products sold to customers, bread and rolls rolls surpass surpassed ed cakes, cakes, pies pies and other other retail retail bakery bakery product products s combin combined ed +Timothea Hi, 2362. 0n the demand for bakery machinery and e
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e
As writers of the book on hilippine breads, =enny 9rillos and Amy 'y +2362 states that they were treated to a glimpse of the state of the baking industry in the country at the "akery &air, a three)day event held at the Gorld Trade !enter from =anuary 73 to &ebruary 6. "ecause of that scenario, they conclude that the future certainly looks right for hilippine baking. There are large bakery shops in $etro $anila, and some of its major players are( "anapple ies and !heesecakes, Gildflour !afé K "akery, 5ions !akes and astries, The &rench "aker, >rispy >reme /oughnuts, urple 9ven, ati atisse sseri rie" e"eb ebe e %oug %ouge, e, Gild Gild &lou &lourr "ake "akery ry and and !afé !afé !o., !o., =.!o =.!o /onu /onuts ts and and !offee, !innabon and an de $anila. According to Stephen >yle +2367, in the bakery industry to have a long life business, marketing strategy is not enough selecting the right employees is a must. Ghether it is a small or a big bakery it is important to select a highly)skilled and flexible bread baker with creativity freedom is needed. 0t is important to ensure that the employees especially the manager have an experience and have strong administrative skills including managing costs, its staff and production schedules. 0t is also needed to have an employee that knows how to handle and entertain customers and loves to participate in imparting knowledge on how to develop new products.
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According to $anny +$arch 27, 233I, in every company, the location is being considered as a must whereas production undergoes and because location is one of the key for the business to succeed. 9ne of the bakery business in $anila the &rench "aker, aside from offering a fresh and delicious breads, one of its marketing strategy is it offers a free use of G0&0 and charging stations for laptops laptops and mobile phones so customers tend not just to buy breads but to stay and order again and again. This marketing strategy is effective on attracting customers. So, as time flies, &rench "aker got more than 73 branches around and counting. Ghile a study conducted by Goods $. Thornsbury +233J reveals that opportunities in the hilippine market are present in the bakery and food service sector, in contrast to many other Asian economies, bakery products have a well) established presence in the hilippine diet. Trends in the bakery industry include8 increasing though somewhat slower sales of bakery products in 233I, continued importance of artisanal bakery items marketed through local bakeshops and sari) sari stores8 single serve cakes and desserts that allow cost conscious consumers to indulge in dessert items8 and healthier product offerings that capitalie on increased awareness of the attributes of some products. The supply and distribution system for bakery ingredients, specifically fruit ingredi ingredient ents, s, is not well well docume documente nted. d. 5owever 5owever,, two major major #urope #uropean an bakery bakery ingredi ingredient ent compani companies es have have an establ establish ished ed presence presence in the hilip hilippin pines. es. 0t is projected that the food service sector will likely continue to expand, though growth may slow somewhat because of the recent global downturn. Similarly,
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new western type dessert items, targeted toward some of the major bakeshops or even artisanal bakeries could be successful. "y capitaliing on trends in consumer tastes, bakeries of all sies can increase their margins and stay in business. Small companies can cater to peoples peoples desire for handcrafted artisanal artisanal products products and thus build a recogniable recogniable niche that larger operations would have a hard time replicating. "akeries can make use of par)baked products to cut down on baking time, or appeal to growing demand for organic products by applying for certification. Small steps like these can swing the industry currents in a bakerys favor. 'ocal
;ike any other booming cities, 1eneral Santos !ity is known as one of the fastest growing cities of the country and investors are slowly invading the city. 0t is a progressive city because of the existing different businesses enterprises, buildings, hotels, malls, and excellent colleges and universities. According to $intel +2334 !akes and ies %eport, approximately ?7 percent of people who eat cakes and*or pies would like to see healthier versions of those same baked goods on the market. Specifically, respondents said they are most interested in baked goods with low sugar, whole grain and ero grams trans)fat per serving. To put this into perspective, consumers say they are willing to pay more for bakery items with healthier profiles. !onsumers are savvier than ever about different fats, including trans and saturated fats, and increasingly demand trans) fat free alternatives for the food they enjoy.
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According to =anice >ho, in terms of facilities, it is very important to to have a good one to make the customers feel comfortable and convenient and a high
ho, manager of the =o)Anns "akeshop, that the business helps generate employees and also helps resellers. The interviewee also states that the business gives the government source of taxes. 0n terms of social responsibility, the business have a housing project to help their employees. The business also using a food grid biodegradable packaging materials +$%&.
Chapter III
17
T4" INDUTR5
This chapter discusses the roducts and Services offered by the proposed busine business, ss, the $ajor $ajor layer layers s of the 0ndust 0ndustry ry,, $arket $arket Trend Trends s and /irect /irection ions, s, !apacity of the 0ndustry and its >ey Success &actors. $roducts and ervices
"akeries generally offer the following categories of baked products( !akes and "reads. These are some of the variety of !akes offered by AAs "read and !akes !akes 1allery 1allery such as( &ruit &ruit !ake, !ake, !hocol !hocolate ate !ake, !ake, !upcak !upcakes, es, 'be !ake, !ake, !hoco %oll, "anana !ake, $ocha %oll and !hiffon !ake. Aside from that varieties of breads will also be offered such as( an /e !oco, $onay, $onay, %aisin Gheat buns, %aisin %aisin "read, !oco #mpanada, an /e Sal, an /e $onggo, Tuna an de Sal, #nsaymada, !heese "read, "read rolls, !arrot "read, $alunggay "read, Spanish "read, Gheat "read. Also, it offers coffee and juice. AAs AAs "read and !akes 1allery will incorporate full menus and service that will provide a great customer service and clean seating areas for its valued customers. 0t also provides customied cakes and cupcakes depend on customers choice of design that good for all occasions. )ajor $layers in the Industry
0n 1eneral Santos !ity, there are many big and small players when it comes to bakeries. All of these players are competing and offering the same products and services. "ut some additional services are made depending on the owner of the business.
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5ere 5ere in 1eneral 1eneral Santos !ity, !ity, there there are 637 registe registered red bakeri bakeries. es. The The researchers only chose six +? major players which are =o)Anns "akeshop, 1oldilocks, %ed %ibbon, Aunt ;udi-s"akeshoppe, %olee "akeshop, and ;eonidas !akes and astries. These players are also offering the same products and services but they differ only in the years of experience in the industry. (oldilocks is one of the major bake shops in 1eneral Santos !ity who
also also offe offers rs cakes cakes and and past pastri ries es loca locate ted d at S$ !ity !ity 1ens 1ensan an and and >!! >!! $all $all.. 1oldilocks was first opened in 6J??. According to the staff their peak season is during Lalentines /ay, !hristmas /ay and Bew Mears #ve. 0t has already 6J2 branches all over the hilippines. locate ted d at "ula "ula %oad, %oad, 1ener 1eneral al Sant Santos os !ity !ity.. &o2,nn.s &o2,nn.s Bakeshop Bakeshop is loca According to the interviewee, the first branch was established on 6J?I. Their targ target et marke markett is all all the the consu consume mers rs in the the city city whil while e thei theirr peak peak seaso season n is !hristmas and Bew Mears #ve. Red Ribbon is located at S$ !ity 1ensan and >!! $all. 0t is a popular
bakery in bakery in the hilippines hilippines and and offering a wide range of cakes and pastries. The chain began in the hilippines in 6J4J and it already has 233 branches all over the hilippines. ;ikewise, its peak season is during 1raduations, Lalentines /ay, !hristmas /ay and Bew Mears #ve. Rolee Bakeshop is a growing chain of bakeshop churns out fresh bread
and pastries daily that are enjoyed by both locals and tourists. 0t is located at Santiago "oulevard, 1eneral Santos !ity. 0t has already 7 branches in 1eneral Santos !ity and 67 branches all over the hilippines.
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proudly dly a 5ome 5omegr grow own n 1ens 1ensan an "ran "rand d with with ,unt 'udiBakeshopp 'udiBakeshoppe e is prou bran branch ches es
at
%obi obinson nsons s
lace lace
1enS enSan
and =@1 =@1
rop ropri ried edad ad
"uil "uildi ding ng,,
urok$alakas urok$alakas and S$ 1enSan. 1enSan. This is the first bake shop in 1eneral 1eneral Santos !ity !ity and Saranga Sarangani ni rovince rovince to be given given a 5alal 5alal !ertif !ertifica icatio tionbyt nbythe$ he$inda indanao nao 5alal Authority. 'eonidas.s Cakes and $astry arises on its convenient location at =.
!atolico Avenue, 1eneral Santos !ity. The owner chooses this location because it is visible and near the different establishments and schools. )arket Trends and Directions
The market trends for this kind of business is increasing all throughout the years since the baked and pastry products are now innovated and customied by customers choices. Aside from that, market trend has changed from simple into designed breads and pastries. ;ikewise, the development of new products is directed either towards creating something healthier or something better tasting. 0nnovation, however, is no longer limited to pastries, cakes or bread loaves as even the popular local bread8 pan de sal is being reinvented. So with these trends in the market today the direction of the bake shop business will soon be arising and be competitive like any other businesses. !hanges and innovations of breads, pastries and other baked products will result to higher customers demand and it would have a big benefit to bake shop owners and future bake shop entrepreneurs. Capacity of the Industry
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/ue to the increased demand for bakery products from the population in 1eneral 1eneral Santos !ity !ity, the baking baking indust industry ry has grown, grown, leadin leading g to it providi providing ng grea greate terr empl employ oyme ment nt oppo opport rtun unit itie ies s both both in the the bake bakeri ries es and and in cent centra rall management. 0n order to remain competitive in the industry, some factors should be considered like the ability to pass on cost increases to the customer. This means that as the price of inputs rise, it is important that the price of the end product reflects that increase and the customer bears some of the burden of increased costs. Second, secure supply contracts for key ingredients. This part of the risk involved in operations will come from the fluctuation of prices and availability of key inputs. 1uaranteed supplies at fixed prices reduce the risk of shortages and helps in planning and budgeting. Third, efficient efficient work practice practice which means realiing realiing efficiencies efficiencies in labor and production methods will help to increase profits, especially in larger scale facilities facilities that produce more volume. volume. roduct differenti differentiation ation is also considered. /ue to the mature nature of the baked goods industry, remaining innovative in product offerings offerings can help to spike demand and drive increases in market share by standi standing ng out from from the compet competiti ition. on. ;astly, ;astly, the abilit ability y to adapt adapt and change change.. "ecause of changing consumer preferences and the fluctuating cost of inputs, it is important to anticipate and respond in a timely manner. 6ey uccess *actors
A key success factor is a performance area of critical importance in achieving consistently high productivity and helps the business to attain its goal.
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These are the key success factor of AAs AAs "reads @ !akes 1allery( 7uality $roducts% The existing players implemented and ensured a good
are located near schools, offices and other establishments. A place in which will give you the upper hand, a position which plays a part in a predetermined plan and will give an accessible location to the proposed business. )odern "8uip!ent "8uip!ent . 'sing modern e
opportunity to improve the knowledge of employees and will also help to faster the production. Co!petent Co!petent "!ployees "!ployees . !ompetent appraisal of individual performance
in an organiation or company serves to improve the overall effectiveness of the entity. Co!petitive $ricing . Setting a price in comparison with competitors can
help attract or retain customers. Custo!er Custo!er relations relations . 5elps the business retain customers* consumers
and improve profits as it costs less to retain a customer than to ac
Chapter I-
22
BUIN" D"CRI$TION
This This chapt chapter er disc discuss usses es the the genera generall desc descrip ripti tion on of the the ventu venture re whic which h incl includ udes es the the "rand "rand Bame, Bame, rod roduct uct*S *Serv ervic ice e &eat &eature ures s and and Style Styles, s, rodu roduct ct ;abeling, ;abeling, 'ni
The proposed business b usiness will be named AAs AAs "read and !akes 1allery to be located at "eatiles Street, "arangay /adiangas South, 1eneral Santos !ity. 0t will will be specifi specifical cally ly locate located d betwee between n %amon %amon $agsay $agsaysay say $emoria $emoriall !olleg !olleges es +%$$! and ;/T. The proposed business will rent a lot with F23.2: s
Business Na!e
23
The proposed business will be named, AAs "read and !akes 1allery as agreed by the researchers. The brand name of the proposed business derived from the initials of the first names of the researchers. AA stands for Ann and Asfahani. Also, the researchers believed that the brand name is classy. Aside from the classy word, the word C1alleryD means a room or building for the display or sale of works of art. 5ence, the researchers chose that name because of its catchy sound, easy to recall and not difficult to pronounce. $roduct *eatures and tyles
The proposed business will offer a Ccafé)likeD ambiance to the customers and will offer a full menu of breads, cakes, pastries and tarts. The atmosphere of the place will give more convenience for customers to hang out with friends and loved ones while enjoying a free wifi hotspot while ordering varieties of baked products. !onsumers first impression on a product depends on its presentation and how it can catch their attention based on the way it is displayed in shelves. ;ikely, bread and pastries products features and styles are important to customers and its visibility on their eyes. Lisual presentation is not the only one to be considered but also how the product tastes and its style on how it is prepared. 0n general, bread should be soft and tender inside, with a good crumb. The crust should be evenly convex and golden brown or a bit darker while pastries tenderness depends on the relative amounts of fat and water used used and on the the mani manipul pulat atio ion. n. The The fatt fatter er and and the the less less wate waterr used, used, with within in limi limits ts,, the the tendered will be the crust. 5andling the paste develops elasticity by developing
24
gluten, and so makes a tough crust. 0f the fingers are used to mix the fat with the flour, the heat heat of of the fingers melts the fat and causes it to act as li
The figure below shows a baker holding freshly baked bread and a rolling pin. This generally means that the AAs "read and !akes 1allery offers not only fresh breads but also varieties of freshly baked pastry products. And also the researchers put a tagline which says CNuality is our riorityD8 this means that the bakery offers a good
*igure 9 Business 'ogo Uni8ueness of the $roduct
25
!ompare to other bakery shops, the proposed business will offer a full menu menu to the the cust custom omer ers s whic which h incl includ ude e varie varieti ties es of fres freshly hly bake baked d bread bread and and pastries while they can enjoy a free wifi hotspot with a convenient and full air) conditioned place. The bakery will also accept customiing of cakes*cupcakes which customers can put a dedication, greetings or message at the top of the cake. cake. The The mana managem gement ent will will also also assur assure e that that the the empl employ oyees ees will will treat treat the the customers right by empowering and motivating them. $otential of the -enture
The proposed business has the potential to earn profit here in 1eneral Santos !ity because of the increasing demand due to increasing population and its nearly schools, schools, offices and other establishment establishment.. Through Through this, there is higher possi possibi bilility ty that that the the cons consum umers ers avai availl the the produ product ct offe offere red d by the the prop propose osed d business. Business trategic $lan -ision
AAs AAs "read and !akes 1allery envisions being the number one choice of the customers, leading in
AAs AAs "read and !akes 1allery aims to offer a high high
26
AAs AAs "read and !akes 1allerys objective is( •
To be a leading a reputable bakery.
•
To provide good
•
To be competitive in the market.
•
To offer jobs in the community.
3OT ,nalysis
The following are the possible strengths, weaknesses, opportunities and threats in establishing a bakery in 1eneral Santos !ity. trengths
7uality $roducts . roduct
breads, cakes and pastry. 0t shall give benefit of product differentiation. ,ccessible ,ccessible 'ocation% 'ocation% The proposed business location will be placed in
such area that can easily be accessible to the valued customers. "ecause its near from the church, city park, ;1' offices, offices, schools and some establishme establishments. nts. !ompetent #mployees. 5as experienced, well)trained and knowledgeable staff is hired. lace e and and the the feel feelin ing g of bein being g at home home whil while e "#cellent "#cellent a!biance a!biance . lac enjoy enjoyin ing g thei theirr food food is itsel itselff a plea pleasu sure re exper experie ience nce that that give gives s the the prop propose osed d business an advantage over others. 3eaknesses Ne: "ntrant in the industry% The proposed business has not yet serves
27
complete varieties because it is only new in the market. The proposed business is a startup and the odds are laced against. 0t will also face a stiff competition from the local players. i!ilar $roducts Offered O the products of the proposed business are
available and offered by existing player. Opportunities Business Business "#pansion% "#pansion% 0t would be an advantage for the business if it will
achieve its goals. 0t can expand its building and they can add branches in nearby municipalities and cities in South !otabato. (ro:ing )arket% "akery 0ndustry is growing at a fast speed and demand
for
and pastries. Threats
rious busi busine nesse sses s have have alre already ady put put up thei their r Inten Intense se Co!p Co!peti etitio tion% n% Larious names in the minds of the customers and have already been known in the city and this is a threat for the venture. Inflation . 0ntense competition in which competitors cut their prices to gain
more income. carcity of Ra: )aterials% )aterials% The producers have a limited stock*s of the
raw materials that are needed.
28
'ocatio 'ocation n ,nalysis% nalysis% The proposed business will be located at "eatiles
Street, "arangay /adiangas South, 1eneral Santos !ity. This has been chosen because it is nearly schools, offices and other establishment.
'ocation )ap
29
;ocation map is a simple map to show the location of a particular area within its larger well)known environment.
The proposed proposed business
*igure ; 'ocation )ap -icinity )ap
30
The vicinity map shows the location setting of the proposed business. 0t shows the particular nearby streets and the whole setup in the chosen location of the proposed business.
Plaza Heneral Santos
Pendatun S.dne .
Roas !"enue
#-'
#auio *aa an
ron #oosto re
-r. (oods
P % ' , $ $ R
! ) $ , + $
R//
#abera /aazine ,es
&andban o the
The propos ed busine
# $ ! T % & $ S
P&-T
Philippines
S T R $ $ T
*igure < -icinity )ap Chapter ),R6"TIN( ,$"CT
*estern +nion
'&P()
31
This chapter discusses the market research and analysis which includes the target market, estimated market share and the intensity of competition. 0t also presents the marketing strategy which consists of sales and distribution8 order process processing, ing, invent inventory ory contro controll and manage managemen ment, t, storag storage e of invent inventory ory,, pricin pricing g strategy and promotion strategy. strateg y. )arket Research and ,nalysis
The market research and analysis discuss about the target market of the propo propose sed d busine business ss,, the the esti estima mate ted d marke markett share share and and the the inte intensi nsity ty of the the competition among other bakeries in 1eneral Santos !ity. Target Target )arket
The primary target markets of the proposed business are bread lovers, employees and students. Mounger customers may order pastries from a bakery, while families may drop by for breads and rolls. Some customers have different perceptions and lifestyles, some may believe in the importance of a gluten)free diet, while others might be interested only in high)fiber breads and rolls. The secondary target market of the proposed business will be the people who came from churches as well as those travelers. "sti!ated )arket hare
The researchers have estimated that the proposed business will have 63P 63P share share in the the mark market et in the the baker bakery y shop shop indu indust stry ry.. This This 63P 63P comp compri rise se indivi individua duals ls who will will buy differ different ent varieti varieties es of baked baked product products s includ including ing those those schools, offices, churches and travelers. The 23P will represent the free market
32
and the 43P will include the six +? major bake shops in 1eneral Santos !ity that already exists in the market.
$istin /aor Pla.ers
ree /aret
Proposed #usiness
*igure = "sti!ated )arket hare Intensity of Co!petition
As of =uly 236:, the /epartment of Trade and 0ndustry gave one hundred three +637 lists of registered bake shops in 1eneral Santos !ity. Their existence has been known known alre already ady in the the mark market et and and has has thei theirr own own way of gain gainin ing g customers. The researchers decided to put up a bakeries knowing that there are still groups of individuals individuals who seek for a new taste of baked goods. Bot only have a typical bakeries that will only offer breaded but as well as varieties of pastries and sweets while enjoying the exceptional customer service in a comforting atmosphere. The accessible location together with the
33
great advantage to its competitors. This will be their means of competing among its competitors in the industry. industr y. )arketing trategy
$arke $arketi ting ng strat strategy egy is the the fund fundam ament ental al goal goal of incr increas easin ing g sale sales s and and achieving achieving a sustainable sustainable competitive competitive advantage. This is also an organiation organiations s strategy that combines all of its marketing goals into one comprehensive plan. ales and Distribution trategy
The The sale sales s and and dist distri ribu buti tion on strat strategy egy of the the propo proposed sed busi busine ness ss will will be retailing. This is a commercial a commercial transaction in transaction in which a buyer intends intends to consume the good or service service through through personal, family family,, or household household use. use. Order $rocessing
9rder processing is a work flow associated on how to meet the needs of the the custo custome mers. rs. The The propo propose sed d busi busines ness s will will accom accommo moda date te the the order order of the the customers directly after the in
0n
34
Accommodation
ayment
roduct
*igure >% Order $rocess
Inventory Control and )anage!ent
The proposed business will use &irst)in)first)out +&0&9 method in their invent inventory ory and control control management management.. This This is a method of invent inventory ory evalua evaluation tion based on the assumption assumption that that goods are sold or used in the same chronological chronological order in in which they are bought bought.. 5ence, the cost of goods purchased first purchased first +first)in is the the cost of goods sold sold first +first)out +first)out.. An effect effective ive food rotation rotation system system is essen essenti tial al for for stor storin ing g food food to prepa prepare re for for catastrophes catastrophes,, prev prevent entin ing g food borne illness and illness and controlling commercial kitchen costs. Ghen used correctly, the first)in first)out food rotation method ensures serving safe food and eliminates spoiled food waste. torage of Inventory
35
The stora orage roo room of the bake sho shop will be locat cated inside the establishment. 0t will be beside the production area where cakes, breads and pastries are baked. The storage room will be rest assured to keep bulk of ingredients such as sugar and flour fresh and uncontaminated. $ricing trategy
The proposed business will use penetration pricing method as a pricing strategy. The proposed business will set a lower price to increase sales and market share. 9nce market share has been captured the bake shop may well then increase their price. This is also an effective effective strategy strategy in order to attract attract the customers to patronie and try the new products that are produced by the bake shop. $ricing tructure
The pricing structure shows the classification, sie and the prices of the product. The table 6 on the next page shows the pricing structure of the proposed business.
Table + $roducts $rice Cake
36
i1e and $rice S
!ake
!ake
%oll !ake
er Slice hp2:.3
"anana !ake
)
)
)
3 hp2:.3
!hiffon !ake
)
hp233.33
) hp2J:.3
3
!hoco %oll !hocolate
)
)
3
) hpJ:.3
!ake &ruit !ake
hpFJJ
hpFJJ.33
)
3
hp733
hp2F:.33
)
)
)
hpF4:.33
) hp2?J.3
)
)
3 hp2?3.3
)
)
hpF43.33
3
)
$ocha !rumble
$ocha %oll 'be !ake
Table 9 $roducts $rice Breads
37
i1e and $rice $roducts "read %olls !heese "read !arrot "read !oco #mpanada #nsaymada $alunggay "read $onay an /e !oco an /e $onggo an /e Sal %aisin "read %aisin Gheat "uns Spanish "read Tuna andesal Gheat "read
6 ;oaf hp2:.33 ) ) ) ) ) ) ) ) ) hpF:.33 hp73.33 ) ) hp?3.33
6 iece ) hpI.33 hp62.33 hp:.33 hp63.33 hp:.33 hpF.33 hp:.33 hp:.33 hp7.33 hpI.33 ) hpI.33 hp:.33 )
Table ; $roducts $rice Beverages
$roduct !offee
=uice
$rice
hp6:.33 hp23.33
$ro!otions
0n order order to raise raise the awarene awareness ss of the people people about about the new bakery bakery,, promotion will be used, such as using of social media, flyers and signs. This idea
38
will productively make the business known to everyone. The following are the promotion strategies of the proposed business. Internet
Bowadays, Bowadays, everyone everyone has their own social social media accounts. accounts. This can be an advantage on promoting the bakery by posting images and posting details describing hot, fresh)baked bread and sweet cakes coming out of the oven. To make things even more tempting, theres theres a photo of the bread and pastries, too. The bake shop could get a mouth)watering reaction using a social media sites such as &acebook or Twitter for promotion. Setting up a store account, and post messages that make the reader want to interact. The proposed business will include lots of photos,
on deal deals s
and and
ideas deas for the prod produc uctts.
Announcement of new recipes, advertise bakery items at the holidays and offer special discounts will also be applied to pump up business during slow times. Radio
The The propo propose sed d busi busines ness s and and its its produc products ts will will be aire aired d thro through ugh radio radio advert advertis isem ement ent.. The The same same info inform rmat atio ion n will will be anno announ unced ced to the the cust custom omers ers includ including ing its accessi accessible ble locatio location. n. %adio %adio advert advertise isemen ments ts will will also also use sounds, sounds, compelling music or unusual voices to grab attention. *lyers
&lyers are just a cheap way to promote a business. ;ikewise, it is a cost effective way to get promotional results. &lyers are an indispensable business
39
tool used to make a
Sales promotion is the process of persuading a potential customer to buy the product. 0t is designed to be used as a short)term tactic to boost sales. 0t is rarely suitable as a method of building long)term customer loyalty. The proposed business business will apply a consumer consumer sales promotion promotion which discounts discounts and incentives incentives are offered to consumers as an inducement to get them to buy and try. 'pon ordering ordering a doen of customied cakes the customer will receive a free candle of their choice and can write a message on the top of the cake for any occasions. And for every doen of customied cupcake, they will receive a piece of free cupcake or sweets. &ree product samples and trials will also be used as an effective sales promotion. To offset the risk customers might perceive in buying an unfamiliar item, customers are allowed to try a product before buying.
40
Chapter -I T"C4NIC,' ,$"CT
This chapter discusses the suppliers which includes the raw materials, sources of raw materials, suppliers order flow. 0t also discusses technical process both process flow and service flow. Also, it discusses the production needs which includes facilities, e
The suppliers of the proposed business for the needed ingredients are the >!! >!! $all $all of 1ens 1ensan an whic which h is locat located ed at =. !atol !atolic ico, o, 1ene 1enera rall Santo Santos s !ity !ity,,
41
Museping &arm which is located at "arangay Tinagacan, 1eneral Santos !ity, "ambees which is located at$agsaysay Street, /iokno which is located at . Santiago Street and !.T &ish trading which is located at $ansanitas Street, 1eneral Santos !ity. Ingredients
The The main main ingre ingredi dient ents s need needed ed to bake bake bread bread*c *cake akes s to deli delive verr to the the customers that will be needed by AAs "read @ !akes 1allery in breads variety are wheat flour, water, eggs, breads yeast, sugar and salt8 and in cakes variety are cake flour, eggs, yeast, milk, water, chocolate or any flavorings you want. 0ngredients will vary for different flavor of bread and cakes.
ources of Ingredients
The suppliers of ingredients ingredients such as $alunggay)leaf, $alunggay)leaf, carrot, banana and mango, monggo, and coconut will be coming from Museping &arm of "arangay Tinaga Tinagacan can,, 1enera 1enerall Santos Santos !ity !ity. &or the ingred ingredient ients s needed needed for baking, baking, the sources of the wheat flour, sugar, eggs, yeast, milk, and salt will be the >!! $all of 1ensan, which is located at =. !atolico Sr. Ave., "arangay ;agao 1eneral Santos !ity. 0f the >!! $all of 1ensan will be out of stock of some ingredients, the proposed business will then purchase to other suppliers which are the /iokno Store, "ambees and !.T &ish Trading. Those ingredients can be found locally. upplier.s Order *lo:
42
The proposed proposed business business will will make make in
In8uiry
Order $lace!ent
Order
$ay!ent
Delivery@$ick Up
*igure ? uppliers Order *lo:
43
Technical Technical $rocess
The technical process includes the discussion of the service flow or the process on how the services will be rendered to the customers. ervice *lo:
The customer will make in
In8uiry
,cco!!odation
$ay!ent $acking *igure A ervice *lo: $roduction Needs
This This section section review reviews s the facili facilitie ties s design designed ed for the satisf satisfact action ion of the custome customers rs needs. needs. The differ different ent e
44
introduced. *acilities
The following are the facilities within the proposed business which will be used during business operations( Cashier. Cashier.s s ,rea% This area will be provided for taking the orders of the
custo custome mers rs and for for the the relea releasi sing ng of money money for for taki taking ng the the payme payment nts s of the the customers. Dining ,rea% This area will be provided for the customers convenience to
enjoy their ordered baked)products. Displ Display ay ,rea% rea% This area will be used to display the products such as
breads and cakes items where the customers can choose their orders. Infor!ation Infor!ation ,rea% This area will be provided for the customers in
with regards to the availability of products offered by the proposed business. Baking ,rea% This will be the place where the baker and assistant baker
will do their specific duty and an area for producing different baked)products. $arking ,rea% This area will be provided to the customers to park their car
and vehicle when they are in
day)to)day operations of the business8 by this means the manager will have privacy. Co!fort Roo!% This will serve as the area where the customers could
use as a powder room, toilet room, etc.
45
Utility@tock Utility@tock Roo!% A room where the raw materials and other needed
materials materials in baking will be kept or stock. This is also the area where utilities utilities like brooms, dust pan, and mops are to be kept. "8uip!ent
The e
Table Table < "8uip!ent $articular
7uantity
/isplay !ase
2
$ixer
2
!hiller
6
5and $ixer
7
Gater /ispenser
6
9ven
2
%efrigerator
6
!offee $aker
6
"lender
6
46
Air)!onditioner
6
!eiling &an
6
!omputer Set
6
rinter
6
1enerator
6
Baking upplies@Utensils
The baking supplies*utensil supplies*utensils s needed in the proposed business are shown below. Table = Baking upplies@Utensils $articular
7uantity
0cing "ag
6
Strainer
7
Stock ot Set
6
%olling in
7
!hopping "oard
2
$ixing "owl
7
!upcake $old
23
Tray
62
"aking an
63
!ake an
:
Ghisk
2
Tong
:
*urniture and *i#tures
47
The proposed business will be using the following furniture and fixtures for the business operation. Table > *urniture and *i#tures $articular
Tables !hairs !abinet astry "oard 9ffice !hair 9ffice Table
7uantity
66 26 7 2 7 7
Utilities
The utilities needed for the operation of the proposed business are the following( provides dri drinki nking ng wat water er and and clea cleani ning ng,, and and for for wash washin ing g 3ater ter 0 pro e
regardi regarding ng in busine business ss servic services es and transac transactio tions. ns. !ommun !ommunicat ication ion from ;ong ;ong /istance Telecommunication +;/T will make the business stay connected to
48
thei theirr custo custome mers rs and and othe otherr comp compan anies ies and and inte intern rnet et conne connect ctio ion n from from ;/T ;/T $y/S;will establish connection both in the business and customers. 'abor upply
The proposed business will select the best person that will fit to the position to perform the responsibilities effectively and efficiently who are coming from from the resident residents s of 1eneral 1eneral Santos Santos !ity !ity. There There is no diffic difficulty ulty in hiring hiring the needed employees employees because they can be seen in 1eneral Santos Santos !ity where the proposed business will be raised. 3aste Disposal
The proposed business will provide trashcans separating bio and non)bio) degradable. Gastes will be collected by the city management unit three +F times a month or every Saturdays and will be segregated as to bio)degradable and non)biodegradable. roper waste disposal must be observed to ensure proper sanitation and promote clean and healthy atmosphere.
Building 'ayout
Shown below is the building layout of the proposed business. "uilding layouts are composed of the floor plan perspective of the administrative building.
49
AAs AAs "read and !akes 1allery Chapter -II ),N,(")"NT ,ND OR(,NI, OR( ,NI,TION TION $',N
50
This chapter discusses the form of business organiation, organiational structure, structure, personal personal
The proposed business is in the form of partnership composed of two +2 partners that will contribute money and property to sustain the operation of the busi busine ness ss.. art artne ners rshi hip p is a cont contra ract ct wher whereb eby y two two or more more pers person ons s bind bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves +"allada, 2367. The proposed business will establish in a form of partnership because of its advantages( The partnership is easy to establish. Gith more than one owner, the ability to raise the funds and the borrowing capacity may even become greater. Second, the the part partner ners s provi provide de mora morall supp support ort and allo allow w more more crea creati tive ve brain brainst storm ormin ing g because there is a wider pool of knowledge and skills +Aaron /. 5all. The partners will share the profit and loss e
Organi1ational tructure
51
The The orga organi niat atio ional nal struc structu ture re deter determi mine nes s how the the role roles, s, power powers s and and responsibili responsibilities ties are assigned, assigned, controlled, controlled, and organied. organied. A line organiation organiational al structure will be used by the proposed business. All the decision)makings will be centralied to the partners and the manager will be for the implementations. The authority starts from the partners and passed to the manager manager and to the lower level of organiation organiation.. 0n case there is a need for more manpower, the management will hire additional personnel. The figure below shows the organiational chart of the proposed business in line organiation.
$anager
"aker
Accounting !lerk
!ashier
'tility * $aintenance
Sales !lerk
Assistant "aker *igure Organi1ational tructure
$ersonnel 7ualifications
5uman resource is one of the most important asset of the proposed business. "efore the business operation start, it is very important to consider the selection of its human resources. 5iring the best employees plays a great role to the the succ succes ess s of the the busi busine ness ss88 thus thus,, thei theirr spec specif ific ic func functi tion ons, s, duti duties es and and
52
responsibilities should be properly stated and clarified. "elow are the manpower re
1raduate of any F) year business course.
At least 2: years old.
$ale or female.
Single or $arried.
5as at least two years of experience in business and related field.
%isk taker, expert in both oral and written communication.
5as a time management. Baker • • • • • •
1raduate of any course related to "aking. At least 26 years old. $ale or female. Gith experience. 5igh standard of cleanliness and hygiene. 5ave an ability to do multi)tasking.
,ssistant Baker •
•
5igh school graduate or college level.
At least 26 years old.
53
•
$ale or female.
•
Gith*without experience but at least willing to be trained.
,ccounting Clerk •
•
!ollege graduate of "usiness Administration.
At least 2F years old.
•
$ale or female.
•
Gith experience.
•
%esponsible and loyal to his*her assigned task.
Cashier • •
•
&emale, at least 6I years old. 5as the ability to communicate effectively with customers, co)workers and manager. referably with one +6 year experience in cashiering jobs. 5as a good communication skill. !an work in long hours.
ales Clerk
• •
5igh school graduate or college level. &emale, at least 26 years old. 5as a good communication skill.
54
Utility • • • • • •
5igh school graduate or college level. $ale, at least 26 years old. Able to maintain the cleanliness as well as as the orderliness. 5onest and trustworthy. 5as an ability to do multi)tasking. !an work in long hours.
$ersonnel Duties and Responsibilities
ersonnel management is a part of management concerned with people at work and their relations within the firm. /uties and responsibilities of every empl employ oyee ee are are provi provide ded d by the the firm firm for for prope properr dele delegat gatio ion n of comm comman and d and and authority and to avoid overlapping of jobs. The following are the duties and responsibilities of the every employee to be hired in AAs AAs "read @ !akes 1allery. )anager •
%esponsible in setting the objectives and goals of the business. 0t involves the the plann plannin ing, g, cont contro rollllin ing, g, moti motiva vati ting ng,, dire direct ctin ing g and and sust sustai aini ning ng the the operations of the business as well as evaluating the performance of every employees.
•
$anage the clients and entertain the customers in
•
!ommunicates with the target customers with regards to the concerns in the proposed business.
•
•
%esponsible in hiring and firing of employees. Assists the cashier if needed.
55
Baker •
repares and makes all bakery items for a large number of guests.
•
Tests Tests baked items by b y tasting or smelling them.
•
#nsures product freshness and safety.
•
$aintains sanitation, health, and safety standards in work areas.
•
9perates large)volume baking e
,ssistant Baker •
Assists the baker in baking and preparing orders.
•
%eceives verbal instructions as to baked)product re
•
roduces and applies decorations on bakery products under supervision.
•
•
Assists and help in inventory)taking. %esponsible for packaging bakery products.
,ccounting Clerk •
Lerif Lerifies ies the accuracy accuracy of invoic invoices es and other other account accounting ing docume documents nts or records.
•
'pdates and maintains accounting journals, ledgers and other records detailing detailing financial financial business business transactions transactions +e.g. disbursement disbursements, s, expense expense vouchers vouchers,, receipt receipts, s, and account accounts s payabl payable. e. #nter #nter data data into into comput computer er system using defined computer programs.
56
•
!ompiles data and prepare a variety of reports.
•
%econciles records with internal company employees and management, or external vendors or customers.
•
%ecommends actions to resolve discrepancies.
•
0nvestigate
Cashier •
1reets customers and take customers orders.
•
Takes Takes money in the form of cash, credit c redit card or check. chec k.
•
0ssues receipts, refunds and credits. %esponsible and liable in any inexact amount during her duty. !ounts money in cash drawer at the beginning of shift to ensure that amounts are correct.
ales Clerk •
Grap or bag the ordered products for customers.
•
Stamp, mark or tag prices on products.
•
Assist the customers in completing the purchases.
•
Answers customers
•
5elps in maintaining store room neat and tidy.
Utility
Gorks consistently to maintain high standards of cleanliness.
57
$akes sure that facilities facilities such as bathrooms bathrooms and sinks are clean and are working properly. Takes out the garbage which includes sorting it into biodegradable and non)biodegradable. $ersonnel alary tructure
Salary is the compensation received by employees as payment for the services they rendered in the business. #mployees will work eight +I hours a day and six +? days a week. An average of 2? working days a month will be spent by each employee. The table below shows the salary and wages of the employee of the business. Salaries may vary according to each position an employee holds in the establishment. $re2Operating ,ctivities
re)operating activities are activities that will take place before the actual operation of the proposed business. •
Conducting of *easibility tudy
This activity will be done to determine the profitability and viability of the proposed business including the five +: aspects of the business such as the marketing, technical, organiational, financial and socio)economic aspect. This activity will be done within two +2 months to complete. *or!ation of $artnership
0n this his act activit ivity y, the part partne ners rshi hip p will ill be forma ormallly orga organi nie ed. d. The organ organi iat atio ional nal set)up set)up will will be consi conside dered red.. The The sourc source e of fina financ ncin ing g will will be discussed and the proposed business will be studied based on the capability.
58
This study would take about one +6 month to complete the setting)up of the organiation. •
$rocessing of Business $er!its and 'icenses
This activity, the partners will make sure to operate the business legally and by accordance with the government laws by securing permits and licenses. 0t would take one +6 month before the business would have permits and licenses. •
Building Renovation
This activity will be the preparation of the target location and the building renovation of the proposed project will be raised settled on the site selected based on the design and lay)out. This would take two +7 months to complete. ,c8uisition of "8uip!ent
This activity will be the purchasing of the e
4iring and Training of "!ployees
0n this activity, the partners will undertake hiring procedures to fill in the needed position in the proposed business with the most
$ro!otional ,ctivities
59
re 9perating activities will also include the promotional activities to properly introduce the business to the market. This activity would take one +6 month to complete before the actual operation. •
tart of ,ctual Business operation%
After the above mentioned activities, the the proposed business will be starting in the actual operation.
60
61
$roject Ti!e2table E(antt chartF Table A $roject Ti!e2Table Ti!e2Table
$re2 Operating ,ctivities
6 !onducting a &easib &easibili ility ty Study &ormation of artnership rocessing of "usi "usine ness ss erm ermit its s and ;icenses "uilding %enovation 5iring and 9rientation of #mployment Ac
)onthly Duration
2
7
F
:
?
4
I
62
C4,$T"R -III *IN,NCI,' ,$"CT
This chapter discusses the financial financial plan of the proposed proposed business business which will include the investment cost, the financial forecasts and assumptions, the projected financial statements, financial analysis, and supporting schedules. Invest!ent Cost
This section presents the value needed upon starting the operation of the proposed business. Table ? presented below shows the total cost needed for investment costing( Table > Invest!ent Cost $articulars
;easehold 0mprovement
*inancial
#
The on
the
used
next
by
the
preparing
the
&urniture and &ixture
Cost 733,333.3 3 737,7IJ.3 3 ??,:33.3 3
!ash "eginning "eginn ing Total Invest!ent Cost
H
773,666.33 773,666.33 +GHHHGHHH%H
,ssu!ptions
assumptions page
will
be
researchers in financial
statement of the business for five +: consecutive continuous operations. 6. The The form form of the the busi busine ness ss will will be part partne ners rshi hip p wher wherei ein n ther there e are are two two partners who will contribute to finance the proposed business. artners will share the profit e
63
7. 0ncrease 0ncrease in revenue will be ten ten percent percent +63P. F. urchases urchases of supplies supplies will will be F3P of of the sales. :. #nding 0nventory 0nventory will will be 63P 63P of total supplies supplies to be be used. ?. SSS*50!*5 SSS*50!*5/$& /$& will will remain remain constant constant for the the consecutive consecutive years. years. 4. The The expe expense nses s will will increas increase e to three three perce percent nt +7P per year year excep exceptt for for salaries and wages and depreciation. I. Githdrawal Githdrawal is is allowed allowed every year by 63P of the net net income. income. J. 0n determining determining the the depreciation depreciation expense, expense, straight straight line line method method will be be used. 63.The tax rate will be at thirty percent +73P. $rojected *inancial tate!ent
The financial statements are the means by which information accumulated and the processe processed d in financi financial al account accounting ing periodi periodical cally ly commun communica icated ted to the users. 0t is to provide information about the financial position which includes income statement, balance sheet and the statement of cash flow +Stanley, + Stanley, 236F. Inco!e tate!ent
The income statement measures a company-s financial performance over a specific accounting period. &inancial performance is assessed by giving a summary of how the business. 0t also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal
"alance sheet is the statement which shows the financial position of the business establishments as of a given date. This is a financial
64
stat statem emen entt
that hat
summ summar ari ies es
a
compa ompany ny-s -s
asse assetts,
liabi iabillitie ities s
and and
shareholders- e
Statement of cash flows provide aggregate data regarding cash inflows a business receive from both its investment sources and ongoing operations as well as all cash flows that pay for business activities during given
The The stat statem ement ent of part partne ners rs-- capi capita tall show shows s the the chan change ges s in each each partner-s capital account for the year or period being reported on. The statem statement ent starts starts with with the beginn beginning ing capita capitall balance balance,, follow followed ed by the amou amount nts s of inve invest stme ment nts s made made,, shar share e of net net inco income me or loss loss,, and and withdrawals made during the reporting period to determine the capital balance at the end of the period +9jo, 2367.
65
66
67
68
*i nancial,nalysis
69
&inancial analysis shows the performance of the business to generate revenue, ability to pay its obligations as it falls due and how it maximies the enhancement of value if its obligation. Ratio ,nalysis
%atio %atio analys analysis is enable enables s the busine business ss owner* owner*own owners ers and manage managers rs to detect trends in the business and to compare its performance and condition with the average performance of similar or related business in the same industry. $rofitability Ratio
rof rofit itab abililit ity y ratio ratio give gives s an idea idea if how how prof profit itab abililit ity y the the firm firm is operating and utiliing its assets. 0t reflects the net result of all of the financing policies and operating decisions. Return on ales
A corporation-s return on sales is useful in comparing profitability from from year year to year ear and and eval evalua uati ting ng its its prof profit itab abililit ity y perf perfor orma manc nce, e, by comparing comparing the net income and the revenue. revenue. %eturn on sales is calculated calculated by dividing net income by revenue. resented below is table J which shows the projected returns on sales for five +: consecutive years( Table Return on ales 5ear 5ear Net Inco!e Inco!e 9H, 7J7,J4:.6? FF4,676.27 9HB :43,2I:.I4 9HC 462,7J2.?: 9HD I?J,:F4.6J 9H" Return on ,ssets
Net ales ales 2,IFF,333.33 7,62I,F33.33 7,FF6,2F3.33 7,4I:,7?F.33 F,6?7,J33.F3
Ratio 67.I:P 6F.2JP 6?.:4P 6I.I2P 23.IIP
70
The The retu return rn on asse assets ts +%9A +%9A is one one of the the most most wide widely ly used used profitability ratios because it is related to both profit margin and asset turnover, and shows the rate of return for both creditors and investors of the company. %9A shows how well a company controls its costs and utilies its resources. %9A is calculated by dividing net profit by average total assets or total assets. rese resent nted ed in tabl table e 63 belo below w show shows s the the proje project cted ed return returns s on asse assets tsof of the prop propos osed ed busi busine ness ss for five ive +: +: conse onsecu cuttive ive years ears(( Table +H Return on Total Total ,sset 5ear 5ear
Net Inco!e Inco!e
9H,
7J7,J4:.6?
9HB
FF4,676.27
9HC
:43,2I:.I4
9HD
462,7J2.?:
9H"
I?J,:F4.6J
Total Total ,ssets ,ssets 6,7II,J4F .I6 6,444,J2: .F: 2,24J,J74 .3: 2,J3:,4I: .3: 7,??4,JFJ .23
RO,
2I.7?P 2:.6:P 2:.36P 2F.:2P 27.46P
Return on "8uity .
%eturn of e
71
Return on "8uity 5ear 5ear
Net Inco!e Inco!e
$artners $artners "8uity "8uity
RO"
9H,
7J7,J4:.6?
6,774,?J2.JJ
2J.F:P
9HB
FF4,676.27
6,423,JFI.77
2:.JIP
9HC
:43,2I:.I4
2,23J,4?F.4J
2:.I3P
9HD
462,7J2.?:
2,I23,7I4.3?
2:.2:P
9H"
I?J,:F4.6J
7,:?:,467.27
2F.7IP
'i8uidity Ratio ,nalysis
;i
This This ratio ratio is calc calcul ulat ated ed by divi dividi ding ng curre current nt asset assets s by curre current nt liabilitie liabilities. s. 0t indicates indicates the extent extent to which current liabilities liabilities are covered by those assets expected to be converted to cash in the near future. resented on the next page table 62 showing the current ratios of the proposed business for five +: consecutive years( Table +9 Current Ratio 5ear 5ear Current Current ,ssets ,ssets I2?,3I7.?6 9H, 6,722,372.3: 9HB 6,J76,3F6.F: 9HC 2,??7,II4.2: 9HD 7,:77,3FJ.23 9H" olvency Ratio
Current Current 'iabilities 'iabilities :6,2I6.I2 :?,J44.62 43,642.2? I:,7J4.JI 632,27:.J4
Ratio 6?.66 27.23 24.:2 76.6J 7F.:?
72
This ratio is used to determine whether a business firm can stay solvent. /iscussed below are the solvency ratios of the proposed business. Debt Ratio
This This rati ratio o is a fina financ ncia iall rati ratio o that that meas measur ures es the the exte extent nt of a companys or consumers leverage. The debt ratio is defined as the ratio of tota totall debt debt to tota totall asset assets, s, expr express essed ed in perce percent ntag age, e, and and can can be interpreted as the proportion of a companys assets that are financed by the debt ."elow is Table 67 which shows the debt ratios of the proposed business( Table +; Debt Ratio 5ear 5ear
Total Total Debt Debt
Total Total ,sset ,sset
Ratio
9H,
:6,2I6.I2
6,7II,J4F.I6
3.37?J
9HB
:?,J44.62
6,444,J2:.F:
3.3723
9HC
43,642.2?
2,24J,J74.3:
3.373I
9HD
I:,7J4.JI
2,J3:,4I:.3:
3.32JF
9H"
632,27:.J4
7,??4,JFJ.23
3.324J
"8uity Ratio
The e
73
resented below is Table 6F which shows the e
Total Total "8uity
Total Total ,sset ,sset
Ratio
9H,
6,774,?J2.JJ
6,7II,J4F.I6
3.J?76
9HB
6,423,JFI.77
6,444,J2:.F:
3.J?I3
9HC
2,23J,4?F.4J
2,24J,J74.3:
3.J?J2
9HD
2,I23,7I4.3?
2,J3:,4I:.3:
3.J43?
9H"
7,:?:,467.27
7,??4,JFJ.23
3.J426
Debt to "8uity ratio
This is a measure of a company-s financial leverage calculated by dividing its total liabilities by stockholders- e
Total Total "8uity "8uity
Total Total ,sset ,sset
Ratio
9H,
6,774,?J2.JJ
6,7II,J4F.I6
3.J?76
9HB
6,423,JFI.77
6,444,J2:.F:
3.J?I3
74
9HC
2,23J,4?F.4J
2,24J,J74.3:
3.J?J2
9HD
2,I23,7I4.3?
2,J3:,4I:.3:
3.J43?
9H"
7,:?:,467.27
7,??4,JFJ.23
3.J426
"8uity )ultiplier
This is a ratio of a companys total assets to its stockholders e "8uity )ultiplier 5ear 5ear
Total Total ,sset ,sset
$artners $artners "8uity Ratio
9H,
6,7II,J4F.I6
6,774,?J2.JJ
6.37I7
9HB
6,444,J2:.F:
6,423,JFI.77
6.3776
9HC
2,24J,J74.3:
2,23J,4?F.4J
6.376I
9HD
2,J3:,4I:.3:
2,I23,7I4.3?
6.3737
75
9H"
7,??4,JFJ.23
7,:?:,467.27
6.32I4
Net $resent -alue 0t is the present value of net cash inflows generated by a
project less the initial investment on the proposed business. The table on the page 4I shows the Bet resent Lalue of the proposed business Table +? Net $resent -alue
5ear 5ear 6 2 7 F : Total 0nvestment !ost Net Net $res $resen entt -alue lue
*ree Cash *lo: ??J,I6J.F: 4F:,4:?.43 J26,?J6.J6 6,62F,436.:J 6,7FJ,23I.34
$- of + J +9K Cash *lo: 3.IJ :JI,3:7.3I 3.I3 :JF,:62.?4 3.46 ?:?,3F2.3J 3.?F 46F,4?I.6J 3.:4 4?:,:4?.IJ ;G;9AG=9%; 6,333,333.33 9G;9 9G;9AG AG= =9% 9%; ;
$ayback $eriod
ayback period is defined as the number of years re
,nnual *ree Cash Cash *lo:s *lo:s
??J,I6J.F: 4F:,4:?.43
Invest!ent Invest!ent 6,333,333.33 773,6I3.:: +%<<9?<=>?+
76
upporting chedules of *inancial tate!ents
This section present the supporting schedules of the projected financial statements of the proposed business. Schedules presented on the following pages are the supporting schedules. chedule + ales u!!ary EBreadsF Unit
old old per per Daily
)onthly
$roduct !heese "read
$rice I.33
Day :3
ales F33.33
ales ales 62,33.33 6FF,333.33
!arrot "read
62.33
:3
?33.33
6I,333.33
26?,333.33
!oco #mpanada
:.33
:3
2:3.33
4,:33.33
J3,333.33
#nsaymada
63.33
:3
:33.33
6:,333.33
6I3,333.33
$alunggay
:.33
:3
2:3.33
4,:33.33
J3,333.33
"read $onay
:.33
:3
2:3.33
4,:33.33
J3,333.33
an /e !oco
:.33
:3
2:3.33
4,:33.33
J3,333.33
an /e $onggo
:.33
:3
2:3.33
4,:33.33
J3,333.33
an /e Sal
7.33
:3
6:3.33
F,:33.33
:F,333.33
%aisin "read
I.33
:3
F33.33
62,333.33
6FF,333.33
Spanish Lread
I.33
:3
F33.33
62,333.33
6FF,333.33
Tuna andesal
:.33
:3
2:3.33
4,:33.33
J3,333.33
"read %olls
2:.33
:3
6,2:3.33
74,:33.33
F:3,333.33
Gheat "read
?3.33
:3
6,I33.33
:F,333.33
?FI,333.33
%aisin Gheat
73.33
:3
J33.33
24,333.33
72F,333.33
9;?GHHH%HH
9GA<
"uns Total
chedule 9
,nnual
77
ales u!!ary ECakesF Unit
old per Daily
)onthly
$roduct "anana !ake !hiffon !ake
$rice 2J3.33 233.33
Day 63 63
ales 2,J33.33 2,333.33
ales ,nnual ales I4,33.33 6FF,333.33 ?3,333.33 26?,333.33
!hoco %oll !hocolate !ake &ruit !ake 'be !ake !upcake Total
2JJ.33 F:3.33 2F:.33 2J3.33 2J.33
63 63 63 63 63
2,JJ3.33 F,:33.33 2,F:3.33 2,J33.33 2J3.33
IJ,433.33 67:,333.33 47,:33.33 I4,333.33 I,433.33
J3,333.33 6I3,333.33 J3,333.33 J3,333.33 63F,F33.33 >G<+
chedule ; ales u!!ary EBeveragesF $roduct
Unit
old old per per Daily
)onthly
!offee
$rice 6:.33
Day 23
ales 74:.33
ales ales 66,2:3.33 67:,333.33
=uice
23.33
F3
J33.33
24,333.33
72F,333.33
+G9?=%HH
;AG9=H%HH
<=GHHH%HH
Total
,nnual
chedule < Cost of ales
"eg.
)
667,4?3.33
67?,:62.33
6:6,733.I3
6?:,:FF.?F
0nventory urchase
6,674,?33.3
6,2:F,7?3.3
6,74?,FJ?.3
6,:6F,6F:.?
6,??:,:?3.6
s 1A&S
3 6,674,?33.3
3 6,7?:,623.3
3 6,:67,33I.3
3 6,??:,FF?.F
? 6,I72,63F.I
#nd.
3 +667,4?3.33
3 +67?,:62.33
3 +6:6,733.33
3 +6??,:FF.?F
3 +6I7,263.FI
0nventory Cost of +GH9;GA
+G99AG>HA%H
+G;>
+G<AGH+%?
+G>
>
9
ales
$osition
H
H chedule =
H
alaries and 3ages No% of Basi Basic c )ont )onthl hly y Total $ay $ersonnel alary
,nnual alary
78
$anager
6
Accounting !lerk
6
"aker
6
Assistant "aker
6
Sales !lerk
6
!ashier
6
'tility 5elper
6
6F,6 ?4.:3 62,3 33.33 I,6 33.33 4,6 :3.33 4,6 :3.33 4,6 :3.33 4,6 :3.33 >9GA >?%=H
Total
4
$articulars
chedule > ss@$hic@4d!f )onthly $ay
6F,6?4.: 3 62,333.3 3 I,633. 33 4,6:3. 33 4,6:3. 33 4,6:3. 33 4,6:3. 33 >9GA>?%= H
643,363. 33 6FF,333. 33 J4,233 .33 I:,I33 .33 I:,I33 .33 I:,I33 .33 I:,I33 .33 ?=
,nnual $ay
SSS
?,243.23
?I,J42.23
50!
6,F33.33
6:,F33.33
5/$&
6,F33.33
6:,F33.33
Total
GH?H%9H
G??9%9H
chedule ? ,dvertising "#pense $articulars
,nnual Cost
%adio
I,333.33
&lyers and ;eaflets
7,:33.33
Bewspaper
7,:33.33
Total
+=GHHH%HH chedule A Utilities "#pense $articulars
Cost@)onth
,nnual Cost
79
#lectricity
:,233.33
?2,F33.33
Gater
6,333.33
62,333.33
Total
?
$articulars
7uantity
Unit Cost
Total Cost
0cing "ag
6
63J.4:
63J.4:
Strainer
6
66J.33
66J.33
Stock ot Set
6
6,3:3.33
6,3:3.33
ot 5older
7
7J.33
664.33
!hopping "oard
2
6::.33
763.33
$ixing "owl
7
64J.4:
:7J.2:
!upcake $old
2
:J.4:
66J.:3
Tray
7
?F.:3
6J7.:3
"aking an
F
?:.4:
2?7.33
Tart $old
2
7F.:3
?J.33
!ake an
7
6:3.4:
F:2.2:
Ghisk
2
7F.:3
?J.33
Tong
:
73.:3
6:2.:3
$uffin an
2
F33.33
I33.33
Total baking supplies e#pense 9G<9%?= chedule +H
;%?=
$er!its and 'icenses
$articulars
,nnual Cost
80
"usiness ;ocation !learance
4:.33
Sanitary 5ealth !learance
?3.33
&ire Safety !learance
F:J.?3
!enro
:33.33
"usiness Tax
4,:33.33
Sec %egistration
:33.33
"rgy. !learance
I33.33
!oomunity Tax
63,:33.33
ermit &ee
6,:33.33
1arbage !ollection &ee
:33.33
Total
99G;<%>H chedule ++ Rent "#pense
$articulars
%ent
)onthly Cost
4,333.33
Total
,nnual Cost
IF,333.33 A
chedule +9 (eneral upport ervice
$articulars
)onthly $ay
,nnual $ay
81
"ookkeeper
6,:33.33
6I,333.33
Total
+AGHHH%HH chedule +; 'easehold I!prove!ent $articulars
Cost
;easehold 0mprovement
733,333.33
Total
;HHGHHH%HH chedule +< "8uip!ent
$articulars /isplay !ase $iixer !hiller Gater /ispenser 9ven "read Slicer and >nife %oller 5and $ixer %efrigerator !offee $aker "lender 1enerator &ire #xtinguisher Telephone Total
7uantity 2 2 6 6 2 6 7 7 6 6 6 6 6 6
$rice 4,333.33 66,333.33 I3,333.33 2,333.33 ::,333.33 6J:.4: :3.4: 4?3.33 23,333.33 6,2?6.33 2,333.33 F:,333.33 2,:33.33 2,333.33 99AG?>?%=H
Total Cost 6F,333.33 22 2 2,333.33 I3,333.33 2,333.33 663,333.33 6J:.4: 6:2.2: 2,2I3.33 23,333.33 6,2?6.33 2,333.33 F:,333.33 2,:33.33 2,333.33 ;H;G;A%HH
chedule += 'easehold I!prove!ent2 Depreciation $articulars 'easehold I!prove!ent
Cost
"sti!ated useful life
;HHGHHH%HH
+H
Depreciation ;HGHHH%HH
82
chedule +> *urniture and *i#tures 7uantity 2 2 : 23 6 6 6 6
$articulars 9ffice Table 9ffice !hair /ining Table /ining !hair Air !onditioner #lectric &an !abinet !omputer Set Total
"8uip!ent /isplay /isplay !ase $ixer !hiller Gater /ispenser 9ven "rea "read d Slic Slicer er and and >nife %oller 5and $ixer %efrigerator !offee $aker "lender 1enerator &ire #xtinguisher Telephone Total
$rice 6,:33.33 733.33 :33.33 2I3.33 7:,333.33 6,733.33 7,:33.33 6:,333.33
chedule +? "8uip!ent2 Depreciation "sti!ate useful 7uantity Cost life 2 6F,333.33 : 2 22,333.33 : 6 I3,333.33 : 6 2,333.33 : 2 663,333.33 :
6 7 7 6 6 6 6 6 6
6J:.4: 6:2.2: 2,2I3.33 23,333.33 6,2?6.33 2,333.33 F:,333.33 2,:33.33 2,333.33 ;H;G;A%HH
: : : : : : : : :
Total Cost 7,333.33 ?33.33 2,:33.33 :,?33.33 7:,333.33 6,733.33 7,:33.33 6:,333.33 >>G=HH%HH
Depreciation 2,I33.33 F,F33.33 6?,333.33 F33.33 22,333.33
7J.6: 73.F: F:?.33 F,333.33 2:2.23 F33.33 J,333.33 :33.33 F33.33 >HG>??%AH
chedule +A *urniture and *i#tures Depreciation *urniture and *i#tures 9ffice Table 9ffice !hair
7uantity 2 2
Cost 7,333.33 ?33.33
"sti!ate useful life : :
Depreciation ?33.33 623.33
83
/ining Table /ining !hair Air!onditioner #lectric &an !abinet !omputer Set Total
: 23 6 6 6 6
2,:33.33 :,?33.33 7:,333.33 6,733.33 7,:33.33 6:,333.33 >>G=HH
: F F F F F
:33.33 6,F33.33 I,4:3.33 72:.33 I4:.33 7,4:3.33 +>G;9H%HH
chedule + Total Total Depreciation Deprecia tion $articulars
Depreciation
#
?3,?44.I3
&urniture and &ixtures
6?,723.33
;easehold 0mprovement
73,333.33
Total
+H>G?%AH
84
Chapter IL OCIO2"CONO)IC ,$"CT
This This chapte chapterr discuss discusses es the benefits benefits of the proposed proposed busine business ss to the society and economy. 0t assessed how community will benefited and examines how a prop propose osed d busin business ess will will chan change ge the the curren currentt and and futu future re event events s of the the community. "ffects to the ociety
The following are the benefits of the proposed business to the society. rovide #mployment. The proposed bakery business will provide opportunities to the locality which reduces the unemployment rate of the economy. The business will hire seven +4 employees. Business Opportunities% The proposed business would tend to enter into
the market economy supported by appropriate law and regulations which will offer great opportunities to local and foreign investors. The benefit of the investor in our proposed business will become well)known in the locality. proposed business business will provide provide Cater Cater the Need Needs s of Custo Custo!er !er%% The proposed healthy products like $alunggay "read, !arrot "read, an de $ongo, etc. inside the store that would meet the customers needs and wants. Also, the products of the venture can help the customer maintain their healthy life style. Benefits to the "cono!y
The following are the benefits of the proposed business to the economy.
85
Contribute to the 'ocal (overn!ent% The proposed business will benefit
the economy by giving giving a tax income for local government. government. These taxes will help to the economy to improve the nature, highways, and rail roads. And thats because of the taxes that the proposed business will pay. (ro:th of Related Industry% The proposed business can contribute to
the growth and event in the locality of 1eneral Santos !ity. Since the business innovates strategy in selling breads and cakes, it would encourage other industry to innovate other products too. 0n establishing the business, it will also promote and attract other investor to engage in this kind of business.
86
Chapter L U)),R5 O* *INDIN( ,ND CONC'UION
This chapter discusses the summary of findings and conclusion of the proposed business based on industry analysis, business description and the five major major aspects aspects namely namely,, market marketing ing,, techni technical cal,, manage managemen mentt and organi organiat ation, ion, financial and socio)economic aspect *indings
The following are the findings of the study in different aspects in the study. Industry ,nalysis% The researchers found out that there are one hundred
three +637 players in the industry and the researchers chose six +? major players and that major players has been in the business for a long years ago. The conditions for having this kind of business have probably been better than today as more of the people are searching for the healthier versions of the same baked goods. "read d and and !ake !akes s 1all 1allery ery will will off offer a Business Business Description% Description% AAs "rea products that will attain customer satisfaction. The proposed venture will possibly gain profit with this kind of venture because the proposed business will be offering those that the customers are looking for. The proposed business will operate I(33 am to 4(33 pm and it will be established in the form of partnership. )arketing ,spect ) The researchers found out that the market share of
the the propo propose sed d busi busine ness ss is 63P 63P for for the the start startin ing g of opera operati tion. on. The The propo propose sed d busin business ess prom promot otio ional nal stra strate tegi gies es are are the the flye flyers, rs, use of soci social al medi media, a, and and broa broadc dcas asti ting ng radi radio o to give give awar awaren enes ess s in the the prop propos osed ed busi busine ness ss offe offers rs..
87
Technical Technical AspectO The proposed business will be needed facilities such as managers office, information area, stock room, baking area, rest rooms and etc. Also, the proposed business found out that having a good facilities and a good ambiance of the place will make customers comfortable and so, can gain such trust and loyalty from the customers. )anage!ent and Organi1ation ,spect O The researchers found out that
asuccessfulbusiness depends on the
proposed business will operate, it will give employment to the locality in 1eneral Santos !ity, decreasing the unemployment rate and this will also give additional fund for the government through taxes paid by the business. Conclusion
88
"ased "ased on the the findi finding ngs, s, the the resea research rchers ers come come up with with the the foll follow owin ing g conclusions. )arketing ,spect% ,spect% The 63P market share of the proposed business is
because it is a new entrant in the industry, the researchers concluded that through through promotional promotional strategies strategies it would create awareness in the community and would be resulting to an additional number of customers. The also concluded that the demand for the proposed bakery which is offering a healthy baked products is increasing because of customers different perceptions and lifestyles, some may believ believe e in the the impo import rtan ance ce of a glut gluten en)f )free ree diet diet,, whil while e othe others rs might might be interested only in high)fiber breads and rolls. produc ucti tion on of the the busi busine ness ss need needs s such such as Technical Technical ,spect% ,spect% The prod facilities, e
having a good clear defined duties and responsibilities will create clarity among the the empl employ oyee ees s so misc miscom ommu muni nica cati tion on will will be avoi avoided ded.. Sinc Since e the the prop propose osed d business is a new entrant, there will only be seven +4 employees with good
89
*inancial ,spect . The researchers concluded that the proposed business
should provide specified and re
benefits to the society by providing employment and it will also give benefits to the economy by helping 1overnment through paying tax.
90
Chapter LI R"CO))"ND,TION
This chapter discusses the recommendations of the researchers based on the study conducted in relevance to industry analysis, business descriptions and the five +: aspects. promotional )arketing ,spect 0 #very business has to think of a uni
focu focus s on hiri hiring ng a
and e
aspect because because dealing in any kind of business needs a high and exact amount of capital to ensure and to be able to sustain the business needs in operating the business. Also, partners must assure that capital must be used effectively and efficiently to ac
91
ocio2econo!ic ,spect 0 This aspect needs to be given an attention
because many individuals individuals could benefit to it and it could also help in the growth of the economy and the government.
92
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,nurag )ore )u!baiG E&une 9=G 9H+9F% "akery 0ndustry to 1row at 67)6:
ercent, %etrieve from http(**www,fnbnews.com*Top)Bews*"akery)industry)to)grow &enny Orillos and ,!y UyG E9H+9F% anaderia, hilippine "read, "iscuits and
"akery Traditions, %etrieve from http(**www.anvilpublishing.com*shop*panaderia 6o:alc1yk , E9H+=F urpose of %esearch %esear ch from #xploratory, /escriptive and
#xplanatory, %etrieve from +http(**study.com*academy*lesson*purposes)of)research)exploratory descriptive)explanatory.html descriptive)explanatory.html "aker y Sector, %etrieve 'arive , E9H+;F% "usiness 9pportunities Study in Thai "akery from +http(**thailand.nlembassy.org*binaries*content*assets*postenweb*t*thailan d*embassy)of)the)kingdom)of)the)netherlands)in)bangkok*import*bakery)final) report )annyG E)arch 9;G 9HHAF The &ilipino #ntrepreneur, %etrieve from
http(**www.filentrep.com*success)stories*johnlu)koa)french)bakers) success)story.html )intel , E9HH?F "akery 0ndustry Trends( !onsumers /emand 5ealthier "aked
1oods, %etrieve from
93
http(**www.soyconnection.com*newsletters*soy)connection*food) manufacturing*articles*"aking)0ndustry)Trends)!onsumers)/emand)5ealthier) "aked)1oods )uvsi Research DeskG E)ay 99G 9H+>F% "akery "usiness( rofitable Small Scale
$anufacturing, %etrieve from http(**muvsi.in*bakery)business)profitable)small)scale)manufacturing* $aunicG E9H+9F rojected 0ncome Statement, %etrieve from
https(**www.bdc.ca*en*articles)tools*money) finance*managefinances*pages*making)projection)coming)year.aspx Research and )arketsG E*ebruaryG 9H+9F% %esearch and $arkets( 0ndian
"akery 0ndustry +2366 +23 66)236:, )236:, %etrieve from http(**ww.businesswire.com*home*%esearch)$arkets)"akery)roducts) 0ndia RobertsG E9H+;F rojected "alance sheet, %erieve from
http(**leanplan.com*projected)balance)sheet* tanley , E9H+
http(**www.accountingtools.com*definition)financial)statementt http(**www.accountingtools.com*definition)financial)statemen Ti!othea LiG E9H+9F% "akery "usiness Analysis, %etrieve from
http(**smallbusiness.chron.com*bakery)industry)analysis.html 3ilfredo RoyecaG 1ensan Bews 9nline $ag, %etrieve from
http(**www.gensantos.com*233I*3F*the)rolee)bakeshop)story
94
3inG Ballada E9H+;F artnership and !orporation, %etrieve from
https(**www.irs.gov*"usinesses*Small)"usinesses)@)Self) #mployed*artnerships 3oods )% ThornsburyG E9HHF% !abdirect, %etrieve from
http(**www.cabdirect.org*abstracts.html eidanG E9H+
http(**www.business.vic.gov.au*money)profit)and)accounting*getting)paid) on)time*cash)flow)statement)projection)with)template
95
,$$"NDIL , '"TT"R O* R"$OND"NT R,)ON ),(,5,5 )")ORI,' CO''"(" College of Business "ducation $ioneer ,venueG (eneral antos City
&uly +;G 9H+=
&anice 6ho $anager =o)Anns "akeshop Santiago "oulevard, =orge %oyeca "lvd, 1eneral Santos !ity
/ear Sir( 1ood /ayR Ge, the students of %amon $agsaysay $emorial !olleges are conducting a study in our subjects in &easibility Study +&s6 with the title of CA &easibility Study of utting up a "akery in 1eneral Santos !ityD. 0n lieu with this, we are ask permission from your good office to conduct an inte interv rview iew to gather gather the the data data in the the study study.. Ge will will rest rest assur assure e that that the the information that will be given by your office will be kept confidential. Any further insights you have would be greatly appreciated. Thank you very much and more powerR Sincerely Mours, ,sfahani ,sfahani % ,bdulrad1ak ,bdulrad1ak *rit1ie ,nn ,nn $% ar!iento ar!iento
Boted by( ,rvin T% (aligaoG )B) 0nstructor
96
,$$"NDIL , '"TT"R O* R"$OND"NT R,)ON ),(,5,5 )")ORI,' CO''"(" College of Business "ducation $ioneer ,venueG (eneral antos City
&uly +
Red Ribbon ;*1 &loor >!! $A;; of 1ensan =. !atolico Sr. Avenue, 1eneral Santos !ity
/ear Sir( 1ood /ayR Ge, the students of %amon $agsaysay $emorial !olleges are conducting a study in our subjects in &easibility Study +&s6 with the title of CA &easibility Study of utting up a "akery in 1eneral Santos !ityD. 0n lieu with this, we are ask permission from your good office to conduct an inte interv rview iew to gather gather the the data data in the the study study.. Ge will will rest rest assur assure e that that the the information that will be given by your office will be kept confidential. Any further insights you have would be greatly appreciated. Thank you very much and more powerR Sincerely Mours,
,sfahani % ,bdulrad1ak %esearcher
Boted by( ,rvin T% (aligaoG )B) 0nstructor
*rit1ie ,nn $% ar!iento %esearcher
97
,$$"NDIL , '"TT"R O* R"$OND"NT R,)ON ),(,5,5 )")ORI,' CO''"(" College of Business "ducation $ioneer ,venueG (eneral antos City
&uly +=G 9H+=
(oldilocks 6*& S$ !ity of 1ensan San $iguel St, 1eneral Santos !ity
/ear Sir( 1ood /ayR Ge, the students of %amon $agsaysay $emorial !olleges are conducting a study in our subjects in &easibility Study +&s6 with the title of CA &easibility Study of utting up a "akery in 1eneral Santos !ityD. 0n lieu with this, we are ask permission from your good office to conduct an inte interv rview iew to gather gather the the data data in the the study study.. Ge will will rest rest assur assure e that that the the information that will be given by your office will be kept confidential. Any further insights you have would be greatly appreciated. Thank you very much and more powerR Sincerely Mours, ,sfahani % ,bdulrad1ak %esearcher
Boted by( ,rvin T% (aligaoG )B) 0nstructor
*rit1ie ,nn $% ar!iento %esearcher
98
,$$"NDIL , '"TT"R O* R"$OND"NT R,)ON ),(,5,5 )")ORI,' CO''"(" College of Business "ducation $ioneer ,venueG (eneral antos City
&uly +>G 9H+=
,unt 'udiBakeshoppe 2*& S$ !ity 1ensan San $iguel St, 1eneral Santos !ity
/ear Sir( 1ood /ayR Ge, the students of %amon $agsaysay $emorial !olleges are conducting a study in our subjects in &easibility Study +&s6 with the title of CA &easibility Study of utting up a "akery in 1eneral Santos !ityD. 0n lieu with this, we are ask permission from your good office to conduct an inte interv rview iew to gather gather the the data data in the the study study.. Ge will will rest rest assur assure e that that the the information that will be given by your office will be kept confidential. Any further insights you have would be greatly appreciated. Thank you very much and more powerR Sincerely Mours,
,sfahani % ,bdulrad1ak %esearcher
Boted by( ,rvin T% (aligaoG )B) 0nstructor
*rit1ie ,nn $% ar!iento %esearcher
99
,$$"NDIL , '"TT"R O* R"$OND"NT R,)ON ),(,5,5 )")ORI,' CO''"(" College of Business "ducation $ioneer ,venueG (eneral antos City
&uly +?G 9H+=
'eonida.s Cakes and $astries =ose !atolico !a tolico Sr. Ave, 1eneral Santos !ity
/ear Sir( 1ood /ayR Ge, the students of %amon $agsaysay $emorial !olleges are conducting a study in our subjects in &easibility Study +&s6 with the title of CA &easibility Study of utting up a "akery in 1eneral Santos !ityD. 0n lieu with this, we are ask permission from your good office to conduct an inte interv rview iew to gather gather the the data data in the the study study.. Ge will will rest rest assur assure e that that the the information that will be given by your office will be kept confidential. Any further insights you have would be greatly appreciated. Thank you very much and more powerR Sincerely Mours, ,sfahani % ,bdulrad1ak %esearcher
Boted by( ,rvin T% (aligaoG )B) 0nstructor
*rit1ie ,nn $% ar!iento %esearcher
100
,$$"NDIL , INT"R-I"3 (UID" 7U"TION,IR" R,)ON ),(,5,5 )")ORI,' CO''"(" College of Business "ducation $ioneer ,venueG (eneral antos City
The interview guide is designed to gather the necessary information for the study of putti putting ng up a bakery bakery busi busines ness s in 1ene 1enera rall Sant Santos os !ity !ity.. The The areas areas to be cons consid ider ered ed
are are
the the
mark market etin ing, g,
fina financ ncia ial, l,
tech techn nical ical,,
manag anage ement ment
and and
orga organi nia ati tion on,, fina financ ncia iall and and soci socio) o)ec econ onom omic ic aspe aspect ct as perc percei eive ved d by the the respondents of the study ,% 6. 2. 7. F. ". +% a. b. c. d.
$rof rofile Ghat Ghat is the the name name of the busine business ss Ghen Ghen was the the busin business ess esta establi blishe shed d 5ow many many years years does does the the busines business s exist exist 5ow many person personnel nel do you you have have 0nterna 0nternall Asses Assessme sment nt )ark )arket etin ing g ,sp ,spec ectt Gho is your your tar target get mark market et 5ow will will you you introduce introduce your product product to the the market market Ghat are are the market marketing ing strategie strategies s you used used in promot promoting ing your your product product Ghat are the the
9% a. b. c. d. ;% a. b. c. d. <% a. b.
other products in the market Technic chnical al ,spect spect Ghat are the the necessary necessary materials materials used used in in baking baking Ghat Ghat are the the facilit facilities ies of the busin business ess Ghere Ghere do you get your your raw materi materials als 5ow long long does it take take before before the suppli supplier er will will arrive arrive )anage!e )anage!ent nt and Organi Organi1ati 1ation on Ghat Ghat is the form form of busine business ss organi organiat ation ion Gho is is the owner owner of the busi business ness Ghat specific specific
101
c. 5ow long long did it take take for your your business business to cover cover up the expens expenses es after after the business had been established =% "cono!ic a. 5ow does your your business business help the the economy economy of the place where where you are are in b. 5ow does does your your business business help help in the society society*commu *community nity
CURRICU'U) -IT," Na!e&ritie Ann . Sarmiento Cellphone M 3JF?)7?J7):27 ,ddress Saeg!alumpang, 1eneral Santos !ity "!ail fapsarmientoyahoo.com
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUU $"RON,' D,T, 4o!e ,ddress Saeg!alumpang, 1eneral Santos !ity ,ge 23 e# &emale Date of Birth !alumpang, 1eneral Santos !ity Religion %oman !atholic *ather.s Na!e Aurelio . Sarmiento )other.s Na!e Anna $ariecelle . Sarmiento 'anguage poken !ebuano, Tagalog, #nglish
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUU "DUC,T "DUC ,TION ION,' ,' ,TT,IN)"NT ,TT,IN)"NT
102
Tertiary Bachelor of cience in Business ,d!inistration2 Business )anage!ent %amon $agsaysay $emorial !olleges ioneer Avenue, 1eneral Santos !ity SM( 236:)236? econdary 1eneral Santos !ity 5igh School !ahilsot Lillage "arangay !alumpang, 1eneral Santos !ity "le!entary 5.B !ahilsot !entral #lemtary School !ahilsot Lillage "arangay !alumpang, 1eneral Santos !ity
CURRICU'U) -IT,"
Asfahani S. Abdulradak Abdulradak Na!e Asfahani Cellphone M 3J:3):IJ:)424 Address( Qone 2" Saway;abangal, 1eneral Santos !ity "!ail asfahaniabdulradakyahoo.com UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUU $"RON,' D,T, 4o!e ,ddress Qone 2)" Saway, Sawa y, "rangay;abangal 1eneral Santos !ity ,ge 23 e# &emale Date of Birth 1eneral Santos !ity Religion 0slam Abdulradak *ather.s Na!e Abdul)ai '. Abdulradak )other.s Na!e Bolan S. Abdulradak 'anguage poken !ebuano, Tagalog, #nglish, $anguindanao
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUU "DUC,T "DUC ,TION ION,' ,' ,TT,IN)"NT ,TT,IN)"NT Tertiary
103
Bachelor of cience in Business ,d!inistration2 Business )anage!ent %amon $agsaysay $emorial !olleges ioneer Avenue, 1eneral Santos !ity SM( 236:)236? econdary ;abangal #lementary School rk. $aguindanao, "arangay ;abangal, 1eneral Santos !ity "le!entary ;abangal Bational 5igh School Qone 2)A Saway, "arangay ;abangal, 1eneral Santos San tos !ity
