Acknowledgement
Gratefully acknowledge the following persons who in one or another helping us in m a k i n g t h i s s t u d y a s u c c e s s fu fu l o n e . T h e y s e r v e a s g u i d e a n d s h a r e d k n o w l e d g e t h a t t h i s pro project ject was was made made poss possib ible le..
To Dr. Alberto Talaid, PIE our special project adviser who has been there to support us. To our friends for teaching how to prepare the financial statement and spending their time even though they’re busy.
To our dear family who have been always there supporting and being understanding in giving the time for us to spend this project. And above all to our Almighty God a millio million n thanks thanks for the streng strength, th, knowle knowledge dge,, good good health health,, wisdom wisdom and the guidan guidance ce that that enligh enlighten tened ed our hearts hearts and minds that that this study would would be possible.
INTRODUCTION
Ice manufacturing has started in early this century. Prior to these factories ice was imported from the mountains, at a very high financial cost, and did not last too long due to temperature. But these new factories started producing three to four tons of ice per day. This was enough to support the population more so than ever before. Ice was preserved over the warm summer months by packing the ice in saw dust for insulation. Instantly the ice business became big business.
Many entrepreneurs started investing money in formulating mechanical refrigeration at an economical cost. Interest in ice making equipment was at full force in the early twentie twentieth th century. century. Uncerta Uncertainty inty of supplie supplies, s, great great fluctua fluctuation tions s in price price and sanitat sanitation ion standards standards made natural ice obsolete obsolete to the artificial product. Ice making equipment and refrigeration processes spread throughout the country. Ice making equipment became crucial for long distance shipments of perishables.
Ice preservation in the home, though, was still not up to par at this point, but that only benefited the manufacturers. Ice was not a cheap product either. In fact it cost more than many meats and dairy products.
Ice manufacturing caused a shift in many familial practices. Household foods could be preserved for longer periods of time, Prior to refrigerators and iceboxes basically all foods had to be consumed on the spot. Ice cream, cold beer and many other food products products that needs to be chilled. The regular availability of ice and iceboxes also gave the
mother
of
the
family
more
leeway
in
culinary
practices.
In 1920 1920,, the the indu indust stry ry rank ranked ed nint ninth h in amou amount nt of inve invest stme ment nt amon among g Amer Americ ica' a's s commercial enterprises. But the advent of the home refrigerator collapsed the industry. By 1925 little remained. Giant ice houses stood vacant along rivers and lakes. It is a fine example of an industry that underwent massive growth and importance to economy.
Project Brief The subject document provides details about an ice plant. Major products are ice blocks and the like. However, the plant is also capable of extending its product range to manufacture other forms to accommodate consumer needs. The feasibility study forms the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and production, finance and business management.
Opportunity Rationale Most of areas of Philippines have long duration of summer due to which demand for ice is high for 2 months of the year. As Philippines is a developing country and large portion of the population cannot afford refrigerators for domestic use. Another growing market for ice plants are industries linked to food products i.e. fish, dairy, bakeries, restaurants etc. With this growing demand a large number of ice plants are operating in the country.
There are approximately 700 plus ice plants operating in Manila, catering to the needs of different institutional and domestic buyers. The total installed capacity of ice plants in Manila is approximately 232, 672 –tons of ice blocks per day. The need of ice blocks is increasing due to economic growth, as major buyers are institutional buyers (dairy, bakery, hotel, etc.), who buy in bulk.
EXECUTIVE SUMMARY
♦
“APL DY CORP.” is business manufacturing ice products.
♦
The proponents propose a corporate form of business.
♦
The proponents formulate the vision and the mission of the establishment for them to be guided for the existence of the business.
♦
The proponents adopt the use of the functional organizational structure.
♦
“APL DY CORP.” implements its company policies and its company code of conduct to have a harmonious relationship with the employees.
♦
There will be 60 full-time employees.
♦
Salaries and wages of the employees are based on standard rate
NAME OF THE PROJECT
We finally agreed on what could be the name of our company after some serious discussion about it. And as expected, we have chosen “APL DY” as the name of the company following common trends a company name nowadays must have. We all agreed to this name for the reason that it was taken from the initials of our surnames.
APL DY CORPORATION LOGO
VMG
VISION APL DY company foresees itself as the number one manufacturer of high quality and clean ice products all over the Philippines.
MISSION We aim to become one of the leading manufacturers and supplier of ice products using high quality and advanced equipment with extra benefits to the consumer.
OBJECTIVE The objective of the company is to be more competitive in the market and to be the leading manufacturer and supplier of ice products in the Philippines.
Short Term Objectives •
To build a good rapport with the consumers and to the people of Cebu.
•
To maintain a good working relationship with all our employees and also to the suppliers.
Long Term Objectives •
Our company’s objective is to be the leading supplier of ice products fot he next five years in Cebu.
•
Our business will endeavor to be an excellent company here in the Philippines that will be loved by the Filipinos and eventually we can export our products to other countries.
•
To be able to penetrate in the marker for a long run, and to defy competitors.
SPECIFIC OBJECTIVES Marketing Aspect •
To ensure that the product will be promoted in a very good way in which it can penetrate into the market.
•
To attract more customers within 6 months of operation.
•
To guarantee that the chosen promotional campaigns will not only benefit the company but also the customers that will purchase the product.
Management Aspect •
To impose a high quality of ice product.
•
To attain the company’s aim and purpose.
•
To focus on the employees, their jobs, benefits and salaries, and to their tasks that will be done before starting the business.
Technical Aspect •
To get rid of qualms during the operation and in the future.
•
To scheme the overall process in the production.
•
To assure the safety and the benefits of the customers.
Financial Aspect •
To have enough information about the financial account of the business.
•
To be able to figure out on how the business deals with the trend of the demand and supply within the circulation of the business.
•
To assure that the business is profitable and feasible.
GENERIC STRATEGY
The strategy that the group will be using is the Cost Leadership Strategy. The firm sells its product either at average industry price or below average price to gain market share and be affordable to lower class. On the event of intense competition, our company can produce more inexpensive and excellent quality ice products that will remain profitable for a longer period of time.
FORM OF BUSINESS APL DY is an ice manufacturing corporation. The firm composed of 5 general owners. A corporation is a legal entity that is created under the laws of a state designed to establish the entity as a separate legal entity having its own privileges and liabilities distinct from those of its members.
Nature of the Business APL DY Corporation is a company producing ice products through machines. It aspires to be the primary producer of ice products in the future and to replace the usual products of the like. We start our business with “
Financial Source Forty (40%) of the estimated cost of the proposed project will be obtained through loan and the remaining 60%will be contributed by the Owners.
“APL DY CORPORATION”. ORGANIZATIONAL CHART
PRESIDENT
V-PRESIDENT
ACCOUNTING
STAFF
HRD
PRODUCTION
STAFF
WORKERS
SECRETARY
PURCHASIN G
STAFF
MARKETING
STAFF
ORGANIZATIONAL STRUCTURE ANALYSIS
The president of the company will serve as the head of the whole establishment although he/she still has to be dependent with the owner in making decisions with regards to major affairs of the business. He/she will implement the tasks to be done by the employees. The president has a direct authority over his or her subordinates. Under the president are the other personnel such as the Gen. Manager and secretary. Thus, the Gen. Manager has the direct responsibility of looking over the performance of his/her subordinates, such as the accountant, production supervisor and the sales supervisor. Each of these 3 is classified depending on the subordinate’s tasks. Accountant is in charge for the performance of the bookkeeper, cashier and billing clerk. The sales supervisor is for the area of selling for the performance of its salesman. And last is the production supervisor which has the overview of the work of the retreading company, where the workers of the tire are under. The inspector, buffer, skiver, repair man, thread applicator, curing specialist and the quality control.
RECRUITMENT & SELECTION
1. POLICY STATEMENT
APL DY is committed to a fair and effective recruitment and selection process that efficiently and effectively attracts and acquires the high calibre of employees required to fulfill APL DY ’s objectives, whilst having regard for all individuals concerned. Along with recruiting able, motivated and suited individuals for vacancies within APL DY , this policy ensures that existing members of staff are given the opportunity to develop and progress their career within APL DY . In order to achieve these objectives, APL DY will:
• Review its recruitment and selection procedures regularly in light of changes in employment legislation and best practice • Monitor each recruitment and selection exercise, assessing results quarterly • Offer training and coaching to all individuals involved in the recruitment and selection process, including training on recruitment and selection techniques and on the importance of equal opportunities throughout the process.
2. ETHICAL FRAMEWORK
APL DY ’s full commitment to the policy of equal treatment of all employees and job applicants is set out in APL DY ’s Equal Opportunities Policy. Working alongside that policy, APL DY ’s recruitment and selection procedures aim to ensure that:
• Candidates are treated fairly and not discriminated against on the grounds of sex, race, religion, age or disability. • Candidates are treated courteously and honestly. They will be given all the information they need about the company and the role so that they can make an informed decision about whether or not to accept an offer of employment. • Good professional practice will be followed in interviewing, selecting and using tests – results of such tests, along with interview feedback, will be carefully and considerately fed back to those candidates who want to know how they performed in lay terms.
3. RESPONSIBILITIES FOR RECRUITMENT & SELECTION APL DY ’s procedures, whilst being managed centrally by the Personnel team, allow for departmental and management involvement and consultation through the entire recruitment and selection process. The Personnel team will handle much of the recruitment and selection activity, in order to take advantage of experience and economize on effort: • To provide a reference point for communication, external queries and applications.
• To standardize communication and to reinforce APL DY ’s corporate image, enabling consistency of advertising style, effective cost control and maximum media buying power. • Potential spotted in candidates may not be appropriate to the post for which that individual applied, but may be relevant to another vacancy. • The volume of administration and the need for specialist knowledge of the changing legal and employee relations requirements mean that a specialist function may be more effective. Management and departmental involvement is key to an effective recruitment and selection process through: • Establishing contact between the manager and applicants early on in the recruitment process, leading to improved short listing and self (de)selection. • Ensuring that department and functional staffing needs are closely met. • Enabling continuous personal development, through utilization of the transferable skills developed through involvement in recruitment and selection.
4. PROCEDURES This policy recognizes the individuality of each role within APL DY . Therefore the recruitment and selection procedures to be followed allow for a degree of flexibility and provide scope to tailor each recruitment and selection exercise to its particular vacancy and the needs of the recruiting department/team. The Personnel team will involve the nominated contact(s) of the recruiting department throughout the recruitment and
selection process and will be available to advise on the recruitment and selection methods available, and the process to be followed at all times.
5. PART-TIME WORKING AND JOB-SHARING APL DY encourages flexible working practices that allow staff to achieve a reasonable balance between their personal and working lives. All recruitment within APL DY will be considered for both part-time working and job-sharing. Both internal vacancy bulletins and external advertisements will state whether or not a position is suitable for part-time working and job-sharing.
6. INTERNAL RECRUITMENT All permanent and fixed-term appointments will be advertised internally in the Internal Vacancy Bulletins. Internal recruitment does not circumvent equal opportunities legislation or APL DY ’s equal opportunities policy and the procedures for recruitment and selection detailed in this policy must be adhered to. Internal applicants expect, and are entitled to, the same treatment as external candidates. Therefore no internal candidate will be subjected to favorable or unfavorable discrimination throughout APL DY ’s recruitment and selection.
7. TEMPORARY RECRUITMENT Recruitment for temporary vacancies within APL DY
may be considered as
developmental and present learning opportunities for existing staff. These temporary
assignments enable staff, with the required abilities and skills, to experience working within a different role or team. The position left vacant by the internal ‘temporary’ will be filled, on a temporary basis, by either internal or external means. The responsibilities of the internal ‘temporary’ along with their departmental needs will be taken into account, and the assignment will be discussed between the Personnel team and all managers and individuals involved, before any such assignment is undertaken. If no suitable internal applicant is identified for a temporary position within APL DY , the Personnel team will then seek to fill the vacancy by alternative, and possibly external, methods.
8. THE APPOINTMENT PROCEDURE All offers of appointment are subject to the receipt of two satisfactory references, one if the successful candidate is known to APL DY e.g. through a recruitment agency or secondment, and work to date has been satisfactory, and a satisfactory health questionnaire being received.
9. REFERENCES The Personnel team will take up written references, following approval from the successful candidate, enclosing a copy of the job profile for the role. These references will then be reviewed by the Personnel team and the manager of the appointee. References will normally be sought from a candidate’s current or most recent employer and one previous employer. Personal, or character references will only be considered when two employment references are unavailable, e.g., young people new to
employment and in cases where individuals have been out of the employment field for some time. Where the candidate is reluctant to allow employment references to be taken up, full reasons should be given in writing to the Personnel team who will, in consultation with the manager of the post in question, give consideration to their objections.
10. FAILURE TO APPOINT If a recruitment and selection process has been unsuccessful, the Personnel team will discuss, and advise on, the next step in the process with the departmental contact(s) involved in the selection. Where it is decided that the vacancy should be re-advertised in another publication, previous applications or short listed candidates will not be interviewed/re-interviewed for the same post as this would be contrary to the process developed to ensure equality of opportunity. Any subsequent advertisement will include a statement indicating that it is a re-advertisement and the previous applicants need not apply,for this reason.
COMPANY WORK RULES AND STANDARDS OF CONDUCT
Disciplinary Action- Disciplinary or corrective action will be administered whenever possible to give employees advance notice of unacceptable conduct or performance in doing their job in order to provide an opportunity to correct these problems. Corrective
action, at the company’s option, may involve verbal counseling, written warnings, suspension or a combination of these. However, the Company in its sole and absolute discretion may terminate employment without prior warning, counseling or other forms of corrective action. It must be remembered that the employment relationship is based on mutual consent of the employee and the Company. Accordingly, either you or the Company can terminate the employment relationship at will at any time, for any or no reason. Further, the Company can demote, transfer, suspend or otherwise discipline an employee in its sole and absolute discretion .
Company Work Rules-It is necessary, in order for our business to operate efficiently and safely, that employees observe the rules governing our work environment. The following, while not all inclusive, is a list of employee conduct, performance problems or actions considered violations of Company work rules, which may result in disciplinary action, up to and including termination of employment. 1. Unexcused, habitual or excessive absence from work. 2. Frequent, habitual or excessive tardiness. 3. Failure to promptly notify the Company of an intended absence. 4. Leaving work before your scheduled shift is completed, without management authorization or visiting areas away from one’s work place. 5. Failure to punch your time card (record), falsification of the time card or violation of the time card policy.
6. Failure to immediately notify supervision of time delays, shortages, breakdowns or delivery problems. 7. Excessive spoilage in producing your work. 8. Failure to properly perform assigned work. 9. Violation of break period or meal period policies. 10. Use of profane or abusive language to supervisory or management personnel, other employees, vendors or customers. 11. Defacing or removing Company materials on bulletin boards. 12. Willful damage to Company equipment. 13. Violation of the Company’s Solicitation and Distribution Rule. 14. Repeated refusal to work overtime or failing to have overtime authorized by your management. 15. Violation of Conflict of Interest policies. 16. Violation of Company’s Voice Mail, E-mail and Computer Files Policy. 17. Violation of the Company’s Drug and Alcohol Policy.
It must be remembered that the employment relationship is based on mutual consent of the employee and the Company. Accordingly, either you or the Company can terminate the employment relationship at will at any time, for any or no reason. Further, the Company can demote, transfer, suspend or otherwise discipline an employee in its sole and absolute discretion.
Standards of Conduct-Laws are made so that people can live together with respect for their personal and legal rights. Company standards of conduct are made for exactly the same reason. The following Company standards, while not all-inclusive, are the principal standards in effect at our Company. These standards apply equally to all and are for the protection of all employees and our Company. Engaging in the following activities may subject you to disciplinary action, up to and including termination of employment . 1. The possession, sale or use of knives, explosives, firearms, or other dangerous weapons on
Company property.
2. Fighting, threatening or attempting bodily injury to another. 3. Consuming, possessing, selling, and distributing alcoholic liquors or illegal drugs or narcotics on Company property. 4. Falsification of Company records, including employment application, tax records including social security numbers, time cards and/or production work records. 5. Insubordination, including but not limited to, refusal to do assigned work. 6. Inability or refusal to work in harmony or cooperation with fellow employees so as to cause friction, conflict or lowering of group morale, including deliberate spreading of false rumors adversely affecting the operation of the Company. 7. Deliberate or willful destruction or vandalism of Company tools, machines, products, supplies, or other Company property.
8. Sleeping while on duty. 9. Leaving your department or assigned work place without permission and/or the use of working time for non-working purposes. 10. Disclosing confidential Company information or removing customer property from Company premises, without prior Company authorization. 11. Gambling of any kind on Company time or premises. 12. Unauthorized use of Company property, equipment or materials. 13. Habitual or gross negligence or incompetence in the performance of assigned duties or unnecessary waste of Company materials. 14. Engaging in or contributing to violent behavior, or threatening others with violence. 15. Violation of the Company's Harassment, Equal Employment and Violation of Law policies. It must be remembered that the employment relationship is based on mutual consent of the employee and the Company. Accordingly, either you or the Company can terminate the employment relationship at will at any time, for any or no reason. Further, the Company can demote, transfer, suspend or otherwise discipline an employee in its sole and absolute discretion.
Job Description President: The President is responsible for ensuring that the Board of Directors and its members: are aware of and fulfill their governance responsibilities;
comply with
applicable laws and bylaws; · conduct board business effectively and efficiently; · are accountable for their performance. Secretary: A Business Secretary is responsible for administrative and clerical duties and assists with both daily tasks and long term projects. He or she schedules appointments, maintains records and files reports. Auditor: Examine and analyze accounting records to determine financial status of establishment and prepare financial reports concerning operating procedures. Accounting Manager: Establishes financial status by developing and implementing systems for collecting, analyzing, verifying, and reporting financial information; managing staff Purchasing Manager: Maintain records of goods ordered and received. Locate vendors of materials, equipment or supplies, and interview them in order to determine product availability and terms of sales. Marketing Manager:
The marketing manager is responsible for the overall
management of the marketing department.
Production Manager: A production manager ensures that goods and services are produced efficiently. They ensure the correct amount is produced at the right cost and at the right level of quality. HR Manager: The Human Resources Director guides and manages the overall provision of Human Resources services, policies, and programs for the entire company. Production Supervisors: Accomplishes manufacturing staff results by communicating job expectations; planning, monitoring, and appraising job results; coaching, counseling, and disciplining employees; initiating, coordinating, and enforcing systems, policies, and procedures. Machine Operators: Set up or operate various types of printing machines, such as offset, letterset, intaglio, or gravure presses or screen printers to produce print on paper or other materials. Maintenance Head:
Communicates directly with the operations department to
coordinate maintenance and repair work in process areas. Technician: Perform a wide variety of general building maintenance repairs and services. Quality Control Inspector: Quality control ensures that products and services are at their highest quality before they reach the consumer.
Production Workers: Production workers typically work in a manufacturing, warehouse or service setting, and can have a variety of responsibilities depending on the type of environment they work in. Packing Personnel: This aspect refers to any previous experience a person might have in filling orders and packaging products for dispersal, either in shipping and receiving department or in a bulk order warehouse that deals in wholesale distribution. Driver:
Prepare Vehicle by conducting operator maintenance. Plan Route and
requirements by studying schedule or ad-hoc requests by the office.
JOB QUALIFICATION President: -should have a wide variety of strategic experience and the ability to execute plans efficiently and within budget -strong managerial, communication, analytical and procedural skills are all necessary. -should have at least a bachelor's degree, although most have one or several advanced degrees such as a master's of business administration or finance.
V-President: -hold a college degree focusing in business administration -excellent communication skills, analytical minds, strong personalities, and the ability to many tasks at the same time
Secretary: - High school diplomas are considered the minimum requirement
Auditor: -
Within 12 months of attendance at the Audit Workshop
Accounting Manager: - Bachelor's Degree in Accounting or a related field and five years of professional accounting experience 20 -Nine years of professional accounting experience; OR, Any equivalent combination of experience
Purchasing Manager: - Bachelor's / College Degree Minimum Yrs. of Work Experience 5 yr(s) - Graduate of engineering course or any - can work under pressure
Marketing Manager: -
A good and excellent communication skills with the knowledge of various and different languages. -Self- confidence, motivated, challenger -greater percentage of tolerance power and patience should have the good knowledge of the market and product
HR Manager:
- College graduates with a technical or business background or a well-rounded liberal arts education. - College graduates who have majored in human resources, human resources administration, or industrial and labor relations. Production Manager : - 5 years of proven engineering management experience in a similar role -Post-secondary education B.E. Sc. (electrical) required. - Fully computer literate (Microsoft Office, Excel, Outlook, Word) - Problem solving and resolution skills using formal engineering methodologies Production Supervisor: - Associate's degree (A.A.) from two-year college or technical school -two to five years related experience and/or training; or equivalent combination of education and experience.
Maintenance Head: - Seven years of general maintenance and repair experience, - Which includes one year of supervisory experience - Associate's degree in Business Administration - five years of general maintenance and repair experience Machine Operator:
- at least college level. - male, 22 to 35 yrs. Of age Quality Control Inspector: - 35 yrs - Educational Attainment Bachelor's / College Degree -Minimum Yrs. of Work Experience 3 yr(s)
Production Worker: -male or female -18 to 35 yrs of age -at least high school graduate
Driver: -A Copy of the Driver's Medical Certificate. -The Road Test Certificate or Equivalent.
Company Rules ad Regulation 1. All
Machine Guards must be in place and machine free from tools, material
and/or trash before machine is operated. 2.
All tools, loose material (not being used) must be kept from the floor around the machine area where the operator would stand.
3.
Each and every employee is responsible for keeping air hoses, electrical extension cords off the floor and placed in the proper holding places when not in use.
4.
All loose material that is usable must be placed in correct area where it belongs.
5.
All finished material must have customer's name and lot number written on or attached to when it leaves your work area.
6.
All fire extinguishers must be in plain view and accessible at all times. Nothing is to be placed on, in front of or within 18 inches of either side of fire extinguishers.
7.
No smoking or any type fire will be allowed in the shop area or in the storage sheds, you will be discharged on the spot for failure to comply. Each employee is allowed 2 breaks and a lunch period to smoke in the break room or in the outside yard. If you smoke outside, the cigarette butts must be disposed of properly.
8. All
workers are required to wear back support belt, hearing protection, eye
protection,
and steel toe boots or shoes while working. (If you report to work
and do not have your safety equipment does not expect to work, you will be written up on a "Disciplinary Report"; and sent home without pay. The third time 24 this happens you will be given three days suspensions for each item without pay. The fourth time this happens you will be discharged for failure to comply with company regulations and safety rules). 9.
Industrial injuries (this is when you are injured while performing your assigned job for the company) must be reported immediately to the clinic and a report must be filled out with you giving the exact details as shown on form.
10. Horse
play or yelling across the shop will not be permitted.
11.We will not tolerate stealing from company or co-workers; you will be discharged immediately for doing so. 12. Abusive
language will not be tolerated on company property or customer's job
site. We feel sure that one can use other words to describe how they feel. 13.
Abuse of tools, equipment, will be grounds for dismissal. Trucks are to be kept clean daily.
14. Factory
area and equipment must be kept as clean as possible.
15. Factory
tools are not to be left on floor, they should be returned to proper place
when not in use. 16.Restrooms and Break Rooms are to be clean and orderly; paper and/or paper towels are to be thrown in trash, not on floor. 17.
The microwave is to be cleaned after each use. No hot plates allowed.
18.
No gambling or fighting on company property.
25 19. Employee will be discharged immediately if you are caught with alcohol or illegal drugs before or during working hours. What you do on your own time is your business, providing it does not interfere with your job performance or attendance. 20. No
livestock is to be brought to work with employee. This is not a kennel or barn,
nor do we aspire to be. 21. It
is every employee's responsibility to keep shop clean and in order. It is
employee's responsibility to keep their immediate work area in a clean and organized manner. Truck drivers are responsible for keeping the trucks, molding racks and loading area clean.
22. Every
employee is entitled to and required to take a 30 minute recess for their
lunch. 23. Continuous
absenteeism and tardiness from work will be grounds for dismissal.
If you are sick, you must call in after work time in morning and report to someone, a message on answering machine is not good enough. If you are sick for more than one day you must have a doctor's note clearing you to work before you come back.
24. In the event one or more of the Regulations/Rules are not complied with, the I, (print name here) _________________________ have read and/or been read to, all 24 Company Regulations and/or Safety Requirements set forth by Finest Corporation. I hereby understand the disciplinary action that the Company will follow in the event of my failure to comply with the Company Regulations and/or Safety Rules. I understand if I do not abide by the above, but not limited to, Rules and/or Regulations, I may expect termination of employment.
27 CODE OF CONDUCT INTRODUCTION: This This Code Code of Busi Busine ness ss Cond Conduct uct cove covers rs a wide wide range range of busine business ss practi practice ces s and and procedures. procedures. It does not cover every issue that may arise, but it sets out basic principles to guide all employees and officers of the Company. All of our employees and officers must must cond conduct uct themse themselve lves s acco accordi rdingl ngly y and and seek seek to avoi avoid d even even the the appe appear aran ance ce of improper behavior. The code should also be provided to and followed by the Company’s
agents and representatives. In addition, Company policies apply to various Company operations and you need to know and follow those policies that apply to your Company work. Those who violate the standards in this code will be subject to disciplinary action, including possible possible dismissal. Furthermore, Furthermore, violations violations of this code may also be violations of the law and may result in civil or criminal penalties for you, your supervisors and/or the Company. If you are in a situation which you believe may violate or lead to a viola violatio tion n of this this code code,, follo follow w the proced procedure ures s set set out out in Secti Section on 19 of this this code code.. The The basic basic princ princip iples les discu discusse ssed d in this this code code are are subje subject ct to any any Compa Company ny polic policie ies s covering the same issues.
1.
COMPLIANCE
WITH
LAWS,
RULES
AND
REGULATIONS
Obeying the law, both in letter and in spirit, is the foundation on which this Company’s ethical standards are built. All employees and officers must respect and obey the laws,
28
rules, and regulations of the cities, states, and countries in which we operate. Although employees and officers are not expected to know the details of each of these laws, rules and regulations, it is important to know enough to determine when to seek advice from supervisors, managers or other appropriate personnel.
2.
CONFLICTS
OF
INTEREST
A “conflict of interest” exists when a person’s private interest interferes in any way, or even appears to interfere, with the interests of the Company. A conflict situation can arise when an employee or officer takes actions or has interests that may make it difficult to perform his or her Company work objectively and effectively. Conflicts of interest may also arise when an employee or officer (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company. Loan Loans s to or guara guarant ntee ees s of oblig obligat ation ions s to, to, emplo employee yees s and and offic officer ers s and and their their family family members by the Company may create conflicts of interest and in certain instances are prohibited
3.
by
law.
CORPORATE
OPPORTUNITIES
Employees and officers are prohibited from taking opportunities that are discovered through the use of corporate property, information or position for themselves without the consent of the board of directors. No employee or officer may use corporate property,
29
information or position for personal gain and no employee or officer may compete with the Company directly or indirectly. Employees and officers owe a duty to the Company to adva advanc nce e the the Comp Compa any’s ny’s inte intere rest sts s whe when the the oppo opport rtun unit ity y to do so arise rises. s.
4.COMPETITION
AND FAIR DEALING
We seek seek to outpe outperfo rform rm our our compe competit tition ion fairl fairly y and and hone honest stly. ly. We seek seek compe competit titive ive advantages through superior performance never through unethical or illegal business practices. Stealing proprietary information, possessing trade secret information that was obtained without the owner’s consent, or inducing such disclosures by past or present emplo employee yees s of othe otherr compa companie nies s is prohib prohibite ited. d. Each Each emplo employee yee and and offic officer er should should ende endeav avor or to resp respect ect the the rights rights of and and deal deal fairl fairly y with with the Compa Company’ ny’s s custo customer mers, s, supp supplie liers rs,, compe competit titor ors s and and emplo employe yees es.. No employ employee ee or offic officer er should should take take unfa unfair ir adva advant ntag age e of anyo anyone ne thro throug ugh h mani manipu pula lati tion on,, conc concea ealm lmen ent, t, abus abuse e of priv privil ileg eged ed informat information, ion, misrepre misrepresen sentatio tation n of material material facts, facts, or any other other illegal illegal trade trade practic practice. e. No employee or officer is permitted to engage in price fixing, bid rigging, allocation of markets or customers, or similar illegal activities.
5.
POL POLIITICAL CAL
CON CONTRIBU IBUTIONS ONS
Except as approved in advance by the chief executive officer or chief financial officer, the Company prohibits political contributions (directly or through trade associations) by
30
the Company or its business units. This includes: (a) any contributions of Company funds or other assets for political purposes; (b) encouraging individual employees to make any such such contrib contributio ution; n; or (c) reimbursing reimbursing an employe employee e for any contributi contribution. on. Individual employees are free to make personal political contributions as they see fit.
6.
DISCR ISCRIIMINA MINAT TION ION
AND HARASSMEN MENT
The The dive diversi rsity ty of the the Compa Company ny’s ’s emplo employee yees s is a tremen tremendo dous us asse asset. t. We are are firmly firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment based on race, color, religion, sex, natio nationa nall origi origin n or any any othe otherr prote protecte cted d class. class. For For furthe furtherr infor informat matio ion, n, consu consult lt the appropriate Company
7.
HEALTH
policy.
AND SAFETY
The Company strives to provide each employee and officer with a safe and healthy work environment. Each employee and officer has the responsibility for maintaining a safe and healthy workplace for all employees and officers by following environmental, safety, and health rules and practices and by reporting accidents, injuries and unsafe equip equipmen ment, t, pract practice ices s or condi conditio tions ns.. Viole Violence nce and and threa threaten tening ing beha behavio viorr are not not permitted.
31 8.ENVIRONMENTAL The Company expects its employees and officers to follow all applicable applicable environmental laws and regulations. If you are uncertain about your responsibility or obligation, you should check with your supervisor, unit manager or the Corporate Vice President – Administration Administration
for
guidance. guidance.
9.
RECORD-KEEPING,
FINANCIAL
CONTROLS
AND
DISCLOSURES
The Company requires honest, accurate and timely recording and reporting of information
in
order
to
make
responsible
business
decisions.
All business expense accounts must be documented and recorded accurately in a timely manner. If you are not sure whether a certain expense is legitimate, ask your controller.
Policy
guidelines
are
available
from
your
controller.
10.CONFIDENTIALITY Employees and officers must maintain the confidentiality of proprietary information entrusted to them by the Company or its customers or suppliers, except when disclosure is authorized in writing by the chief financial officer or required by laws or regulations. Proprietary information includes all non-public information that might be of use to competitors or harmful to the Company or its customers or suppliers if disclosed. It includes information that suppliers and customers have entrusted to us. The obligation to
preserve
proprietary
information
continues
even
after
employment
ends.
32
11.
PROTECTION
AND
PROPER
USE
OF
COMPANY
ASSETS
All employees and officers should protect the Company’s assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Company’s profitability. All Company assets are to be used for legitimate Company purposes. Any suspected incident of fraud or theft should be immediately reported for investigation.
Company
12.
assets
TRADE
should
not
be
used
for
non-Company
business.
ISSUES
From time to time, the United States, foreign governments, and the United Nations have imposed boycotts and trading sanctions against various governments and regions, which must be obeyed. Advice regarding the current status of these matters must be obtained from the chief financial officer.
13.
WAIVERS
OF
THE
CODE
OF
BUSINESS
CONDUCT
AND
ETHICS
Any waiver of this code for executive officers or directors may be made only by the board of directors and will be promptly disclosed as required by law or regulation.
14.
REPORTING
ANY
ILLEGAL
OR
UNETHICAL
BEHAVIOR
Employees are encouraged to talk to supervisors, managers or other appropriate personnel about observed behavior that they believe may be illegal or a violation of this Code of Conduct or Company policy or when in doubt about the best course of action in
33
a particular situation. It is the policy of the Company not to allow retaliation for reports made in good faith by employees of misconduct by others. Employees are expected to cooperate in internal investigations of misconduct.
15.
IMPROPER
INFLUENCE
ON
CONDUCT
OF
AUDITORS
It is prohibited to directly or indirectly take any action to coerce, manipulate, mislead or fraudulently influence the Company’s independent auditors for the purpose of rendering the financial statements of the Company materially misleading. Prohibited actions include, but are not limited to, those actions taken to coerce, manipulate, mislead or fraudulently influence an auditor: (1) to issue or reissue a report on the Company’s financial statements that is not warranted in the circumstances (due to material violations of generally accepted accounting principles, generally accepted auditing standards, or other professional or regulatory standards); (2) not to perform an audit, review or other procedures required by generally accepted auditing standards or other professional standards; (3) not to withdraw an issued report; or (4) not to communicate matters to the Company’s audit committee.
16.
FINANCIAL
REPORTING
As a public company, it is necessary that the Company’s filings with the U.S. Securities and Exchange Commission be accurate and timely.
34 SOURCES OF FINANCE The proponents had decided for the source of finance 40% of the capital would be loan from the bank of P35,000,000 and the remaining 60% would came from the 4 proponents of P53,696,000. Each proponent would divide the P53, 696,000 to have a balance contribution. For each proponent would contribute of P13, 424,000.00
35
FINACIAL ASPECTS PROJECTED BALANCE SHEET
PREOPERATING
1st YEAR
2nd YEAR
3rd YEAR
4th YEAR
5th YEAR
76,822,409. 00 76,822,409. 00
100,488,470 .42 100,488,470 .42
125,745,632. 84 125,745,632. 84
ASSETS Current Assets Cash Total Current Assets Non Current Assets Building Land Landscaping Furniture & Fixture Machine and Equipment Other Non-Current Assets Total N on-current A ssets TOTAL ASSETS
15,000,000.0 0 15,000,000.0 0
34,115,831. 68 34,115,831. 68
54,710,678. 32 54,710,678. 32
21,600,000.00 20,520,000.00 19,440,000.00 18,360,000.00 17,280,000.00 16,200,000.00 47,250,000.00 47,250,000.00 47,250,000.00 47,250,000.00 47,250,000.00 47,250,000.00 500,000.00 450,000.00 400,000.00 350,000.00 300,000.00 250,000.00 600,000.00 480,000.00 360,000.00 240,000.00 120,000.00 0.00 2,516,000.00 2,012,800.00 1,509,600.00 1,006,400.00 503,200.00 1,230,000.00 984,000.00 738,000.00 492,000.00 246,000.00 0.00 73,696,000.00 71,696,800.00 69,697,600.00 67,698,400.00 65,699,200.00 63,700,000.00 88,696,000.00 105,812,631.68 124,408,278.32 144,520,809.00 166,187,670.42 189,445,632.84
LIABILITIES AND OWNER'S EQUITY
Long Term Liabilities
35,000,000.0 0
31,500,000. 00
28,000,000. 00
24,500,000. 00
21,000,000 .00
17,500,000. 00
Owner's Equity Capital: Beginning Add : Net Income Less : Drawing Capital: End TOTAL LIABILITIES AND OWNER'S EQUITY
53,696,000.00
53,696,000.00
53,696,000. 00 20,616,631. 68 74,312,631.68
74,312,631. 96,408,278. 120,020,809 145,187,670. 68 32 .00 42 22,095,646. 23,612,530. 25,166,861 26,757,962. 64 68 .42 42 96,408,278.32 120,020,809.00 145,187,670.42 171,945,632.84
88,696,000.00 105,812,631.68 124,408,278.32 144,520,809.00 166,187,670.42 189,445,632.84
PROJECTED INCOME
REVENUE (schedule) Less: Expenses Salaries and wages (schedule 6) Utilities (schedule 3) Miscellaneous (schedule 2) Insurance Interest on long term liabilities (schedule 5) Depreciation (schedule 4)
OPERATING REVENUE Less: Tax @ 32% NET INCOME
1st YEAR 49,920,000. 00
2nd YEAR 52,416,000. 00
3rd YEAR 55,036,800. 00
4th YEAR 57,788,640. 00
5th YEAR 60,678,072. 00
6,855,600. 00 2,987,000. 00 2,554,800. 00 1,004,824. 00 4,200,000. 00 1,999,200. 00
7,541,160. 00 3,016,870. 00 2,580,348. 00 1,004,824. 00 3,780,000. 00 1,999,200. 00
8,295,276. 00 3,047,038. 70 2,606,151. 48 1,004,824. 00 3,360,000. 00 1,999,200. 00
9,124,803. 60 3,077,509. 09 2,632,212. 99 1,004,824. 00 2,940,000. 00 1,999,200. 00
10,037,283. 96 3,108,284. 18 2,658,535. 12 1,004,824. 00 2,520,000. 00 1,999,200. 00
30,318,576. 00 9,701,944. 32 20,616,631. 68
32,493,598. 00 10,397,951. 36 22,095,646. 64
34,724,309. 82 11,111,779. 14 23,612,530. 68
37,010,090. 32 11,843,228. 90 25,166,861. 42
39,349,944. 74 12,591,982. 32 26,757,962. 42
Assumptions: 1. 2. 3. 4.
Revenue is expected to increase 5% every year. Salaries and wages are expected to increase 10% every year. Utilities expense is expected to increase 1% every year. Miscellaneous expenses are to increase to 1% every year.
5. Insurance expense is P 1,004,824.00 every year. 37
PERSONNEL PLANTILLA JOB TITLE
NO. OF WORKERS
President
1
V - President
1
Secretary
2
Manager
5
Supervisor
4
Clerk
8
Technician
2
Machine Operator
8
Sewing Machine Operator
6
Production Worker
13
Driver
2
Driver Helper
2
Janitor
2
Security
4
TOTAL
60
SALARY PER TOTAL SALARY PER MONTH YEAR 50,000. 600,000. 00 00 30,000. 360,000. 00 00 8,000. 192,000. 00 00 15,000. 900,000. 00 00 10,000. 480,000. 00 00 7,500. 720,000. 00 00 9,000. 216,000. 00 00 8,000. 768,000. 00 00 7,500. 540,000. 00 00 7,500. 1,170,000. 00 00 7,900. 189,600. 00 00 7,500. 180,000. 00 00 7,500. 180,000. 00 00 7,500. 360,000. 00 00 182,900. 6,855,600. 00 00
38
MACHINE DETAILS
NAME OF MACHINE
NO. OF UNITS
COST PER MACHINE
TOTAL COST
Toe Lasting Machine
2
92,622.00
185,244.00
Back Lasting Machine
2
15,500.00
31,000.00
Sole Press
1
9,400.00
9,400.00
Side Press
1
10,100.00
10,100.00
Flat Bed Sewing Machine
4
19,400.00
77,600.00
Post Bed Sewing Machine
4
21,000.00
84,000.00
Zigzag Machine
2
30,000.00
60,000.00
Buffing Machine
2
5,375.00
10,750.00
Grinder Machine
2
5,375.00
10,750.00
Staple Machine
1
21,000.00
21,000.00
Eyeletting Machine
3
55,000.00
165,000.00
Sole Stitching Machine
1
50,000.00
50,000.00
Lathe Machine
2
120,000.00
240,000.00
Milling Machine
2
125,000.00
250,000.00
Air Compressor
2
67,500.00
135,000.00
Clutch Motor
9
3,500.00
31,500.00
Conveyor
2
572,500.00
1,145,000.00
TOTAL COST -----------------------------------------------------------------------
2,516,344.00 39
AMORTIZATION OF LONG TERM OBLIGATION
PERIOD
BALANCE AT THE
INTEREST
PRINCIPAL
BALANCE AT THE
(year)
BEGINNING OF PERIOD
12%
PAYMENT
END OF PERIOD
1
35,000,000.00
4,200,000.00
3,500,000.00
31,500,000.00
2
31,500,000.00
3,780,000.00
3,500,000.00
28,000,000.00
3
28,000,000.00
3,360,000.00
3,500,000.00
24,500,000.00
4
24,500,000.00
2,940,000.00
3,500,000.00
21,000,000.00
5
21,000,000.00
2,520,000.00
3,500,000.00
17,500,000.00
6
17,500,000.00
2,100,000.00
3,500,000.00
14,000,000.00
7
14,000,000.00
1,680,000.00
3,500,000.00
10,500,000.00
8
10,500,000.00
1,260,000.00
3,500,000.00
7,000,000.00
9
7,000,000.00
840,000.00
3,500,000.00
3,500,000.00
10
3,500,000.00
420,000.00
3,500,000.00
0.00
* The long term liability will be amortized at 12% with in 10 years.
40
TOTAL LAND REQUIRED and BUILDING CONSTRUCTION COST Description Area (sq. Rate / sq. meter TOTAL
meter) Building Construction Cost
1200
Land cost
1575
18,000. 00 30,000. 00
21,600,000. 00 47,250,000. 00 68,850,000. 00
TOTAL LAND AND BUILDING COST ---------------------------------------------OTHER NON-CURRENT ASSETS Equipment spare parts ----------------------------Vehicles ------------------------------------------------
130,000. 00 1,100,000. 00
TOTAL --------------------------------------------------
1,230,000. 00
REVENUE SCHEDULE Total ouput per day (pairs) -----------------------Working days per month (days) ----------------Total ouput per month (pairs) -------------------Total output per year (pairs) ---------------------Total sales per year (80% of output per year) Unit price
500 26 13000 156000 124800 400.
---------------------------------------------TOTAL REVENUE ----------------------------------
00 49,920,000. 00 41
MISCELLANEOUS SCHEDULE ELECTRICITY CONSUMPTION: Average consumption per day (kw) -------------------------
800
Average consumption per hour (8 hour consumption) --
100
Cost per kw/hr. --------------------------------------------------
10.00
Cost in 1 hour consumption ----------------------------------
1,000.00
Cost in 1 day consumption (8 hours) -----------------------
8,000.00
Cost in 1 month consumption (26 days) -------------------
208,000.00
Cost in 1 year consumption (12 months) ------------------
2,496,000.00
WATER CONSUMPTION: Average consumption per month (cu. Meter) -------------
300
Cost per cu. Meter ----------------------------------------------
13.00
Cost in 1 month consumption --------------------------------
3,900.00
Cost in 1 year consumption (12 months) ------------------
46,800.00
TELEPHONE BILL (1 year) -----------------------------------
12,000.00
TOTAL MISCELLANEOUS in 1 YEAR ---------------------
2,554,800.00
42
CORPORATE SHARE NET INCOME FOR THE FIRST YEAR-------Php 20,616,631.68 Corporate share for each = NET INCOME/ 4 Corporate share for each = Php 20,616,631.68/4 Corporate share for each = Php 5,154,157.92
PAY BACK PERIOD Pay Back Period = Total Investment/Net Income Pay Back Period = 88,696,000 / 20,616,631.68 Pay Back Period = 4.3 years
RETURN OF INVESTMENT ( ROI ) ROI = NET INCOME/TOTAL INVESTMENT = Php 20,616,631.68/88,696,000 = 0.2324 X 100% ROI
= 23.24%
MARKETING ASPECT Marketing, more than any business function deals with customers. Creating customer value and satisfaction give the heart of modern marketing thinking and practice. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. In order to increase the demand structure of the product, which leads to
consumer's satisfaction, careful planning and execution of concepts, promotion, pricing and distribution of goods are vital. Therefore, it is important that a market study and survey be conducted to determine the viability and workability of a proposed business venture, in terms of its product distribution, pricing and the possible return of investment. The market study defines the circulation status of the proposed project when actualized in the real market. In this study, the proponents gave their insights about the following: •
Description of the company
•
Demand
•
Supply
•
Relationship between the demand and supply
•
Description of the price of the product or service to be sold
•
Factors affecting the market
•
Appropriate marketing program for the product
43 MARKETING STRATEGY Marketing program is the end of a market study. We have to be good enough in dealing with this marketing program for the success of our business depends much on it. Since our business is a retreading we have to study the different strategies in order for this business to exist.
One of it is to have promotion. We choose to be in a newspaper advertisement since we consider that mostly professional people would prefer to read newspaper than listen radio or even watch television. We also offer a free delivery to selected customers who would avail our service in big volumes. We consider this as a promotion since the existing retreaders do not offer the same. Noting starts until a sales is made, no matter how will organized your production is, no matter how good your shop layout is, no matter how good your quality is, no matter how much money you have, you still not be successful corporation until you have an aggressive, well organized marketing program that gets results. FINEST CORPORATION has one of the best organized sales producing marketing programs in the industry today. It takes you all the way from determining the market that is available to you, to getting the order. 1. FINEST CORP. provides a way to find prospects in your area by a name and address. a. Within your assigned area there is a great variety of prospective customer. Each one must be located, evaluated, and called upon with definite plan. We catalog your prospect. The very things that you need to know most are: 1.) What users are in your immediate area? 2.) How large are they? 3.) What kind of equipment do they use? b.
The best sources for this information are: local classified section of the telephone book, state vehicle registration office, the Chamber of Commerce, the Trines Blue Book, local trucking associations.
44
c. With our help you will be able to make up an inventory sheet of potential customers which could look something like this: NAME OF CUSTOMER
APPROX PAIRS OF SHOES
(CEBU BASE ONLY)
NUMBER OF BRANCH
PER MONTH
GAISANO MALLS
8
5,000
AYALA CENTER
1
2,500
SM CITY
1
2,500
SCHOOLS
3
3,000 TOTAL
13,000 2. FINEST CORPORATION gives you a way to organized your salesman’s time and calls. A complete call and sales record. a. A commercial sales follow-up card for every prospect. Each card should be filed out as completely as possible with data obtained from all available sources and actual sales calls. Get an expandable file or any filing where you can set up 31 separate days for each month. Plan your work, placing the call cards for each day in their correct place. This then allows you to get your appointment set and meetings scheduled far enough ahead to plan your sales approach. Upon completion of the call you will be in a position to set your follow up by specific days. The new information can then be entered on the card and placed in the correct day for the next call. RECORDS in this sales business are ESSENTIAL. b.
The Call and Sales Record Sheet is for listing alphabetically each account. This provides a record of each call, not only on the prospect card, but also on the Call and Sales Record Sheet. It will show exactly where your sales activity is concentrated. By listing the amount of sales per call on any given account, it soon will become evident where you salesmen are spending most of their time and what they are accomplishing. This will enable you to more intelligently direct your people into areas and accounts that need a greater concentration of sales effort.
45
c. The daily report of calls is for listing each call made. This is a daily report that has columns for a name and address of the account called upon, miscellaneous comments, and amount of order secured.
3. Tuckers open house. Complete the instructions have been developed for you to make your open house a real profit maker. One of the most reasons for success in any marketing program is enthusiasm. Enthusiastic salesmen just naturally work harder, study harder, and try harder. They are more receptive to and eager for suggestions and they inject fun and excitement into their sales presentations.
46
TARGET MARKET
Customer or potential client is one of the most important elements of our business. Without customers, our business is nothing; it will leave to be. “Treat your clients well and they will come back time after time but upset them once you may have lost them for life.” Many businesses are formed in the belief that as soon as they begin to trade then the customers will come. In reality nothing could be further from the truth. Knowing and understanding who our customers are, will be crucial. “It takes less effort to keep an old customer satisfied than to get a new customer interested.” One important factor that influences the success in a business is to be able to identify its market. A market is a set of actual and potential buyers of a product or service. 1.
Private customers - these customers mostly came from any places with in Cebu. Which are government employees, business man/women, or any customer who want to have a quality shoes.
2. Private and Public companies – these are company that needs shoes for their uniform. 3. Malls and department stores – we display and put stock
47
MARKET SHARE
7% 15%
33%
20%
Robertson’s Shoes Viper Shoes Carcar Shoes Imported Shoes Fine Shoes
25%
The chart above shows the percentage value of the sales of each competitors here in Cebu province (that includes the Cebu City and the rest of cities and provinces of the island) as of 2012.
COMPETITORS
C.KOK Int’l Corporation(Robertson’s shoes) (13 Spolarium St., Cebu City)
Viper Shoes (Basak, Cebu City)
Carcar Shoes (Carbon Market)
Imported Shoes
(Malls and Side walk) DEMAND Our target market is most specifically to customers who don't have enough money to buy brand new pair of shoes or who want to save money. Since money is so precious, sometimes it is more practical to save, to have more income to spend on other important expenses.
SUPPLY There is only one Shoe Company near our area. As far as our survey is concerned, we are not far behind with them since our firm offers a service which they don't have; that is the free delivery depending on its location to be delivered and the number of order of shoes. Although there are some requirements in availing such a service, we can still be sure that we can also compete with the old ones and would even more provide services as competent as possible.
SUPPLY AND DEMAND ANALYSIS With the increase in the number of individual in need of quality shoes and only limited number of shoes company have existed in North Reclamation Area Cebu City, it is clear that the present tire retreading company can no longer cater the serving needs. Although there are some shop which do not encounter difficulty in serving the customer. However, there are those who said that they are not able to offer the quality service which the customer expected. Due to this reason, the FINEST CORPORATION was built to cater the demand which other shoe company cannot offer.
48 PRICE STUDY In business, price is very essential for it is the basis in determining the demand-supply situation. Through it we can be able to know the status of our business whether it is earning or loosing. We are first considering the price of our competitors. In order not to be left behind, we are just making our price almost at the same level as theirs.
MARKETING PROGRAM OR STRATEGY Marketing program is the end of a market study. We have to be good enough in dealing with this marketing program for the success of our business depends much on it. Since our business is a laundry shop we have to study the different strategies in order for this business to exist. One of it is to have promotion. We choose to be in a newspaper advertisement since we consider that mostly professional people would prefer to read newspaper than listen radio or even watch television. We also offer a free delivery to selected customers who would avail our service in big volumes. We consider this as a promotion since the existing laundry shops do not offer the same.
49 TECHNICAL ASPECT LOCATION In an ideal world every business would be located where it could achieve maximum profit with a minimum cost, but as we do not live in such a world then our location must be chosen with the utmost care. The task of finding the right location can be very difficult. The nature of the business will have a great bearing on the location. So we chose to locate our business at North reclamation Area Cebu City. Our prospective markets are customers who are willing to save money and save their old tires.
LOCATION FACTORS The proponent chooses the area at North Reclamation Area Cebu City. The area is wide and large enough to build for the planned are of the building. The area is accessible with cars and trucks. It has a better supply of water needed for the plant. It doesn’t have plenty of houses to be disturbed by the noise created in the plant. Waste management is good enough for the location it’s because the area is an industrial place. It would be a good area for customers for having a good space for delivery; it’s also near to SM mall and SM hyper mart where customers can leisure around while waiting for their tire being recapped
50
FACTOR RATING 5 - Excellent 4 - Good 3 - Average 2 – Poor 1 – Very Poor
FACTORS
CEBU CITY
DANAO
MANDAUE
Transportation
5
2
4
Accessibility
5
3
4
Labor Rate
4
3
4
Average
4.667
2.667
4
We choose Cebu City as the location of our company because it is near to the vicinity of the consumers and Cebu is more industrialized compared to other cities in the Cebu province. Cebu City is also the center of trade.
VICINITY MAP
Source: www.google.com//map
51 PICTURE OF LOCATION
Source: www.google.com//map
52 BUILDING PERSPECTIVE
53
ESTABLISHMENT’S LAYOUT
The building area is 40x30 meters. It is a one story building composed of seven areas, namely: packing department, assembly department, stock room, sewing department, sorting/cutting department, admin office and a lobby.
54 COMPANY OBJECTIVES
To promote a profitable and sustainable business activity that meets the
Customers needs.
To increase the company's market share
To gain the competitive edge
To increase the company's role in relations to social responsibility
To provide excellent customer service
55 RAW MATERIALS FOR MANPOWER
Cartoon Boxes
Leather and Cloth
56
Sole and Insole
57 Molders
58 Adhesive
59
PROCESS FLOWCHART
CUTTING/SORTING PATTERN
UPPER
UPPER
MAKING
GUIDING
CUTTING
STAMPING
STICHING/SEWING UPPER
UPPER
GUIDING
SKIVING
CHECKING
SEWING
ASSEMBLY UPPER
TOE
BACK
SIDE
BOTTOMIN
SOLE
SIDE
PASTING
LASTING
LASTING
LASTING
G
PRESSI
PRESSIN
MOLD
SOLE
CLEANIN
SHOE
FINAL
PACKIN
REMOVIN
STICHING
G
LACING
CHECKIN
G
DELIVERY
60
PROCESS DESCRIPTION
@ CUTTING/SORTING DEPARTMENT Pattern Making - making pattern for the desired shoe design. Upper Guiding - guiding the canvas with the use of shoe patterns. Upper Cutting - cutting the guided canvas Stamping
- stamp the specification in the canvas.
@ SEWING DEPARTMENT Upper Guiding - guiding upper for the sewer to follow. Upper Skiving - skiving the upper Sewing
- sewing the upper
Checking
- checking the sewed upper
@ ASSEMBLY DEPARTMENT Upper Pasting — putting adhesive into the upper Toe Lasting
— attaching the upper and insole board using toe lasting machine
Back Lasting — attaching the back side of the shoe. Side Lasting
— attaching the side part of the shoe.
Bottoming
— attaching the shoe and the sole
Sole Pressing — pressing the attached shoes using sole press machine Side Pressing — pressing the side portion using side press machine Mold Removing — separating the mold and the shoe form. Sole Sticthing — sewing the sole and shoe together using sole stiching machine 61
Cleaning
— cleaning the formed shoe
Shoe Lacing
— putting shoe lace
Final Checking — checking the quality Packing
— putting the shoe into shoe box
Delivery
— deliver to market or consumer
62
OFFICE SUPPLIES
63
64
SHOE MAKING PATTERN
65
MACHINES AND EQUIPMENT
TOE LASTING MACHINE
66
BACK LASTING MACHINE
67
SOLE STITCHING MACHINE
SIDE PRESS MACHINE 68
FLAT BED SEWING MACHINE
69
POST BED SEWING MACHINE
70
EYELETTING MACHINE
STAPLE MACHINE
71
AIR COMPRESSOR
LATHE MACHINE
72
MILLING MACHINE
73
CLUTCH MOTOR
BUFFING MACHINE
74
GRINDER MACHINE
75
SUMMARY FINDINGS The volume production of this company is immense and could be considered as profitable because of the growing demand of the population specifically here in Cebu to acquire shoes . The capital invested by the corporate will be returned for at least four years based on the rate of return of the investment. With these outcomes, the company could sustain for the financial requirements in operating for a long period of time.
CONCLUSION
FINEST CORPORATION incorporate large amount of capital to run business.
The source of capital is 60% from the owner and 40% loan from the bank
This company doesn’t need a lot of employees at start.
The project is environmental friendly.
Employees have enough benefits and contributions
This business is profitable here in Cebu because of the growing demand of shoes
RECOMMENDATION PRIMARY
The business is recommended to be monitored and maintain quality control.
Waste should be properly disposed and segregated.
Price should not be too high to encourage customers.
Employees should follow safety precautions.
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