Executive Summary
Name of Project: Jam- me Flavored Taho Plant Location: Macrohon Drive, Canelar, Zamboanga City Porponent: Vanessa Joy R. Delatado Robert Louie C. Dela Paz Crystal Abigail Carpio Edmark Apolinario Cheerlene Refugio Project Description: Partnership Objectives of the Project: To produce the most mouthwatering flavored taho in a zest. As well as, to provide additional income to the proponent. Project Benefits: Provide additional employment and income opportunities. Project cost: Php 500,000 (refer to financial aspect for breakdown). Project Funding: 100% equity by the owners Contingency Plan: Should the project prosper, there will be expansion and more production. If the project will not be successful, the plant can be used to produce other soybean products.
INTRODUCTION
A. Nature Nature of the Busines Business s The Philippines is one country whose people are known to be fond of drinking fruit shakes, sago’t gulaman, pineapple juice, etc. because the Filipinos are known to have sweet tooth, Jam-me team conceptualized flavored taho in Zamboanga. While most Filipinos were thinking about refreshments, shakes and coffees, we are busy innovating something better which was based on “Jello Burst”--this refreshment was brought from Manila by Reginald dela Paz (owner) that created an instant hit among its drinkers. The newest drink is a unique and refreshing drink- that is pure to delight many. What What makes makes the the drink drink differ different ent and and entic enticing ing (Flav (Flavore ored d Taho Taho)) is the the chew chewy y “sago “sago”” combined with various flavors such as: mango, buko pandan, melon, ube, sweet corn and vanilla. Each flavor has its own distinct taste that is sure to please people’s different palates. The drink is served in distinctive dome-shaped cups with oversized colored straws that allow the sago to shoot up the mouth when the drink is sipped. The business will start as an incubation income generating project and will later be developed into a full- blown manufacturing concern. B. Backgro Background und of the the Study Study Jam- me Flavored Taho is a new product to be introduced in Zamboanga City. As a must, owners have to screen the applicants to ensure success. This is a new venture product, if this study finds the project viable.
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The price for the said taho proposal is Php 500,000. This includes the rental, cart, signage, acquisition of equipment and utensils, uniforms, raw materials and other paraphernalia. C. Signifi Significan cance ce of the Study Study This This study study deter determin mines es wheth whether er the the busine business ss of JamJam-me me Flavor Flavored ed Taho Taho in MindP MindPro ro Citim Citimall all Zamb Zamboa oanga nga,, along along La Purisi Purisima ma Stre Street et is feasib feasible le or not. not. Also, Also, it determines the consumers’ preference in terms of price, quality and distribution of the product. Lastly; this study determines the awareness of consumers and its reasons for patronizing Jam- me Flavored Taho. D. Objecti Objectives ves of the the Stud Study y The main objective of this feasibility feasibility study is to ascertain the viability of venturing into a flavored taho business. In line with this objective, this study therefore attempts to undertake the following:
Ident Identify ify,, ratio rational nalize ize,, analy analyze ze and and under understa stand nd the key succe success ss fact factor ors s of JamJam- me Flav Flavor ored ed Taho Taho,, and and ther therea eaft fter er,, expl exploi oitt opportunities to improve the business.
Introduc Introduce e and analyze analyze the overall overall activiti activities es and perform performance ance of JamJam- me Flav Flavor ored ed Taho Taho-- both both inte intern rnal ally ly and and rela relati tive ve to the the carcinogenic effect on drinkers, and thereafter, assess its strength and weaknesses.
E. Scope, Scope, Focus Focus and and Limitati Limitation on of the the Study Study It must be realized that this study is limited only in the market acceptability and viability of Jam- me Flavored Taho. The target market of this study are people from all
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walks of life most especially health conscious ones. The proponents chose this location for the simple fact that it is near the schools premises “Ateneo” in particular because it is known to be a captive market. Other constraints of this study were related to inflations, economic and political conditions, as well as other calamities that will be encountered during the study. The study focuses more on the various aspects of the project feasibility study which includes the following: Market study, Technical Technical study, Management Management study, Socioeconomic study and Financial study. F. SWOT SWOT Anal Analys ysis is 1. Strengths
The company is the sole source of flavored taho in Zamboanga City.
Accessibility of taho products in the target market
The company is registered under BFAD, DOLE, DOH and other government authorities that certify the safety of the product.
2. Weaknesses
Taho product easily gets spoiled
Product substitutes
3. Opportunities
The company may expand its sales area to other schools within the City.
4. Threats
Competitors – imitation of flavored taho
Permanence of competitors in the area- classic taho peddler
Low-entrant market
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G. Methodology The principal sources of data in this study came from actual observations within Ateneo premises and personal interviews with the different taho plants present in the city. The researchers spent most of the research time in the school premises observing the sales and demand of these products so as to gauge the number of cups sold in a day by the taho peddler. Moreover, the project feasibility was implemented after all sources and data gathering are being conceptualized. Proposing a said venture promotes a catalyst of change for the benefit of others most especially, health-conscious people. The thing that derives proponent’s consciousness seeks the importance of health after knowing its benefits. Studies were finally initiated combining all the important aspects to know whether the project is viable.
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I. Marketing aspect Market Description Not since the days of Shawarma and Lechon Manok was the country played witness to a food craze. Ordinary taho that was innovated and become an instant hit is more of a business opportunity than a more beverage stand. The whole concept of jazzing up of what used to be an ordinary drink has turned into today’s hottest craze that people are willing to line up for. The proposed project business is Jam-me Flavored Taho. The supposed Jam-me Flavored Taho stand will be located on a 3 by 4 square meter area in MindPro Citimall, along La Purisima St. Zamboanga City. It will be situated at the second level of the building, in front of Teen Squad boutique and beside Z.C. Video Mate. Along that sketch, you can also find Giordano and Oxygen boutique. The sight is very much ideal for the project considering that the location is a hit for teenagers. The total project is estimated at Php 500,000.00, which will be funded by the owners. The amount covers the acquisition of equipment and utilities, as well as, the monthly supply of raw materials and working capital. Nature of Demand Demand for Taho The analysis of demand is part of the important task in identifying the needs of consumers and determining whether they are willing to buy your product, and have the capability to pay for the products a business is contemplating to produce.
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The demand for Taho in Zamboanga City is growing tremendously for the past decades. Taking the beverage by storm, Icecapades sells an average of 42.2 cups (regular size) and 140.79 cups (large size) per day. Thirsty in Mindpro Citimall cannot be considered a direct competitor but only a potential substitute. Although the proposed site of Jam-me Flavored Taho is also at MIndpro Citimall, the quality and taste of Thirsty is incomparable with Jam-me. Therefore, it is not actually affecting the sales of Jam-me Flavored Taho. Below are sales schedule for Icecapades located at 2 nd level Mindpro Citimall. These sales were based on the actual data given by the owners. Day 1 represents the start of the week (Monday). The peak sales of Icecapades are usually on the weekdays, that is, Friday and Saturday.
Day Size 1 Regular Large 2 Regular Large 3 Regular Large 4 Regular Large 5 Regular Large 6 Regular Large 7 Regular Large 8 Regular Large 9 Regular Large 10 Regular Large 11 Regular Large 12 Regular Large
Icecapades Quantity Sold 45 142 40 120 38 140 36 128 55 152 60 165 25 108 42 141 39 162 44 149 32 129 47 159
Price 12 16 12 16 12 16 12 16 12 16 12 16 12 16 12 16 12 16 12 16 12 16 12 16
7
13
Regular Large 14 Regular Large Total Cups/Ave. Regular Large
54 168 34 108
12 16 12 16
591 1971
42.21 140.79
Considering Jam-me Taho, though, it has no direct competitor, Icecapades was invariably pointed as competitor considering it is located at the 2 nd level of Mindpro and the newly hit closed-ties competitor-to-be for Jam-me Flavored Taho.
Supply Analysis Supply, like any other aspects affecting the operation of the business, indeed, has been playing a role in satisfying what the people’s needs and wants are. The higher the supply of products in the business is, the more it can cater the needs of the masses. There are variables affecting supply. As such, are the cost of production, availability of raw materials, competitors and the price of the commodity. Production cost would require greater amount of many to finance the processing of the commodity. Nevertheless, taho does not require a very much complicated financial aspect, it isn’t already that difficult for us to produce the said commodity. When tackled about availability of raw materials, we can say that it’s accessible enough for us to secure those materials needed to produce taho. Most of those can be acquired in a public market. We merely purchase it by kilo; soybeans in particular, while the rest of those can be expressed by volume and may it be kilo as well, like cups to be used and other ingredients such as sugar respectively.
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The existence of competitors in the food industry is there, that does challenge in any other businesses like ours. With regards to this, we are aiding much to supply a lot to serve the masses utmost and to endure over existing competitors. Yet, oftentimes, it’s a burden for us especially if they have much more to penetrate the market. Lastly, the price of the commodity defines how far a business could offer such prices as affordable as the business could have. It is said to have competitive prices and that can be expressed by how the business could keep an eye to the masses’ desire to acquire the commodity. Definitely, taho is one of those; it isn’t that expensive for the consumers to purchase it. Hence, the above factors mentioned are indeed necessary to identify the supply of a certain commodity. The supply of Jam-me Flavored Taho (ingredients in particular) will partly be coming from Executive Homes, Pacific Street, Matina, Davao City. Other supplies will be bought here in Zamboanga. Shipment of the ingredients and supplies will be done quarterly. By the time this study is taking place, the Jam-me flavored Taho will soon be sprouting like mushrooms here in Zamboanga. And hundreds of outlets will soon exist all over the Country.
Supply and Demand Analysis Competition is at the core of the success or failure of firms. Competitive Strategy is the search for a favorable competitive position in the industry, the fundamental arena in which competition occurs. It aims to establish a profitable, sustainable position against the forces that determine industry competition.
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In any industry, the rules of competition are embodied in five competitive forces: the entry of new competitors, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers and the rivalry among the existing competitors. The collective strength of these five competitive forces determines the attractiveness and profitability of the industry.
I. THREAT OF LOW-ENTRY New entrants to an industry bring new capacity, the desire to gain market share and often substantial resources. The threat of low entry into the industry depends on the barriers to entry that the entrant can expect. If barriers are high and/or the new comer can expect sharp retaliation from entrenched competitors, the threat of entry is low. The threat of entry in the food or refreshment business is low because of the presence of barriers to entry. These barriers are as follows:
•
Economies of Scale Economies of scale refer to the declines in unit cost of a product (or operation or
function that goes into producing a product) as the absolute volume per period increases. Economies of scale deter entry by forcing the entrant to come in at large scale and risk strong reaction from existing firms or come in at a small scale and accept a cost disadvantage.
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•
Product Differentiation Product differentiation means that established taho competitors have brand
identification and customer loyalties which stem from past customer service, product differences (taste), or simply being first in the industry.
•
BFAD Licensee BFAD approval plays a key role in the food and beverage business. On the other
hand, trust on the customers will be affected once they know that the product they are about to take has been approved by BFAD to be free from foreign substance that could cause disease and cancer.
II. INTENSITY OF RIVALRY AMONG EXISTING COMPETITORS Rivalry occurs because one or more competitors either feels the pressure or sees the opportunity to improve position. The intensity of rivalry among existing competitors is low to moderate because of the following:
•
Few and Equally Balanced Competitors In Zamboanga City, there are only eight (8) taho producers. No other, company
ever tried innovating the taho. Though there is no established taho plant but taho peddler can be seen around the city, we could say that these are relatively balanced in terms of size and perceived resources.
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•
Fast and Industry Growth Fast industry growth turns competition into a market share games. Market share
competition is a great deal more volatile than in a situation in which rapid industry growth ensures that firms can improve results just by keeping up with the industry, and where financial and managerial resources may be consumed by expanding the industry.
•
Pressure from product substitute-low All firms in an industry are competing, in a broad sense, which industries
producing substitute products. Substitutes limit the potential returns of an industry by placing a ceiling on the prices firms in an industry can profitably charge. The more attractive the price performance alternative offered by substitutes, the firmer the lead on industry profits. In Jam-me Flavored Taho, the pressure from substitute products is low. The quality that the taho has cannot be equaled by its substitutes. Substitute products such as fruit shakes and soft drinks.
•
The Buyer faces no switching costs.
This Flavored Taho is said to be undifferentiated and the buyers can choose among different products available in the market to suit his taste buds. If the buyer is not satisfied with the quality and taste of the product, he can easily move to another brand without having the worry about consistency.
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Pricing Jam-me Flavored Taho stand will have one (1) size available to the market. Standard cup (12 oz.) will be sold at Php 15.00. This is the suggested retail price imposed by Jam-me Company for Zamboanga area at Mindpro Citiall. Flavors available: 1. Mango 2. Buko Pandan 3. Melon 4. Ube 5. Vanilla 6. Sweet Corn Jam-me Flavored Taho will be offering six (6) flavors in the market. These flavors have been carefully selected by the Jam-me Team to produce a slurpy, best-tasting outof-this-world drinks that will surely hit the city by storm.
Promotion and Advertising As a start-up business of flavored taho, the management will tap the local newspaper, local television and hopefully to have a continuous advertising of Jam-me flavored taho in the future.
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Packaging and Quality Consideration Jam-me flavored taho will be packed on the standard dome-shaped cups with a humongous straw sticking out of the cups. Jam-me logo and colors will be printed all over the cup. Consumers and potential buyers might be able to see these cups in wastebaskets whenever they have a walk on the mall, school or anywhere, thereby adding curiosity on them.
Projected Sales Projected Sales of Jam-me flavored taho will be 225 cups of 12 oz. at Php 15.00, an estimated 101,250 gross sales per month. Jam-me Flavored Taho Schedule for Projected Sales (For five Years) In Philippine Peso
2007 225
2008 225
2009 202
2010 228
2011 234
Projected Sales in Liters/Cup Selling 15.00 15.00 15.00 15.00 15.00 Price per cup Daily Sales 3,375.00 3,375.00 3,030 3,420 3,510 N0.of days *30 *30 *30 *30 *30 per month Monthly 101,250.00 101,250.00 90,900 102,600 105,300 Sales No. of *12 *12 *12 *12 *12 months per year Total Sales 1,215,000.00 1,215,000.00 1,090,800.00 1,231,200.00 1,263,600.00
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For the figures above, the Jam-me proponents made a random survey. Out of the 197 respondents of taho, 183 respondents can consume one cup which is 93% of the potential buyers. Fourteen (14) persons can consume three (3) to four (4) cups a day. Thus, Jam-me Taho can sell 225 cups a day.
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II. Technical Aspect A. Description and Uses of the Product All over the city and soon throughout the nation, Jam-me flavored taho stands will be sprouting like mushrooms. The used-to-be taho has been canotized to “Flavored Taho”. Jam-me Flavored Taho sounds like “yummy—try me!” is a Flavored smoothie drink with chewy sago balls. It is a tasty, milky drink with dark spherical, seductive, chewy balls made of yam and tapioca. Blending to perfection results in a smooth creamy texture that one cannot find anywhere else. There are 6 available flavors to suit the taste of different palates. Each flavor has its own distinct taste, as this was carefully selected by Jam-me Research Team in order to create a perfect combination that would result into a drink that is unique and delicious. B. Manufacturing Process
1. 2. 3. 4.
Soak soy beans for 30 minutes in tap water. Dehull the soy beans using your hands until skin of beans are peeled. Drain water and separate soy beans from its skin. Soak the soya beans for eight (8) hours with generous amount of water. 5. Drain the water from the soy beans. 6. Grind finely the soaked beans. 7. Cooked the soy beans and let it boil in 180 degrees for about 20 minutes. 8. Drain the cooked soy beans using a cheesecloth to separate the soya milk to the soy pulp. 9. Squeeze all the soya pulp for excess soya milk. 10.Boil soya milk for 5-10 minutes. 11.Stir and add gulaman. 12.Allow to boil for 10 minutes. 13.Pass the mixture through a cheesecloth then put in a molder.
16
For sago: A) Wash sago with water. B) Boil sago in water for approximately 10 minutes or until it soften.
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C. Plant Size and Production Schedule The plant is a 48 meter facility. It has an annual capacity of 29, 160 liters. It operates at an average of 81 liters of taho from Monday to Sunday during the regular twelve- month period. The plant operates at an average of 365 days a year. The factors used to determine the above figures were based on the size of equipment and time requirement for production.
Production Schedule Production Schedule
Daily supply Daily Production Days per month Monthly production Months Total production
Per Liter 81 81* 30 2,430 12 29,160
Per Cup 225 225** 30 6,750 12 81,000
Daily production of taho is done at dawn. It starts from 1:00 to 5:00 am. *225 cups x (12 0z.) x (30 ml/0z) x (1/1000 ml) = 81 liters ** (81,000/12)/30 = 225 cups
D. Machinery and Equipment Jam-me Flavored Taho will also include the equipment and machinery of the cart outlet, grinder, basin, bucket, stove, ladle, cheesecloth, pot, water dispenser, rechargeable lamp, small plastic chair, electric stand fan and etc. the procurement of these equipment will be included in the Php. 500,000.00 investment. Machinery and Functions Equipments Grinder
Machine and Source Equipment Specifications Used to grind Its useful life Public soybeans into will be for ten market powder form years.
Brand
Price (in pesos) 50,000.0 0
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before they are ready to be soaked in water.
Basin
Bucket
Where soybeans are soaked. Where cooked sago are stored. 110 Liters
Stove
Used to cook 24 inches soy, arnival , and sago. 48 inches
Ladle
Used to stir Big ingredients. Large
XL
XXL
Used to 20cc/ 12 oz transfer taho from container to cups when sold to customers. Used to 30 cc/ 12 oz dispense sago and arnival. Cheesecloth
Used to Yard separate soy
New El Bonito Commercial New El Bonito Commercial Department Store Department Store Department Store New El Bonito Commercial New El Bonito Commercial New El Bonito Commercial New El Bonito Commercial New El Bonito Commercial
Magic
82.00
Magic
88.00
Textware
1246.75
Royal Gas 25,000 Stove King Gas 75,000 Stove 240.00
400.00
280.00
280.00
35.50
Kim Chiong
129.50
Glenn’s Mktg
50.00
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from milk. Used to strain XXXL soybeans and to sago; remove excess water after these ingredients have been cooked. Where 47 inches ingredients are cooked.
Strainer/ Colander
Caldero/ Pot
Water Dispenser
Rechargeable Lamp
Electric Fan
New El Bonito Commercial Supermarke t 37 inches New El Bonito Commercial 18/10 New El Bonito Commercial Useful life of EMCOR eight years
Where ingredients are cooked. Where ingredients are cooked. Used to dispense water. For office use. Used for Useful life of EMCOR lighting during five years power outages.
Fire Extinguisher Small Chair
New El Oriental Bonito Commercial
Used in case of fire Plastic Used for miscellaneou s purposes. Stand Used for cooling purposes.
Kitchen Aid
Functions
Potholder
Used to hold hot equipment and surface.
AB-1 6840.00 Special Caldero Eagleware 3360.00 4680.00
Sunnex
8495.00
Exsol
6072.00
Kyowa
1295.00
Useful life of ten years Useful life of New El five years Bonito Commercial Useful life of EMCOR American five years Saver
Specifications Source New El Bonito Commercial
74.00
Brand
3550.00 53.50
1105.00
Cost 13.00
20
Apron Hair net Gloves Cooking/ Storage Utensils Plates Taho container
Weighting Scale Add-ons container
Syrup container
Used for sanitary purposes To hold hair in place. Used when handling materials
50.00
Used for sanitary purposes Where cooked will be taho stored. These containers will be distributed to the vendors with taho inside. Used for 100 kilograms measuring the ingredients. Where add-ons to taho will be stored. Where add-ons to Steam Table taho will be Pan stored. Where add-ons to taho will be stored. Where add-ons to taho will be stored. Where add-ons to taho will be stored. Where the syrups will be stored.
10.00
5.00 46.20
500.00
New El Bonito Commercial Supermarke t
Akita Scale
Supermarke t
Sunnex
449.75
Supermarke t
Harmony Trading
59.25
Supermarke t
3900.00
32.00
West Point Marketing Supermarke West t Point Marketing New El Smart Bonito cook Commercial squeeze
56.75
20.00
28.50
Arnival container
Where the arnival will be stored.
255.00
Scissors
Used for cutting materials Used for slicing or other purposes
13.00
Knife
27.00
21
Maintenance Supplies Scrubber
Dishwashing Soap Mops
Brooms
Hose
Dust pans
Rags
Waste Can
Bleach Agent
Broomstick
Office Supplies Candle Lighter
Source
Descriptions
Brand
Quantity
Cost
New El Bonito Commercial New El Bonito Commercial New El Bonito Commercial Used to clean factory area.
Stainless Scrubber
Dinosaur
1 piece
15
Stainless Steel Scrubber Dishwashing Liquid
Chefmate
1 piece
9.50
Windfresh
1 gallon
250
Used to clean factory area. Used to clean the factory area. Used to clean the factory area. Used to clean factory equipments and machineries. Used to throw trash Used to clean utensils and other materials Used clean
Department Store
New El Universal Bonito Heavy Commercial Duty Mophead Shopper’s Central
192.50
30.00 192.50
Golden Bell Sunny Grand Ware Center New El Bonito Commercial
29.25
4.00 Golden Bell Crescent Super Center Zonrox 1 gallon Bleach
25.00
76.75
to 5.00
10.00 22
Fluorescent Bulb Receipts
Department Store Golden Bell Super Center Bond Paper Golden Bell PPC Paper Super Center Sub.20 8½ x 13 500 sheets (white) Golden Bell PPC Paper Super Center Sub.20 8½ x 11 500 sheets White Ballpen Golden Bell Super Center Scratch Pad Golden Bell Super Center Fastener Golden Bell Super Center Staple Wire Golden Bell Omarco Super Center Staples No. 10 – 1M (2000 pcs) Paste Golden Bell Super Center Record Book Golden Bell Super Center File Folders File Folders 14-pt NAPPCO Kraft Legal Size (50 pcs) Distilled Water Ultra Phi
Philips
Calculator
Used for necessary computations
Golden Bell Casio Super Center
Puncher
Used for UK Puncher Golden Bell Wenda filing 2-hole DHP Super Punch purposes 1017 NO. Center WD102
60.00 21.00 Cactus
167.00
Cactus
150.00
Panda
4.50 6.50 0.75 6.50
78.75 59.00 4.25
35.00 467.00
60.00
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Stapler
Furnitures and Fixtures Chairs Wall Clock
Office Table
Bench
Used for filing purposes
Golden Bell Super Center
Source
Descriptions
Assembled
Wooden Chairs 10’ Wall Clock Trident
Cybersonics, Mindpro Citimall LB Homemate Furniture Assembled
Brand
35.00
Quantity
Cost
3
800.00
149.00 Wooden tables Wooden Bench
2 2
5,400.00 3,500.00
E. Plant Location The proposed plant location will be at Macrohon Drive, Canelar. The proponents desires this location for the fact that it is near the city. On the other hand, our business location will be at the second level of Mindpro Citimall. Students and people from all walks of life are frequent in this place. Thus, a permanent structured cart outlet with movable parts will be constructed. F. Plant Layout See next page
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G. Building and Facilities Jam-me Taho plant will be constructed. The said plant will be suitable for producing and selling purposes. The land area of the plant would be sixty square meters and the plant capacity is forty- eight square meters. No further development in road because the plant site is near city proper. The drainage system would be made through constructing septic tanks. Facilities would be expected to depreciate every seven years. Its expected cost of erection is Php. 200,000.00. LABOR COST FOR THE BILDING: Carpentry Mason Laborer Plumber Electrician TOTAL LABOR COST
6,000.00 4, 800.00 3, 750.00 1, 400.00 600.00 16,550.00
BILL OF MATERIALS: Jam-me Flavored Taho Schedule of Leasehold Improvement 31-Dec-07 ITEM I
II
PARTICULAR R.C. WORKS Cement Sand Gravel Steel Bars 10 mmo x 6.00 GI Tie Wire #16 MASONRY WORKS 4" CHB Wall 4" CHB Cement Sand DSB 10 mmo X 6.00
QUANTITY
UNIT COST
40 2 4 21 2
PHP
1,230.00 50 5 59
PHP
TOTAL
181.00 420.00 420.00 106.50 50.00
PHP 7,240.00 840.00 1,680.00 2,236.50 100.00
6.20 181.00 420.00 106.50
PHP 7,626.00 9,050.00 2,100.00 6,283.50
PHP 12,096.50
25
GI Tie Wire #16
III
5
50.00
250.00
Plain Cement Plaster Cement Sand
50 5
181.00 420.00
9,050.00 2,100.00
CARPENTRY WORKS Doors and Door Jamb PUC DOOR 0.60 X 2.10 FLUSH DOOR 0.80 X 2.10 1.00 X 2.10
2 1 1
PHP 2,200.00 3,500.00 3,500.00
PHP 4,400.00 3,500.00 3,500.00
82 1300
150.00 1.00
12,376.00 1,300.00
10
483.00
4,830.00
120 2
12.00 60.00
1,440.00 120.00
31,466.00
581.90 310.00 346.00 420.00 5,000.00 3,000.00
PHP 8,728.50 1,550.00 3,460.00 12,600.00 5,000.00 3,000.00
34,338.50
Hardiflex Ceiling Metal Ceiling Jolst Scind Rivets Open Shelves Door Plyboard Floor Tiles 0.20 x 0.20 ABC Grout IV
V
VI
36,459.50
PAINTING Liq. Tile Liq. Tile Cast Liq. Tile Reducer Liq. Tile Top Coat Liq. Tile Tinting Color Sandpaper, Etc
15 5 10 30 1 1
PLUMBING WORKS Toilet Fixtures Water Closet Lavatory Faucet
2 2 2
PHP 3,000.00 3,000.00 3,000.00
PHP 6,000.00 6,000.00 6,000.00
PUC Sewer Line
1
5,000.00
5,000.00
Water line
1
5,000.00
5,000.00
Drainage Line
1
5,000.00
5,000.00
33,000.00
PHP 15,000.00
15,000.00 PHP 178,910.50
PHP
ELECTRICAL WORKS 1
PHP 15,000.00
H. Raw Materials Situation Analysis
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All raw materials (cups, lids, straw, flavored syrups) will be bought from Executive Homes, Pacific Street, Matina, Davao City on a cash basis, Orders will be per-quarter basis. Said materials will be shipped through Aboitiz Express with the cost of Php 2,000.00 quarterly. Except for sago and soy beans-will be bought from the public market of Zamboanga City. Raw Materials Soybeans
Sago
Description A species of legume native to eastern Asia. It is an annual plant that may vary in growth habit and height. The bulk of the soybean crop is grown for oil production, with the high-protein defatted and "toasted" soy meal used as livestock feed. A smaller percentage of soybeans are used directly for human consumption. Soybeans are a source of complete protein. Many traditional dairy products have been imitated using processed soybeans, and imitation products such as "soy milk," "soy yogurt" and "soy cream cheese" are readily available in most supermarkets. a powdery starch made from the processed pith found inside the trunks of the Sago Palm Metroxylon sagu . Sago flour (Metroxylon) is nearly pure carbohydrate and has very little protein, vitamins, or minerals. One hundred grams of dry sago yields 355 calories, including an average of 94 grams of carbohydrate, 0.2 grams of protein, 0.5 grams of dietary fiber, 10mg of calcium, 1.2mg of iron, and negligible amounts of fat, carotene, thiamine, and ascorbic acid.
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Vanilla
Water
A flavoring in its pure form known as vanillin, derived from orchids in the genus Vanilla. Vanilla flavor in creams, cakes and other foodstuff may be achieved by adding some vanilla essence or by cooking vanilla beans in the liquid preparation. A stronger aroma may be attained if the beans are split in two; in this case, the innards of the beans (the seeds), consisting of flavorful tiny black grains, are mixed into the preparation. Natural vanilla gives a brownish to yellowish colour to preparations, depending on concentration.
A tasteless, odorless substance that is essential to all known forms of life and is known as the universal solvent . It appears colorless to the naked eye in small quantities.
Muscovado
A type of unrefined sugar with a strong molasses flavour. It is also known as Barbados or moist sugar. It is very dark brown in color, and slightly coarser and stickier than most brown sugars. . It offers good resistance to high temperatures and has a reasonably good shelf life. The unrefined sugar goes well with coffee and other beverages, and was one of the most prominent export commodities of the Philippines in the 1800s.
Gelatine
A polymer made up of subunits of the sugar galactose; it is a component of the algae’s cell walls. Dissolved in boiling water and cooled, becomes gelatinous. Product obtained from several species of red algae.
Cornflakes
A food made by combining cooked corn along with sugar and vitamins. The dough
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Cups Chocolate/Strawberry/Mango Syrups
is rolled and toasted to make the wellknown flakes, which feature as breakfast cereal. Drinking vessel made of plastic Flavorings are focused on altering or enhancing the flavors of natural food products. Most type of flavorings are focused on scent and taste creating flavor for food products that do not have the desired flavors.
The table below has a unit cost of 3, 600 of production. Raw Materials Soybeans
Source
Descriptions Quantity
Public Market
Sack
Sago
Public Market
Sack
Gelatine Straw
Supermarket Public Market
Pack Pack
Cups
New El Pack Bonito Commercial
12 oz – 50 pieces (72*28.50) 2,052.00
Syrup
Davao City
500ml for 50 cups (72*100)
Bottle
Cost (in pesos) 2,080.00
80 kilograms 50 1,900.00 kilograms 375 grams 110.00 400 pieces 202.50 of 29.50 (22.50*9)
7, 200.00
I. Utilities The proposed enterprise will have the electricity tapped at the lines provided by the Zamboanga City Electric Cooperative (ZAMCELCO) at Barangay Canelar. On the other hand, water supply will be sourced from the pipes of the Zamboanga City Water
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District. And telecommunication lines will be tapped from Philippine Long Distance Telephone Company (PLDT). •
See yearly expense in utilities in the next page.
J. Waste Disposal All waste materials such as soybean pulp and soybean skin are being collected by the garbage collector from the plant. Alternatively, soybean pulp and skin may be used as fertilizer or can be thrown into a compost pit. And also septic tanks will be provided for other purposes so as to maintain cleanliness in the surroundings. In Minpro Citimall, waste will be collected by Minpro’s maintenance staff every 7 pm.
K. Product Cost •
See product cost per cup of taho in the next page.
L. labor Requirements In the production process, two laborers- cook and helper are only needed. The two will work from 1- 5 am. On the distribution process, Jam-me Flavored Taho will be needing two laborers. They are required to work from 9:00 am to 6:30 pm. One of the owners will be part of the distribution process and would act as a cashier for safety purposes. He/ she is mandated to work from 9:00 am to 6:30pm.
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III. Management Aspect
Name and Type of Business Organization The name of the organization is “Jam- me Flavored Taho”. It is to be formed under a partnership owned and operated by Vanessa Joy R. Delatado and Robert Louie C. dela Paz. Organization Structure
Manager
Accountant
Cook
Crew and Helper
In the organizational structure, there is no need for staff authority because the command comes generally all from the manager.
Officers and Key Personnel 1. Manager Job Descripton: who is also one of the owners, oversees and controls the entire operations of the business. As regard to his employees, he has the following duties:
Recruitment, selection and placement of employees
Administration of organization wage, salary program, benefit scheme and compensation program
Formulation of policies on activities geared towards employee welfare, motivation and work
Receptionist – who entertains customers and would be distributor regarding their
inquiries on the services offered by the
organization.
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Cashier – who transacts with the customers and would be distributor.
Final quality inspector – who makes sure that their products are clean and presentable.
Job Specification:
2.
A graduate of any business related course
With managing experience
Can handle multi-tasking
Has a good personality
Accountant
Job Description:
Records the transaction
Maintains and keeps the accounting records
Prepares the payment for lease, maintenance and other fess
Prepares a financial report of the operations of the business.
Since he is one of the owners, he prepares and formulates marketing strategy for the company.
Supervises the production and distribution process of the taho
Job Specification:
BS Accountancy graduate
Computer literate
Female, At least 21 years old
With pleasing personality
Have at least 1 year work experience as a bookkeeper or Accountant
3.
Cook
Job Description:
In-charge of the entire production and cooking process of taho
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Trains the helper with regards to the cooking process of taho
Checks the quality and presentation of the product
Job Specification:
Male, at least 25 years old
Must be a high school graduate
Must know how to cook taho
Must have 2-4 years of work experience as a taho cook
Must be physically fit and with no ailments to ensure the safety of the taho
4. Helper Job Description:
Assists the cook in the production and cooking process
In-charge in the transfer and distribution process of taho
Acts as a security personnel in the company’s facilities Acts as a janitor who keeps the cooking and distribution areas
clean and tidy
Keeps the utensils, equipments and distribution carts clean and in good condition.
Job Specification:
Male, at least 25 years old
Must be a high school graduate
Willing to stay within the plant site premises 24-hours
Must have a good moral character
Must be capable of fixing minor mechanical problems and other minor damages in the office
Must be physically fit and with no ailments to ensure the safety of the taho.
5. Jam-me Crew (at least 2)
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Job Description:
Who will assist the manager in the stall
helps in the selling process of the product
Job Specification:
Male, at least 23 years old
Must have a good moral character
Must be a College graduate
With pleasing personality
Must be physically fit and with no ailments to ensure the safety of the product.
Recruitment Programs The manager considers different external sources that can be tapped for the purpose of recruitment:
Walk-in Applicants Applicants come unsolicited and are given personally or are sent by
mail by casual applicants.
Employment Agency The recruitment for cook and helper is through employment agency.
General Public The manager pays for announcements of workers needed, which is
to be found in local newspapers. Since print advertisements reach more people than other media like radio and television which are very costly.
•
Screening and Selection The manager sifts the good applicants from the host of recruits, and chooses the best among the screened applicants.
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The initial phase consists of the use of the resume of the applicants which provided the manager the socio-demographic information (gender, age, personality check, etc) about the applicant. Then a preliminary interview is conducted. The applicants who pass the preliminary interview will be further screened. Applicants for the workers, the manager will consider the physical capability of the applicants, he must be physically fit and must not have any ailments.
•
Placement of employees Orientation for new employees is to be made regarding the vision, mission, and objectives of the organization and as well as the employees’ respective duties and responsibilities. This is to give assistance to the newly hired employee/s in adjusting to the new work environment. No recruitment process will be made regarding the position of the Accountant, since one of the owners will be the Accountant of the organization.
Training Program In every organization, human resources development is an important task that ensures individual progress through continued job proficiency. For the organization’s accountant, non-formal training can be undertaken. This consists of seminars to upgrade her knowledge and expertise. She will attend one seminar a year. For the helper, he will be trained regarding the preparation and cooking process of taho, so that whenever the cook retires or is absent, he can replace or substitute him. On-going training will be done during the working hours. And as for the cook, there will be no training program.
Compensation and other Benefits
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Different compensation packages are given to different tasks involved in the business. Salaries are to be distributed every 15 days of the month. The employee’s contribution to SSS and Phil health Insurance will be deducted from his salary. Since the accountant is one of the owners, no salary will be given to her. But the compensation or allowances will be given to her and to the manager.
Salaries and Wages Job Title Manager Accountant Cook Laborer 1 and 2 (Jam-me Crew) Plant Helper
Daily Wage (in Philippine peso)
Monthly Rate of Personnel (in Philippine peso)
215.00 200.00 200.00 195.00
48,000.00 77,400.00 42,000.00 40,950.00
150.00
31,500.00
5 Years Projection of Salaries and Wages (In Philippine Peso)
Job Title Manager Accountant Cook Laborer 1 and 2 (Jamme Crew) Plant Helper
2007 77,400.00 48,000.00 42,000.00 40,950.00
2008 77,400.00 48,000.00 42,000.00 40,950.00
2009 77,400.00 48,000.00 42,000.00 40,950.00
2010 77,400.00 48,000.00 42,000.00 40,950.00
2011 77,400.00 48,000.00 42,000.00 40,950.00
31,500.00
31,500.00
31,500.00
31,500.00
31,500.00
* Increase in salaries will be after five years. Job Title Manager Accountant Helper Total
No. of Employees
SSS Contribution
1 1 4 6
940.00 374.00 1,496.00 2,810.00
Phil Health Contribution 125 62.50 250.00 437.50
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Projected Annual Increase in SSS and Phil. Health Items SSS Phil. Health Total
2007 33, 720.00 437.50 34,157.50
2008 35,743.20 463.75 36, 206.95
2009 37,887.79 491.56 38,379.35
2010 40,161.06 521.07 40,682.13
2011 42, 570.72 552.33 43,123.05
a. Fringe Benefit “Jam- me Flavored taho” gives its employees additional incentives to motivate them to work more efficiently and effectively o achieve the organization’s goals and objectives. The following are fringe benefits:
Sick Leave Employees are granted sick leave with pay for 5 days per year to some unforeseeable circumstances accompanied by valid reasons. Leave benefits will be monetized if it is not utilized
Housing Privileges and Meal Allowances The helper will be given housing privileges and meal allowances, since he will be staying in the plant site 24hours. All employees will be given one bowl of taho everyday as part of the meal allowances.
Other Benefits The company will also grant other benefits such as the SSS, Phil health, and Insurance Policies.
a. Working Hours The workers will work four hours per day but will be paid for eight hours per day due to time differential. b. Office Hours The office will be opened from 5 o’clock in the morning until 5 o’clock in the afternoon, with lunch breaks in between. c. Business Policies
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The company must employ at least two (2) of employees for production to maximize optimum effectiveness. And, two (2) crews for selling process. The production of Taho must be on time so that there will be no delay and missed opportunities with regards to sales.
Project Cost In establishing a business enterprise, one must comply with certain government requirements in order for the business to operate smoothly. Shown below are the taxes and licenses to be paid to the following offices obtaining a business permit.
Taxes and Licenses ( in Philippine peso)
Fire Safety
51.00
Police Clearance
30.00
Barangay Clearance
10.00
Health Certificate
12500
Mayor’s Permit
1,370.00
DTI permit
500.00
BFAD Registration Fee
1,000.00
DOST reg. fee
500.00
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Project Schedule Project Timetable/ Gantt Chart Before starting to operate, Jam-me Flavored Taho has a lot of things to consider in order for the business to operate successfully, to wit:
Activities A. Obtaining Permits (Building, Business Permit and etc.)
5
10
15
Number of Days 20 25
B. Arrangement and cart design C. Interior arrangement of taho plant. D. Purchasing all utensils, furniture, appliances and supplies
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IV. Financial Aspect A. Major Assumption Since all projects are considered viable only when they are expected to be profitable to meet short-term obligations, to be liquid and to remain liquid during adversities, to grow in their ability to finance their operations mostly from net worth sources rather than credit applications, and to be able to service their financing charges, the financing aspect is very important in a feasibility study. •
The depreciation expense for the property, plant, equipment and tools is derived by using the straight- line method of depreciation.
•
All prices are based on the year 2007 and these are projected until the fifth year of operation of the proposed enterprise.
•
All products are considered sold at the end of every fiscal year.
B. Total Project Cost All entities at its beginning period must allocate funds for its beginning budget capital. Here are the following costs that Jam-me Flavored Taho will incur during its first establishments. Machinery and Equipment Furniture and Fixture Leasehold Improvements Total
Php. 144, 703.00 13, 751.50 178,910.50 337,365.00
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C. Source of Financing the Project The project for Jam-me business will be funded 100% by the owners. Be it in a form of credit or not, the owners are held responsible of all expenses for the project from the Php500,000.00 investment capital. All the investments are fairly shared by the owners from their own pocket.
D. Five Year Projected Financial Statements •
See Financial Statement on the next page
E. Financial ratio Analysis •
Refer to next page
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V. Socio- Economic Aspect The proposed enterprise if implemented will provide another income generating opportunity for the proponents. It will be considered a new business activity in the community and an addition to those that are already existed (Taho peddlers). It is probable that the proposed enterprise will help improve the lives of the proponents and increase employment rate. The establishment (Jam-me Flavored Taho) of the proposed enterprise may promote the growth of the food industry in the city. The venture in this kind of business remains promising. The project does not only generate profit but also an aid in social and economic benefits. Thus, the project helps to contribute in improving the standard of living and community development. It also provides employment and is a food for great preference to rich and poor people.
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