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Colegio De San Juan De Letran College of Business istration and ancy

Colegio de San Juan de Letran Intramuros, Manila

A Feasibility Study on Vegetable Delights

In Partial Fulfillment of the Requirements for the degree of Bachelor of Science in Business istration major in Entrepreneurship Presented to the faculty of College of Business istration and ancy (CBAA)

Presented by: Tino-Paolo T. Andaya Ryan Jude G. Ponce

March 2009

1


TABLE OF CONTENTS Title

Page

ACKNOWLEDGEMENT CHAPTER I – Summary of The Project A. Name of the Firm B. Location C. Brief Description of the Project D. Project Summary Marketing Aspect Technical Aspect Management Aspect Financial Aspect Socio-Economic Aspect

4 5 5 5 6 7 7 7 8 8 9

CHAPTER II – Introduction/Background of the Study Objectives of the Study Operational Definition of Scope and Limitation of the Study

10 10 11 12

CHAPTER III – Market Study Objectives of the Study Methodology Demand & Supply Analysis/Gap Projected Sales/Market Share Marketing Strategies

13 13 14 16 21 25

CHAPTER IV – Technical Study Objectives of the Study Uses of the Product Process Flowchart Description of the Process Production Schedule Material Balance Production Capacity Raw Materials Equipment / Other Materials Plant Layout & Location Direct Labor Requirements Utilities Waste Disposal

28 28 28 29 33 35 38 42 44 45 46 49 49 49

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CHAPTER V – Mangement Study Objectives of the Study Form of Busines Organization Capitalization Organizational Structure Organizational Policies Job Requirements & Compensation Legal Requirement Gantt Chart

50 50 50 51 51 53 60 62 63

CHAPTER VI – Financial Study Objectives of the Study Total Project Cost Capitalization Sources of Financing Assumptions Financial Statements Financial Statement Analysis

64 64 64 65 65 66 67 68

CHAPTER VII – Socio-Economic Aspect Contribution to Phil. Economy Employment Generation Desirability

70 70 71 72

Appendices

72

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ACKNOWLEDGEMENT

We would like to thank all the people who made our feasibility study well-crafted and improved. The Lord God for all His blessings, guidance and the gift of knowledge to this study. Mr. Raem Mendoza, our RM1 and RM2 professor, for all his untiring suggestions and s on our research. Mrs. Liza Belmonte, our chairman, for the suggestions and comments for the help of improving our work. Mr. Henry Junio, our only one adviser, for all the suggestions, improvements, revisions and encouragement for us to make our feasibility study successful. and to the EN4A blockmates for all the and suggestions that makes our study well-improved.

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CHAPTER I Summary of the Project

A. Name of the Firm “Protolife”

is derived from the Greek/Latin word “proto” meaning

“first” ; and “pro-to-life” meaning “first to life”.

The very reason why the

company is named “Protolife” because the firm’s topmost concern is to promote life itself through offering products mixed with vegetables, and is represented by the brand name Vegelights (Vegetable Delights) products.

B. Location The head office/factory is located in one of the proponent’s residence in 42 Red St., Goodwill 2 Subdivision, Brgy. BF Homes, Sucat, Paranaque City. Processing functions will take place in the spacious 20 square meter sized kitchen area of the residence. The actual stall/outlet is given for free to the proponents by a relative, in which it will be for the products to be sold and distributed, located in Dr. A. Santos Avenue, Brgy. BF Homes, Sucat, Paranaque City, wherein, it is accessible by all means of public and private transportations.

5

Colegio De San Juan De Letran

6

College of Business istration and ancy

C. Brief Description of the Project The

proposed

business

will

focus

on

producing

well-known

homemade delicacies and transform such into vegetable-mixed products namely:

dried and sweetened vegetables (kamote and gabi), vegetable

polvoron (carrots, malunggay and kamote flavors),

vegetable pastillas

(papaya, malunggay and squash flavors) and vegetable pancake (kangkong and malunggay flavors). All these variety of products on a homemade style. Protolife gave the brand name of Vegelights for the goods that will be produced. The firm aims to start reaching out to young people, instilling them that vegetables can be mixed to well-known delicacies, in more chewable form. The main target market of these products are male and female, ages 5 and above, living within the households of Barangay BF Homes and neighboring schools and establishments in the said barangay in Paranaque City. In this partnership form of business organization, financial investments will focus on the basic ingredients and materials to be needed in the process like flour, butter, sugar, eggs, milk (condensed, evaporated and powdered); and the vegetable ingredients such as: kangkong, malunggay, kamote, papaya, gabi, squash and carrots; salaries and wages to workers, business registrations, supplies, equipment, machinery and expenses on utilities. The firm will be hiring four (4) additional workers in the production system.


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D. Project Summary

Marketing Aspect The products’ target market are male and female, ages 5 and above, living within the households and neighboring schools and establishments within Barangay BF Homes in Paranaque City. The distribution process of the products will be from the producer to the consumers. At the start of operation, promotional measures will be done by making and distributing product brochures/leaflets within the location or the households, or whoever es by within the location. The firm would also formulate expansion plans by becoming a concessionaire to groceries and supermarkets, and by ing exhibits to also promote its products. Technical Aspect Since the firm is just starting, its rundown for the additional number of manpower/labor aside from the two proponents are four (4).

The four

workers will be assigned on each products: pastillas, polvoron, dried & sweetened and pancake.

The main vegetable ingredients to be used in

these products are the following: kangkong, malunggay, squash, papaya, kamote, gabi and carrots. There will be only few materials/equipments to be used in the production like the hand-held mixer and the basic utensils such as mixing bowls, peeler, polvoron molder and beater.

Packaging for the

products are transparent cellophane wrappers for clear appearances of these vegetable-mixed food products and clear plastic wrappers.


8


Management Aspect Protolife is a partnership form of a business organization, headed by two (2) partners. Mr. Tino-paolo Andaya as the company’s general manager, and Mr. Ryan Jude Ponce as the assistant general manager. As a starter, there will be four (4) additional workers, as mentioned and described in the technical aspect.

The organizational structure will be from the general

manager, to the assistant general manager, to the supervisor and down to the workers. specifications,

Each of the workers needs to possess the firm’s required qualities

and

requirements

in

order

to

be

hired.

Organizational costs of the firm will be derived from various business registration fees, namely on: Securities & Exchange Commission (SEC), Department of Trade & Industry (DTI), Bureau of Internal Revenue (BIR) and the local municipal hall for mayor’s permit and other business licenses. There will be some pre-operating activities to be undertaken such as business registration for the legality of its existence, hiring and labor orientation. Financial Aspect The parents of the proponents gave them an equal amount of money and they decided to invest it in this business venture. It will also serve as their initial capitalization and source of funds for the project. The amount already covers registration fees for the business organization, utilities, salaries and wages and other production cost; the amount also includes a contingency fund for the business. On the financial study, there will be a 5year projected income statement, cash flow statement, balance sheet and financial statement analysis.


Socio-Economic Aspect The firm would be able to contribute to government through taxes derived from its sales. The consumers would benefit health-wise from its vegetable ingredients, than the usual diabetes-causing delicacies. The firm aims to promote its products through livelihood programs, at the same time, giving jobs for the unemployed.

9


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CHAPTER II Introduction/Background of the Study Brief Background of the Study Most goodies, especially delicacies being sold to the market today, are just plain simple sugary, strong-tasting and has food additives. Protolife is producing products named Vegelights (in short for Vegetable Delights) in order to be unique and innovative in of the usual sweets.

Young

people, mostly children, loves sweets such as polvoron and pastillas de leche because of its taste of being sweet and delicious.

The newly

established firm intends to promote and sell vegetable goodies, in more chewable and tasty form. The firm’s target market will be from 5 years old and above, male or female, living within the households and nearby schools and establishments in the barangay.

The firm will be using a lot of

vegetables, namely: kangkong, malunggay, gabi, papaya, kamote, squash and carrots. The reason why the company chose these vegetables is because they are easy to acquire from local wet markets or groceries near the factory, and also because of their very strong health benefits. Mostly, these choice vegetables possess Vitamins A, B, C, E, K and Potassium contents. Objectives of the Study •

To be able to describe the business proposal.

•

To be able to determine if the business is viable.


•

To be able to find out whether to pursue this business in the near future or not.

Operational Definition of Contingency Fund – A reserve set aside against unforeseen expense. Delicacy – The quality of being delicate. Something pleasing and appealing, especially a choice food. Direct Labor – These are wages or salaries given to the workers who directly produces or manufactures the finished product or goods. Direct Materials – These are the raw materials that are traceable to the finished product. Manufacturing – It is the process of converting raw materials into finished products. Organization – Group of people working to achieve common goals. Overhead – These are non-labor, indirect manufacturing expenses such as utilities, supervisor’s salaries, property tax, rent, gas and oil, etc. Pre-Operating Activities – These are set of activities that has to be undertaken before the actual operation sets in. Target Market – The group or area of concentration for the selling of the products; the potential buyers.

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Technical - Relating to the technique or proficiency in a practical skill. Scope and Limitation of the Study This project study will be focusing only on producing vegetable food products namely:

vegetable pancake, dried and sweetened vegetables,

vegetable pastillas and vegetable polvoron with the use of these following vegetables:

kangkong, squash, malunggay, gabi, kamote, papaya and

carrots. This study will also limit on the five (5) major aspects of a feasibility study: Management, Marketing, Technical, Financial and Socio-Economic aspects.

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CHAPTER III Market Study

Objectives of the Study •

To be able to develop good marketing strategies for the business using the 4 P’s in marketing.

•

To be able to determine the demand and supply situation for the past five (5) years.

•

To be able to identify the consumer public’s taste and preferences with regard to the product that will be sold.

•

To be able to determine the pricing strategy of the business.

•

To be able to give projections on the product’s future demand and supply situation, and its sales for the next five years.

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Methodology The proponents used indirect method as its main methodology in gathering data. Indirect method is by giving out survey questionnaires within the location to determine the preferences of the consumer public on an existing related product. To be able to determine the number of sample respondents, the firm used the Slovin formula.

The computation is as

follows: where: n = sample size N = total population

n=

N______ 1 + N (e)2

1 = constant number e = margin of error

Under this observation, the proponents acquired a census of Paranaque City from the National Statistics Office (NSO) since it is already the actual number of population for the year 2007.

Under the city of

Paranaque, the area of dispersion of the products is in one of its most populous barangays, the Barangay B.F. Homes which has 80,316 total population.

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SURVEY QUESTIONNAIRE Name (Optional)_________________

Age______

Sex_______

1. Do you eat delicacies ? __ Yes __ No 2. What delicacy do you usually buy? __ Pastillas __ Dried and Sweetened Fruits __ Polvoron __ Others (pls. specify) 3. Where do you usually buy delicacies? __ Pasalubong Stalls __ Local Grocery/Supermarket (pls.specify)

__ Bakeshops __ Street Vendors

__others

4. How much do you spend per purchase? __ PhP 50 and below __ PhP 76 – 100 __ PhP 51 – 75 __ 101 and above 5. What flavors do you usually buy for the following delicacies? Pastillas: Polvoron: __ de Leche __ chocolate __ de Ube __ milky __ Others (pls. specify) __ others (pls. specify) Dried & Sweetened goods Pancake: __ Mangoes __ chocolate __ Coconut __ ordinary-flavored __ Others (pls. specify) __ others (pls. specify) 6. How often do you buy delicacies ? __ Most of the time __ Sometimes

__ Seldom

7. Are you aware of the vegetable-mixed delicacies such as vegetable pastillas, vegetable polvoron, dried & sweetened vegetables and vegetable pancake? __ Yes __ No 8. Are you willing to try our delicacies? __ Yes __ No

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9. If the product is already available in the market, will you have the intention to purchase it? __ Definitely will buy __ Will buy __ Definitely will not buy Thank you very much and God bless you!

Demand & Supply Analysis/Gap Historical Demand Table 3.1 Year

Competitor

2004 2005 2006 2007 2008*

37,964 38,739 39,530 40,337 41,160 Source: Sasmuan Delicacies, Paranaque City (* - Estimated Value)

Computation for Historical Demand: Year 2008

42,000 x .02 = 840 42,000 – 840 = 41,160

Year 2007

41,160 x .02 = 823.2 41,160 – 823.2 = 40,337

Year 2006

40,337 x .02 = 806.74 40,337 – 806.74 = 39,530

Year 2005

39,530 x .02 = 790.6 39,530 – 790.6 = 38,739

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Year 2004

38,739 x .02 = 774.78 38,739 – 774.78 = 37,964

Projected Demand Table 3.2 Year

Demand

2009 2010 2011 2012 2013

41,959 42,758 43,557 44,356 45,155 Computation for Projected Demand: To be able to compute for the projected demand, use the Arithmetic

method. Yn stands for final value and Yc stands for the initial value of the historical demand. Then, the difference of the two will be divided from a constant value, n – 1 (5 – 1) which is 4. This method also applies to historical supply and projected supply.

A = Yn - Yc n-1 A = 41,160 – 37,964 5–1 A = 3,196

= 799

4 Year 2009

41,160 + 799 = 41,959

Year 2010

41,959 + 799 = 42,758

Year 2011

42,758 + 799 = 43,557

Year 2012

43,557 + 799 = 44,356

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Year 2013

44,356 + 799 = 45,155

Historical Supply Table 3.3 Year

Competitor

2004 2005 2006 2007 2008*

30,372 30,992 31,624 32,269 32,928 Source: Sasmuan Delicacies, Paranaque City (* - Estimated Value)

Computation for Historical Supply Year 2008

33,600 x .02 = 672 33,600 - 672 = 32,928

Year 2007

32,928 x .02 = 658.56 32,928 – 658.56 = 32,269

Year 2006

32,269 x .02 = 645.38 32,269 – 645.38 = 31,624

Year 2005

31,624 x .02 = 632.48 31,624 – 632.48 = 30,992

Year 2004

30,992 x .02 = 619.84 30,992 – 619.84 = 30,372

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Projected Supply Table 3.4 Year

Supply

2009 2010 2011 2012 2013

33,567 34,206 34,845 35,484 36,123

Computation for Projected Supply: A = Yn - Yc n-1 A = 32,928 – 30,372 5–1 A = 2,556

= 639

4 Year 2009

32,928 + 639 = 33,567

Year 2010

33,567 + 639 = 34,206

Year 2011

34,206 + 639 = 34,845

Year 2012

34,845 + 639 = 35,484

Year 2013

35,484 + 639 = 36,123

Demand & Supply Gap Analysis

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20


Year

Demand

Supply

Gap

2009 2010 2011 2012 2013

41,959 42,758 43,557 44,356 45,155

33,567 34,206 34,845 35,484 36,123

8,392 8,552 8,712 8,872 9,032

The demand and supply gap analysis is executed by subtracting the projected demand and projected supply of each respective years of projection.

Projected Sales Year 2009


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Product

Annual

Units Sold

Selling Price

Sales

Capacity Malunggay

31,200

28,080

PhP 9.90

PhP 277,992

Pastillas Squash Pastillas Papaya Pastillas Carrot Polvoron Malunggay

31,200 31,200 24,960 24,960

28,080 28,080 22,464 22,464

9.90 9.75 12.90 12.60

277,992 273,080 289,786 283,046

Polvoron Kamote Polvoron Dried Kamote Dried Gabi Kangkong

24,960 15,600 15,600 9,360

22,464 14,040 14,040 8,424

12.60 17.10 17.10 32.85

283,046 240,084 240,084 276,728

Pancake Malunggay

9,360

8,424

32.85

276,728

Pancake

Total

PhP 2,718,566

Year 2010 Product

Annual

Units Sold

Selling Price

Sales

Capacity Malunggay

34,320

30,888

PhP 10.90

PhP 336,679


34,320 34,320 27,456 27,456

30,888 30,888 24,710 24,710

10.90 10.75 14.20 13.90

336,679 332,046 350,882 343,469


27,456 17,160 17,160 10,296

24,710 15,444 15,444 9,266

13.90 18.80 18.80 36.15

343,469 290,347 290,347 334,966

Pancake Malunggay

10,296

9,266

36.15

334,966

Pancake

Total

PhP 3,293,850

Year 2011 Product

Annual

Units Sold

Selling Price

Sales


22


Capacity Malunggay

37,752

33,977

PhP 12

PhP 407,724


37,752 37,752 30,264 30,264

33,977 33,977 27,238 27,238

12 11.85 15.65 15.30

407,724 402,627 426,275 416,741


30,264 19,032 19,032 11,232

27,238 17,129 17,129 10,109

15.30 20.70 20.70 39.80

416,741 354,570 354,570 402,338

Pancake Malunggay

11,232

10,109

39.80

402,338

Pancake

Total

PhP 3,991,648

Year 2012 Product

Annual

Units Sold

Selling Price

Sales

Capacity Malunggay

41,496

37,346

PhP 13.20

PhP 492,967


41,496 41,496 33,384 33,384

37,346 37,346 30,046 30,046

13.20 13.05 17.25 16.85

492,967 487,365 518,294 506,275


33,384 20,904 20,904 12,480

30,046 18,814 18,814 11,232

16.85 22.80 22.80 43.80

506,275 428,959 428,959 491,962

Pancake Malunggay

12,480

11,232

43.80

491,962

Pancake

Total

PhP 4,845,985


23


Year 2013 Product

Annual

Units Sold

Selling Price

Sales

Capacity Malunggay

45,552

40,997

PhP 14.55

PhP 596,506


45,552 45,552 36,816 36,816

40,997 40,997 33,134 33,134

14.55 14.40 19 18.55

596,506 590,357 629,546 614,636


36,816 23,088 23,088 13,728

33,134 20,779 20,779 12,355

18.55 25.10 25.10 48.20

614,636 521,553 521,553 595,511

Pancake Malunggay

13,728

12,355

48.20

595,511

Pancake

Total

PhP 5,876,315

Projected Sales Year

Projected Sales

2009 2010 2011 2012 2013

PhP 2,718,566 PhP 3,293,850 PhP 3,991,648 PhP 4,845,985 PhP 5,876,315

** These are based on assumption that for each products, 90% units are sold and 10% are left unsold. ** There will be a ten percent (10%) increase on production capacity/output on each products every year. ** Selling price of each products will increase by ten percent (10%) every


year.

Marketing Strategies Product The product’s name will be Vegelights, in short for Vegetable Delights, beause all of the delicacies are mixed with various vegetables, such as: Dried & Sweetened Kamote, Dried & Sweetened Gabi; Carrot Polvoron, Malunggay Polvoron, Kamote Polvoron; Pastillas de Papaya, Pastillas de Malunggay, Squash Pastillas; Kangkong Pancake and Malunggay Pancake. Product Category The products that will be sold are food, and falls under delicacies, for they are choice food. Brand

PROTOLIFE ENTERPRISE

24


25


42 Red St., Goodwill 2 Subd., Sucat, Paranaque

healthy eating at its fullest … PROTOLIFE ENTERPRISE 42 Red St., Goodwill 2 Subd., Sucat, Paranaque 826-9023/826-9024 VEGELIGHTS DELICACIES Packaging The packaging for the products will be cellophane wrappers for inidivual pieces of the products.

Price The price of the products will depend on the production costs. Things to consider in coming up with a certain pricing are production costs, namely: direct materials, direct labor and other indirect expenses.

The total

production costs will be divided into how many has been produced to come up with unit cost, then add a mark-up. The firm chose 80% mark-up to cover other expenses. The capacity of units produced per day will be discussed in Chapter 4. Product

Direct

Cost

of

Overhead

Yield

Mark-Up

Selling

Carrot

Materials PhP 4,030

Labor PhP 7,000

PhP 3,750

2,080

(80%) 80%

Price PhP 12.90

Polvoron Malunggay

PhP 3,666

PhP 7,000

PhP 3,750

2,080

80%

PhP 12.60

Polvoron Kamote

PhP 3,796

PhP 7,000

PhP 3,750

2,080

80%

PhP 12.60

Polvoron Malunggay

PhP 3,198

PhP 7,000

PhP 3,750

2,600

80%

PhP 9.90


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Pastillas Squash

PhP 3,510

PhP 7,000

PhP 3,750

2,600

80%

PhP 9.90

Pastillas Papaya

PhP 3,302

PhP 7,000

PhP 3,750

2,600

80%

PhP 9.75

Pastillas Dried

PhP 1,456

PhP 7,000

PhP 3,750

1,300

80%

PhP 17.10

Kamote Dried Gabi Kangkong

PhP 1,456 PhP 3,484

PhP 7,000 PhP 7,000

PhP 3,750 PhP 3,750

1,300 780

80% 80%

PhP 17.10 PhP 32.85

Pancake Malunggay

PhP 3,484

PhP 7,000

PhP 3,750

780

80%

PhP 32.85

Pancake

Place The location site of the factory and the store outlet is good enough in its area because it is near to the wet market and grocery, wherein, those are the places for acquisition of raw materials and equipments in production, and many people goes in and out everyday, including ers by. Channel of Distribution: ( 0 – Level )

PRODUCER



CONSUMER

Promotion Leaflets and brochures regarding the products will be disseminated on the actual day or before the actual day of operations. Basically, those product leaflets and brochures contains vital information regarding the product, its strong benefits and its difference among the sweets and delicacies in the


market today. The cost of signboard for the firm is PhP 250.

CHAPTER IV Technical Study


To be able to identify the direct and indirect materials needed for production.

•

To be able to identify the cost of each materials needed.

•

To be able to give a production schedule/capacity per day.

•

To be able to determine the production cost for each goods.

•

To be able to identify the equipments needed.

Product Description The products that will be sold are food delicacies, in which there are vegetable pieces mixed inside it, to form a healthy and delicious choice food. Uses of the Product

27


Most people make delicacies as their deserts after meals. Delicacies are also ideal for snack time because it is a choice food, and it is pleasing to the taste buds. Therefore, Vegetable Delights makes a very healthy snack and delicacy. Process Flowchart

Peeling of each of the 3 vegetables ( 5 minutes )

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Boiling of the vegetables ( 5 minutes each )

Slicing each vegetables w/ kitchen knife.

Combine the powdered milk and condensed milk using mixing bowl. Temporarily store all finished pastillas in the cold storage for 1 day. Combine everything in a mix bowl

Using a hand-held mixer, mix everything until firm. ( 20 mins. )

After mixing, turn all the mixtures in a round plate for rolling.

Wrap each pieces using a cellophane wrapper.

Slice each rolled mixtures into small pieces.

B. Vegetable Polvoron ( will be done on working table # 2 )

Peeling of 3 vegetables involved. ( 5 minutes )

29


Boiling of all the vegetables involved. ( 5 minutes each )

Slice each boiled vegetables

Toast the flour in a pan for 15 minutes.

Wrap everything in a cellophane wrapper.

Stirring of flour ( 15 minutes )

Mash each vegetables

Add mixtures of flour, powdered milk, butter and sugar in a mixing bowl.

Temporarily place each molded ones in an airtight container and place it in the refrigerator.

Using a moulder, put all the mixtures to each spots.

C. Dried and Sweetened Vegetables ( will be done on working table # 3 ) Peeling of kamote and gabi ( 5 minutes )

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Slice each kamote and gabi into strips

Boil the sliced vegetables

Prepare a plate and put all the pack of sugar

Spread sugar all over the sliced vegetables.

For 5 minutes, let kamote and gabi soak with sugar.

Prepare a screen board for drying

D. Vegetable Pancake

Each dried goods can now be packed in a clear plastic wrapper.

After 1 day, get all the dried vegetables and put it in a plate for packaging.

Leave the 2 vegetables on the clean screen board for one whole day either under the sun and on the night time. ( Overnight )

( will be done on working table # 4 ) Boil the vegetables involved. Kangkong and Malunggay separately. ( 5 minutes each )

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Put all the contents of a pack of flour in a mixing bowl.

Put the evaporated milk in a cup.

Mix all the ingredients together with the boiled vegetables.

Each cooked pancakes can now be packed on a clear plastic

Break a dozen of eggs in a separate bowl.

Combine everything in the first used mixing bowl.

Fry each pancakes on a pan for 3 minutes each.

Description of the Process Dried & Sweetened Kamote and Gabi: 1. Peel all the vegetables.

The pancakes now are ready to serve. Put all cooked pancakes in one huge plate.

Flip the pancake if one side is brown already.

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2. Slice a pack of kamote and gabi into pieces kitchen knife. .

3. By using a plate, place 3 cups of sugar to each pieces of each kamote and gabi. 4. Make sure the sugar reaches every corner, side of kamote and gabi. 5. Place the sugar-coated kamote and gabi under the sun to dry for one whole day in a clean screen board. 6. After a day, these vegetables are now ready to be be packed in a plastic wrapper and put it in a container. Squash, Papaya and Malunggay Pastillas: 1. Peel all the necessary vegetables. 2. Boil the squash, papaya, and malunggay for 3 minutes each on separate boiling water. 3. Combine 1 bar of butter, 1 can condensed milk and the powdered milk in a mixing bowl. 4. After 3 minutes, beat the boiled papaya, squash and malunggay separately until firm. 5. Combine the squash, papaya & malunggay with the 3 ingredients. 6. Using a hand-held mixer, mix all the ingredients until firm. 7. Turn the mixtures in a round plate for rolling into pieces. 8. After rolling, the rolled mixtures should now be sprinkled with a cup of sugar. 9. Each pastillas can now be wrapped in a cellophane that is cut into small pieces. Carrot, Malunggay and Kamote Polvoron 1. Peel all the necessary vegetables. 2. Boil each vegetables separately for 3 minutes. 3. On a pan, toast flour in a moderate heat for about 15 minutes,

33


or until light brown, stir constantly to avoid burning. 4. Remove the pan and transfer the mixture on a big bowl. 5. Mash each of the boiled vegetables. 6. Add the mixtures of powdered milk, sugar and melted butter for 5 minutes. 7. In a mixing bowl, add the mixtures and the separately mashed vegetables. 8. Using a moulder, put all the mixtures on each moulder. 9. Place the polvoron in a airtight container, chill in the refrigerator until firm. 10. Carefully wrap the polvoron individually in a cellophane wrapper. Squash, Kangkong and Malunggay Pancake 1. Peel all the necessary vegetables. 2. Boil each vegetables separately for 3 minutes. 3. Put the flour in a mixing bowl. 4. Put milk in a cup. 5. After boiling the vegetables, mash each separately on a bowl until firm. 6. Break the eggs in the bowl. 7. Combine the vegetables in a bowl together with the main ingredients. 8. Let the pancake mix cook about 5 minutes. 9. Flip pancake until top is brown. 10. Ready to serve and put in a plastic wrapper. Production Schedule The residential factory will operate from 9:00AM to 4:00PM, a total of seven (7) hours a day and twenty-six (26) working days a month.

34


Assignments of the four (4) workers: Worker Assigned

Product to be Produced

A B C D All workers

Vegetable Pastillas Vegetable Polvoron Dried & Sweetened Vegetables Pancake Packaging/Labelling of respective goods

Worker A // Vegetable Pastillas // Working Table No. 1 9:00am – 9:30am

Peeling of the vegetables

9:30am – 10:00am

Boiling of the vegetables separately

10:00am – 10:30am

Beating of each vegetables

10:30am – 10:45am

Combining of all ingredients.

10:45am – 11:00am

Mix everything (all the ingredients) until firm

11:00am – 11:30am

Turning the mixtures on a plate

11:30am – 12:00nn

Place everything on the island table for storage.

Worker A can produce 100 units each of papaya pastillas, malunggay pastillas and squash pastillas a day. See Material Balance. Worker B // Vegetable Polvoron // Working Table No. 2 9:00am – 9:30am

Peeling of necessary vegetables.

9:30am – 10:00am

Boiling of all the vegetables separately.

10:00am – 10:15am

Toasting of the flour in a pan for 15 minutes.

10:15am – 10:30am

Transferring of the flour to a mixing bowl.

10:30am – 10:40am

Mashing of all the vegetables.

10:40am – 11:00am

Combining and mixing all the main ingredients together with the vegetables.

11:00am – 11:30am

Using a moulder, put all the mixtures in a moulder.

11:30am – 11:40am

Place everything in an airtight container on the island table for storage.

35


Worker B can produce 80 units each of kamote polvoron, malunggay polvoron and carrot polvoron a day. See Material Balance.

Worker C // Dried & Sweetened Vegetables // Working Table No. 3 9:00am – 9:30am

Peeling of vegetables.

9:30am – 10:00am

Slicing each vegetables into thin cuts.

10:00am – 10:15am

Pour all the sugar on a round plate.

10:15am – 10:45am

Soaking of all the vegetables in the sugar for 1 hour.

10:45am – 11:00am

Put everything on the screen board for drying, leaving it overnight on the drying area.

Worker C can produce 50 units each of dried & sweetened kamote and gabi a day. See Material Balance.

Worker D // Vegetable Pancake // Working Table No. 4 9:00am – 9:30am

Boiling each vegetables separately.

9:30am – 9:40am

Pour all the flour in a mixing bowl.

9:40am – 10:00am

Pour evaporated milk in a cup.

10:00am - 10:15am

Mash each vegetables on a mixing bowl.

10:15am – 10:20am

Break the dozen of eggs in a bowl.

10:20am – 10:30am

Combine everything in a bowl, mix everything for 10 minutes until mixture is firm.

10:30am – 11:30am

Frying of all the pancake on a pan.

11:30am – 11:40am

Flipping of pancakes.

11:40am – 12:00nn

Put everything on the island table for temporary storage and packaging.

Worker D can produce 30 units each of kangkong and malunggay

36


pancake a day. See Material Balance. All Workers // Packaging // Island Table no. 2 Starting at 1:00pm, all workers should now pack all their produced goods on that day. Therefore, Worker A packs all pastillas products. Worker B packs all polvoron products. Worker C cannot yet pack dried & sweetened products, but on the next day already because of its overnight basis. Worker D packs all pancake products. Before 4:00PM, the factory and its materials should be cleaned, the packed products should now be inside the cold storage refrigerator, and garbages should now be utilizing proper waste disposal methods, recyclable and non-recyclable bins.

Material Balance Carrot Polvoron Quantity

Materials

400 g 200 ml 1 pack

All-Purpose Flour Sugar Carrots

37


350 g 1 whole 50 g

Powdered Milk Cellophane Wrapper Butter

This is good for 80 pieces of carrot polvoron.

Malunggay Polvoron Quantity

Materials

400 g 200 ml 1 bundle 300 g 1 whole 50 g

All-Purpose Flour Sugar Malunggay Powdered Milk Cellophane Wrapper Butter

This is good for 80 pieces of malunggay polvoron.

Kamote Polvoron Quantity

Materials

400 g 200 ml 1 pack 300 g 1 whole 50 g

All-Purpose Flour Sugar Kamote Powdered Milk Cellophane Wrapper Butter

This is good for 80 pieces of kamote polvoron.

Malunggay Pastillas Quantity

Materials

350 g 1 bundle 200 ml 330 ml 1 whole

Powdered Milk Malunggay Sugar Condensed Milk Cellophane Wrapper

This is good for 100 pieces of malunggay pastillas.

Squash Pastillas Quantity

Materials

350 g 1 half 200 ml 330 ml 1 whole

Powdered Milk Squash Sugar Condensed Milk Cellophane Wrapper

This is good for 100 pieces of squash pastillas.

38


Papaya Pastillas Quantity

Materials

350 g 1 pack 200 ml 330 ml 1 whole

Powdered Milk Papaya (shredded) Sugar Condensed Milk Cellophane Wrapper

This is good for 100 pieces of papaya pastillas.

Dried & Sweetened Kamote Quantity

Materials

2 packs 200 ml 1 pack

Kamote Sugar Plastic Wrapper

This is good for 50 pieces of dried & sweetened kamote.

Dried & Sweetened Gabi Quantity

Materials

2 packs 200 ml 1 pack

Gabi Sugar Plastic Wrapper

This is good for 50 pieces of dried & sweetened gabi.

Kangkong Pancake Quantity

Materials

1 bundle 400 g 330 ml 1 dozen 200 ml 1 pack

Kangkong All-purpose Flour Evaporated Milk Eggs Sugar Plastic Wrapper

This is good for 30 pieces of kangkong pancake.

39


Malunggay Pancake Quantity

Materials

1 bundle 400 g 330 ml 1 dozen 200 ml 1 pack

Malunggay All-purpose Flour Evaporated Milk Eggs Sugar Plastic Wrapper

This is good for 30 pieces of malunggay pancake.

40


Production Capacity Vegetable Pastillas ( all variants ) Year

Daily

Weekly

Annual

2009 2010 2011 2012 2013

100 110 121 133 146

600 660 726 798 876

31,200 34,320 37,752 41,496 45,552

Total

610

3,660

Vegetable Polvoron ( all variants ) Year

Daily

Weekly

Annual

2009 2010 2011 2012 2013

80 88 97 107 118

480 528 582 642 708

24,960 27,456 30,264 33,384 36,816

Total

490

2,940

Dried & Sweetened Vegetables ( all variants ) Year

Daily

Weekly

Annual

2009 2010 2011 2012 2013

50 55 61 67 74

300 330 366 402 444

15,600 17,160 19,032 20,904 23,088

Total

307

1,842

Vegetable Pancake ( all variants ) Year

Daily

Weekly

Annual

2009 2010 2011

30 33 36

180 198 216

9,360 10,296 11,232

41


42


2012 2013

40 44

240 264

Total

183

1,098

12,480 13,728

** There will be a ten percent (10%) increase on production capacity on each products every year.

Raw Materials Quantity

Materials

Price

Supplier

1 pack of 6’s 1 pack of 6’s 1 bundle 1 half 1 bundle

Kamote Gabi Kangkong Squash (big) Malunggay

PhP 10.00 10.00 5.00 17.00 5.00

Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market


43


1 pack of 3’s 1 pack 330 ml 350 g 400 g 200 ml 330 ml 1 bar (50g) 1 dozen 1 whole 1 pack

Carrots (long) Papaya (shredded)

Evaporated Milk Powdered Milk All-Purpose Flour Sugar Condensed Milk Butter Fresh Eggs Cellophane Plastic Wrapper

19.00 9.00 25.00 55.00 26.00 20.00 28.00 20.00 42.00 15.00 16.00

Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market Hi-way Wet Market

All of these raw materials are purchased from the Sucat Hi-Way Wet Market for the reason that it is very near to the factory and they always have fresh products. An inclusion also would be their affordable selling prices and it is very near to the factory, walking distance, no costly transportation expenses to be incurred.

Machinery & Equipments Quantity

Material/Equipment

Price

1

Refrigerator

PhP 12,500.00 PhP 12,500

Quantity

Material/Equipment

Price

1 (pack of 100s) 4 3 2 1 3 5

Polvoron Moulder Peeler Electric Mixer Beater Gas Stove Boiling Pan Mixing Bowl

PhP 70.00 PhP 80.00 PhP 150.00 PhP 50.00 PhP 450.00 PhP 120.00 PhP 100.00 PhP 1,020


Factory & Production Supplies Quantity

4 8 4 4

Material/Equipment

Price

Apron PhP 320.00 Hand Gloves PhP 120.00 Hair Net PhP 40.00 Gas Mask PhP 40.00 PhP 520 x 12 months purchase/use = PhP 6,240

Plant Layout The factory size is 20 square meters.

44


45


W

Equipment Table Area 4M

Cold

I

Storage

N

Cooking Area

W I

5M

N

Area

D

D

O

O

W

W

Island Table # 2 ( Packaging and Labelling area ) 6M

For Raw materials ready for processing 4M

Working Table #4

Island Table # 1

5M

( for finished products only ) 6M D O O R

Working Table #2

Working Table #1 5M

Garbage 1

Garbage 2

( Recyclable )

( Non – Recyclable )

5M

Working Table #3 5M

Garden Area

( serves as Drying Area for other delicacies )

Plant Location


First, the location map of Paranaque City.

The factory is located in one of the proponents’ residence which is located in # 42 Red Street, Goodwill 2 Subd., Sucat, Barangay BF Homes,

46


47


Paranaque City. Blue

Area of commercial sarisari and mini-grocery stores

Cocoon

HIDALGO’s

BENGGAL GROCERY

PLANT AREA UPSOUTH

( Protolife Ent. )

SCHOOL

Goodwill 2

Hyundai Motors

Subd., Pro-Log Philippines

IVR Motors and Machines

SKILL – POWER INSTITUTE

( entrance )

OSM Shipping

VEGELIGHTS LAPID’s Delicacies

Nego-Skwela

Outlet

To Sucat Hi-way Wet Market  To BF Homes, Paranaque & Medical Center P’que

Direct Labor Requirements

Chicharon


The firm will hire four (4) workers for the production system. Their roles would be, Worker A for the pastillas goods, Worker B for the polvoron goods, Worker C for the dried & sweetened goods, and Worker D for the pancake goods. They will be given a compensation of PhP 7,000 a month.

Utilities The residential factory will spend a total of PhP 3,750 for its utilities per month. Utility

Cost per month

Electricity Water LPG Tank

PhP 3,000 PhP 200 PhP 550 PhP 3,750 / month

Waste Disposal There is a regular garbage collection activity every night within the factory’s location.

Before 4:00PM, the factory’s wastes must now be

disposed on the designated garbage cans. The wastes that will be collected are mainly: skins of peeled vegetables, excess wrappers used in packaging, clattered and spilled ingredients, and the packages of used components in production.

CHAPTER V Management Study

48



To identify the type of organizational structure suited for the business.

•

To specify the form of business organization in relation to the numbers of partners and their respective contributions as well as their division of profits.

•

To enumerate the qualifications and requirements of personnel needed to fill the positions in the organization.

•

To indicate the management and organizational policies to be put into practice in the whole course of business.

Form of Business Organization The proponents have mutually agreed to have Partnership as the form of business organization. As stated in the law, this form of business organization is composed of two or more person binding themselves to pool their resources and funds to engage in the pursuit of a common business objective without necessarily organizing themselves into a corporation, upon which the law imposes a much higher form of regulation, limitation and standards. It is also deemed that the partners have full knowledge of the sharing of profits, even losses, even if it is silent. The partnership will be general partnership since both partners have come into agreement that that they will equitably share rights as well as the responsibilities entailed in business. Likewise, each partner assumes the full liability for the debts and obligations. Capitalization

49


As agreed by the partners, the partnership shall be a General Partnership. Each partner will give a sum of Php 500,000.00 each for a total of Php 1,000,000.00. This sum will serve as the total initial capital of the business. Partner Tino-Paolo Andaya Ryan Jude Ponce TOTAL

Amount Contributed PhP 500,000.00 PhP 500,000.00 PhP 1,000,000.00

Organizational Structure The two topmost levels are occupied by the General Manager and Assistant General Manager. These two positions are manned by the two general partners. The Assistant General Manager takes charge of the supervision and training of the four workers.

PROTOLIFE ENTERPRISE GENERAL MANAGER

50


51


ASSSISTANT GENERAL MANAGER

WORKER

WORKER

WORKER

WORKER

MISSION Protolife Enterprise is bound to provide high quality products that combine performance with value pricing while building relationship with our customers and clients VISION Protolife Enterprise envisions to be the primary preference of the market for delicacies and sweets while builds and maintains customer-oriented culture.


52


Organization Policies Selection of Employees: The selection of employees will be based on the specified qualifications and requirements stated. As a general rule, choice will also be based on the physical condition, experience, training, moral character and age as these points will surely affect the course of business. Screening procedure: All applicants should strictly follow the procedures listed below: -

Fill-up an application form, with 2x2 ID pictures, transcript of Record from the school attended and Good Moral Character if applicable, NBI clearance.

-

Initial interview by the Assistant General Manager

-

Applicants should take written exams prepared by the assistant general manager.

-

Physical Examination paper

-

SSS paper

-

Tax identification number/ Tax paper

Hiring procedure: The following listed are the procedures to be followed and implemented

in

hiring

of

employees:

Testing: It is presumed that an applicant who reaches this step has ed and


53


completed

the

necessary

requirements

and

examinations

aforementioned. Final Interview: An applicant who has undergone the testing is scheduled to have the final interview with the General Manager. The General Manager may, despite of the completion of requirements of the former, decide not to hire the applicants if he finds him/her unfit for the particular job. Training: Applicant/s should undergo briefing and training to better familiarize and understand themselves to the nature of their jobs. The training of the four workers will be headed and supervised by the Assistant General Manager.

Organizational Policies: Developing organizational policies is critical in every business as this will serve as the very framework of business. The business’ set of organizational policies encomes five sections namely: Personnel Records, 13th month pay, Attendance, Punctuality and Tardiness, Disciplinary Action and grounds in application of such disciplinary action. 13th month pay At the end of November each year, employees will be given their 13th month pay, equivalent to their monthly pay.


Personnel Records: All transaction and information with regards to the personnel shall be centrally kept by the General Manager.

The Assistant General

Manager, being the partner in the business, has also the right to access the records in the legal business time. Attendance A record of Personnel Attendance is essential as this serves as a basis for the merits, compensations and additional monetary remunerations of the employees. Working hours will be 8 hours from Monday to Friday. Punctuality/Tardiness In business organization, 8 (eight) working hours is being observed as per Labor Code of the Philippines. As the partnership, being an artificial being, drafted with the legalities prescribed by the law, this number of working hours should be strictly practiced with some exemptions which will be discussed in the succeeding paragraphs. Punctuality and Tardiness has the undeniable impact as this will reflect on the quality and productivity rate of the business. Therefore, all employees are expected to observe the corresponding working hours. The company shall issue Identification Cards and time cards to the employees. The ID will be the legal evidence that they are a member of the

54


firm. Upon reporting for work, they should punch the time cards or record their arrival/departure in the logbook/sheet. Disciplinary Action a) All employees must be familiarized with the company’s rules and regulations drafted from the Labor Code of the Philippines. Regardless of the position, each and everyone within the business is expected and required to follow the policies as it was drafted on the context of impartiality and justice prevailing the organizational framework of the business. The relationship among personnel should be in conformity with the established known norms of human conduct and behavior. b) The employee may, due to dishonesty, oppression, misconduct, negligence of duty, conviction of crime involving moral turpitude, notoriously disgraceful conduct, willful disobedience , violation of existing rules and some other reasonable directives as may be promulgated from time to time under Article 272 of the New Labor Code of the Philippines as a just cause for termination, impose on its erring disciplinary actions which consist of but not restricted to reprimand, supervision and dismissal from services as it may find commensurate with the gravity of offense or offenses committed.

Grounds for Disciplinary Action: The following are declared by the management to be grounds for disciplinary action. Thus, all employees are deemed to act within the context of organizational policies. 1. Habitual absence

55


2. Punching of other employee’s time card 3. Falsification of irregularities in accomplishing time records 4. Inefficiency and incompetence in the performance of the assigned task. 5. Abandonment of work / leaving office during office hours without consent or permission. 6. Loafing, loitering and sleeping during office hours. 7. Lewdness 8. Dishonesty/Discourtesy/Dishonesty/Insubordination or refusal to obey lawful orders. 9. Refusal to perform overtime or rest day work under any of the circumstances in Article 89&83 of the New Labor Code of the Philippines 10. Vandalism 11. Gambling and/or intoxication while on duty 12. Dereliction of duty, grave misconduct, negligence or carelessness in the performance of duty 13. Unauthorized possession of firearm or deadly weapon 14. Stealing of company’s and fellow employee’s properties through direct an indirect means 15. Unauthorized solicitation of business from company’ s customers 16. Withholding of company’s funds 17. Falsification of company’s records and documents, bringing home or outside the company’s premise without consent.

56


57


18. Fighting or provoking a fight within the company 19. Conduct prejudicial to the best interest of the service.

POSITION

General Manager

Required

Job

Numbers

Specification

1 (one)

-graduate any

JOB DESCRIPTION

4

of year-

Compensation (IN

-prepares

marketing

plan annually

course

-prepares

preferably

policies and regulations

Business

-formulates

istration

plans,

marketing

-has at least

strategies,

objectives

two

and programs

year

company long-range

managerial

-assures

experience

mission-vision

-has at least

congruent

one

operation and produces

year

of

organization’s with

is the

managerial

-implements

experience

ister

-has

strong

organizational policies

and

effective

communication skills -at

least

23

and

PESOS)

*deductable 22,000/mo


58


and above

Assistant

1(one)

-graduate any

General Manager

of

4-year

-prepares yearly budget -makes

course,

recommendations

preferably

policies and programs

Business

made by the General

istration

Manager

-has at least

-responsible for hiring

one

and

year

of

selection

for

of

managerial

employees needed to fill

experience

in the positions.

-has

-trains and supervises

strong

leadership skill

18,000/mo

the workers.

-possesses strong

and

effective communication skills -at

Worker

4(four)

least

23

and above -preferably

-prepares the necessary

High

ingredients.

School

graduate

-responsible in making

-has

the end-products

willingness

to

undergo training related to the nature of work

7,000 each/mo


-willing to shift works.

Position

Monthly Salary x

12 Total

months General Manager PhP 22,000 x 12 Assistant General PhP 18,000 x 12

PhP 264,000 PhP 216,000

Manager Workers (4)

PhP 7,000 each (28,000) PhP 336,000

TOTAL

x 12 PhP 81,000

PhP 816,000 per annum

Legal Requirements In conformity with the mandated law, the business shall comply with the mandated requirements to be secured and completed prior to the operation of business. Listed below are the various requirements as prescribed with corresponding legal costs. DTI Permit

PhP 500.00

Mayor’s Permit

8,000.00

SEC Registration

4,000.00

BIR Registration Community Permit

500.00 1,200.00

59


Sanitary Permit

100.00

Garbage Inspection Fee

700.00

TOTAL

PhP 15,000.00

60


61


CHAPTER VI Financial Study Objectives of the Study •

To be able to determine whether the firm gains a profit or a loss from it operations.

•

To be able to know the flow of finances within the business.

•

To determine the total project cost of the business.

•

To be able to find out the firm’s source of financing and other alternatives.

•

To determine the payback period of the venture.

Total Project Cost Machineries and Equipment Supplies

PhP 13,520 6,240

Permit and Licenses

15,000

Office Supplies / Equipment

22,000

Furniture and Fixtures Utilities Raw Materials Signboards Promotion Expenses Company IDs

3,300 45,000 376,584 250 1,000 70

62


TOTAL PROJECT COST

PhP 482,964

Initial Capitalization Partners

Contribution

Tino-Paolo Andaya Ryan Jude Ponce TOTAL

PhP 500,00.00 PhP 500,00.00 PhP 1,000,000.00

Source of Financing The firm’s main source of financing is their parents. Each proponents were given PhP 500,000.00 each in order to form part of their investment and capitalization for the business operations.

Alternative Sources of Financing Pawnshops, selling of personal properties, credit cooperatives, collaterals, non-government organizations and banking institutions.

63


Assumptions – Financial Statements ** INVENTORY From the annual production capacity output, there will be 10% unsold units, meaning, 90% of the units produced will be sold. ** PROJECTED SALES (are based on Chapter 3 – Market Study) ** CAPITALIZATION/CASH PhP 1,000,000 Derived from contributions of 2 partners: PhP 500,000 each. ** PRODUCTION CAPCITY There will be 10% production capacity increase every year. ** SELLING PRICE Selling price of each products will increase by 10% every year. ** DEPRECIATION Is computed by using the straight-line method. These fixed assets has lives of 5 years. ** SALARIES AND WAGES Increases 5% every two years. ** UTILITIES Increases 5% yearly.

64


** RAW MATERIALS The prices of raw materials increases 2% yearly. ** TAX STATUS For withholding tax purposes, these are the tax status of all the employees in Protolife Enterprise: General Manager

Married, no dependents

Asst. General Manager

Single

Supervisor

Married, no dependents

All the workers (4)

Single

** SUPPLIES There is a 5% increase every year. ** Value-Added Tax (VAT) rate is 12%. ** Income tax rate for a general partnership is 35%.

65


Financial Statement Analysis CURRENT RATIO Current Assets / Current Liabilities 2009 2,250,964 / 1,255,254 = 2010 3,675,035 / 2,633,873 = 2011 5,553,454 / 4,264,048 = 2012 8,100,726 / 6,205,084 = 2013 11,437,685 / 8,576,206 =

1.79:1 1.40:1 1.30:1 1.31:1 1.33:1

QUICK ASSET RATIO Gross Profit / Net Sales 2009 2,107,124 / 2,718,566 2010 2,434,367 / 3,293,850 2011 3,111,030 / 3,991,648 2012 3,922,493 / 4,845,985 2013 4,985,966 / 5,876,315

= = = = =

0.78% 0.74% 0.78% 0.82% 0.85%

PAYBACK PERIOD Net Income / Investment 2009 634,530 / 1,000,000 2010 845,452 / 1,000,000 2011 1,248,244 / 1,000,000 2012 1,806,236 / 1,000,000 2013 2,425,836 / 1,000,000

= = = = =

0.63 0.85 1.25 1.81 2.43

WORKING CAPITAL Current Assets – Current Liabilities 2009 2,250,964 - 1,255,254 = 2010 3,675,035 - 2,633,873 = 2011 5,553,454 - 4,264,048 = 2012 8,100,726 - 6,205,084 = 2013 11,437,685 - 8,576,206 = RATE RETURN ON SALES Investment / Net Income 2009 1,000,000 / 634,530

=

995,710 1,041,162 1,289,406 1,895,642 2,861,479

1.58

66


2010 1,000,000 / 845,452 2011 1,000,000 / 1,248,244 2012 1,000,000 / 1,806,236 2013 1,000,000 / 2,425,836 GROSS MARGIN RATE Net Income / Net Sales 2009 634,530 / 2,718,566 2010 845,452 / 3,293,850 2011 1,248,244 / 3,991,648 2012 1,806,236 / 4,845,985 2013 2,425,8367 / 5,876,315

= = = = = = = = =

1.18 0.80 0.55 0.41 0.23 0.26 0.31 0.37 0.41

DEBT RATIO Total Current Liabilities / Total Assets 2009 1,225,254 / 2,289,784 = 2010 2,633,873 / 3,713,855 = 2011 4,264,048 / 5,592,274 = 2012 6,205,084 / 8,139,546 = 2013 8,516,206 / 11,476,505 =

0.55% 0.71% 0.76% 0.76% 0.75%

QUICK RATIO Quick Assets / Current Liabilities 2009 1,948,822 / 1,255,254 2010 3,309,000 / 2,633,873 2011 5,109,993 / 4,264,048 2012 7,562,309 / 6,205,084 2013 10,784,713 / 8,576,206

1.55:1 1.26:1 1.20:1 1.22:1 1.26:1

= = = = =

67


CHAPTER VII Socio-Economic Aspect

1. To emphasize the importance of business and its role in the society 2. To describe the relevance of business in the government. 3. To stress the social responsibility the business should live by in consonance with its vision-mission. 4. To analyze the social desirability of the company.

Business has always recognized that it has an important role, alongside other actors, in the economic and social development of its communities. It is an integrated part of any society and is committed to operating in a responsible and sustainable manner. Along with doing business, social responsibility is taking into topmost concern. This aspect delineates the role of the business in the society and the means on how it will be of help to the social development. Five points will be stressed that the business aims to address in its pursuit in becoming an effective catalyst of development in the society.

Employment Generation Despite of its small nature, the business being in it start-up stage will recognize its responsibility in alleviating fast-growing unemployment rate. Specifically, the four lowest positions don’t have a rigid and complex requirement to be filled in. The business has decided not to require comprehensive requirements in these various positions to give opportunities to those who weren't fortunate enough to attain higher education.

68


Economic Contribution to the Philippine Economy The role of business in the economy is undeniably essential specifically, the small and medium enterprises or SMES. SMES in the Philippines comprise the very backbone of our economy as they generate income growth, stimulate spirit of entrepreneurship and innovation, promote expansion and diversification of markets, increase rate and investment base, alleviate threats for survival of the poor and promote of pluralist society. Thus, we can say that SME sector, specifically, serves as a crucial link to the seemingly incongruous paradigms of the growth-led development strategies. In line with this, our company opts to do business in assonance with the demands of the society. The business shall contribute in paying taxes on time. Health advocacy Compared to the existing delicacies offered today in the market, Vegelights offers an array of innovative products which make use of various vegetables as its main ingredient thus, giving a whole lot of meaning in eating delicacies. We don’t want people to center their delicacies solely on its taste, but on health benefits as well. Most vegetables that we use for our delicacies are found and proven to have health effective benefits. Legal Responsibilities As a partnership, we are bound to do business according to what the law mandates. Along with faithfully and religiously paying taxes, the business will strictly comply with the government’s rules and regulations in business practice. Some of the concrete examples are responsible waste disposal and environmental awareness. Rules set by the authority are required to abide by the company in a strict and disciplined manner. Ethical Responsibilities Congruent with practice of legal responsibilities, the company also fosters ethical responsibilities. The company will observe ethical standards as this marks societal beliefs of “good behavior”. This may be such as appropriate overtime remuneration for long hours or an "unofficial" punch-out time. Ethical responsibilities are voids in the legal system and allow firms to act with humanitarian values in mind.

69


70


Discretionary responsibilities will also be encouraged such as engaging into charity runs and outreach program

SALARIES & WAGES Position General

2009 22,000

2010 22,000

2011 23,100

2012 23,100

2013 24,255

Manager Assistant

18,000

18,000

18,900

18,900

19,845

Gen. Mgr. Supervisor Worker 1 Worker 2 Worker 3 Worker 4 TOTAL (Yearly)

13,000 7,000 7,000 7,000 7,000 81,000 972,000

13,000 7,000 7,000 7,000 7,000 81,000 972,000

13,650 7,350 7,350 7,350 7,350 85,050 1,020,600

13,650 7,350 7,350 7,350 7,350 85,050 1,020,600

14,333 7,718 7,718 7,718 7,718 89,305 1,071,660

2009 3,000 200 550 3,750

2010 3,150 210 578 3,938

2011 3,308 221 607 4,136

2012 3,473 232 637 4,342

2013 3,647 244 669 4,560

UTILITIES Utility Electricity Water LPG TOTAL

COST OF PRODUCTION Direct

2009 376,584

2010 384,120

2011 391,812

2012 399,744

2013 407,724

Materials Direct Labor Manufacturing

336,000 201,000

336,000 203,256

352,800 213,432

352,800 215,904

370,464 226,716

Overhead TOTAL

913,584

923,376

958,044

968,448

1,004,904

2010 1,590 1,590 1,362 738 738 738 738

2011 1,590 1,590 1,414 790 790 790 790

2012 1,590 1,590 1,414 790 790 790 790

2013 1,590 1,590 1,518 790 790 790 790

SSS CONTRIBUTIONS Position Gen. Mgr. Asst. Mgr. Supervisor Worker 1 Worker 2 Worker 3 Worker 4

2009 1,590 1,590 1,362 738 738 738 738


71


TOTAL

7,494

7,494

7,754

7,754

7,858

2011 575 450 325 175 175 175 175 2,050

2012 575 450 325 175 175 175 175 2,050

2013 600 475 350 175 175 175 175 2,125

PHILHEALTH CONTRIBUTIONS Position Gen. Mgr. Asst. Mgr. Supervisor Worker 1 Worker 2 Worker 3 Worker 4 TOTAL

2009 550 450 325 175 175 175 175 2,025

2010 550 450 325 175 175 175 175 2,025

PAG-IBIG CONTRIBUTIONS Position Gen. Mgr. Asst. Mgr. Supervisor Worker 1 Worker 2 Worker 3 Worker 4 TOTAL

2009 100 100 100 100 100 100 100 700

2010 100 100 100 100 100 100 100 700

2011 100 100 100 100 100 100 100 700

2012 100 100 100 100 100 100 100 700

2013 100 100 100 100 100 100 100 700

PURCHASES - RAW MATERIALS For Carrot Polvoron Material Flour Sugar Carrots Powdered

2009 26 20 19 55

2010 26.52 20.40 19.38 56.10

2011 27.05 20.81 19.77 57.22

2012 27.59 21.23 20.17 58.36

2013 28.14 21.65 20.57 59.53

Milk Butter Cellophane TOTAL Monthly

20 15 155 4,030

20.40 15.30 158.10 4,110.60

20.81 15.61 161.27 4,193.02

21.23 15.92 164.50 4,277

21.65 16.24 167.78 4,362.28

Malunggay Polvoron


72


Material Flour Sugar Malunggay Powdered

2009 26 20 5 55

2010 26.52 20.40 5.10 56.10

2011 27.05 20.81 5.20 57.22

2012 27.59 21.23 5.30 58.36

2013 28.14 21.65 5.41 59.53

Milk Butter Cellophane TOTAL Monthly

20 15 141 3,666

20.40 15.30 143.82 3,739.32

20.81 15.61 146.70 3,814.20

21.23 15.92 149.63 3,890.38

21.65 16.24 152.62 3,968.12

Kamote Polvoron Material 2009 Flour 26 Sugar 20 Kamote 10 Powdered Milk 55 Butter 20 Cellophane 15 Total/Monthly 3,796 Malunggay Pastillas

2010 26.52 20.40 10.20 56.10 20.40 15.30 3,871.92

2011 27.05 20.81 10.40 57.22 20.81 15.61 3,949.40

2012 27.59 21.23 10.61 58.36 21.23 15.92 4,028.44

2013 28.14 21.65 10.82 59.53 21.65 16.24 4,108.78

Material Malunggay Powdered Condensed Sugar Cellophane Total/Monthly

2009 5 55 28 20 15 3,198

2010 5.10 56.10 28.56 20.40 15.30 3,261.96

2011 5.20 57.22 29.13 20.81 15.61 3,327.97

2012 5.30 58.36 29.71 21.23 15.92 3,393.52

2013 5.41 59.53 30.30 21.65 16.24 3,461.38

2009 9 55 28 20 15 3,302

2010 9.18 56.10 28.56 20.40 15.30 3,368.04

2011 9.36 57.22 29.13 20.81 15.61 3,435.38

2012 9.55 58.36 29.71 21.23 15.92 3,504.02

2013 9.74 59.53 30.30 21.65 16.24 3,573.96

2009 17 55 28 20 15 3,510

2010 14.34 56.10 28.56 20.40 15.30 3,580.20

2011 17.69 57.22 29.13 20.81 15.61 3,651.96

2012 18.04 58.36 29.71 21.23 15.92 3,724.76

2013 18.40 59.53 30.30 21.65 16.24 3,799.12

Papaya Pastillas Material Papaya Powdered Condensed Sugar Cellophane Total/Monthly Squash Pastillas Material Squash Powdered Condensed Sugar Cellophane Total/Monthly


73


Dried & Sweetened Kamote Material Kamote Sugar Plastic Total/Monthly

2009 20 20 16 1,456

2010 10.20 20.40 16.32 1,485.12

2011 10.40 20.81 16.65 1,514.76

2012 10.61 21.23 16.98 1,545.18

2013 10.82 21.65 17.32 1,575.86

2010 10.20 20.40 16.32 1,485.12

2011 10.40 20.81 16.65 1,514.76

2012 10.61 21.23 16.98 1,545.18

2013 10.82 21.65 17.32 1,575.86

Dried & Sweetened Gabi Material Gabi Sugar Plastic Total/Monthly

2009 20 20 16 1,456

Kangkong Pancake Material Flour Sugar Kangkong Evaporated Butter Eggs Plastic Total/Monthly

2009 26 20 5 25 20 42 16 3,484

2010 26.52 20.40 5.10 25.50 20.40 42.84 16.32 3,553.68

2011 27.05 20.81 5.20 26.01 20.81 43.70 16.65 3,624.92

2012 27.59 21.23 5.30 26.53 21.23 44.75 16.98 3,701.88

2013 28.14 21.65 5.41 27.06 21.65 45.64 17.32 3,775.72

2010 26.52 20.40 5.10 25.50 20.40 42.84 16.32 3,553.68

2011 27.05 20.81 5.20 26.01 20.81 43.70 16.65 3,624.92

2012 27.59 21.23 5.30 26.53 21.23 44.75 16.98 3,701.88

2013 28.14 21.65 5.41 27.06 21.65 45.64 17.32 3,775.72

Malunggay Pancake Material Flour Sugar Malunggay Evaporated Butter Eggs Plastic Total/Monthly

2009 26 20 5 25 20 42 16 3,484

WITHHOLDING TAX


74


Position Gen. Mgr. Asst. Mgr. Supervisor Worker 1 Worker 2 Worker 3 Worker 4 TOTAL

2009 1,968.75 1,468.75 862.57 285.37 285.37 285.37 285.37 5,4412

2010 1,968.75 1,468.75 862.57 285.37 285.37 285.37 285.37 5,442

2011 2,110.93 1,581.25 927.57 311.62 311.62 311.62 311.62 5,866

2012 2,110.93 1,581.25 927.57 311.62 311.62 311.62 311.62 5,866

2013 2,284.18 1,699.38 1,010.38 339.22 339.22 339.22 339.22 6,351

VALUE-ADDED TAX (VAT) PAYABLE 2009 326,228

2010 395,262

2011 478,998

2012 581,518

2013 705,158

749 5,400 45,190

786 5,671 46,094

826 5,956 47,017

867 6,252 47,969

910 6,566 48,927

274,889 22,907

342,711 28,559

425,199 35,433

526,430 43,869

648,755 54,063

MANUFACTURING OVERHEAD 2009 2010

2011

2012

2013

Utilities

45,000

47,256

49,632

52,104

54,720

Indirect Labor

156,000

156,000

163,800

163,800

171,996

Total

201,000

203,256

213,432

215,904

226,716

2009

2010

2011

2012

2013

1,200

1,260

1,323

1,389

1,458

Output Tax Less: Input Tax Supplies Utilities PurchasesRaw Materials Total VAT Payable

Other expenses SUPPLIES 2009 2010 2011 2012 2013

6,240 6,552 6,880 7,224 7,585

MISCELLANEOUS EXPENSES

Promotions


75


Delivery Signboard Company ID

2,400 250 70

2,520 250 70

2,646 350 80

2,778 350 80

2,917 450 90

Total

3,920

4,100

4,399

4,597

4,915

PERMIT AND LICENSES 2009 2010 2011 2012 2013

15,000 15,000 16,330 16,330 17,962

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