24024119 Colegio de San Juan de Letran College of Business Administration

Colegio De San Juan De LetranCollege of Business Administration and Accountancy

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Colegio de San Juan de LetranIntramuros, Manila

A Feasibility Study on Vegetable Delights

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

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

March 2009


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TABLE OF CONTENTSTitle 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 CHAPTER II – Introduction/Background of the Study Objectives of the Study Operational Definition of Terms Scope and Limitation of the Study CHAPTER III – Market Study Objectives of the Study Methodology Demand & Supply Analysis/Gap Projected Sales/Market Share Marketing Strategies 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 Page 4 5 5 5 6 7 7 7 8 8 9 10 10 11 12 13 13 14 16 21 25 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 CHAPTER VI – Financial Study Objectives of the Study Total Project Cost Capitalization Sources of Financing Assumptions Financial Statements Financial Statement Analysis CHAPTER VII – Socio-Economic Aspect Contribution to Phil. Economy Employment Generation Desirability Appendices

50 50 50 51 51 53 60 62 63 64 64 64 65 65 66 67 68 70 70 71 72 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 feedbacks on our research. Mrs. Liza Belmonte, our panel 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 support 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 The very reason why the

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

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.


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C. Brief Description of the Project The namely: proposed business will focus on producing well-known

homemade delicacies and transform such into vegetable-mixed products dried and sweetened vegetables (kamote and gabi), vegetable vegetable pastillas polvoron (carrots, malunggay and kamote flavors),

(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 passes by within the location. The firm would also formulate expansion plans by becoming a concessionaire to groceries and supermarkets, and by joining 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). sweetened and pancake. The four workers will be assigned on each products: pastillas, polvoron, dried & 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. vegetable-mixed food products and clear plastic wrappers. Packaging for the products are transparent cellophane wrappers for clear appearances of these


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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 workers. specifications, The organizational structure will be from the general manager, to the assistant general manager, to the supervisor and down to 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.


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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.


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CHAPTER II Introduction/Background of the StudyBrief 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 terms of the usual sweets. leche because of its taste of being sweet and delicious. Young people, mostly children, loves sweets such as polvoron and pastillas de 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.


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

Operational Definition of Terms 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: vegetables: vegetable pancake, dried and sweetened vegetables, vegetable pastillas and vegetable polvoron with the use of these following 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. follows:where: n = sample size N = total population 1 = constant number e = margin of error n= N______ 1 + N (e)2

The computation is as

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)_________________ 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 Age______ Sex_______

__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 DemandTable 3.1 Year Competitor

2004 2005 2006 2007 2008*(* - Estimated Value)

37,964 38,739 39,530 40,337 41,160Source: Sasmuan Delicacies, Paranaque City

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 DemandTable 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 4 Year 2009 Year 2010 Year 2011 Year 2012 41,160 + 799 = 41,959 41,959 + 799 = 42,758 42,758 + 799 = 43,557 43,557 + 799 = 44,356 = 799


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Year 2013

44,356 + 799 = 45,155

Historical SupplyTable 3.3 Year Competitor

2004 2005 2006 2007 2008*(* - Estimated Value)

30,372 30,992 31,624 32,269 32,928Source: Sasmuan Delicacies, Paranaque City

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 SupplyTable 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 4 Year 2009 Year 2010 Year 2011 Year 2012 Year 2013 32,928 + 639 = 33,567 33,567 + 639 = 34,206 34,206 + 639 = 34,845 34,845 + 639 = 35,484 35,484 + 639 = 36,123 = 639

Demand & Supply Gap Analysis


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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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ProductMalunggay Pastillas Squash Pastillas Papaya Pastillas Carrot Polvoron Malunggay Polvoron Kamote Polvoron Dried Kamote Dried Gabi Kangkong Pancake Malunggay Pancake

Annual Capacity31,200 31,200 31,200 24,960 24,960 24,960 15,600 15,600 9,360 9,360

Units Sold28,080 28,080 28,080 22,464 22,464 22,464 14,040 14,040 8,424 8,424

Selling PricePhP 9.90 9.90 9.75 12.90 12.60 12.60 17.10 17.10 32.85 32.85

SalesPhP 277,992 277,992 273,080 289,786 283,046 283,046 240,084 240,084 276,728 276,728

Total

PhP 2,718,566

Year 2010ProductMalunggay Pastillas Squash Pastillas Papaya Pastillas Carrot Polvoron Malunggay Polvoron Kamote Polvoron Dried Kamote Dried Gabi Kangkong Pancake Malunggay Pancake

Annual Capacity34,320 34,320 34,320 27,456 27,456 27,456 17,160 17,160 10,296 10,296

Units Sold30,888 30,888 30,888 24,710 24,710 24,710 15,444 15,444 9,266 9,266


SalesPhP 336,679 336,679 332,046 350,882 343,469 343,469 290,347 290,347 334,966 334,966

Total

PhP 3,293,850

Year 2011Product Annual Units Sold Selling Price Sales


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CapacityMalunggay Pastillas Squash Pastillas Papaya Pastillas Carrot Polvoron Malunggay Polvoron Kamote Polvoron Dried Kamote Dried Gabi Kangkong Pancake Malunggay Pancake 37,752 37,752 37,752 30,264 30,264 30,264 19,032 19,032 11,232 11,232 33,977 33,977 33,977 27,238 27,238 27,238 17,129 17,129 10,109 10,109 PhP 12 12 11.85 15.65 15.30 15.30 20.70 20.70 39.80 39.80 PhP 407,724 407,724 402,627 426,275 416,741 416,741 354,570 354,570 402,338 402,338

Total

PhP 3,991,648


Annual Capacity41,496 41,496 41,496 33,384 33,384 33,384 20,904 20,904 12,480 12,480

Units Sold37,346 37,346 37,346 30,046 30,046 30,046 18,814 18,814 11,232 11,232


SalesPhP 492,967 492,967 487,365 518,294 506,275 506,275 428,959 428,959 491,962 491,962

Total

PhP 4,845,985


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Annual Capacity45,552 45,552 45,552 36,816 36,816 36,816 23,088 23,088 13,728 13,728

Units Sold40,997 40,997 40,997 33,134 33,134 33,134 20,779 20,779 12,355 12,355

Selling PricePhP 14.55 14.55 14.40 19 18.55 18.55 25.10 25.10 48.20 48.20

SalesPhP 596,506 596,506 590,357 629,546 614,636 614,636 521,553 521,553 595,511 595,511

Total

PhP 5,876,315

Projected SalesYear 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


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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


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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 Carrot Polvoron Malunggay Polvoron Kamote Polvoron Malunggay Direct Materials PhP 4,030 PhP 3,666 PhP 3,796 PhP 3,198 Cost of Overhead PhP 3,750 PhP 3,750 PhP 3,750 PhP 3,750 Yield 2,080 2,080 2,080 2,600 Mark-Up (80%) 80% 80% 80% 80% Selling Price PhP 12.90 PhP 12.60 PhP 12.60 PhP 9.90

Labor PhP 7,000 PhP 7,000 PhP 7,000 PhP 7,000


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Pastillas Squash Pastillas Papaya Pastillas Dried Kamote Dried Gabi Kangkong Pancake Malunggay Pancake

PhP 3,510 PhP 3,302 PhP 1,456 PhP 1,456 PhP 3,484 PhP 3,484



2,600 2,600 1,300 1,300 780 780

80% 80% 80% 80% 80% 80%

PhP 9.90 PhP 9.75 PhP 17.10 PhP 17.10 PhP 32.85 PhP 32.85

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 passers 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


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

CHAPTER IV Technical Study

Objectives of the 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


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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 Wrap each pieces using a cellophane wrapper.

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

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

Slice each rolled mixtures into small pieces.

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

Peeling of 3 vegetables involved. ( 5 minutes )


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

Mash each vegetables

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

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

Spread sugar all over the sliced vegetables.

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

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

Leave the 2 vegetables on the clean screen Prepare a board for one whole day screen board for either under the sun and drying D. Vegetable Pancake 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. The pancakes now are ready to serve. Put all cooked pancakes in one huge plate.

Combine everything in the first used mixing bowl.

Fry each pancakes on a pan for 3 minutes each.

Flip the pancake if one side is brown already.

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


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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,


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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.


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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 PancakePackaging/Labelling of respective goods

Worker A // Vegetable Pastillas // Working Table No. 1 9:00am – 9:30am 9:30am – 10:00am 10:00am – 10:30am 10:30am – 10:45am 10:45am – 11:00am 11:00am – 11:30am 11:30am – 12:00nn Peeling of the vegetables Boiling of the vegetables separately Beating of each vegetables Combining of all ingredients. Mix everything (all the ingredients) until firm Turning the mixtures on a plate 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 9:30am – 10:00am 10:00am – 10:15am 10:15am – 10:30am 10:30am – 10:40am 10:40am – 11:00am 11:00am – 11:30am 11:30am – 11:40am Peeling of necessary vegetables. Boiling of all the vegetables separately. Toasting of the flour in a pan for 15 minutes. Transferring of the flour to a mixing bowl. Mashing of all the vegetables. Combining and mixing all the main ingredients together with the vegetables. Using a moulder, put all the mixtures in a moulder. Place everything in an airtight container on the island table for storage.


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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 9:30am – 10:00am 10:00am – 10:15am 10:15am – 10:45am 10:45am – 11:00am Peeling of vegetables. Slicing each vegetables into thin cuts. Pour all the sugar on a round plate. Soaking of all the vegetables in the sugar for 1 hour. 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 9:30am – 9:40am 9:40am – 10:00am 10:00am - 10:15am 10:15am – 10:20am 10:20am – 10:30am 10:30am – 11:30am 11:30am – 11:40am 11:40am – 12:00nn Boiling each vegetables separately. Pour all the flour in a mixing bowl. Pour evaporated milk in a cup. Mash each vegetables on a mixing bowl. Break the dozen of eggs in a bowl. Combine everything in a bowl, mix everything for 10 minutes until mixture is firm. Frying of all the pancake on a pan. Flipping of pancakes. Put everything on the island table for temporary storage and packaging. Worker D can produce 30 units each of kangkong and malunggay


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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 PolvoronQuantity Materials

400 g 200 ml 1 pack

All-Purpose Flour Sugar Carrots


38

350 g 1 whole 50 g Malunggay PolvoronQuantity

Powdered Milk Cellophane Wrapper Butter

This is good for 80 pieces of carrot polvoron.

Materials

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

All-Purpose Flour Sugar Malunggay Powdered Milk Cellophane Wrapper Butter

This is good for 80 pieces of malunggay polvoron.

Materials

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

All-Purpose Flour Sugar Kamote Powdered Milk Cellophane Wrapper Butter

This is good for 80 pieces of kamote polvoron.

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 PastillasQuantity 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.


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Papaya PastillasQuantity 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 KamoteQuantity Materials

2 packs 200 ml 1 pack

Kamote Sugar Plastic Wrapper

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

Dried & Sweetened GabiQuantity Materials

2 packs 200 ml 1 pack

Gabi Sugar Plastic Wrapper

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

Kangkong PancakeQuantity 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.


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Malunggay PancakeQuantity 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.


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Production Capacity Vegetable Pastillas ( all variants )Year Daily Weekly Annual

2009 2010 2011 2012 2013Total

100 110 121 133 146610

600 660 726 798 8763,660

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

Vegetable Polvoron ( all variants )Year Daily Weekly Annual

2009 2010 2011 2012 2013Total

80 88 97 107 118490

480 528 582 642 7082,940

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

Dried & Sweetened Vegetables ( all variants )Year Daily Weekly Annual

2009 2010 2011 2012 2013Total

50 55 61 67 74307

300 330 366 402 4441,842

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

Vegetable Pancake ( all variants )Year Daily Weekly Annual

2009 2010 2011

30 33 36

180 198 216

9,360 10,296 11,232


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2012 2013Total

40 44183

240 2641,098

12,480 13,728

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

Raw MaterialsQuantity 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 & EquipmentsQuantity Material/Equipment Price

1

Refrigerator

PhP 12,500.00 PhP 12,500Price

Quantity

Material/Equipment

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


44

Factory & Production SuppliesQuantity Material/Equipment Price

4 8 4 4

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.


45

W I N D O W Cold Storage Area

Equipment Table Area 4M

Cooking Area 5M

W I N D O

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

W

For Raw materials ready for processing 4M

Island Table # 1 ( for finished products only ) 6M

Working Table #4 5M

D O O R Working Table #1 5M Working Table #2 5M Working Table #3 5M

Garbage 1 ( Recyclable )

Garbage 2 ( Non – Recyclable )

Garden Area

( serves as Drying Area for other delicacies )

Plant Location


46

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,


47

Paranaque City.Blue Cocoon Area of commercial sarisari and mini-grocery stores HIDALGO’s

BENGGAL GROCERY

PLANT AREA ( Protolife Ent. )UPSOUTH SCHOOL

Goodwill Hyundai Motors Pro-Log Philippines OSM Shipping Nego-Skwela 2 Subd., ( entrance )

IVR Motors and Machines

SKILL – POWER INSTITUTE

VEGELIGHTS LAPID’s Delicacies OutletChicharon

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

Direct Labor Requirements


48

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


49

Objectives of the Study • • 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


50

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


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 Testing: It is presumed that an applicant who reaches this step has passed and in hiring of employees:


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 encompasses 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.


54

Personnel Records: All transaction and information with regards to the personnel shall be centrally kept by the General Manager. 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 The Assistant General Manager, being the partner in the business, has also the right to


55

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 members 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


56

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.


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

POSITION

Required Numbers

Job Specification -graduate any 4 course preferably Business Administration -has at least two year managerial experience -has at least one year of managerial experience -has and skills -at least 23 strong effective of year-

JOB DESCRIPTION

Compensation (IN PESOS) *deductable 22,000/mo

General Manager

1 (one)

-prepares plan annually -prepares -formulates plans, strategies, and programs -assures congruent -implements administer

marketing company long-range marketing objectives organization’s is the and with

policies and regulations

mission-vision

operation and produces

organizational policies

communication


58

and above

Assistant General Manager

1(one)

-graduate any course, preferably Business

of

-prepares yearly budget -makes recommendations for policies and programs made by the General Manager -responsible for hiring and selection of employees needed to fill in the positions. -trains and supervises the workers.

18,000/mo

4-year

Administration -has at least one year of managerial experience -has strong leadership skill -possesses strong effective communication skills -at least 23 and above -preferably High -has willingness undergo training related to the nature of work to School graduate and

Worker

4(four)

-prepares the necessary ingredients. -responsible in making the end-products

7,000 each/mo


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-willing to shift works.

Position

Monthly Salary x

12 Total PhP 264,000 PhP 216,000

months General Manager PhP 22,000 x 12 Assistant General PhP 18,000 x 12 Manager Workers (4) TOTAL

PhP 7,000 each (28,000) PhP 336,000 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 Mayor’s Permit SEC Registration BIR Registration Community Permit PhP 500.00 8,000.00 4,000.00 500.00 1,200.00


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Sanitary Permit Garbage Inspection Fee TOTAL

100.00 700.00 PhP 15,000.00


61


62

CHAPTER VI Financial StudyObjectives 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 Permit and Licenses Office Supplies / Equipment Furniture and Fixtures Utilities Raw Materials Signboards Promotion Expenses Company IDs PhP 13,520 6,240 15,000 22,000 3,300 45,000 376,584 250 1,000 70


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TOTAL PROJECT COST

PhP 482,964

Initial CapitalizationPartners 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.


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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.


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** 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 Asst. General Manager Supervisor All the workers (4) ** SUPPLIES There is a 5% increase every year. ** Value-Added Tax (VAT) rate is 12%. ** Income tax rate for a general partnership is 35%. Married, no dependents Single Married, no dependents Single


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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 = 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 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

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

= = = = =

0.78% 0.74% 0.78% 0.82% 0.85%

= = = = =

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


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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 = 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

0.55% 0.71% 0.76% 0.76% 0.75%

= = = = =

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


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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.


69

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.


70

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

SALARIES & WAGES Position General Manager Assistant Gen. Mgr. Supervisor Worker 1 Worker 2 Worker 3 Worker 4 TOTAL (Yearly) UTILITIES Utility Electricity Water LPG TOTAL 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 2009 22,000 18,000 13,000 7,000 7,000 7,000 7,000 81,000 972,000 2010 22,000 18,000 13,000 7,000 7,000 7,000 7,000 81,000 972,000 2011 23,100 18,900 13,650 7,350 7,350 7,350 7,350 85,050 1,020,600 2012 23,100 18,900 13,650 7,350 7,350 7,350 7,350 85,050 1,020,600 2013 24,255 19,845 14,333 7,718 7,718 7,718 7,718 89,305 1,071,660

COST OF PRODUCTION Direct Materials Direct Labor Manufacturing Overhead TOTAL 2009 376,584 336,000 201,000 913,584 2010 384,120 336,000 203,256 923,376 2011 391,812 352,800 213,432 958,044 2012 399,744 352,800 215,904 968,448 2013 407,724 370,464 226,716 1,004,904

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 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


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TOTAL

7,494

7,494

7,754

7,754

7,858

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 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

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 Milk Butter Cellophane TOTAL Monthly 2009 26 20 19 55 20 15 155 4,030 2010 26.52 20.40 19.38 56.10 20.40 15.30 158.10 4,110.60 2011 27.05 20.81 19.77 57.22 20.81 15.61 161.27 4,193.02 2012 27.59 21.23 20.17 58.36 21.23 15.92 164.50 4,277 2013 28.14 21.65 20.57 59.53 21.65 16.24 167.78 4,362.28

Malunggay Polvoron


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Material Flour Sugar Malunggay Powdered Milk Butter Cellophane TOTAL Monthly

2009 26 20 5 55 20 15 141 3,666

2010 26.52 20.40 5.10 56.10 20.40 15.30 143.82 3,739.32

2011 27.05 20.81 5.20 57.22 20.81 15.61 146.70 3,814.20

2012 27.59 21.23 5.30 58.36 21.23 15.92 149.63 3,890.38

2013 28.14 21.65 5.41 59.53 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 Material Malunggay Powdered Condensed Sugar Cellophane Total/Monthly Papaya Pastillas Material Papaya Powdered Condensed Sugar Cellophane Total/Monthly Squash Pastillas Material Squash Powdered Condensed Sugar Cellophane Total/Monthly 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 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 5 55 28 20 15 3,198 2010 26.52 20.40 10.20 56.10 20.40 15.30 3,871.92 2010 5.10 56.10 28.56 20.40 15.30 3,261.96 2011 27.05 20.81 10.40 57.22 20.81 15.61 3,949.40 2011 5.20 57.22 29.13 20.81 15.61 3,327.97 2012 27.59 21.23 10.61 58.36 21.23 15.92 4,028.44 2012 5.30 58.36 29.71 21.23 15.92 3,393.52 2013 28.14 21.65 10.82 59.53 21.65 16.24 4,108.78 2013 5.41 59.53 30.30 21.65 16.24 3,461.38


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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

Dried & Sweetened Gabi Material Gabi 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

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

Malunggay Pancake Material Flour Sugar Malunggay 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

WITHHOLDING TAX


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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 Output Tax Less: Input Tax Supplies Utilities PurchasesRaw Materials Total VAT Payable 2009 326,228 749 5,400 45,190 274,889 22,907 2010 395,262 786 5,671 46,094 342,711 28,559 2011 478,998 826 5,956 47,017 425,199 35,433 2012 581,518 867 6,252 47,969 526,430 43,869 2013 705,158 910 6,566 48,927 648,755 54,063

MANUFACTURING OVERHEAD 2009 2010 Utilities Indirect Labor Total 45,000 156,000 201,000 Other expenses SUPPLIES 2009 2010 2011 2012 2013 6,240 6,552 6,880 7,224 7,585 47,256 156,000 203,256

2011 49,632 163,800 213,432

2012 52,104 163,800 215,904

2013 54,720 171,996 226,716

MISCELLANEOUS EXPENSES 2009 Promotions 1,200 2010 1,260 2011 1,323 2012 1,389 2013 1,458


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Delivery Signboard Company ID Total

2,400 250 70 3,920

2,520 250 70 4,100

2,646 350 80 4,399

2,778 350 80 4,597

2,917 450 90 4,915

PERMIT AND LICENSES 2009 2010 2011 2012 2013 15,000 15,000 16,330 16,330 17,962

Documents

24024119 Colegio de San Juan de Letran College of Business Administration