Fruvee Co

Far Eastern UniversityInstitute of Tourism and Hospitality Management

EXECUTIVE SUMMARY

In a 17-country research done by a British organization, Oxfam International, the

Philippines was found to be one of two countries, the other being India, which were most

concerned about nutrition. If one wants to have a healthy body, one must know the right

nutrients that the body needs.

Fruvé Company is a food business with healthy muffin as its product. Muffins are for

health conscious consumers since it is low fat, zero sugar, low calorie, and the like. It is

important to look at consumer usage and future trends before entering into the market.

Looking at the survey results, one can already deduce that Fruvé Company’s muffins will

gain popularity from the public or consumers.

Carrot Raisin, Blueberry, Hawaiian, Apple, and Banana muffins are some of the flavors

that Fruvé Company has. Fruvé Company positioned itself to cater coffee shops near the

company location at Quezon Avenue. These are Bubble Tea, Baang Coffee Shop, Coffee

Beanery, Dezaato Pan Breads Sweet Café, and KoCCo Bakery and Café.

Muffins will be sold per box; each contains 12 pieces, for P240.00. For three boxes, the

company will be selling it for P180.00 each. One muffin is worth P20.00 per piece.

Discounts will be given to loyal customers. The company is aims to have customer

satisfaction and customer retention in which it will surely make the company become a

successful one.

One of the company objectives is to establish Fruvé Company as a recognized muffin-

producing company in the country. To achieve this goal, different advertisements will be

made in order to gain fame from the public. Social networking, brochures, and websites are

some of the company’s marketing strategies.

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I. INTRODUCTION

The growth of cafés in the Food and Beverage sector in the Tourism Industry

brought the popularity of muffin serve as a side dish to coffee as it matches with this

quality drink. As the trend goes consumers are becoming more conscious of their diet

and health, this led on having healthy option for food hence pastries that were higher

in fat and calories, sugar and additives are being replaced with healthy muffins.

Fruvé Company is a start-up muffin retail establishment. It took the venture of

variety of healthy muffins: Blueberry muffin, Carrot-Raisin muffin, Hawaiian muffin,

Banana muffin, and Apple muffin. The company assures the health benefits that end-

consumers will have in its products. The company expects to catch the interest of a

regular loyal customer and plans to build a strong market position in the country

offering a best product at a competitive price.

The concept of Fruvé Company is to produce excellent and healthy muffins that

will satisfy the needs of the consumers. The company has positioned itself to cater

coffee shops.

II. COMPANY PROFILE

A. Basic Information

Fruvé Company always makes every batch from scratch, using the finest

and freshest ingredients available. The company offers a wide variety of muffin

products for the customers to enjoy. Artificial preservatives and MSG are never

used.

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B. Historical Background

Early muffins started out as a small cake that is sweet, with few ingredients,

and spoil quickly. On 20th century simple additives like nuts and dried fruits was

used. During 1960’s muffin was market to restaurants and coffee shop as partner

of a drink and a replacement for doughnuts. On 1970s to 1980s saw the

transformation in the “preparation and consumption of muffin,” the demand for a

healthier food brought to a new standard of muffin, without artificial preservative.

This brought the trend of serving healthy muffin in the market.

Fruvé Company derived its name from the word “fruvé” which means fruits

and vegetables, main ingredients of the product. The company is now progressing

as a retail business, having the vision to become the premier company in

producing healthy delicious muffin.

C. Vision and Mission

Vision

From starting as a fat-free muffin company, Fruvé Company has the vision of

becoming the premier company in producing healthy muffins.

Mission Statement

Fruvé Company gives the muffins delicious taste and texture by baking using the

finest ingredients. These ingredients include varieties of fruits from all across the

country, which is sure to satisfy our customer’s cravings.

Fruvé Company aims to offer high quality muffin products at a competitive price

to meet the demand of its consumers.

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III. COMPANY LOGO

Green color symbolizes green consumers (those who are health conscious). “Keepin a

healthy lifestyle” is the tagline of the company.

IV. GOALS AND OBJECTIVES

Our goals include developing a sustainable growth engine that will create jobs and

help our partners become more successful. We are committed to quality as an

everyday focus and meeting the needs of quality-driven customers has moved

excellence to a front and center position within the company. One of our company

goals is to claim the muffin category.

The company in on a quest to meet companies and partners who have the passion

to make a difference and build a future that is impactful and sustainable. When

consumers think of Fruvé Company, the company hopes the consumers think of:

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an innovative, agile, and lean company that navigates effectively from

ideas through execution;

a strong management team with great people and partners;

a full breath of services from research and development, product

positioning and packaging design, through strategic selling opportunities;

a valued business partner helping the clients achieve their goals by

becoming an extension of their team

a company providing the highest quality product with personal customer

service

competitive pricing

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MANAGEMENT ASPECT

The central idea of management is to make every action or decision help achieve a careful

chosen goal. The word management is also used to mean the group of persons called executives

who perform management activities.

This section of the study pertains to management models and principles that Fruvé Company

would adopt and adhere to. It implies a clear and precise identification of duties and

responsibilities, flow of authority and manpower level requirement. To achieve these, the

management must be able to plan all activities for Fruvé Company to become productive and

competitive industry through human resource, financial capability and new technologies.

In the case of Fruvé Company, it should be noted that it is a start-up firm. Efficiency and

productivity of personnel is the main contributor to company profitability. Therefore, the aim of

the study of the management aspect is to seek business models, procedures, and systems that

would lead to greater efficiency and productivity.

I. KEY BUSINESS OPERATIONS

Chart 1: Key Operations of Fruvé Company

SALES & MARKETING(Operational, Sales, Distribution, Finance)

PRODUCTION(Purchasing, Production,

SUPPORT SERVICES(Maintenance)

FINANCE & STAFF( HRD, Accounting, Administrative)

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The operation of the company is divided into four major areas, which is the basis

of the company structure and staffing: production, sales & marketing, finance, and

support services.

A. Finance and Staff

1. Administrative

Hiring Policy

Benefits Plans and Programs

Performance Appraisal and Development

2. Accounting

Payroll and Wages Distribution

Expenses (Rent, Utilities, Loan Interests)

Ensuring liquidity for the Firm (Loans and Equity Management)

3. Purchasing and Issuing

Purchasing of Raw Materials

Procurement of Supplies

B. Production

1. Production

Setting of production quota and targets

Management of production process

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2. Inventory Management

Management of the raw materials, production supplies, and finished

products

C. Sales & Marketing

1. Customer Relations

Procurement of orders from customers and consignees

Feedback mechanism for suggestions, comments from customers

Searching for potential customers and buyers

2. Product Distribution

Distribute the product to customers

Collection and remittance of payments

3. Marketing Communications

Increase product visibility to ensure market share

D. Support Services

1. Maintenance

Report all repairs being done.

Check vehicles daily.

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II. TYPE OF BUSINESS

Corporation is the most common form of business organization, and one which is

given many legal rights as entity separate from its owners. The company’ liability of

its owners, the issuance of shares of easily transferable stock, and existence are a

going concern.

The process of becoming a corporation, call incorporation, gives the company

separate legal standing form its owners and protects those owners from being

personally liable in the event that the company issued. It also provides the company

with a more flexible way to manage their ownership structure. In addition, there are

different tax implications for corporations, although these can be both advantageous

and disadvantageous.

III. ORGANIZATIONAL STRUCTURE

When a work group is very small and face-to-face communication is frequent,

formal structure may be unnecessary, but in a larger organization decisions have to be

made about the delegation of various tasks. Thus, procedures are established that

assign responsibilities for various functions. It is these decisions that determine the

organizational structure.

The primary objective of an organization is to set up relationships and procedures

in such a way that employees can obtain the best results from their efforts. The

framework of an organization’s structure is created through a process called

organizational design that defines the four key design decisions, which include

division of labor, departmentalization, span of control, and delegation of authority.

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Division of labor determines the extent to which jobs are specialized, either by

personal specialties, horizontal specialization, or across a vertical plane. In Fruvé

Company, the work is mainly divided into four major areas of business operations:

sales and marketing, production, finance and staff, and support services, which form

the company’s four departments.

Departmentalization refers to the rationale used to group jobs together and

includes functional, territorial, product, and customer-based departmentalization. It is

possible to combine the better of two departmental based groups into a matrix in

order to develop a type of synergy between functional specialties. All the departments

of Fruvé Company are administered by their supervisors, who report to the General

Manager.

The span of control in an organization refers to the establishment of the number of

jobs to be included in any specific group. It is often determined by looking at the

required contact, degree of specialization, and ability to communicate needed across

actual relationships of a manager’s interaction with subordinates, permutations of

subordinates, and the subordinate interactions between each other.

Delegation of authority refers to the amount of decision-making authority that is

delegated to each job or each jobholder. It is either centralized or decentralized

depending on the straightforwardness of the job, competency and motivation of the

individual, and the costs and benefits derived from the delegation of authority. It must

be noted that Fruvé Company is a start-up firm. In case of start-up firms,

incorporators are expected to be part of the company’s operational structure as

supervisors or employees.

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Chart 2: Organizational Structure of Fruvé Company

STOCKHOLDERS

President

Board of Directors

Vice PresidentSales & Marketing

Sales Director Baker

Dispatchers

Purchasing/Issuing Staff

Chairman of the BoardVice Chairman of the

BoardCorporate Secretary

Drivers

Vice President Support Services

Safety Officers

Mechanics

Electricians

Vice President Production

Vice President Finance & Staff

Product Director

Marketing Communicatio

n Director

Helpers

Accounting Staff

Accountant

HRD

AdministrativeStaff

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In compliance with the rules of the Securities and Exchange Commission (SEC),

Fruvé Company holds an annual stockholder’s meeting since the company is a

corporation. The Board of Directors is composed of Chairman of the Board, Vice

Chairman of the Board, Corporate Secretary, and Treasurer.

IV. ON-STAFFING AND JOB DESCRIPTION

President

Job Description Provide leadership to position the company at the

forefront of the industry. Develop a strategic plan to

advance the company's mission and objectives and to

promote revenue, profitability and growth as an

organization. Oversee company operations to ensure

production efficiency, quality, service, and cost

effective management of resources.

Duties and Responsibilities 1. Plan, develop, and implement strategies for

generating resources and/or revenues for the

company.

2. Identify acquisition and merger opportunities and

direct implementation activities.

3. Approve company operational procedures,

policies, and standards.

4. Review activity reports and financial statements

to determine progress and status in attaining

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objectives and revise objectives and plans in

accordance with current conditions.

5. Evaluate performance of executives for

compliance with established policies and

objectives of the company and contributions in

attaining objectives.

6. Promote the company to local, regional, national,

and international constituencies.

7. Present company report at Annual Stockholder

and Board of Director meetings.

Job Specification 1. Graduate of a business related course.

2. Strong administrative and secretarial skills;

excellent communication skills.

3. Experience in strategic planning and execution.

4. Ability to communicate and interact with

officials at all levels of government and to work

effectively with a wide range of constituencies

in a diverse community.

5. Experience in formulating policy, and

developing and implementing new strategies and

procedures.

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Vice President Sales & Marketing

Job Description Provide leadership and coordination of company sales

and marketing functions. Develop and implement sales

and marketing strategy. Monitor and analyze sales and

marketing activity against goals.

Duties and Responsibilities 1. Direct and coordinate company sales and

marketing functions.

2. Develop and coordinate sales selling cycle and

methodology.

3. Direct and oversee the company marketing

function to identify and develop new customers

for products and services.

4. Research and develop strategies and plans which

identify marketing opportunities, direct

marketing, and new project development.

5. Analyze and evaluate the effectiveness of sales,

methods, costs, and results.

6. Develop and manage sales and marketing budgets,

and oversee the development and management of

internal operating budgets.

7. Promote positive relations with partners, vendors,

and distributors.

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excellent communication skills.

3. Knowledge of structuring sales quota goals and

revenue expectations.

4. Experience in planning marketing strategies,

advertising campaigns, and successful public

relations efforts.

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Sales Director:

Job Description Senior sales manager in charge of all sales activities,

departments and personnel involved in Sales and

Marketing for the Company.

Duties and Responsibilities 1. Analyze sales statistics to determine business

growth potential.

2. Establishes performance goals for all sales

department employees, and monitors performance

on a continual basis.

3. Seeks out and targets new customers and new

sales opportunities, initiates action plan to

approach and secure new business for the

Company.

4. Monitor, analyze sales and market trends.

5. Development of online and offline sales strategy.

6. Update the company on changing trends within

the online marketing environment so the

organization can make and adjust plans

accordingly.

7. Utilize existing account management processes

and reporting systems.

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Product Director:

Job Description The Product Director is responsible for the product

planning and execution throughout the product

lifecycle, including: gathering and prioritizing product

and customer requirements, defining the product

vision, and working closely with engineering, sales,

marketing and support to ensure revenue and customer

satisfaction goals are met.

Duties and Responsibilities 1. Lead and manage product management staff

responsible for executing the product

development lifecycle, including roadmap

planning, engineering prioritization, market and

competitive analysis, product positioning, and

product launches.

2. Direct both business and technical requirements

gathering activities through on-going interaction

with clients and prospects, client advisory board

meetings, user groups, and market research.

Monitor, analyze sales and market trends.

3. Commercialize new product releases and product

integrations globally, including pricing strategy,

marketing, and sales training.

4. Influence and collaborate with cross-functional

teams on strategic and tactical initiatives,

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including supporting the sales effort and

collaborating with the services organization.

5. Act as the key spokesperson for the product to

customers, the press, and industry groups on a

regular basis to promote product awareness.

Job Specification 1. Minimum 5-7 years experience in the

technology field, including roles with direct

client interaction. A prior position in the product

management field preferred.

2. Proven ability to begin and finish major cross-

functional projects independently with minimal

supervision. Top-notch follow-through skills.

3. Written and verbal communications at the

highest level; ability to represent the company at

industry events.

4. Business or technology degree preferred. MBA

a plus.

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Marketing Communication Director:

Job Description This position is responsible for development and

implementing a marketing and communications

strategy. The incumbent sets goals, monitors work and

evaluates results to ensure that departmental objectives

and operating requirements are met and are in line

with the needs and mission of the organization.

Duties and Responsibilities 1. Assists in developing the department’s strategic

plan, which addresses critical issues in the

marketing and communications area.

2. Makes decisions relative to the selection,

promotion, utilization, retention and

compensation of Marketing and Communications

staff.

3. Develops a marketing strategy that effectively

markets the organization and educates the public

in terms of issues and maximizes the

organization's fundraising efforts.

4. Develops and implements communications and

media strategies that successfully deliver

information and key messages to the public..

5. Develops and maintains a strong and productive

relationship with both print and electronic media.

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Ensures the media understand the organization

and the media are interested in presenting

information to the public in a manner that informs

and educates them on the organization.

6. Directs market research activities in order to keep

abreast of changing demographics and other

relevant issues in order to evaluate marketing and

communication activities and to monitor emerging

issues.

7. Keeps abreast of all trends in the industry.

Job Specification 1. University graduate in business, marketing,

communications or an equivalent combination

of education, training and expertise.

2. Experience must include strategic planning,

communications planning and management,

marketing and media relations.

3. Individual must be a strong communicator, have

excellent written, presentation, oral

communications and interpersonal skills.

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Vice President Production

Job Description A vice president of production plans, directs and

coordinates the development and manufacture of all

products made by that company.

Duties and Responsibilities 1. Provide management and leadership to production

team while tracking game development across a

slate of products.

2. Collaborate with Marketing and Sales to establish

brand plans for long-term growth and expansion

of portfolio.

3. Evaluate research and sign external development

teams for projects.



excellent communication skills

3. Must have experience managing, motivating,

and leading creative and technical teams over

long periods of time.

4. Must have strong management skills and proven

ability to manage budgets (P&Ls) and schedules

for creative product.

5. Keen technical knowledge; will have a strong

interest in new technologies and in the

interactive entertainment industry.

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Baker:

Job Description Baker's jobs entail producing products that serve the

community or the demographic that they are catering

to and can be physically and mentally draining. Bakers

produce goods in large quantities using industrial

equipment

Duties and Responsibilities 1. Check production schedule to determine variety

and quantity of goods to bake.

2. Use a variety of kitchen tools, including electric

mixers, pans, rolling pins, and cutting tools.

3. Monitor baking process to identify needed

adjustments.

4. Get information from production schedules and

recipes.

5. Control mixing processes and oven controls.

6. Implement products by following recipes or

creating new ones.

Job Specification 1. Graduate of a culinary course.

2. At least 4 years experience in the Food and

Beverage Industry.

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Dispatcher:

Job Description Dispatchers coordinate the movements of means of

transport like trucks, vans etc that are entering

terminals. Dispatchers contacts drivers and

communicate with them through computers, phones or

two-way radios. They assign the drivers to their

respective vehicles and make sure that they leave and

arrive according to schedule.

Duties and Responsibilities 1. Keeps track of the progress that drivers make

along their routes.

2. Uses large control boards in a company’s office to

follow the route taken by the drivers.

3. Checks the drivers’ in and out time and transfer

these records into a company’s files.

4. Besides dealing with drivers on a daily basis,

handles any request and complaint made by the

customers.

Job Specification 1. Graduate of any 4-year course;

2. Strong communication skills; they must give

instructions clearly so that they are understood

by the drivers.

3. At least a high school degree or its equivalent.

4. As dispatchers receive a large number of calls

and problems at the same time, they need to stay

organized and prioritize the order of calls.

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Driver:

Job Description He may have to transport supplies, hazardous

chemicals, manufacturing equipment and finished

goods such as electronics, food and automobiles.

Duties and Responsibilities 1. Hauls cargo from one point to another so that they

can be distributed, bought or sold.

2. Responsible for the condition of his vehicle and

look for any malfunctioning part.

3. Review all the necessary shipping documents.

Job Specification 1. At least High School graduate.

2. Skill in driving.

3. Need to be in good physical condition.

4. Knowledge of how to maintain the truck, in case

it breaks down in the middle of nowhere.

5. Must be punctual and follow the schedule in

order to transport the merchandise on time.

6. Must have all the required documents and

license to be able to drive a truck for

commercial purposes.

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Helper:

Job Description Perform variety of tasks requiring limited knowledge

of production processes in support of skilled

production workers.

Duties and Responsibilities 1. Cleans and lubricates equipment.

2. Signals coworkers to facilitate moving product,

during processing.

3. Measures amount of ingredients, length of

extruded article, or work to ensure conformance

to specifications.

4. Replaces damaged or worm equipment parts.

5. Starts machines or equipment to begin process.

6. Mixes ingredients, according to procedure.

7. Removes product, machine attachments, and

waste material from machine.

8. Observes operation and notifies equipment

operator of malfunctions.

9. Segregates and removes trash and garbage and

places it in designated containers.

Job Specification 1. Highschool graduate;

2. Knowledge of raw materials, production

processes, quality control, costs, and other

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techniques for maximizing the effective

manufacture and distribution of goods.

3. Knowledge of machines and tools, including

their designs, uses, repair, and maintenance.

4. The ability to quickly move your hand, your

hand together with your arm, or your two hands

to grasp, manipulate, or assemble objects.

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Vice President Finance & Staff

Job Description Plans, organizes, directs, supervises, and personally

performs professional accounting and fiscal activities

in conformance with generally accepted accounting

standards and appropriate laws and regulations.

Duties and Responsibilities 1. Direct and review financial record keeping

activities such as purchasing, fixed assets, and

accounts payable.

2. Analyze problems, evaluate alternatives, and

implement creative recommendations.

3. Coordinate the annual audit and work closely with

auditors to implement suggestions.

4. Research and develop departmental operating

policies.

Job Specification 1. Possess a Bachelors degree from an accredited

college in accounting, finance, business

administration, or closely related field. Master’s

degree in accounting or related field or CPA is

desired.

2. Substantial professional accounting experience

that includes at least five years in

accounting/finance fields and at least two years

supervision of professional and clerical staff in a

municipal setting. Experience with an emphasis in

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accounting, financial reporting, and auditing is

preferred.

3. Communicating effectively, both verbally and in

writing.

4. Performing complex accounting, auditing and

financial record keeping activities.

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Accounting Staff:

Job Description An accounting clerk works in the accounting and

financial wing of a company. They are a prerequisite

of all businesses and deal with the gross money inflow

and outflow of a company. Since an accounting clerk

deals with numbers all day, the basic skill that he

should possess is being good in handling numbers.

Duties and Responsibilities 1. Creation of invoices, bills and other routine

financial statements

2. Bookkeeping duties.

3. Help in drafting and presentation of financial

plans although cannot give advice on high level

policy making of the company

4. Checking for errors in account statements and

financial records and making required correction

5. Preparation of monthly financial statements

Job Specification 1. CPA; With at least 3 years of solid accounting

practice.

2. Experience in general accounting or cost

accounting and can prepare financial statements.

3. Proficient in MS Office Applications.

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Administrative Staff:

Job Description Administrative staff works to provide administrative

and clerical support to a specific department or person.

General duties include clerical, reception and project-

based work. Administrative staff works in most

employment industries and the specific duties can vary

based on the industry where the positions are held.

Duties and Responsibilities 1. Organizes and maintains paper and electronic

files, deals with paperwork and office

organization.

2. Answers phone calls, fields questions in areas in

which she has the expertise to speak, and forwards

others to the correct personnel.

3. Manage all accounting and book keeping

requirement of the company

4. responsible for overseeing budgets and engage in

record-keeping

5. Oversee databases, update them and make sure

that they are functioning properly.

6. Make sure that regulations are being followed.

7. Responsible to recruitment and training of staff.


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2. Minimum 5 years experience.

3. Proficiency in accounting software

4. Proactive, initiative and independent person with

good interpersonal and writing skills

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Purchasing / Issuing Staff:

Job Description Purchasing staff interview, hire and train a staff of

buyers and specialists. They must keep their

employees motivated and working as a team, while

making certain they follow the company's policies

when it comes to spending its money for purchases.

They often do a lot of the purchasing themselves,

overseeing a financial budget and often negotiating

with vendors on costs.

Duties and Responsibilities 1. Issue purchase order.

2. Prepare work permits and job hazard analysis.

3. Inform drivers of timely memos and new

guidelines.

4. Reviews and approves purchase order placement

of purchasing assistants and buyers for accuracy

and optimum delivery and pricing.

5. Review purchase order claims and contracts for

conformance to company policy.

6. Meets with vendors to negotiate improved pricing,

product quality, and delivery.

7. Conducts meetings, prepares and presents reports,

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and provides information to identify purchasing

requirements, establish business plans and

performance objectives, and report performance

against plan and business objectives.

Job Specification 1. Must be sharp negotiators with excellent

communication skills.

2. Need to have a deep understanding of computers

and math, both of which are used to record a

variety of transactions.

3. Graduate of a business related course.

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Vice President Support Services

Job Description Is responsible for the operational management of

support services in order to ensure effective and

efficient delivery of food. Develops the policies and

procedures, departmental budget and supervises staff.

Duties and Responsibilities 1. Develops, implements, controls and evaluates

departmental goals, objectives, policies, and

procedures.

2. Develops documentation and reporting systems to

maintain records and communication for the

department.

3. Assist in development and implementation of

preventative maintenance programs of the

physical plant and equipment according to facility

policies and procedures.

4. Ensures equipment and supplies are used and

stored in a safe manner and maintained in

working order.

5. Monitors safety in the working and living

environment. Responds to and reports all hazards,

near miss and incidents; investigates and makes

recommendations as indicated.

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2. Monitors safety in the working and living

environment. Responds to and reports all hazards,

near miss and incidents; investigates and makes

recommendations as indicated.

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Safety Officers:

Job Description Their responsibility involves planning and

implementing programs that promote safe and accident

free work environment. Safety officers also coordinate

between different departments and meet with risk

management personnel for implementing safety

programs.

Duties and Responsibilities 1. Educate the staff about safety measures.

2. Develops, recommends and implements health

and safety policies.

3. Interprets and evaluates compliance with safety

codes.

4. monitors safety inspection programs

5. Develops health and safety educational programs

for safety awareness.

6. Supervises activities of health and safety

specialists.

Job Specification 1. Graduate of a business-related course.

2. Must be sharp negotiators with excellent

communication skills.

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3. Three years of experience in coordinating safety

and loss prevention activities.

4. Possession of a bachelor's degree in social

sciences, human resources, or a closely related

field with supplemental training in safety.

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Mechanics:

Job Description Responsible for the installation, maintenance,

troubleshooting, and repair of facility machinery.

Duties and Responsibilities 1. Install facility machinery.

2. Perform preventative and predictive maintenance

on facility machinery.

3. Troubleshoot and repair facility machinery.

4. Write and maintain standard operating procedures

(SOPs) and Job Safety Analysis (JSAs).

5. Communicate with operators from other shifts.

6. Complete daily maintenance and repair logs.

7. Clean and maintain work area.

Job Specification 1. Graduate of any 2-year vocational course.

2. Basic reading, writing, and arithmetic skills

required.

3. Ability to read and interpret blueprints and

schematics.

4. Advanced skills required in one or more of the

following areas: HVAC, electrical, mechanical,

hydraulic & pneumatic systems, plumbing,

carpentry, piping systems, and PLC

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programming.

Electricians:

Job Description Install, maintain, and repair electrical wiring,

equipment, and fixtures. Ensure that work is in

accordance with relevant codes. May install or service

lights, intercom systems, or electrical control systems.

Duties and Responsibilities 1. Installs, repairs, and maintains motors,

transformers, generators, lights, appliances,

circuits, wiring, and other electrical system

equipment and components in compliance with

electrical codes, standards, and regulations.

2. Operates a variety of electrical testing equipment

in locating and determining types of electrical

malfunctions.

3. Studies plans, drawings, specifications, and work

orders to determine work requirement and

sequence of repairs and/or installations.

4. Repairs and maintains high voltage systems.

5. Advise management on whether continued

operation of equipment could be hazardous.

6. Inspect electrical systems, equipment, and

components to identify hazards, defects, and the

need for adjustment or repair, and to ensure

compliance with codes.

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Job Specification 1. Graduate of any 2-year vocational course.

2. Knowledge of the tools, equipment, and

materials common to the electrical trade.

3. Knowledge of applicable electrical codes,

standards, and regulations.

4. Skill in both verbal and written communication.

5. Skill in the installation, repair and maintenance

of all types of electrical system equipment and

components.

6. Completion of a four-year federally approved

technical training program in electrical repair

and maintenance and two (2) years electrical

experience

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V. SALARIES AND BENEFITS

Fruvé Company is committed to ensuring that employees are accurately paid for

all time worked. The company’s pay periods are on the 15 th and 30th or 31st of every

month.

The company is guided by two principles in the setting of wages and benefits: “as

per law” and “as per company productivity.” “As per law” means according to law.

Wages are set in compliance to the country’s laws on wage-fixing. The minimum

wage is set by the regional wage boards (Republict Act 6727). Benefits such as

overtime pay, nightshift differential, paternity/maternity leaves, sick leaves, 13 th

month pay, and the like are established by the Labor Code.

According to the Labor Code, employees who work on holidays will be given

additional pay depending on the nature of holiday. Legal holidays include Maundy

Thursday, Good Friday, Araw ng Kagitingan, Labor Day, Independence Day,

National Heroes Day, Eidl Fitr (Ramadan), Bonifacio Day, Christmas Day, and Rizal

Day. Special Holidays include Ninoy Aquino day, All Saints Day, and Last Day of

the Year.

Laws on social welfare also require private employers to remit contributions to

the Social Security System, PhilHealth, and PAGIBIG for the company’s workers’

pension, healthcare, and housing needs.

According to company productivity, Fruvé Company would strive to give wages

that are higher than the legally mandated levels. This would be achieved by granting

productivity benefits, sales incentives, and bonuses for manager and supervisors. The

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corporation could also entice its workers with capital (equity) in the form of

stocks/shares in recognition to their contribution to the company growth.

The objective of setting wages, based on the company’s profitability, is to

promote labor efficiency and productivity. The decision to raise wages or grant

bonuses would be made by the Board of Directors upon recommendation of the

General Manager.

Salaries

DESIGNATION 15 DAYS ANNUAL SALARIESPresident P12,500.00 P300,000.00VP Sales & Marketing P7,500.00 P180,000.00VP Production P7,500.00 P180,000.00VP Finance & Staff P7,500.00 P180,000.00VP Support Services P7,500.00 P180,000.00Sales Director P6,060.00 P145,440.00Product Director P6,060.00 P145,440.00Marketing Communication Director P6,060.00 P145,440.00Baker P6,060.00 P145,440.00Dispatchers P6,060.00 P145,440.00Drivers P6,060.00 P145,440.00Accounting Staff P6,060.00 P145,440.00Administrative Staff P6,060.00 P145,440.00Purchasing/Issuing Staff P6,060.00 P145,440.00Safety Officers P6,060.00 P145,440.00Mechanics P6,060.00 P145,440.00Electricians P6,060.00 P145,440.00Helpers P6,060.00 P145,440.00

Benefits

Compensation, benefits, and employee perks rewards the employees for their

contributions in the Fruvé Company employee. It adds to a great work environment

and promotes the shared responsibility between the company and the employees, for

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individual and company success. The company offer benefits to both eligible full- and

part-time partners, no matter what position held at Fruvé Company.

Mandated By Law:

Social Security System

A. Effectivity of Coverage

1. Employee - First day of employment

2. Employer - First day of hiring of employees

3. Self-employed – Upon first payment contribution

B. Short Term Benefits

1. Sickness Benefit: Daily cash allowance granted to a member for the number of

days he is unable to work due to sickness or injury.

Amount of Benefit: Daily cash allowance is equivalent to 90% of the average

salary credit

Qualifying Conditions:

a. Unable to work due to sickness or injury

b. Confined for at least four (4) days

c. Paid at least 3 months contributions within the 12th month period

d. Immediately preceding the semester of sickness

e. He has notified his employer within 5 calendar days after the start of

the sickness or injury.

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2. ECC Benefit: Aims to assist those who suffer from work-connected sickness

or injury resulting in disability or death.


a. Sickness benefits should first be utilized before applying for the

benefit.

b. Sickness, injury or death is work connected.

3. Maternity Benefit: Daily cash allowance granted to a female employee.

60 days – Normal delivery, abortion, miscarriage & ectopic pregnancy

78 days- Caesarian


a. Given the required notification to the SSS thru her employer.

b. Paid at least 3 months contributions within the 12-month period before

the semester of childbirth, miscarriage or abortion.

c. Applicable up to 4 deliveries.

4. Salary Loan: Short term cash assistance is extended to members who have

paid at least 36 monthly contributions whether they are currently employed or

separated from employment.

5. Calamity Loan: 1 month salary is granted to members who are victims of

typhoons or floods in a locality declared as a calamity area.

C. Long Term Benefits

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1. Retirement Benefit: Member who reaches age 60 and is no longer employed or

65, whether employed or unemployed will receive a monthly pension for life

if he has paid at least 120 monthly contributions prior to the semester of his

retirement.

2. Disability Benefit: Member who becomes permanently disabled, either totally

or partially entitled to cash benefits in lump sum or in the form of monthly

pension depending on the number contributions he has paid to SSS.

3. Death Benefit: Primary beneficiary will receive a monthly pension if the

deceased member has paid at least 36 monthly contributions before the

semester of his death.

PhilHealth

It is a health insurance that provides basic medical assistance to the employee and

his or her dependents during the times of hospitalization.

All employees are required to pay a certain contribution. This amount is deducted

from your salary. The company will provide an equal contribution on your behalf.

PAGtutulungan sa kinabukasan,

Ikaw, Bangko, Industriya, Gobyerno (PAG-IBIG)

As a member of PAGIBIG, employee is eligible to apply for basic housing and

emergency loans provided you meet the required number of monthly contributions.

Employer’s Contribution : P100.00

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Employee’s Contribution : P100.00

Paternity Leave

Legally married male employee is entitled to 7 days paternity leave with pay for

the first four deliveries of his legitimate wife with whom he is cohabiting.

PL may be availed of consecutively or on a staggered basis i.e., before, during or

after the delivery/miscarriage/abortion, provided that:

The total number of days shall not exceed 7 working days.

The leave shall be availed of no later than 60 days after the date of

delivery/miscarriage/abortion.

PL may be scheduled for a period of more than 4 hours of ½ day. It must be

approved in advance by the employee’s superior. They must also submit the birth

certificate of the child. PL taken without prior approval is considered absence without

official leave and shall be treated as leave without pay.

Any changes on the PL schedule require the approval by the superiors and an

advice to the Administration Department.

Unused PL credits are non-cumulative and non-convertible to cash.

Maternity Leave

Maternity leave is provided to an employee who is unable to work due to

childbirth. For formal delivery, employees are entitled for 60 days and 78 days for

caesarian section. Expenses are advanced by the company but paid for by SSS.

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Solo-Parent Leave

Single mothers or fathers may have an additional 3-days leave.

13 th Month Pay

Employees are eligible for the 13th month pay if they worked with the company

for at least a month. They may opt to get the half of their 13 th month during middle of

May and the other half will be given in the middle of November. The minimum 13th

month pay required by law shall not be less than 1/12 of the basic salary earned by an

employee within a calendar year.

Company Granted:

Fruvé Company offers paid vacation to its employees to refresh and relax. These

days will be pro-rated depending on the regularization date. The following principles

apply to all employees:

Vacation time is not available until the employee is regularized.

Vacation time must be requested in advance, in order to plan for the

employee’s absence. The employee should submit a vacation request to his or

her manager.

Vacation time may not be donated, borrowed or taken as cash in lieu of time

off.

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Vacation is paid at the rate of pay the employee is earning at the time vacation

is taken.

15 Days Vacation Leave (VL) / Year

Upon regularization, an employee would have earned VL days with pay 1.25 days

by the number of month’s probationary period:

1.25 days x 6 months = 7.5 days

Employees on probationary status may schedule and avail of VL days, upon

approval of their superiors. Such days shall be considered authorized but without pay

(LWOP – Leave without Pay).

Employees shall only be allowed to have a maximum of 30 days VL at the end of

the year. Employees shall be required to use their excess no. of VL credits on the

following year; otherwise, it will be forfeited.

15 Days Sick Leave (SL) / Year

Upon regularization, an employee would have earned VL days with pay of 1.25

days by the number of month’s probationary period:

1.25 days x 6 Months = 7.5 days

Employees on probationary status may schedule and avail of SL days, upon

approval of their superiors. Such days shall be considered authorized but without pay

(LWOP – Leave Without Pay).

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3 Days Emergency Leave (EL) / Year

Serious illness or hospitalization of employees’ legitimate spouse, children, and

parents, including brothers and sisters in the case of single employees.

Fortuitous event like fire, typhoon, or an earthquake.

Transportation strike, flood, typhoon, or other calamities.

When an employee’s presence is required elsewhere by law.

Shall not be accumulated or converted to cash if unused.

3 Days Bereavement Leave (BL) / Year

Fruvé Company provides time off with pay for an employee who experiences the

death of legitimate parents (including in-laws), spouse, children, brothers, and

grandparents. The employee will receive up to four consecutive days off with pay to

attend the funeral of a family member. It is subject to the President’s approval. It is

not cumulative and not convertible to cash

Accident Leave

This is subject to the President’s approval. Employee who sustain an accidental injury

while performing his/her official duties or while on authorized company activity shall

be allowed to go on leave with pay until he/she is fit to return to work.

It is not chargeable to employee’s VL or SL. Employee shall be required to submit a

medical proof from his attending physician

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Group Life Insurance

A. Accidental Death & Disablement Income Benefit

10% accidental medical Reimbursement

10% accidental burial benefit

B. Total & Permanent Disability

Health Insurance

A. Outpatient Coverage:

Unlimited Consultations

Treatment of minor injuries

Laboratory Examinations/diagnostic procedures prescribed by the attending

physician

Annual Physician Examination

Dental Services (oral prophylaxis, tooth extraction, temporary & permanent

filling – light cure)

B. In-Patient Coverage

Room & coverage board accommodation

Professional fees of the attending physicians

Drugs, medicines for use in the hospital

Laboratory/Diagnostic Procedures

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Use of the Operating Room, Recovery Room, ICU/CCU whenever required

C. Financial Assistance

10,000.00 - natural death

20,000.00 - accidental death

D. Maternity Assistance

12,000.00 - Caesarian Delivery

9,000.00 - Normal Delivery

7,000.00 - Miscarriage/ Abortion

Annual Merit Increase

Fruvé Company is committed to paying employees fairly and providing different

rewards for different levels of contribution.

We have the following types of increases:

Performance Increase is designed to reward the performance of a partner for a

specific time of period.

Promotional Increase is given in recognition of partners accepting increased

responsibilities such as from assistant store manager to store manager.

Adjustment Increases are designed to respond to external market pressures or

to preserve internal equity.

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VI. RECRUITMENT PROGRAM

The HRD under the Administrative Staff will supervise the recruitment of

personnel. It will administer the entire hiring process from the placement of ads, the

conduct of interviews and aptitude test, and the initial training for selected applicants.

Other member of the Board need not apply for vacant positions; however, they will

still be subject to training as probationary employees, supervised by the HRD.

Also, HRD is responsible for placing hiring announcements in “classified ads” in

newspapers and in the Internet. The advertisement would contain the contact

information of the company (for the setting of interview and for the mailing of

curriculum vitae). It also includes the job specification for the said positions.

Hiring Procedure

All applicants who have responded to the hiring announcements, are required to

submit resume, birth certificate, medical examination result, Transcript of Records

(TOR), NBI Clearance, and if available, certification of previous employment, SSS,

or TIN. Upon screening of records, applicants will already be subjected to job

interview, basic aptitude test, and background check; all of which will be conducted

by the HRD along with the President.

Company Orientation and Initial Training

Applicants who passed the interview and the aptitude tests are herby deemd as

“probationary employees” of the company. The company is encouraged to provide an

orientation program for all new and re-hired employees within a reasonable time of

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their employment dates. This will be facilitated by the Board of Directors which

included the President

The orientation should include:

A complete explanation of employee benefits, including leave types, payroll

options, and insurance choices;

Information about the company and its mission;

Policies and requirements governing employee rights and behaviors; and

Other features of employment with Fruvé Company.

Career Development and Recognition

Fruvé Company offers employees many training and development opportunities

to help individual contributors and leaders adjust to new roles, ramp up to full

effectiveness and prepare for higher levels of job responsibilities and leadership.

Further development will be facilitated internally and externally. The company will

provide on-the-job training for all probationary employees.

VII. PERFORMANCE APPRAISAL

This is the method of evaluating and providing feedback on where and how the

employee meets work expectations over a given period of time. The performance of

each employee would be closely monitored by the President, who would keep an

individual file on the performance and output of every employee based on the report

of their immediate supervisors.

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Regular performance appraisal help employees perform their jobs better and

enhance working relationships. Performance feedback will assist the employee in

recognizing strengths and areas needed for improvement, as well as facilitate the

setting of the employee’s development goals.

Introductory full time employees will be given a regularization performance

review by the President on their 3rd month with the company. Introductory part-time

employees will receive a performance review by the President after completing 700

hours of work.

All full time employees will receive a performance review from their general

manager, once a year, at the end of each fiscal year (September). A performance

evaluation will result in one of the following ratings:

Consistently Exceeds Expectation

Meet Expectations

Needs Improvement

The outcome of the employee’s evaluation will determine whether the partner is

entitled to a merit pay increase.

Benefits:

a. Provide performance feedback and guide in employee coaching.

b. Create a basis for personal actions of salary increase, transfer, demotion,

termination, and promotion.

c. Serve as basis for the development of employees and supervisors.

d. Provide job and organizational diagnosis and the basis for change.

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VIII. CODE ON EMPLOYEE DISCIPLINE

Fruvé Company considers the prevention of situation which will result in

disciplinary action as one of the objectives of effective employee-management

relations. The company wants each employees to develop and grow on the job. There

may be a time however when the behavior and or performance of an employee is

deemed less than satisfactory. Disciplinary actions may be required to correct and

rehabilitate the employee and/or to improve the effectiveness of the work force.

The intent of disciplinary action is to give the employee a reasonable opportunity

to reestablish an acceptable level of performance or behavior. It may take the form of

a verbal warning, a written warning, suspension or termination from employment.

The form of disciplinary action taken will depend on the seriousness of the situation

and the surrounding circumstances. There is no guarantee that an employee will

receive a minimum number of warnings prior to termination of employment, or that

corrective action will occur in any set manner or order.

The company promulgates the following rules and regulations for the guidance of

and compliance by all employees. Violation of any provision of this Code constitutes

ground for disciplinary action and will subject the employee to the remedial penalty

prescribed.

Penalties:

A. Reprimand - Written warning memorandum to the erring employees for

commission of a simple offense committed for the first time as provided

under this Code.

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B. Suspension - Temporary physical detachment from the service.

C. Preventive Suspension - An on the spot suspension prior to and/or during an

investigation where the employee’s continued service would pose a serious

imminent threat or danger to life of his co-employees or of his employer or to

Company property.

D. Dismissal - A dishonorable separation from the service. A dismissed

employee loses his accrued sick/vacation and other leave credits. He shall also

lose his right to separation pay as he is discharged for cause.

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IX. GANTT CHART

Activity June July August September October

Planning for Feasibility

Looking for possible business location

Processing of the

documents

Setting up the business

Purchase of equipments and supplies

Hiring of employees

Identifying the

company’s target

market

Start of production

process

Selling of products

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Continuation of

production process

TECHNICAL ASPECT

I. PRODUCT CONCEPT

Fruvé Company’s product is muffins. Its product is a combination of fruits

and vegetables which will aid to the needs of health-conscious and diet-conscious

consumers. It is 100 percent zero-sugar. This will provide nutritious and delicious

taste.

II. HEALTH BENEFITS

Carrot-Raisin Muffin

A. Butter

1. Rich in vitamin A, butter is necessary for thyroid, adrenal health and good eye vision.

2. The fat contains lecithin, which is important for cholesterol metabolism.

3. It contains lauric acid that is essential for treating fungal infections and candida.

4. Butter protects toddlers and elderly people from gastrointestinal infections.

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5. It is a source of Vitamin K2, which is important for treating arthritis, osteoporosis, tooth decay, tuberculosis, emphysema and asthma.

6. It contains conjugated lenoleic acid that serves as a potent anti-cancer agent, muscle builder and immunity booster.

B. Ground Cinnamon

1. It is indicated for a variety of ailments including gastrointestinal problems,

urinary infections, relieving symptoms of colds and flu and has

remarkable anti-fungal and anti-bacterial properties.

2. Cinnamon warms and stimulates the digestive system.

3. Clear up urinary-tract infections.

4. Kill many disease-causing fungi and viruses.

5. It helps people with diabetes metabolize sugar better.

C. Carrot

1. Eating carrots may help lower the risk of breast cancer, lung

cancer and colon cancer.

2. It can help improve eyesight.

3. It has a strong cleansing properties that are effective in detoxifying the

liver, so that the overall effective for acne that is caused by toxins from the

blood.

4. Regular consumption of carrots reduces cholesterol levels.

5. Carrots contain a lot of beta-carotene, which serves as an antioxidant that

helps the body to fight the cell damage done to the body with dirt in the

bloodstream and even oxygen.

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6. It can improve the appearance of the skin, hair and nails.

D. Raisins

1. Raisins are antioxidant. These help keep the blood clean and flowing.

2. Raisins are said to beneficial for bone density. The minerals in raisins in

conjunction with estrogen in women help make bones stronger and ward

off osteoporosis.

3. Raisins are also great for healthy gums and teeth. Though raisins are

sticky and very sweet, they do not cause tooth decay ore gum disease.

4. Raisins help with eyesight, oral hygiene and they act as antioxidants.

E. Salt

1. It aids in keeping calcium and other minerals soluble in the blood.

2. It helps regulate muscle contractions.

3. It plays an important role in maintaining fluid balance in the cells.

4. It is water and salt that energizes and activates our bodies.

F. Eggs

1. People who eat eggs every day lower their risk of developing cataracts

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2. They are a good source of choline. One egg yolk has about 300

micrograms of choline. Choline is an important nutrient that helps regulate

the brain, nervous system, and cardiovascular system.

3. Eggs are one of the only foods that contain naturally occurring vitamin D.

4. Eggs promote healthy hair and nails because of their high sulphur content

and wide array of vitamins and minerals.

G. Stevia Sugar

1. Stevia herb parts are very low in calories.

2. Chlorgenic acid reduces conversion of glycogen to glucose and also

reduces absorption of glucose in the gut thus helps reduce blood sugar

levels.

3. Being a non-carbohydrate sweetener, stevia would not favor the growth

of Streptococcus mutansbacteria in the mouth which is attributed to be a

causative agent for dental caries and tooth cavities.

4. In addition, being a herb, stevia contain many vitals minerals, vitamins

that are selectively absent in the artificial sweeteners.

5. Certain glycosides in stevia extract have been found to dilate blood

vessels, increase sodium excretion and urine output. In effect stevia, at

slightly higher doses than as sweetener, can help lower blood pressure.

Blueberry Muffin

A. Blueberry

1. Very rich in anti oxidants like Anthocyanin, vitamin C, B complex,

vitamin E, vitamin A, copper (a very effective immune builder and anti-

bacterial), selenium, zinc, iron (promotes immunity by raising

haemoglobin and oxygen concentration in blood) etc. boost up your

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immune system and prevent infections. The fat contains lecithin, which is

important for cholesterol metabolism.

2. Neutralizes free radicals which can affect disease and aging in the body.

3. Aid in reducing Belly Fat.

4. Helps promote urinary tract health.

5. Been proved to preserve vision.

B. Eggs








C. Stevia Sugar




levels.









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D. Butter







E. Salt





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F. Milk

1. Providers of calcium, phosphorous, magnesium and protein which are all

essential for healthy bone growth and development.

2. The amounts of calcium and phosphorous in milk and dairy products are

also beneficial for the development and maintenance of healthy teeth.

3. High calcium intakes may reduce high levels of bad cholesterol in the

blood, and increase low levels of good cholesterol both of which are

known risk factors for cardiovascular disease.

4. People who consume milk and dairy foods are likely to be slimmer than

those who do not.

G. Vanilla Extract

1. It can be used to help calm the stomach when you are feeling nauseous.

2. The scent of vanilla extract alone may assist people who are working to

lose weight.

3. Since stress and anxiety cause so many different health problems, the use

of vanilla extract to reduce anxiety and stress can be correlated with a

variety of other health benefits as well.

Banana Muffin

A. Eggs






Page 64




B. Stevia Sugar




levels.









C. Butter





Page 65




D. Salt





E. Banana

1. Banana is a rich source of iron, thus it is helpful in cases of anemia.

2. Banana is good for people who have high blood pressure because it is low in salt.

3. Banana contains tryptophan, a type of protein that the body converts into serotonin. Serotonin is a hormone that is known to make you feel happy and improve your mood.

4. Banana is also helpful in the following cases: Stomach ulcer (banana has a natural antacid), Colitis, Digestive disorder, Diarrhea, Constipation (banana is high in fiber), Hemorrhoids.

Apple Muffin

A. Eggs

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Eggs promote healthy hair and nails because of their high sulphur content


B. Stevia Sugar




levels.









C. Vanilla Extract

1. It can be used to help calm the stomach when you are feeling nauseous.

2. The scent of vanilla extract alone may assist people who are working to

lose weight.

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3. Since stress and anxiety cause so many different health problems, the use

of vanilla extract to reduce anxiety and stress can be correlated with a

variety of other health benefits as well.

D. Butter







E. Apple

1. Apple is a rich source offlavonoid and polyphenols both are powerful

antioxidant.

2. Apple contains a large amount of minerals and vitamins that can

strengthen the blood.

3. The skin of Apple contains pectin that can help remove toxic substances

from the system by supplying galacturonic acid. Pectin helps prevent

protein matter in the intestine from spoiling.

4. Eating an apple daily can lower cholesterol and reduce skin diseases.

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Hawaiian Muffin

A. Eggs








B. Stevia Sugar




levels.






Page 69





C. Butter







D. Salt





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E. Skim Milk

1. It contains more calcium.

2. Fat-free.

F. Pineapple

1. It contains a proteolytic enzyme bromelain, which helps in the digestion of

protein. Pineapple can prevent blood clot formation because of its

bromelain content.

2. Prevents nausea (includes morning sickness and motion sickness).

3. It helps to build healthy bones.

4. Bromelain, which is found in pineapples, has been found to help suppress

coughs and loosen mucus.

III. MANUFACTURING PROCESS

Carrot-Raisin Muffin

1. Gather all raw materials from the suppliers thru delivery.

2. Prepare all materials and ingredients needed for production.

3. Preheat the oven to 375° F. and grease muffin pan with butter.

4. Make brown butter by melting the butter in a small saucepan over very

low heat. Continue to cook until the butter begins to turn a light brown

color and has a nutty aroma. Remove from heat and let cool slightly.

5. Sift together the flour, cinnamon, baking powder, baking soda and salt.

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6. In a bowl of an electric mixer fitted with whisk attachment, beat together the

eggs and stevia sugar on medium speed until light, fluffy and light colored.

7. With the mixer running, slowly add the brown butter then the carrots and

raisins and beat until well combined.

8. Turn the mixer to low speed and slowly add the flour mixture. Mix until

combined.

9. Pour the batter into the muffin cups and bake until the muffins is golden and a

wooden pick inserted in the centre comes out clean, about 25 minutes.

10. Let cool slightly and remove from tins onto a wire cooling rack.

11. Put the product into its final packaging.

12. Deliver to designated coffee shops.

Blueberry Muffin




4. Beat together the butter, eggs, salt and stevia sugar.

5. Mix the flour with baking powder and sift into first mixture, alternating with

milk.

6. Blend in the vanilla.

7. Add the blueberries.

8. Pour into the muffin pan and bake for about twenty five minutes.

Hawaiian Muffin


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4. Sift together the dry ingredients.

5. Add the beaten eggs, milk and melted butter; then stir until smooth.

6. Add the crushed pineapple and mix thoroughly.

7. Bake for twenty five minutes or until done.

Apple Muffin




4. Cream butter and stevia sugar until light and fluffy.

5. Beat in eggs, one at a time, and beating after each addition.

6. Add apples and vanilla and beat until smooth.

7. Mix together the flour, salt, baking powder, and baking soda.

8. Stir flour mixture into butter mixture, alternating with the buttermilk.

9. Stir until dry ingredients are moistened then gently stir in chopped nuts.


Banana Muffin




4. Mix the mashed banana, stevia sugar, egg and butter together.

5. Mix together baking soda, baking powder, salt, and flour.

6. Mix wet and dry ingredients all together.

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Preheat the oven to 375° F.

Melt the butter until it begins to turn into light brown color.

Sift together the flour, cinnamon, baking powder, baking soda, and salt.

Beat together the eggs and sugar in a medium speed.

With the mixer running, slowly add the brown butter then the carrots and raisins and beat until well combined.

Slowly add the flour mixture. Mix until combined.

Pour the batter into the muffin cups and bake about 25 minutes.

Let cool slightly and remove from tins onto a wire cooling rack.



IV. PRODUCTION PROCESS

Carrot Raisin Muffin Production Flow Chart

Preparation of raw materials

Page 74

The product is ready for the process of packaging.


Beat together the butter, eggs, salt, and stevia sugar.

Mix the flour with baking powder and sift into first mixture, alternating with milk

Blend in the vanilla.

Add the blueberries.





Blueberry Muffin Production Flow Chart


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Sift together the dry ingredients.

Add the beaten eggs, milk and melted butter.

Add the crushed pineapple.





Hawaiian Muffin Product Flow Chart


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Sift together the dry ingredients.

Cream butter and stevia sugar until light and fluffy.

Beat in eggs, one at a time, and beating after each addition.

Add apples and vanilla.

Mix together the flour, salt, baking powder, and baking soda.

Stir flour mixture into butter mixture, alternating with the buttermilk.

Stir until dry ingredients are moistened then gently stir in chopped nuts.

Let cool slightly and remove from tins onto a wire cooling



Apple Muffin Product Flow Chart


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Mix the mashed banana, stevia sugar, egg, and butter together.

Mix together baking soda, baking powder, salt, and flour.

Mix wet and dry ingredients together.





Banana Muffin Product Flow Chart


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V. RAW MATERIALS

Carrot Raisin Muffin

Butter All-Purpose Flour Ground Cinnamon

Baking Powder Baking Soda Salt

Eggs Raisins Stevia Sugar

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Carrots

CARROT RAISIN MUFFININGREDIENTS PRICE QUANTITY AMOUNT

Butter P1002/box (24pcs.) 1 1/4 cups P11.82All-Purpose Flour P1,000/35kg 2 cups P7.31Ground Cinnamon P360/kg 1 tsp. P1.44Baking Powder P550/14kg 2 tsp. P0.31Baking Soda P30/kg 1 tsp. P0.12Salt P230/40kg 1/2 tsp. P0.012Eggs P130/tray (30pcs.) 2 pcs. P8.67Stevia Sugar P250/50 g 10 g P50.00Carrots P200/sack 4 cups P8.00

Raisins P150/kg 1/2 cups P17.00TOTAL COST P104.18

Cost per product = Total Cost / 12 muffins

= P104.18 / 12

= P8.68 per piece

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Blueberry Muffin

Butter All-Purpose Flour Eggs

Baking Powder Salt Stevia Sugar

Milk Vanilla Extract Blueberries

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BLUEBERRY MUFFININGREDIENTS PRICE QUANTITY AMOUNT

Blueberries P960/box (12 pcs) 2 cups P80.00Eggs P130/tray (30pcs.) 2 pcs. P8.67All-Purpose Flour P1,000/35kg 2 cups P7.31Stevia Sugar P250/50 g 5 g P25.00Milk P57.75/L 1/2 cup P6.55Butter P1002/box (24pcs.) 1/4 cup P2.38Baking Powder P550/14kg 2 tsp. P0.31Vanilla P85/gal 1 tsp. P0.11Salt P230/40kg 1/2 tsp. P0.012

TOTAL P130.34


= P130.34

= P10.86 per piece

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Hawaiian Muffin



Skim Milk Pineapple Chunks

Page 83


HAWAIIAN MUFFININGREDIENTS PRICE QUANTITY AMOUNT

All-Purpose Flour P1,000/35kg 4 cups P14.63Eggs P130/tray (30pcs.) 4 pcs. P17.33Pineapple (chunks) P20/pc 1 1/2 cups P20.00Stevia Sugar P250/50 g 2.5 g P12.50Skim Milk P510/box (8pcs) 1 1/2 cup P17.33Butter P1002/box (24pcs.) 1/2 cup P4.72Baking Powder P550/14kg 2 tbsp. P0.31Salt P230/40kg 1 tsp. P0.023

TOTAL P86.84


= P86.84

= P7.24 per piece

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Apple Muffin


Vanilla Extract Apple Stevia Sugar

APPLE MUFFININGREDIENTS PRICE QUANTITY AMOUNT

All-Purpose Flour P1,000/35kg 2 cups P7.31Eggs P130/tray (30pcs.) 2 pcs. P8.67Apple P410/kg (30pcs) 2 pcs. P27.33Stevia Sugar P250/50 g 5 g P25.00Vanilla P85/gal 1 tsp. P0.11Butter P1002/box (24pcs.) 1/2 cup P4.72

TOTAL P73.14


= P73.14

= P6.10 per piece

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Banana Muffin



Baking Soda Banana

Page 86


BANANA MUFFININGREDIENTS PRICE QUANTITY AMOUNT

All-Purpose Flour P1,000/35kg 1 1/2 cups P5.49Eggs P130/tray (30pcs.) 1 pc. P4.33Banana P816/4kg (34pcs.) 3 pcs. P18.00Stevia Sugar P250/50 g 2.5 g P12.50Butter P1002/box (24pcs.) 1/3 cup P3.17Baking Soda P30/kg 1 tsp. P0.12Baking Powder P550/14kg 1 tsp. P0.15Salt P230/40kg 1/2 tsp. P0.012

TOTAL P43.77


= P43.77

= P3.65 per piece

VI. TECHNOLOGY AND PROCESSES

The company will be using local machinery or 2nd hand imported machinery

available locally. Local machinery and installations are quite competitive in price

in comparison to the foreign equipment and installations. Additionally, it is linked

with the viability of the project as the foreign new machinery and installation

would not be feasible due to the high costs involved.

Major suppliers of Local machinery and materials are:

a. Fabtech Kitchens Unlimited, Barangay Santa Cruz. Quezon Avenue

b. Bakers Depot, Walter Mart, Munoz

Page 87


FACTORY MACHINERY AND EQUIPMENTITEM PRICE QUANTITY AMOUNT

Mixing Bowl (4 quart capacity) P100.00 10 P1,000.00Bread Thermometer (Digital) P1000.00 5 P5,000.00Measuring Spoon P85.00 10 P850.00Measuring Cup P250.00 10 P2,500.00Wooden or Metal Spoon (Long Handle)

P45.00 10 P450.00

Rubber Spatula P335.00 10 P3,350.00Baking Muffin Pans - 12 (9 in x 5 in)

P98.00 15 P1,470.00

Timer P450.00 5 P2,250.00Wire Cooling Rack P135.00 3 P405.00Universal Mixer (Food Processor - 40 quarts)

P98,000.00 5 P490,000.00

Plastic Wrap P160.00 5 P800.00Party Brush (2 inches) P30.00 5 P150.00Serrated Knife P215.00 5 P1,075.00Working Table (4 in x 4 in) P6,000.00 5 P30,000.00Commercial Refrigerator P45,000.00 3 P135,000.00Oven (maximum of 15 trays) P36,000.00 1 P36,000.00Muffin Trays (maximum of 12) P320.00 15 P4,800.00Strainer P400.00 10 P4,000.00Exhaust Fan P1,500.00 5 P7,500.00Gas Ranges P8,000.00 2 P16,000.00LPG P2,500 3 P7,500.00

TOTAL P750,100.00

OFFICE SUPPLIES

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ITEM PRICE QUANTITY AMOUNTRecord Book P20.00 5 P100.00Ledger P25.00 5 P125.00Order Slip (per pad) P20.00 5 P100.00Official Receipts P80.00 5 P400.00File Organizer P120.00 10 P1,200.00Ball Pen P7.00 35 P245.00Marker P110.00 4 P440.00Paper Clips (per box) P20.00 5 P77.50Scotch Tapes P15.50 5 P62.50Envelope (per pack) P12.50 5 P75.00Stapler P15.00 3 P240.00Staple Wire P80.00 5 P177.50Bond Paper (1 ream) P180.00 3 P540.00Trash Cans P180.00 3 P585.00Wall Clock P195.00 8 P75.00Fire Extinguisher P50.00 3 P2,550.00Punchers P25.00 2 P70.50Scissors P850.00 4 P102.00Rags P35.25 5 P200.00Doormat P25.50 3 P196.50Sponge P40.00 3 P36.00Dust Pan P65.50 4 P120.00Garbage Bag P12.50 10 P125.00Toilet Paper P55.00 8 P440.00Broom P30.00 5 P150.00Mop P52.00 5 P260.00Liquid Soap P35.00 5 P175.00Hair Net P10.00 15 P150.00Apron P30.00 15 P450.00Face Mask P50.00 15 P750.00Gown P65.00 10 P650.00Gloves P12.00 26 P312.00Knives P320.50 5 P1,602.50Fluorescent Light P100.00 6 P600.00

TOTAL P13,342.00

OFFICE EQUIPMENT

Page 89


ITEM PRICE QUANTITY AMOUNTFax Machine P5,000.00 1 P5,000.00Desktop P20,000.00 1 P20,000.00Television P15,000.00 1 P15,000.00Time Recorder P2,500.00 1 P2,500.00Water Dispenser P4,500.00 2 P9,000.00Aircondition P6,000.00 3 P18,000.00

TOTAL P69,500.00

FURNITURES & FIXTURESITEM PRICE QUANTITY AMOUNT

Office Table P1,500.00 1 P1,500.00Office Chair P650.00 1 P650.00Filing Cabinet P6,000.00 1 P6,000.00

TOTAL P8,150.00

PACKAGINGITEM PRICE QUANTITY AMOUNT

Box P160/pack (20 pcs) 10 P1,600.00Muffin Pad P250/pack (20 pcs) 10 P2,500.00Paper Cup P60/pack (100 pcs) 2 P600.00

TOTAL P4,700.00

UTILITIESITEM PER MONTH PER YEAR

Electrical Consumption

P7,500.00 P90,000.00

Water Consumption P3,500.00 P42,000.00Telephone and Fax P1,500.00 P18,000.00Rent P65,000.00 P65,000.00

TOTAL P215,000.00

ADVERTISEMENT

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ITEM PRICE QUANTITY AMOUNTWeb Page P27,000.00 1 P27,000.00News Paper (LIBRE - 3 x 15 col. cm)

P10,080.00 1 P10,080.00

Flyers P1.35 5,000 P6,750.00TOTAL P43,830.00

VII. QUALITY AND SAFETY MEASURES

All must strictly follow the rules and regulation and precaution. Employees

are required to dress in a professional, business-like and well-groomed manner

suitable for the type of work they perform. The employee’s appearance and

personal hygiene are important not only to the company, but also to the customers

and to those who works with them. An employee who comes to work

inappropriately dressed or with unacceptable appearance may not be permitted to

start his or her shift.

A. Dress Code and Personal Presentation

Shirts/Blouses

Plain black and white shirts with collars, polo style shirts, and turtlenecks

should be worn. Mock turtlenecks should not be worn. No other colors,

design, logos (with the exceptions of a small manufacturer’s logo), writing or

combination of a white and black are allowed. The shirt maybe short or long-

sleeved, but not sleeveless. If an undershirt is worn, such as turtleneck, it must

be the same color as the outer shirt. The shirt must be clean, pressed and

tucked in at all ti-----------------------------------------mes.

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A sweater maybe worn over a turtleneck or shirt in cooler weather and must

be solid white or black. Crew neck or v-neck T-shirts are not acceptable, with

the exception of the company’s promotional T-shirts, which may be worn only

for the duration of the promotion.

Pants/Trousers/Shorts/Skirts

Pants, trousers, shorts and skirts must be solid black or khaki. Shorts and

skirts must be professional in appearance and never shorter than four inch

above the knees. Denim (either blue or black), leather, athletic or stretch style

fabrics and leggings are not allowed.

Footwear

Socks in black, white or beige are required. Shoes must be brown or black

work-style shoes or boots with at least half-inch heels for women and no heels

for men. Black leather sport shoes, white and toned sport shoes are not

allowed. Open-toed shoes, sandals, clogs, cowboy boots, canvas shoes,

athletic or jogging shoes are not allowed.

Hair and Nails

Hair must be clean, professional and tied back and off the shoulders and

brushed. Hair must be kept back from the face and if it is longer than shoulder

length, should be tied back with plain clips or hair bands. A scarf use as hair

band or tie the hair back is acceptable. All hair accessories must be off dress

code color and discreet. Banana clips are not allowed. Hair color should look

natural; bright or unnatural colors (e.g. purple, blue or green) are not allowed.

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Beards, mustaches and goatee are not allowed. Fingernails should be clean,

well manicured and of moderate length. Nail polish is permitted.

Tattoos

Tattoos cannot be visible.

Jewelry/Body Piercing

Earrings must be small or moderate sized, dangling earrings are not

allowed. No more than two earrings per ear may be worn. No other pierced

jewelry or ornaments are allowed, including nose rings or tongue studs. Any

jewelry with stones and beads are not permitted. Pearls are also not allowed.

Jewelry on arms is not allowed like watches, bracelets, ballers, IDs etc; no

rings allowed other than a wedding band.

Personal Hygiene

Employees must follow all reasonable personal grooming standards,

including regular bathing and use of deodorant.

Pins

Fruvé Company’s issued promotional buttons and pins are allowed. Any

other pin or button including those advocating any political or religious

position or any issue is not allowed, except as required by law.

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B. Personal Belongings

Security of Personal Belongings

Employees are strongly advised not to bring large amounts of money,

jewelry, and valuables to work. Fruvé Company does not accept liability for

the loss and damage to of an employee’s personal possessions while on its

premises, and an employee will not be reimbursed by the company for any

such loss. If employees have been provided with a locker, they should use it

for the storage of their belongings while they are in shift and keep it locked at

all times. It is not permissible to leave personal belongings, including

clothing, at the company while an employee is not on shift.

C. Smoking

Fruvé Company provides a smoke-free environment for the employees

and clients. Smoking is not permitted in the company. If an employee smokes

while on break and outside the premises, the employee is required to wash his

or her hands before returning to work.

D. Drugs and Alcohol

To pro-actively advocate a drug-free work environment Fruvé Company’s

employees are prohibited from any involvement with alcohol, drugs, or any

other substance that may impair work performance or the ability to

professionally represent the company. Specifically this policy forbids working

while under the influence of alcohol or drugs and prohibits the use, sale,

manufacture possession or illegal distribution of alcohol, illegal drugs or

Page 94


controlled substance on company premises, while conducting company

business or during work time.

For the purpose of this policy, working time includes meal and rest breaks.

Furthermore, employees are strictly prohibited from reporting to work under

the influence of alcohol, illegal drugs or controlled substances not in accord

with a valid prescription. Employees who are taking prescription drugs that

may affect their work performance should also discuss their situation with

their manager prior to working.

Page 95


VIII. LOCATION AND LAYOUT

Our manufacturing company and main office is located at GF Marren Bldg.,

1157 Quezon Avenue, Quezon City and we will be delivering our products to

some parts of Metro Manila particularly in West Avenue and Tomas Morato

where our target market is located. Our place of production allows us to be near

our clients, so that we can deliver our products on time.

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IX. PRODUCTION LAYOUT

Page 97


MARKETING ASPECT

Page 98


I. INTRODUCTION

The name muffin derived from the German word “muffe” means a kind of

cake and “moufflet” a French word means soft bread. Early muffins started out as

a small cake that is sweet, with few ingredients, and spoil quickly. On 20 th century

simple additives like nuts and dried fruits was used. During 1960s muffin was

market to restaurants and coffee shop as partner of a drink and a replacement for

doughnuts. On 1970s to 1980s saw the transformation in the” preparation and

consumption of muffin”, the demand for a healthier food brought to a new

standard of muffin, without artificial preservative. This brought the trend of

serving healthy muffin in the market.

Healthy muffins are specifically conceptualized to meet these needs. The

proponents designed a food product that has the consumers’ well-being as number

one priority, without sacrificing quick preparation. This objective is done by

utilizing healthy and tasteful ingredients.

II. MARKET OVERVIEW

A. Product Description

The company will be offering a large variety of quality products (muffins)

at competitive prices. The product line includes different flavors of healthy

muffins. These are carrot raisin, blueberry, hawaiian, banana, and apple

flavors.

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The main ingredients of the muffins are fruits. It contains no artificial

flavor and no sugar. Low-fat milk is used. Consumers can gain various

nutritional benefits from the product since it contains healthy ingredients.

The target markets of the company are coffee shops that are in line of

selling pastries. The suggested retail price P240.00 for 1 dozen (12 pieces)

muffins or P20.00 per piece. The wholesale price is P180.00/pack or

P15.00/piece for bulk orders of 3 dozens, P540.00.

The packaging of the product is a box, containing 1 dozen (12 pieces). The

products need to be kept in high temperature for its freshness.

B. Macro-Environmental Analysis

1. Demographics

GEOGRAPHIC

Country Region: Metro Manila

City: West Avenue, Tomas Morato Avenue, Banawe

Density: Urban

DEMOGRAPHIC

Age: Not applicable, but presumably of legal age

Gender: Male, Female

Occupation: Metro Manila

Page 100


PSYCHOGRAPHIC

Social Class: Upper-lower class, working class, midde class,

upper-middle class, lower-upper class, upper-

upper class

Lifestyle: Urban fast-paced lifestyle

The company decides to operate in Metro Manila specifically in

Quezon City area. As a manufacturer of muffins, separate concern will be

given on end consumers even if the company focuses on retailers. Higher

demand from end consumers would induce a higher demand from food

retailers too.

2. Economics

The economic environment consists of factors that affect consumer

purchasing power and spending patterns. There is a variation in the levels

and distribution of income.

There will be 12% Value Added Tax that will be imposed to the

company. If more consumers will patronize the muffins being sold to each

coffee shop, more likely, there will be a higher demand of the products.

President Aquino's first budget emphasizes education, health,

conditional cash transfers for the poor, and other social spending

programs, relying on the private sector to finance important infrastructure

projects. Weak tax collection, exacerbated by new tax breaks and

incentives, has limited the government's ability to address major

challenges. In addition, the World Bank forecasts that the Philippines will

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not hit the 7% to 8% economic growth rate the government has projected

for 2011. In a briefing on Jan. 13, a World Bank economist said they

expect the local economy to expand by only 5%.The Aquino

administration has vowed to focus on improving tax collection efficiency -

rather than imposing new taxes - as a part of its good governance platform.

Economic trends, such as inflationary factors that may hinder the

economy or consumer purchasing power, can have a strong influence in

the Food and Beverage industry. In addition, the global market would be

another lucrative market for the FNB Industry. Higher tariffs or a

devaluation of the dollar may reduce the consumer purchasing power,

causing a shift in consumer buying habit that, in turn, causes revenue loss

for Fruvé Company. Since there will be lower demand of the products.

3. Politico-Legal

As products become more complex, public concern about their safety

increases. In addition, legislation and regulation affecting business have

been enacted for three reasons: it protects companies from each other; it

aims at protecting consumers from unfair business practices; and it aims to

protect society’s interests against unrestrained business behavior.

Fruvé Company will produce a quality product that will satisfy each

end consumers. The company will also ensure the safety of the ingredients

in each product. The company will accomplish several permits in order to

meet the needs of each client. The company will strictly follow each step

of putting up the business.

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4. Socio-cultural

The results of the National Nutrition and Health Survey 2003 have

clearly shown that there are six major risk factors prevalent among our

population today, namely, physical inactivity, smoking, hypertension,

obesity, diabetes and abnormal cholesterol. These risk factors are the

major causes of cardiovascular diseases, cancers, chronic obstructive

pulmonary diseases and diabetes mellitus. These diseases are listed among

the top 10 leading causes of deaths in the country with cardiovascular

diseases topping the list. All of the risk factors listed above, except for

smoking and physical inactivity, are related with diet and nutrition.

Two of the most important trends in the global food and drinks

industry are the increasing consumer demand for products that can provide

functional solutions to their health needs, and for products that tap into

consumers’ increasing demand to live lifestyles that are less

environmentally damaging than previously (without compromising the

quality or quantity of consumption they take on).

Wellness has become perhaps the pivotal issue affecting food today,

but in the future, it may well have an even greater impact on how and what

kinds of edibles consumers purchase. According to a study by the Natural

Marketing Institute (NMI), demographic factors ranging from gender to

ethnicity are playing a larger role in how consumers choose products they

associate with wellness. Increasingly, they are looking for the wellness

products relevant to their lifestyles. The most important categories where

sustainable foods were considered relevant are bakery & cereals, dairy

foods and ready meals.

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The lifestyle trend of Filipinos is more on eating healthy foods. Fruvé

Company’s products will keep pace of the trend. Healthy muffins will

cater to those consumers who are into healthy diet.

5. Technological

The most dramatic force shaping our destiny is technology. The

company will have an innovative business by means of the latest food and

manufacturing, machinery, equipment, and technology related to food

processing, handling, and packaging that will be used.

Fruvé Company is ready to accommodate its target markets by making

and delivering the trusted products and ideal quality service to each one of

them. New recipes will be also produced. It will be a WIFI zone in the

company.

Fruvé Company will have an official website and account in Facebook

and Twitter. These will provide hyper-detailed data to the consumers. The

company hopes to use these social networks to interact with consumers

and become part of their conversations and lives. It will also help in

bringing the company’s products to different markets all over the world.

6. Natural

Fruvé Company will help in preventing environmental problems by

interacting with the Department of Agriculture. The packaging that the

company will be using is recyclable. This will help in reducing waste in

the environment.

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The establishment ensures the highest quality and freshness of all its

baked goodies, all products are baked from scratch in small batches. And

because everything is baked the old-fashioned way, there’s no need for

any additives or stabilizers. The company uses only the best dairy

products, and top quality fruits for our wide array of sweet and savory

products. Unlike many conventional bakeries, none of the products use

substitutes, and all are 100% preservative-free.

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C. Porter’s Framework Analysis

Threat of New Entrants

a. Existing loyalty to other suppliers of muffinsb. There is a little research and development cost

earned prior to starting the businessc. Significant amount of assets needed

Barriers of Entry:

a. Benefits associated with bulk purchasingb. Expensive to enter the industryc. Government policies and taxation

Bargaining Power of Suppliers

a. There are limited suppliers of muffins present in the industry.

b. Switching to another product (competitive) is very costly.

c. The supplying industry has a higher profitability than the buying industry

Bargaining Power of Buyers

a. Large number of buyers in the industry.b. Purchases small volume.c. Switching to another product (competitive) is

not costly.d. Coffee shops are price sensitive.e. Homogeneous products.

Threat of Substitutes

a. Buyers are willing to substitute.b. It is easy for coffee shops to switch form one

substitute to another.c. Includes other pastries such as cupcakes,

breads, cakes, crepes, etc… that are sold in different stores or suppliers.

Competitive Rivalry within the Industry

a. Commodity productsb. Low switching costs and

customer loyaltyc. Exit barriers are low; they will

be able to get out again.d. Ingredients used are more

beneficial than others.

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THREAT OF NEW ENTRANTS

As Michael E. Porter described in his book, new entrants to an industry

bring new capacity, the desire to gain market share, and often substantial

resources. One of the defining characteristics of competitive advantage is the

industry's barrier to entry. Industries with high barriers to entry are usually too

expensive for new firms to enter. As a result, prices could be bid down or

incumbents’ costs inflated hence reduce profitability. Moreover, the threats of

entry into an industry depend on the barriers to entry. If barriers are high

and/or the newcomer can expect sharp retaliation from entrenched from

competitors, the threats of entry is low.

There is an existing loyalty to major brands. The competition on market is

high thus the company need to pace with Muffins by Doris which baked in old

fashioned way and 100 % preservative free; Mrs. Fields which uses the finest

ingredients; and The Muffin House that also baked healthy muffins.

The threat of new entrants is high as there are relatively low barriers to

entry. First, the initial capital is expensive for buying raw materials,

equipment, rent for commercial space and salaries of employees. Secondly,

there is little research and development cost incurred prior to starting the

business. Thirdly, product differentiation is present though it is hardly to

avoid many businesses sell the same products having same flavors of

muffins. Lastly, the ability to access effective distribution channels presents a

greater threat to new entrants. The two main determinants of a new company's

success is the company’s ability to acquire sufficient distribution channels to

cover operating costs and their ability to build up brand recognition and

loyalty.

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New entrants have to have the economics scale to be competitive. In order

to compete with best muffins, they require an initial investment that is

expensive that has a high switching cost. Hence, the barriers to entrants are

high. It is only reasonable that many new players are trying to venture into

this market. The heavy initials investments and difficulties in sourcing

sufficient qualities and quantities of muffins might prompt new entrants to

restrict themselves to small regional chains. The company will have a long-

term contract to bulk buying purchases. They have their own strategies in

order to gain many customers.

BARGAINING POWERS OF SUPPLIERS

The term “suppliers” comprises all sources for inputs that are needed in

order to provide goods and services. Suppliers are the businesses that supply

materials and other product into the industry. The cost of items bought from

suppliers can have a significant impact on a company profitability. If suppliers

have high bargaining power over a company, then in theory the company

industry is less attractive. The bargaining power of suppliers will be high

when many buyers and few dominant suppliers exist in the market and when

there are undifferentiated, highly valued products.

Fruvé Company must ensure that the flavors and quality of the muffins it

offers to its clients must always be the same. The company must also focus on

service quality.

Buyer power looks at the relative power a company's customers has over

it. When multiple suppliers are producing a commoditized product, the

company will make its purchase decision based mainly on price, which tends

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to lower costs. On the other hand, if a single supplier is producing something

the company has to have, the company will have little advantage to negotiate a

better price.

Switching to another product is very costly because purchasing raw

material and other supplies may affect the value of prices if the supplier of

raw materials is powerful.

BARGAINING POWERS OF BUYERS

There are two types of buyer power. The first is related to the customer's

price sensitivity. If each brand of a product is similar to all the others, then the

buyer will base the purchase decision mainly on price. This will increase the

competitive rivalry, resulting in lower prices, and lower profitability.

The other type of buyer power relates to negotiating power. Larger buyers

tend to have more influence with the firm, and can negotiate lower prices.

When there are many small buyers of a product, all other things remaining

equal, the company supplying the product will have higher prices and higher

margins. Conversely, if a company sells to a few large buyers, those buyers

will have significant influence to negotiate better pricing. If one customer has

a large enough impact to affect a company’s margins and volumes, then they

hold substantial power. When there are a small number of buyers, they will

tend to have more power over suppliers. Larger buyers will have more power

over suppliers. In addition, when a customer purchases a large quantity of a

suppliers output, it will exercise more power over the supplier.

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A large number of buyers purchase a large volume in the food and

beverages industry. Consumers are price sensitive. For this reason, it is easy

for them to find substitute as they want to.

THREAT OF SUBSTITUTES

This is probably the most overlooked, and therefore most damaging,

element of strategic decision-making. It's imperative that business owners not

only look at what the company's direct competitors are doing, but what other

types of products people could buy instead.

In Porter’s model, substitute products refer to products in other industries.

To the economist, a threat of substitutes exists when a product’s demand is

affected by the price change of a substitute product. Substitutes products

affect a product’s price elasticity – as more substitutes become available, the

demand becomes more elastic since consumers have more alternatives.

When switching costs (the costs a customer incurs to switch to a new

product) are low the threat of substitutes is high. As is the case when dealing

with new entrants, companies may aggressively price their products to keep

people from switching. When the threat of substitutes is high, profit margins

will tend to be low.

Since buyers are willing to substitute, if the substitute product is cheaper

than the industry’s product, more likely they would patronize it because of the

consumers are price sensitive. If the price of muffin rises substantially, a

customer is likely to switch over to a cupcake, brownies, cookies and the like

because the products are so similar. If substitutes are similar, then it can be

viewed in the same light as a new entrant.

Page 110


COMPETITIVE RIVALRY WITHIN THE INDUSTRY

Rivals are competitors within an industry. Rivalry in the industry can be

weak, with few competitors that do not compete very aggressively.

Alternatively, it can be intense, with many competitors fighting in a cut-throat

environment.

Highly competitive industries generally earn low returns because the cost

of competition is high. For many industries, this is the major determinant of

the competitiveness of the industry. Sometimes rivals compete aggressively

and sometimes rivals compete in non-price dimensions such as innovation,

marketing, etc. Products that are relatively the same will compete based on

price. Brand identification can reduce rivalry.

The industry will not be balance without the competition of its rivalries.

Muffins by Doris, The muffins house, and Mrs. Fields are the top competitors

of the company. A large numbers of firms increase rivalry because they must

compete with the same costumers and resources leading to a struggle to

potentials threats. What is important here is the number and capability of the

company’s competitors. If the company has many competitors, and it will

offer equally attractive product and services, then the company most likely has

little power in the situation, because suppliers and buyers will go elsewhere if

they will not get a good deal from the company. There would be no dominant

firm to rise up unless the company will produce a unique product that will

surely make the costumer to patronized it for a long period of time.

Page 111


D. Discussion of Survey Results

The researchers conducted surveys with 20 respondents. The survey

involved respondents from coffee shops in Quezon City. In the appendix is the

sample of the questionnaire used for the consumer surveys.

100%

Taste and Quality

YesNo

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Flavor

Very delicious Delicious Average It doesn's suit me but others

may like it

I don’t like it at all

0

1

2

3

4

5

6

7

8

9

10

30%

50%

20%

20% 0

100%

Familiarity of the Product

YesNo

Page 113


100%

Willingness to Purchase

YesNo

75%

Price

Expensive

Just Right

Page 114


75%

Supplier of Muffins

ManufacturerSelf-Made

Frequency of Order

Daily Weekly Monthly0

2

4

6

8

10

12

14

16

18

90%

10%20%

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50%

Mode of Payment

15 Days30 Days

The results of the market survey show that the muffins passed the

standards of the respondents. Majority of the coffee shops are not selling

muffins as one of their side dishes. Still, they are willing to buy the product in

bulk.

On the other hand, the only contentious issue is the price; with 25% of

possible coffee shops, saying the price is expensive; and 75% said it is just

right. The respondents will purchase in daily basis to ensure the freshness of

the product. Mode of payment of the coffee shops is cash on hand in every

15th of the month.

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III. OPPORTUNITY AND ISSUE ANALYSIS

A. SWOT Analysis

STRENGTHS WEAKNESSES

Location

Up to date computer systems,

and communication ability

Health benefits can be obtain

from consuming the product

Advertising

Abundant availability of raw

material

Ever increasing competitors in a

growing market

Limited budget

Food is perishable, hence costly

investment and utilities due to

storage

High requirement of working

capital

Seasonality of raw material

OPPORTUNITIES THREATS

Technological advances

Geographic location

New healthy flavors

Could develop new recipes

Job opportunities

Consumer trends toward more

healthy ways

New competitors in the industry

Highly saturated and challenging

industry

Falling purchasing power of

consumers

High inventory carrying cost

Slowing economy with higher

levels of inflation

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B. Competitive Advantage

1. Fruvé Company uses healthy ingredients to produce a genuine healthy

product.

2. Its entire product is all Filipino-made, Fruvé Company has no imported

products, but it has the same quality like that of the imported ones, an

advantage on avoiding high taxes.

3. The company has a direct supplier of fresh ingredients.

4. The company assures a good relation with their partners through giving

discounts, sponsorship and other freebies.

5. The company watches the calorie, fat, and sugar level of each product that

is not on the other muffin producing company.

IV. KEY MARKETING STRATEGIES

A. Target Market

According to Kotler and Armstrong, a target market is consist of a set of

buyers who share common needs or characteristics that the company decides

to serve. The decision of selecting target segments can be assessed by looking

at market factors, competitive factors, and political, social, and environmental

factors. Price, bargaining power of customers and suppliers, and barriers to

entry all comes under the market factors. The ideal customers of Fruvé

Company are coffee shops namely: Bubble Tea, KoCCo Bakery and Café,

Baang Coffee Shop, Dezaato Pan Breads Sweet Café, and Coffee Beanery.

Market Definition and Segmentation

Target marketing can be done in four different ways: undifferentiated,

bifurcated, differentiated, and concentrated. Concentrated (or niche)

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marketing directs its efforts towards a single market segment and creating and

maintaining an exclusive strategy for each segment. Bifurcated marketing

contains two major market segments. In undifferentiated (or mass) marketing,

the firm ignores market segment differences and targets the whole market

with one strategy.

Fruvé Company uses the undifferentiated marketing strategy, wherein it

will goes after the entire market with one market offer. The company will

focus on what is common in the needs of consumers rather than on

differences.

Based on geographic factors, coffee shops that were chosen are those that

are near to our factory premises in Quezon Avenue. It includes West Avenue,

Tomas Morato Avenue, and Banawe respectively.

B. Product Positioning

With the help of the survey, we identify that there are more respondents

who are interested in buying muffins as their new product in their coffee

shops. The company’s products should develop more awareness about the

health benefits of eating muffins to the public and create a good image by

having good and quality product. The company must get the customer’s mind,

public word of mouth, and their loyalty.

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C. Marketing Strategies

Create Awareness

Another way to spark interest for the company’s products is to conduct a

campaign designed to promote their products in as many ways as possible.

The most strategic way of marketing of a certain product is thru word of

mouth and to be on top of mind of the consumers. The company will create

buzz by blanketing the local airwaves, print space, and other advertising

mediums with its name, logo, and products.

Leverage Emotions

No matter what they say, the buying decision is emotional for many

customers. The key is to create a campaign that makes consumers feel

themselves, the company and the decision to buy the company’s product.

Overcome Objections

The task of overcoming a buyer’s objections is usually assigned to the

sales team. However, a well-crafted marketing campaign can work toward

overcoming the customer’s buying obstacles before they walk in the door. A

marketing strategy that emphasizes warranties, testimonials, endorsements,

and other positive reinforcement devices cannot only make the buying

decision easier for the customers but also to attract new customers who hadn’t

previously considered buying muffins in the business.

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Set a Deadline

People respond to deadlines. Marketing strategies designed around the

idea of limited supplies, temporary price reductions, or other mechanism that

create a sense of urgency can provide a quick influx of customers and can

potentially jumpstart a business suffering from a diminished customer base.

Pricing Strategy

The pricing strategy part of the marketing plan involves determining how

you will price your product or service; the company’s price charge will be

competitive but will still allow the company making a reasonable profit.

V. DISTRIBUTION CHANNELS

END CONSUMERS

MANUFACTURER

(Muffin Production)

COFFEE SHOPS

(Bubble Tea, Coffee Beneary, KoCCo Bakery and Café, Dezaato Pan Breads

Sweet Café, Baang Coffee Shop)

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VI. DEMAND AND SUPPLY ANALYSIS

Demand and supply are two basic forces in the market. The economic law of

supply and demand reveals the direction of prices depending on the movement of

both supply and demand.

Projected Demand:

The primary target market of the company is coffee shops. Quezon Avenue was

chosen because of its strategic location with the coffee shops near the area.

The projected demand of coffee shops for muffins is three boxes per day. This is as follows:

DEMAND PROJECTIONSDaily Monthly Yearly

3 boxes 90 boxes 1, 080 boxes

Estimated Supply:

Company production, at maximum capacity, is equivalent to 15 boxes per day.

Maximum monthly production is at 450 boxes. Yearly maximum production is at

5,400 boxes.

SUPPLY PROJECTIONSDaily Monthly Yearly

15 boxes 450 boxes 5,400 boxes

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Comparison between Demand and Supply:

Actual production would not be always set to full capacity to prevent spoilage

and wastage. Production quotas are fixed in accordance to the demand of the

product.

The capacity utilization rate of the production could be attained by comparing

the projected demands to the full capacity (supply) of production.

VII. ACTION PLAN

Activity Time Responsible Person/s

Objective Budget

Product sampling in coffee shops and in malls near Quezon Avenue.

August - September

Product Director and Marketing

Communication Director

Introduce the product in the market

P10,000.00

Creation of Web Site, and social networks such as Facebook and Twitter in order to create awareness to the public.

August Sales Director Create product

awareness to the public

Distributions of leaflets and brochures and display of tarpaulin in the production site

October Sales Director and Marketing

Communication Director

Attract sales P20,000.00

Free jackets for every purchase

November -

Sales Director Customer Loyalty

P5,000.00

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of 6 boxes of muffins

December

Expansion of the company in Manila

January President Increase target market

and sales

P10,000 (part of

operating expense)

TOTAL P45,000.00

A. Place / Distribution

MONTH ACTIVITY RESPONSIBLE/

PERSON IN-CHARGE

EXPECTEDOUTCOME

BUDGET

October 2011

DistributeFlyers to the consumers

around Quezon Ave. and

West Ave.

Sales Department

Consumers will be aware

of the Company’s muffins and

its logo.

P50,000

October-November

2011

Offer promotional marketing

like training or team

building.

Sales Department

Increase in product

recognition and increase

in sale

P360,000

October-December

2011

Fruvé Company will offer

VIP cards to the

consumers if they are half a year and above member of

the company.

Sales Department and

Operations Department

Increase in product

recognition and increase

in sale.

P850,000

TOTAL P1,260,000

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B. Promotional and Advertisement

Advertisement is a good way to make the company be known by its target

market.

Odd Pricing

Price based on the quality of the company’s product will be used. It will

encourage the buyer to purchase the product even with a higher price than the

competitors because the consumer knows that the company’s product contains

good qualities.

Advertising Plan

The team must be committed to produce products that go hand on hand

with the commitments of the consumers. Moreover the products are meant to

be produced in an ethical manner respecting the needs and values of

consuming public.

1. Website

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A website is the best way to inform clients of specials or sales that

a business is offering. This will help increase a business’ revenue. It is

important for a business to keep clients updated with the latest news,

services and products.

2. Social Networking

The Social Media is becoming one of the best ways to promote

products in today’s world such as Facebook, Twitter, and Tumblr etc.

https://www.facebook.com/Fruvee-Corporation

http://twitter.com/FruveeCorp

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3. Sponsorship

Sponsorship is a great way to promoting Muffins because target

customer of muffins will be aware on what kind of product are their

offer.

2nd

FINEX Fun Run

September 25, 2011

SM Mall of Asia

4. Flyers with Discount Coupons

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The employees of the company will give flyers together with the

coupon for the customers to be enticed to go on Fruvé Company.

VIII. MARKETING SUMMARY

A. Product

The product is an innovative and nutritious muffin. It is made up of the

finest ingredients, having no preservatives at all. Fruits as one of the

ingredients contain healthful benefits for the consumers. It is packed in

boxes of 12 pieces each.

B. Price

The suggested retail price is P240.00 per one box containing 12 pieces

of muffins, or P20.00 per one piece. The wholesale price is P180 per box

for bulk orders.

The price is competitive in comparison with the other pastries being

sold in coffee shops. The price of the muffins maybe slightly higher but

the product has a value-added quality compared to its major competitors.

C. Promotions

Since the company is a “new entrant” in the industry, it places high

priority on promotional activities. These activities include product

introduction through free tastes in various coffee shops, through social

networking, and other freebies.

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D. Place

The target markets are the Baang Coffee Shop, Dezaato Pan Sweet

Breads, Bubble \Tea, KoCCo Bakery and Café, and Coffee Beanery.

These coffee shops are located near the company which is situated in

Quezon Avenue.

E. Packaging and Labeling

Product packaging is a recyclable box which can hold 12 muffins. The

product must be kept in a coll temperature to preserve its freshness upon

delivering to the coffee shops. Labels include the name of the company

together with its logo.

IX. IMPLEMENTATION AND CONTROL

The company will provide a value creating services that highly prioritize the

emotional and social aspects of its patrons. It will target the common mistake of

pricing strategy, which is quality; not only quality but also the natural bonding

that the trained workforce can induce would automatically replace the issue or

money to issue of companionship. In this aspect, the human resource training

head proposes that the service will be deemed an integral part of life by the

customers that can segregate the company from the profit based competition and

ultimately enhance the intangible aspects like reputation.

By such planning of the sales and marketing head, the company will enhance

and increase its popularity by creating an all-out and aggressive promotions and

advertisements that would intensity the thought that Fruvé Company is not the

usual that they know. It will create questions on the mind of the people like

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“what’s new” and ‘what’s latest about Fruvé Company. It will entice the

wandering minds of the people.

SOCIO-ECONOMIC ASPECT

“The greatest wealth is health”. Everyone needs a healthy eating habit for a better and longer

life. Though, most people are aware of the importance of healthy eating habits, only a few tend

to follow them. Most tend to realize the importance of healthy eating, only when they get sick.

Taking care of ourselves and attaining good health has far-reaching benefits. It greatly lowers

our risk for serious illnesses. Think of the savings in medical costs. Our work productivity goes

up, making us better individuals, our personal relationships improve and we start having fun

again. Imagine having enough energy to do everything you want to do and loving every minute

of it because you are healthy. In case of Fruvé Company, the proponents will make a conscious

attempt to promote the well-being of the society.

For a business to become successful, it should create a greater sustainability development.

The business begins to create and follow guidelines to implement the concept of corporate social

responsibility within the company and its surrounding community.

The following are social beneficiaries of the establishment and operations of Fruvé

Company:

A. Government

Job generation. The biggest problem of the Philippines is the increasing number of

unemployment. Thus, putting up this business gives opportunity for families to earn

living and it lessens the burden of the government.

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Prompt and correct payment of taxes. The business gives a great contribution to the

government because of the money paid in the form of taxes. These taxes can be paid

in different forms such as the yearly corporate profit (income tax), permits, licenses,

and the 12% EVAT. While the company gain profit, it adds up to the Gross National

Product of the country that could be used for social services like education, health

care, infrastructure, housing, etc...

Adherence to laws, including environmental laws on waste management labor

standards and relations, etc. Implementing proper disposal of waste and following

the laws will protect the welfare of the public and promote industrial peace.

B. Employees

Monetary benefits. Giving a financial security on our employees, the company

offered and provided sufficient wages, salaries and benefits to employees in return of

the services they provide to the organization. Bonus is paid to the employees during

festive seasons to motivate them

Social welfare. Every employee is given various social welfare institutions to enhance

their condition and for urgent need. This includes salary and calamity loans, Social

Security Service, PhilHealth, and PAG-IBIG fund.

Job experience and work knowledge. Orientations and training were being provided

to our hired employees as they gather job experience to enhance their skills that help

them become productive member of the organization

C. Customer

Health benefits and Nutrition. Customer’s health is our greatest concern that is why

Fruvé Company patronizes nutritious foods. To ensure customer satisfaction, the

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company guarantees fresh ingredients that processed meticulously until it come up

with a quality product.

Affordable price. The company stick to a pricing system which every customer can

afford to buy.

D. Community

Socio-Economic Aspect. The goal of Fruvé Company is to support students in gaining

respected training participation in the operation of a small baking business. Students

experience the many steps it takes to run a business and the pride that accompanies

success. They learn food preparation, baking, operating baking equipment, workplace

cleanliness, customer service and teamwork.

Fruvé Company is committed to the protection of the environment. As a producer of

packaged goods, the company is committed to resource conservation, product

stewardship, and the principles of shared responsibility for packaging. It is the policy

of the Company to take all practical steps whilst handling, processing and disposing

of all materials in a responsible manner without creating unavoidable risks to human

health or the environment and to comply with all appropriate standards and relevant

legislation.

E. Proponents

Through this study, the proponents seek to gain knowledge on how to manage and

run a business successfully. This practical operation for the students offered by the

company is needed in their growth as future productive members of society-either as

employees, entrepreneurs or civic leaders.

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Documents

Fruvee Co