DocumentFS

Colegio De San Juan De LetranCollege of Business Administration and Accountancy

Colegio de San Juan de Letran

Intramuros, Manila

A Feasibility Study

on Vegetable Delights

In Partial Fulfillment of the Requirements

for the degree of Bachelor of Science in Business Administration

major in Entrepreneurship

Presented to the faculty members of

College of Business Administration and Accountancy (CBAA)

Presented by:

Tino-Paolo T. Andaya

Ryan Jude G. Ponce

March 2009

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TABLE OF CONTENTS

Title Page

ACKNOWLEDGEMENT 4CHAPTER I – Summary of The Project 5

A. Name of the Firm 5B. Location 5C. Brief Description of the Project 6D. Project Summary 7

Marketing Aspect 7Technical Aspect 7Management Aspect 8Financial Aspect 8Socio-Economic Aspect 9

CHAPTER II – Introduction/Background of the Study 10Objectives of the Study 10Operational Definition of Terms 11Scope and Limitation of the Study 12

CHAPTER III – Market Study 13Objectives of the Study 13Methodology 14Demand & Supply Analysis/Gap 16Projected Sales/Market Share 21Marketing Strategies 25

CHAPTER IV – Technical Study 28Objectives of the Study 28Uses of the Product 28Process Flowchart 29Description of the Process 33Production Schedule 35Material Balance 38Production Capacity 42Raw Materials 44Equipment / Other Materials 45Plant Layout & Location 46Direct Labor Requirements 49Utilities 49Waste Disposal 49

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CHAPTER V – Mangement Study 50Objectives of the Study 50Form of Busines Organization 50Capitalization 51Organizational Structure 51Organizational Policies 53Job Requirements & Compensation 60Legal Requirement 62Gantt Chart 63

CHAPTER VI – Financial Study 64Objectives of the Study 64Total Project Cost 64Capitalization 65Sources of Financing 65Assumptions 66Financial Statements 67Financial Statement Analysis 68

CHAPTER VII – Socio-Economic Aspect 70Contribution to Phil. Economy 70Employment Generation 71Desirability 72

Appendices 72

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ACKNOWLEDGEMENT

We would like to thank all the people who made our feasibility study

well-crafted and improved.

The Lord God for all His blessings, guidance and the gift of knowledge

to this study.

Mr. Raem Mendoza, our RM1 and RM2 professor, for all his untiring

suggestions and feedbacks on our research.

Mrs. Liza Belmonte, our panel chairman, for the suggestions and

comments for the help of improving our work.

Mr. Henry Junio, our only one adviser, for all the suggestions,

improvements, revisions and encouragement for us to make our

feasibility study successful.

and to the EN4A blockmates for all the support and suggestions that

makes our study well-improved.

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CHAPTER I

Summary of the Project

A. Name of the Firm

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

“first” ; and “pro-to-life” meaning “first to life”. The very reason why the

company is named “Protolife” because the firm’s topmost concern is to

promote life itself through offering products mixed with vegetables, and is

represented by the brand name Vegelights (Vegetable Delights) products.

B. Location

The head office/factory is located in one of the proponent’s residence

in 42 Red St., Goodwill 2 Subdivision, Brgy. BF Homes, Sucat, Paranaque

City. Processing functions will take place in the spacious 20 square meter

sized kitchen area of the residence. The actual stall/outlet is given for free to

the proponents by a relative, in which it will be for the products to be sold and

distributed, located in Dr. A. Santos Avenue, Brgy. BF Homes, Sucat,

Paranaque City, wherein, it is accessible by all means of public and private

transportations.

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C. Brief Description of the Project

The proposed business will focus on producing well-known

homemade delicacies and transform such into vegetable-mixed products

namely: dried and sweetened vegetables (kamote and gabi), vegetable

polvoron (carrots, malunggay and kamote flavors), vegetable pastillas

(papaya, malunggay and squash flavors) and vegetable pancake (kangkong

and malunggay flavors). All these variety of products on a homemade style.

Protolife gave the brand name of Vegelights for the goods that will be

produced. The firm aims to start reaching out to young people, instilling them

that vegetables can be mixed to well-known delicacies, in more chewable

form. The main target market of these products are male and female, ages 5

and above, living within the households of Barangay BF Homes and

neighboring schools and establishments in the said barangay in Paranaque

City. In this partnership form of business organization, financial investments

will focus on the basic ingredients and materials to be needed in the process

like flour, butter, sugar, eggs, milk (condensed, evaporated and powdered);

and the vegetable ingredients such as: kangkong, malunggay, kamote,

papaya, gabi, squash and carrots; salaries and wages to workers, business

registrations, supplies, equipment, machinery and expenses on utilities. The

firm will be hiring four (4) additional workers in the production system.

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D. Project Summary

Marketing Aspect

The products’ target market are male and female, ages 5 and above,

living within the households and neighboring schools and establishments

within Barangay BF Homes in Paranaque City. The distribution process of

the products will be from the producer to the consumers. At the start of

operation, promotional measures will be done by making and distributing

product brochures/leaflets within the location or the households, or whoever

passes by within the location. The firm would also formulate expansion plans

by becoming a concessionaire to groceries and supermarkets, and by joining

exhibits to also promote its products.

Technical Aspect

Since the firm is just starting, its rundown for the additional number of

manpower/labor aside from the two proponents are four (4). The four

workers will be assigned on each products: pastillas, polvoron, dried &

sweetened and pancake. The main vegetable ingredients to be used in

these products are the following: kangkong, malunggay, squash, papaya,

kamote, gabi and carrots. There will be only few materials/equipments to be

used in the production like the hand-held mixer and the basic utensils such

as mixing bowls, peeler, polvoron molder and beater. Packaging for the

products are transparent cellophane wrappers for clear appearances of these

vegetable-mixed food products and clear plastic wrappers.

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Management Aspect

Protolife is a partnership form of a business organization, headed by

two (2) partners. Mr. Tino-paolo Andaya as the company’s general manager,

and Mr. Ryan Jude Ponce as the assistant general manager. As a starter,

there will be four (4) additional workers, as mentioned and described in the

technical aspect. The organizational structure will be from the general

manager, to the assistant general manager, to the supervisor and down to

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

specifications, qualities and requirements in order to be hired.

Organizational costs of the firm will be derived from various business

registration fees, namely on: Securities & Exchange Commission (SEC),

Department of Trade & Industry (DTI), Bureau of Internal Revenue (BIR) and

the local municipal hall for mayor’s permit and other business licenses.

There will be some pre-operating activities to be undertaken such as

business registration for the legality of its existence, hiring and labor

orientation.

Financial Aspect

The parents of the proponents gave them an equal amount of money

and they decided to invest it in this business venture. It will also serve as

their initial capitalization and source of funds for the project. The amount

already covers registration fees for the business organization, utilities,

salaries and wages and other production cost; the amount also includes a

contingency fund for the business. On the financial study, there will be a 5-

year projected income statement, cash flow statement, balance sheet and

financial statement analysis.

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Socio-Economic Aspect

The firm would be able to contribute to government through taxes

derived from its sales. The consumers would benefit health-wise from its

vegetable ingredients, than the usual diabetes-causing delicacies. The firm

aims to promote its products through livelihood programs, at the same time,

giving jobs for the unemployed.

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CHAPTER II

Introduction/Background of the Study

Brief Background of the Study

Most goodies, especially delicacies being sold to the market today, are

just plain simple sugary, strong-tasting and has food additives. Protolife is

producing products named Vegelights (in short for Vegetable Delights) in

order to be unique and innovative in terms of the usual sweets. Young

people, mostly children, loves sweets such as polvoron and pastillas de

leche because of its taste of being sweet and delicious. The newly

established firm intends to promote and sell vegetable goodies, in more

chewable and tasty form. The firm’s target market will be from 5 years old

and above, male or female, living within the households and nearby schools

and establishments in the barangay. The firm will be using a lot of

vegetables, namely: kangkong, malunggay, gabi, papaya, kamote, squash

and carrots. The reason why the company chose these vegetables is

because they are easy to acquire from local wet markets or groceries near

the factory, and also because of their very strong health benefits. Mostly,

these choice vegetables possess Vitamins A, B, C, E, K and Potassium

contents.

Objectives of the Study

• To be able to describe the business proposal.

• To be able to determine if the business is viable.

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• To be able to find out whether to pursue this business in the near

future or not.

Operational Definition of Terms

Contingency Fund – A reserve set aside against unforeseen expense.

Delicacy – The quality of being delicate. Something pleasing and appealing,

especially a choice food.

Direct Labor – These are wages or salaries given to the workers who

directly produces or manufactures the finished product or goods.

Direct Materials – These are the raw materials that are traceable to the

finished product.

Manufacturing – It is the process of converting raw materials into finished

products.

Organization – Group of people working to achieve common goals.

Overhead – These are non-labor, indirect manufacturing expenses such as

utilities, supervisor’s salaries, property tax, rent, gas and oil, etc.

Pre-Operating Activities – These are set of activities that has to be

undertaken before the actual operation sets in.

Target Market – The group or area of concentration for the selling of the

products; the potential buyers.

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Technical - Relating to the technique or proficiency in a practical skill.

Scope and Limitation of the Study

This project study will be focusing only on producing vegetable food

products namely: vegetable pancake, dried and sweetened vegetables,

vegetable pastillas and vegetable polvoron with the use of these following

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

carrots. This study will also limit on the five (5) major aspects of a feasibility

study: Management, Marketing, Technical, Financial and Socio-Economic

aspects.

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CHAPTER III

Market Study


• To be able to develop good marketing strategies for the business

using the 4 P’s in marketing.

• To be able to determine the demand and supply situation for the

past five (5) years.

• To be able to identify the consumer public’s taste and preferences

with regard to the product that will be sold.

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

• To be able to give projections on the product’s future demand and

supply situation, and its sales for the next five years.

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Methodology

The proponents used indirect method as its main methodology in

gathering data. Indirect method is by giving out survey questionnaires within

the location to determine the preferences of the consumer public on an

existing related product. To be able to determine the number of sample

respondents, the firm used the Slovin formula. The computation is as

follows:

where: n = sample size n = N______

N = total population 1 + N (e)2

1 = constant number

e = margin of error

Under this observation, the proponents acquired a census of

Paranaque City from the National Statistics Office (NSO) since it is already

the actual number of population for the year 2007. Under the city of

Paranaque, the area of dispersion of the products is in one of its most

populous barangays, the Barangay B.F. Homes which has 80,316 total

population.

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SURVEY QUESTIONNAIRE

Name (Optional)_________________ Age______ Sex_______

1. Do you eat delicacies ?__ Yes __ No

2. What delicacy do you usually buy?__ Pastillas __ Dried and Sweetened Fruits__ Polvoron __ Others (pls. specify)

3. Where do you usually buy delicacies?__ Pasalubong Stalls __ Bakeshops__ Local Grocery/Supermarket __ Street Vendors __others (pls.specify)

4. How much do you spend per purchase?__ PhP 50 and below __ PhP 76 – 100 __ PhP 51 – 75 __ 101 and above

5. What flavors do you usually buy for the following delicacies?Pastillas: Polvoron:__ de Leche __ chocolate__ de Ube __ milky__ Others (pls. specify) __ others (pls. specify)Dried & Sweetened goods Pancake:__ Mangoes __ chocolate__ Coconut __ ordinary-flavored__ Others (pls. specify) __ others (pls. specify)

6. How often do you buy delicacies ?__ Most of the time __ Sometimes __ Seldom

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

8. Are you willing to try our delicacies?__ Yes __ No

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9. If the product is already available in the market, will you have the intention to purchase it?__ Definitely will buy __ Will buy __ Definitely will not buy

Thank you very much and God bless you!

Demand & Supply Analysis/Gap

Historical Demand

Table 3.1

Year Competitor2004 37,9642005 38,7392006 39,5302007 40,3372008* 41,160

Source: Sasmuan Delicacies, Paranaque City

(* - Estimated Value)

Computation for Historical Demand:

Year 2008 42,000 x .02 = 840

42,000 – 840 = 41,160

Year 2007 41,160 x .02 = 823.2

41,160 – 823.2 = 40,337

Year 2006 40,337 x .02 = 806.74

40,337 – 806.74 = 39,530

Year 2005 39,530 x .02 = 790.6

39,530 – 790.6 = 38,739

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Year 2004 38,739 x .02 = 774.78

38,739 – 774.78 = 37,964

Projected Demand

Table 3.2

Year Demand2009 41,9592010 42,7582011 43,5572012 44,3562013 45,155

Computation for Projected Demand:

To be able to compute for the projected demand, use the Arithmetic

method. Yn stands for final value and Yc stands for the initial value of the historical

demand. Then, the difference of the two will be divided from a constant value, n – 1

(5 – 1) which is 4. This method also applies to historical supply and projected

supply.

A = Yn - Yc

n - 1

A = 41,160 – 37,964

5 – 1

A = 3,196 = 799

4

Year 2009 41,160 + 799 = 41,959

Year 2010 41,959 + 799 = 42,758

Year 2011 42,758 + 799 = 43,557

Year 2012 43,557 + 799 = 44,356

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Year 2013 44,356 + 799 = 45,155

Historical Supply

Table 3.3

Year Competitor2004 30,3722005 30,9922006 31,6242007 32,2692008* 32,928

Source: Sasmuan Delicacies, Paranaque City

(* - Estimated Value)

Computation for Historical Supply

Year 2008 33,600 x .02 = 672

33,600 - 672 = 32,928

Year 2007 32,928 x .02 = 658.56

32,928 – 658.56 = 32,269

Year 2006 32,269 x .02 = 645.38

32,269 – 645.38 = 31,624

Year 2005 31,624 x .02 = 632.48

31,624 – 632.48 = 30,992

Year 2004 30,992 x .02 = 619.84

30,992 – 619.84 = 30,372

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Projected Supply

Table 3.4

Year Supply2009 33,5672010 34,2062011 34,8452012 35,4842013 36,123

Computation for Projected Supply:

A = Yn - Yc

n - 1

A = 32,928 – 30,372

5 – 1

A = 2,556 = 639

4

Year 2009 32,928 + 639 = 33,567

Year 2010 33,567 + 639 = 34,206

Year 2011 34,206 + 639 = 34,845

Year 2012 34,845 + 639 = 35,484

Year 2013 35,484 + 639 = 36,123

Demand & Supply Gap Analysis

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Year Demand Supply Gap2009 41,959 33,567 8,3922010 42,758 34,206 8,5522011 43,557 34,845 8,7122012 44,356 35,484 8,8722013 45,155 36,123 9,032

The demand and supply gap analysis is executed by subtracting the

projected demand and projected supply of each respective years of

projection.

Projected Sales

Year 2009

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Product Annual

Capacity

Units Sold Selling Price Sales

Malunggay

Pastillas

31,200 28,080 PhP 9.90 PhP 277,992

Squash Pastillas 31,200 28,080 9.90 277,992Papaya Pastillas 31,200 28,080 9.75 273,080Carrot Polvoron 24,960 22,464 12.90 289,786Malunggay

Polvoron

24,960 22,464 12.60 283,046

Kamote Polvoron 24,960 22,464 12.60 283,046Dried Kamote 15,600 14,040 17.10 240,084Dried Gabi 15,600 14,040 17.10 240,084Kangkong

Pancake

9,360 8,424 32.85 276,728

Malunggay

Pancake

9,360 8,424 32.85 276,728

Total PhP 2,718,566

Year 2010

Product Annual

Capacity


Malunggay

Pastillas

34,320 30,888 PhP 10.90 PhP 336,679


Polvoron

27,456 24,710 13.90 343,469


Pancake

10,296 9,266 36.15 334,966

Malunggay

Pancake

10,296 9,266 36.15 334,966

Total PhP 3,293,850

Year 2011

Product Annual Units Sold Selling Price Sales

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CapacityMalunggay

Pastillas

37,752 33,977 PhP 12 PhP 407,724

Squash Pastillas 37,752 33,977 12 407,724Papaya Pastillas 37,752 33,977 11.85 402,627Carrot Polvoron 30,264 27,238 15.65 426,275Malunggay

Polvoron

30,264 27,238 15.30 416,741


Pancake

11,232 10,109 39.80 402,338

Malunggay

Pancake

11,232 10,109 39.80 402,338

Total PhP 3,991,648

Year 2012

Product Annual

Capacity


Malunggay

Pastillas

41,496 37,346 PhP 13.20 PhP 492,967


Polvoron

33,384 30,046 16.85 506,275


Pancake

12,480 11,232 43.80 491,962

Malunggay

Pancake

12,480 11,232 43.80 491,962

Total PhP 4,845,985

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Year 2013

Product Annual

Capacity


Malunggay

Pastillas

45,552 40,997 PhP 14.55 PhP 596,506

Squash Pastillas 45,552 40,997 14.55 596,506Papaya Pastillas 45,552 40,997 14.40 590,357Carrot Polvoron 36,816 33,134 19 629,546Malunggay

Polvoron

36,816 33,134 18.55 614,636


Pancake

13,728 12,355 48.20 595,511

Malunggay

Pancake

13,728 12,355 48.20 595,511

Total PhP 5,876,315

Projected Sales

Year Projected Sales2009 PhP 2,718,5662010 PhP 3,293,8502011 PhP 3,991,6482012 PhP 4,845,9852013 PhP 5,876,315

** These are based on assumption that for each products, 90% units are sold

and 10% are left unsold.

** There will be a ten percent (10%) increase on production capacity/output

on each products every year.

** Selling price of each products will increase by ten percent (10%) every

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year.

Marketing Strategies

Product

The product’s name will be Vegelights, in short for Vegetable Delights,

beause all of the delicacies are mixed with various vegetables, such as:

Dried & Sweetened Kamote, Dried & Sweetened Gabi; Carrot Polvoron,

Malunggay Polvoron, Kamote Polvoron; Pastillas de Papaya, Pastillas de

Malunggay, Squash Pastillas; Kangkong Pancake and Malunggay Pancake.

Product Category

The products that will be sold are food, and falls under delicacies, for they

are choice food.

Brand

PROTOLIFE ENTERPRISE

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

healthy eating at its fullest …

PROTOLIFE ENTERPRISE42 Red St., Goodwill 2 Subd., Sucat, Paranaque

826-9023/826-9024 VEGELIGHTS DELICACIES

Packaging

The packaging for the products will be cellophane wrappers for inidivual

pieces of the products.

Price

The price of the products will depend on the production costs. Things to

consider in coming up with a certain pricing are production costs, namely:

direct materials, direct labor and other indirect expenses. The total

production costs will be divided into how many has been produced to come

up with unit cost, then add a mark-up. The firm chose 80% mark-up to cover

other expenses. The capacity of units produced per day will be discussed in

Chapter 4.

Product Direct

Materials

Cost of

Labor

Overhead Yield Mark-Up

(80%)

Selling

PriceCarrot

Polvoron

PhP 4,030 PhP 7,000 PhP 3,750 2,080 80% PhP 12.90

Malunggay

Polvoron

PhP 3,666 PhP 7,000 PhP 3,750 2,080 80% PhP 12.60

Kamote

Polvoron

PhP 3,796 PhP 7,000 PhP 3,750 2,080 80% PhP 12.60

Malunggay PhP 3,198 PhP 7,000 PhP 3,750 2,600 80% PhP 9.90

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PastillasSquash

Pastillas

PhP 3,510 PhP 7,000 PhP 3,750 2,600 80% PhP 9.90

Papaya

Pastillas

PhP 3,302 PhP 7,000 PhP 3,750 2,600 80% PhP 9.75

Dried

Kamote

PhP 1,456 PhP 7,000 PhP 3,750 1,300 80% PhP 17.10

Dried Gabi PhP 1,456 PhP 7,000 PhP 3,750 1,300 80% PhP 17.10Kangkong

Pancake

PhP 3,484 PhP 7,000 PhP 3,750 780 80% PhP 32.85

Malunggay

Pancake

PhP 3,484 PhP 7,000 PhP 3,750 780 80% PhP 32.85

Place

The location site of the factory and the store outlet is good enough in its area

because it is near to the wet market and grocery, wherein, those are the

places for acquisition of raw materials and equipments in production, and

many people goes in and out everyday, including passers by.

Channel of Distribution: ( 0 – Level )

PRODUCER CONSUMER

Promotion

Leaflets and brochures regarding the products will be disseminated on the

actual day or before the actual day of operations. Basically, those product

leaflets and brochures contains vital information regarding the product, its

strong benefits and its difference among the sweets and delicacies in the

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

CHAPTER IV

Technical Study


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

production.

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

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

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

• To be able to identify the equipments needed.

Product Description

The products that will be sold are food delicacies, in which there are

vegetable pieces mixed inside it, to form a healthy and delicious choice food.

Uses of the Product

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Most people make delicacies as their deserts after meals. Delicacies are

also ideal for snack time because it is a choice food, and it is pleasing to the

taste buds. Therefore, Vegetable Delights makes a very healthy snack and

delicacy.

Process Flowchart

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Peeling of each of the 3 vegetables

( 5 minutes )


B. Vegetable Polvoron

( will be done on working table # 2 )

Boiling of the vegetables

( 5 minutes each )

Combine the powdered milk and condensed milk using mixing bowl.

Combine everything in a mix bowl

Slice each rolled mixtures into small pieces.

Wrap each pieces using a cellophane wrapper.

Temporarily store all finished pastillas in the cold storage for 1 day.

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Slicing each vegetables w/ kitchen knife.

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

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

Peeling of 3 vegetables involved.

( 5 minutes )


C. Dried and Sweetened Vegetables


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

Slice each boiled vegetables

Toast the flour in a pan for 15 minutes.

Stirring of flour

( 15 minutes )

Mash each vegetables

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

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

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

Wrap everything in a cellophane wrapper.

Peeling of kamote and gabi( 5 minutes )


D. Vegetable Pancake


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Slice each kamote and gabi into strips

Boil the sliced vegetables

Prepare a plate and put all the pack of sugar

Spread sugar all over the sliced vegetables.

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

Prepare a screen board for drying

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

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

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

Boil the vegetables involved. Kangkong and Malunggay separately.( 5 minutes each )


Description of the Process

Dried & Sweetened Kamote and Gabi:

1. Peel all the vegetables.

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

Put the evaporated milk in a cup.

Mix all the ingredients together with the boiled vegetables.

Break a dozen of eggs in a separate bowl.

Combine everything in the first used mixing bowl.

Fry each pancakes on a pan for 3 minutes each.

Flip the pancake if one side is brown already.

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

Each cooked pancakes can now be packed on a clear plastic


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

. 3. By using a plate, place 3 cups of sugar to each pieces of each

kamote and gabi.

4. Make sure the sugar reaches every corner, side of kamote and

gabi.

5. Place the sugar-coated kamote and gabi under the sun to dry

for one whole day in a clean screen board.

6. After a day, these vegetables are now ready to be be packed in a

plastic wrapper and put it in a container.

Squash, Papaya and Malunggay Pastillas:

1. Peel all the necessary vegetables.

2. Boil the squash, papaya, and malunggay for 3 minutes each on

separate boiling water.

3. Combine 1 bar of butter, 1 can condensed milk and the

powdered milk in a mixing bowl.

4. After 3 minutes, beat the boiled papaya, squash and malunggay

separately until firm.

5. Combine the squash, papaya & malunggay with the 3 ingredients.

6. Using a hand-held mixer, mix all the ingredients until firm.

7. Turn the mixtures in a round plate for rolling into pieces.

8. After rolling, the rolled mixtures should now be sprinkled with a cup

of sugar.

9. Each pastillas can now be wrapped in a cellophane that is cut into

small pieces.

Carrot, Malunggay and Kamote Polvoron


2. Boil each vegetables separately for 3 minutes.

3. On a pan, toast flour in a moderate heat for about 15 minutes,

33


or until light brown, stir constantly to avoid burning.

4. Remove the pan and transfer the mixture on a big bowl.

5. Mash each of the boiled vegetables.

6. Add the mixtures of powdered milk, sugar and melted butter

for 5 minutes.

7. In a mixing bowl, add the mixtures and the separately

mashed vegetables.

8. Using a moulder, put all the mixtures on each moulder.

9. Place the polvoron in a airtight container, chill in the refrigerator

until firm.

10. Carefully wrap the polvoron individually in a cellophane wrapper.

Squash, Kangkong and Malunggay Pancake


2. Boil each vegetables separately for 3 minutes.

3. Put the flour in a mixing bowl.

4. Put milk in a cup.

5. After boiling the vegetables, mash each separately on a

bowl until firm.

6. Break the eggs in the bowl.

7. Combine the vegetables in a bowl together with the main

ingredients.

8. Let the pancake mix cook about 5 minutes.

9. Flip pancake until top is brown.

10. Ready to serve and put in a plastic wrapper.

Production Schedule

The residential factory will operate from 9:00AM to 4:00PM, a total of

seven (7) hours a day and twenty-six (26) working days a month.

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Assignments of the four (4) workers:

Worker Assigned Product to be ProducedA Vegetable PastillasB Vegetable PolvoronC Dried & Sweetened VegetablesD PancakeAll workers Packaging/Labelling of respective goods

Worker A // Vegetable Pastillas // Working Table No. 1

9:00am – 9:30am Peeling of the vegetables

9:30am – 10:00am Boiling of the vegetables separately

10:00am – 10:30am Beating of each vegetables

10:30am – 10:45am Combining of all ingredients.

10:45am – 11:00am Mix everything (all the ingredients) until firm

11:00am – 11:30am Turning the mixtures on a plate

11:30am – 12:00nn Place everything on the island table for storage.

Worker A can produce 100 units each of papaya pastillas, malunggay

pastillas and squash pastillas a day. See Material Balance.

Worker B // Vegetable Polvoron // Working Table No. 2

9:00am – 9:30am Peeling of necessary vegetables.

9:30am – 10:00am Boiling of all the vegetables separately.

10:00am – 10:15am Toasting of the flour in a pan for 15 minutes.

10:15am – 10:30am Transferring of the flour to a mixing bowl.

10:30am – 10:40am Mashing of all the vegetables.

10:40am – 11:00am Combining and mixing all the main ingredients

together with the vegetables.

11:00am – 11:30am Using a moulder, put all the mixtures in a moulder.

11:30am – 11:40am Place everything in an airtight container on the

island table for storage.

35


Worker B can produce 80 units each of kamote polvoron, malunggay

polvoron and carrot polvoron a day. See Material Balance.

Worker C // Dried & Sweetened Vegetables // Working Table No. 3

9:00am – 9:30am Peeling of vegetables.

9:30am – 10:00am Slicing each vegetables into thin cuts.

10:00am – 10:15am Pour all the sugar on a round plate.

10:15am – 10:45am Soaking of all the vegetables in the sugar for 1

hour.

10:45am – 11:00am Put everything on the screen board for drying,

leaving it overnight on the drying area.

Worker C can produce 50 units each of dried & sweetened kamote

and gabi a day. See Material Balance.

Worker D // Vegetable Pancake // Working Table No. 4

9:00am – 9:30am Boiling each vegetables separately.

9:30am – 9:40am Pour all the flour in a mixing bowl.

9:40am – 10:00am Pour evaporated milk in a cup.

10:00am - 10:15am Mash each vegetables on a mixing bowl.

10:15am – 10:20am Break the dozen of eggs in a bowl.

10:20am – 10:30am Combine everything in a bowl, mix everything for

10 minutes until mixture is firm.

10:30am – 11:30am Frying of all the pancake on a pan.

11:30am – 11:40am Flipping of pancakes.

11:40am – 12:00nn Put everything on the island table for temporary

storage and packaging.

Worker D can produce 30 units each of kangkong and malunggay

36


pancake a day. See Material Balance.

All Workers // Packaging // Island Table no. 2

Starting at 1:00pm, all workers should now pack all their produced goods on

that day. Therefore,

Worker A packs all pastillas products.

Worker B packs all polvoron products.

Worker C cannot yet pack dried & sweetened products, but on the

next day already because of its overnight basis.

Worker D packs all pancake products.

Before 4:00PM, the factory and its materials should be cleaned, the

packed products should now be inside the cold storage refrigerator, and

garbages should now be utilizing proper waste disposal methods, recyclable

and non-recyclable bins.

Material Balance

Carrot Polvoron

Quantity Materials400 g All-Purpose Flour200 ml Sugar1 pack Carrots

37


350 g Powdered Milk1 whole Cellophane Wrapper50 g Butter

This is good for 80 pieces of carrot polvoron.

Malunggay Polvoron

Quantity Materials400 g All-Purpose Flour200 ml Sugar1 bundle Malunggay300 g Powdered Milk1 whole Cellophane Wrapper50 g Butter

This is good for 80 pieces of malunggay polvoron.

Kamote Polvoron

Quantity Materials400 g All-Purpose Flour200 ml Sugar1 pack Kamote300 g Powdered Milk1 whole Cellophane Wrapper50 g Butter

This is good for 80 pieces of kamote polvoron.

Malunggay Pastillas

Quantity Materials350 g Powdered Milk1 bundle Malunggay200 ml Sugar330 ml Condensed Milk1 whole Cellophane Wrapper

This is good for 100 pieces of malunggay pastillas.

Squash Pastillas

Quantity Materials350 g Powdered Milk1 half Squash200 ml Sugar330 ml Condensed Milk1 whole Cellophane Wrapper

This is good for 100 pieces of squash pastillas.

38


Papaya Pastillas

Quantity Materials350 g Powdered Milk1 pack Papaya (shredded)200 ml Sugar330 ml Condensed Milk1 whole Cellophane Wrapper

This is good for 100 pieces of papaya pastillas.

Dried & Sweetened Kamote

Quantity Materials2 packs Kamote200 ml Sugar1 pack Plastic Wrapper

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

Dried & Sweetened Gabi

Quantity Materials2 packs Gabi200 ml Sugar1 pack Plastic Wrapper

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

Kangkong Pancake

Quantity Materials1 bundle Kangkong400 g All-purpose Flour330 ml Evaporated Milk1 dozen Eggs200 ml Sugar1 pack Plastic Wrapper

This is good for 30 pieces of kangkong pancake.

39


Malunggay Pancake

Quantity Materials1 bundle Malunggay400 g All-purpose Flour330 ml Evaporated Milk1 dozen Eggs200 ml Sugar1 pack Plastic Wrapper

This is good for 30 pieces of malunggay pancake.

40


Production Capacity

Vegetable Pastillas ( all variants )

Year Daily Weekly Annual2009 100 600 31,2002010 110 660 34,3202011 121 726 37,7522012 133 798 41,4962013 146 876 45,552Total 610 3,660

Vegetable Polvoron ( all variants )


Dried & Sweetened Vegetables ( all variants )


Vegetable Pancake ( all variants )

Year Daily Weekly Annual2009 30 180 9,3602010 33 198 10,2962011 36 216 11,232

41


2012 40 240 12,4802013 44 264 13,728Total 183 1,098

** There will be a ten percent (10%) increase on production capacity on

each products every year.

Raw Materials

Quantity Materials Price Supplier1 pack of 6’s Kamote PhP 10.00 Hi-way Wet Market1 pack of 6’s Gabi 10.00 Hi-way Wet Market1 bundle Kangkong 5.00 Hi-way Wet Market1 half Squash (big) 17.00 Hi-way Wet Market1 bundle Malunggay 5.00 Hi-way Wet Market

42


1 pack of 3’s Carrots (long) 19.00 Hi-way Wet Market1 pack Papaya (shredded) 9.00 Hi-way Wet Market330 ml Evaporated Milk 25.00 Hi-way Wet Market350 g Powdered Milk 55.00 Hi-way Wet Market400 g All-Purpose Flour 26.00 Hi-way Wet Market200 ml Sugar 20.00 Hi-way Wet Market330 ml Condensed Milk 28.00 Hi-way Wet Market1 bar (50g) Butter 20.00 Hi-way Wet Market1 dozen Fresh Eggs 42.00 Hi-way Wet Market1 whole Cellophane 15.00 Hi-way Wet Market1 pack Plastic Wrapper 16.00 Hi-way Wet Market

All of these raw materials are purchased from the Sucat Hi-Way Wet Market

for the reason that it is very near to the factory and they always have fresh

products. An inclusion also would be their affordable selling prices and it is

very near to the factory, walking distance, no costly transportation expenses

to be incurred.

Machinery & Equipments

Quantity Material/Equipment Price1 Refrigerator PhP 12,500.00

PhP 12,500

Quantity Material/Equipment Price1 (pack of 100s) Polvoron Moulder PhP 70.004 Peeler PhP 80.003 Electric Mixer PhP 150.002 Beater PhP 50.001 Gas Stove PhP 450.003 Boiling Pan PhP 120.005 Mixing Bowl PhP 100.00

PhP 1,020

43


Factory & Production Supplies

Quantity Material/Equipment Price4 Apron PhP 320.008 Hand Gloves PhP 120.004 Hair Net PhP 40.004 Gas Mask PhP 40.00

PhP 520 x 12 months purchase/use = PhP 6,240

Plant Layout

The factory size is 20 square meters.

44


Plant Location

Cold

Storage

Area

W

I

N

D

O

W

D

O

O

R

W

I

N

D

O

W

EquipmentTableArea

4 M

CookingArea

5 M

WorkingTable # 1 5 M

WorkingTable# 2

5 M

WorkingTable# 4

5 M

WorkingTable# 3

5 M

Island Table # 2

( Packaging and Labelling area )6 M

Island Table # 1

( for finished products only )6 M

45

For Raw materials ready forprocessing

4 M

Garbage 1

( Recyclable )

Garbage 2

( Non – Recyclable )

GardenArea

( serves as Drying Area for other delicacies )


First, the location map of Paranaque City.

The factory is located in one of the proponents’ residence which is

located in # 42 Red Street, Goodwill 2 Subd., Sucat, Barangay BF Homes,

46


Paranaque City.

To Sucat Hi-way Wet Market

To BF Homes, Paranaque & Medical Center P’que

Direct Labor Requirements

47

Area of commercial sari-sari and mini-grocery stores

HIDALGO’s

BENGGAL GROCERY

UPSOUTH

SCHOOL

IVR Motors and Machines

SKILL – POWER

INSTITUTE

Goodwill

2

Subd.,

( entrance )

VEGELIGHTS

Delicacies

Outlet

LAPID’s

Chicharon

Blue

Cocoon

PLANT

AREA

( Protolife Ent. )

Hyundai Motors

Pro-Log Philippines

OSM Shipping

Nego-Skwela


The firm will hire four (4) workers for the production system. Their

roles would be, Worker A for the pastillas goods, Worker B for the polvoron

goods, Worker C for the dried & sweetened goods, and Worker D for the

pancake goods. They will be given a compensation of PhP 7,000 a month.

Utilities

The residential factory will spend a total of PhP 3,750 for its utilities

per month.

Utility Cost per monthElectricity PhP 3,000Water PhP 200LPG Tank PhP 550 PhP 3,750 / month

Waste Disposal

There is a regular garbage collection activity every night within the

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

disposed on the designated garbage cans. The wastes that will be collected

are mainly: skins of peeled vegetables, excess wrappers used in packaging,

clattered and spilled ingredients, and the packages of used components in

production.

CHAPTER V

Management Study

48



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

• To specify the form of business organization in relation to the numbers

of partners and their respective contributions as well as their division

of profits.

• To enumerate the qualifications and requirements of personnel

needed to fill the positions in the organization.

• To indicate the management and organizational policies to be put into

practice in the whole course of business.

Form of Business Organization

The proponents have mutually agreed to have Partnership as the form

of business organization. As stated in the law, this form of business

organization is composed of two or more person binding themselves to pool

their resources and funds to engage in the pursuit of a common business

objective without necessarily organizing themselves into a corporation, upon

which the law imposes a much higher form of regulation, limitation and

standards. It is also deemed that the partners have full knowledge of the

sharing of profits, even losses, even if it is silent. The partnership will be

general partnership since both partners have come into agreement that that

they will equitably share rights as well as the responsibilities entailed in

business. Likewise, each partner assumes the full liability for the debts and

obligations.

Capitalization

49


As agreed by the partners, the partnership shall be a General

Partnership. Each partner will give a sum of Php 500,000.00 each for a total

of Php 1,000,000.00. This sum will serve as the total initial capital of the

business.

Partner Amount ContributedTino-Paolo Andaya PhP 500,000.00Ryan Jude Ponce PhP 500,000.00TOTAL PhP 1,000,000.00

Organizational Structure

The two topmost levels are occupied by the General Manager and Assistant

General Manager. These two positions are manned by the two general

partners. The Assistant General Manager takes charge of the supervision

and training of the four workers.

PROTOLIFE ENTERPRISE

50

GENERAL MANAGER


MISSION

Protolife Enterprise is bound to provide high quality products

that combine performance with value pricing while building relationship with

our customers and clients

VISION

Protolife Enterprise envisions to be the primary preference of

the market for delicacies and sweets while builds and maintains

customer-oriented culture.

51

ASSSISTANT GENERAL MANAGER

WORKER WORKER WORKER WORKER


Organization Policies

Selection of Employees:

The selection of employees will be based on the specified qualifications and

requirements stated. As a general rule, choice will also be based on the

physical condition, experience, training, moral character and age as these

points will surely affect the course of business.

Screening procedure:

All applicants should strictly follow the procedures listed below:

- Fill-up an application form, with 2x2 ID pictures, transcript of Record

from the school attended and Good Moral Character if applicable, NBI

clearance.

- Initial interview by the Assistant General Manager

- Applicants should take written exams prepared by the assistant gener-

al manager.

- Physical Examination paper

- SSS paper

- Tax identification number/ Tax paper

Hiring procedure:

The following listed are the procedures to be followed and

implemented in hiring of employees:

Testing:

It is presumed that an applicant who reaches this step has passed and

52


completed the necessary requirements and examinations

aforementioned.

Final Interview:

An applicant who has undergone the testing is scheduled to have the

final interview with the General Manager. The General Manager may,

despite of the completion of requirements of the former, decide not to

hire the applicants if he finds him/her unfit for the particular job.

Training:

Applicant/s should undergo briefing and training to better familiarize

and understand themselves to the nature of their jobs. The training of

the four workers will be headed and supervised by the Assistant

General Manager.

Organizational Policies:

Developing organizational policies is critical in every business as this will

serve as the very framework of business. The business’ set of organizational

policies encompasses five sections namely: Personnel Records, 13th month

pay, Attendance, Punctuality and Tardiness, Disciplinary Action and grounds

in application of such disciplinary action.

13th month pay

At the end of November each year, employees will be given their 13th

month pay, equivalent to their monthly pay.

53


Personnel Records:

All transaction and information with regards to the personnel shall be

centrally kept by the General Manager. The Assistant General

Manager, being the partner in the business, has also the right to

access the records in the legal business time.

Attendance

A record of Personnel Attendance is essential as this serves as a

basis for the merits, compensations and additional monetary

remunerations of the employees. Working hours will be 8 hours from

Monday to Friday.

Punctuality/Tardiness

In business organization, 8 (eight) working hours is being observed as

per Labor Code of the Philippines. As the partnership, being an artificial

being, drafted with the legalities prescribed by the law, this number of

working hours should be strictly practiced with some exemptions which will

be discussed in the succeeding paragraphs. Punctuality and Tardiness has

the undeniable impact as this will reflect on the quality and productivity rate

of the business. Therefore, all employees are expected to observe the

corresponding working hours.

The company shall issue Identification Cards and time cards to the

employees. The ID will be the legal evidence that they are a member of the

54


firm. Upon reporting for work, they should punch the time cards or record

their arrival/departure in the logbook/sheet.

Disciplinary Action

a) All employees must be familiarized with the company’s rules and regu-

lations drafted from the Labor Code of the Philippines. Regardless of

the position, each and everyone within the business is expected and

required to follow the policies as it was drafted on the context of im-

partiality and justice prevailing the organizational framework of the

business. The relationship among personnel should be in conformity

with the established known norms of human conduct and behavior.

b) The employee may, due to dishonesty, oppression, misconduct, negli-

gence of duty, conviction of crime involving moral turpitude, notori-

ously disgraceful conduct, willful disobedience , violation of existing

rules and some other reasonable directives as may be promulgated

from time to time under Article 272 of the New Labor Code of the Phil-

ippines as a just cause for termination, impose on its erring members

disciplinary actions which consist of but not restricted to reprimand,

supervision and dismissal from services as it may find commensurate

with the gravity of offense or offenses committed.

Grounds for Disciplinary Action:

The following are declared by the management to be grounds for

disciplinary action. Thus, all employees are deemed to act within the

context of organizational policies.

1. Habitual absence

55


2. Punching of other employee’s time card

3. Falsification of irregularities in accomplishing time records

4. Inefficiency and incompetence in the performance of the assigned task.

5. Abandonment of work / leaving office during office hours without consent

or permission.

6. Loafing, loitering and sleeping during office hours.

7. Lewdness

8. Dishonesty/Discourtesy/Dishonesty/Insubordination or refusal to obey

lawful orders.

9. Refusal to perform overtime or rest day work under any of the circum-

stances in Article 89&83 of the New Labor Code of the Philippines

10.Vandalism

11. Gambling and/or intoxication while on duty

12.Dereliction of duty, grave misconduct, negligence or carelessness in the

performance of duty

13.Unauthorized possession of firearm or deadly weapon

14.Stealing of company’s and fellow employee’s properties through direct

an indirect means

15.Unauthorized solicitation of business from company’ s customers

16.Withholding of company’s funds

17.Falsification of company’s records and documents, bringing home or out-

side the company’s premise without consent.

56


18.Fighting or provoking a fight within the company

19.Conduct prejudicial to the best interest of the service.

POSITION Required

Numbers

Job

Specification

JOB DESCRIPTION Compensation

(IN PESOS)

*deductableGeneral

Manager

1 (one) -graduate of

any 4 year-

course

preferably

Business

Administration

-has at least

two year

managerial

experience

-has at least

one year of

managerial

experience

-has strong

and effective

communication

skills

-at least 23

-prepares marketing

plan annually

-prepares company

policies and regulations

-formulates long-range

plans, marketing

strategies, objectives

and programs

-assures organization’s

mission-vision is

congruent with the

operation and produces

-implements and

administer

organizational policies

22,000/mo

57


and above

Assistant

General

Manager

1(one) -graduate of

any 4-year

course,

preferably

Business

Administration

-has at least

one year of

managerial

experience

-has strong

leadership skill

-possesses

strong and

effective

communication

skills

-at least 23

and above

-prepares yearly budget

-makes

recommendations for

policies and programs

made by the General

Manager

-responsible for hiring

and selection of

employees needed to fill

in the positions.

-trains and supervises

the workers.

18,000/mo

Worker 4(four) -preferably

High School

graduate

-has

willingness to

undergo

training related

to the nature of

work

-prepares the necessary

ingredients.

-responsible in making

the end-products

7,000 each/mo

58


-willing to shift

works.

Position Monthly Salary x 12

months

Total

General Manager PhP 22,000 x 12 PhP 264,000Assistant General

Manager

PhP 18,000 x 12 PhP 216,000

Workers (4) PhP 7,000 each (28,000)

x 12

PhP 336,000

TOTAL PhP 81,000 PhP 816,000 per annum

Legal Requirements

In conformity with the mandated law, the business shall comply with the

mandated requirements to be secured and completed prior to the operation

of business. Listed below are the various requirements as prescribed with

corresponding legal costs.

DTI Permit PhP 500.00

Mayor’s Permit 8,000.00

SEC Registration 4,000.00

BIR Registration 500.00

Community Permit 1,200.00

59


Sanitary Permit 100.00

Garbage Inspection Fee 700.00

TOTAL PhP 15,000.00

60


61


CHAPTER VI

Financial Study


• To be able to determine whether the firm gains a profit or a loss

from it operations.

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

• To determine the total project cost of the business.

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

alternatives.

• To determine the payback period of the venture.

Total Project Cost

Machineries and Equipment PhP 13,520

Supplies 6,240

Permit and Licenses 15,000

Office Supplies / Equipment 22,000

Furniture and Fixtures 3,300

Utilities 45,000

Raw Materials 376,584

Signboards 250

Promotion Expenses 1,000

Company IDs 70

62


TOTAL PROJECT COST PhP 482,964

Initial Capitalization

Partners ContributionTino-Paolo Andaya PhP 500,00.00Ryan Jude Ponce PhP 500,00.00TOTAL PhP 1,000,000.00

Source of Financing

The firm’s main source of financing is their parents. Each proponents were

given PhP 500,000.00 each in order to form part of their investment and

capitalization for the business operations.

Alternative Sources of Financing

Pawnshops, selling of personal properties, credit cooperatives, collaterals,

non-government organizations and banking institutions.

63


Assumptions – Financial Statements

** INVENTORY

From the annual production capacity output, there will be 10% unsold units,

meaning, 90% of the units produced will be sold.

** PROJECTED SALES (are based on Chapter 3 – Market Study)

** CAPITALIZATION/CASH

PhP 1,000,000 Derived from contributions of 2 partners: PhP 500,000 each.

** PRODUCTION CAPCITY

There will be 10% production capacity increase every year.

** SELLING PRICE

Selling price of each products will increase by 10% every year.

** DEPRECIATION

Is computed by using the straight-line method.

These fixed assets has lives of 5 years.

** SALARIES AND WAGES

Increases 5% every two years.

** UTILITIES

Increases 5% yearly.

64


** RAW MATERIALS

The prices of raw materials increases 2% yearly.

** TAX STATUS

For withholding tax purposes, these are the tax status of all the employees in

Protolife Enterprise:

General Manager Married, no dependents

Asst. General Manager Single

Supervisor Married, no dependents

All the workers (4) Single

** SUPPLIES

There is a 5% increase every year.

** Value-Added Tax (VAT) rate is 12%.

** Income tax rate for a general partnership is 35%.

65


Financial Statement Analysis

CURRENT RATIOCurrent Assets / Current Liabilities2009 2,250,964 / 1,255,254 = 1.79:12010 3,675,035 / 2,633,873 = 1.40:12011 5,553,454 / 4,264,048 = 1.30:12012 8,100,726 / 6,205,084 = 1.31:12013 11,437,685 / 8,576,206 = 1.33:1

QUICK ASSET RATIOGross Profit / Net Sales2009 2,107,124 / 2,718,566 = 0.78%2010 2,434,367 / 3,293,850 = 0.74%2011 3,111,030 / 3,991,648 = 0.78%2012 3,922,493 / 4,845,985 = 0.82%2013 4,985,966 / 5,876,315 = 0.85%

PAYBACK PERIODNet Income / Investment2009 634,530 / 1,000,000 = 0.632010 845,452 / 1,000,000 = 0.852011 1,248,244 / 1,000,000 = 1.252012 1,806,236 / 1,000,000 = 1.812013 2,425,836 / 1,000,000 = 2.43

WORKING CAPITALCurrent Assets – Current Liabilities2009 2,250,964 - 1,255,254 = 995,7102010 3,675,035 - 2,633,873 = 1,041,1622011 5,553,454 - 4,264,048 = 1,289,4062012 8,100,726 - 6,205,084 = 1,895,6422013 11,437,685 - 8,576,206 = 2,861,479

RATE RETURN ON SALESInvestment / Net Income2009 1,000,000 / 634,530 = 1.58

66


2010 1,000,000 / 845,452 = 1.182011 1,000,000 / 1,248,244 = 0.802012 1,000,000 / 1,806,236 = 0.552013 1,000,000 / 2,425,836 = 0.41GROSS MARGIN RATENet Income / Net Sales2009 634,530 / 2,718,566 = 0.232010 845,452 / 3,293,850 = 0.262011 1,248,244 / 3,991,648 = 0.312012 1,806,236 / 4,845,985 = 0.372013 2,425,8367 / 5,876,315 = 0.41

DEBT RATIOTotal Current Liabilities / Total Assets2009 1,225,254 / 2,289,784 = 0.55%2010 2,633,873 / 3,713,855 = 0.71%2011 4,264,048 / 5,592,274 = 0.76%2012 6,205,084 / 8,139,546 = 0.76%2013 8,516,206 / 11,476,505 = 0.75%

QUICK RATIOQuick Assets / Current Liabilities2009 1,948,822 / 1,255,254 = 1.55:12010 3,309,000 / 2,633,873 = 1.26:12011 5,109,993 / 4,264,048 = 1.20:12012 7,562,309 / 6,205,084 = 1.22:12013 10,784,713 / 8,576,206 = 1.26:1

67


CHAPTER VII

Socio-Economic Aspect

1. To emphasize the importance of business and its role in the society

2. To describe the relevance of business in the government.

3. To stress the social responsibility the business should live by in consonance with its vision-mission.

4. To analyze the social desirability of the company.

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

Employment Generation

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

68


Economic Contribution to the Philippine Economy

The role of business in the economy is undeniably essential specifically, the small and medium enterprises or SMES. SMES in the Philippines comprise the very backbone of our economy as they generate income growth, stimulate spirit of entrepreneurship and innovation, promote expansion and diversification of markets, increase rate and investment base, alleviate threats for survival of the poor and promote of pluralist society. Thus, we can say that SME sector, specifically, serves as a crucial link to the seemingly incongruous paradigms of the growth-led development strategies. In line with this, our company opts to do business in assonance with the demands of the society. The business shall contribute in paying taxes on time.

Health advocacyCompared to the existing delicacies offered today in the

market, Vegelights offers an array of innovative products which make use of various vegetables as its main ingredient thus, giving a whole lot of meaning in eating delicacies. We don’t want people to center their delicacies solely on its taste, but on health benefits as well. Most vegetables that we use for our delicacies are found and proven to have health effective benefits.

Legal ResponsibilitiesAs a partnership, we are bound to do business according to

what the law mandates. Along with faithfully and religiously paying taxes, the business will strictly comply with the government’s rules and regulations in business practice. Some of the concrete examples are responsible waste disposal and environmental awareness. Rules set by the authority are required to abide by the company in a strict and disciplined manner.

Ethical ResponsibilitiesCongruent with practice of legal responsibilities, the company

also fosters ethical responsibilities. The company will observe ethical standards as this marks societal beliefs of “good behavior”. This may be such as appropriate overtime remuneration for long hours or an "unofficial" punch-out time. Ethical responsibilities are voids in the legal system and allow firms to act with humanitarian values in mind.

69


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

SALARIES & WAGES

Position 2009 2010 2011 2012 2013General

Manager

22,000 22,000 23,100 23,100 24,255

Assistant

Gen. Mgr.

18,000 18,000 18,900 18,900 19,845

Supervisor 13,000 13,000 13,650 13,650 14,333Worker 1 7,000 7,000 7,350 7,350 7,718Worker 2 7,000 7,000 7,350 7,350 7,718Worker 3 7,000 7,000 7,350 7,350 7,718Worker 4 7,000 7,000 7,350 7,350 7,718TOTAL 81,000 81,000 85,050 85,050 89,305(Yearly) 972,000 972,000 1,020,600 1,020,600 1,071,660

UTILITIES

Utility 2009 2010 2011 2012 2013Electricity 3,000 3,150 3,308 3,473 3,647Water 200 210 221 232 244LPG 550 578 607 637 669TOTAL 3,750 3,938 4,136 4,342 4,560

COST OF PRODUCTION

2009 2010 2011 2012 2013Direct

Materials

376,584 384,120 391,812 399,744 407,724

Direct Labor 336,000 336,000 352,800 352,800 370,464Manufacturing

Overhead

201,000 203,256 213,432 215,904 226,716

TOTAL 913,584 923,376 958,044 968,448 1,004,904

SSS CONTRIBUTIONS

Position 2009 2010 2011 2012 2013Gen. Mgr. 1,590 1,590 1,590 1,590 1,590Asst. Mgr. 1,590 1,590 1,590 1,590 1,590Supervisor 1,362 1,362 1,414 1,414 1,518Worker 1 738 738 790 790 790Worker 2 738 738 790 790 790Worker 3 738 738 790 790 790Worker 4 738 738 790 790 790

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TOTAL 7,494 7,494 7,754 7,754 7,858

PHILHEALTH CONTRIBUTIONS

Position 2009 2010 2011 2012 2013Gen. Mgr. 550 550 575 575 600Asst. Mgr. 450 450 450 450 475Supervisor 325 325 325 325 350Worker 1 175 175 175 175 175Worker 2 175 175 175 175 175Worker 3 175 175 175 175 175Worker 4 175 175 175 175 175TOTAL 2,025 2,025 2,050 2,050 2,125

PAG-IBIG CONTRIBUTIONS

Position 2009 2010 2011 2012 2013Gen. Mgr. 100 100 100 100 100Asst. Mgr. 100 100 100 100 100Supervisor 100 100 100 100 100Worker 1 100 100 100 100 100Worker 2 100 100 100 100 100Worker 3 100 100 100 100 100Worker 4 100 100 100 100 100TOTAL 700 700 700 700 700

PURCHASES - RAW MATERIALS

For Carrot Polvoron

Material 2009 2010 2011 2012 2013Flour 26 26.52 27.05 27.59 28.14Sugar 20 20.40 20.81 21.23 21.65Carrots 19 19.38 19.77 20.17 20.57Powdered

Milk

55 56.10 57.22 58.36 59.53

Butter 20 20.40 20.81 21.23 21.65Cellophane 15 15.30 15.61 15.92 16.24TOTAL 155 158.10 161.27 164.50 167.78Monthly 4,030 4,110.60 4,193.02 4,277 4,362.28

Malunggay Polvoron

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Material 2009 2010 2011 2012 2013Flour 26 26.52 27.05 27.59 28.14Sugar 20 20.40 20.81 21.23 21.65Malunggay 5 5.10 5.20 5.30 5.41Powdered

Milk

55 56.10 57.22 58.36 59.53

Butter 20 20.40 20.81 21.23 21.65Cellophane 15 15.30 15.61 15.92 16.24TOTAL 141 143.82 146.70 149.63 152.62Monthly 3,666 3,739.32 3,814.20 3,890.38 3,968.12

Kamote Polvoron

Material 2009 2010 2011 2012 2013Flour 26 26.52 27.05 27.59 28.14Sugar 20 20.40 20.81 21.23 21.65Kamote 10 10.20 10.40 10.61 10.82Powdered Milk 55 56.10 57.22 58.36 59.53Butter 20 20.40 20.81 21.23 21.65Cellophane 15 15.30 15.61 15.92 16.24Total/Monthly 3,796 3,871.92 3,949.40 4,028.44 4,108.78

Malunggay Pastillas

Material 2009 2010 2011 2012 2013Malunggay 5 5.10 5.20 5.30 5.41Powdered 55 56.10 57.22 58.36 59.53Condensed 28 28.56 29.13 29.71 30.30Sugar 20 20.40 20.81 21.23 21.65Cellophane 15 15.30 15.61 15.92 16.24Total/Monthly 3,198 3,261.96 3,327.97 3,393.52 3,461.38

Papaya Pastillas

Material 2009 2010 2011 2012 2013Papaya 9 9.18 9.36 9.55 9.74Powdered 55 56.10 57.22 58.36 59.53Condensed 28 28.56 29.13 29.71 30.30Sugar 20 20.40 20.81 21.23 21.65Cellophane 15 15.30 15.61 15.92 16.24Total/Monthly 3,302 3,368.04 3,435.38 3,504.02 3,573.96

Squash Pastillas

Material 2009 2010 2011 2012 2013Squash 17 14.34 17.69 18.04 18.40Powdered 55 56.10 57.22 58.36 59.53Condensed 28 28.56 29.13 29.71 30.30Sugar 20 20.40 20.81 21.23 21.65Cellophane 15 15.30 15.61 15.92 16.24Total/Monthly 3,510 3,580.20 3,651.96 3,724.76 3,799.12

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Dried & Sweetened Kamote

Material 2009 2010 2011 2012 2013Kamote 20 10.20 10.40 10.61 10.82Sugar 20 20.40 20.81 21.23 21.65Plastic 16 16.32 16.65 16.98 17.32Total/Monthly 1,456 1,485.12 1,514.76 1,545.18 1,575.86

Dried & Sweetened Gabi

Material 2009 2010 2011 2012 2013Gabi 20 10.20 10.40 10.61 10.82Sugar 20 20.40 20.81 21.23 21.65Plastic 16 16.32 16.65 16.98 17.32Total/Monthly 1,456 1,485.12 1,514.76 1,545.18 1,575.86

Kangkong Pancake

Material 2009 2010 2011 2012 2013Flour 26 26.52 27.05 27.59 28.14Sugar 20 20.40 20.81 21.23 21.65Kangkong 5 5.10 5.20 5.30 5.41Evaporated 25 25.50 26.01 26.53 27.06Butter 20 20.40 20.81 21.23 21.65Eggs 42 42.84 43.70 44.75 45.64Plastic 16 16.32 16.65 16.98 17.32Total/Monthly 3,484 3,553.68 3,624.92 3,701.88 3,775.72

Malunggay Pancake

Material 2009 2010 2011 2012 2013Flour 26 26.52 27.05 27.59 28.14Sugar 20 20.40 20.81 21.23 21.65Malunggay 5 5.10 5.20 5.30 5.41Evaporated 25 25.50 26.01 26.53 27.06Butter 20 20.40 20.81 21.23 21.65Eggs 42 42.84 43.70 44.75 45.64Plastic 16 16.32 16.65 16.98 17.32Total/Monthly 3,484 3,553.68 3,624.92 3,701.88 3,775.72

WITHHOLDING TAX

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Position 2009 2010 2011 2012 2013Gen. Mgr. 1,968.75 1,968.75 2,110.93 2,110.93 2,284.18Asst. Mgr. 1,468.75 1,468.75 1,581.25 1,581.25 1,699.38Supervisor 862.57 862.57 927.57 927.57 1,010.38Worker 1 285.37 285.37 311.62 311.62 339.22Worker 2 285.37 285.37 311.62 311.62 339.22Worker 3 285.37 285.37 311.62 311.62 339.22Worker 4 285.37 285.37 311.62 311.62 339.22TOTAL 5,4412 5,442 5,866 5,866 6,351

VALUE-ADDED TAX (VAT) PAYABLE

2009 2010 2011 2012 2013Output Tax 326,228 395,262 478,998 581,518 705,158Less: Input TaxSupplies 749 786 826 867 910Utilities 5,400 5,671 5,956 6,252 6,566Purchases-Raw Materials

45,190 46,094 47,017 47,969 48,927

Total 274,889 342,711 425,199 526,430 648,755VAT Payable 22,907 28,559 35,433 43,869 54,063

MANUFACTURING OVERHEAD 2009 2010 2011 2012 2013

Utilities 45,000 47,256 49,632 52,104 54,720

Indirect 156,000 156,000 163,800 163,800 171,996Labor

Total 201,000 203,256 213,432 215,904 226,716

Other expenses

SUPPLIES2009 6,2402010 6,5522011 6,8802012 7,2242013 7,585

MISCELLANEOUS EXPENSES

2009 2010 2011 2012 2013

Promotions 1,200 1,260 1,323 1,389 1,458

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Delivery 2,400 2,520 2,646 2,778 2,917Signboard 250 250 350 350 450Company ID 70 70 80 80 90

Total 3,920 4,100 4,399 4,597 4,915

PERMIT AND LICENSES

2009 15,0002010 15,0002011 16,3302012 16,3302013 17,962

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