Executive Summary
Introduction
Love & Pair Co. is a partnership business with a purpose of selling
lovebirds within and outside the Philippines. It offers many breeds of lovebirds
such as Fischer’s, Peached face, Black Masked and Nyasa Lovebirds for various
choices of customers. Love & Pair Co. has the potential to compete with other
sellers of love birds and pet shops because the facility will not only include a
store but also a capacity for breeding and an aviary to ensure the good quality of
the love birds. Love birds are to be sold in the international (Southeast Asian
Countries, particularly in China) market as export products. Additionally, Love &
Pair Co will cater the domestic market by being a supplier to pet shops within the
vicinity and also selling to walk-in customers.
Summary and Findings:
Marketing Aspect
Lovebirds as the product of Love & Pair Co. is marketable to people. Factors
that support this conclusion are as follows: the trend of owning lovebirds as pet
has paved the way for this unique business venture. These factors tied up with a
good use of marketing strategies and impeccable location suggests success in
market positioning with the use print ads like flyers, brochures and posters to
easily inform the target audience. On the grand opening of the shop, the store
will offer promotions to encourage the poeple to buy. The broad variation of
people as the main target market of Love & Pair are type of market that
influences big market or has the ability to aim viral marketing, in that way Love &
Pair would be easily known by the market.
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Technical Aspect
Love & Pair Co.’s need for materials (both direct and indirect), labour,
equipment, tools, utilities, and aviary and shop location is affordable, existing and
accessible. The processes used for manufacturing the products such as Process
of Breeding, Breeding/Reproduction, Sexing Lovebirds, Egg Laying and
Hatchlings, Hatchling Care and Weaning, Selling Lovebirds within and outside
the country are technically possible.
Management Aspect
The owner of Love & Pair Co. decided to manage the business to be a hands-
on type business in order to maintain the quality of the products that is being
produce during the production process. Employees will be compensated and
treated well by the owner and will have a seminars and trainings focusing on how
to make the product and explain the benefits that could get in the product to
make sure that the products to be sold will be understood well by the consumers.
Financial Aspect
The 5 Partners will contribute Php 400, 000 each totalling Php 2,000,000 as
an initial investment for the business and each of them has a wide knowledge in
managing the day-to-day and business operation. Profits will be shared by the
partners equally as a form of return of their contribution. Earnings of the
corporation are taxed with accordance of Tax Laws and Regulations. Financial
statements are projected for ten (10) years consisting of Statement of Financial
Position, Statement of Financial Performance, and Statement of Changes in
Owner’s Equity, Statement of Cash Flows, and Notes to Financial Statements.
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Social Aspect
Love & Pair Co. provides good quality and satisfactory service to its
customers. Additionally, it gives those out of work the opportunity to be
employed. It also builds a well-balanced relationship among its employees.
Moreover, it complies with different requirements of government agencies.
Environmental Aspect
Proper waste management is adopted and put into operation to ensure that
the environment will not be sacrificed for the firm’s purposes. Since Love &
Pair Co. is an environment-friendly business, its biodegradable wastes are
handled and used as fertilizers. Furthermore, Love & Pair Co. carries out
activities that comply with different environmental regulations. The company
has its two socio-economic plan, first Environment consciousness program in
this program it is to help maintain the clean environment near the facilities,
also it helps to avoid floods and prevent clogged drainages.
Owner and workers of Love & Pair will be participating in the corporate social
responsibilities by helping cleaning a barangay near the shop, in order to
show their concern with the surroundings, which they are willing to participate
with other environment maintenance programs.
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Project Background and History
The following names listed are the project promoters who will be
contracting under a corporation type of business:
PROMOTERS RESIDENCE
Castillo, Jophet M.10th Avenue, Caloocan City
Cañas, Arbiegail D.Marilao, Bulacan
Indiongco, Mark Harold V.Liparo, Caloocan City
Naranjo, Pauline Mae L.Parada, Valenzuela City
Tumalad, KlevinEmilor E.Sangandaan, Caloocan City
Mission
The company endeavours to be acknowledged in the national and
international market, specifically Southeast Asian Countries as a highly regarded
source of a wide selection of good variety and quality lovebirds. The company
aspires to be involved in the endorsement of the sustainable progress of lovebird
species by adopting ethical breeding practices, and supporting its preservation
both in their captive and natural environments.
Vision
Cognizant of the challenges of the rapidly developing digital age, Love &
Pair Co. envisions to eventually be a One-Stop Bird Shop in the vast global
market with the upgrade of the company's telecommunications technology,
thereby making web-based viewing and purchasing of bird variety fast and easily
accessible.
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Objectives
The primary objective of the business is to offer quality and finest lovebirds both
inside and outside the country and o provide accessible lovebirds breeding and
selling in Metro Manila.
Secondary objectives are the following:
1. To satisfy the needs of those who owned and wants to own lovebirds.
2. To offer comfort to customers with the joy that lovebird can provide.
3. To earn revenue in return for the lovebirds sold.
Customer Service Goals
• To set up questionnaires and feedback channels to quickly respond on
their complaints
• To constantly conduct customer service research process to quickly
adapt to their changing demands and improved quality of product
• To build a strong customer relationship so as for them to continuously
patronize our products
Revenue Goals
• To cover up daily operating expenses
• To efficiently use available resources
• To increase sales and net profit by the end of each current year
• To maximize the wealth of the owner by providing a positive
return on investment
• To pool excess into funds for expansion
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Community and Environmental Goals
• To involve the company and its employees on environment-friendly
practice and policies
• To continuously use eco-friendly packaging materials
• To promote campaigns and outreach programs that has positive
effects on environment
• To alleviate unemployment in the locality
Logo
This is the logo of the company. L & P represent the words love and pair.
A simple yet elegant logo to show that simplicity will show the beauty on it. Just
like the products, Love and Pair Co. offers good quality lovebirds.
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Business Name
LOVE & PAIR Co. The business is named love & pair because it primary
deals with lovebirds, the researchers believed that in able for the owners to
achieve a successful owning and breeding of lovebirds, the owner should love
the lovebirds first. By doing so, they can pair and match their lovebirds gradually.
Another thing is that, lovebirds cannot live alone, it must be in pair. With this, the
researchers came out with the idea of naming the business as Love & Pair. Love
& Pair Co. is a business name not only pertaining to taking good care of the
lovebirds but also the customers because this type of business is created for
lovebirds enthusiasts.
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Chapter I
Marketing Aspect
Current Market Situation
Love is in the air – lovebirds that is. The lovebird is one of the many
breeds and varieties of birds that people choose to keep as pets. The most
popular pets are dogs and cats. Although a bird is not the most popular pet, it is a
very nice addition to the home and can even become part of the family.
Lovebirds are most commonly kept in pairs since their popularity is largely due to
their monogamous pair bonding and the long periods in which the pair will spend
sitting together. They usually eat fruits, vegetables, some grasses and seeds.
They are rather small but can be a marvel to look at since they possess different
bright colors which are part of their natural characteristics.
These pets are now becoming popular as business ventures as well.
Good business, low maintenance and a tidy return investment all combine for an
ideal alternative to the old school tradition of breeding of other kinds of pets.
Most breeders of lovebirds would take the time to share selling tips with
each other. They freely lecture on care and other know-hows and are happy
simply to find others who share their interest. A lot of large breeders have
established aviaries in different part of Luzon. You can find one in Bulacan,
Valenzuela City, Parañaque City, Cainta, Rizal, as well as in San Pedro, Laguna.
Small breeders can be found in the Manila and Quezon City areas. Breeders
though in Bulacan, Cainta, Laguna, and Batangas are often willing to bring their
birds to the city by arrangement at no or minimal additional costs. With that, the
researchers came up with the idea of breeding and selling lovebirds not just in
NCR area but also outside the country. Direct selling will also be applied for
those people who just want lovebirds as their pet.
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Love birds exporting industry grows bigger. As such, Asian countries like
Thailand, Malaysia, Indonesia, and Korea are just some which exports this kind
of bird.
Varying methods of selling lovebirds are currently employed. Word of
mouth, print advertising, placing ads in Pet Care and classified ads magazine
such as Buy & Sell, also with the trends of new technology and social media, it
will be easier to market lovebirds through selling online on personal websites and
advertising at different community seller and social sites such as Ayosdito.ph,
Sulit.com, Facebook, Tumbler, etc. Most customers make another purchase if
they are happy with the initial bird/pair bought. Referrals from seller to seller are
also given.
SWOT Analysis
Strengths
1. Accessibility of the shop. Love & Pair is located along McArthur Highway,
Valenzuela.
2. Experienced management and well-mannered personnel. Love & Pair’s
aviary is managed by well-experienced and knowledgeable breeders of
lovebirds to maintain the quality.
3. Love & Pair Co. will offer a variety of breed of which the customers can
choose from. Moreover, different colour mutations of love birds as a
product of pairing will also be a factor for customers’ purchasing decision.
Weaknesses
1. Taking care of love birds need adequate attention. If they do not have
adequate attention either from another lovebird or from the caretaker they
may become depressed and die.
2. Higher cost will be incurred in hiring well-experienced love bird breeder.
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3. There is a need for premium pricing of love birds depending on the age,
breed, and colour mutations.
Opportunities
1. Bigger market. Love & Pair exports lovebirds not just in the Philippines but
also in some other parts of the world. In the domestic setting, Love & Pair
can be a supplier of love birds for small pet shop owners because it has
breeding facility.
2. Unlike any other pet shops, Love & Pair Co sells love birds alone. This is
to establish, maintain and keep the specialty for love birds. It is a shop for
lovebird’s enthusiasts. They can provide everything who is indulge into
taking care of lovebirds.
3. The demand for love birds fluctuates from period to period.
4. The number of love birds grow rapidly in a short span of time through
breeding, thus, the demand for love birds can be satisfied because of
adequate supply.
5. It opens Philippines’ doors to foreign investors as Love & Pair partnership
goes well in the foreign market. It promotes Philippines, lovebirds industry
all over the world.
Threats
1. Love birds exporting industry is growing faster. Competition is growing. as
Thailand, Malaysia, Indonesia, Bahrain, Korea and Australia are just some
of the love bird exporting countries in the world.
2. In domestic setting, a number of small pet shop owners which also sells
love birds can lead to tight competition.
3. There are risks and exposure love birds to health problems (e.g bird flu)
that may be transferred to humans as well as the effect of natural and
environmental threats to these love birds.
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Objectives
4. To satisfy the needs of those who owned and wants to own lovebirds.
5. To offer comfort to customers with the joy that lovebird can provide.
6. To provide accessible lovebirds breeding and selling in Metro Manila.
7. To offer quality and finest lovebirds both inside and outside the country.
8. To earn revenue in return for the lovebirds sold.
Market Segment
Market segmentation is the process of identifying groups of buyers with
different buying desire or requirements. It involves targeting and narrowing-down
the markets. It is the division of a market into a distinct group of consumers that
require different products or marketing mixes.
By giving it a marketing edge, the business will find its way to be more
effective and marketable. Segmenting a group of consumers as the target market
will make it easier for Love & Pair to promote the product effectively rather than
focusing on the average customers. With that, Love & Pair will apply two market
segmentations due to the domestic and foreign markets which the said business
is involved. For the domestic market, Love & Pair Co. will primarily apply
Psychographic Segmentation which means the business will focus on the group
of consumers according to their lifestyle, values, and personality being
considered. For the foreign market, Love & Pair will apply Geographic
Segmentation; this involves the geographic criteria as to nation, location, cities,
and neighbourhoods.
Target Market
The researchers of Love & Pair had identified two target markets of
lovebirds, the domestic and foreign market.
For the domestic market, Love & Pair will target the pet shop owners in
Metro Manila and across the Philippines to be their supplier of lovebirds. In
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addition, Love & Pair Co. will target the individual or household pet lovers who
reside in Metro Manila. Also, the company will serve walk-in customers for either
retail or wholesale purchases of lovebirds.
For the foreign market, Love & Pair will target the importers of lovebirds in
Southeast Asian region such as China, Indonesia, Japan, and Singapore. The
countries that are included here are based on the results of the accomplished
survey, tied up with internet research of some information regarding the countries
that import birds.
Competitors
Since the business is intended for domestic and export selling, Love &
Pair considers two types of competitors based on geographic location; the
domestic and foreign competitors. Competitors that are considered in this portion
are those who are involved or engaged in selling or breeding primarily birds
alone and not any other live animals. For domestic competitors, the researchers
take into account the location of its competitors in relation to the location of the
Love & Pair Shop and Aviary. Thus, only direct competitors from the National
Capital Region are considered. On the other hand, competitors in the Southeast
Asia region are considered for foreign engagements.
A. Domestic Competitors
Badilla Aviary
Badilla Aviary is situated in Parañaque City which is currently breeding
seven of the nine species of African love birds. This aviary is engaged in
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exporting. Eighty percent (80%) of their breeder birds are imported from
Belgium, Thailand, United States and Holland and the other twenty
percent (20%) comes from the top five percent (5%) of their own
production. They import love birds from these countries to infuse new
blood to their existing flock and to acquire the latest mutations other
countries has to offer. They perform out-breeding or cross-breeding to
heighten the diversity of love bird mutations.
Manny Ballada Farm
Ballada Farm is located in Valenzuela City. The farm has around 6,000
species of small birds including parakeets, eyering love birds, African love
birds, cockatiel, zebra finches, gouldian finch, society finch, opalinelutino
and opaline white face. In addition, Manny Ballada also owns a pet shop
situated in Pasay City. The business is also engaged in exporting birds.
B. Foreign Competitors
Pin Farm
Pin Farm is located at the tropical country of
Thailand. It has a tagline “Only the quality love
birds you can find”. The farm has 700 pairs of
male and female breeders. The farm is open
for visitation and maintains excellent quality
when it comes to cleanliness and use of
technology for its facilities. They export love birds to different countries
around the world with Cites Paper and Certificate of Health. Aside from
being an exporter of love birds, the owner of Pin Farm,
YutthanaImanothai, also owns a bird shop called Pin Shop.
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Marketing Mix Strategies
Love & Pair plans to have more than a few advertising tools and strategies
in promoting the product as well as its shop and aviary, among these are print
media, interactive, social and internet media, as well as customer relationship
management. The researchers plan to establish customer awareness regarding
the products offered, and work toward building purchaser constancy and
referrals. Falling under this marketing mix strategies are the successful
identification of the factors affecting the marketability of love birds. With this, the
researchers used the following strategies, the seven P’s:
1. Product
Love & Pair offers a variety of love birds. Lovebirds based on their
species, kind, color and age.
2. Price
Love birds are reasonably priced depending on its age, breed and color.
For export, Prices excludes freight charges, CITES and Veterinary
charges subject to change, subject to devaluation and that the birds are
unsold.
3. Place
Love & Pair Co. will be situated at the #38 MacArthur Highway, Potrero,
Malabon City. It is strategically located in the place because it is
accessible and can be easily found by customers. It has as its neighbour a
school where there are many children who can be the target market of
selling love birds.
4. Process
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The process that may be involved in the business is the caretaking and
breeding of love birds. To ensure the good quality of the product,proper
and adequate knowledge of the technical aspects of caring for love birds
should be possessed by the caretaker. Love birds must be provided with
sufficient nutrition (food, water and vitamins), proper ventilation, clean
shelter and a nestling area within its cage. Also, a well-trained and keen in
observing the proper pairing of love birds in order to ensure that they will
produce an offspring on expected time after pairing, and to avoid lapse of
time if the pairing is not successful.
5. People
The personnel that will be employed in Love & Pair will undergo a
thorough screening and tests to ensure that they would fit in and qualify
for the positions or work they are task to do. With regards to the
caretaking of the love birds, the caretaker must be well-experienced and
knowledgeable about the love bird stuffs and must possess a loving and
caring attitude towards animals. Caretakers will be required to undergo
trainings or workshops in relation to the proper caring and treatment,
technical knowledge (feeding, pairing, breeding, nestling) about love
birdsin order to heighten competence, as well as, to develop
communication skills in dealing with customers.
6. Promotion
Promotion is a way of communicating or introducing a new product to the
market. By way of promoting the product, the potential customers may
have a grasp of what the product is all about, the details of it and it helps
in the decision of the market whether to buy the product or not. For Love &
Pair Co., the following promotion strategies will be executed:
a. Print Media
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Flyers, brochures and business cards will be given to the target
market containing message that proponents will seek to
communicate. The said flyers and brochures will contain the
company name, location of the shop and list and pictures of the
products offered. Print ads will be posted on different areas in
Metro Manila.
Below is a sample design for the print ads of flyers, brochures and
business cards.
Broadcast Media
The researchers of Love & Pair strongly believe in the power and
influence of online technology and internet in gathering information
and as a means of communication. Nowadays, it is much easier to
connect with other people from different places through social
networking sites like Facebook, Twitter, Multiply and the like. Added
factor to this is the wide access of people to the internet. Love &
Pair will be able to reach a vast array of prospective customers and
spread a more explanatory form of advertisement for both domestic
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and foreign market. Love & Pair will also create an official website
for online advertisements wherein pictures of product lines, prices
and contact details will be included to provide the customers with
convenience and a preview of what the company is offering to
them. This is the web design of Love & Pair Co. :
c. Customer relationship management
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Love & Pair will prioritize in establishing long-term and good
relationship with the customers, as well as building the trust and
confidence of the customers to the quality of lovebirds and products
that Love & Pair are providing. Word of mouth and referrals are
effective advertisement.
d. Interactive marketing
Know customer’s satisfaction level, feedback and new expectations
to help increase the enjoyment of the customers. Ask the
customers how they found out about the business. Know their
complaints and handle it promptly. Accept comments from
customers. Query handling on telephone as well as personally.
MARKETING PROGRAM
DATE PROGRAM MECHANISM BUDGET
One week
before
operation
Flyers Flyers will be distributed in some
malls in Metro Manila to
increase the awareness and
attention of having a Lovebird
shop and aviary near place/
Php 600.00
Tarpaulins Love & Pair will be using
tarpaulin to attract and call
attention of the target market
Php 2500.00
At least once
a month
during the
operation
cycle
Leaflets/
Brochures
Love & Pair will use leaflets and
brochures to showcase not just
the species and breeds of love
birds that Love & Pair is offering
but also to showcase our shop
and aviary as well as the quality
of our facilities.
Php6,000.00
Start of Social Media This marketing mechanism will Php 6,000.00
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operations to
an indefinite
period
Marketing and
Internet
website
be used to communicate
virtually with almost all people to
bring to their attention the
existence of the Love & Pair.
Through creating social network
accounts in sites like Facebook,
Twitter, Tumbler and blogs,
Love & Pair can discuss matters
related with providing
introducing the product to the
target market. In addition, an
official business website will be
developed in order to provide a
wide range of information to the
potential customers with
convenience and ease
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PRODUCT SURVEY
A monkey survey was conducted in the internet through Google and Facebook.
The online survey questionnaire was spread on to different people across the
country and to some other parts of the world through Facebook chat.
Survey Results
Location of Respondent No. of Respondents Percentage
Philippines 96 76.80%
Others 29 23.20%
TOTAL 125 100.00%
The location or residence of the respondents is considered in determining
the target market as well as the probable demand for love birds in different
locations. According to the survey conducted, majority are residing in the
Philippines. In that case, the business will not only cater foreign transactions
(exporting) but also, will attend to the demand of Filipinos (domestic).
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Location of Respondents
Philippines
Others
Location of Respondents
Philippines
Others
Location of Respondents
Philippines
Others
Location of Respondents
Philippines
Others
The 23.20% of the total survey population answered “Others” in this
question. Primarily, it is identified that this percentage represents the number of
foreign respondents who took the survey. The following figures show the tally of
foreign respondents with their respective locations/countries:
Survey Questions:
1. What kind of pet do you prefer? No. of Respondents Percentage
Dog 49 39.20%
Cat 31 24.80%
love birds 28 22.40%
Fish 17 13.60%
Total 125 100.00%
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CountryNo. of
Respondents
California 3
Canada 3
Chicago 1
China 2
Colorado 1
Dubai 1
Hongkong 1
Indonesia 4
Japan 3
New Jersey 2
Singapore 2
Taiwan 1
Thailand 2
UK 3
Total 29
The respondents were asked what kind of pet they prefer in order to
estimate the potential buyers of the product.
2. Are you willing to have love
birds?No. of Respondents Percentage
Yes 73 58.40%
No 52 41.60%
Total 125 100.00%
22
39%
25%
22%
14%
1. What kind of pet do you prefer?
dog
cat
love birds
fish
58%
42%
2. Are you willing to have love birds?
Yes
No
The respondents were asked if they wish to have love birds. This question
also estimates the demand for love birds in the population. In here, majority of
the respondents, which constitute 58% of the total population sample affirmed.
3. From where do you buy pets? No. of Respondents Percentage
Pet shop 102 81.60%
Market vendors 8 6.40%
Online sellers 4 3.20%
Breeders 5 4.00%
Others 6 4.80%
Total 125 100.00%
The inference that may be gathered in this question is the marketplace or
location where there is a demand for pets. Also, in these places, there are
possible threats, in the form of competition, and opportunities. Majority of the
respondents answered “pet shop” as the main source. Those who answered
23
82%
6%
3%
4% 5%
3. From where do you buy pets?
Pet shop
Market vendors
Online sellers
Breeders
Others
“others” have acquired their pets as a gift from someone and some through direct
purchase from breeders.
4. Why do you buy pets? No. of Respondents Percentage
Passion for pet 80 62.50%
Breeding purposes 13 10.16%
Buy and sell 3 2.34%
Hobby/collection purposes 21 16.41%
Others 11 8.59%
TOTAL 128 100.00%
*Respondents can have more than one answer.
Some reasons are motivating the respondents to buying love birds. These
may particularly relate to the different preferences of them which may result to
the demand of customers to a product. The results of the survey shows that
majority (62.40%) of them buy love birds because of their passion for pet.
5. What benefits do you get in
having pets?No. of Respondents Percentage
Happiness and satisfaction 107 82.31%
Form of income 8 6.15%
24
63%10%
2%
16%9%
4. Why do you buy pets?
Passion for petBreeding purposesBuy and sellHobby/collection purposesOthers
Others 15 11.54%
TOTAL 130 100.00%
The more benefit and satisfaction that a customer gets from a certain
product, the more that he is willing to buy and ask for more. Thus, more demand
will generate to more revenue.
6. If given a chance, how many love
birds are you willing to buy?No. of Respondents Percentage
One to three pairs 98 78.40%
Four to ten pairs 9 7.20%
Eleven to twenty pairs 4 3.20%
Twenty to one hundred pairs 3 2.40%
Others 11 8.80%
TOTAL 125 100.00%
25
82%
6% 12%
5. What benefits can you get in having pets?
Happiness and satis-faction
Form of income
Others
Question No. 6 generally answers in numerical terms the demand of
potential customers for love birds. In relation to the previous question nos. 4 and
5, of which majority answered passion for pet and happiness and satisfaction, the
researchers may conclude that a large number of potential buyers are individual
purchasers and they buy for personal or emotional satisfaction, not for business
purposes. The findings in this question shall be used as a basis for the analysis
of demand to be further discussed in preceding sections of this chapter.
7. How much are you willing to spend in
buying a love bird?
No. of
Responde
nts
Percentage
P600 – P1500 (approximately 15 to 37 USD) 86 68.80%
P1500 – P3000 (approximately 37 to 73 USD) 22 17.60%
P3000 – P6000 (approximately 73 to 146 USD) 9 7.20%
P3000 – P6000 (approximately 73 to 146 USD) 5 4.00%
P9000 above (approximately 220 USD and 3 2.40%
26
78%
7%3%2% 9%
6. How many love birds are you willing to buy?
One to three pairsFour to ten pairsEleven to twenty pairsTwenty to one hundred pairsOthers
above)
TOTAL 125 100.00%
The costing of the product is also considered by the researchers by asking
the respondents how much they are willing to pay for a love bird. This will serve
as the basis on the range of prices the researchers can sell their product that the
customers are still willing to buy.
8. What type of love birds do you
want to buy?No. of Respondents Percentage
African 29 23.20%
Eyering 42 33.60%
Any type available in stores 34 27.20%
Others 20 16.00%
TOTAL 125 100.00%
27
69%
18%
7%
4% 2%
7. How much are you willing to spend in buying a love bird?
P600 – P1500 (approximately 15 to 37 USD)
P1500 – P3000 (approximately 37 to 73 USD)
P3000 – P6000 (approximately 73 to 146 USD)
P3000 – P6000 (approximately 73 to 146 USD)
The variety of love birds are also considered by the market in buying.
Here, the researchers would want to know the breed of love bird which will
provide greater demand and that to be able to observe the fill up the demand for
that specific breed. Exposed in the survey, most of the respondents would like to
buy Eye-ring love birds. Each breed has an assortment of species and
subspecies.
9. Are you willing to buy love birds
from outside the country?No. of Respondents Percentage
Yes 53 42.40%
No 72 57.60%
TOTAL 125 100.00%
28
23%
34%
27%
16%
8. What type of love bird do you buy?
African
Eyering
Any type available in stores
Ohers
42%
58%
9. Are you willing to buy love birds from outside the country?
YesNo
The analysis that can be reaped from this question is the potential
demand of love birds in the export industry. Out of 53 respondents who said Yes,
26 are foreigners (about 90% or 26/29 of the total non-resident respondents who
took the survey). This implies the positive demand for love bird exports in other
countries. Furthermore, out of the 72 respondents who said No, 70 are Filipinos
(representing a majority of Filipino respondents who took the survey). From that
information, it may be concluded that there are also great demand for love birds
in the domestic setting.
10. If yes, what country? No. of Respondents Percentage
Philippines (for foreign respondents) 25 32.47%
Africa 22 28.57%
Thailand 15 19.48%
Malaysia 7 9.09%
Indonesia 5 6.49%
Others 3 3.90%
TOTAL 77 100.00%
29
32%
29%19%
9% 6% 4%
10. If yes, what country? (Refer to previous question.)
Philippines (for foreign respondents)
Africa
Thailand
Malaysia
Indonesia
Others
*Respondents who answered “Yes” in the previous question may select more
than one option in this question.
This question identifies which among love bird-exporting countries are
likely to be the tight competitor. From the information gathered, Africa is the most
selected after by the Filipino respondents. Though, Philippines seem to have
good standing when it comes to exporting, evidenced by having the biggest
percentage in the survey population. This shows a great opportunity of the love
birds exporting in the business industry.
Computation of Demand
To compute for the estimated total demand for love birds, the researchers
conducted the following:
a. In an interview conducted by the researchers on November 24, 2012 they
were able to get data regarding the demand for lovebirds. Engr. Fred R. Pangan,
a breeder for almost 10 years, said that demand for lovebirds is increasing.
During 2011, he only delivered lovebirds to small pet shops and he had four
regular customers who regularly ordered an average of 10 lovebirds every week.
As of 2012, he already had 6 regular customers who commonly ordered 15
lovebirds and he honestly said that he could not supply this at some time.
Through this, it is showed that demand for lovebirds is increasing.
b. The researchers also interviewed a middleman who was buying lovebirds to
Engr. Fred. He told the researchers that there are four (4) businesses that he
was working to regarding the exportation of lovebirds. He ordered four (4)
lovebirds costing Php 3,800.00 each. The middleman told the researcher about
the countries who were importing lovebirds namely: Thailand, Indonesia, Korea,
Bahrain and Malaysia. Through this, the demand and supply for exportation is
based.
30
Weekly (in pairs) Growth rate
Vendor demand supply demand supply
1
2011 14 8
2012 18 10 0.29 0.25
2
2011 14 6
2012 20 8 0.43 0.33
3
2011 12 6
2012 16 8 0.33 0.33
Average
Growth
Rate
(Export) 0.35 0.29
In the table above, it showed the demand and supply of three vendors
from China interviewed via Internet. They were also selling via online. Through
this, we gathered the needed information to get the growth rate of exportation.
c. Another interview was conducted last January 18 at five (5) pet store owners in
Cartimar Shopping Center in Recto. Through this, the researchers were given
estimations regarding the demand for lovebirds and it is shown in the table
below:
Weekly (in pairs) Growth rate
Vendor demand supply demand Supply
1. Sir Raymond
2011 14 8
2012 20 10 0.43 0.25
31
2. Sir Jessie
2011 10 6
2012 14 8 0.40 0.33
3. Sir Joseph
2011 14 8
2012 18 10 0.29 0.25
4. Jun
2011 10 4
2012 16 6 0.60 0.50
5. Sir Gerald
2011 8 6
2012 12 8 0.50 0.33
6.Engr. Fred
2011 10 6
2012 14 8 0.40 0.33
7.Sir Francisco
2011 18 10
2012 22 12 0.22 0.2
Average
Growth
Rate
(Domestic
) 0.41 0.31
For the computation of growth rate, the given data from 2011 and 2012 are used.
By getting the difference of present and past demand then divide the difference
to the past demand you will get the growth rate.
Growth Rate = (Present Demand – Past Demand)
Past Demand
32
d. Based on the question number 1, it showed that the countries where lovebirds
had a large market. These countries were California, Canada, Chicago, China,
Colorado, Dubai, Hongkong, Indonesia, Japan, New Jersey, Singapore, Taiwan,
Thailand and United Kingdom. However, among these countries, only in China
had a bigger market in order to sell lovebirds.
Projected Demand and Supply
In computing the demand and supply every year, add all the lovebirds of
every vendors interviewed then multiply by two since the quantity indicated in the
table is by pair then multiply by 52 which is the number of weeks every year
since the indicated demand and supply of every vendor is every week. Through
this demand and supply of every year will be computed.
For Year 2011 (demand): ((14+10+14+10+8+10+18) x 2) x 2) = 8736
For the growth rate, we compute the growth rate of every vendor then get the
sum of it then divide by seven (the number of vendors interviewed) to get the
average growth rate. The average growth rate of .41 and .31 are used for the
projection of demand and supply, respectively.
Domestic
Demand Supply
Unfilled
Demand Percentage
Quantity Per
Year
HISTORICAL
2011 8736 4992 3744
2012 8772 5007 3764
2013 8808 5023 3785
2014 8844 5039 3805 16% 609
2015 8880 5054 3826 18% 689
2016 8917 5070 3847 20% 769
2017 8953 5086 3868 22% 851
2018 8990 5101 3888 24% 933
2019 9027 5117 3910 26% 1016
33
2020 9064 5133 3931 28% 1101
2021 9101 5149 3952 30% 1186
2022 9138 5165 3973 32% 1271
2023 9176 5181 3995 34% 1358
The computation of demand and supply as well as the growth rate of
domestic and export have the same computation of growth rate.
Export
Demand Supply
Unfilled
Demand Percentage
Quantity
Per Year
HISTORICAL
2011 3952 1872 2080
2012 3972 1877 2094
2013 3992 1883 2109
2014 4012 1888 2123 18% 382
2015 4032 1894 2138 20% 428
2016 4052 1899 2152 22% 474
2017 4072 1905 2167 24% 520
2018 4092 1910 2182 26% 567
2019 4113 1916 2197 28% 615
2020 4133 1921 2212 30% 664
2021 4154 1927 2227 32% 713
2022 4175 1933 2242 34% 762
2023 4196 1938 2258 36% 813
34
CHAPTER II
Technical Aspect
This chapter deals with the methodological phase that will give people
understanding about the exportation and domestic selling of love birds as well as
the shipping services, requirements from different government agencies and the
breeding process.
A. Description of the Product
Love & Pair Co. is a partnership business with a purpose of selling
lovebirds within and outside the Philippines. It offers many breeds of lovebirds
such as Fischer’s, Peached face, Black Masked and Nyasa Lovebirds for various
choices of customers. Love & Pair Co. has the potential to compete with other
sellers of love birds and pet shops because the
facility will not only include a store but also a
capacity for breeding and an aviary to ensure
the good quality of the love birds. Love birds
are to be sold in the international (Southeast
Asian Countries) market as export products.
Additionally, Love & Pair Co will cater the
domestic market by being a supplier to pet
shops within the vicinity and also selling to
walk-in customers.
Lovebird is a small breed type parrot. It
has its original birthplace in Africa and can be
divided into 9 types. It is a charming and
playful bird. It lives with its couple. There are a lot of colors in lovebird. With the
original color of green, lovebird colors have been developed to a variety colors by
human. Until now, violet color lovebird has existed. Lovebird has average age of
15 to 20 years and it can be breed throughout the year.
35
According to Wikipedia, they belong to one of the nine species of the genus
Agapornis, a Greek term which means “agape for love and ornis for bird”. They
are a social and affectionate small parrot. Seven species are native to the African
continent, while the Grey-headed Lovebird is native to Madagascar. Their name
stems from the parrots' strong, monogamous pair bonding and the long periods
which paired birds spend sitting together.
Lovebirds are 13 to 17 centimetres in length and 40 to 60 grams in weight.
They are among the smallest parrots, characterized by a stocky build, a short
blunt tail, and a relatively large, sharp beak. Wild type lovebirds are mostly green
with a variety of colors on their upper body, depending on the species. The
Fischer's Lovebird, Black-cheeked Lovebird, and the Masked Lovebird have a
prominent white ring around their eyes. The Abyssinian Lovebird, the
Madagascar Lovebird. Many color mutant varieties have been produced by
selective breeding of the species that are popular in aviculture.
All species are native to Africa; eight species live on continental Africa
while one, the Grey-headed Lovebird, inhabits Madagascar off the African east-
coast. This is a very good reason why African lovebirds adapt well in tropical
countries like the Philippines. In the wild the different species are separated
geographically. They live in small flocks and eat mainly fruits, vegetables, some
grasses and seed.
B. Classification of Love & Pair Co.’s Lovebirds
In this chart, it shows the product lines of Love & Pair Co. Lovebirds are
divided into two main classifications: eye ring and non-eye ring. Under each
categorization is divided into four (4) categories which pertain to the ages of
every lovebird. Under this, there are four species of lovebirds. And then, each
species are classified into many colors as shown below. Through this
classification, prices of every lovebird are determined.
36
Lovebirds
Fischer's Lovebird
Normal (Pure)
Normal (Split)
Blue, Light Blue, White,Dilute Jade, Dilute Olive
Violet
Peachfaced Lovebird
Normal (Pure)
Black Masked Lovebird
Normal (Split), Blues
Opalines, various colours from
Silver Cherry, Red Eyed Yellow
Other Colors
Nyasa Lovebird
Normal
Eyering
Egg
Young
Breeder
Adult
Non-eyering
Egg
Young
Breeder
Adult
African Lovebirds
Lovebird Species and Mutations
A. The White Eye Ring Group
1. Black Masked Lovebirds
The Black Masked has many mutations including violet, lutinos, albinos
and pieds, the parYellow and parWhite are are much more rare. They
have a red beak, yellow collar, green body, bluish rump, and black and red
band on the tail. Length: 6-6 inches
2. Fischer's Lovebirds
Normal Fischer's have an orange face and throat, red forehead, red beak,
green body, and green tail with blue tips. There are also blue, yellow,
37
seagreen, lutino, pied, and spangle mutations.
Length: 4 inches
3. Black-Cheeked Lovebirds
The overall colour of these birds is green, with brown/black cheeks and
forehead. The back of the head is yellow/green, and the throat is orange.
They have a red beak, and green body. While no color mutations are
known, many of these birds have been hybridized with Maskeds, Nyasas,
and Fischer's.
Length: 4 inches
4. Nyasa Lovebirds
Mainly green birds, with a red beak, red forehead, and orange/red throat
and cheeks. The tail has a dark band near the tip. There is a Lutino
mutation of the Nyasa Lovebird, which has a red head and yellow body.
These Lutinos are smaller in size.
Length: 4 inches
The Intermediate group
1. Peach-Face Lovebirds
The normal Peach-Face is primarily green, with a red face and throat and
horn colored beak. They have blue rumps and a green tail with some
black, rust, and red colors in it. There are more than 75 mutations of the
Peach-Face. The most popular being the Lutinos with the same red head
face, but with a yellow body, and the Blues who have a pale blue body
and a softer peach colored face.
Length: 6-7 inches
38
C. Growth Development of Lovebirds
Age Description Period of Time
Egg Laying and Incubation
Time
31 days = 1 month old
Chicks After hatching of the egg
and development of the
bird
36 Days = 1.2 months;
44 days before leaving
the nest = 1.47 months
Young From the day the lovebird
if fully formed
2 months old
Breeder The lovebird will start to
mate and reproduce
10 months old
Adult The lovebird does not lay
eggs anymore
5 – 10 years old
D. Description of the selected manufacturing process
A. Process of Breeding
Breeding/Reproduction
For breeding lovebirds, each
pair of birds has 2 nest boxes for
sleeping and nesting. These boxes
are at the same type and size, and
placed at the same height on the
same wall. Lovebirds breed
willingly as single pairs and some
species of lovebirds can bred in a
colony setting.
Breeding Age for Lovebirds
39
Lovebirds are at least 10 months old, though 12 to 13 months is
better. Also birds that are 5 to 6 years or older are retired from breeding.
Sexing Lovebirds
Visual characteristics are needed to determine in order to know
the sexes of the lovebirds. A female’s tail appears squarer while males
appear more rounded. The female will do most of the nest building work.
An anal inspection is done but takes experience in sexing these birds to
make a fair determination.
Egg Laying and Hatchlings
The female will lay about 5 eggs, though the clutch could be as few
as 3 eggs or as many as 8 eggs. The incubation period is 22 - 25 days,
with 75% to 80% of the eggs hatching. The hen will start to brood after the
second egg is hatched. Often the male will join the hen in the nest. The
chicks will begin to leave the nest in about 38 - 50 days and will be
independent about 2 weeks after leaving the nest.
Incubation Time
On average, Lovebirds incubate their eggs for about 23 days. This
can vary by a couple of days in either direction. For calculation of future
hatch dates, Love & pair Co. always count forward from the day the hen
begin to sit on the eggs.
Hatchling Care and Weaning
Love & Pair Co. allows the hen to feed the babies from hatching to
the age of 2 or 3 weeks. From there, they will pull the babies out of the
nest and place them in a brooder for hand feeding. Most Lovebirds need
to be handfed until they are between 6 and 8 weeks old.
B. Selling Lovebirds (Within the Philippines)
40
Love and Pair Co. will sell lovebirds through a pet shop located along
McArthur Highway in Potrero, Malabon City. It will accept walk-in customers and
enthusiast breeders within Metro Manila. It will offer many types of lovebirds that
they could choose in the aviary. Also, it offers bird accessories, bird foods and
maintenance materials for birds. Love and Pair Co will also distribute lovebirds to
other places in the National Capital Region.
C. Selling Lovebirds (Outside the Philippines)
Love and Pair Co will export lovebirds to their target customer from China.
Love and Pair Co. will establish a website that will serve as a medium to the
foreign customers. Through online, customers will choose their lovebirds and will
order in bulk. There will be middleman to assists Love & Pair Co. in transacting
exports. Complete shipping requirements will be submitted then the lovebirds
will be delivered in the said country.
These are the agencies that are concerned regarding the exportation of
live animals like lovebirds.
LOGO NAME
Bureau of Animal Industry is the agency that
provides Import - Export procedures for
much different kind of living animals. They
provide the permits and legal papers for the
approval of selling lovebirds outside the
country.
Philippines Pet Passport & Quarantine
Information - Pet immigration rules are
specific to each country worldwide, and pet
owners/sellers/breeders need to be familiar
with these rules before traveling/selling to
avoid pet quarantine in countries that
require it.
41
Pet Passport
The Pet Travel Scheme ("PETS") is a
system which allows animals to travel easily
between member countries without
undergoing quarantine. A Pet Passport is a
document that officially records information
related to a specific animal, as part of that
procedure.
Philippines Customs, Currency & Airport
Tax regulations details - Pets may enter as
passenger's checked baggage
REQUIREMENTS:
One-Stop Export
Documentation Center
The One Stop Export Documentation Center (OSEDC) houses under one roof
different government agencies that handle the processing of Export
Declaration/Authority to Load, Commodity Clearances/Certificates and Certificate
of Origin. These are:
Bureau of Animal Industry (BAI);
Bureau of Customs (BOC);
DENR-Protected Areas and Wildlife Bureau (DENR-PAWB)
Department of Environment and Natural Resources – NCR Office
I. Bureau of Animal Industry (BAI)
A. Quarantine/Veterinary Certificate – document issued by Bureau of Animal
Industry, Department of Agriculture (BAI-DA) for animals certifying that these are
free from evidence of dangerous communicable animal diseases or exposure
thereto.
42
Requirements for Pet Export from the Philippines
This may also be applicable for local air travel in the Philippines.
Information required in applying for an Export Permit from BAI (Bureau of
Animal Industry)
- Name of Pet
- Breed
- Sex
- Age
- Color
- Weight
- Species
Documents required supporting the above application:
1. Vaccination Record – containing details of the vaccines administered
and date of vaccination.
2. Health Certificates issued from a licensed veterinarian – issued within
10 days of the travel date and should state that the animal has been
examined and free from any communicable disease.
(A 2-sheet (1 original pink copy and 1 duplicate) veterinary health
certificate (Export Certificate) will be issued by BAI. No fees were
collected from acquiring the Export Certificate. Upon arrival at NAIA
(Ninoy Aquino International Airport), report to the quarantine desk and the
officer will get the copy and issue you another travel permit upon payment
of 100PHP.)
43
II. Bureau of Custom
Export Transactions
1. Processing of Export Declaration and Issuance of Certificate of
Identification
2. Issuance of Certificate of Origin with Pre-exportation Evaluation of
Goods
3. Processing of Certificate of Origin
4. Issuance of Certificate of Shipment
III. DENR-Protected Areas and Wildlife Bureau (PAWB)
A. CITES Export Permit – permit authorizing an individual to bring, send, or
transport wildlife listed under CITES Appendices, including its by-products or
derivatives, from the Philippines to other countries.
B. Non-CITES Export Permit – permit authorizing an individual to bring out non-
CITES wildlife from Philippines to any other country.
C. Re-issuance Fee – payment made for processing and issuing the same
document for replacement of expired CITES/non-CITES permit.
D. Wildlife Farm Permit – permit to develop, operate and maintain a wildlife
breeding farm for conservation, trade and/or scientific purposes.
E. Large-scale Farming - commercial breeding/propagation of wildlife with capital
of more than Php 1,500,000.
IV. Department of Environment and Natural Resources (DENR) – National
Capital Region (NCR) Office
Since Love and Pair Co. office and bird farm is location within National
Capital Region, the permit from the Department of Environment and Natural
Resources of selling and breeding lovebirds will be released for the DENR-NCR
Office.
Costing of Permit
Certificate of Wildlife Registration 1000.00
Wildlife Local Transport Permit (LTP) 100.00
44
Processing Fee 100.00
Wildlife Export Certification (WEC) 200.00
Certification of Export Permit 200.00
Exportation Fee (3% of Value of Product)
Inspection Fee 300.00
Travel Permit 100.00
Shipping Policy of Love & Pair Co.
Deposit and Payments
1. Deposit of 50%should be received within 7 working days upon agreement to
purchase.
2. Full payment of balance should be received 14 days before the schedule
delivery. If payments of balance and arrangements for shipping delivery have not
been made by the purchaser within that period, Love & Pair Co. reserves the
right to cancel the order.
3. Payment is through telegraphic transfer only in US Dollar.
Telegraphic Transfer
A telegraphic transfer represents the fastest, most secure and inexpensive
method of transferring funds internationally, especially when denominated in the
beneficiary's local currency. Love & Pair Co. will coordinate with Society for
Worldwide Interbank Financial Telecommunication (S.W.I.F.T), a member-owned
cooperative through which the financial world conducts its business operations
with speed, certainty and confidence. This will serve as the main currencies
direct telegraphic transfer in connection with BDO here in the Philippines.
45
The following bank details.
Account Name: Love & Pair Co.
Bank: Banco de Oro (BDO)
Branch: Banco De Oro (BDO) in Malabon City
Address: 110 MacArthur Highway corner Riverside Street, Potrero Malabon City,
Metro Manila
Phone No.: +63 52 481 4482 / +63 52 481 4481
US $ Account No.: 181003863
SWIFT Code: DNORTHMM
Health Guaranty
1. Love and Pair Co. does guarantee all our birds to be free of pathogenic
bacteria, viral and congenital defects. Birds coming with 3 day guarantee from
day of shipment. If a health concern should arise after arrival, notification within
24 hours of any signs and symptoms and the birds should be seen by an avian
veterinarian to perform a health examination within the same time frame. If there
is health problems determine that cannot be cured or cost prohibitive, at Love &
Pair Co. discretion, we will refund the money. We do reserve the right to get a
second opinion at our expense.
2. If a bird should die, it must be examined by an avian veterinarian for necropsy
and histology within 24 hours of death. Love & Pair Co. are not responsible for
airfreight charges nor do veterinary charges after birds leave our facility.
3. Birds are not returnable except under these conditions set out in this health
guarantee. Any purchase of any of our birds indicates acceptance of this
guarantee.
46
Love & Pair Co. Terms and Conditions
Prices
Prices excludes freight charges, CITES and Veterinary charges subject to
change, subject to devaluation and that the birds are unsold.
Packing
All our boxes are made according to International Air Transport Association
(IATA)rules.
Payment
Payment has to take place in advance via Telegraphic Transfer 50% within 7
days upon agreement to purchase with telephone confirmation to our banker.
Bank Account Details:
Account Name: Love & Pair Co.
Bank: Banco De Oro (BDO)
Branch: Banco De Oro (BDO) in Malabon City, Metro Manila
Address: 110 MacArthur Highway corner Riverside Street,
PotreroMalabon City, Metro Manila
Phone No.: +63 52 481 4482 / +63 52 481 4481
US $ Account No.: 181003863
SWIFT Code: DNORTHMM
Delivery Time
The delivery is within 2~3 weeks upon receipt of balance payment. Will depend
on how fast CITES/PERMITS are released.
47
Month Quantity (Per Piece) Age of Lovebirds Number of Lovebirds DescriptionJanuary 600 Breeder
February Lovebirds will look for their partners.March April 280 Eggs 140 (B), 280 ( E ) This month lovebirds will start to lay their eggs.May 280 Chicks 140 (B), 280 ( C ) The eggs will be cracked and turn into chicks.June 280 Eggs 140 (B), 280 ( E ), 280 ( C ) Second hatchling of lovebirdsJuly 280 Chicks 140 (B), 280 ( C ), 280 (Y)
280 YoungAugust 280 Eggs 140 (B), 280 ( C ), 280 (Y) 280 (E ) Third hatchling of lovebirds.
September 280 Chicks 140 (B), 280 ( C ), 560 (Y) 280 Young
October 280 Eggs 140 (B), 280 (C ), 560 (Y), 280 (E ) Fourth hatchling of lovebirdsNovember 280 Chicks 140 (B), 280 (C ), 840 (Y)
280 YoungDecember 280 Eggs 140 (B), 280 (C ), 840 (Y), 280 (E ) Fifth hatchling of lovebirds
Love and Pair Co. will buy 300 pairs of lovebirds. 140 forbreeding purposes and 460 for selling purposes.
Third batch of eggs will turn into chicks as well as the third batch of chicks into young.
The second batch of eggs will crack. Lovebirds turn into young.
Fourth batch of eggs will turn into chicks as well as the fourth batch of chicks into young.
Guarantee
Love & Pair Co. guarantees shipment is alive at airport of destination if you
collect the consignment within one (1) hour upon arrival of the plane. If it is
collected later from the airport, our guarantee is over. Same as transport from
airport to destination to your farm is your own responsibility.
Claims
If any of the birds die en route, it should be accompanied by a damage report
from the carrier signed by Ninoy Aquino International Airport (NAIA). Consignee
should notify Love & pair Co. within 4 hours upon arrival, via email/fax about the
damage, at the airport of destination. A colored photo should also accompany
said report.
D. Determination of the size and production schedule
Love and Pair will start breeding using 300 pairs of different breeds of
lovebirds. 230 pairs will be sold and 70 pairs will be used as breeders.
Table 1.1
48
Table 1.2
The table above explains the meaning of every letter on Table 1.1 as well as the
total number of lovebirds for the first year which will be the basis on the
succeeding years.
E. Selection of machinery, equipment, furniture and fixtures
1) Housing of Lovebirds
Age Number of Lovebirds Cage Size
Breeder 2 – 4 81 x 50 x 50 cm
Young, Chicks, Adult 5 – 10 183 x 183 x 91 cm
Lovebirds need a cage which has at least two places to perch, with room
to fly from one to the other. When they already a breeder, in every cage there
will be minimum of two lovebirds per cage and a maximum of four lovebirds.
These cages are for breeders. When are already adult, they are transferred for
display in the pet shop, which is a flight cage.
Perches have a size that is appropriate for the love birds for them to move
from one to another. It is convenient to have two sets of food and water dishes so
that they can be alternated and washed each day. Water must be changed and
the dish washed every day. Food dishes can stay longer, with food added each
day if preferred, but food dishes do need to be completely emptied, washed, and
refilled at least once a week. Lovebirds need activity in the cage to stay healthy.
Swings, ladders, and interlocked bamboo rings are favourite’s.
49
Total: (First Year)E eggs 280C chicks 280Y young 840B breeder 140A adult NA
Legend:
Bird Size Age Bar Spacing of Cage (inch) Perch Diameter (inch)
Chicks & Young 2 months-old Lovebirds No more than 1/2" 3/8" to 3/4"
Breeder 1 - 3 years old lovebirds 1/2" to no more than 3/4" 5/8" to 1-1/4"
Adult 4 – 10 years old lovebirds 3/4" to no more than
1-1/4"
1" to 2"
Table 1.3 Size of Bar and Perch for the Cage
Quantity Picture Price Amount
200
Cage
Php
1,000.00
Php 200,000.00
400 Php 45 Php18,000.00
50
BIRD PERCH
200
Nest box
Php 60 Php12,000.00
200
Water container
Php 15 Php 3,000.00
200
Food container
Php 15 Php 3,000.00
TOTAL: Php 236,000.00
51
2) Care and Feeding
In the wild, lovebirds feed on seeds, berries, fruits, grains, grasses, leaf buds,
and agricultural crops of corn, maize and figs. Their food and water dishes are
best if earthenware or porcelain as they will get gnawed if plastic.
A. Bird Food
Foods available for Lovebirds include formulated diets, either pelleted or
extruded, seed only diets, and small parrot mixes which offer a mixture of both.
- Formulated Diet:
A formulated diet provides a good nutritional base so does not
require the addition of vitamins. Phytonutrients are believed to boost the
immune system, help a body to heal itself, and to prevent some diseases.
- Seed Diet:
A seed only diet offers much more variety but requires additional
vitamin and calcium supplements.
B. Bird Supplements
Supplements include fresh vegetables, greens, and tree branches
for the bark, some fruits, and millet spray. Some of the fruit supplements
include berries, apples, grapes, pears, bananas, and kiwi. Some of the
greens and vegetable supplements include spinach, endive, watercress,
chickweed, radish, parsley, dandelions, carrot tops, corn on the cob, peas,
endive, field lettuce, and various garden herbs. Additional proteins can
be offered such as nuts. Vitamins can be added to the food or drinking
water.
C. Water
Lovebirds drink a lot of water, so will need fresh drinking water
every day.
D. Bird Baths
Most lovebirds love a bath either in a flat earthenware dish or by
spraying them with a light mist of lukewarm water. If you use a bathing
52
dish, you will see the birds perch on the edge and dip their heads and
upper bodies in the water and beating their wings. They prefer this kind of
bath to getting into the water.
E. Bird Grooming
Lovebirds generally maintain their nails and beaks on their own
through climbing and chewing. Another good use they make of their tree
branches.
Quantity Picture Price Amount
4 Pack
(Good for
a one
month)
sunflower seeds
Php250.00 Php 1,000.00
4 Pack
(Good for
a one
month)
Bird seeds
Php 235.00 Php 940.00
53
4 Pack
(Good for
a one
month)
Canary seed
Php 279.00 Php 1,116.00
200
Cuttle bone
Php 90.00 Php 1,800.00
4 Sacks
Wood shavings
Php 100.00 Php 400.00
Total Php 6,292.00
54
3) Office Equipment
Qty. Picture Product Price Total
1 Desktop
Computer is
used for
keeping files
and records
such as
breeding,
customer
orders and
other
important
files.
Php
23,285.5
0
Php
23,285.50
1 Printer
This would
be placed
along with
the desktop
computers to
convert an
electronic
version of
document to
its printed
form.
Php
3,599.00
Php
3,599.00
55
1 Scanner
This would
be used to
convert a
printed
document to
its electronic
form.
Php
4,198.50
Php
4,198.50
1 Fax machine
This would
be used to
send and
receive
documents
over a
telephone
line.
Php
4,790.00
Php
4,790.00
2 Television
This would
be placed at
the pet shop
for
entertainment
purposes of
the
customers.
Another will
be placed in
the office to
monitor the
pet shop
25,000.0
0
50,000.00
56
through a
CCTV
Camera.
2 Closed-circuit
television
camera
This will
monitor the
pet shop, the
breeding
room and
stock room.
Php
12,700.0
0
Php
25,400
1 Cashier
Counter
For receiving
the order and
payment of
the lovebirds.
Php
20,000.0
0
Php
20,000.00
Total: Php
131,273.00
57
4) Furniture & Fixtures
Qty. Picture Product Price Total
2 Sofa bed
This would be
placed at the
pet shop for
receiving area
for the
customers.
Another two in
the office for
relaxation
purposes.
Php
6,500.0
0
Php 13,000.00
1 Office table
This would be
used in the pet
shop, office
and breeding
room.
Php
5,490.0
0
Php
5.490.00
2 Office chair
This would be
used in the
office.
Php
4,100.0
0
Php
8,200.00
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1 Computer
chair
This would be
placed at each
computer
desktop.
Php
500.00
Php
500.00
4 Whiteboards
This will serve
as the manual
record in the
breeding room
to monitor the
lovebirds’
hatching of
eggs.
Php
3,200.0
0
Php
12,800.00
1 Washroom
fixtures
These would
be used for
the sanitary
needs of the
people inside
the premises.
Php
38,107.
00
Php
38,107.00
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2 Air
conditioning
unit
This would
serve as
ventilation
purposes in
the pet shop
and office.
Php
14,200.
00
Php
28,400.00
TOTAL Php
106,497.00
5) Tools
Quantity Picture Product Price Total
18 Fluorescent
Light
This would be
used for
lighting
purposes of
the rooms and
the whole
building.
Php
124.00
Php
2,232.00
3 Fire
extinguisher
This would be
used as
protection to
small fires
during
Php
1,380.0
0
Php 4,140.00
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emergency
situations.
3 Fire alarm
This would be
placed along
the halls of the
school to
detect
unwanted
presence of
fire.
Php
1,300.0
0
Php 3,900.00
Total: Php 10, 272.00
6) Delivery Equipment
Quantity Picture Product Price
1 Delivery Truck
This will be used for
delivering birds to our
sellers as well as going to
airports for exportation.
Php 695,00.00
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F. Identification of plant location
Love and Pair Co. will rent a building for its pet shop and breeding center. It I
located at #38 Potrero, Malabon City along McArthur Highway. The rent will cost
Php 70,000 per month excluding electrical and water bills. It is a two-storey
commercial building. Each floor measures 120 square meters. It requires two
month deposits, two months advance and a lease contract.
Project Engineering
After identifying the possible and suitable location for the project’s site, the
next thing to be done is to create a design of the pet shop layout for renovation
purposes.
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Floor Plan Design
This will be the design of Love and Pair Co. Pet shop. The first floor will
serve as the shop where customers will be accomodated by the staffs. On the
second floor, office, stock room and the breeding room can be found.
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.
This will be the replica of the arrangement of the cages on the second floor of the
Love & Pair Co. Building
G. Production Scheme
There will be 300 pairs of lovebird breeders that will breed in an aviary
located at McArthur Highway. At the second floor of the Love and Pair Co Pet
shop, there will be the breeding place of the lovebirds. Domestically, the pet shop
will sell 230 lovebirds. Customers may choose from those love birds.
Internationally, Love and Pair Co will export birds depending upon the demand of
the targeted customers outside the country.
H. Study of the availability of raw materials, utilities and labor requirements
The project has available materials in the form of love birds accessories,
maintenance and food supplies. These consist of cages, perches, food dishes,
maintenance, etc. These are obtained from JBlaza Lovebird and Pet Supplies
located at J. P. Rizal Street, Marikina City 1800, Philippines. This will be the main
supplier of Love and Pair Co for all the needs of the lovebirds. Weekly purchases
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of food-for-one-week supplies will be done to ensure the proper diet of the
lovebirds. Also, lovebirds will be given a monthly check-up to ensure their health.
Utilities include services to provide for water supply, electricity, sanitation, and
maintenance. The water supply will be primarily run by the Maynilad Water
Supply. MERALCO will be the trusted electricity provider of Love and Pair Co.
Pet Shop for proper ventilation and lightning in the pet shop as well as the
breeding room of love birds. Sanitations and cleanliness of the Love and pair Co.
Pet Shop’s facilities will be entrusted on the utilities personnel employed through
different agencies. Daily clean-up and weekly general cleaning will be executed
also so that cages will be properly maintained. Cleanliness of the cages will
ensure the lovebirds to be protected from any illness. This will also prevent any
unpleasant odor that could possibly arise if it not cleans properly.
Labor force of Love and pair Co. Pet Shop will be composed of the
employees who will be in the shop that will entertain the needs of the customers.
These employees undergo the process of recruitment to ensure that only
qualified personnel will comprise the organization. Also, Love and Pair Co. will
hire employees who are knowledgeable enough in taking care of lovebirds and
they will be assigned in the Breeding room. In addition, Love and pair Co. will
hire a veterinarian to check the lovebirds and maintain their healthy living.
I. Determination of type and quantity of waste to be disposed
Love and Pair Co. will maintain the cleanliness of its pet shop to avoid
having problems regarding waste disposal and also to attract customers. There
will be segregation process when it comes to garbage. Utilities personnel will be
the responsible for handling, processing and disposing all types of wastes on a
daily and weekly basis.
Biodegradable
Bird Food
Bird faeces
Rotten eggs
Non-biodegradable
Sacks
Plastics
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Chapter III
Management Aspect
This involves the determination of the form of ownership to be adapted, the
management procedure in the day-to-day operations, and the qualifications,
duties, and responsibilities of the employees, the organizational chart, and the
required documents to be submitted. It explains the pre-operating actions of the
business of the company.
Mission
The company endeavours to be acknowledged in the national and
international market, specifically Southeast Asian Countries as a highly regarded
source of a wide selection of good variety and quality lovebirds. The company
aspires to be involved in the endorsement of the sustainable progress of lovebird
species by adopting ethical breeding practices, and supporting its preservation
both in their captive and natural environments.
Vision
Cognizant of the challenges of the rapidly developing digital age, Love &
Pair Co. envisions to eventually be a One-Stop Bird Shop in the vast global
market with the upgrade of the company's telecommunications technology,
thereby making web-based viewing and purchasing of bird variety fast and easily
accessible.
Business Logo
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Love & Pair Co. is a pet shop with specialization for lovebirds only. Lovebirds are
known to be partners and they will die if they will have no companion. Because of
this, the partners decided to name the business Love & Pair Co.
Form of Ownership
Love & Pair Company will be established as a general partnership type of
merchandising business. The chosen business type is merchandising since the
business is involved in selling lovebirds inside and outside the country. The
company endeavours to be acknowledged in the national and international
market, specifically Southeast Asian Countries, as a highly regarded source of a
wide selection of good variety and quality lovebirds.
There will be five capitalists consist of the following persons:
NAME NATIONALITY RESIDENCE
Castillo, Jophet M. Filipino Caloocan City
Cañas, Arbiegail D. Filipino Marilao, Bulacan
Indiongco, Mark Harold V. Filipino Caloocan City
Naranjo, Pauline Mae L. Filipino Valenzuela City
Tumalad, KlevinEmilor E. Filipino Caloocan City
Each of them has an extensive knowledge in supervision of the day-to-day
and business operation. The main goal of this formation of ownership is to earn
money from selling domestically and among Southeast Asian Countries. Profits
will be shared by the partners equally as a form of return of their contribution.
Earnings of the corporation are taxed with accordance of Tax Laws and
Regulations.
Capitalization
The Love & Pair Co. will have a total contribution of Php 2,000,000 as
contributed by the following:
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Pre-operating Activities
In relation to the formulation of the partnership, legal processes are needed to
be followed with strict conformity in local government units and government
agencies. All the necessary requirements must be approved before the
organization can be put up. These are the basic requisites in opening up the
Love & Pair Co.:
SEC Registration
Articles of Partnership
Barangay Clearance
Community Tax Certificate (Cedula)
Photocopy of Original Transfer Certificate of Title/ Photocopy of Contact of
Lease
Picture of Establishment with sketch of location
o Outside view with Signboard
o Inside view
Agencies concerned:
1. Securities and Exchange Commission- Its major functions included
registration of securities, analysis of every registered security, evaluation of
the financial condition and operations of applicants for security issue.
Basic Requirements
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NAME CONTRIBUTION
Castillo, Jophet M. Php 400,000.00
Cañas, Arbiegail D. Php 400,000.00
Indiongco, Mark Harold V. Php 400,000.00
Naranjo, Pauline Mae L. Php 400,000.00
Tumalad, KlevinEmilor E. Php 400,000.00
1. Name Verification Slip;
2. Articles of Partnership; and
3. Joint affidavit of two partners undertaking to change partnership name,
provided in its Articles of Partnership or as amended thereafter, immediately
upon receipt of notice or directive from the Securities and Exchange
Commission that another corporation, partnership, or person has acquired a
prior right to the use of that name or that name has been declared
misleading, deceptive, confusingly, similar to a registered name, or contrary
to public morals, good customs, or public policy (not required if Articles of
Partnership has provision on this commitment).
Additional requirements
1. Endorsement/clearance from other government agencies, if applicable
2. For partnership with foreign partners
a) SEC Form No. F- 105
b) Bank certificate on the capital contribution of the partners
c) For foreign partners who want to register their investments with the
BSP: Proof of remittance
Note: If it is a limited partnership, the word “Limited” or “Ltd” should be
added to the partnership name. Articles of Partnership of limited
partnerships should be under oath only (Jurat) and not acknowledged before
a notary public.
SEC
Reservation of the Partnership Name P 120.00
Articles of Partnership 5,000.00
Legal Research Fee 100.00
Total P 5,220.00
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2. Local Government Units - Love and Pair Co. must get requirements for its
city of operations from different local government units. The needed papers in
putting up a business are:
Business Permits
Community Tax P 3,500.00
Barangay Clearance 500.00
Business Tax 156.25
Mayor's Permit Fee 600.00
Business Plate/Sticker 200.00
Refuse Fee 1,528.00
Garbage Fee 1,500.00
Sanitary Permit 1,000.00
Health Certificate Fee 100.00
Building Inspection Fee 400.00
Electrical Inspection Fee 400.00
Plumbing Inspection Fee 400.00
Billboard/Signboard Inspection Fee 200.00
Fire Safety Inspection Fee 24.00
Filling Fee 100.00
Processing Fee 18.00
Zoning and Land Use Verification Fees 400.00
Locational Clearance Fee 4,460.00
Mayor's Certificate 50.00
Total P 25,386.25
BIR
Registration Fee P 500.00
Certification Fee 100.00
Documentary Stamp 15.00
Print Receipts and Invoices 3,500.00
Total P 4,115.00
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4. Department of Trade and Industry – Love & Pair Co. must register with the
agency in order to legalize all the transactions involved in the conduct of its
business in local and international market. Also, this would help for the
diversification of Philippine trade both in domestic and foreign.
DTI
Basic Application Fee P 500.00
Documentary Stamps 15.00
Total P 515.00
5. Social Security System, Home Development Mutual Fund (Pag-Ibig),
PhilHealth- Love & Pair Co. must secure an employer number in every
agency as a reference of their monthly contributions. There are requirements
that Love & Pair Co. needs to have for the registration of the
employer/company:
Each Agency:
SEC Registration
Initial Mayor’s Permit
SSS
a. Employer registration form (Form R-1);
b. Employment report (Form R-1A);
c. List of employees, specifying their birth dates, positions, monthly
salary and date of employment; and
d. Articles of incorporation, by-laws and SEC registration.
PhilHealth
a. Employer data record (Form ER1);
b. Report of employee-members (Form ER2);
c. SEC registration;
d. BIR registration; and
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e. Copy of business permit.
Pag-Ibig
a. Employer’s Data Form (EDF)
b. Member’s Data Form (MDF)
6. Agencies about Animal Protection and Exportation
Exportation needs a lot of legal papers to be able to have transaction
especially Love & Pair Co. is selling live animals. The following agencies will
provide various permits regarding exporting lovebirds, procedures in proper
shipment of lovebirds and lastly, the protection of the lovebirds.
a. Bureau of Animal Industry is in-charge of the Import - Export procedures
for many differentkind of living animals, specifically lovebirds.
b. Philippines Pet Passport & Quarantine Information – The agency that will
provide papers regarding approval of selling lovebirds outside the
Philippines regards to the health condition of the lovebirds.
c. Pet Passport - The Pet Travel Scheme ("PETS") is a system which allows
animals to travel easily between member countries without undergoing
quarantine. A Pet Passport is a document that officially records
information related to a specific animal, as part of that procedure.
d. International Airport Travelling Association – the agency that take in-
charge of Philippines Customs, Currency & Airport Tax regulations.
e. PetRelocation.com – The agency that manages about how the lovebirds
will be delivered to the customers of Love & Pair Co. It depends on the
shipping that will be negotiated.
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f. Jet pets Animal Transport - The trusted Pet Travel Experts (Same with
PetRelocation.com)
Project Schedule
These are the activities of the business with their respective time
allocation starting from the month of September 2013 up to the start of the
operation:
Feasibility Planning
Time Span: One month (September 2013)
The first month is the feasibility planning phase. It determines the demand
and supply for the lovebirds, the target market and potential competitors of the
business. In this phase, forecasting and assumptions regarding the business are
planned in order to have clear preview of what will happen in the business.
Contribution of capital by the partners
Time span: Two weeks (First two weeks of October 2013)
The partners contributed Php 500,000 each as the initial capital of the
partnership to finance all the pre-operating activities. These activities include the
rent of the building, renovation of the building, registration fees, instalment of
utilities and other expenses.
Finding a premeditated location
Time span: Two weeks (First two weeks of October 2013)
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To be able to have this business, there must be a strategic location. The
partners chose a place where it is accessible and easily to be seen by the
prospect customers.Love and Pair Co. rents a building located at #38 McArthur
Highway, Potrero, Malabon City. It is a two storey building with the area of
approximately120 square meters in each floor and it costs Php 70,000 a month
excluding electricity and water bills.
Registration and completing required business permits and licenses
Time span: One month (Last two weeks of October to first two weeks of
November 2013)
These consist the following steps:
1. SEC registration of name and incorporation of the business.
2. Securing business permits and license to operate from the office of the
mayor.
3. Getting Barangay Clearance from the office of the barangay chairman
where the business will be located.
4. Registration of the business with the BIR, Philhealth, SSS and Home
Development Mutual Fund.
Building Improvements
Time span: One month and two weeks (November 2013 to first two weeks
of December)
The building will undergo improvement to accommodate the services that
will be offered by the business. It will be composed of a pet shop on the first floor
and a breeding room, office and a stock room on the second floor. Renovations
are needed in order to attract future clients of the business.
Acquisition of furniture and fixtures
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Time span: One month and two weeks (November 2013 to first two weeks
of December)
The acquisition of furniture and fixtures will be made during the building
renovations. These are selected to suit the facilities of the pet shop. The
acquisition of these furniture and fixtures are based on the needs of the pet shop
and the breeding centre of Love and Pair Co. All selected furniture and fixtures
are chosen by means of its usefulness as well as the price of it.
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Hiring of Employees
Time span: One Week (Third Week of December 2013)
Employees are important in the business because they will serve the man
power. The hiring will be administered by the partners. Stated job qualifications
should be met by the applicants to know if they are capable of the job that will be
given. They will be informed as well of their duties and responsibilities to the pet
shop as well as taking care the love birds in the breeding area.
Start of Operation
Time span: First week of January 2014, onwards
The Love & Pair Company will commence its operation after almost five
month.
GANTT CHART
Activities 2013 2014
Sept Oct Nov Dec Jan
Feasibility study
planning
Contribution of capital
by partners
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Finding strategic
location
Registration and
completing required
business permit and
licenses
Building improvements
Acquisition of furniture
and fixtures
Hiring of employees
Start of operation
Organizational Chart
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Key Personnel
Job title: Manager
Job specification:
At least 20 Years old and above
Must be a graduate of any business course
Must have at least 1 year experience in a managerial position
Must have the knowledge and skill about management
Strong leadership skills
Ability to effectively teach/develop others to next level.
Good merchandising skills and a flair
Strong interpersonal, motivational, communication and organizational
skills
Job description:
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Manager
Storekeeper/ Caretaker Veterinarian
Accountant
Cashier
Daily duties and responsibilities:
Monitors the daily operation of the pet shop
Handles customer’s grievances and needs
Ensure all orders are properly documented and released for pick-up
Communicate, execute, and manage marketing and merchandising
programs
Supervision of employee tasks and training
Monthly duties and responsibilities:
Communicate, execute, and manage marketing and merchandising
programs
Responsible for preparation of work schedules.
Other duties:
Can only make minor decision-making.
Develop and implement employee performance evaluations and
improvement plans.
Hires and fires an employee
Job title: Accountant
Job specification:
At least 20 Years old and above
Must be graduate of Bachelor of Science in Accountancy
Must have at least one year experience in General accounting and Book
keeping, preparation of financial reports and bank transactions.
Must have good decision-making skills specifically in management
advisory.
Must have a pleasing personality and credibility in giving advises and
decisions.
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Must have good communication skills
Must have good mathematical and analytical skills
Must be computer literate
Job description:
Daily duties and responsibilities:
Prepare forms and manuals for accounting and bookkeeping personnel,
and direct their work activities.
Records the daily financial transactions of the business
Provide clerical and administrative support to management as requested
Monthly duties and responsibilities:
Process payroll in a timely manner
Prepares schedule for receipts and disbursements
Keeps the records of the inflow and outflow of cash
Processes the utility bills
Develop, maintain, and analyze budgets, preparing periodic reports that
compare budgeted costs to actual costs.
Other duties and responsibilities:
Maintain an orderly accounting filing system
Advise management about issues such as resource utilization, tax
strategies, and the assumptions underlying budget forecasts.
Examine and analyze accounting records, financial statements, and other
financial reports to assess accuracy, completeness, and conformance to
reporting and procedural standards
Job title: Cashier
Job specification:
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At least 20 Years old and above
Must be a college graduate of bookkeeping/accountancy course
Must have knowledge of basic arithmetic.
Must have skill in handling and counting cash.
Must have skill in communications with public.
Job description:
Daily duties and responsibilities:
Counts money, gives change and issues receipt for funds received.
Maintains sufficient amounts of change in cash drawer.
Balances cash drawer and receipts; documents discrepancies.
Assists customers in locating specific items.
Keeps register area neat and stocked with necessary supplies.
Assists in other areas of store, such as clean-up, shelf-stocking, or
keeping merchandise displayed in an orderly manner.
Job title: Veterinarian
Job specification:
At least 20 Years old and above
Must be a graduate of Veterinary Medicine course
Must be a license veterinarian
Must have skill and passion in working with animals
Must have at least one year experience in veterinary position
Job description:
To ensure that love birds are in good health condition
To inform the management in case the love birds are infected of a disease
To provide medical aide to infected love birds
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Job title: Storekeeper/Caretaker
Job specification:
At least 20 Years old and above
Must be a college graduate
Must have knowledge and experience in storekeeping
Must have skill and passion in working with animals
Must have skill in concentrating on routine tasks
Must have at least two years driving experience as professional driver (for
delivery purposes)
Job description:
Daily duties and responsibilities:
Feed, water, nurture, and care for lovebirds
Clean and disinfect cages
Securing the condition of lovebirds
Other duties and responsibilities:
Ensure safe transport of animals
Store and release supplies or equipments
Record the number and the kinds of love birds supplies
Compile the records of the supplies
Checking the supplies from time to time
Internal Policies
Love & Pair Company set these following policies in order to promote
harmonious relationship and provide a health working environment for the
owners and the employees.
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General Policy
1. Working Hours
The store will operate from 8:00 AM to 5:00 PM. Each personnel will work
for eight hours. Working hours are recorded using a database system to
ensure the number of working hours.
2. Attendance, Absenteeism and Tardiness
The personnel are required to come to the shop 30 minutes before the
shop open.
The employees are expected to have a regular attendance.
If a staff will not be able to come to work, he/she will inform the managers
two hours before his/her shift starts and state a valid reason.
Leave of Absence
The following are the rules concerning specific leaves:
1. Sick Leave - A medical certificate shall be presented in all cases of
absence by an employee for three (3) consecutive days or more.
The regular pay rate shall be received by the employee during the
said leave. Employees shall receive a maximum allowable sick
leave of seven (7) days.
2. Vacation Leave – Love & Pair Company personnel are granted
vacation leave to be used for personal purposes. Employees shall
receive a maximum allowable vacation leave of five (5) days.
3. Maternity Leave - Women employees of Love & Pair Company are
granted maternity leaves for their childbirth and will be paid based
on their regular pay rates. A total of seventy five (75) days of
maternity leave are allowed for the women employees.
4. Paternity Leave - Men employees of Love & Pair Company are
granted paternity leaves to attend to their legitimate wife’s delivery
or miscarriage. There would be a maximum of seven (7) days of
paternity leave which will be paid in full.
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5. Emergency Leave – Love & Pair Company will grant emergency
leave to its personnel for a maximum of ten (10) days each
calendar year. Employees can use their emergency leaves in case
of injury, medical emergency, death and any other urgent matters
relating to their family members and immediate relatives.
3. Uniform
Every employee is required to wear proper uniform every time they will go
to work. Their uniform is designed with the logo of the Love & Pair Co.
Below is an illustration of the t-shirt of the Love & Pair Co. uniform:
(Front & Back View)
3. Payday/Compensation
The salary of the employees will be given on a semi-monthly basis. All
employees will be paid on the 15th and 30th day.All personnel will be
paid Php525 per day and the bookkeeper will be paid Php 12,000
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monthly. The manager of the shop, who is also a partner, will be paid
Php 15,000 monthly.
3.1 Employee Benefit
Mandatory benefits such as SSS, PhilHealth and Home Development Mutual
Fund (Pag-Ibig) Premiums are also provided to the employees and are based on
the SSS,PhilHealth and HDMF Contribution table provided by the law. Each
employee is entitled to a basic salary of P525.00 per day, accumulating to
P10,500.00 each month to which the said benefits are computed.
Number of employees SSS PhilHealth PAG-IBIG Total Employer's Share Monthly ER Annual ERCashier 1 P742.00 P125 P210.00 1077 1077 12924Storekeeper 2 P742.00 P125 P210.00 1077 2154 25848Total P2,226.00 P375.00 P630.00 3231 38772
Employee Number of employees SSS PhilHealth PAG-IBIG Total Employee's Share Monthly EE Annual EECashier 1 350 125 210 685 685 8220Storekeeper 2 350 125 210 685 1370 16440Total 1050 P375.00 P630.00 2055 24660
Social Security System (SSS) – The Social Security System was created by
the Philippine government. All employees hired by private companies are
required to become an SSS member (Republic Act No. 8282). This system
aims to protect its members for when they are unable to work such as
sickness, disability, maternity, old age and death, or other such contingencies
not stated but will result in loss of income or results to a financial burden.
Philippine Health Insurance (PhilHealth) – The Philippine Health Insurance
Corporation is the medical insurance company of the Philippines. All
employees are required to be contributors of this service (Republic Act
7875). Members are given health and hospitalization subsidies should they
or a dependent be hospitalized. Monthly contributions are based on actual
85
employee monthly salaries and the amount of employee contribution is
matched equally by the employer.
Home Development Mutual Fund (Pag-ibig Fund) – Employers are also
required to contribute, on behalf of their employees, to the Home
Development Mutual Fund (Republic Act 7835). This company provides the
lowest interest housing and land acquisition loans to its members that are
payable for up to 30 years. This gives every Filipino worker an opportunity to
own a house in easy-payment plans that can directly be deducted from their
monthly wages.
13th Month Pay – Based on Presidential Decree No. 851, all Filipino
employees are entitled to a year-end bonus equivalent to one (1) month
salary regardless of the nature of their employment. The 13th month pay is to
be given no later than December 24 of every year a worker is employed.
Overtime Pay and Holiday/Rest Day Pay - Under Article 87, an employee
who renders over eight (8) hours of service per day shall be given an
overtime pay which is equivalent to his regular hourly wage plus at least
twenty-five percent (25%) thereof. Under Article 93, if an employee is asked
to work on their scheduled rest day or on a non-working holiday, the
employee shall be paid an additional compensation of at least thirty percent
(30%) of his regular wage.
Other company benefits – Other company benefits that are not government
mandated, but are usually given to employees anyway are:
a. Mid-year Bonus – A midyear bonus is given to employees for P2,000.00
each
b. Christmas Bonus – This is given in December, on top of the 13th month
pay. This is considered as the company’s Christmas gift to their
employees.
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Chapter IV
Financial Aspect
Statement of assumption
Love & Pair Co., a partnership type of business, is managed by a partner,
Pauline Naranjo and has the following assumptions:
Each partner has a capital contribution amounting to Php 400,000.
Financial statements are projected for 10 years.
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The fair values of Biological Assets are based on the ages of lovebirds.
The inflation rate is 2.41%.
Operating rent expense for the lease is fixed for the 10 years.
Utilities expense increases by 5% every year.
90% of the purchased supplies will be used every year.
Advertising expense will decrease every year by 10%.
Repairs and Maintenance will increase every year by 10%
Property, plant and equipment are depreciated using the straight line
method.
SSS, PhilHealth and PAG-IBIG, contributions are based on the table
provided by the government.
Income tax is 30% of net income before taxes.
A bonus of 10% of net income after tax will be given to the managing
partner.
Remaining balance of net income will be shared equally by the partners.
The exchange rates of dollar to peso for 2014 to 2023 are and 41.48,
41.80, 41.60, 40.88, 41.20, 41.35, 41.72, 41.40, 41.80 and 41.65
respectively.
The 40% purchase is on account and 50% of it will be paid during the
year.
20% of sales are accounts receivable at the end of the year.
The salaries of Managing Partners, Pauline Mae L. Naranjo and Arbiegail
Cañas will be directly accounted to their capital.
Every partner withdraw Php 30,000 for 10 years except Pauline Mae L.
Naranjo and Arbiegail Cañas who withdraw 6th to 10th year Php 300,000
After 5 years we purchase Tools and Office Equipment and depreciated
using the straight line method.
We classified the breeders as biological asset and their chicks are
reclassified to inventory which is intended for sale.
The Mark-ups is 50% on domestic sales and 150% on export sales.
The export sale is zero rated vat.
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