THE EXECUTIVE SUMMARY

Project Background

Name of Proposed Business: Sweet Angel Choco-covered Camote Marbles

Type of Business Organization: Partnership
Location of Business: University of Bohol; Retail stores within the vicinity of the
university
Proponents: Madjus, Venus; Menciano, Jeremeil; Cainday, Jessa May; Ayag, Maria
Theresa; Gania, Charlyn Joyce; Solijon, Jelly Rose Mae

Management and Personnel Aspect Summary

The business is practical in terms of management aspect because all of its owners will
undergo trainings in the preparation of the product which will result in a productive output and
efficiency in operations. Constant communication will be encouraged to ensure harmonious
relationship between owners to meet the desired objectives of the business.

Marketing Aspect Summary

The target markets of the business are the students of the University of Bohol and

other potential consumers within the vicinity of the university thru the retail stores which will be
supplied with the product. The marketing aspect is practical because of the favorable market
climate since there is no active competition within the location of the business. Marketing
strategies will also include the use of posters and verbal media.

Production or Technical Aspect Summary

The business will be on an indoor setting which is located inside the university,

preferably in the canteen area. The ingredients are readily available in the local supermarkets or
any public market. The business will operate on a daily basis. The business will be able to meet
the technical requirements in terms of available ingredients, production processes, cooking
materials, management requirements and the business site.

Financial Aspect Summary

The business is profitable supported by its projected income statement. As interpreted

in the financial analysis, it showed that the business will have a steady growth. Based on the
Return on Equity analysis, the profit earned for every peso of capital invested by the owners is
decreasing every year due to the assumption that the net profit is proportionally increasing
along with the net worth of the business. The capital reserve will increase because of these
financial activities. Reflected on the Net Profit Margin is the annual increase of profit margin in a
stable increase. This is based on the assumptions that the profit growth is more considerable
than the sales growth, assuming that the operating expenses of the business is remained at
constant.

Socio-economic Aspect Summary

The socio-economic aspect is beneficial since the business is expected to generate

revenue thus providing rent income for the university. It will also provide an employment
opportunity and entrepreneurial experience to students who wish to be a part of the business.
CONCLUSION
Based on the results of the data gathered and presented in the financial analysis,
the business is profitable.

BUSINESS BACKGROUND

Project Proponent
The following students are the business partners: Madjus, Venus; Menciano, Jeremeil;
Cainday, Jessa May; Ayag, Maria Theresa; Gania, Charlyn Joyce; Solijon, Jelly Rose Mae. The
students have decided to use their savings and cooking materials to invest on the business.
Proposed Name of the Project/Business
The business is to be named Sweet Angel Choco-covered Camote Marbles which is
agreed by all owners.
Type of Business Organization
The proposed business is a partnership type of business organization. The owners
chose this type of organization because they have all agreed to equally divide the income.

Location of Business
Sweet Angel Choco-covered Camote Marbles will be located in University of Bohol,
preferably in the canteen area, since the location is due to the number of potential customers.

MANAGEMENT AND PERSONNEL ASPECT

Administrative Personnel
The proposed number of administrative personnel will include one (6) manager/owner.
Business Organizational Chart
The business will apply the line and staff type of organization in the event that the
owners will decide to hire additional employees. Employees can easily identify to whom they are
responsible and exact functions they are to perform in this type of organization.
The organizational chart of the proposed project is as follows:

Personnels Job Specification and Description

Position

Job Description

Employment status

Salary and Benefits

Manager/Owner

- Organize and supervise

Regular

Equal division of

administrative activities of
the business.
- Contributes to team effort
by accomplishing related
results as needed.
- Preparing/making the
product.

Management Proposal

profits

General Business Policies

In order to achieve maximum productivity and quality of the product, owners must
adhere to all the policies, rules and regulations of per agreed.
Company Policies and Regulations

All owners/employees must help in the operation of the business.

Employees must keep trade secrets of the business.

Any immoral or illegal offense or activity shall be dealt accordingly by

owners and/or the law.

Disciplinary Measures
Misdemeanour and violations are highly intolerable in the organization.
The following should policies must be observed:

Sleeping during the hours of duty is not allowed.

Gambling during the hours of duty is strictly prohibited.

Theft is highly intolerable.

Employees should observe good relationship towards each other.

Any employee who fails to comprehend the set of rules and regulation the business has
shall be subjected to disciplinary actions, within the discretion of the owners.

Working and Operating Hours

The business shall begin operations at 7:30 in the morning and will end till 5:30 in the
afternoon. Owners/Employees should report 10 minutes before time to observe punctuality.
Daily time record will also be done.

MARKETING ASPECT

Sweet potato is known to be cheap but excellent source of carbohydrates, vitamin A, carotene,
calcium, and phosphorus. It is also a fair source of thiamine and iron but poor source of
riboflavin, niacin, and vitamin C. This is the reason why the business not only promotes a
product that focuses on taste only but also because of its nutritive value as well. As a business,
the goals are of quality, innovation, and for health benefits. The ingredients used are readily
available and the production process does not take too long to finish, thus our marketing
strategy is to improve its taste yet to offer at a lower price.

Market Description
The market is favorable for the business since the location is within the university and
students can easily locate and buy our product.

We will also those retail stores near the

university to provide additional outlet for our product so as to improve its marketability and to tap
other customers aside from students. The demand situation of the Choco-covered Camote
Marbles is assumed to be highly positive for a five-year projection.

Proposed Marketing Program

The Sweet Angel Choco-covered Camote Marbles will offer best tasting and affordable
camote product. The product delivery process will be handled with utmost diligence and direct
distribution will be observed.
Demand Analysis

Table 1
Projected Demand

YEAR

PROJECTED DEMAND (pcs)

2015

40,500

2016

54,000

2017

67,500

2018

81,000

2019

94,500

Product
Camote (Sweet potato) products are easily marketable due to its cost and the potential
customers are already aware of its good taste. It is not that hard to prepare the Choco-covered
Camote Marbles, although the required ingredients should be always available and the
preparation of the product must be in compliance with the taste so as to preserve the quality
and uniqueness of the product.

Price
Pricing decision will vary to the current market cost of the camote (sweet potato) and the
other ingredients used in the product making.

Place
The business location will be inside University of Bohol canteen area. The location is
favorable due to number of potential customers, of which are mainly students, and because
there is also an available area for rent.

Marketing Strategies
The Sweet Angel Choco-covered Camote Marbles will offer free delivery to its direct
buyers of the product. Since the site is located inside the university, posters and verbal media
will be utilize in order to market the product so as to defray additional marketing expenses.
Sweet Angel Choco-covered Camote Marbles will directly contact other retail stores near the
university via telephone with regards to the consignment of the product. Sweet Angel Chococovered Camote Marbles will introduce its product to prospective buyers by directly
communicating with them in person or thru other means the buyers may prefer.

TECHNICAL ASPECT

Product Description

Sweet Angel Choco-covered Camote Marbles will offer a newly innovated product
made from different varieties of sweet potato. Sweet Angel Choco-covered Camote Marbles
will produce a tasty, yummy and delectable camote marbles that will satisfy its customers,
perfectly made down to the smallest detail. Sweet potato locally known as kamote or camote,
is commonly planted in flat to slightly rolling open areas. The crop is also known to be cheap but
excellent source of Carbohydrates, Vitamin A, Carotene, Calcium, and Phosphorus. It is also a
fair source of Thiamine and Iron but poor source of Riboflavin, Niacin and Vitamin C.

Production Process
Ingredients:

Camote 3-4 pieces

Condensed milk cup

Goya chocolate 2-3 bars
Dari Crme Butter 100g

Procedures
1. Boil camote for at least 30 minutes

2. After boiling, take out the boiled camote and peel off the skin

3. Mashed the camote and mix with the condensed milk

4. Form the mashed camote into small marbles

5. Melt the chocolate bars and dip the camote marbles

6. Chill the choco-covered camote marbles, Serve, and Enjoy

Production Schedule
Steps
Boiling
Peeling
Mashing
Mixing
Molding
Chilling
Total

Project Site

Time
30 minutes
10 minutes
15 minutes
20 minutes
25 minutes
30 minutes
3 hours

The business location will be inside University of Bohol canteen area. The location is favorable
because of the number of students which will serve as our main potential customers. It is
situated in an area with furnished electric and water line.

Technological Assistance
The business will obtain the following permits in compliance with legalization.

Food Sanitation Permit

Authorization from the administration of the University of Bohol for the operation of the
business inside the campus

Permit to operate from the City Government of Tagbilaran

Cost of Ingredients

Description

Source/s

Unit

Quantity/Volu

Total

Cost

Cost

me Needed

(per mixing)

Camote

Supermarket/Public Market

15

3-4

15

Condensed Milk

Supermarket/Public Market

26.20

26

Goya chocolate bar

Supermarket

18.65

37.30

Dari Crme Butter

Supermarket

24.50

24.50

Utilities

Description

Source/s

Water

Bohol Water Utilities Inc.

150

Power(Electricity)

BOHECO

300

Communication Systems

Globe/Smart

200

Transportation

Tricycle

150

Total Estimated Production Costs

Estimated Cost (per month)

Item

Year 1

Year 2

Year 3

Year 4

Year 5

Ingredients

166,860

222,480

278,100

333,720

389,340

330

330

330

330

Packaging and Other Indirect 15,617

Materials
Utilities

7,200

7,200

7,200

7,200

7,200

Rent

22,500

22,500

22,500

22,500

22,500

Total

196,890

252,510

308,130

363,750

419,370

FINANCIAL ASPECT

Project Cost

Php4,536 which will be divided equally by each owner/partner (Php736/partner)

Financial Assumption

All sales are on cash basis. No sales on credit.

There is no increase on the selling price.

No increase in utilities and rent expense for 5 years.

No increase in utilities expenses for 5 years.

No withdrawals are made by the owners.

All products made are sold within the time frame.

Financial statements are prepared at year end subsequent to payments of utilities

expenses for the month of December.

There is a demand increase of 100 pieces per year.

There is no accounts payable.

Financial Statements

Income Statement - The business is expected to have a gradual increase in profits

every year as shown in the projected Income statement below:

Sweet Angel
Statement of Financial Performance
For the year ended December 31
Year 1
Year 2
Year 3
Sales(schedule 1)
324000
432000 540000
Direct Cost of Goods Sold(schedule
2)
166860
222480 278100

Year 4
648000

Year 5
756000

333720

389340

Other Cost of Goods Sold(schedule

3)
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Utilities(schedule 4)
Transportation
Rent
Total Operating Expenses
Net Profit
Net Profit/Sales %

15617
182477
141523
43.68%

20822
243302
188698
43.68%

26028
304128
235872
43.68%

31234
364954
283046
43.68%

36439
425779
330221
43.68%

5850
1350
22500
29700
111823
34.51%

5850
1350
22500
29700
158998
36.81%

5850
1350
22500
29700
206172
38.18%

5850
1350
22500
29700
253346
39.10%

5850
1350
22500
29700
300521
39.75%

Schedules and Supporting Computations in the Income Statement:

Schedule 1 Computation of sales: SP x projected demand (yearly)

Year 1 :

PHP 8 x 40,500 pieces = PHP 324,000

Year 2 :

PHP 8 x 54,000 pieces = PHP 432,000

Year 3 :

PHP 8 x 67,500 pieces = PHP 540,000

Year 4 :

PHP 8 x 81,000 pieces = PHP 648,000

Year 5 :

PHP 8 x 94,500 pieces = PHP 756,000

Schedule 2 Computation of Direct Cost of Goods Sold:

Year 1 :

PHP 103.00 cost per mixing x 12 times x 135 days = PHP 166,860

Year 2 :

PHP 103.00 cost per mixing x 16 times x 135 days = PHP 222,480

Year 3 :

PHP 103.00 cost per mixing x 20 times x 135 days = PHP 278,100

Year 4 :

PHP 103.00 cost per mixing x 24 times x 135 days = PHP 333,720

Year 5 :

PHP 103.00 cost per mixing x 28 times x 135 days = PHP 389,340

Schedule 3 Computation of Other Cost of Goods Sold:

Year 1 :

PHP 9.64 cost per mixing x 12 times x 135 days = PHP 15,617

Year 2 :

PHP 9.64 cost per mixing x 16 times x 135 days = PHP 20,822

Year 3 :

PHP 9.64 cost per mixing x 20 times x 135 days = PHP 26,028

Year 4 :

PHP 9.64 cost per mixing x 24 times x 135 days = PHP 31,234

Year 5 :

PHP 9.64 cost per mixing x 28 times x 135 days = PHP 36,439

Schedule 4 Utilities Expense

Water

PHP 150x 9 months =

PHP 1,350

Power (electricity)

PHP 300x 9 months =

PHP 2,700

Communication System

PHP 200x 9 months =

PHP 1,800

Total

PHP 5,850

Financial Analysis
The business is very profitable and promising due to the desirable Gross Margin and Net
Margin percentage as presented in the Statement of Financial Performance.

Projected Cash Flows

We want to finance growth mainly through cash flow. We recognized that this means
we will have to grow slowly.
Sweet Angel
Statement of Cash Flows
For the year ended December 31

Cash Flows from

Operating Activities
Collections from

Year 1

Year 2

Year 3

Year 4

Year 5

324000

432000

540000

648000

756000

Customers
Purchase of
Ingredients and
Packaging
Total Operating
Expenses
Net Cash from
Operating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Net
increase(Decrease)
in Cash
Cash, beginning of
reporting period
Cash, end of
reporting period

182477

243302

304128

364954

425779

29700

29700

29700

29700

29700

111823

158998

206172

253346

300521

111823

158998

206172

253346

300521

4536

116359

275357

481529

734875

116359

275357

481529

734875

1035396

Projected Balance Sheet

Sweet Angel
Statement of Financial Position
December 31
Year 1
Year 2
Year 3

Year 4

Year 5

Assets
Cash

116359

275357

481529

734875

1035396

116359

275357

481529

734875

1035396

Accounts Payable

Total Liabilities

Capital

116359

275357

481529

734875

1035396

Total Liabilities and Capital

116369

275357

481529

734875

1035396

Inventory / Supplies
Total Assets
Liabilities and Capital

The balance sheet shows a slow but steady upward growth in net worth after initial start-up.

Return on Equity or Net Worth

Return on Equity (ROE) is an indicator of business profitability by measuring how much profit
the business generates with the money invested by the owner.

Return on
Equity =

Net Profit
Net Worth

Year 1

Year 2

Year 3

Year 4

Year 5

111823
116369

158998
275357

206172
481529

253346
734875

300521
1035396

96.09%

57.74%

42.81%

34.47%

29.02%

Analysis: The profit earned for every peso of capital being invested by the owners during the
years 1, 2, 3, 4 and 5, is PHP0.9609, PHP0.5774, PHP0.4281, PHP0.3447, PHP0.2902
respectively.
The diagram communicates that the Return on Equity deceases every year. This is because of
the increase in net worth due to the net profit earned every year and then closed directly to the
equity of the business.

Net Profit Margin

Net Profit Margin measures how much of each pesos earned by the business is translated into
profit.

Net Profit
Margin =

Net Profit
Net Sales

Year 1

Year 2

Year 3

Year 4

Year 5

111823
324000

158998
432000

206172
540000

253346
648000

300521
756000

34.51%

36.81%

38.18%

39.10%

39.75%

Analysis: The net profit margin in year 1 is 34.51%. This indicates that every peso earned by
the business is translated into PHP0.3451 profit. The profit earned for every one peso sales

during years 2, 3, 4, and 5 is PHP0.3681, PHP0.3818, PHP0.3910, and PHP0.3975

respectively.
The diagram communicates that the Net Profit Margin is increasing. This is because the quantity
of products sold every year also increases significantly. The increase of profit is more
considerable compared to the increase of sales due to the assumption that the operating
expenses remains at constant.

SOCIO ECONOMIC ASPECT

Camote or Sweet potato is cultivated as a perennial in tropical and subtropical lowland

agro-ecologies and most towns here in the province of Bohol cultivates it as a source of income.
The establishment of Sweet Angel: Choco-covered Camote Marbles improves the potential of
root crops in the food industry by introducing a budget and healthy snack.

To the general populace, camote/sweet potato is also known primarily for table
consumption due to its nutritional content. It is a terrific source of manganese and other
nutrients for health benefits.

To the students, since the business is within the vicinity of the university, this
entrepreneurial activity can provide experience to those students who wish to be a part of the
business without needing much academic knowledge, where even out of school youths can also
be utilized.

The business would also generate revenue for the school through rent. It would also
generate revenue for the government thru payment of permits and in turn, help improve the
economic situation of the community. The earnings could improve the well-being of the local
community and society.