Chapter 1 4

St.
Paul University Philippines 1

Tuguegarao City, Cagayan 3500
Chapter I
THE PROBLEM & BACKGROUND OF THE STUDY
Introduction
Philippine cuisine consists of the food, preparation
methods, and eating customs found in the Philippines. The
style of cooking and the food associated with it have
evolved over many centuries from their
Austronesian origins to a mixed cuisine
of Indian, Japanese, Malay, Chinese, Spanish,
and American, as well as other Asian Indian adapted to
indigenous ingredients and the local palate.
The proposed business plan is to introduce new
flavors to the delicacy named Pawa. As a common commodity
found mainly in Piat, Cagayan, Pawa is a delicacy that
most tourists purchase as pasalubong. Pawa became famous
for its appetizing steamed buns made of sticky or
glutinous rice filled with grounded peanuts. As it gains
popularity, more and more tourists and locals are
attracted by its unique blend of flavor. And considering
SPUP School of Business Accountancy and Hospitality Management

St. Paul University Philippines 2
that consumers tend to look for something new, adding
variety of flavors into its original taste may satisfy
people's savor. This business plan plans to explore and
introduce new flavors of Pawa.
Review of Related Literature
To show relevant information about this business
plan, the following are related and relevant literatures
and studies.
According to de Leon (2011), this paper
introduces rice to the reader and analyzes the changes it
has gone through the past 100 years in the hands of
varietal improvement science. Here, the richness of the
crop as a genetic material and resource is revealed. Over
time, its many types included landrace rice, pure line-
selection rice, cross-bred rice, semi dwarf rice,
hybrid rice, new-plant-type rice, and designer rice-
choices ranging from the traditional to the modern and the
futuristic. There is rice for lowland, upland, and cool-
elevated areas; for irrigated and rained areas; and for

saline-prone, drought-prone, and flood-prone areas-each
kind serving as a wonderful display of biodiversity.
Rice for dry or wet season farming and rice for double-
cropping per year also exists. Of course, there must
be rice for daily consumption and rice for important
occasions. There is nonstick rice or
the glutinous opposite; well milled or brown rice;
red rice; aromatic rice; rice rich in micronutrients;
golden rice; the generic fancy or specialty rice; and
even rice with healing wonders or medicinal properties.
Through purposeful research and development, rice ably
provides for various needs. And although already very much
transformed, rice remains culture friendly, like the
science that does not tire to improve it. Viewed in this
sense, rice continues to be very precious and
indispensable to Filipinos.
According to Gray (2015), glutinous rice, also known
as sticky rice, sweet rice or pearl rice, is a form of
short-grain rice that has a higher starch content than its
medium- or long-grain cousins. Manufacturers remove the

husk, bran and germ of the rice grain to produce this
sticky white rice that is a staple food in many Asian
countries. Glutinous rice is relatively healthy, having an
extremely low fat content, but it doesn't offer the
nutritive value of brown or wild rice. Macronutrients, a
1-cup serving of cooked glutinous white rice contains 169
calories, 36.7 g of carbohydrate, 3.5 g of protein, 1.7 g
of fiber, 0.3 g of fat, 9 mg of sodium, a negligible
amount of saturated fat and no cholesterol, according to
the U.S. Department of Agriculture's National Nutrient
Database. Carbohydrate accounts for roughly 90 percent of
the calories, protein for 8 percent and fat for 2 percent.
Vitamins, the same serving of rice offers 7 percent of the
pantothenic acid; 3 percent of the thiamine, niacin and
vitamin B-6; and 2 percent of the riboflavin that the Food
and Nutrition Board of the Institute of Medicine advises
adults to consume daily. These five vitamins are water-
soluble B-complex vitamins that play vital roles in
healthy skin and vision, hormone and red blood cell
formation, and central nervous system and metabolic

function. Glutinous white rice also contains trace amounts
of other vitamins. Minerals, a 1-cup serving of glutinous
white rice also provides 18 percent of the selenium, 6
percent of the zinc and 2 percent of the magnesium and
phosphorus that adults should consume each day. These four
essential dietary minerals aid in muscle, nerve, thyroid
and immune function; protein and DNA synthesis; wound
healing; cell division; energy storage; heart rate and
blood pressure regulation; and bone health and red blood
cell oxygenation, according to the National Institutes of
Health Office of Dietary Supplements and the Linus Pauling
Institute at Oregon State University. Glutinous white rice
also contains smaller amounts of other minerals.
According to Loha-unchit (1995), the people of
northern and northeastern Thailand prefer to consume a
variety of rice called kaoniow or, literally, "sticky
rice." Easily cultivated on the hillsides and high
plateaus of these two regions, it requires less water to
grow than the wet rice of the central lowlands. More

commonly known as "sweet" or "glutinous" rice among other
Asians, it is usually identified by either of these two
names on the labels of rice sacks.
According to the Peanut Institute website
(www.peanut-institute.org), peanuts and peanut butter are
full of nutrients. Vitamins and minerals, including hard-
to-get vitamin E, magnesium, and potassium, as well as,
bioactive components like resveratrol and phytosterols are
packed into small peanut kernels, making them a healthy
and critical addition to your snacks and meals. Peanut
eaters consume more hard-to-get nutrients and have higher
quality diets according to a study conducted by Penn State
(15). The contribution of nutrients to the diet from
peanuts is significant and can be important since reports
resulting from the 2005 US Dietary Guidelines reported
that adults and childrens intake of several nutrients,
including magnesium, potassium, and vitamin E are poor,
dubbing these as nutrients of concern.

According to Anonymous (2004), a new study concludes
that a moderate fat weight loss diet rich
in peanuts, peanut butter and peanut oil is better than
the typical low-fat diet. The peanut-based diet resulted
in a 14 per cent reduction in cardiovascular risk compared
to a 9 per cent reduction for the low fat diet. The
American Journal of Clinical Nutrition in its February
2004 issue reported that both diets helped overweight and
obese men and women lose about 2 lbs a week. Those on the
low fat diet experienced a drop in their good HDL
cholesterol levels, whereas those on the diet rich
in peanuts did not. Afterwards in the important weight
maintenance period, the low fat, high carbohydrate diet
caused bad LDL cholesterol and triglyceride levels to
rise. Those on the peanut rich moderate fat diet continued
to enjoy much lower levels of these heart disease risk
factors. This study shows that lowering total fat intakes
drastically can have adverse consequences on heart disease
risk factors even if people lose weight. The authors
concluded their results advice against a diet that

provides appreciably lower than 30 per cent calories from
fat to achieve weight loss. This newest study effectively
demonstrates that peanuts, as a major contributor of
monounsaturated fats to moderate fat diets, can aid weight
loss while also protecting the heart. As well as making a
valuable contribution to calorie controlled
diets, peanuts and peanut butter are sources of important
nutrients such as potassium, magnesium, zinc, folate,
vitamin E and phytosterols. Peanuts have a very low
glycaemic index (GI) of 14, are a good source of vegetable
protein and fiber and are naturally low in carbohydrate -
all factors that aid effective weight loss.
The Peanut Institute, a US non-profit organization that
supports nutrition research and develops educational
programs to encourage healthful lifestyles, supported this
study.
According to Regan (2015), eating peanuts could be
associated with a longer, healthier lifespan and
particularly a reduced risk of cardiovascular-related
deaths such as heart attacks and strokes, a new study has

found. Researchers from Vanderbilt University and the
Shanghai Cancer Institute examined nut intake for people
from different ethnic groups and lower-income households.
As peanuts (which are actually legumes) are rich in
nutrients and are inexpensive to buy, they could be a
cost-effective way to improve cardiovascular health,
reports Science Daily. In the study, we found that peanut
consumption was associated with reduced total mortality
and cardiovascular disease mortality in a predominantly
low-income black and white population in the U.S., and
among Chinese men and women living in Shanghai, said
author of the study, Xiao-OuShu. Previous studies have
linked eating nuts to a lower mortality but had generally
focused on higher-income, white populations. Researchers
claim the new study published in the journal JAMA Internal
Medicine is the first to discover all races could
potentially benefit from eating nuts. They examined three
large groups involving more than 70,000 black and white
men and women living in the U.S. and more than 130,000 men
and women living in Shanghai. The results found that those

who ate peanuts across all three groups had improved total
mortality and less cardiovascular disease. But scientists
warn that the study was based on observational data
collected from questionnaires, rather than clinical
trials, so they cannot determine whether peanuts are
specifically responsible for a lower risk of death. The
findings from this new study, however, reinforce earlier
research suggesting health benefits from eating nuts, and
thus are quite encouraging, said William Blot, co-author
of the study. While peanuts may be linked to better
cardiovascular health, experts caution against eating too
many, especially salted nuts, as they are high in
calories. Researchers say a small handful of nuts could be
beneficial if eaten as part of a well-balanced diet.
According to Schor (2015), this study tells us 2
important things. First, eating nuts certainly appears
beneficial, as it is associated with lower overall
mortality and in particular with a 30% to 40% decrease in
mortality from ischemic heart disease across racial and
class lines. While we might have assumed this already

based on earlier studies, the present study may be the
first to actually confirm it. Secondand perhaps more
importantconsuming peanuts, which are technically not
even nuts, appears to provide the same health benefits as
does eating true tree nuts.
According to Santos (2014), this is great news for
all the chocolate lovers out there; as one study done at
Taub Institute at the Columbia University Medical Center
revealed that chocolates improve memory. A component of
chocolate has been found to reverse age-related memory
loss in healthy adults aged 50-69. Researchers shared that
the rejuvenating effect of chocolates can be attributed
to its capacity to increase blood flow in a specific
region of the brain. The study is a milestone in medical
science, as this is the first direct link that age-related
forgetfulness is caused by changes in a specific part of
the brain. The study is also the first piece of evidence
that memory decline can be reversible by changing diet.
According to Merano (2015), the cacao bean is no
stranger to the world. It is in almost every chocolate and

coffee product on the global market. Cacao is responsible
for the rich, chocolaty flavor that millions love in their
beverages and sweet treats. Despite being popular, many
hardly encounter cocoa in its raw form, except for
exporting countries like South America, Africa and the
Philippines. Pure cacao is filled with antioxidants and
nutrients that can change your health for the better. The
first thing that comes to mind when mentioning cacao is
antioxidants. The more cacao a product contains, the
richer it is in antioxidants or flavonoids. Cacao also
contains serotonin and theobromine. Its vitamin profile
includes vitamins A, B, C and E. Cocoa also has large
quantities of calcium, copper, iron, manganese, potassium
and zinc. Although it contains caffeine, it is in smaller
amounts.
According to philfoodie.blogspot.com (2011) coconut
oil is likely the most commonly used edible cooking oil in
the Philippines which is a leading producer of coconuts
and the largest exporter of copra (dried coconut meat)
from which coconut oil is often extracted. Virgin coconut

oil (VCO) say many coconut oil advocates is the best
choice with its tocopherols that act as antioxidants.
However, because of a low smoke point (138 degrees
Celsius) unrefined coconut oil is unsuitable for frying.
Refined coconut oil on the other hand has a higher smoke
point (around 177 degrees Celsius). Oil that reaches its
smoke point begins to break down and release potentially
harmful carcinogens. Refined bleached deodorized (but not
hydrogenated) coconut oil, often referred to as RBD
coconut oil, is the cooking oil one most commonly finds on
Philippine supermarket shelves. Coconut oil is often
labeled as vegetable oil; recently it has been marketed as
lauric oil. Common local brands include Minola, Baguio,
Cook Best, Golden Fry, Marca Leon, Magnolia Nutri-Oil,
Spring, and Magic Fry. The Coconut Industry Investment
Fund (CIIF) Oil Mills Groups is the largest coconut oil
producer in the Philippines.
Coconut oil's saturated fats are commonly cited as a
reason to avoid coconut oil and they were previously
demonized as unhealthy but this is mainly due to

association with other foods with high saturated fat
content since there are not many studies that directly tie
coconut oil to bad outcomes and the ones that do used
partially hydrogenated coconut oil that contained trans
fats or induced essential fatty acid deficiency. Saturated
fats like coconut oil actually have a theoretical
advantage over unsaturated fats since they are more stable
in normal conditions and do not oxidize as easily.
According to Dr.HealthBenefits.COM (2016) Pandan
leaves is some plant that mostly grow in southern Asia and
usually grow wild on your garden. In some country such
Indonesia Pandan is one of the needed ingredient to make
traditional or even daily food so that it can taste more
delicious. Its fragrant also smell good and rise your
appetite. Health benefits of Pandan Leaves for some
treatment is very potent. Based on many long term studies
and observations pandan leaves occur to have so many
benefits for health. It can be a natural and safe
traditional cure. It also recommended by some doctors to
help you boost your health.

The pandan known as Pandanusamaryllifolius is one of
such plants with promising antibacterial potential. It is
an evergreen perennial aromatic plant, a cultivated plant
now found worldwide due to importation and human migration
(Igardendigest [Online], 2009). It is also a tropical
plant in the screwpine genus which is known commonly as
pandan and used widely in Southeast Asian cooking
(Wikipedia [Online], 2009). It contains an aromatic
volatile oil that is being used in other countries as a
purgative, cardiotonic and cephalic (for headaches) as
well as for wounds, with one writer claiming that the oil
has antiseptic properties comparable to that of eucalyptus
oil. The Philippine National Formuby suggests the use of
the roots in decoction as a diuretic besides for headache
and rheumatism (Tan, 1980).
Studies on pandan-derived compounds and fractions
revealed its antioxidant potential (Fatihanim et al.,
2007) and anticancer activity (Kumar et al., 2007).
Various pandan species also demonstrate selective

antibacterial and antiviral activity (Tan et al., 2007;
Ooi et al., 2005; Ooi et al., 2004). It also has potential
as a pest management tool (Ho and Li, 2003). The
antibacterial properties however of P. amaryllifolius are
not yet scientifically established particularly on its
crude extract. However, only one percent of the known
species were chemically investigated. The Pandanaceae is
commonly focused on their traditional uses e.g. in cooking
and for some medicinal purposes (Takayama et al., 2000 as
cited by Mohsin et al., 2008).
According to Arnarson (2012) Pork is the meat of the
domestic pig (Susdomesticus). It is the most commonly
consumed red meat worldwide, especially in eastern Asia,
but its consumption is forbidden in certain religions,
such as Islam and Judaism. For this reason, pork is
illegal in many Islamic countries. It is often eaten
unprocessed, but cured (preserved) pork products are also
very common. These include smoked pork, ham, bacon and
sausages. Being high in protein and rich in many vitamins

and minerals, lean pork can be an excellent addition to a
healthy diet

Conceptual Framework
A conceptual framework is a group of concepts that
are broadly defined and systematically organized to
provide a focus, a rationale, and a tool for the
integration and interpretation of information. It is the
conceptual basis for many theorizes, such as communication
theory and general system theory.
Input Process Output
Environmental Scanning
Need and Resource Analysis
Profile of the consumer participants
Demand and Supply Analysis
Profile of the supplier participants
Benchmarking Business Plan of Flavored Pawa
Condition and status of the targeted area
AnswersMarketing Analysisof the floated questionnaires
of the participants
Try-out of Production and Operation
Budgeting for Production and Operation and Financial Statement Preparation and Analysis
Feedback

Statement of the Problem
This research deemed to develop a business plan that is
based in Poblacion 01 & 02, Piat, Cagayan.
Specifically, it aimed to answer these questions:
1. What is the profile of the participants in the
communities according to:
1.1 Age
1.2 Gender
1.3 Civil Status
1.4 Educational Attainment
1.5 Occupation
1.6 Salary Bracket
1.7 Health Status
2. What are the available resources found in the
communities mentioned?
3. Is there a need for new flavors of Pawa in the
4. What is the marketing plan for flavored Pawa in
the communities mentioned?
5. What is the management plan for flavored Pawa in

6. What is the operational or production plan for
flavored Pawa in the communities mentioned?
7. What is the financial plan for flavored Pawa in
8. What is the socio-economic benefit of flavored
Pawa in the communities mentioned?
9. How financially feasible is the business on the

Scope and Limitations
This study aims to identify customers taste and
satisfaction in the Flavored Pawa. This study limits the
coverage on people currently residing in Piat, Cagayan and
their tourists but generally focusing on the target market
to be explained in the marketing plan.
This study was be conducted during the summer of 2016
through first semester of 2016-2017.

Significance of Study
The researchers decided to come up with this business
plan to help the community of Piat, Cagayan grow
productively, by introducing an innovation of their
delicacy with by adding various combinations of flavored
glutinous rice and a variety of fillings. More
specifically, this product will benefit the following:
Researchers. This business plan lets the researchers
acquire new knowledge that they can use in their
profession. This paper will enlighten their thinking in
the reality of life as they walk towards the business
world.
Community. The business plan will be a source of
extra income for them. They will gain experience and an
understanding on the different intricacies of a business.
Consumers. The proposed product will bring upon an
eye-opening innovation of the appreciation of various
flavors of Pawa.

Future researchers. This business plan will be a
basis for innovation and improvement of the product to
come up with a new better one.
Businessmen. This business plan will be a potential
business that businessmen will be able to invest and
venture into.

Definition of Terms
Terms here are conceptually and operationally
defined for better understanding of the readers.
Business Plan A business plan is a written document that
describes in detail how a business, usually a new one, is
going to achieve its goals. A business plan lays out a
written plan from a marketing, financial and operational
viewpoint. Sometimes, a business plan is prepared for an
established business that is moving in a new direction.
Cacao/Chocolate a sweet food that is found almost
anywhere in the world. It was be used as a flavor for the
flavored Pawa
Financial Analysis - is the examination of a business from
a variety of perspectives in order to fully understand the
greater financial situation and determine how best to
strengthen the business.
Financial Plan a comprehensive evaluation of an
investor's current and future financial state by using

currently known variables to predict future cash flows,
asset values and withdrawal plans
Glutinous Rice the kind of rice used in making Pawa.
Grounded Peanuts the filling found inside of Pawa.
Marketing Plan a comprehensive document or blueprint
that outlines a company's advertising and marketing
efforts for the coming year. It describes business
activities involved in accomplishing specific marketing
objectives within a set time frame.
Operational Plan a plan prepared by a component of an
organization that clearly defines actions it will take to
support the strategic objectives and plans of upper
management
Pandan also known as screw pine leaves. The leaves go
well with coconut milk, milk, and glutinous rice. It was
also used as a flavor for the flavored Pawa.
Pawa a common delicacy found in Piat, Cagayan. It is
made up of sticky/glutinous rice filled with grounded
peanuts.

Pork the flesh of a pig used as food, used as a filling
for the Pawa.

Chapter II
METHODS AND PROCEDURES
This chapter includes the research method and
procedures that were used in conducting the entire study.
It describes the research design, participants of the
study, research instrument, data gathering procedure and
data gathering technique.
Research Design
The researchers used the descriptive method of
research to define the satisfaction of the consumers and
on how to gain the trust of customers. This study was
conducted in order to assess the experimentation brought
by the demands on having an innovated healthy snack at a
reasonable price.
Participants of the Study
The participants of the study are the citizens and
tourists of the Town of Piat, especially the tourists
being the target market of the proposed business. The

participants who were asked to evaluate during the survey
were randomly selected.
Research Instrument
In the process of gathering data for this study, the
researchers used the survey questionnaire method. The
researchers made use of questionnaire as an instrument,
for it is the cheapest and easiest type of survey to. It
includes the profile of participants and series of
questions to achieve the studys objective. Questions were
asked to assess the feasibility of the business and to
obtain reasonable estimates for financial budgets and
forecasts.
Questionnaires were handed to those individuals who
had the opportunity to taste the product for them to
freely provide a remark as regards to Flavored Pawa. This
method demonstrated an on the spot feedback of
participants. The researchers used the data that were
gathered using the provided questionnaires to provide

improvements to the product as a direct response to the
demands of the participants.
Data Gathering Procedure
The researchers used different procedures in
gathering necessary data for this business plan.
1. The researchers asked approval from the Dean of
the School of Business, Accountancy and Hotel
Management to allow the researchers conduct the
study.
2. The researchers made a letter addressed to the
respondents to allow the researchers float the
questionnaires to them.
3. The product was introduced to random people and
food tasting was done by the respondents.
4. Questionnaires were handed out to the
respondents.
5. Data gathered were tabulated, analyzed, and
interpreted.

Data Analysis
The researchers used break-even point, frequency
count and percentage, weighted mean and descriptive
interpretation and Ratio Analysis for the financial plan.
Break-even Analysis was used to determine the break-
even point where profit exceeds the expenses incurred. It
is relevant that the researchers identify the startup
costs which help determine the needed sales revenue to
cover the ongoing business expenses.
Frequency Count and Percentage Distribution were used
to determine the profile of the respondents in terms of
their gender, age, educational attainment and income.
Weighted Mean and Descriptive Interpretation were
used to interpret the responses of the respondents on

various questions concerning the feasibility of the
product specifically on its features.
Ratio Analysis was used to evaluate aspects of a
companys operating and financial performance at its
efficiency, liquidity, profitability and solvency.

Age Frequency Percentage

20-29 18 36%
Below 20 years old 12 24%
40-49 8 16%
30-39 7 14%
50 years old and above 5 10%
Total 50 100%
CHAPTER III
RESULTS AND DISCUSSIONS
Summary of Tables
Table 1. Frequency and Percentage Distribution of
Participants Profile when grouped according to Age.
Table 1 presents Frequency and Percentage
Distribution of Participants Profile when grouped
according to Age.
It shows that of the 50 participants, 5 or 10 % are
in the age bracket of 50 years old and above. This is
closely followed by those in the age bracket of 40-49,
having a frequency of 8 or 16% of the participants. Next,
are at the age of 30-39, with a frequency of 7,
representing the 14% of the participants. There are 18 or

36% are in the age bracket of 20-29 while 12 or 24% aging
below 20 years old.
Participants Profile when grouped according to Gender.
Gender Frequency Percentage

Female 27 54%
Male 23 46%
Total 50 100%
Table 2 presents the Frequency and Percentage
according to Gender.
It shows that of the 50 participants, 23 or 46% are
in male and the other 27 or 54% are female.

Participants Profile when grouped according to Civil
Status.
Civil Status Frequency Percentage

Single 29 58%
Married 20 40%
Separated 1 2%
Total 50 100%
according to Civil Status.
single. This is followed by 20 or 40% married
participants. Then, there is 1 or 2% who is separated.

Participants Profile when grouped according to
Educational Attainment.
Educational Attainment Frequency Percentage

College 26 52%
High School 19 38%
Elementary 3 6%
Post-Graduate 2 4%
Total 50 100%
according to Educational Attainment.
elementary graduates. It is followed by 19 or 38% of the
participants who attained High School level. Then, 26 or
52% of the participants are College graduates and 2 or 4%
have attained Post-Graduate level.
Participants Profile when grouped according to Salary
Bracket.

Salary Bracket Frequency Percentage

21,000 and above 8 32%
16,000-20,000 6 24%
6,000-10,000 6 24%
11,000-15,000 4 16%
5,000 and below 1 4%
Total 25 100%
according to Salary Bracket.
It shows that of the 25 participants, 8 or 32% have a
salary bracket of 21,000 and above. It is closely followed
by those who have salary bracket of 16,000-20,000, having
a frequency of 6 or 24% of the participants. Next, those
who have a salary bracket of 11,000-15,000, with a
frequency of 4 or 16% of the participants. There are 6 or
4% having a salary bracket of 6,000-10,000 while 1 or 4%
has a salary of 5,000 below.
Participants Profile when grouped according to Health
Status.

Health Status Frequency Percentage

Healthy 36 72%
Underweight 10 20%
Overweight 4 8%
Total 50 100%
according to Health Status.
underweight. Those who are healthy have a frequency of 36
representing the 72% of the participants. There are 4 or
8% who are obese.
Participants who have eaten Pawa.
Have they eaten Pawa? Frequency Percentage

Yes 50 100%
Total 50 100%

Distribution of Participants who have eaten Pawa.
It shows that of the 50 participants, 50 or 100% have
eaten Pawa.
Table 8. Frequency and Percentage Distribution of how
often the Participants eat Pawa.
Phase Frequency Percentage

Rarely 20 40%
Occasionally 19 38%
Often 10 20%
Always 1 2%
Total 50 100%
Distribution of how often the Participants eat Pawa.
It shows that of the 50 participants, 1 or 2% always
eat Pawa. Next to it is having a frequency of 10
representing the 20% that just often eat Pawa. There are
19 or 38% who occasionally eat Pawa while 20 or 40% rarely
eat Pawa.

Participants who prefer a variation on Pawa.
Answer Frequency Percentage

Yes 47 94%
No 3 6%
Total 50 100%
Distribution of Participants who prefer a variation of
Pawa.
It shows that of the 50 participants, 47 or 94%
prefer a variation of Pawa and 3 or 6% does not want a
variation of Pawa.
Preferred Flavors of Pawa.
Preferred Flavors Frequency Percentage

Chocolate 34 68%
Ube 29 58%
Mango 12 24%
Other flavors 17 34%

Distribution of Preferred Flavors of Pawa.
It shows that of 47 participants who want a variation
of Pawa, 34 or 68% prefer Chocolate. The 29 or 58% of the
participants also prefer the Ube flavor. Mango flavor is
also preferred by participants, having a frequency of 12,
representing the 24% of participants. There are 17 or 34%
who prefer other flavors such as Cheese, Strawberry, Buko,
Pandan and Monggo.
Participants Satisfaction on the Product.
Satisfaction Level Frequency Percentage

Much 27 54%
Not Much 13 26%
Very Much 10 20%
Total 50 100%

Distribution of Participants Satisfaction on the Product.
very much satisfied with the product. The participants who
are much satisfied with the product, have a frequency of
27, representing the 54% of participants while 13 or 26%
are not much satisfied with the product.
Table 12. Frequency and Percentage Distribution about the
flavors complementing each other.
Answers Frequency Percentage

Yes 42 84%
No 8 16%
Total 50 100%
Distribution about the flavors complementing each other.

It shows that of the 50 participants, 42 or 84% agree
that the flavors are complementing each other while there
are 8 or 16% who disagree.
Table 13. Frequency and Percentage Distribution about the
recommendation of the product to the family and friends of
the participants.

Yes 44 88%
No 6 12%
Total 50 100%
Table 13 present the Frequency and Percentage Distribution
about the recommendation of the product to the family and
friends of the participants.
It shows that of the 50 participants, 44 or 88% said
that they will recommend the product to their family and
friends while 6 or 12% said that they will not do the
same.
Satisfaction in the price of the product.

Yes 42 84%
No 8 16%
Total 50 100%
Table 14 present the Frequency and Percentage
Distribution of Satisfaction in the price of the product.
satisfied with the price of the product while 8 or 16% are
not.
Table 15. Frequency and Percentage Distribution of Price
that participants are willing to pay.
Price Frequency Percentage

16-25 35 70%
Below 16 15 30%
Total 50 100%
Distribution of Price that participants are willing to
pay.

willing to pay 25-16 pesos for the product and 15 or 30%
are willing to pay below 16.
that Product would look cheap.

Below 16 46 92%
21-25 2 4%
16-20 2 4%
Total 50 100%
Distribution of Price that Product would look cheap.
that having a price of 21-25 would make it look cheap. The
same number of frequency with 4% representing the
participants said that 16-20 would make it look cheap. The
majority having a frequency of 46 or 92% of the
participants said that having a price of below 16 would
make it look cheap.

that Product would look expensive.

Above 25 40 80%
21-25 7 14%
16-20 3 6%
Total 50 100%
Distribution of Price that Product would look expensive.
that having a price of above 25 would make it look
expensive. It is followed by 7 or 14% of the participants
who said a price of 21-25 would make it look expensive
while there are 3 or 6% who said that 16-20 would already
make it look expensive.

Chapter IV
BUSINESS PLAN
A Business Plan is a written description of business
future. Business Plan entails business goals, reasons they
are attainable, and plans for reaching them
This chapter includes the Marketing Plan, Management
and Organizational Study and Production Plan.
Needs and Resource Analysis
People love to bring home delicacies whenever they are
going to places. And certainly, fiestas became the stage
to showcase culinary know-how, which is the reason behind
the pride of every town that exhibits over a dish that is
uniquely theirs. Since people like to eat a variety of
food, why not put a little twist on the flavor of their
favorite delicacy.
Piat, Cagayan offers their very own Pawa to people
for several years. It became prominent for its tasty
glutinous rice filled with peanut. In view of the fact

that people always tend to look for something new, a
variation in the flavor of Pawa may complement the
citizens savor. In this case, people can choose whatever
flavor they like or even buy a bulk in assorted. Besides,
variation in flavor of foods has already been a trend.
By evaluating the resources found in the community,
the researchers found out that the resources needed is
abundant and can be produced within the places involved.
Moreover, executing this business requires labor
force. Significantly, this needs an extra manpower which
eventually may give job to the residents of Piat allowing
them to have a source of income for their families.

Marketing Plan
The Marketing Plan consists of the Market Study and
the 4 Ps of Marketing; Product, Price, Place, Promotion.
The market consists of group of people with
individual differences in terms of their financial
stability, standards, aspirations and preferences. From
the stable resources found in the town of Piat, Cagayan,
the proponents came up with the idea of putting up a
business that sells innovative products like Flavored
Pawa.
Market Study
A. Target Market
Citizens and tourists of Piat will be the target
market of this business. As the business boom in the
market, it can attract more tourists not only from local
places but also from global places.
B. Market Area

The scope of the market would be at Poblicaion
01 and Poblacion 02, Brgy. Centro, Piat, Cagayan nearby
Basilica Minore of Our Lady of Piat where the market of
delicacies is very extensive and a lot of merchants sell
Pawa.
C. Marketing Strategies
Flavored Pawa will be sold per pack or as per
order basis and will be put in a container. The name and
contact number of the distributor will also be included
in the package for feedback purposes.
D. Mode of Distribution
The business mode of distribution will be per pack of
10 pieces. The production of Pawa will be done at Piat,
Cagayan. The finished products will be sold at the food
market that will buy Flavored Pawa. The distribution
center location is based on the minimizing the total
cost of distribution.
4 Ps of Marketing

The Flavored Pawa is appetizing and at the same time
a healthy delicacy that most tourists would like to take
home as pasalubong for their families and friends.
A. Product
Since Pawa is a special delicacy that many people
would like to bring home and became eminent for its
appealing taste, the researchers thought of something
that people would likely love to eat and that is
beneficial for their health as well.

The researchers have perceived the trend of
innovative products and blending it with new flavors.
So, they thought of natural flavors that would blend
with the original taste of Pawa. Chocolate, Ube and
Mango are just three of the several preferred flavors
that people would most likely want to consume. These
ingredients are good sources of Vitamin A, B, C, and E,
minerals particularly Iron, Potassium, Copper,
Antioxidant Protein and they may also serve as a
detoxing agent. Thus, combining these highly nutritious
foods into something that people would love to eat in a
customary basis would give the consumers not only a

satisfactory taste but also a healthy snack.

B. Price
Price is the value or compensation that is known to
consumers as a payment in exchange of goods. And it is
the greatest component of the revenue. The researchers
have estimated that Flavored Pawa will be sold for 3.00
per piece. It is computed as follows:

The set price is expected to earn profit that will
be used in the operation of the business and to bring in
Pandan Pawa
USED Cost of
AMOUNT (PhP)
(MEASURE) ingredients/unit
Glutinous
45 0.008 0.36
Rice
Peanut 300 0.0004 0.12
Meat 120 0.001 0.001
Pandan 40 0.001 0.02
Total cost/unit 0.62
Packaging 0.20
Direct labor 0.46
Overhead 0.17
Total Cost 1.45
Selling Price 3.00
Chocolate Pawa
USED Cost of
AMOUNT (PhP)
(MEASURE) ingredients/unit
Glutinous
45 0.008
Rice 0.36
Peanut 300 0.0004 0.12
Chocolate 50 0.005 0.05
Total cost/unit 0.53
Packaging 0.20
Direct labor 0.46
Overhead 0.17
1.53
Selling Price 3.00
expansion when the business grows productively. The

price is deliberately reasonable considering the
benefits of the product.

C. Place
The Flavored Pawa can be bought in the food market
nearby Basilica Minore of Our Lady of Piat because it is
the utmost tourist destination in the town. The
residents of Piat, Cagayan will acquire more knowledge
that will help them uplift the economic status of their
community. The researchers came up of this proposal to
inform the residents that implementing this business
will be a good source of income for them and at the same
time a good venture for promoting local delicacies and
attracting more tourists.
D. Promotion
In promoting and
recognition of the
product, it is important to know the product itself and
the target market. Social media marketing will be used

by the researchers to promote this study since numerous
people are always online and updated. In this case,
these netizens may like and share it to their friends
not only local but global. The researchers will also
provide flyers which will be given to the open market.

Management and Organizational Plan
Management and Organizational plan consist of Vision
and Mission statements, Form of the organization,
Organizational Structure and the Officers and key
Personnel.
Vision Statement
Our product would be known as the most preferred food
delicacy in our country and to the selected international
market of Flavored Pawa. This product will promote healthy
lifestyle at a very reasonable price.
Mission Statement
To maximize profit and to provide consumers with the
best tasting and nutritious food that would introduce a
new version of Pawa that will satisfy the needs of the
consumers.
Form of Organization
In this venture, the researchers will form a
partnership. Partnership is a popular form of business
because it allows individuals to contribute money, skills

and properties in a particular undertaking. It also
provides means of obtaining more capital and allows the
sharing of risks for rapidity growing business. The
profits from the business will be divided in accordance to
the percentage of the capital.
Organizational Structure
Manager
Worker 1 Cashier Wo

JOB JOB
JOB DESCIPTION SALARY
TITLE QUALIFICATION
General The manager He/she must Has a salary
Manager
will oversee have of P 5,000
the business knowledge per month

Is in charge
on managing
of the
a business
advertising He/she must
and promotion be a
of the college
products graduate
Will coach the
staff on what
to do
Will audit the
cashier
Is in charge
of purchasing
the materials
needed

Cashier The cashier is The cashier Has a salary
obliged to must have of P 4,000
conduct a at least per month
daily report been a
sales to the college
manager. graduate
Workers The workers The workers Has a salary
will be the must have of P 4,000
ones preparing at least per month
and cooking been a high
the product school
Will be the graduate

Must know
one conducting
how to
the daily
prepare the
inventory
product
count
Pre-operating Services

a. Conducting Business Plan
b. Searching suppliers
c. Filing Requirements in DTI and securing business
permit
d. Acquiring machines and equipment
e. Hiring
f. Orientation of employees/workers
g. Advertising and marketing the product
h. Starting the business
Gantt chart
Estimated
Weeks
Tasks Cost
1 2 3 4 5 6 7 8 9 10 11
Conducting
1,500.00
Business Plan
Searching
500.00
suppliers
Filing
Requirements in
4,000.00
DTI and securing
business permit
Acquiring
machines and 5,000.00
equipment
Hiring 4,000.00
Orientation of
1,200.00
employees/workers
Advertising and 1,200.00

marketing the
product
Starting the
5,000.00
business
TOTAL 22,400.00

Production Plan
Production plan focuses on the manufacture of the
product. It focuses on the product itself, the raw
materials both direct and indirect, the processes that the
product had undergone and its costs.
Firms need to have an aggregate planning or
production planning strategy to ensure that there is
sufficient capacity to meet the demand forecast and to
determine the best plan to meet this demand. This
production plan needs to be translated into master
production schedule so as to schedule the items for
completion promptly, according to promised delivery dates;
to avoid overloading or under loading the production
facility; and so that production capacity is efficiently
utilized and low production costs result.
Product Description
Pawa is a native delicacy found in Piat, Cagayan.
Flavored Pawa is an innovative version of the delicacy
featuring new flavors added to the glutinous rice and

replacing the filling with various flavors like chocolate,
pandan, etc. Because of the success of Pawa in Piat, we
decided to innovate and introduce Flavored Pawa to the
citizens in Piat, Cagayan. This product promotes
innovation and flavor creativeness.

Production Layout

Ingredients: Glutinous rice, Peanut, Cooking Oil, Water,
Salt, Brown Sugar, Meat, Pandan, Chocolate
Procedure
Peanut
1. Roast the peanuts in a cooking pot until it reaches a
brownish color.
2. Remove the skin of the peanuts
3. Grind
4. Place sugar and a tablespoon of salt
Pandan
1. Boil the Pandan leaves in water

2. Separate the boiled water from the leaves
Glutinous Rice
1. Pour water into the glutinous rice mixture

2. Knead the mixture into shape
3. Put one tablespoon of salt and some cooking oil
4. Knead until set
Mixing & Steaming (Pandan)
1. Mix the boiled Pandan water with the glutinous rice
mixture
2. Divide the mixture into tiny balls

3. Place the peanut mixture inside and seal it

4. Place it into a cut banana leaf
5. Steam for 7 minutes
Mixing & Steaming (Chocolate)
1. Mix the chocolate powder with the glutinous rice
mixture
2. Divide the mixture into tiny balls
3. Place the peanut mixture inside and seal it
4. Place it into a cut banana leaf
5. Steam for 7 minutes
Financial Plan
The Financial Plan will determine whether the
business proposal is feasible, visible and profitable.
Assumptions:
10% increase every year in advertising expense while

5% increase every year in packaging
5% increase every year in electric and water bill
5% increase in sales every year

Cost of ingredients/unit will increase 3% every year
Ending Inventory is 5% of the Total Goods Available

for Sale next year
Estimated withdrawals will be 40% of net income
Market share will increase 10% every year
Population will increase 5% every year
Rent expense will increase 10% every year
Salaries and wages will increase 10% annually
Tax expense will be 30% of net income before tax of

the current year
There are 240 working days a year
Tourists purchase on average 6 packs of flavored Pawa

per month
Tourists per year is 20% of the population
Computation of Market Share

Total Population
Market share (%) = No. of Competitors + 1
Total Population
2,775
= 8 + 1
2,775
= 11%

Computation of Capacity
Capacity
No. of
Stage
Workers
Day Week Month Year
1
(Grinding of 1 125 1,000 8,000 64,000
peanut)
2
(Molding the
1 125 1,000 8,000 64,000
glutinous
rice)
3
(Placing of 1 125 1,000 8,000 64,000
the fillings)
4
1 125 1,000 8,000 64,000
(Steaming)
5 400 3,200 25,600 204,800
2
(Packaging) units units units units
Computation of allocation of Sales
C = No. of participants who prefer chocolate
P = No. of participants who prefer Pandan
T = Total
AC = Allocated percentage for Chocolate
AP = Allocated percentage for Pandan

AC = C / T
AC = 37 /54
AC = 67%
AP = P / T
AP = 17 / 54
AP = 33%

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Paul University Philippines 1

THE PROBLEM & BACKGROUND OF THE STUDY

Philippine cuisine consists of the food, preparation

methods, and eating customs found in the Philippines. The

style of cooking and the food associated with it have

evolved over many centuries from their

Austronesian origins to a mixed cuisine

of Indian, Japanese, Malay, Chinese, Spanish,

and American, as well as other Asian Indian adapted to

indigenous ingredients and the local palate.

The proposed business plan is to introduce new

flavors to the delicacy named Pawa. As a common commodity

found mainly in Piat, Cagayan, Pawa is a delicacy that

most tourists purchase as pasalubong. Pawa became famous

for its appetizing steamed buns made of sticky or

glutinous rice filled with grounded peanuts. As it gains

popularity, more and more tourists and locals are

attracted by its unique blend of flavor. And considering

SPUP School of Business Accountancy and Hospitality Management

that consumers tend to look for something new, adding

variety of flavors into its original taste may satisfy

people's savor. This business plan plans to explore and

introduce new flavors of Pawa.

Review of Related Literature

To show relevant information about this business

plan, the following are related and relevant literatures

According to de Leon (2011), this paper

introduces rice to the reader and analyzes the changes it

has gone through the past 100 years in the hands of

varietal improvement science. Here, the richness of the

crop as a genetic material and resource is revealed. Over

time, its many types included landrace rice, pure line-

selection rice, cross-bred rice, semi dwarf rice,

hybrid rice, new-plant-type rice, and designer rice-

choices ranging from the traditional to the modern and the

futuristic. There is rice for lowland, upland, and cool-

elevated areas; for irrigated and rained areas; and for

SPUP School of Business Accountancy and Hospitality Management

saline-prone, drought-prone, and flood-prone areas-each

kind serving as a wonderful display of biodiversity.

cropping per year also exists. Of course, there must

be rice for daily consumption and rice for important

occasions. There is nonstick rice or

the glutinous opposite; well milled or brown rice;

red rice; aromatic rice; rice rich in micronutrients;

golden rice; the generic fancy or specialty rice; and

even rice with healing wonders or medicinal properties.

Through purposeful research and development, rice ably

provides for various needs. And although already very much

transformed, rice remains culture friendly, like the

science that does not tire to improve it. Viewed in this

sense, rice continues to be very precious and

According to Gray (2015), glutinous rice, also known

as sticky rice, sweet rice or pearl rice, is a form of

short-grain rice that has a higher starch content than its

medium- or long-grain cousins. Manufacturers remove the

SPUP School of Business Accountancy and Hospitality Management

husk, bran and germ of the rice grain to produce this

sticky white rice that is a staple food in many Asian

countries. Glutinous rice is relatively healthy, having an

extremely low fat content, but it doesn't offer the

nutritive value of brown or wild rice. Macronutrients, a