EXECUTIVE SUMMARY

A. Company Name, Address, Telephone Number

The retail business would be named “Coffee Meringue and Pasalubong”,

located at Rizal Avenue, Batangas City with contact number 0905-458-7885.

B. Name, Address, and contact number of key persons

Coffee Meringue and Pasalubong located at Rizal Avenue, Batangas City

will be managed by partners, namely: Ms. T and Ms. H. The contact person is

Ms. H with the contact number 0905-458-7885.

C. Brief Description of the Business

The retail business offers interesting flavors such as Kapeng Barako. It is

colorful and decorated with chocolate bits on top and sprinkles on sides. The

customers will enjoy the indulging experience of having a delicious food that is

affordable, flavorful, and enjoyable.

Once the customer tasted the coffee meringue, it is a 100% guaranteed

that they will be delighted by a gift of joy and pleasure offered by Coffee

Meringue and Pasalubong.

The retail business design and layout, the entertaining staff, and the coffee

meringue will hook all the customers visiting the location.

Coffee Meringue and Pasalubong is start up retail business located at

Rizal Avenue, Batangas City.

1
 Coffee Meringue and Pasalubong focus is on making each customer’s

purchase a wonderful experience of joy, fun, delights, flavors, and happiness.

D. Brief Overview of the market of existing business product

The retail business is thriving in many places in the country; market, malls,

streets, schools, and others. Coffee Meringue and Pasalubong is located in Rizal

Avenue, Batangas City, which is one of the streets at Batangas City. Batangas

City is the largest and capital of the province of Batangas, Philippines.

Coffee Meringue and Pasalubong provides coffee flavored meringue.

Coffee meringue is suited to person ages 5 years old and above. They serve as

the target market of the business.

The product is a light, airy, sweet cookie-sized confection. It is a normal

shape of meringue. It is colorful and decorated with chocolate bits on top and

sprinkles on sides. The product is offered with interesting flavors such as Kapeng

Barako, as the business specialty, mango, ube and chili. Coffee Meringue and

Pasalubong serves to be accessible for use by customer’s outlet. The business

uses the zero level channels as one of the types of distribution channel. Products

are directly sold to customers and no intermediaries are involved.

Coffee Meringue and Pasalubong is a manufacturing type of business.

The production cost is based on prices. These costs include the labor, materials

overhead expenses, and all other expenses associated with the production of

goods. Coffee Meringue and Pasalubong adopts the cost-plus pricing. It ensures

2
that all costs are covered before profits are calculated. It is simple and easily

controllable pricing strategy.

Since Coffee Meringue and Pasalubong is a new business the

involvement of internal and external environment is concerned. It will use

different forms to promote coffee meringue like flyers, tarpaulins, brochures and

website publishing.

E. Brief Overview of the strategic actions that the business will take to
achieve success.

Coffee Meringue and Pasalubong Strategy is a long term plan of action

designed to achieve a set of goals or objectives. And the goals of this retail

business are: a.) there will be a domestic market expansion in the next 2 years,

b.) multiply sales growth rate in the next 3 years and c.) accelerate customer

satisfaction in the next 2 years.

This goal will be realized through three strategic actions: (1) Offering

franchise/ additional advertisement (2) Offers different product variation and

accepts delivery and (3) Additional online advertisements and promos.

F. Brief Description of the managerial and technical expertise of key

personnel.

Coffee Meringue and Pasalubong is a partnership type of business owned

by a two different group of friends turned partners: Teletubbies, and Hotdogan.

The owners are hands-on in the business and to monitor the operation, they act

as the marketing staff and accounting staff. One service staff is enough to

3
operate the whole business; there will be at least one or two rest days within a

week job. The employees are also paid on holidays, and their six basic salary

benefits which includes the Social Security System (SSS), Contribution to

National Health Insurance Program (NHIP) or also known as PhilHealth, Home

and Development Mutual Fund (HDMF), the 13th month pay, Service Incentive

Leave, the and last is the meal and rest periods.

G. Brief statement of financial requirements, where the funds will be used,

sources of fund and when and how to pay any debt.

The business will be 100 % funded by the partners. The partners will

contribute equally to support the operation of the business. From that, they share

equally to the profit of the business. Source of fund would be drawn from the

partners’ personal savings.

Chapter I

4
 BACKGROUND OF THE BUSINESS AND INDUSTRY

1.1 Overview of the Industry and the Business

The food manufacturing industry which includes the food and beverage

processing remains the Philippines most dominant primary industry. In fact, it is

the second leading industry in the country. The said industry is composed of the

major sectors such as foods and vegetables, fish and marine products, meat and

poultry products, flour and bakery products, beverage and confectionary, dairy

products, food condiments and seasoning, food supplement, bottled water, snack

foods, and fats and oils.

Food processing contributes approximately 20% of the Gross Domestic

Product (GDP) per annum. Still it signifies that it is one of the leading industries

nowadays. (tradechkra.com, 2008)

Filipinos loves to eat, we are known as sweet lovers. We are fund of sweet

foods like candies, chocolates, drinks, snacks and a lot more. We even spend

too much money just to buy these foods like imported goods.

Batangas City is well known for different products like native delicacies,

balisong, Kapeng Barako and a lot more. Kapeng Barako is one of the most

interesting products. It is synonymous to Batangas. The strong taste and its

savor become its trademark.

Current Situation of Business

5
 Coffee Meringue and Pasalubong is a new guild retail business located at

Rizal Avenue, Batangas City. It will provide delicious dessert and homecoming

gift not only for Batangueños but for all Filipinos. It will sustain unconditional

because of its coffee flavor. It will give consumer a satisfying taste while

exercising a healthy lifestyle. The business is a partnership type of business and

is named “T and H Partnership “. The products are available for retail and take-

out basis which can be adored everyday by customers. It competes with

Colette’s Buko Pie and Pasalubong.

1.2 Vision and Mission Statement

Vision

To be recognized supreme in providing customers with the best quality

meringue and pasalubong products at a rational prices.

Mission

To provide customer satisfaction by innovating a good quality at a sensible

price and a high level of customer service. Aims to provide employment and

generate income for fellowmen.

1.3 Goals and Objectives

Coffee Meringue and Pasalubong centered in achieving business in line

with food manufacturing. Its goal lies on customer satisfaction. The business

provides new yet satisfying flavor of meringue that will deliver customers the best

savor in town.

6
Objectives

Short-term Objectives:

1. To recognize as one of the best Pasalubong retailers by the end of the

year.
2. To have a position in the market providing the best product for the first

12 months.
3. To regain the expenditures used by the end of the year.

Long-term Objectives:

1. To expand the business through different branches not only in the

vicinity of Batangas but also outside the city.

2. To be the leader of homecoming gifts and the industry reference for

financial performance, trusted by all customers in the next five years

3. To acquire competitive advantage leading to strongest competitors in

the next five years.

Chapter II

MARKET ANALYSIS

7
 Market analysis is the foundation of marketing plan. It is one of the most

important parts of any start-up strategy. Do it right, and one will have a clear idea

of the path down which are headed. A good market analysis will enable you to

lure investors, side deep pitfalls and most importantly attract customers. It

studies the attractiveness and the dynamics of a special market with in a special

industry. It is part of the industry analysis and thus in turn of the global

environmental analysis. Through all of these analysis the strengths, weaknesses,

opportunities and threats (SWOT) of a company can be identified. Finally, with

the help of SWOT analysis, adequate business strategies of a company will be

defined. The market analysis is known as a documental investigation of a market

that is used to inform a firm’s planning activities, particularly around decisions of

inventory, purchase, work force expansion or contradiction, facility expansion,

purchases of capital equipment, promotional activities and many other aspects of

a company.

2.1 Product Strategy

8
 The product is a light, airy, sweet cookie-sized confection. It is a normal

shape of meringue. It is colorful in color and decorated with chocolate bits on top

and sprinkles on sides. The product is offered with interesting flavors such as

Kapeng Barako as the business` specialty mango, ube and chilli.

The superior and pungent aroma of Kapeng Barako fascinates customer

to buy and taste the unique flavor of this meringue.

Nutritional Facts of Coffee Meringue

Amount Per Serving

Calories 71.7 per serving
Fat 0.014 g
Saturated Fat 0.0025 g
Polyunsaturated Fat 0.0067 g
Monounsaturated Fat 0.0043 g
Sodium 24.4 mg
Potassium 22.1 mg
Carbohydrate 16.3 g
Protein 1.6 g
Caffeine 0.17 g

9
 Logo

Packaging

The purpose of product packaging is to

protect the product from damage. Product

packaging not only protects the product

during transit from the manufacturer to the retailer, but it also prevents damage

while the product sits on retail shelves.

Packaging 1

10
 Packaging 2

2.2 Target Market

Target marketing tailors a marketing mix for one or more segments. It is

contrasts with mass marketing which offers a single product to the entire market.

Identify the target market is an essential step in development of marketing plan.

Coffee Meringue and Pasalubong provides coffee flavored meringue.

Coffee meringue is suited to person ages 5 years old and above. They serve as

the target market of the business. In order for this business to be successful, the

demonstration of customer analysis is the first step. Its customer segment and

11
how meringue satisfies their needs. Customer analysis covers the personalities,

economic status, gender and demographic location.

2.3 Placement Strategy

The goal of Coffee Meringue and Pasalubong is to deliver a good quality

of meringue to customers. Place is an important aspect of marketing. Coffee

Meringue and Pasalubong serves to be accessible for use by customer’s outlet.

The business uses the zero level channels as one of the types of distribution

channel. Products are directly sold to customers and no intermediaries are

involved.

The production of Coffee Meringue is located where the store is. The

accessibility of the product is considered.

2.4 Pricing Strategy

Developing a pricing strategy is one of the most difficult aspects of

operating a business because there are no hard and fast rules. The main goal is

be focus on generating profit without sacrificing the quality of the product.

Pricing is an important strategic issue because it is related to product

positioning. It also affects other marketing mix such the product features, channel

decisions and promotion.

12
 Coffee Meringue and Pasalubong is a manufacturing type of business.

The production cost is based on prices. These costs include the labor, materials

overhead expenses, and all other expenses associated with the production of

goods.

Coffee Meringue and Pasalubong adopts the cost-plus pricing. It ensures that all costs

are covered before profits are calculated. It is simple and easily controllable pricing strategy.

Amount per unit

Direct Materials P2.50
Factory Overhead 1.50
Labor Cost 2.00
Add: Mark-up(40% of cost) 2.4
Price per piece 8.4
Add: VAT(12% of selling price) 1.008
Suggested Retail Price P9.408 or 9.50
2.5 Promotional Strategy

Promotion is the method use to spread the word about products and

service to customers. Businesses nowadays use a mix of advertising, personal

selling, referrals, sales promotion and public relations to promote the products

and services.

To gain a sustainable competitive advantage, Coffee Meringue and

Pasalubong adopts different types of promotional strategies, competing in the

business industry is very tight and risky for new comer. Every promotional

strategy serves as the fundamental underpinning of marketing plans designed to

fill market needs and reach marketing.

13
 Since Coffee Meringue and Pasalubong is a new business the involvement of internal

and external environment is concerned. It will use different forms to promote coffee meringue

like flyers, tarpaulins, brochures and website publishing.

Time Frame Promotional Strategy Mechanics Budget

Introductory Stages (first six Brochures  To be distributed  P800 for printing

months of operation) to inform  P4,800 for six
customers of the months
benefits, promos
along malls in
Batangas City.
Web Publishing  Coffee Meringue  P4,000
and Pasalubong
together with its
promotional
strategy will have
an internet site
Free tasting  Free taste for the  P1,500
opening day

Total P10,300

Chapter III

TECHNICAL SPECIFICATION

3.1 Product Description

Coffee Meringue and Pasalubong aims to be the leading food retail

business in Batangas City. This new product will surely gain customer

satisfaction over the other.

Coffee Meringue and Pasalubong offers a well innovated product of

meringue. Kapeng Barako as its prime flavor will ensure the coffee taste on

meringue.

14
 To purchase be able to meet the customer’s satisfaction, it involves the

commitment to what the customers need and want, and to exceed customers

expectation is to be friendly every time they purchase the product.

3.2 Production Process

Procedures on how to make Coffee Meringue

1. Heat the oven to 200C. Spread the sugar over an oven tray lined with baking

parchment and cook until it has just begun to melt at the edges, but not

caramelize (about 8 minutes).

2. Meanwhile, crack the eggs, being careful not to drop any yolk into your whites.

If you lose any bits of shell, scoop them out with a clean spoon rather than your

fingers.

3. Wipe the inside of your mixing bowl and the whisk, with the cut side of the

lemon and add the eggs. As soon as you spot the sugar beginning to melt at the

15
edges, set the mixer to whisk at high speed while you take the sugar out of the

oven.

4. Add a desired amount of powdered Kapeng Barako.

5. The mixture should be just foamy by the time you add the sugar. Wearing oven

gloves pick up the baking parchment with oven gloves and tip the hot sugar

slowly into the still-whisking mixer. Continue whisking until the mixture has

cooled, and is glossy and will hold its shape. Turn the oven down to its lowest

setting.

6. If you want to fold through any spices or other flavorings, or roll the meringues

in nuts or another topping, this is your moment – but they'll be pretty good as

they are.

7. Line a baking tray with parchment, and spoon the meringue on in great

gorgeous blobs – remember they'll increase in size as they dry out. Put them into

the oven and bake until they are crisp on the outside, and sound hollow when

tapped on the bottom: depending on their size, this could take 1 1/2 hours, so

don't wait up.

8. Turn the oven off and leave them in there until it has cooled, then immediately

transfer to an air-tight container.

3.3 Factory Furniture, Fixtures and Equipment

3.3.1 Tools and Equipment

Quantity Tools and Equipment Amount Per Amount

16
 Unit
2 set Measuring scoop P179.50 P179.50
Specification:
 Brand Name: Smart Cook
 Made of stainless steel
 Comfortable design
 Size: ¼ tsp, ½ tsp, 1 tsp, 1tbsp
2 set Measuring cups P199.75 P399.50
Specification:
 Brand Name: Smart Cook
 With a comfortable handler
 Size: ¼ cup, 1/3 cup, ½ cup, 1
cup
5 piece Tray P59.75 P298.75
Specification:
 Brand Name: Baker’s Secret
 Dishwasher safe
 Premium non-stick
 Metal spatula safe
 Durable and Long lasting
 Size: 15 inch by 10 inch, 38cm
by 25cm
1 case Clear hinged container P150.00 P150.00
Specification:
 Made in plastic
 Hold 3 aluminum tart pan
 Approximately 5 inch by 5 inch
by 8.25
3 bond Parchment Paper P18.00 P54.00
Specification:
 Size: 8 ½ inch by 11 inch
Source: National Bookstore
Bay City Mall
Hand Gloves P119.00 P 238.00
2 boxes ( P119.00
Specifications: per box)

 Cheap Disposable PE Hand

Glove Cook
 Size: S/M/L/XL 7 Year
experiences in producing

 Weight per piece :

1.0g,1.1g,1.2g,1.3g,1.4g/pc

17
  Material
:Polyethylene/HDPE/LDPE
Small Freezer P14,358.00 P 14,358.00
1
Specifications:

 Brand: Sharp
 Capacity: 55L
 Unit size: 595x550x626mm(w.
d.h.)
 Carton size: 646x596x660mm(
w.d.h.)
 N.W./G.W.:38/42KGS

Electric Mixer P22,414 P 22,414.00

1
Specifications:

 Tilt back head allows easy

access to mixture
mixing hook, 1 flat beater
 200-watt stand mixer and 5-
quart-capacity bowl with
ergonomic handle
 Electric food mixer Machine
Size: 350*268*436 mm

TOTAL P 37,853.75
Source: Hypermarket, Batangas City

Office Supplies

Quantity Office Supplies Amount per Amount

unit

1 piece Record book P25.00 P25.00

Specification:
 Brand Name: Valiant
 300 pages
Source: National Bookstore,
Bay City Mall
1 ream Bond Paper P178.00 P178.00
Specification:

18
  PAPER
 multicopy, 80gsm., 216mm x
330mm (8-1/2" x 13")
 legal, for laser printer, high
quality speed copier,
Source : National Bookstore Bay City
Mall
3 pieces Ballpen P15.00 P15.00
Specifications :
 Original uni-ball
 Boxy roller ball pen
 Uni-flow system 0.5mm line
pigment ink waterproof stainless
steel tip made in japan
Source : National Bookstore Bay City
Mall
2 pieces Short Folder P10.00 P10.00

Specifications :
 Best Buy
 Available colors: Blue / Green /
Red / Purple / Yellow
Source : National Bookstore Bay City
Mall
1 ream Receipts P150.00 P150.00
1 piece Cash box P500.00 P500.00
Specifications:
 Portable Mini Cash Box
 Material:0.8mm bonderizing steel
plate body + internal plastic box
 Packing: thermal shrink
 Finished with epoxy powder
coating
Source : National Bookstore, SM
Batangas
1 set Cleaning Materials P200.00 P200.00
1 piece Stand Fan P1,198.75 P1,198.75
Specification:
 Brand Name: Union
 16” precision angle blades
 3 peed control
 Auto-timer function
 Gross weight: 4.4 kg
 Net weight: 3.5 kg
2 pieces Chair P359.75 P719.50
Specification:

19
  Brand Name: Uratex
 100% virgin plastic resin
 Load: 200 kg
1 piece Round table P1,489.75 P1,489.75
Specification:
 Brand Name: Uratex
 100% virgin plastic resin

1 piece Calculator P224. 75 P224. 75

Specification:
 Brand Name: Target Stationary
 12 digit
 Big dispel
 Electronic calculator
1 piece Stapler P194.75 P194.75
Specification:
 Brand Name: Trio
 Hand held Stapler
1 pack Staple wire P17.75 P17.75
Specification:
 Brand Name: KW- Trio
 1000pcs per box
1 pack Clips P29.75 P29.75
Specification:
 Brand Name: Tiger
 Vinyl coated
 Multi-color clips
 Approximately 50 grams
TOTAL P4,953.00

Maintenance Supplies

Quantity Item Amount per unit Amount

2 pieces Trash bin P159.75 P319.50
Specification:
 Brand Name:
Slim
 Capacity: 17
liters
 Space
efficient
 Perfect for
compact
 Hands free

20
 opening
 Automatic
closing lid
2 sets Cleaning Materials 1,000.00 2,000.00
(dish washing soap,
floor cleaner )

TOTAL P2,319.50
Source: Hypermarket

3.4 Sources of Raw Materials

Suppliers

1. SM Batangas City, Pallocan West, Batangas

2. Bay City Mall, D. Silang Poblacion, Batangas
3. SM Hypermarket, Balagtas, Batangas City
4. San Jose Public Market, Taysan San Jose, Batangas
5. Calypso, D. Silang Poblacion, Batangas
3.5 Utilities Expense

Utilities Estimated Cost per month

Electricity P3,000.00
Water P400.00
Telecommunication P1,000.00

3.5 Waste Management

All wastes created in the operation of the business will be properly disposed

in Batangas where the business is to be located. Management of solid wastes

has been a long responsibility of the Local Government Units in Batangas City. In

order to manage wastes, they develop a framework by which waste management

and disposal can be carried out; a waste management plan was created. The

plan provides a cross-sector and cross-media approach to waste management,

21
utilizing the combined resources and capabilities of the public and private

sectors. Coffee Meringue and Pasalubong will follow to this plan.

From the store, segregation begins through separate trash bins for

biodegradable or organic waste and non-biodegradable waste. These wastes are

bagged, collected and transported in sanitary closed vans to the Materials

Recovery Facility where secondary segregation takes place. These sanitary

closed vans collected wastes every day at 7 o’clock in the evening.

All other wastes created in the production will be properly disposed in full

support and compliance to the ordinance of Batangas City

Chapter IV

COMPETITORS AND STRATEGIC ANALYSIS

Existing Competitors

Competitor analysis drives an organization’s strategy and effects on how

firms act or react in their sectors. It is vital and at the same time a critical part of

strategic planning. Determining the organization’s potential competitors helps

22
organization to ascertain its weakness, finds out upcoming opportunities and

threats to the organization from its environment. Every organization performs a

competitor analysis to measure its standing among strong competitors.

Competitors must be analyzed along different dimensions such as their

size, growth and profitability, reputation, objectives, culture, cost structure,

strength and weaknesses, strategies and exit barriers. These analyzed

dimensions lead to an organization in understanding with which competitors to

compete. Their strategies and planned actions and how organization can affect

competitor’s behavior in their own advantage. Moreover competitor analysis

should be focus on and revolve around where competitors are most vulnerable.

Coffee Meringue and Pasalubong as new entrants in the industry offers

quality products at a rational price. It offers exclusive products that will be its

edge in competing in its strongest competitors.

Coffee Meringue and Pasalubong will compete to other businesses that

offer home gift like Colette’s Buko Pie and Pasalubong, UtikUtik, and stores

located in the Batangas City Public Market. As direct competitors of Coffee

Meringue and Pasalubong, it is very much different form each other. Coffee

Meringue and Pasalubong offers not just a Pasalubong but of an extraordinary

meringue which is new in the trend. Businesses that produce meringue offer a

low quality of meringue because they use food color to flavor their product.

Kapeng Barako as the main flavor of the meringue makes the product unique

from its competitors.

23
4.1 Market Position and Image

Market position is the competitive standing of a company in a defined

market. It is the ranking of brand in terms of its sales volume relative to the sales

volume of its competitor in the same market or industry.

Coffee Meringue and Pasalubong will be positioned as the paramount

product that offers Pasalubong. It provides different kind of meringue that will

surely satisfy the consumers taste and preference. The business aims to furnish

the best quality of products and provide well-dedicated services while earning

profits. It will be known to be a type of business that serves an extra ordinary

flavor of meringue as its main product. Coffee Meringue and Pasalubong

observes a healthy living business. It will ensure that the product being served is

nutritious and endure proper waste disposal. As a result of these practices,

consumers will definitely patronize Coffee Meringue and Pasalubong.

Tagline: “Taste as Good as it Smells.

4.2 SWOT Analysis

SWOT analysis is a basic straight forward model in environmental

scanning which helps every company to provide information that is helpful in

matching the company’s resources and capabilities to the competitive

environment in which it operates. It also serves as an instrument in the strategy

formulation and selection.

24
A. Strengths
The firm’s strengths are its resources and capabilities that can be

used as bases for developing a competitive advantage. Coffee Meringue

and Pasalubong offers an extraordinary flavor of meringue which is the

“Kapeng Barako”, to which Batangas is well known of. The business offers

product at affordable price without sacrificing its quality.The 4 important Ps

of marketing is effectively applied. The packaging, promotion, price and

the product are well implemented.The business patronizes the main and

well-known resource of Batangas which is the Kapeng Barako as the main

flavor of meringue.
The Coffee Meringue and Pasalubong practice a friendly and

hospitable business. It hires well dedicated employee yet friendly and civil.

The business builds a good reputation among its valued customers.

B. Weaknesses
Coffee Meringue and Pasalubong is a start-up business. Since the

business and the owners are new in the set-up, at years of operation,

expect a high rate of costs and low rate of generated income. Absence of

access to key distribution is and addition to the problem.

C. Opportunities
External environment may reveal certain opportunities for the profit and

growth of the business. The production is at ease because of the arrival

of the new technologies. The expansion of the firm may be expected. The

increasing population of Batangas is also an opportunity of the business

to boosts its sale every day.

D. Threats

25
 Completion among business industries nowadays is very tight.

Different business offers high end products. As a new entrant, it is very

difficult to position Coffee Meringue at top considering that the business is

exercising a healthy competition. There is an increasing trade barrier

every now and then.Local bakers are considered a threat for the

business. These bakers offer different products to attract more

customers.

4.3 Business Strategy

Business Strategy is a long term plan of action designed to achieve a set

of goals or objectives.

1. Expansion – Coffee Meringue and Pasalubong desires to expand its

business not just locally but nationally. The business also wants to help

other people who are interested to build or to franchise the same

business we offer.
2. Differentiation – Coffee Meringue and Pasalubong wants to compete in

bigger arena. The business itself wants to build a strong competitive

advantage in the coming years. Through brand positioning and

packaging, relationship and connections to potential customers,

different features, are the business way on how to rise among rivals.

4.4 Strategic Action Plan

An action plan integrates all of the strategies that had been developed

throughout the business plan into a highly organized and prioritized plan of action

26
designed to achieve the stated missions and visions. Strategy is action plan

aligns perspectives of an organization, its customers and competitors. It creates

focuses and clarity.

Strategic planning is important to an organization because it provides a

sense of direction and outlines measurable goals. It is a tool that is useful for a

day - to - day decisions and for evaluating progress of a business.

Goal Relation to VMGO Strategy Success indicator Timeline

1. Domestic Expansion of Offering franchise/ Branch/Franchise in Q1 2015
market business through additional Metro Manila
expansion in different branch not advertisement.
the next 2 only in the vicinity of
years. Batangas but also
outside the city.
2. Multiply sales Regain the Offers different Sales growth rate Q3 2015 –
growth rate in expenditures used to product variation accelerate by 20% Q4 2016
the next 3 increase sales and accepts
years. growth rate. delivery
3. Accelerate Provides customer Addition online Increase rates Q3 2017
customer satisfaction by advertisements and customer by 50%
satisfaction in innovating a variety promos.
the next 2 of good quality of
years. meringue.

27
 Chapter V

ORGANIZATIONAL AND MANAGERIAL SPECIFICATION

5.1 Forms of Business Ownership

The financial resources of Coffee Meringue and Pasalubong are equally

contributed by the owners who act as the managers. The business is owned by

Ms. T and Ms. H.

Since Ms. T and Ms. H act as the owner and the manager of business, the

best form of business organization is partnership. In this form of business

organization, the owners share resources equally. Profit and losses are shared in

accordance with the term of partnership agreement. This form of business

28
organization fits to the business since both partners have no experience in

business yet.

5.2 Organizational Structure

Organizational structure is typically hierarchical arrangement of lines of

authority, communications, rights and duties of an organization. It determines

how roles, power and responsibilities are assigned, controlled and coordinated,

and how information flows between the different levels of management.

Organizations are set up in specific ways to accomplish different goals,

and the structure can help or hinder its progress toward achieving goals.

Coffee Meringue and Pasalubong management follows a flat

organizational structure. This structure brings the top management in direct

contact with the front line sales people, shop floor employees and customers.

The figure shows Coffee Meringue and Pasalubong flat organizational chart:

T&H
Partnership/Owners

Marketing Staff Accounting Production Staff Service Staff

Staff/Cashier (Contractual) (Contractual)

29
5.3 Manpower Requirements

A. Marketing Staff

Job Description

 Preparing, planning and project managing the publication of all publicity

material to maximize brand promotion.

 Creating marketing campaigns and working with the company’s external

agency to see them executed.

 Create and develop new innovative ways to communicate the message to

customers
 Contribute to annual sales and marketing plan.
 Evaluate the effectiveness of all marketing activities.
 Develop and implement an internal marketing programme.

Job Qualification

 Male or Female
 At least 25 year of age
 Business related graduate
 With good moral character and communication skills
 Good teamwork skills
 With experience and advertising and with commercial awareness

B. Accounting Staff/Cashier

Job Description

 Records daily operating transaction in the book of accounts.

 Provide information to the external accountant who creates the company’s

financial statement.
 Calculate and issue financial analysis of the financial statement.
 Comply with local, state and government reporting requirements.
 Responsible for all financial collections.

30
Job Qualification

 Male or Female
 At least 25 years of age
 NC3 passer in Bookkeeping
 With enough experience at least 2 years

C. Production Staff

Job Description

 Prepare processed food in accordance to recipes.

 Perform preventive and general maintenance on food production

equipment.
 Monitor quality and quantity of food items.
 Count and record processed items.

Job Qualification

 Male or Female
 At least 25 years of age
 Graduate HRM or any vocational cooking course
 With at least 2 years experience in baking

D. Service Staff

Job Description

 Operates various types of work.

 Responsible for proper waste disposal.
 Prepares and serves customers effectively.
 Maintain healthy and friendly work area.

Job Qualification

31
  Male or Female
 At least 20 years of age
 With good moral character
 At least high school graduate

Initial Staffing with Monthly Salary

Position Employment Status Amount

Marketing Staff Owner P13,950.00
Accounting Staff/Cashier Owner P13,950.00
Production Staff Contractual P8,450.00
Service Staff Contractual P8,450.00

The salary above is based on the agreement of the employer and

employee. The owners are hands-on in the business and to monitor the

operation, they act as the marketing staff and accounting staff. One service staff

is enough to operate the whole business.

According to the Department of Labor and Employment (DOLE), there will

be at least one or two rest days within a week job. The employees are also paid

on holidays, and their six basic salary benefits which includes the Social Security

System (SSS), Contribution to National Health Insurance Program (NHIP) or also

known as PhilHealth, Home and Development Mutual Fund (HDMF), the 13th

month pay, Service Incentive Leave, the and last is the meal and rest periods.

Compensation and Benefits

Marketing and Accounting Staff

Compensation/ Benefits Employer Employee

32
 share share
Compensation P13,950.00
Benefits
SSS P1,041.30 508.70
PhilHealth P162.50 P162.50
Pagibig P100.00 P100.00
13th month pay P13,950.00
Service incentive leave ( upon one
year of employment )

Production and Service Staff

Employer Employee
Compensation/ Benefits
share share
Compensation P8,450.00
Benefits
SSS 636.20 308.80
PhilHealth P100.00 P100.00
Pagibig P100.00 P100.00
13th month pay P8,450.00
Service incentive leave ( upon one
P8,450.00
year of employment )

5.4 Legal Requirements

Time to Associated
No. Procedure
complete costs
Registration of Business Name to
1 1 day P5,000.00
SEC
2 Obtain Barangay Clearance 1 day P800.00
Obtain Application Form for the
3 1 day -
Business
Obtain indorsement from the City
4 1 day -
Treasurer
5 Fire Safety Protection 1 day -
6 City ENRO 1 day -
7 Sanitary permit 1 day -

33
 8 Business permit to operate 1 day P9,041.00
9 Buy Special Books of accounts 1 day P400.00
10 Apply for COR and TIN at BIR 7 days P115.00
Payment of Documentary Stamp
11 1 day P5,000.00
and Reg. Fee
Obtain authority to print receipts
12 1 day -
and invoices from BIR
Print receipts and invoices to
13 7 days P3,000.00
authorized printers
Stamping of books of accounts at
14 1 day -
BIR
Register with SSS, Philhealth, and
15 1 day -
Pagibig

TOTAL COST P23,356.00

Procedures:

Verify and reserve the company name with the Securities and Exchange

Commission (SEC) .The name search can be done electronically via the SEC's

online verification system, but applicants must pay for the reservation fee on site

at the SEC. Articles of partnership must be submitted to SEC.

The company can register online through SEC i-Register, but

entrepreneurs must pay at the SEC. The following documents are required for

SEC registration:

 Name Verification Slip;

 Articles of Partnership(AP); and
 Joint affidavit of two partners to change partnership name. (not required if

already stated in AP)

The pre-registered Taxpayer Identification Number (TIN) is automatically

obtained from the SEC Head Office upon registration. However, the company

34
must still register with the Bureau of Internal Revenue (BIR) in order to identify

applicable tax types, pay an annual registration fee, obtain and stamp sales

invoices, receipts and the books of accounts.

To get the barangay clearance, the following documentary requirements

should be submitted to the Barangay: Application form, SEC Certificate of

Partnership and approved articles of partnership, location plan/site map and the

contract of lease over the corporation's office. This clearance is obtained from

the Barangay where the business is located. Barangay fees vary in each

Barangay since they have the discretion to impose their own fees and charges as

long as these fees are reasonable and within the limits set by the Local

Government Code and city ordinances. The barangay clearance is a

prerequisite for the issuance of business permit to operate.

Special books of accounts are required for registering with the BIR. The

books of accounts are sold at bookstores nationwide. One set of journals

consisting of four books (cash receipts account, disbursements account, ledger,

general journal)

The requirements for application for COR with the BIR are:

a. Duly accomplished and filled-out BIR Form No. 1903 (Application for

Registration for Corporations/ Partnership);

b. Payment Form (BIR Form No. 0605);
c. SEC Certification of Partnership;
d. Articles of Partnership;
e. Documentary Stamp Tax Return (BIR Form No. 2000) on the original

issuance of shares and Payment Form (for the DST payment)

35
 The authority to print receipts and invoices must be secured before

printing the sales receipts and invoices. The BIR issued Revenue Regulations

No. 18-2012 and it became effective on January 18, 2013. It adopted the online

system for authority to print official receipts, sales invoices and other commercial

invoices. In this regard, all unused or unissued receipts and invoices which were

printed prior to January 18, 2013 will be deemed valid only until June 30, 2013.

To obtain the authority to print receipts and invoices from the BIR, the

company must submit the following documents to the Revenue District Office

(RDO):

a. Duly completed application for authority to print receipts and invoices (BIR

Form No. 1906);

b. Job order;
c. Final and clear sample of receipts and invoices (machine-printed);
d. Application for registration (BIR Form No. 1903); and
e. Proof of payment of annual registration fee (BIR Form No. 0605).

Have the books of accounts stamped by the BIR.

After the printing of receipts and invoices, the printer issues a Printer’s

Certificate of Delivery of Receipts and Invoices (PCD) to the company, which

must submit this to the appropriate BIR RDO (i.e., the RDO which has jurisdiction

over the company’s principal place of business) for registration and stamping

within thirty (30) days from issuance. The company must also submit the

following documents:

a. All required books of accounts;

b. VAT registration certificate;
c. SEC registration;

36
 d. BIR Form W-5;
e. Certified photocopy of the ATP; and
f. Notarized taxpayer-user’s sworn statement enumerating the

responsibilities and commitments of the taxpayer-user.

The company must also submit a copy of the PCD to the BIR RDO having

jurisdiction over the printer’s principal place of business.

Register with the Social Security System (SSS)

Agency: Social Security System

To register with the SSS, the company must submit the following documents:

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 partnership, by-laws and SEC registration.

Upon submission of the required documents, the SSS employer and

employee numbers will be released. The employees may attend an SSS training

seminar after registration. SSS prefers that all members go through such training

so that each member is aware of their rights and obligations.

To register with PhilHealth, the company must submit the following documents:

a. Employer data record (Form ER1);

b. Report of employee-members (Form ER2);
c. SEC registration;
d. BIR registration; and
e. Copy of business permit.

37
 Upon submission of the required documents, the company shall get the

receiving copy of all the forms as proof of membership until PhilHealth releases

the employer and employee numbers within three months.

To register with the HDMF, the corporation must submit the following documents:

a. Employer's Data Form (EDF [FPF040]);

b. Specimen Signature Form (SSF[FPF170]);
c. Copy of SEC Certificate of Partnership;
d. Copy of Approved Articles of Partnership and By-laws.

Upon submission of the complete documents and payment of the first

contribution to the fund, the Pag-IBIG will issue the HDMF number and the

HDMF Certificate of Registration.

38
 Chapter VI

FINANCIAL PLAN

6.1 Capital Requirements and its Sources

The following list outlines the 2 month start-up cost of operation of Coffee

Meringue and Pasalubong. The partners will contribute equally from their

personal savings to finance the establishment and operation of the business.

Fixed Investment
Tools and Equipment P 37,853.75
Food Space Cost 50,000.00

Direct Materials 120,000.00

Indirect Materials 5,000.00

Operating and General & Administrative Expenses

Rental 45,000.00
Utilities Expense 6,000.00
Communication 2,000.00
Promotional Tools 10,300.00
Travel and Transportation 3,000.00
Salaries and Wages 89,600.00
Meal Allowance 9,600.00
Miscellaneous Expense 20,000.00
Employee Benefits 17,120.00
Taxes, Licenses and other Fees 23,356.00
Office Supplies 4,953.00
Maintenance Supplies 2,319.50

TOTAL PROJECT COST P408,248.50

39
 PROJECTED INCOME STATEMENT

Sales 3,420,000.00
Cost of Sales 2,500,000.00

Gross Profit 920,000.00

Less: Operating and Administrative Expenses

Rental 45,000.00
Utilities Expense 6,000.00
Communication 2,000.00
Promotional Tools 10,300.00
Travel and Transportation 3,000.00
Salaries and Wages 537,600.00
Employee Benefits 96,160.00
Taxes, Licenses and other Fees 23,356.00
Office Supplies 4,953.00
Maintenance Supplies 2,319.50
Depreciation Expense 12,616.57

Total Operating and Administrative Expenses 743,305.00

Net Income before Tax 176,695.00
Less: Income Tax (30%) 53,008.48

NET INCOME 123,686.45

40
 PROJECTED BALANCE SHEET

Assets

Cash 548,449.27
Inventory 50,000
Tools and Equipment 37,853.75
Accumulated Depreciation -12,616.57
TOTAL ASSETS 623,686.45

LIABILITIES AND OWNER'S EQUITY

Owner's Capital 623,686.45

TOTAL LIABILITIES AND OWNER'S EQUITY 623,686.45

STATEMENT OF PARTNERS CAPITAL

Beginning balance 500,000.00

41
 Add: Net Income 123,686.45

ENDING BALANCE 623,686.45

PROFIT AND LOSS DISTRIBUTION

Ratio Distribution
Profit and Loss (per income statement) 123,686.45

Distribution:

Ms. T 50% 61,843.22

Ms. H 50% 61,843.23

TOTAL 100% 123686.45

STATEMENT OF CASH FLOW

Cash Provided by Operating Activities

Sales (assuming all sales are in cash) 3,420,000.00
Purchases -2,676,788.50
Operating Expenses (net of depreciation) -603,900

42
 Income Tax Paid -53,008.48

Net cash Provided by Operating Activities 86,303.021

Purchase of Equipment -37,853.75

Net cash provided by Investing Activities -37,853.75

Cash Provided by Financing Activities

Investments 500,000.00

Net Cash Provided by Financing Activities 500,000.00

ENDING BALANCE 548,449.27

Sources of Funds

Financial resources of the business will be funded by the contribution of

each partner. Shares will be contributed equally to start-up the operation of the

business. Sources of funds would be drawn from the partners’ personal savings.

Financial Assumptions

The following are the financial assumptions of the business.

1. The initial marketing expenses are too high because the company wants

to be known in the market.

2. The company is expected to incur an increase rate of operating expenses

such as gas and electricity each year.

3. The company is expected to regain all its purchased expenditures by the

end of 2 years.
4. The business is expected to boost its sales rate at 20%.

43
 5. All mandatory benefits of both employee and employers are provided

based on the implementing tables of premiums of SSS, Pag-ibig and

PhilHealth contributions.
6. The company assumes that all sales are in cash and there are no

receivables on account.
7. The partnership assumes that the business starts its operation once all

requirements are complete and the business is ready to shoulder all the

duties and responsibilities of having a business.

6.2 Payment of Debt

The business is funded by the partners. No loans were made during the

start-up of the business.

44
 CHAPTER VII

SOCIO – ECONOMIC IMPACT

Coffee Meringue and Pasalubong contributes to socio-economic aspect of

an economy. The business aims to: a. creates employment that will be benefited

both of the business and the community; b. to improve the utilization and

mobilization of economic resources; c. to contribute in increasing the economy’s

outflow; and d. to ensure healthy living environment.

7.1 Creation of Employment or Reduction of Unemployment

One of a great contributions of putting up a new business is it creates

employment and lessen the number of unemployment. Unemployment is one of

the macro-economic problems which every responsible government is expected

to monitor and regulate. When an individual is employed, he has the capability to

buy things which are necessary for his survival such as food, shelter and

clothing.
7.2 Utilization and Mobilization of Economic Resources

45
 The business helps to a great extent in the utilization and mobilization of

resources. It uses raw materials which are available in Batangas City. Our

economy will develop faster if every resource is utilized properly. It contributes for

a greater national productivity. Since business is using local raw materials, the

cost will be relatively lower compare to import and exported one.

7.3 Increase Economy Outflow

Business is the greatest contributor in the Philippine economy. They help

our economy to uplift from poverty. With the revenues, the government collects

from taxes, duties and licenses paid by business people. The government

allocates them for the growth and development of our economy. These services

and projects come in the form of infrastructure facilities, educational and medical

facilities and services, and maintenance of peace and order.

7.4 Ensure Healthy Living Environment

Coffee Meringue and Pasalubong provides quality products and services

while ensuring a healthy living environment. In every operation of the business,

all the waste that will be generated will properly disposed in accordance with the

Batangas Waste Management Ordinance. Implementation of solid waste

reduction into everyday business operations makes business its competitive

edge.

46
BIBLIOGRAPHY

http://www.tradechakra.com/economy/philippines/food-processing-industry-in-

philippines-255.php

http://manilareviews.com//2010/07/food-service-industry-philippines.html

http://en.m.wikipedia.org/wiki/Market_analysis

http://www.netmba.com/marketing/market/target/

http://www.netmba.com/marketing/pricing

http://managementstudyguide.com/competitor-analysis.htm

http://www.quickmba.com/strategy/swot/

http://www.businessdictionary.com/definition/organizational-structure.html

47
http://www.smallbusiness.wa.gov.au/business-in-wa/about-sbdcl/corporate-

publications/business-guides/marketing-promotion-strategy/

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