EXECUTIVE SUMMARY

For guiding the proponents, readers, and investors, the business has presented this

executive summary as a synopsis of over-all feasibility of the company’s proposed project.

This chapter summarizes the highlights of the Company profile, Nature of

Product/ Service Being Offered, Size and Growth Trend of the Market, Make-up and

Background of the Management Team, Financing Requirements and Sources, Proposed

Used of Funds, Key Projections, Proposed Exit Strategy and the Summary of the

Feasibility.

The Company name will be “Felicitas Felicities”. It will offer different kinds of

teas, shakes and drinks that are made of organic products. The business company will be

located at Barangay Quirino, Maharlika Hi-way, Solano, Nueva Vizcaya.

The product and services being offered by “Felicitas Felicities” is composed of

types of beverages which are Shake, and Juice. It differs to the usual offer by other

competitors because of unique main ingredient which are fresh from the farm.

The proponents decided to organize “Felicitas Felicities” as a partnership. Each

partner will contribute an amount of Php 300, 000.00 for the funding of the business in

rentals, buying the furniture and machineries and so on.

The proponents chose persons who are from twelve (12) to fifty (50) years old,

mostly the students from Aldersgate College, Solano High School, and Saint Louis School,

employees in different establishments and individuals inside Solano as a target market. The

location of the proposed business is in Barangay Quirino, Maharlika Hi-way, Solano Nueva

Vizcaya beside of BPI and PS Bank. It is chosen because the place is easy to locate and it

more accessible and convenient for the manufacturing of the products.

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 “Felicitas Felicities” strongly believes in the Christian values so it is important for

the business to be reasonable in doing business at all times. It believes that the success of

the business depends on how passionate and honest the manager and employees are. The

partners will ensure that the company will strictly follow business rules and regulations. In

the management aspect, the proponents conclude that the proposed Personnel in their

function and responsibilities are applicable to the business operation. The management

structure is composed of partnership that will lead to the efficient operations of the

business. The scale of salary of the personnel and staff is compatible with the industry

standard.

The business will give the following benefits: PhilHealth, Social Security System

(SSS), Pag-ibig, and 13TH Month Pay.

The overall financial conclusion is profitable because annually its sales and spread

are increasing. The financial statements of the proposed business have appositive outcome.

With all the desires to fulfil this study, the proponents whole heartedly believe in the

implementation of this project. There is a bigger chance that this project can be

implemented because it will produce a nutritious beverages made from the natural fruits

and herbs, to help people to cure diseases, to contribute to economic progress, to become

a source of income, and to establish a good and reputable name in the sales industry.

If the proposed business will not prosper, the proponents will sell the property to

interested buyers, or will merge to similar beverages business.

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 CHAPTER I

INTRODUCTION

Drinks are one of the primary requirements in the world. It is usually of plant in

origin which is consist and contains vital nutrients ingested and assimilated by an organism

to produce energy, stimulate growth, and maintain life such as carbohydrates, fats, proteins,

vitamins, or minerals.

Historically, the original drink was water of Adam's ale. However drinks are

secured through agriculture like farming. By that time, drinks are not yet a trend in the

world’s industries. In the late 19th century there were great developments in public health.

Towns created piped water supplies and for the first time it was safe to drink water. The

industrial revolution meant the mass production of drinks. For centuries ordinary people

brewed their own beer and made their own soft drinks like lemonade and cordials. In the

19th and 20th centuries they all became mass produced.

Nowadays, drinks industries or manufacturers supplies the world populations

consumed for food energy. The industry is supported by intensive farming and industrial

agriculture to continually supply the global demand for drinks.

The emergence of drinks production industry has been a large break for companies

and entrepreneurs to grab the opportunity of its global need. Such businesses like beverages

manufacturing and drinks production and processing has opened the eyes of everyone to

begin their journey in producing the best drinks in the world.

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 PROFILE OF THE PROPOSED COMPANY

Company Name

The Company name will be “Felicitas Felicities”. The Company decided to choose

this name because it entitles “Felicitas” adopted from the name of Felicitas Lucero-Ila,

mother of Danfel Mae L. Ila. “Felicities” means a great instance of happiness.

Product Name

The proponents chose the product name SIP OF FELICITIES for the following

Reasons: (1) the Company offers a different kind of shakes and drinks. (2) Drinks are the

primary needs of everyone.

Location of the Head Office

The company’s head office will be located at Barangay Quirino, Maharlika Hiway,

Solano, Nueva Vizcaya, the proponents prefer this site on location because of its

accessibility, opportunity-oriented, near to the target market and one of the most populated

Municipalities in Nueva Vizcaya and it has been considered as the primary target market.

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Company Logo

The Company’s logo symbolizes the excitement of drinking. The logo starts with

the picture of the shake itself. Second is the name of the Company that is embodied inside

and below the logo of the emoticon smiley. The background ‘blue-green’ represents good

communication and self-expression, it stimulates ability to communicate one's deepest

truths simply says we wanted to show how we wanted to be connected to our customers.

The cookie which is ‘brown’ color symbolizes the Solano as a rural place, ‘red’ for power,

energy, passion and desire to dominate the business industry, ‘yellow’ because it is a happy

color that will describe the place, people and the product of the Felicitas Felicities and

‘white’ that symbolizes the innocence of the partners in the business.

Company Tagline

“Forget Loneliness, take a sip of HAPPINESS. Adventurous place of FELICITAS! “

The tag line indicates the main goal of the business which is nutritious drink with

fun.

The business itself is aiming not just to conduct business but to satisfy every customer

which you can drink for fun. It is a little place that will fit the taste of every customer to

satisfy them.
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Nature of the Product/Service Offered

The product and services being offered by “Felicitas Felicities” is composed of

types of beverages which are Shake and Juice. It differs to the usual offer by other

competitors because of unique main ingredient which are fresh from the farm.

Size and Growth Trend of the Market

Solano is the main commercial center of Nueva Vizcaya. It has the most number of

businesses in the province. It is also the financial heart of northern Vizcaya, with many

major banks such as Landbank, Metrobank, Bank of the Philippine Islands, Philippine

National Bank, Banco de Oro, Rizal Commercial Banking Corporation, as well as rural

and regional banks maintaining their presence in the area.

In order to open a business shake, the owners should know the consumer

characteristics of the area. According to the 2010 census, it has a population of 56,134

people. More 60% of the people are Ilokanos, while Ifugao, Ibalois, Gaddangs, Isinais,

Ikalahans, and Ilongots comprise the greater part of the remaining population.

For the “Felicitas Felicities” to do well there must be people willing to spend

money. That is why knowing the area’s workforce is important. In 2010, the young

dependents (0 to 14 years) comprised 32.3 percent of the household population while the

old dependents (65 years and over) posted a share of 4.5 percent. The working-age

population (15 to 64 years) accounted for the remaining 63.2 percent.

The overall dependency ratio was 58, which indicates that for every 100 working-

age population, there were about 58 dependents (51 young dependents and seven old

dependents). This ratio is lower than the dependency ratio in 2000, which was recorded at

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71 dependents per 100 working-age population (64 young dependents and seven old

dependents).

Make-up and Background of the Management Team

Danfel Mae Ila, and Roderick Baquiran, will manage and be responsible for all the

aspects related to “Felicitas Felicities”. They will be responsible for all aspects of the

company’s operation. They plan, directs, and coordinates with various aspects of all

operation areas. They will be required to implement the company’s policies and

procedures, ensures that their managers implement and support the policies with their

crews, provide the final authorization for any subordinates who are hired by the people

under their purview, and provide the required discipline, evaluations and feedback required

for their people to be successful.

Financing Requirements and Sources

Felicitas Felicities will be finance purely by owner. They will be contributing

amount of money with a total of Php 300,000.00 each in the starting-up of the business. It

will also be used for the rental of the place, advertisement, buying of raw materials and

equipment’s needed.

Proposed Used of Funds (Project Costs)

The owner will contribute Php 300,000.00. Out of this amount, a sum of

Php600,000.00 will be allocated to finance the following: fixed assets that include furniture

and fixture, machineries and equipment; pre- operating expenses that include procurement

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of raw materials, legal permits, maintenance and promotion and advertising; and operating

expenses that comprise salaries and wages, utilities, expense, rent expense, supplies

expense and uniform expenses.

Key Projections

Assumptions

1. There will be no change in rent expense for 5 years

2. Salaries and wages are estimated to increase by 5% annually

3. The company will acquire additional Machineries and Equipment for the next 5

years.

4. Advertising expense is estimated to increase by 5% annually.

5. Employee Benefit is estimated to increase based on their performance.

6. Taxes and Licenses are estimated to increase by 1% annually.

Proposed Exit Strategy

If the proposed business will not prosper, the proponents will sell the property to

interested buyers, or will merge to similar beverages business.

SUMMARY OF FEASIBILITY

Marketing Feasibility

The proponents chose persons who are from twelve (12) to fifty (50) years old,

mostly the students from Aldersgate College, Solano High School, and Saint Louis School,

employees in different establishments and individuals inside Solano as a target market. The
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location of the proposed business is in Barangay Quirino, Maharlika Hi-way, Solano Nueva

Vizcaya beside of

BPI and PS Bank. It is chosen because the place is easy to locate and it more accessible

and convenient for the manufacturing of the products.

Operation Feasibility

“Felicitas Felicities” strongly believes in the Christian values so it is important for

the business to be reasonable in doing business at all times. It believes that the success of

the business depends on how passionate and honest the manager and employees are. The

partners will ensure that the company will strictly follow business rules and regulations.

Management Feasibility

In the management aspect, the proponents conclude that the proposed Personnel in

their function and responsibilities are applicable to the business operation. The

management structure is composed of partnership that will lead to the efficient operations

of the business. The scale of salary of the personnel and staff is compatible with the

industry standard.

The business will give the following benefits: PhilHealth, Social Security System

(SSS), Pag-ibig, and 13TH Month Pay.

Financial Feasibility

The overall financial conclusion is profitable because annually its sales and spread

are increasing. The financial statements of the proposed business have a positive outcome.

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Corporate Social Responsibility

The effects of the proposed business in the society and in the economy as a whole,

the proponents can help to improve lifestyle of health conscious people. In the same

manner, the new knowledge is every essential in the development of the country. This

aspect includes the beneficiaries of the proposed business, namely: the community,

municipality, national,

government and households. It shows the benefits the beneficiaries, provides information,

and helps readers to fully understand the program to be implemented in each category.

The business will surely generate employment. The business desires to help individuals to

have a job with particular requirements. This will give them assurance that their rights are

protected by the business.

Conclusion to the Feasibility

With all the desires to fulfil this study, the proponents whole heartedly believe in

the implementation of this project. There is a bigger chance that this project can be

implemented because it will produce a nutritious beverages made from the natural fruits,

to help people to cure diseases, to contribute to economic progress to become a source of

income, and to establish a good and reputable name in the sales industry.

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 CHAPTER II

BUSINESS DESCRIPTION

For the progress of this project, the readers and the owner of the company have

presented this business description to summarize the characteristics of the business and its

background.

Vision

To be recognized as a manufacturing company of beverages that creates unique

product lines for the satisfaction of the consumers.

Mission

To provide quality products with health benefits that will promote wellness to our

consumers.

Goals and Objectives

The primary goal of the “Felicitas Felicities” is to produce highly pleasing taste of

quality, delicious and nutritious class of beverages that will soothes to the taste of the

consumers which will encourage potential and other manufacturers to produce such kind

of beverages.

This study wants to establish different distinguishing characteristics that will meet the

objectives of the company:

To provide a good tasting and healthy beverages

To promote a high standard of living by additional employment

To help the government accumulate income by paying taxes

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Company’s Form of Organization

The proponents decided to organize “Felicitas Felicities” as a partnership. It is a

type of business entity which is owned and run by partners. All assets of the business are

owned by all partners and all debts of the business are liabilities of the all partners.

Proposed Entry Strategy

Felicitas Felicities head office will be located at Barangay Quirino, Maharlika

Hiway, Solano Nueva Vizcaya, with the products of fresh fruits shakes business area. We

will be selling different kinds of beverages. At the start of the business, Felicitas Felicities

will promote its products through tarpaulins and social network promotions or the so called

social media.

Timeline of Events

The general planning of the proposed business will commence on the months of

January 2018 to December 2018. This includes finding a strategic location for the proposed

business, and establishing a tactical plan for the business. The proponents have (1) one year

to complete everything before the business can operate. Shown in the table below is the

timeline of events and the length of time allotted for each activity.

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 DEC.
1,
2018

Product Research and Development

“Felicitas Felicities” is planning to expand the operation nationwide. It will have

different branches in the province of Nueva Vizcaya.

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 MARKETING PLAN AND ANALYSIS

This part shows and highlights the description of the industry, targeted markets,

market size and trends, competition and competitive edge, barriers to entry, estimated

market shares and sales forecasts and marketing strategy.

Description of the Industry

The proposed business operates within the Food industry. The related business is

engaged in making or producing shakes and drinks products.

Targeted Markets

The main target markets of “Felicitas Felicities” are males and females who belong

to twelve (12) years old and above. They are mostly the students of the Solano High School,

Aldersgate College, Saint Louis School, employees in different establishment and families

of Mission Medical Group hospital patients. Hence, people nowadays are trendy and

meticulous in terms of healthy lifestyles; they are also the most powerful customers today.

The business’s products are influential, eye-catching, and unique.

Market Size and Trends

The size of the market is the number of household and commuters along and near

Barangay Quirino, Maharlika Hi-way, Solano who are in the social class of working poor

up to higher class. They embrace and respond to the modernization of the society and its

increasing needs healthy life style habit.

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For the further explanation of the potential target market "Felicitas Felicities" is tabulated

below.

Competition and Competitive Edge

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Offered

Buy 5 get 1 free

Free delivery in selected location

Barriers to Entry

Any condition that makes difficult to progress or to achieve the objectives of a

business. It comes in different sources but the effects are relatively the same. These are

major hindrances that affect the entry of a business.

A. Start-up Capital

It is the most common barrier because a start-up cost is the single biggest factor to

consider in putting up a business. Without money, one finds it hard to initialize a business.

B. Competition

Competitors are critical factors to consider. They can be the most disastrous for

productivity development of a business. According to Merriam Webster competition in

business is the effort of two or more parties acting independently to secure the business of

a third party by offering most favourable terms. It occurs naturally between every

individual, so it goes with every business.

C. Workforce

A task of a leader of any organization is the choice of its subordinates.

The prime objective here is to select the right people to be hired in the business to achieve

the targeted goals.

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 HISTORICAL DEMAND

Projected Demand

Using the Arithmetic-Straight Line Method, the company projected the demand for

the next five (5) years.

Demand Projection

Projected Supply

To get the projected supply, the proponents used the Straight Line Arithmetic

Model.
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 The formula for this is:

Demand and Supply Analysis

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Marketing Strategy

Felicitas Felicities provides unique products for people by giving healthy and quality shake

in a cheaper manner. With its tagline “Forget Loneliness, take a sip of HAPPINESS.

Adventurous place of FELICITAS! “. The Company is expected to give the highest

quality of products to its customers. Since it is considered as a neophyte in the

manufacturing business, it is expected to have its advertisement and promotions for it to be

known.

Advertising and Promotion

Through advertisement, the business will reach people in creating awareness and

transmits information in order to gain a response from the customers. The target market

will be the students of Solano High school. Aldersgate College, Saint Louis School, and

employees in Solano. They are very technology dependents so the proponents will give

attention to advertising through the Internet. Online advertisements will be implemented

through social networking sites like Facebook, Instagram and Twitter.

The following strategies are to be undertaken during the first year of operation.

Tarpaulins in front of the Felicitas Felicities.

Online advertisement will be implemented through social networking site like

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 Facebook, Instagram and Twitter.

Sales Projection

Product Target # of purchase Total Estimated Unit Total

Market per customer # of Products Price

Shake 34,560 50 1,728,000

(60%)

Juice 11,520 40 460,800

(40%)

Total 400 3x a week 2,188,800

Sales Tactics

When it comes to boosting the sales of the proposed business, the proponents are

planning to customize other products which are related to the original products of this

business. The proponents are planning to conduct other researches and surveys for the

development of its new product lines.

Service and Warranty Policies

In every shake or drink that has a bad taste, the customers can return it as long as

the official receipt is presented within the day. The drinks not returned within the period

cannot be accepted.

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Sales Force

Evaluating current sales force is an important step in the process of deciding

whether and how to grow the sales team. If the existing sales force is fine and will be more

than adequate to fuel future growth, the number of people can be kept the same.

Additional trainings can be done or perhaps a revamped compensation package. On the

other hand, the sales force may need to grow by a few heads. A business may choose to

maintain the same size with different people filling the sales positions.

The sales forces are persons responsible for selling products via direct contact with

the customers. Sales force members may be paid a fixed salary regardless of sales volume

or may receive a small base salary. The sales force is appropriate when selling requires the

involvement of a team of individuals or when there is an extremely long sales cycle. For

example, some complex industrial services may require several years of effort before the

prospect is sold.

Sales people must be full-time employees or must be independent, non-exclusive

agents. The members of the sales force are assigned a sales territory that may be segmented

by exclusive or non-exclusive geographic or market segments, product or product lines, or

by specific customers or prospects.

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 CHAPTER III

MANAGEMENT PLAN

This part highlights the background and primary responsibilities of the management

team organizational structure, ownership, personnel, compensation package, employment

rights, restriction and policies, and supporting professional advisors and services.

Background and Primary Responsibilities of the Management Team

Felicitas Felicities hires six (6) employees, which consists of two (2) Crew, two

(2) Pantries, and two (2) Cashiers. The management of the proposed business shows its

high expectations and standard in choosing its employees. The partners, Danfel Mae L. Ila

and Jovelyn Clarize S. Cruz would divide the responsibility in supervising all operational

activities such as purchase, sales, inventory, accounting, etc.

The following are the positions, qualification and abilities required by the

management to become its member in achieving the goals and objectives:

Position

No. of

Employee

Qualification Responsibilities

Manager 1

All partners of the business will be the manager of the business.

Responsible for day-to-day business operation.

Responsible for Operational activities such as purchase, sales, inventory,

accounting

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Cashier 2

At least 18 years old.

Ability to work with the other co-worker and also to socialize with the customers.

Trustworthy

Responsible for the Cash Management.

Accurate in check out service.

Crew 2

At least 18 years’ old

Ability to work with the other co-worker and also to socialize with the customers.

Trustworthy

Responsible for cleaning the store

Responsible for assisting the customer

Front liner of the business

Pantry 2

At least 18 years old.

Ability to work with the other co-worker and also to socialize with the customers.

Trustworthy

Responsible for preparing the product.

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Hiring Procedure

Hiring Process

1. He/she may submit his/her requirements together with the application form to the

business.

2. A face-to-face oral interview and a personal appraisal method will be performed.

3. When the applicant passes the interview, the decision of the management will be

considered.

4. The hired employee will undergo training and orientation familiarizing him/her to

the job duties, responsibilities, day and hour of work and the remuneration he/she

is entitled to receive from the business for his/her services.

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Hired employee shall submit the following requirements:

Personal information sheet

Barangay clearance

NBI clearance

SSS number

Health Examination result

TIN number

Organizational Structure

Ownership

The proponents decide to use sole proprietorship because there are no special body

laws relating to individual proprietorship as in the case of other forms of ownership. The

owner receives all profits (subject to taxation specific to the business) and has unlimited

responsibility for all losses and debts. Every asset of the business is owned by the

proprietor and all debts of the business are the proprietor's.

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Compensation package

Salary

Social Security System

The benefits under Employees’ Compensation are in the form of income or

services, and consist of the following:

Medical services, appliances and supplies;

Rehabilitation services;

Temporary total disability benefit;

Permanent total disability benefit;

Permanent partial disability benefit;

Death benefit; and

Funeral benefit.

Philippine Health Insurance Corporation

Benefit Package- The benefits under National Health Insurance Program shall consist of

the following:

In-patient hospital care

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 Room and board;

Services of health care professionals;

Diagnostic, laboratory and other medical examination;

Use of surgical or medical equipment and facilities; and

Prescription drugs and biological.

Out-patient care

Services of health care professionals;

Diagnostic, laboratory and other medical examination;

Use of surgical or medical equipment and facilities;

Personal preventive services;

Prescription drugs and biological;

Health education packages;

Emergency and transfer services; and

Such other health services that the business determines that it be

appropriate and cost-effective.

The benefit package for members and their dependent’s confinement shall not

exceed the benefit package provided by the Felicitas Felicities.

The Board shall include all the benefits provided in the Act after these have been

Pilot-tested to determine their viability, impact on cost and acceptability to providers and

members.

Home Mutual Development Fund (PAG-IBIG Fund)

Housing Loan

This housing loan program grants opportunities to Pag-IBIG Fund members to avail

of housing loans.
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Calamity Loan

This program aims to provide financial assistance to Pag-IBIG Fund member

victims in calamity-stricken areas, as declared by the Office of the President or the

Sangguniang Bayan.

Multi-Purpose Loan

This program aims to provide financial assistance to Pag-IBIG Fund members for

purposes of minor home improvement, livelihood, medical, educational, purchase of

appliance and furniture, and other needs.

Basic Salary

An employee receives salaries commensurate to his/her qualification and on the

position he/she holds in the business.

Salaries are paid out twice a month. They are usually given on the day before the

last working day of the pay period. The pay out- off periods covers the 15th and the 30thof

the month. For example, you may receive your salary on the 29th if the pay day falls on

the 31st, Sunday or a holiday.

Benefits

The firm commits itself to the employees. As a member of the family, an employee

is one of the business’s valuable assets. As the management aims for high quality products

and goodwill to their clients, it also aims to maintain goodwill to its every member of the

family. They want to make sure that you each employee is satisfied while he/she you stay

with them.

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Sick Leave

All regular employees, who have an uninterrupted bear of service, are entitled to15

working days’ sick leave with pay. However, continuous absence for more than 3

consecutive days shall be approved only when medical certificate signed by a medical

practitioner is presented. SLs will be converted to cash if unused after one year.

13th Month Pay

Every year, the employees are entitled a 13th month pay, which is equivalent to

their basic salary.

Vacation Leave

All regular employees are entitled to 15 working days’ vocation leave with pay.

VLs will be converted to cash if unused after one year.

Paternity Leave

For the father male employees, regardless of employment status, and are entitled to

seven (7) days paternity leave with pay. The father male employees may avail the leaves

four times. The leaves are not convertible to cash if unused.

This may be availed of either before, or after on the date that the employee’s wife

has given birth or has suffered from miscarriage, but not latest than 60 days from the date

of occurrence. The seven (7) day leave can be taken on a straight or staggered basis,

excluding from the count any paid holiday and / or scheduled rest day.

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Overtime

It is mandatory for the business to give overtime because it helps increase earnings

for employees. Also, most employees want additional work to increase their week pay. At

the same time, overtime can be increased or decreased to match the sources to workload

demands.

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 CHAPTER IV

CODE OF CONDUCT AND ETHICS OF EMPLOYEES

Time Management

Production/ Operation Plan

The company’s operation plans were to give the customer a refreshing experience,

maintain a good relationship, and provide fast service for their convenience.

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Production/ Operation Cost

Schedule 1

Schedule 2

Schedule 3

Office Supplies

Schedule 4
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 Furniture and Fixture

Schedule 5

Office Equipment

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 Schedule 6

Advertising and Promotions

Schedule 7

Procurement and Legal

Schedule 8

Salaries and Wages

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 Schedule 9

Utilities Expense

Schedule 10

Benefit Expense

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 Schedule 11

Socio- Economic Expense

(Annually)

Process Flow Chart

“Felicitas Felicities”

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Operating Cycle

The Felicitas Felicities operates six (6) days a week (Monday to Saturday). It starts

to operate at exactly 10:00am and finishes at exactly 6:00 pm. The lunch break is at 12:00

noon- 1:00pm.

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Facilities and Improvements

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Regulatory and Legal Issues

REPUBLIC ACT NO. 8976 November 7, 2000

WHEREAS, an Act ESTABLISHING THE PHILIPPINE FOOD FORTIFICATION

PROGRAM AND FOR OTHER PURPOSES.

Section 1. Title. - This Act shall be known as the "Philippine Food Fortification Act of

2000."

Section 2. Declaration of Policies. - Section 15 of Article II of the Constitution provides

that the State shall protect and promote the right of health of the people and in still health

consciousness among them.

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State recognizes that nutritional deficiency problems in the Philippines, based on nutrition

surveys, include deficiency in energy, iron, vitamin A, iodine, thiamine and riboflavin. To

a minor extent, the Filipino diet is also deficient in ascorbic acid, calcium and foliates.

The State recognizes that food fortification is vital where there is a demonstrated

need to increase the intake of an essential nutrient by one or more population groups, as

manifested in dietary, biochemical or clinical evidences of deficiency. Food fortification is

considered important in the promotion of optimal health and to compensate for the loss of

nutrients due to processing and/or storage of food.

Food fortification, therefore, shall carried out to compensate for the inadequacies

in

Filipino diet, based on present-day needs as measured using the most recent

Recommended Dietary Allowances (RDA)

Section 3. Definition of Terms. - For purposes of this Act, the following terms shall mean:

(a) BFAD - the Bureau of Food and Drugs of the Department of Health.

(b) DOH - the Department of Health.

(c) Fortification - the addition of nutrients to processed foods or food products at levels

above the natural state. As an approach to control micronutrient deficiency, food

fortification is addition of a micronutrient, deficiency in the diet, to a food which is widely

consumed by specific at-risk groups.

(d) Fortificant - a substance, in chemical or natural form, added to food to increase its

nutrient value.

(e) Micronutrient - an essential nutrient required by the body in very small quantities;

recommended intakes are in milligrams or micrograms.

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(f) Manufacturer - the refinery in case of refined sugar or cooking oil, the miller in case of

flour or rice, or the importer in case of imported processed foods or food products, or the

processor in case of other processed foods or foods products.

(g) NCC - the Governing Board of the National Nutrition Council.

(h) Nutrient - any chemical substance needed by the body for one or more of these

functions; to provide heat or energy, to build and repair tissues, and to regulate life

processes. Although nutrients are found chiefly in foods, some can be synthesized in the

laboratory like vitamin and mineral supplements or in the body through biosynthesis.

(i) Nutrition Facts - a statement or information on food labels indicating the nutrient(s) and

the quantity of said nutrient found or added in the processed foods or food products.

(j) Nutrition labelling - a system of describing processed foods or food products on the

basis of their selected nutrient content. It aims to provide accurate nutrition information

about each food. This is printed in food labels as "Nutrition Facts."

(k) Processed food or food products - food that has been subjected to some degree of

processing like milling, drying, concentrating, canning, or addition of some ingredients

which changes partially or completely the physico-chemical and/or sensory characteristics

of the food's raw material.

(l) Recommended Dietary Allowances (RDA) - levels of nutrient intakes which are

considered adequate to maintain health and provide reasonable levels or reserves in body

tissues of nearly all health persons in the population.

(m) Sangkap Pinoy Seal Program (SPSP). - a strategy to encourage food manufacturers to

fortify processed foods or food products with essential nutrients at levels approved by the

DOH. The fundamental concept of the program is to authorize food manufacturers to use

the DOH seal of acceptance for processed foods or food products, after these products

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passed a set of defined criteria. The seal is a guide used by consumers in selecting nutritious

foods.

(n) Unprocessed food - food that has not undergone any treatment that results in substantial

change in the original state even if it may have been divided boned, skinned, peeled,

ground, cut cleaned, trimmed, fresh-frozen or chilled.

Section 4. The Philippine Food fortification Program. - The Philippine Food fortification

Program, hereinafter referred to as the Program, shall cover all imported or locally

processed foods or food products for sale or distribution in the Philippines; Provided, That,

dietary supplements for which established standards have already been prescribed by the

DOH through the BFAD and which standards include specifications for nutrient

composition or levels of fortification shall not be covered by this Act.

The program shall consist of (1) Voluntary Food Fortification and (2) Mandatory

Food

Fortification.

Section 5. Voluntary Food Fortification. - Under the Sangkap Pinoy Seal Program

(SPSP), the Department shall encourage the fortification of all processed foods or food

products based on rules and regulations which the DOH through the BFAD shall issue after

the affectivity of this act.

Manufacturers who opt to fortify their processed foods of food products but do not

apply for Sangkap Pinoy Seal shall fortify their processed food or food products based on

acceptable standards on food fortification set by the DOH through the BFAD.

Section 6. Mandatory Food Fortification. - (a) the fortification for staple foods based on

standards sets by the DOH through the BFAD is hereby made mandatory for the following:

(1) Rice - with Iron;

(2) Wheat flour 0 with vitamins A and Iron;

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(3) Refined sugar - with vitamin A;

(4) Cooking oil - with vitamin A; and

(5) Other staple foods with nutrients as may later require by The NCC.

The National Nutrition Council (NCC) shall require other processed foods or food products

to be fortified based on the findings of nutrition surveys. Such requirement shall be

promulgated through regulations to be issued by the Department of Health

(DOH) through the Bureau of Food and Drugs (BFAD) and other concerned agencies.

(b) The fortification of processed foods or food products under this Section shall be

undertaken by the manufacturers: Provided that in the case of imported processed foods or

food products, the required fortification shall be done by the producers/manufacturers of

such imported processed foods or food products.

Otherwise, the importer shall have responsibility of fortifying the imported processed foods

or food products before said products are allowed to be distributed or sold to the public:

Provided, further, that the implementation of the mandatory fortification for wheat flour,

refined sugar, cooking oil and rice, including those milled and/or distributed by the

National Food Authority, shall commence after four (4) years from the affectivity of this

Act.

(c) The DOH guidelines on micronutrient fortification of processed food or food products

included in Administrative Order No. 4-A series of 1995 and such other necessary

guidelines that may be issued by the DOH, shall serve as a basis for the addition of

micronutrient(s) to processed foods or food products to avoid over or under fortification

that may create imbalance in the diet as well as avoid misleading label claims to gain

competitive marketing advantage.

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(d) Manufacturers of processed foods or food products shall include on the label a

statement of "nutrition facts" indicating the nutrient(s) and the quantities of said nutrients

added in the food.

(e) Imported rice, wheat flour, refined sugar, cooking oil and other processed foods or food

products that may identified later by the NCC, shall comply with the requirements of this

Act on entry in country, at the end of manufacturing process and/or at all points of sale or

distribution.

Section 7. Quality Assurance. - The agencies charged with the implementation of this

Act shall establish a quality assurance system. Likewise, the manufacturers and importers

of processed foods or food products shall also establish their own quality assurance system

in accordance with the quality assurance system of the implementing agencies.

Section 8. Implementation, Monitoring and Review. - The DOH through the BFAD shall

be the lead agency responsible for the implementation and monitoring of this Act while the

NNC, the

policy-making and coordinating body of nutrition, shall serve as the advisory board on food

fortification. The DOH shall also be responsible in the conduct of promotional and

advocacy activities on the use of fortified processed foods or food products through its

Sangkap Pinoy Seal Program (SPSP) and/or other programs designed to promote nutrition.

Products approved by the SPSP shall be allowed to use the Sangkap Pinoy Seal. Futher,

the DOH is hereby authorized to charge reasonable fees for applications in the SPSP and

use of such fees in the promotion and advocacy activities of nutrition. The NCC shall

conduct a periodic review of the micronutrients added to food. This review will provide

the basis for determining if the mandatory fortification is still required or not. The review

shall be done at least every five (5) years to coincide with the conduct of the Food and

Nutrition Research Institute's (FNRI) national nutrition survey and/or the assessment of the
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Philippine Plan of Action for Nutrition (PPAN).The local government units, through their

health officers or agricultural officers or nutritionist-dieticians or the sanitary inspectors

shall assist in monitoring/checking that foods to be mandated to be fortified like rice,

refined sugar, wheat flour and cooking oil are properly fortified and labelled with "nutrition

facts" indicating the specific micronutrient it was fortified with. The local food industries

shall report on the production, marketing and distribution of fortified foods. They shall

annual reports to the DOH, also indicating their industrial concerns and recommendations.

Section 9. Support to Affected Manufacturers. - The following government agencies shall

support the implementation of this Act through their respective programs:

(a) The Department of Trade and Industry (DTI) is hereby required to assist and support

affected manufacturers in upgrading their technologies by helping them obtain soft loans

and financial assistance for the procurement of technologies and machines to comply with

the provision of this Act;

(b) The Department of Science and Technology (DOST) shall develop and implement

comprehensive programs for the acquisition, design and manufacture of machines and

technologies and transfer said machines and technologies to manufacturers;

(c) The Land Bank of the Philippines (LBP) and the livelihood Corporation (LIVERCOR)

are hereby required to assist and support the implementation of this Act by granting loans,

to affected manufacturers, at preferential rates; and

(d) The various agencies/institutions with accredited analytical laboratories for nutrient

analysis and other technology development generators shall provide the necessary services

that may be required by the food industry in compliance with this Act.

Section 10. Noncompliance with Fortification Process. - The following shall be considered

non-compliance with the fortification process:

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(a) If the food fortification levels do not comply with the DOH requirements, except when

the deviation from the fortification levels are justified and are properly declared in the

labelling;

(b) If the fortificant used is different from that approved by the DOH; and

(c) If the process of fortification does not conform to the DOH standard.

Section 11. Administrative Sanctions. - The DOH through the BFAD, after notice and

hearing, shall impose any or all of the following administrative sanctions in cases of

noncompliance with the food fortification guidelines it has set:

(a) Denial of registration of the processed foods or food products by the DOH through the

BFAD if the processed foods or food products do not comply with the food fortification

requirements. Said processed foods or food products shall not be allowed to be put in the

market;

(b) Order the recall of the processed foods or food product(s); and

(c) Impose a fine or not less than Three Hundred Thousand Pesos (P300,000.00) and

suspension of registration for the first violation; not more than Six hundred thousand pesos

(P600,000.00) and suspension of registration for the second violation; and not more than

one million pesos

(P1,000,000.00) and cancellation of the registration of the product for the third violation of

the provisions of this Act or its Implementing Rules and Regulations (IRR).

Section 12. Implementing Rules and Regulations. - The DOH through the BFAD and in

consultation with other concerned government agencies, nongovernment organizations,

private sectors and consumer groups involved in nutrition, shall formulate the

implementing rules and regulations (IRR) necessary to implement the provisions of this

Act within ninety (90) days from the approval of this Act. The IRR issued pursuant to this

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Section shall take effect thirty (30) days after publication in a national newspaper of general

application.

Section 13. International Commitments. - Nothing in this Act is intended to violate

provisions of Treaties and International Agreements to which the Philippines is a party.

Section 14. Repealing Clause. - All laws, decrees, rules and regulations, executive orders

inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 15. Seperability Clause. - If any provision of this Act is declared unconstitutional

or unlawful, the remaining provisions shall remain legal and in full effect.

Section 16. Effectivity. - This Act shall take effect upon its approval.

Customer Support

By providing excellent customer service is one way Vizcaya Citrulicious can be

distinguished of from the competition. Good customer service is all about bringing

customers back to avail the services or often called as loyal customers. For more accurate

communication with customers, the following are common customer support options:

Web Service or Online Site: This allows the customers and employees to access

information and performs routine tasks over the Internet, without requiring any interaction

with a representative of the business. It benefits the business by its lower cost, as compared

with telephone or email service by a business representative.

Survey: Designed to provide the customers with the best service possible and insight into

the transaction between the staff and the customers. Comments will enable the team to see

how Felicitas Felicities does overall and find out how services and products can be

improved.

Future Research and Development Plan

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 The Future Research and Development Plan of Felicitas Felicities will provide a

clear framework of challenging targets for the consumer over the next years. Strategic view

of the needs and opportunities to achieve outcomes that meet the expectations of industry

will be the key to the success of this plan. The team is planning to expand the business

venture by establishing other branches and to open for franchising.

Waste Disposal

Felicitas Felicities will observe waste management segregation wastes generated

by the resident of the Felicitas Felicities will be segregated according to type:

biodegradable or those wastes capable of being decomposed by nature and the non-

biodegradable or those that cannot be broken down by decomposer. Regular collection of

solid is a service provided by the city or municipality for proper disposal. The garbage

truck or garbage collectors will arrive at around 9 o’clock in the morning to collect garbage

biodegradable to be collected every Tuesday and Saturday while the non-biodegradable are

scheduled to be collected every Wednesday and Sunday.

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Production Schedule

Felicitas Felicities operates six (6) days a week (Monday to Saturday). It starts to

operate at exactly 10:00am and finishes at exactly 6:00 pm. The lunch break is at 12:00

noon- 1:00pm. The business obliges the employees to have overtime if needed.

Store

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Vicinity Map

Felicitas Felicities

Floor

Plan

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Company’s Uniform

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 CRITICAL RISKS

External Risks

Storm/flood- Risk occurs because climate change and pestilence.

Increase in Competitors - Competitors are everywhere and there will come a time that

new beverages company will open near Vizcaya Citrulicious location. The sales will be

affected.

Internal Risks

Internal Risks are hindrances that are usually encountered by the business firm which is in

the control of the latter hence, can be diversified

Especially the following risks are as follows:

RISK DEFINITION EFFECT BEST THING TO DO:

Employee Risk

Risk may encounter because of the personal behaviour of employee

May decrease the profit of the company. Monitor the behaviour of the employee.

Settlement Risk

The risk in the relation to failure of the customer to comply with their obligation to

the company. May affect the profit of the company if the customer does not make payment

within 90 days’ extract additional 5% service change to the next delivery.

Absence or Tardiness of employees/ staff – absence and tardiness are sometimes

inevitable for employees. It may result for the dislike of the customers to the employees

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and may result losing the customer, it is sometimes the reason for the delay of the

production in the business.

Production - the business creates and produces its product, any delay in the production

may be one of the internal risks that the business might face in its daily operation.

Loss of business location - Location is a big factor in operating the business.

The group cannot guarantee the availability of the chosen location for the reason that it is

not yet paid. The owner of the place might give the rent for others. It is also where the

business depends on the target market.

Lack of financial resources - The group can encounter insufficient budget because the

business is a new entry in the industry and still adjusting. Sales might be low at first and

the income will be affected that can causes of lack of financial resources to support the

business.

Unexpected damage of Machineries and Equipment - machineries and equipment is

very important because it has a major function in the production. If damages occur, it will

be time consuming especially during peak hours.

Insurance Provisions

The proponents will avail life and properties insurance at the office building for a reason

that the employees’ lives are ensured if an accident occurs in delivery services.

This insurance will safeguard the protection of properties inside the building.

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Fidelity Bond

A fidelity bond is a form of insurance protection that covers policy holders for losses that

they incur as a result of fraudulent acts by specified individuals. It usually insures a

business for losses caused by the dishonest acts of its employees. This kind of insurance is

chosen by the proponents for them to have an agreement with their employees that there

would be a consequence or something that logically or naturally follows from an action or

condition whenever there would be losses that would occur caused by the employees.

Contingency Plans and Control

The proponents will continue to operate the business and expand its services along Quezon

City. If the business becomes a success, the business will open branches that will support

to its operational growth. The future development of the business includes the expansion

of the products.

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 CHAPTER V

FINANCIAL PLAN

Project Cost

Financial Assumptions and Projections

1. Projected Selling Price for Units is estimated to increase by 5% annually.

2. Rent Expense for Store and Production space is estimated to increase by 1%

annually.
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3. Fixed Assets are having five (5) years estimated depreciable life and 9% salvage

value.

4. Supplies Expenses are estimated to increase by 5% annually.

5. Salaries and Wages are estimated to increase by 2% annually.

6. Employees Benefits are estimated to increase by 1% annually.

7. Employee’s uniforms are estimated to decrease by 5% annually.

8. Advertising and Promotional Expenses are estimated to increase by 10% annually.

9. Utilities Expenses are estimated to increases by 10% annually.

10. Freight out are estimated to increase by 1.25% annually.

11. Raw materials are estimated to increase by 3% annually.

12. Socio- Economic Expenses are estimated to increase by 2% annually.

13. Store supplies, factory supplies & office supplies expense will expect to increase

at 5% annually.

14. Estimated Finished Goods Inventory beginning is equal to 3% of the total number

of units sold.

15. Estimated Finished Goods Inventory end is equal to 3% of total purchases.

16. Legal Permits are expected to increase by 1% annually.

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Projected Income Statement

Felicitas Felicities

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Projected Balance Sheet

Felicitas Felicities

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Ratio Analysis

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Exit Strategy

If the proposed business will not succeed, the proponents will sell the property to

interested buyers, or will merge to similar.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Community Program

Waste Management Disposal

Waste management disposal program will be done by Felicitas Felicities

Collection, transportation and disposal of waste materials, as well as offering the best

solutions for reducing; reusing and recycling waste is all available through Waste Disposal

Management. The methodology used by Disposal Management achieves waste reduction

primarily through reduction at the source followed by recycling and the re-use of certain

materials. The goal of the business is to meet the needs of the customer and also working

to provide an environmentally - friendly disposal plan. The business will provide Php

5,000.00 for the budget of this program.

Municipality

1. Sponsoring sports

1. Sponsoring sports such as Basketball and Volleyball for the teenagers and

students so that they will become healthy and happy as well as save the youth

nowadays from any abuses. The business will provide fund worth Php 5,000.00

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National

National Program

1. Employment

The employment for less fortunate and unemployed people living in and around in

the community wherein Felicitas Felicities will be needing people specifically as their

staff. The business also gives big opportunity for their employment in case they will fit the

said needed positions. The proposed budget for this is Php 5,000.00.

Government Programs

1. Clean and Green program will be done by Felicitas Felicities management in their

community to help achieve cleanliness and orderliness in them in their community. They

will also have control plan and waste segregation. The budget for this program is Php

2,000.00

2. Tree planting program will be done by Felicitas Felicities in their community to enjoy

the freshness of the environment and healthy lifestyle. The business will provide a budget

for this worth Php 2,000.00.

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 BIBLIOGRAPHY/ REFERENCES/ WORK CITED

http://www.hsph.harvard.edu/nutritionsource/healthy-drinks/focus/

http://www.localhistories.org/drink.html

http://bestalternative-medicines.com/healthy-drinks/health_drinks_a_history.html

http://www.propinoy.net/2014/07/21/the-philippines-first-world-country-but-

thirdworld-

people/

2012 Financial Accounting, Valix, Peralta Vol.2

Cabrera,Ma.Elenita Balatbat. Management Accounting - Concepts and Application.

2011 edition

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 Table of Contents
APPROVAL SHEET…………………………………………………………………………………………………………....i

ACKNOWLEDGEMENT……………………………………………………………………….ii

DEDICATION…………………………………………………………………………………...iii

PREFACE………………………………………………………………………………………...iv

EXECUTIVE SUMMARY ........................................................................................................... 1

CHAPTER I ................................................................................................................................... 3
INTRODUCTION.......................................................................................................................... 3
PROFILE OF THE PROPOSED COMPANY ........................................................................... 4
Company Name .......................................................................................................................... 4
Product Name ............................................................................................................................. 4
Location of the Head Office ...................................................................................................... 4
Company Logo ........................................................................................................................... 5
Company Tagline ....................................................................................................................... 5
Nature of the Product/Service Offered .................................................................................... 6
Size and Growth Trend of the Market ..................................................................................... 6
Make-up and Background of the Management Team ............................................................ 7
Financing Requirements and Sources ...................................................................................... 7
Proposed Used of Funds (Project Costs) .................................................................................. 7
Key Projections .......................................................................................................................... 8
Proposed Exit Strategy .............................................................................................................. 8
SUMMARY OF FEASIBILITY ................................................................................................... 8
Marketing Feasibility................................................................................................................. 8
Operation Feasibility ................................................................................................................. 9
Financial Feasibility ................................................................................................................... 9
Corporate Social Responsibility ............................................................................................. 10
Conclusion to the Feasibility ................................................................................................... 10
CHAPTER II ................................................................................................................................ 11
BUSINESS DESCRIPTION ....................................................................................................... 11
Vision......................................................................................................................................... 11
Mission ...................................................................................................................................... 11
Goals and Objectives ............................................................................................................... 11

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 Company’s Form of Organization ......................................................................................... 12
Proposed Entry Strategy ......................................................................................................... 12
Timeline of Events.................................................................................................................... 12
Product Research and Development ...................................................................................... 13
MARKETING PLAN AND ANALYSIS ................................................................................... 14
Description of the Industry ..................................................................................................... 14
Targeted Markets..................................................................................................................... 14
Market Size and Trends .......................................................................................................... 14
Competition and Competitive Edge ....................................................................................... 15
Offered ...................................................................................................................................... 16
Barriers to Entry ...................................................................................................................... 16
A. Start-up Capital............................................................................................................... 16
B. Competition...................................................................................................................... 16
C. Workforce ........................................................................................................................ 16
HISTORICAL DEMAND ........................................................................................................... 17
Projected Demand.................................................................................................................... 17
Demand Projection .................................................................................................................. 17
Projected Supply ...................................................................................................................... 17
Demand and Supply Analysis ................................................................................................. 18
Marketing Strategy .................................................................................................................. 19
Advertising and Promotion ..................................................................................................... 19
Sales Projection ........................................................................................................................ 20
Sales Tactics.............................................................................................................................. 20
Service and Warranty Policies ................................................................................................ 20
Sales Force ................................................................................................................................ 21
CHAPTER III .............................................................................................................................. 22
MANAGEMENT PLAN ............................................................................................................. 22
Background and Primary Responsibilities of the Management Team ............................... 22
Manager 1 ............................................................................................................................. 22
Cashier 2 ............................................................................................................................... 23
Crew 2 ................................................................................................................................... 23
Pantry 2 ................................................................................................................................. 23
Hiring Procedure ..................................................................................................................... 24

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 Hiring Process .......................................................................................................................... 24
Hired employee shall submit the following requirements:................................................... 25
Organizational Structure ........................................................................................................ 25
Ownership................................................................................................................................. 25
Compensation package ............................................................................................................ 26
Salary .................................................................................................................................... 26
Social Security System ......................................................................................................... 26
Philippine Health Insurance Corporation ......................................................................... 26
Home Mutual Development Fund (PAG-IBIG Fund) ...................................................... 27
Basic Salary .......................................................................................................................... 28
Benefits .................................................................................................................................. 28
CHAPTER IV .............................................................................................................................. 31
CODE OF CONDUCT AND ETHICS OF EMPLOYEES ...................................................... 31
Time Management ................................................................................................................... 31
Production/ Operation Plan .................................................................................................... 31
Production/ Operation Cost .................................................................................................... 32
Process Flow Chart .................................................................................................................. 36
Operating Cycle ....................................................................................................................... 37
Facilities and Improvements ................................................................................................... 38
................................................................................................................................................... 39
Regulatory and Legal Issues ................................................................................................... 39
CRITICAL RISKS ...................................................................................................................... 52
External Risks .......................................................................................................................... 52
RISK DEFINITION EFFECT BEST THING TO DO: ....................................................... 52
Employee Risk ...................................................................................................................... 52
Settlement Risk..................................................................................................................... 52
Absence or Tardiness of employees/ staff .......................................................................... 52
Production ............................................................................................................................ 53
Loss of business location ...................................................................................................... 53
Lack of financial resources ................................................................................................. 53
Unexpected damage of Machineries and Equipment ....................................................... 53
Insurance Provisions............................................................................................................ 53
Fidelity Bond ........................................................................................................................ 54

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 Contingency Plans and Control .......................................................................................... 54
CHAPTER V ................................................................................................................................ 55
FINANCIAL PLAN ..................................................................................................................... 55
Project Cost .............................................................................................................................. 55
Financial Assumptions and Projections ................................................................................. 55
Projected Income Statement ................................................................................................... 57
Projected Balance Sheet .......................................................................................................... 58
Ratio Analysis ........................................................................................................................... 59
Exit Strategy ............................................................................................................................. 60
CORPORATE SOCIAL RESPONSIBILITY (CSR) ............................................................... 60
Community Program ............................................................................................................... 60
Municipality ............................................................................................................................. 60
National ..................................................................................................................................... 61
National Program................................................................................................................. 61
Government Programs ........................................................................................................ 61
BIBLIOGRAPHY/ REFERENCES/ WORK CITED .............................................................. 62

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