DAVAO ORGANIC BAKERY AND COFFEE SHOP

MISSION Davao Organic Bakery and Coffee Shop is a start-up company. Financing will come from the owners capital. The company plans to build a strong market position in the town, due to the owners industry experience and mild competitive climate in the area. Davao Organic Bakery and Coffee Shop is built around the belief that eating a healthy, organic breakfast can have a significant impact on a person's health and attitude, as well as the environment. Davao Organic Bakery and Coffee Shop also believes that customers can have great tasting organic baked goods if the right attention is paid to sourcing, recipes, and consistency. Davao Organic Bakery and Coffee Shop will launch a first location at Union Station in, in Wilder, to serve commuters and build a local brand which can be leveraged into additional locations in the coming years. Davao Organic Bakery and Coffee Shop will build a following through advertising, referral marketing, and a loyalty program. This marketing plan will allow Magno Carbonel, the owner, to focus his marketing efforts by taking the long view, and looking for results on a daily and weekly basis to see that the chosen tactics are successful.

OBJECTIVE Davao Organic Bakery and Coffee Shop offers a broad range of coffee and espresso products, all from high quality grown imported coffee beans. Davao Organic Bakery and Coffee Shop caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail. The bakery provides freshly organic prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of organic bakery and pastry products are prepared during the day to assure fresh baked goods are always available. Davao Organic Bakery and Coffee Shops marketing plan is designed to document the path the business plans to take to work towards its ultimate goal of

becoming a serious player in the Wilder area organic movement and to make a difference in the community by being a vocal proponent of organic eating and living. We truly believe that organic food is not a gimmick - it is a path to a healthier and more sustainable life. We also believe that customers need not give up good taste in order to eat healthily, as the right recipes can bring the two together. All bakery products are baked in the residence to ensure the customers that all products are home-made and freshness of the products being displayed at the store are all newly baked.

SWOT STRENGHT The ideal customer for Davao Organic Bakery and Coffee Shop is willing to take a little extra time and spend a little extra money to eat healthy, naturally-grown food in the morning. He or she knows the difference between store-bought or street vendor baked goods, which make no promises about organic quality, and those that do. The customer knows that organic food tastes as good as, or better, than conventionally grown good, and believes that there does not need to be any difference between eating what is good for the environment and eating what is healthy. This ideal customer would look for organic labels in grocery stores and be more inclined to buy from socially conscious brands elsewhere. Davao Organic Bakery and Coffee Shop encourages the on-the-go commuter to slow down for just a few moments in the midst of their morning rush and consider the healthfulness of what he or she is eating. This daily choice is extremely important both for the individual and the environment as well, Davao Organic Bakery and Coffee Shop wants to help them make the decision that is beneficial for both.

WEAKNESSES Oftentimes the supplies do not last until the next purchase due to customers demand. This is due to the managements failure to forecast the use of all product materials that leads to product shortages. The space area as well needs to be extended to facilitate more customers but the space is limited only due to space constraints. The area therefore cannot be maximize to cater from 20 tables sets to 30 tables sets.

OPPORTUNITIES There is a big possibility for the company to expand the bakery business due to the customers demands therefore there will also be opportunities for hiring additional employees and more benefits financially for the company. Since Davao Organic Bakery and Coffee Shop rents a space at JSGaisano Mall, Davao City, the management is bringing into considerations to open its new branches at NCCC Department Store, cor. McArthur Highway and Maa Road and at SM Department Store at Ecoland, Matina, Davao City.

THREATS Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as Davao Organic Bakery and Coffee Shop. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations). Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. During fiscal year 2000, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories. Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail order and online. Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering

online stores that allow customers to browse for and purchase coffee, gifts, and other items via the Internet have become more commonplace as well.

All of the above are high-risks and should be on the managements watch lists to maintain the financial flow of the company.

IMPLEMENTATION STRATEGY Our strategy focuses on serving a niche market with quality goods. We are determined to become a part of the community - an establishment that becomes as much of the department stores. To achieve these goals, we will provide the following: Friendly, neighborhood-feel atmosphere. Quality baked goods for everyone to enjoy at a fair price. Special diet menus in relation to the advice of local healthcare providers.

Our strategy focuses on building a customer base by providing good customer experience. With the addition of the coffee bar and lunch menu in early spring, we hope to have customers make the bakery their one-stop destination for breakfast or lunch. In the summer, when we open the outdoor patio, more and more customers will make the bakery a destination for their lunches more often since the atmosphere will be so pleasing.

EVALUATION AND CONTROL The Davao Organic Bakery and Coffee Shop has a yearly financial, marketing, and balance sheet to regularly check and be feasible for auditing purposes. Supplies are now all logged and since the management failed to maintain monthly auditing of supplies, a new option is now being studied by the company owner to further enhance the managements efficiency especially on peak season. Employee trainings are optional but there is a reserved training for at least once a year to ensure that the company will go with the trend in baking industry. At the same time, the management is also maintaining the employees benefit health-wise as the company caters food services to the public.

CONTROL All supplies are now being logged to avoid future shortage of materials and other necessary needs for the company. Financial matters are controlled by the management and all issued are being reported to the company owner for further approval and proper documentation. Hiring of employees are sole responsibility of the management. Sets of standards are to be met by the applicants and should pass some series of examinations before they are hired by the management. Salaries and other benefits awaits for those new employees depending on their performances.

DYNAMIC AND CONTINUOUS PROCESS Davao organic Bakery and Coffee Shop has a high profile name to be maintained. Therefore, the management is expecting the employees to be at their best working conditions in serving the customers as customers satisfaction is best regarded by the company. In the financial flow aspect of the company, a monthly meeting with the management and the company owner is held every 2nd Friday of the month.

LOCATION OF FACILITIES Davao Organic Bakery and Coffee Shop is currently located at the ground floor of JS Gaisano Mall, J.P. Laurel Ave., Bajada, Davao City and the management has a future plan of adding two branches which will be operating early next year, 2012 at NCCC Department Store McArthur Highway cor. Maa Road, Davao City and at the SM Department Store, Ecoland, Davao City.

PLANT LAYOUT AND MATERIAL HANDLING The Davao Organic Bakery and Coffee Shop has a floor area of 10 x 15 square feet. There are 16 coffee tables with 2 chairs for each tables to accommodate customers. The area is not too spacious but enough for the customers to move with a bit comfort. The display, coffee, and other appliances and equipments are all placed in one area which is fronting the customers seats and tables so that the service crews can attend quickly with the customers needs. The bakerys products are all baked at the baking house of the company owner which is located and built within the company owners compound due to unavailability of building for baking purposes in downtown

area. But in any ways, the owner considered it reasonable for the time being to ensure that sanitation is being applied to all equipments used for the production. Materials such as baking equipments, machineries, office equipment and furniture and fixtures are all maintained well and assessed to update all materials needed are at its best working conditions.

PROCESS DESIGN The Davao Organic Bakery and Coffee Shop is designed to produce bakery products which are healthful because the ingredients used in baking are mixed with organic products such as wheat, flour, fruits and etc. Most of the company products include, yeast, active dry yeast, flour, rye, organic eggs, and European/Australian butter. Main ingredients are not substituted by local ingredients to ensure that the qualities to be sold are fresh and at its best tastes. The coffees, which are also one of the companys main selling products are sourced from the U.S, Italy, Russia, Canada, Colombia, Brazil among others since there are foreigners who prefers their usual coffee tastes. The following are just some of the list of coffees being served in Davao Organic Bakery and Coffee Shop: Turkish Coffee Cappuccino Caf Latte Macchiato Skinny Coffee syrup flavors include: vanilla, cinnamon, gingerbread, hazelnut and caramel Espresso Decaffeinated Coffee Mocha Americano

QUALITY CONTROL The experienced staff of Davao organic bakery and Coffee Shop can design a comprehensive quality control program of the bakery, making it possible to produce breads and pastries of the highest quality while controlling production and expenses. This investment in the future of the bakery gives he company everything needed to build and maintain an efficient, high-quality, profitable business.

Davao Organic Bakery and Coffee Shops Quality Control Program, keeps records of your bakerys formulas and processes so that they can provide knowledgeable, consistent support on an on-going basis. In order to illuminate the components of QC and QA programs, it is important to understand that they are not the same thing nor is one a sub component of the other. It is generally recommended that quality control be viewed as the line of defense against sending a product out to the general public that does not meet required standards of quality and safety. Quality assurance, on the other hand, is generally recommended to be viewed as the maintenance of a production environment that is conducive or supportive of producing products that will meet required standards of quality and safety. Quality control include, but are not limited to, a metal detector after packaging, objective standards for symmetry, dimension, color etc., of the finished product, temperature parameters for shipping whether going out as a frozen product or at a predetermined temperature range supporting quality or safety. These are the last line of defense against something going out that is substandard. This category includes all the methods that we implement to catch any flaws before they are realized by the public. Quality assurance, on the other hand, include the following. Calibration of thermometers used in production stages, proper ingredient use and handling, monitoring mixing and handling practices, good manufacturing practice (GMP) programs, etc., that are undertaken to maintain a bakery environment that produces quality products that will not be eliminated as sub-standard by the quality control checks. There are a number of sources for more information concerning the specific steps. I am choosing to focus on the correct implementation of these steps.

MATERIAL MANAGEMENT Each member of the bakery team will have a sense of purpose. It is therefore necessary to consider how the bakery production personnel fit into the whole structure of production management. It would be best to consider the functions of the various personnel on the production side and specify the duties of each. Materials used in the production such as the equipments, appliances and vehicles are well-maintained by the personnel designated. Procurement and disposal of the companys properties are under the company owners prerogative.

As for the managements responsibilities, following are their duties and responsibilities to keep track of the following: Accounts Payable shares purchase order

information from Purchasing and updates the invoiced-to-date amount on the purchase order real-time. Receipts are entered and referenced to a purchase order number, ensuring accurate posting of deliveries to each purchase order line. Receipts that cannot be identified or that do not fit matching criteria are identified, placed on hold, and reported for buyer action. Each receipt is checked for proper delivery points and verified that the quantities received and the receipt date are within tolerances already defined on the purchase order. Another receipt requirement, inspection of goods, is handled through dock-to-stock tracking. This feature tracks the inspection of materials according to a table of routing and inspection areas. The Inventory integration with the Purchasing system is designed to address warehouse replenishment needs. Information about stock items and requisitions for replenishment are passed from Inventory to Purchasing, and purchase orders and receipts pass from Purchasing to Inventory. The following information is shared between the two systems: items, requisitions, purchase orders, and receipts.

MAINTENANCE MANAGEMENT The maintenance department is one of the greatest levers of profitability that any capital intensive organization has. An average of 40 50% of a capital intensive industries operating budget is consumed by maintenance expenditure. With the advances today in technology affecting maintenance this figure can be greatly reduced.