Plan PDF [PDF]

Zitiervorschau

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A Feasibility Study Submitted to: Prof. Edgar Laurente

POTATO CRAVERS The Faculty of The National Teachers College College of Accountancy & Business Manila

In Partial Fulfillment of the Requirements for the degree of Bachelor of Science in Business Administration Major in Marketing Management

Salvador, Samuel A. Josue, Marla Marie Enovero, Danica Espadero, Ramonchie Sy, Angelica Shyne Junio, Raymon

OCTOBER 17,2015

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Table of Contents I.

Executive Summary 1. Type of Business 2. Nature 3. Name 4. Product/Service A. Management, Marketing and Financial Highlights B. Socio-economic Contributions

II.

Marketing Plan A. Product and Service to Sell B. Target Market 1. Area Coverage 2. Consumer/Customer C. Demand and Supply Analysis 1. Total Potential Demand 2. Present Supplier/Competition D. Projected Sales 1. Per Month 2. Per Volume/ In Pesos E. Marketing Program/Strategies 1. Practices of Competitors 2. Own Marketing Program/Strategies

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F. Marketing/Selling Expenses III.

Production/Operation Plan A. Technical Production Description B. Production Operation by Process C. Production Schedule D. Labor Requirement E. Machinery/Equipment Requirement F. Raw Materials Requirement G. Plant/Factory Location

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H. Plant Lay-out I.

Waste Disposal System

J.

Quality Control System

K. Production Cost 1. Total Production per Year 2. Total Production per Unit IV.

Organizational Plan A. Legal Form of Business B. Organizational Structure C. Qualification of Officers D. Office Equipment E. Gantt Chart F. Administrative Expenses

V.

Financial Plan A. Total Project Cost B. Sources of Financing C. Projected Financial Statement 1. Projected Cash Flow Statement 2. Projected Income Statement 3. Projected Balance Sheet D. Profitability Indices 1. ROI 2. Payback Period 3. Net Income to Sales ratio 4. Breakeven Point 5. List of Assumption Used

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EXECUTIVE SUMMARY A. TYPE OF BUSINESS 1. Nature Our Company is a food retail and manufacturing business. And because of that, we are responsible in doing all the tasks involving innovating, manufacturing and producing our products. We are the one who personally communicate with our customers. As all-in-one company this will serve as our advantage from other competitors. Our Company is a Partnership. 2. Name Every company, organization and institution has its own unique name or identity that makes a distinction with others. Regarding this matter, our Company end up to an extraordinary name and that is Potato Cravers. It is derived from our daily doing which established through an extraordinary friendship in unexpected situation. There are businesses that had been established through friendship as well and in that case we can proudly say that Potato Cravers was born by unique friendship that unites for a desire to innovate new product. Potato Cravers, a group of friends who are fond of eating potato snack like French Fries and Potato Chips even when reviewing and watching movie. We decided why don’t we make or innovate a simple potato into a unique and

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tasteful potato snack that will really suite for everybody’s taste and it came out as “Potato de Rollo”. Potato Cravers is the name of our company because our product is primarily made of potato, so we decided to put “Potato” in our company name so that people will think that we are selling potato products. We add the word “Cravers” so that people who are craving or hungry for potato snacks will definitely go to our location once they will hear it.

3. Products / Services It is called Potato de Rollo because of how it is presented. Our company decided to choose a product name which is very suitable and that can be easily recalled by our customer once they hear it. Our Potato De Rollo is mashed potato that has cheese inside of it so that the cheese will make the product more tasteful. We rolled the mashed potato and wrapped it with bacon and then fry it to be more appetizing and delightful. Potato de Rollo can be a snack or appetizer. B. Management Marketing and Financial Highlights In the management, Our company describe the different legal structures of busines s as well as the organizational structure and the qualification of the officers of the co mpany, the equipment needed and administrative expenses forecasted and the orga nize schedule of all the activities of the company. In our marketing, our company provides description of the product that we sell to the market, the advantaged of Potato de Rollo together with its primary and seco

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ndary use. In addition, we also presented our target market, demand and supply ana lysis, projected sales, the marketing strategies of the company and our competitors. It covers the general business condition, competitive condition, target market, dema nd, supply, product pricing strategy, promotion and packaging. This area represents about structured questionnaire floated to the respondent and the result determined by demand and supply and for the partners to know whether the product will penet rate the target market. In the financial plan, it includes financial statement to verify the transactions that the company undergoes. It will show reports on the company's assets, liabilities , and ownership equity at a given point in time and the reports on the company's inc ome, expenses, and profits over a period of time. Furthermore, it will present report s on the company's cash flow activities, particularly its operating, investing and fina ncingactivities. C. Socio-Economic Contribution Every company should have a socio economic contribution because the main p urpose of any firm is to gain profit for the growth of their own companies. Fortunat ely, we still have the Corporate Social Responsibility (CSR). Potato de Rollo can cont ribute to the growing and increasing economic status of our country because we are an entity that gains profit or money, we are taxed by the government that’s why we are already helping the country.

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Aside from the taxes obligation, we could also help the whole society by givi ng employment for others. First is the opening of our new product in the society. Th e product that our company is offering are quality and delicious food that’s why the society could purchase the product that are different to what they usually purchase t hat could increase their personal satisfaction and their happiness Building up business is a great opportunity for an employed person to have a job and to have another source of income. This business is expected to give great contribution to the government in the form of tax. This tax payment from the business would help the localities as well as the ec onomy in its future projects especially for people that will benefit this would help th em to more sprightly.

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COMPANY LOGO

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COMPANY LOGO DESCRIPTION Potato Cravers Company is offering food product in the market. As you can see in our company logo, it has an image of group of friends that represents on us. We like to eat potato so we made a product which is the Potato de Rollo. Our Company chose to belong in the food industry. In spite of its increasing population, we are challenge to innovate a product that would really give Filipinos a quality and delicious food. Our product is called “Potato de Rollo” with the abbreviation PDR. Potato de Rollo is a potato with bacon and cheese as the main ingredient.

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PRODUCT LOGO

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PRODUCT LOGO DESCRIPTION Potato De Rollo is a product which is generated by the Potato Cravers Company. 

The Potato has a hat or “SALAKOT” because it represents our product “Potato de Rollo” that is made by Filipinos.

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Mouth Cheese shows that our product has cheese inside the Potato that gives flavor on it.

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Bacon Hands indicate that Potato de Rollo is wrapped with bacon.

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The background is color brown because it reflects the color of Filipinos.

TAG LINE: “Mapaparrrrrrolyokasasarap” means that after you ate Potato de Rollo you will feel contentment and satisfaction like when you are riding in the roller coaster.

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D. BRAND STORY

Potato Cravers Company was found on July 11, 2015. One afternoon when our group hang out to sort ideas on what we can offer in the market. As a group of friends who loves to eat potato dish like French fries and Mashed potato. The thought comes to our mind why can’t we innovate an ordinary potato into a new product, since there is no mashed then fried potato products yet, we decided to try it and we put cheese inside the potato ball to be more tasty and wrapped bacon around it to look more delightful and that’s how Potato de Rollo was invented. Since our product is potato we decided that our company name will have a Potato and because we are fond of eating potato, we decided to use Cravers because we always crave for potato snacks. So that’s how Potato Cravers is discovered.

Our inspiration to make Potato de Rollo is the customers in the market. We want them to satisfy their needs and also for them to experience what Potato de Rollo can give to them.

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E. VISION To be one of the leading manufacturer and retailer of POTATO DE ROLLO in the Philippines by 2020.

F. MISSION To provide our customer a quality, healthy, delicious and innovative snacks at reasonable and affordable price. Our Company is dedicated to promise in serving the best and innovative food snack.

G. CORE VALUES CUSTOMER/ CLIENT – Our Company are serving high quality and best service to our valued customer in return of their continuous patronizing our product in the industry. It is our will to accommodate and serve our delight customer because they serve as our life blood in the market. Without them, our product would not be able to recognize of its existence. HOSPITABLE: Potato Cravers are giving warmth welcome to our valued customer once they will visit and purchase our product. It is our way in order to maintain the good relationship between our customer and us. RESPONSIBLE: Our Company is accountable to every single process that we undertake inside the organization in order that we can render high quality product.

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INTEGRITY: Every employee embodied honesty and truthfulness dealing with the customer. Company employees always seek and preserve their natural integrity as they are responsible enough to distinguish what is right and wrong in the company. Through these, customer will believe us based on the attitude we are showing to them. SAFETY AND SECURITY: Our Company assures that were serving a safe and good quality of food so that our consumers will not be able to worry when trying the product, because it is tested by BFAD and other sanitary inspections. TRUSTWORTHY: Potato Cravers have been served high quality food standard because we are sure that were serving a clean and tasteful product so that many customers will patronize it.

III. MARKETING PLAN

A. Products / Service to Sell

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1. Product Description Potato Cravers Company offers a unique innovative product in the market and our main product is Potato de Rollo. It is not just a typical potato because the mashed potato is wrapped with bacon and has a cheese inside of it to make it delightful and to give a new innovative version for a simple/plain potato.

Potato de Rollo is nutritious because potatoes are rich in Vitamin C, Potassium, and Vitamin B-6. It is also a good source of Calcium, Iron, Magnesium, Phosphorus, Niacin, Folate, Choline and Zinc.

2. Primary Use It can be a snack. 3. Secondary Use It can be an appetizer.

4. Picture of the Product

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5. Unique Selling Proposition

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Potato De Rollo is unique than other ordinary potato products. Common potato snack like French Fries and Potato Chips is far different from Potato de Rollo. Since there is no mashed then fried potato snack yet, this is one of the uniqueness of our Potato De Rollo. The mashed potato is rolled and has a cheese inside then we wrapped the bacon around it and fry it to become more appetizing. Second uniqueness of Potato de Rollo is that, bacon is very unusual ingredient for potato snacks but Potato de Rollo has bacon so that it will make the customers be satisfied and it will give them a new taste of food. Potato de Rollo is much affordable than the other potato snack.

B. Target Market

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1. Industry Analysis Potato is one of the four largest produced crops in the Philippines and grown by small and large scale. At present, Philippines is one of the world’s largest potato crop producer which ranked as the fourth after India, Uganda and China. According to data, the statistics shows that in the year 2014, the Philippine has produced more than 9.2 million tones of potatoes; this composed almost 6 percent of the global production Potato processing Industry in the Philippines Potatoes are used mainly as main dish in the restaurants and snacks in almost food servings on side dish such as fries, mashed potato and other cooked food. Around 66% of the potato production is consumed in the local market of the Philippines distributed as follows: 16.5% for processing as a by- product of potatoes; 45.5% are sold fresh in wet market as table potatoes. In the recent years, the processed products of potatoes available in the market are potato fries, mashed and other more. It has been a very lucrative business. This report presents data on the potato production and consumption trends in the Philippines. It analyzes Potato products consumption volume and values at market and category level them. According to Canadian Potato Chips Market in the Philippines, market profile to 2017 provides data on the Philippines Potato Market, providing marketers with essential tools to understand their own and their competitor’s position in the market. Thus allowing them to use the

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information to accurately identify the area where they want to compete in the future. A root crop native in the Philippines, potato is one of the most important crops in the country. Potato is the sweet tasting root vegetable or crop which belongs to the Conculvalcaea family. In Cordillera region, farmers cultivate the crop as alternative to rice areas the latter is difficult to grow. As potato is abundant in tropical countries like in the Philippines, it is good source of carbohydrates and has long been considered as staple as it is source of daily filling, especially in developing countries where resources such as materials are scare. In addition, in the province of Aurora where the primary industry is agriculture, product development projects of crops are much needed. Although most are coconut farmers in the province, potato production runs fourth in the major crops. However, because potato is just one of the many major crops produced in the province, appropriate information on production is lacking. Potato farmers are plagued not only with the lack of knowledge in its cultivation but also in product development, which can bring their families additional income. Based on the analysis, Potato Cravers make the product Potato De Rollo because company want to serve our valued customer a new variety of snack that can give new taste and healthy food that surely they will enjoy not only by adults but also by young individuals. Our company would like to introduce variety of

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flavors that consumers that would not normally taste of the potato food. Nowadays, people would prefer to eat new flavor of foods that has less nutritional content over conventional food that is said to be good for health lifestyle that is available in the market. Potato Cravers promote a healthy and innovative food snacks by introducing a new set of flavor of potato which is Potato De Rollo to the market which can give a benefit for consumers.

1.1 SWOT Analysis (Company and Product) STRENGTHS 

Affordable

WEAKNESSES 

New in the market

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Innovative

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Lack of Brand Awareness

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Availability of Raw Materials

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No experience in distribution of Potato de Rollo

OPPORTUNITIES 

Good Market

THREATS 

Natural Phenomena

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No classes

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Competition

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Imitation

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1.2 Survey Result

1. Profile of Respondents:

1% 12%

Age Bracket 15-20

87%

21-25 26-30

Most of our respondents answered that their age bracket are from 26-30 years old. Age 2125 got a 12%, followed by 1% for age 15-20 years old.

2. What is the age of the respondents?

Age 42% 58%

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Female Male

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Most of our respondents are female with a percentage of 58, while male respondents got 42%.

Daily Allowance 1% 63%

14% 22%

0-50 51-100 101-150 # of respondents

Most of our respondents answered that their allowance range from 101 to 150 a day with a percentage of 22, followed by 14 percent for the respondents who chose 51-100 as their daily allowance, while 0-50 only got 1%.

Female respondents whose daily allowance are worth 0-50 got a percentage of 3% and 2%, while Male got a percentage of 1.

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1. Do you eat potato?

2%

Do you eat potato?

98%

Yes No

Based on the result, 98% of the total respondents answered yes. 58% of these female respondents answered yes, they eat potato while for male 42% said yes.

Most of our respondent’s age range from 15-20 with 87%, while 12% for 21-25 years old, and 1% for 26-30 years old.

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2. How often do you eat potato?

How often do you eat potato? 11%

11% 46% 32%

Once a week Twice a week

Four times a week Others

Out of 100 respondents, 46% said they eat potato once a week. 32% answered twice a week, followed by 11% for those who eat four times a week and 11% answered others.

Female respondents who eat once a week got 30% while male respondents got 16%.

Female respondents who eat twice a week got 19% while male respondents got a percentage of 13.

Female respondents who eat four times a week got 6% while male respondents got 5% 8% of the female respondents and 5% for male answered others as their choice

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3. What potato dish do you prefer to eat?

What potato dish do you prefer to eat? 4%

3%

14% Mashed potato

79%

Fried potato Baked potato Others

Most of the respondents answered they prefer fried potato with a percentage of 79%, while 14% said they prefer mashed potato, followed by 4% for others and 3% said they prefer baked potato.

Female respondents said that they prefer mashed potato with a percentage of 11% while male respondents got 3%. For fried potato as their choice, female respondents got 42% while male respondents got 37%. For baked potato as their choice, female respondents got 2% while only 1 percent for male. Age 15-20 answered mashed potato with a percentage of 30. Age 21-25 got a percentage of 1.

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Age 15-20 answered fried potato with a percentage of 67. Age 21-25 got a percentage of 11 and 26-30 only got 1%. For baked potato, age 15-20 got a percentage of 3. Others whose ages range from 15-20 got a percentage of 4.

4. How much do you spend for your snack in a day?

How much do you spend for your snack in a day? 16%

11%

38% 20-40

35%

41-60 61-80 81-100

Most of the respondents answered 20-40 pesos with a percentage of 38% as their budget for a snack in a day. This is followed 41-60 pesos with a percentage of 35%. 61-80 pesos got a percentage of 16% while 11 percent said their budget for a snack in a day is worth 81-100 pesos.

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5. Does the product name “Potato de Rollo” catches your attention?

Does the product name "Potato de Rollo" catches your attention? 21% Yes

79%

No

Most of the respondents answered yes with a percentage of 79, while 21% said no, it doesn’t catch their attention.

6. Variables in a scale of 1-5. Where 5 are the highest and 1 is the lowest.

50 45 40 35 30 25 20 15 10 5 0

Very Dissatisfied Dissatisfied Average Satisfied Very Satisfied

Taste

Texture

Packeging

Presentation of the Product

Price

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The graph shows the percentage of the outcome feelings of the 100 respondents after they ate Potato de Rollo.

For the taste proportion, 41% feels very satisfied. 48% said they were satisfied. 8% felt average. 0% was dissatisfied and 3% feels dissatisfied.

In gender, 1% female and 2% male answered very dissatisfied. 3% female and 5% male answered average. For satisfied 30% answered female and 18% male. While 24% female and 17% male said they were very satisfied. For age, 15-20 has 2%, 1% 21-25 answered very dissatisfied.

In average 8% aging 15-20. Satisfied has 44% has an age 15-20 and 21-25 has 4%. For very satisfied 33% aging 15-20, 21-25 has 7% and 1% in 26-30.

Texture, 30%answered they were very satisfied. 50% answered they were satisfied. 20% said it was average.

In our packaging, 29% said they were very satisfied. 50% of them were satisfied. 20% is in the average.1% of the tally percentage was very dissatisfied.

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In the presentation of our product, 38% is very satisfied.43% said they were satisfied. 18% of them were average. 1% of the respondents were very dissatisfied Lastly, on our price survey, 41% is very satisfied. 40% of them were satisfied. 13% is average. 6% of them are dissatisfied.

7. How likely are you to purchase the product?

How likely are you to purchase the product? 0%

1% 1%

56%

42%

Very Likely Somewhat Likely Unlikely Somewhat Unlikely Very Unlikely

The graph shows how our respondents are likely to purchase the product. 42% of the respondents answered very likely. 56% is somewhat likely. 0% of them said unlikely. 1% is unlikely and 1% said very unlikely.

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8. Which of the following drinks do you prefer?

Which of the following drinks do you prefer? 11%

23%

16%

Shake Juice

50%

Tea Others

The graph shows what kind of drinks they prefer. The shake drink got 23%. Juice got 50%.While, tea got 11%. And 16% of respondents answered other.

9. What flavor do you prefer for your drinks?

What flavor do you prefer for your drinks? 12% 9%

16% Apple

19%

44%

Lemon Pineapple

Orange Others

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The graph shows what flavor of drinks that our 100 respondents prefer. The apple flavor got 16%. Lemon got 44%. Pineapple got 19%. Orange got 12%. And 9% of respondents answered other.

10. Would you prefer to purchase a combo meal?

Would you prefer to purchase a combo meal? 8% Yes No

92%

Out of our 100 respondents, 92% said yes, while 8% said no, they don’t prefer a combo meal.

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2. Area Coverage The manufacturing plant of Potato Craver’s Company is located at R. Papa St. Sampaloc, Manila.

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3. Consumer / Customer Our customers are basically belongs to Class C and D, students and young professionals ages 15-25 who are studying and working near the location site .

C. Demand and Supply Analysis 1. Total Potential Demand Total Population is 341,641 341,641 X

.03(NICHE) 10,249.23 (TPD PER MONTH)

/ 26 (WORKING DAYS) 394.2011538 (TPD PER DAY)

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2. Present Supplier / Competition PUREGOLD Address: Claro M. Recto Avenue, Manila

ULTRAMEGA SUPERMARKET Address :Narra St. Recto, MAnila

FOR POTATOES: the supplier of the potatoes that we will use in the production of Potato Cravers will be in Blumentritt and Divisoria Market in Manila. Address :Tabora St. Ylaya, Tondo Manila Contact # : 09157648938

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D. Projected Sales 1. Per Month Target Market x Production Cost x Working Days = Sales 394 x 10 x 26 = 102,440 2. In Volume and in Pesos In Peso 102,440 x 12 = 1,229,280 In Volume Target Market x Working Days 394 x 26 =10,244 E. Marketing Program Strategies 1. Practices of Competitors POTATO GIANT Product: Potato Bites/Potato Balls Price: 30-49Pesos Place: Concepcion Aguila Street Corner 1st St. Mendiola, Manila Promotion: Through Social Media POTATO CORNER Product: French Fries Price: 35-150Pesos Place: St. Thomas Square, MoraytaSampaloc, Manila Promotion: Through Social Media KFC Product: Mashed Potato Price: 30Pesos

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Place: 844 Nicanor Reyes St. MoraytaSampaloc, Manila Promotion: Through Social Media and TV Advertisement 2. Own marketing Program / Strategies 2.1 Pricing Strategy Potato Cravers sets up the price through mark-up pricing.

2.2 Distribution Strategy Retailer  Consumer

Distribution Strategy is an important aspect of marketing strategy because it is the process of moving the products from the firm to the consumers. Potato Cravers is a retailer because Potato Cravers sell the products directly to the consumers. Our company wants to serve the products directly so that Potato Cravers can preserve the freshness and the nutrients of Pot ato de Rollo. 2.3 Positioning Strategy Potato de Rollo has more nutrients compare to other simple potatoes that Potato Cravers see in the market. Our Company make sure that our Potato de Rollo’s is not just a typical

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potato like the other potatoes. The potatoes that we will use are fresh, the bacon and cheese helps to add taste to the product. Our product is very affordable and it is delicious and is made of high quality. 2.4 Promotions Strategy 2.4.1

Radio Commercial

“Sa unangtinginika’ymapapatikim, Sasarapnitoika’ymapaparolyo Potato de Rollo Angpotatongmagpaparolyosayosasarap” The Potato de Rollo radio advertisement states that when a consumer first encounters this product, the consumer tastes it forcibly. And after the eating of Potato de Rollo, the consumer will feels satisfied.

2.4.2

Video Commercial In the commercial of “Potato de Rollo”, there are two students who are chatting at each other which is the target market of Potato Cravers Company. On that scene, the boy asks the girl if she wants to eat the Potato De Rollo but the girl responds that she doesn’t know what that is because

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the girl notices that it is new in industry. Alongside, there is a scene featuring the product. In the last scene, the boy goes to the girl’s place to give his Potato de Rollo. After the girl taste it, she feels satisfied which is shown in the scene. The reason why a new product has a commercial: The commercial gives a: • Humor that definitely the most-ft used word to describe what makes a commercial memorable. • Other words that came up a were “tagline” and jingle” • Many mentioned an iconic-type character as being an integral part of making a commercial stand out front ha pack. • Another person took it a step further and look into the heart of the advertising matter in Advertising, especially TV commercials can get customers in the door only one time. After that, it’s up the seller to build trust and loyalty.

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2.4.3

Brand Jingle “Ito angpotatong may 40atednasaya Potatongsiksiksakeso may bacon pa Mapaparolyokasasarapnglasa Halina’tmagpotato de rolyo nan a kayo”

2.4.4

Social Media Social Media nowadays plays a great influence in our lives. Potato Cravers want to keep in touch with its target market. We will use the social media in order to communicate and reach our target market.If we want to get information about products or services from companies we can use the social media in order to obtain information. Potato Cravers will use the Social Media so that consumers can keep in touch and get more information about the products we’ll sell and as well as the company.

2.4.4.1 Facebook

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Our Facebook fan page is Potato De Rollo.

Potato Cravers has a Facebook Fan Page where people can see the background information about the company. Our company used this networking site because most Filipinos have a Facebook account especially students and teenagers. In order to know their feedbacks and comments about our product they can interact with us by leaving a feedback or comment/s. From this, our company will know what aspect needs an improvement.

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2.4.4.2 Twitter

Our Twitter account is Potato Cravers Potato Cravers has a Twitter account where customers can express their feelings towards our product. We used this networking site so that people can easily interact with us and use a hashtag #PotatoCravers. By searching our company name @PotatoCravers customers can tweet or send direct message to us.

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2.4.4.3 Instagram

Our Instagram account is Potato Cravers. As of now we have 700 followers. Potato Cravers has an Instagram account where people can see the latest pictures of our product. Our company used this networking site so that our customers can be updated with our promos and if we want to add more flavors on our product.

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2.4.4.4 Website Our website name is Potato Cravers We used website because in here, our customers can order directly to us. The website has all the information needed like the history, product pictures, general information, delivery methods and they can also leave a comment. 2.4.5

Season’s Promo In every business, it is important to have seasonal promos. Having a theme will provide an interest to every customers. Turning this into a promotion will add more value. Potato Cravers have 4 seasonal promos namely Christmas season promo, Mother’s day promo, Father’s day promo, and Valentine ’s Day promo.

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2.4.6

Opening Grand Launch Plan For the grand opening of Potato Cravers, For the first 20 customers that will purchased 3 pieces of Potato de Rollo, they will get 1 for free.

Marketing Selling Expenses Advertising expense

Price per set/pieces

Total

Flyers POSTERS

500pcs x 3pesos 30pcs x 50pesos

1500.00 1500.00

TOTAL

3,000.00

IV. PRODUCTION / OPERATIONS PLAN A. Technical / Production Description The technical plan of Potato Cravers compromises the Product Description, Product Processes, Equipments& Materials, Plant Location and Plant Layout. In

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this area, it discusses how the product Potato de Rollo is produced, what ingredients and equipments’ are needed. Potato De Rollo’s production is done by using masher, frying pan and electric/gas range. There are about two persons to do the product. B. Production Operations Process 1. Step by Step Procedure Step 1

Picture

Description Peel

and

wash

the

potatoes.

2

Add 2 tbsp of salt and boil.

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3

Mashed the potatoes and add all purpose

4

Put cheese inside the potato and then roll it until it becomes roundshape.

5

Roll the potato in the egg and in

bread

crumbs

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6

Wrap the bacon around the potato and secure with toothpick.

7

Fry

it

until

golden

brown, and use the strainer to filter the excess oil.

2. Durations per Step per Batch STEP NO. Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

PROCEDURE Brush, Wash and peel the potatoes well. Boil the potatoes and add salt. Mash the potatoes and add all-purpose flour. Put cheese inside the potato and then roll it until it becomes round-shaped. Roll the potato in the egg and bread crumbs Wrap the bacon around the potato and the secure it with toothpick.

DURATION 5 minutes 25 minutes 10 minutes 3 minutes 1 minute

1Minute

Fry it until golden brown, and use the 3-4 Minutes strainer to filter the excess oil.

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3. Labor and Machine Requirement per Step Machinery

Picture

Laborer

Procedure

Labor 1

First,clean

Peeler

the

potatoes and peel it, Then boil it .

Labor 1 Masher

Second, Mash the boiled potatoes.

Knife

Labor 1

Third,

Slice

the

cheese into cubes.

Measuring Spoon

Fourth, Labor 1

measure

the ingredients like mashed

potato,

flour,

bread

crumbs. Mixing bowl

Labor 1

Fifth,

roll

the

measured mashed potato

into

scrambled egg and roll

it

again

to

bread crumbs. After that cover it with bacon.

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Fryer

Labor 2

Then fry it. And wait until it turns into golden brown.

Tong

Labor 2

Get the Potato De Rollo using tong.

Plate

Labor 2

Lastly, arrange it in a plating and serve it.

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C. Production Schedule 1. Monthly Schedule Operating Hours

10 hours

Operating Days

Monday to Saturday 9am – 7pm

Total Production Per Day

400pcs

Total Production Per Week

2,400pcs

Total Production Per Month

10,400pcs

Total Customers Per Day

394

Total Customers Per Month

10,244

Total Customers Per Year

122,928

D. Labor Requirement 1 person in mashing the potato, making the Potato de Rollo 1 person in frying andserve the products

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E. Machinery / Equipment Requirement EQUIPMENTS

PRICE

USES

MASHER

P100.00

Masher is used to mash the boiled potato.

KNIFE

P120.25

Knife is used for slicing the bacon, cheese and other ingredients.

CHOPPING BOARD

179.80

Chopping Board is used to place the ingredients for slicing like the bacon, oreo and cheese.

PLATE

P30.00

Plate is used to put all the sliced ingredients on it like the bacon, cheese and oreo in different plates.

MIXING BOWL

P50.00

Mixing Bowl is a bowl used for mixing of all the ingredients like the mashed potato and all-purpose flour. It can also used to put the scrambled egg and bread crumbs in a separate bowl.

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MEASURING SPOON

P79.95

Measuring Spoon is used to measure the ingredients like salt and all purpose flour.

PEELER

P20.00

Peeler is used to peel the potatoes.

TONG

P49.75

Tong is used for the purpose of cooking the food/products.

FRYER

P4,500

Fryer is used for frying the products.

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F. Raw Materials POTATO

BACON

P30/kilo

P175/500grams

CHEESE

P43.95/165grams

ALL PURPOSE FLOUR

SALT

OREO

P24.55/200grams

P8.50/150grams

P34/137grams

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BREAD CRUMBS

EGG

TOOTHPICK

P27.15/230grams

P4.50/pc

P10/100pcs.

Palm Oil 177/2 liters

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G. Plant Layout/Factory Layout

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H. Store Layout

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I.

Waste Disposal System In our manufacturing plant, we have a system of garbage disposal, the THREE BIN SYSTEM. In this system, were going to use three colors of garbage bin. GREEN, YELLOW, BLACK. In the place designated for garbage, GREEN bin would be for the Dry recyclable wastes such as Plastics (bottles, containers, and wrappers),Metals(Aluminum and steel cans) and Paper & Cardboards(different kinds of paper, paper bags, boxes, cardboard packaging, catalogues, newspapers and magazines.) YELLOW bin for the Organic Wastes (Food/Kitchen waste.), this includes, Food scraps, food soiled paper and garden waste. GREY/BLACK bin would be for the Residual Wastes, or the remaining wastes from the BLUE and BLACK bins. This system is designed to segregate garbage, also to avoid food contamination. Potato Cravers Company is paying fees to the City Hall of Manila for the garbage collection which is the Leonel Waste Management. There will be a daily collection of garbage to avoid harmful effects to people as well as to maintain cleanliness in our store and in the entire community.

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J.

Quality Control System •

POTATO: clean the potato to remove dirt using a food brush and water. To

maximize the water, we will use the basin containers 1, 2,3 and we made sure that were using fresh potatoes that doesn’t have dark spots and we assure that after boiling the potato it will still look fresh. •

BACON: make sure that it is preserve well for the freshness of the meat.

Suppliers must have an of expiry date. •

CHEESE: make sure that expiration date should be at least a year and a half

gap in the present year. Suppliers must present the proper tagging of expiry date. 

Potato de Rollo can last until 1 ½ day from the day it was purchased

K. Production Cost 1. Total production per year 4.9 x 394 target market = 1,930.6 1,930.6 x 26working days = 50,195.6 50,195.6 x 12 = 602,347.3

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2. Production Cost per Unit INGREDIENTS COST

UNIT

OF COST UNIT QTY. PER

MEASURE

PER

COST

PER

ING.

PER

MEASURE

MEASURE

UNIT

POTATO

30

1000grams

0.03

30g

09

BACON

87

250grams

0.35

2g

0.7

CHEESE

10.3

35grams

0.3

1g

0.3

SALT

5

150grams

0.03

0.5g

0.015

BREAD

27.15

230grams

0.12

2g

0.24

EGG

4.50

6ml

0.75

1.25ml

1

PALM OIL

28.35

250ml

0.1134

6.25ml

0.71

DIP

22

320grams

0.07

5g

0.35

CRUMBS

TOTAL

4.15

+ PACKAGING

0.75

TOTAL

4.9

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V. Organizational Plan A. Legal Form of Business



Partnership

 Each of one of the partners will receive a monthly salary inclusive of SSS, Phil Health, and Pagibig.

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B. Organizational Structure Samuel Salvador GENERAL MANAGE Samuel Salvador GENERAL MANAGER

SAMUEL SALVADOR GENERAL MANAGER

MARLA JOSUE ACCOUNTING MANAGER

ANGELICA SY SALES /MARKETING MANAGER

RAYMON JUNIO ADVERTISING MANAGER

DANICA ENOVERO PRODUCTION MANAGER

RAMONCHIE ESPADERO HUMAN RESOURCEMANAG ER

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C. Qualification of Officers

A. Position Information Position Title: General Manager Immediate Supervisors: Subordinates: All the managers of the departments Department/Section: Executive Department

B. Position Requirements 1. Job Summary The general manager will enforce and uphold the cooperative’s credit policy. Authorized to perform the overall strategies of the company, implementing company’s goal, controlling the work force, examines the budgets and ensuring that all the resources are in good condition and has a back up plan in case of emergency to achieve the goal of the company.

2. Major Responsibilities • To ensure the day-to-day operations of the company running effectively • To develop and implement effective systems of administration, finance and information record keeping. • To provide relevant information to individuals and groups and to ensure that good standards are maintained.

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• Develop and implement strategies for overall direction of the company. •To ensure that all information is effectively recorded and shared • To ensure that financial records are accurate and up to date using manual and computerized systems • Look over the investments funds and manage issues and problems • Implement harmonious relationships with the society, suppliers, investors and customers • Direct the organization’s financial goals, objectives and budgets • To create, maintain and update the membership database • To maintain and update information on the website • To attend Board meetings • To assist in the production and distribution of regular news bulletins for the membership • To process and update information gathered from research surveys and feedback • To oversee the operation of membership services as and when specified by the Chairperson • To supervise the staff members in the office and ensure that best practice in Human Resource Management is implemented particularly in relation to policies and procedures • To be flexible in approach to work and undertake any other duties that may be required with the remit of the organization

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C. Job Specifications Education • Graduate of any four year degree course or has a masteral degree in business course • Degree/Diploma in recreation and leisure management Experience -

Minimum of five years managerial experience

Competencies • Leadership and managerial skills • Good communication skills • Information technology skills • ECDL or similar qualifications and proficient at using a range of IT packages including Word, Access, Excel and Sage • Efficient and effective at devising and implementing new office systems • Excellent communication skills and strong customer relations focus • Excellent organizational skills and motivated to work on own initiative • A constructive, positive and progressive attitude to working as part of a team • An interest in sport is desirable but not essential • Experience of working with voluntary, community and/or statutory sector

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POSITION INFORMATION Position Title: Marketing/Sales Manager Immediate Supervisor: General Manager Subordinates: Marketing Staffs Department/Section: Marketing Department

B. Position Requirements 1. Job Summary Provide the planning and leadership to the Marketing Department by ensuring that the appropriate structures, systems, competencies and values are developed in order to meet and exceed the goals of the Marketing plan. They are also responsible for managing marketing, advertising and promotional staff and activities at a company or organization. Takes steps measure, enhance and enrich the position and image of a company through various goals and objectives and take calculated risks.

2. Major Responsibilities: • Use sales forecasting and strategic planning to increase the sales and profitability of products • Researching and reporting on external opportunities • Understanding current and potential customers • Initiate market research for the development of new product or service

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• Managing the customer journey (customer relationship management) • Developing the marketing strategy and plan • Developing guidelines • Making customer focused decisions • Develop pricing strategies • Evaluate the financial aspects of product development • Manage advertising opportunities

C. Job Specification Education • Have bachelor’s degree in marketing or a related field required • Master’s in Business or Marketing Preferred Experience • 10 years of progressively more responsible positions in marketing, preferably in a similar industry in two different firms. • Experience supervising and managing a professional staff of seven. Competencies • Effective communication skills • Computer skills • Leadership skills • Negotiating skills

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POSITION INFORMATION Position Title: Finance/Accounting Manager Immediate Supervisor: General Manager Subordinates: Accounting Staffs Department/Section: Accounting Department B. Position Requirements 1. Job Summary The Finance/Accounting Manager is responsible for all areas relating to accounting functions and financial reporting. This position will be responsible for daily, weekly and monthly accounting tasks and activities. The Finance/Accounting Manager is also expected to make recommendations to the CEO for developing and maintaining accounting principles, practices and procedures to ensure accurate and timely financial reporting. The Finance/ Accounting Manager supervises one staff accountant. This position must meet tight deadlines and a multitude of accounting activities including general ledger preparation and financial reporting. Furthermore, extensive care must be taken to ensure that financial practices are in line with all statutory legislation and regulations. Financial managers may also be known as financial analysts or business analysts.

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2. Major responsibilities: • Apply a thorough understanding of the financial reporting and general ledger structure • Ensure an accurate and timely monthly, quarterly and year end close • Take the lead to complete the quarterly NCUA Call Report • Prepares monthly schedule of accounts and receivable • Ensure the timely reporting of all monthly financial information • Initiate budget and forecasting activities • Verifies daily cash position reports to secure proper implementation of cash handling • Monitor and analyze department work to develop more efficient procedures and use of resources while maintaining a high level of accuracy • Interface with other departments to verify transaction report data and issues • Advise staff regarding the handling of non-routine reporting transactions • Respond to inquiries from the CEO regarding financial results, special reporting requests and the like • Checks and counts petty cash fund handled by accounting representatives • Work with the retained CPA firm to ensure a clean and timely year end audit • Ensure all financial reporting deadlines are met • Assist in development and implementation of new procedures and features to enhance the workflow of the department Provide training to new and existing staff as needed

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• Work with direct report to establish performance goals and objectives for each year and monitor and 

Advise on the progress to enhance the professional development of staff

C. Job Specification Education • BA/BS in Accounting or Finance or Business Management • CPA, preferably MBA ( Masters of Business Administration ) Experience • Five to seven years prior supervisory experience in the accounting/financial reporting areas. Experience working in a credit union or other consumer-oriented financial institution is required. Competencies • Must be PC proficient and. Experience with large automated accounting system Must have strong experience with Microsoft Excel and Word. Interface with Similar core processing or similar system required. • Strong verbal and written communication skills. • Strong interpersonal, supervisory and customer service skills required. • Ability to multi-task, work under pressure, meet deadlines and be able to thrive in a fastpaced work environment. Position Information

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Position Title: Human Resource Manager B. Position Requirements 1. Job Summary The Human Resources Director guides and manages the overall provision of Human Resources services, policies, and programs for the entire company.. The HR Manager proactively advises on best practice HR and where necessary takes a hands-on role in dealing with case work. The HR Manager supports the people management functions that underpin the business culture. They are also responsible for the benefits, compensation, reward, professional growth and improvement of all the members of the organization.

2. Major Responsibilities: • Benefits and Compensation • Recruiting and Hiring • Plan and conduct new employee orientation to foster positive attitude towards organization objectives • Compliance and Protection • Negotiate bargaining agreements and help interpret labor contracts • Employee Development • Represents organization at personnel-related hearings and investigations • Internal Communication

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C. Job Specification Education • Bachelors degree in Human Resource, Business or other related field • Masters in Business or Human Resource management or a related Experience • 7-10 years of progressively more responsible positions in human resource • Experiencing supervising and managing a professional staff Competencies • Communication/Interpersonal skills • Teamwork skills • Leadership skills • Strong effective communicator in writing, business presentations and in interpersonal communication. • Highly developed, demonstrated teamwork skills. • Demonstrates a high degree of confidentiality and unusual common sense. • Able to direct the efforts of a team of diverse human resources professionals. • Demonstrated ability to increase productivity and continuously improve methods, approaches, and departmental contribution while being cost-sensitive.Commitment to continuous learning. • Expert in employment law and employee relations and communication.

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• Demonstrated ability to see the big picture and provide useful and strategic advice and input across the company and on the senior executive team. • Ability to lead in an environment of constant change. • Experience working in a flexible, employee empowering work environment. Structured or large company experience will not work here. • Familiarity and skill with the tools of the trade in human resources including HRIS, Microsoft Office suite of products, file management, and benefits

Administration. • Experience in organization development and change management. • Experience in multiple locations and globally is a plus.

Position Information Position Title: Production Manager Immediate Supervisor: General Manager Subordinates: Production Supervisor and Assistant Department/Section: production

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B. Position Requirements 1. Job Summary A production manager is involved with the planning, coordination and control of manufacturing processes. They ensure that goods and services are produced efficiently and that the correct amount is produced at the right cost and level of quality. Major Responsibilities: 

Plan a production schedule for the job



Implement and control the production schedule



Make decisions about equipment use, maintenance, modification and procurement



Work out and implement standard operating procedures for production operations



Ensure

efficient

collaboration

between

relevant

departments

including

procurement, distribution and management 

Determine and implement improvements to the production process



Monitor and set quality standards of product



Analyze production and quality control to detect and correct errors.

C. Job Specification Education

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

Bachelor’s degree - Business Administration, Management, Engineering and Industrial Technology

Experience 

Experience in production and manufacturing process and techniques



Machines and tools handling

Competencies 

Computer skills



Critical thinking and problem solving skills



Planning and organizing skills



Communication skills



Negotiation skills



Attentive to details

Position Title: ADVERTISING MANAGER A. POSITION REQUIREMENTS 1. Job Summary Advertising managers are in charge of promoting, marketing and advertising a company’s products. They maintain close working relationships with all departments within a company as well as working intimately with the marketing department.

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2. Major Responsibilities 

To provide information to the consumer about the company’s products and services

3. Job Specifications Education 

Must be a graduate of Business Administration Major in Marketing or Mass Communication major in Journalism courses

Experience 

At least 2-5 years experience in the field

Competencies 

Leadership and Multitasking skills



Creative Skills



Good interpersonal skills



Communication skills

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GANTT CHART DURATION

1. Register and obtain Business licenses and permits.

1-31 Days of Jan. and 1-28 Days of Feb.

2. Constructing store

1-7 Days

the

3.Planning of activities

1-31 days

4. Implementing the plan

1-31days

5. Purchasing supplies.

the

1-28days

6. Placing the equipment and supplies

1-28days

7. Start of operation

1-31days

8. Purchasing the raw materials

1-31days

9. Production Potato De Rollo

of

1-30days

10. Opening and Selling

1-31days

11. Dealing customers

1-31days

with

12. flyers and posters 13. promos.

Planning

14. Implementing promos.

JAN

FE B

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

1-30days of

1-31days

of

1-30days

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NOV

DEC

.

15. Maintaining operation

the

16. Planning of Activities

1-31days Dec & continuing

F. Administrative Expense Expenses

Amount

Salaries Expense

124,800.00

Rent

60,000.00

Supplies (office) Supplies (kitchen)

2,973.72 869.75

Utilities Expense

7,800.00

Permit and license

3,000.00

Advertising Total:

12,000.00 211,443.47

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V. FINANCIAL PLAN A. TOTAL PROJECT COST Total project costs are allowable direct and indirect costs incurred by the institution to carry out approved project or activity. The total project cost of POTATO CRAVERS includes the Operating Expenses amounting to a total of 211,443.47 ( including the rent, supplies, light and water, gas and oil, taxes and licenses and advertisement expenses ), Salaries expense. Expenses

Amount

Cost of good sold

451,584.00

Salaries Expense

124,800.00

Rent

60,000.00

Supplies (office) Supplies (kitchen)

2,973.72 869.75

Utilities Expense

7,800.00

Permit and license

3,000.00

Advertising Total:

12,000.00 663,027.47

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B. Source of Financing One of the most important issues facing all business whether a business is in the start-up phase or well-established, it is the obtaining of appropriate levels of financing. One of the Partner contributed 75,000 and other partners has a contribution amounting to 45,000 from our savings and the 300,000 was borrowed from the bank.

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C. Projected Financial Statement 1. Projected Cash Flow Statement

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2

. Projected Income Statement

3. Projected Balance Sheet

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Note: Owners equity is divided into percentage by 6 partners whom the General Manager has 25 % of the total shares while the 5 partners have 15% of the total shares.

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Note: Owners equity is divided into percentage by 6 partners whom the General Manager has 25 % of the total shares while the 5 partners have 15% of the total shares. Partners

Year 1

Year 2

Year 3

Year 4

Year 5

General

125, 000.00

125, 000.00

125, 000.00

125, 000.00

125, 000.00

Partner 1

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Partner 2

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Manager

Partner 3

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Partner 4

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Partner 5

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

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D. Profitability Indices 1. ROI = Earnings – Initial Investment / Initial Investment 500,000 / 296,318.37 = 1.69 ( I year and 7 months)

2. Payback Period = Initial Investment / Cash Inflow per Period = 0.87 3. Net Income Ratio = Net Income / Net Sales 206,318.37 / 998,400 = 0.27 4. Break-even Point = X = FC / P – V Fixed Cost – 124,800 ( Salaries Expense) Price – 10 Variable - 4.9 124,800 / 5.1 = 636,480

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E. List of Assumptions Used 

All transactions are on cash basis



Unit sold increases by 10% every year



Unit selling price increase by 10% at the start of year 4



Ending inventory for the year should be 20% of the estimated unit sold of the following year



Cost per unit increases by 5% at the start of 3rd year



Expenses, other than salaries and wages, increases by 2% every year due to inflation



Salaries and Wages increases by 5% every year at the start of year 4



The partners divide all profit

Note: Owners equity is divided into percentage by 6 partners whom the General Manager has 25 % of the total shares while the 5 partners have 15% of the total shares.

Partners

Year 1

Year 2

Year 3

Year 4

Year 5

General

125, 000.00

125, 000.00

125, 000.00

125, 000.00

125, 000.00

Partner 1

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Partner 2

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Partner 4

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Partner 5

75,000.00

75,000.00

75,000.00

75,000.00

75,000.00

Manager

Partner 3



Income Tax Rate is 30%

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F. Schedules 1. Projected Sales for the year 2015 Per Month Target Market x Production Cost x Working Days = Sales 394 x 10 x 26 = 102,440 In Peso 102,440 x 12 = 1,229,280 Projected Volumes Target Market x No. of Operating Days 394 x 26 = 10,244 5. Projected Cost of Production/ Operations Expenses

Amount

Cost of good sold

451,584.00

Salaries Expense

124,800.00

Rent

60,000.00

Supplies (office) Supplies (kitchen)

2,973.72 869.75

Utilities Expense

7,800.00

Permit and license

3,000.00

Advertising Total:

12,000.00 663,027.47

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5. Projected Cost of Gold Sold INGREDIENTS COST

UNIT

OF COST UNIT QTY. PER

MEASURE

PER

COST

PER

ING.

PER

MEASURE

MEASURE

UNIT

POTATO

30

1000grams

0.03

30g

09

BACON

87

250grams

0.35

2g

0.7

CHEESE

10.3

35grams

0.3

1g

0.3

SALT

5

150grams

0.03

0.5g

0.015

BREAD

27.15

230grams

0.12

2g

0.24

EGG

4.50

6ml

0.75

1.25ml

1

PALM OIL

28.35

250ml

0.1134

6.25ml

0.71

DIP

22

320grams

0.07

5g

0.35

CRUMBS

TOTAL

4.15

+ PACKAGING

0.75

TOTAL

4.9

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6. Schedule of Material Purchases

MONTHLY RENT EXPENSES MONTH JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL COST 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

MONTHLY GAS EXPENSES MONTH JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL COST 500 500 500 500 500 500 500 500 500 500 500 500 6,000 MONTHLY OIL EXPENSES MONTH JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL COST 150 150 150 150 150 150 150 150 150 150 150 150 1,800 MONTHLY SALARY EXPENSES (2 WORKERS) JAN 10,400

FEB 10,400

MAR 10,400

APR 10,400

MAY 10,400

JUNE 10,400

JUL 10,400

AUG 10,400

SEPT 10,400

OCT 10,400

NOV 10,4000

DEC 10,4000

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TOTAL 124,800

.

7. Projected Administrative and Selling Expenses Expenses

Amount

Salaries Expense

124,800.00

Rent

60,000.00

Supplies (office) Supplies (kitchen)

2,973.72 869.75

Utilities Expense

7,800.00

Permit and license

3,000.00

Advertising Total:

12,000.00 211,443.47

The College of Accountancy & Business envisions itself to be a leading institution for business studies

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.

The College of Accountancy & Business envisions itself to be a leading institution for business studies

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