Summary of the Project I. Name of the Project: KDJ Creamery The business proponent came up with a title JDK Creamery as its name of the business. “JDK” stands for the owner’s name and the word “Creamery “that is related to a certain type of dessert that is combined with a popular Filipino yeast-raised bread will be its main selling product. And will target potential customers who want to experience on desserts. II. Location 1. TerraPrime Brgy. Tatalon Quezon City 2. Location is one of the major factors to be considered in starting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to th eir market needs. Figure 1. Location of the Store III. Brief Description of the Project
Transcript
Summary of the Project
I. Name of the Project: KDJ Creamery
The business proponent came up with a title JDK Creamery as its name of the business. “JDK” stands for the owner’s name and the word “Creamery “that is related to a certain type of dessert that is combined with a popular Filipino yeast-raised bread will be its main selling product. And will target potential customers who want to experience on desserts.
II. Location
1. TerraPrime Brgy. Tatalon Quezon City2. Location is one of the major factors to be considered in starting up a business. It must be
assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs.
Figure 1. Location of the Store
III. Brief Description of the Project
JDK Creamery sell desserts in which cannot be found in normal stores or restaurants. Our main product is served hot and cold at the same time. It’s a bun filled ice cream deep fried in cooking oil and becomes a golden hot crispy sandwich filled with cold creamy ice cream goodness that the chef calls “CRISPY CREAM DELIGHT”. It comes with a variety of flavors in which the customers can choose. From Strawberry, Double Dutch, Chocolate, Vanilla to Filipino flavors such as Buko Pandan, and Ube macapuno. Our aim is to create an ideal dessert which can be experienced on both worlds (hot & cold) that every people can enjoy.
IV. Project Summary
1. Market Feasibility
This study justifies the surveys conducted and their results. Based from the information gathered and studies conducted, projection of the demand, supply and sales for the first five years of operation is based on the different factors like the population growth, market acceptability, capacity to supply and other factors. This study is feasible because the target population is willing and is capable of availing our products and services. The firm also considers factors like our competitors and prevailing prices of the suppliers that will affect our prices. Based on our demand supply analysis, the firm found out that we can supply the available market based on our production capacity.
2. Technical Feasibility
The main product that the firm is going to offer is a frozen dessert and is deep fried in less than a minute. Other products considered are donuts and milk shakes. The company can also offer Halo-Halo as a seasonal product which can only be served during summer or based from demand. All ingredients will be highly nutritious and will be picked carefully. Machineries and equipment has been chosen for the production of the products and their costs are enumerated as well as other supplies with their corresponding cost. The project is feasible based on the different aspect that the firm consider in operating this business.
3. Management Feasibility
JDK Creamery is a well-organized thought out business partnership. Mangers will handle day-to-day operations and will be in charge of 5 clerks for minor operations. At the moment, the business only has 8 employees but as the business grows, new employees will be hired. Through a strategic organizational structure, there will be a smooth operation of the business and also based on the technical knowhow of the managers, therefore, this business is feasible in this aspect.
4. Financial Feasibility
The initial investment of JDK is P 6,000,000.00 which came from the partner’s contribution to establish this business. There are no other sources of capital aside from our contribution. The return of asset will be .15 at first year and the payback period will be exactly 2.83. Therefore, our financial study is feasible.
5. Socio-Economic Impact
All businesses will be a great help for the growth and development of the country’s economy. All of these are only possible if all of the economy’s resources will be put to good use and all of its firms will be responsible enough to perform their tasks and obligations to their respective customers, community and the government responsibly.
JDK Creamery will help the economy by means of paying taxes through all of its earnings. With this, the government can perform its funtion by providing continous support for the business industry, providing projects for the community such as building infrastructures, public hospitals, strengthening arm forces for the security and protection of the countrymen and other indispensable projects that will benefit the people.
Background of the Study
I. Brief background of the Study
The study is about a dessert that the ideas of creating its main ingredients that came from a different country will be able to compete itself or even manage to be a part of the Filipino culture in eating desserts. The firm highly emphasize the taste, presentation and appearance of the product and not just the experience of eating it.
Filipinos appreciate new kinds of taste. They tend to be adventurous when it comes to food especially if the food has variations. They tend to compare food that they originally know the taste of and test the new ones that they not know of, and try to create an even more profound taste or style of cooking. That’s why the firm have so many variations or specialties that every province have.
Filipinos are naturally hospitable and food is the basis of their social life. Poor or not, they always have time to prepare food and serve it to their guests. And in celebrations, everyone they know, or in some occasions strangers can visit their homes and eat the food that is prepared for the banquet. They call it fiestas or festivals in honor of their valued patrons and saints.
II. Objectives of the Study1. To be able to produce a dessert for a customer that can eat hot and cold at
the same time2. To be able to present a food product that can be stylish and enjoyable to eat3. To increase the level of awareness that creativity is very important to food
industry4. To line up with other competitors using our unique approach in serving
desserts5. To offer an affordable but delicious and a satisfying dessert
III. Operational Definition of terms1. Crispy Cream Delight - Deep Fried Ice Cream Sandwich2. Ice cream Sandwich – Ice cream covered with sandwich buns
IV. Scope and Limitations of the study
The study will tackle about the new experience of serving dessert or a delicacy which is new to the country and how well they will respond to it. To be able to be accepted as a major choice for potential customer’s accepted not only its taste, but its new way of serving it. Products are only limited to those who have problems with sweets and some illness male and female that can have a huge effect on the customer’s health.
Market Study
Marketing is a system of business activities designed to plan, price, promote and distribute want-satisfying goods and services to present to potential customers. It is considered as the lifeblood of every business transactions because it is a strategic way on how to cope up to the needs and wants of the costumers, finding opportunities regarding it, introduce and market the product, achieve customer’s loyalty and patronage.
This aspect includes the following topics: demands, supply, demand and supply gap analysis, marketing programs and the projected sales. The objective of the proposed project is to delight the customers, not just by meeting their expectation but rather exceeding and going extra mile. Moreover, it’s about profit ability. Marketing aspect serves as the basis of the financial section through the projected demand.
There can be no discussion of profitability or of the other aspects of the study; if in the first place, there is no demand or market. Every business is practically aspiring for productivity but practically in order to last in the business world the first thing to take into consideration is the target market. The costumers will be the key factor to achieve the objectives of the organization. Finding opportunities and spotting the right market are both important in establishing a business. Knowing customer’s demand and supplying them right products at reasonable prices.
I. Objectives of the Study
1. To analyze the market demand and supply of the business,2. To define the target customer of the business through market segmentation3. To determine the marketing strategies to be applied in the business4. To determine the feasibility of the business5. To determine the range of the business6. To analyze and understand the complexities of the restaurant business.
II. Methodology
The Group have conducted a survey and among those respondents and their opinion. The survey was distributed along the area of Brgy. Tatalon Quezon City. And for the projection the straight line statistical method was used.
The Group also used a formula to obtain the population growth rate in Brgy. Tatalon Quezon City.
V = PopulationVlatest (2010) = 58987Vpast (2000) = 45070
( (Vpresent−Vpast )Vpast ) x100 ( (58987−45070 )
45070 ) x100 = 30.8%
30.8% Divide by 10 years gap = 3.08% is the annual population growth rate
III. Demand
The demand is essential to every type of business there is. This is the answer to every customer’s wants and needs; basically the lifeblood of a business. Knowing the demand will help us to determine the trend for our products. Analyzing the demand thoroughly will give the projection of the total number of quantity of each product that the firm is going to produce daily, weekly, monthly and annually.
1. Consumption for the past yearsSince there is no statistical data recorded in National Dairy Authority and
DTI regarding the demand for ice cream, past demand is computed by getting the target population in Brgy. Tatalon Quezon City for the year 2009 – 2014 multiplied by market acceptance which is obtained by getting the percentage of respondents who are willing to try the deep fried ice cream sandwich which is 96% and multiplied to the annual population. It increases annually based on the annual growth of population which is 3.08%.
Year Population Market Acceptance Past Demand
2005 50,445 81.6% 41,163
2006 52,048 81.6% 47,103
2007 53,702 81.6% 48,600
2008 55,409 81.6% 50,145
2009 57,170 81.6% 51,739
2010 58,987 81.6% 53,383
2011 60,804 81.6% 55,028
2012 62,677 81.6% 56,723
2013 64,607 81.6% 58,469
2014 66,597 81.6% 60,270
Table 1: Past Annual Demand
2. Major Consumers of the Product
Market Segmentation
Geographic
Location : Terraprime Climate : Wet and Dry Barangay : Tatalon Region : NCR City : Quezon City Density of the Area : Urban
Demographic
Age : 13 to 60 years old Gender : Male and Female
Psychographic
Personality : Curious Lifestyle : Outgoing and Adventurous
3. Projected Demand
Year PopulationMarket
AcceptanceProjected Demand
2014 66,597.00 81.6% 60,674
2015 69,911.43 81.6% 62,543
2016 71,706.33 81.6% 64,412
2017 73,501.22 81.6% 66,281
2018 75,296.12 81.6% 68,151
2019 77,091.02 81.6% 70,020
Table 2: Statistical Straight Line Projected Demand
IV. Supply
Based from the percentage of the survey that the people are already eats ice cream, the group can now determine our supply
1. Supply for the past years
Year PopulationMarket
AcceptancePast Supply
2005 50,445 23.8% 12006
2006 52,048 23.8% 12387
2007 53,702 23.8% 12781
2008 55,409 23.8% 13187
2009 57,170 23.8% 13606
2010 58,987 23.8% 14039
2011 60,804 23.8% 14471
2012 62,677 23.8% 14917
2013 64,607 23.8% 15376
2014 66,597 23.8% 15850Table 3: Past Annual Supply (Assumption)
2. Projected Supply
Year Population Projected Supply
2,015 69,911.43 16,211
2,016 71,706.33 16,638
2,017 73,501.22 17,066
2,018 75,296.12 17,493
2,019 77,091.02 17,920
Table 4: Statistical Straight Line Projected Supply
V. Demand/Supply Gap Analysis
This is to determine the Creamery’s market share. The gap or the unsatisfied market is obtained by subtracting the projected demand to the projected supply which shows the available market for street foods. It also shows the number of persons whom the company needs to supply to answer their demand for street foods. The firm now shows the gap for every product using the data from projected demand and projected supply.
Year Demand Supply Gap
2014 60,674 15,850 44,824
2015 62,543 16,211 46,332
2016 64,412 16,638 47,774
2017 66,281 17,066 49,215
2018 68,151 17,493 50,658
2019 70,020 17,920 52,100
Table 5: Demand, Supply and Gap
VI. Projected Sales/Market Share
All businesses must determine their market share for it will serve as the basis of their marketing strategies of their establishment. It will be the defining extent of market that the firm needs to satisfy.
The group concluded that our daily capacity is 200 persons per day to supply per day and 72000 annually.
Given the Market Share, 15.5% and the annual growth rate of 5% which is provided by the promotional tactics provided by the business, the group can now determine the projected market share.
People today are fond of eating foods especially if it’s something new or unheard of. This will serve as a competitive advantage of our business for market penetration. The products include Deep Fried Ice Cream Sandwich, Ice Cream, Milkshakes, and the seasonal Halo-Halo. The products will be served directly from the freezers but the Deep Fried Ice Cream Sandwich will be cooked before serving. They also come in variety of flavors which customers can choose from. Of course preparation, presentation and appearance of the product is vital for the customers to be attracted. Quality and safety of the products is also important for the assurance of the customers.
a. Product Category / Quality and Styleb. Brandc. Packaging
2. Pricing3. Place of Distribution4. Promotion/Advertising
The firm’s Advertising Objectives must contain
1. Specific Communication Task 2. Accomplished with a Specific Target Audience 3. During a Specific Period of Time
Informative Advertising - Builds Primary DemandPersuasive Advertising - Builds Selective DemandReminder Advertising - Keeps Consumers Thinking About a Product.
a. PosterPosters will be placed in our store. The design of the poster can able to catch the
attention of the customers because of the information provided as well as its aesthetic. Chosen colors are pleasing to the eye and will surely boost the interest of the customers to eat to our restaurant. Two (2) posters will be produced which are good for three (3) months.
The computation would be:No. of pcs X Unit Price X No. of times per month
2 X 150 X 1 = Php. 300.00
b. WebsiteWe are now living in the modern world and surfing to the internet is one of the
easiest ways to have quick access. The proponents will be using free website in order to reach wider range of possible customers. This will be of great help for them to know
the concept behind KDJ Creamery. It will also provide good communication relationship in ways that, we will be giving information and they will be giving comments and suggestions for product improvements and other concerns.
c. FlyersFlyers can convey wide range of possible buyers for it can be brought to other
places. The store will produce 200 flyers per day. These flyers will be distributed twice a week or eight (8) times in a month. Flyers will be given in the first three (3) months of the business until it will get its loyal customers
The computation would be:No. of Pcs. X Unit Price X No. of times per month
200 X 8 X 8 = Php.12, 800
Technical Study
Once determining the market size and area and the product and demand, we can now analyze the potential technical feasibility of this project. On this stage, we will be dealing in the allocation of the resources that will be needed in order to satisfy the market. The technical soundness analysis will be considered complete if all pertinent technical aspect of the project have been taken into account in the analysis and if the planned construction or procurement conforms to accepted standards and practices. The estimated cost of the project should be as low as any other reasonably available alternate which would produce the intended results. The objective of this portion of the feasibility study is to determine to what extent the project meets the technical soundness criteria.Prior to projecting technical feasibility, the technical requirements of the project must be analyzed. This may be done by:
A. Prior to projecting technical feasibility, the technical requirements of the project must be analyzed. This may be done by stating:- The quantity and quality of products to be produced- The specification of raw materials- The supplies to be used- The labor needed- The utilities needed- The waste disposal methods- Transportation necessary- Plant location- Plant size and layout- Machinery and equipment- Production schedule- Manufacturing process
B. Providing estimates of total project cost and enumerating the major items of capital cost.
C. Listing down in detail estimated production cost and overhead cost that will go into the operating of the proposed plan.
D. Taking into consideration any major technological development in the industry which may affect the commercial or technical soundness of the project. Once the technical requirements have been prepared, the project proponent is ready to analyze technical feasibility.
I. Objectives
1. To plan a layout on the store size and illustration2. Combine the corporate marketing strategies with our own to build volume
quickly.3. Maintain food and labor costs consistent with High Ridge4. To determine the process to be used in obtaining the products and how to
distribute or deliver it to the market
5. To define the human requirements and regulations of the business6. To determine where to acquire the supplies and necessary utilities for the
operation of the business7. To determine the supplies needed and all necessary machineries and
equipment to be used in the operation of the business8. To know the methods of waste disposal for the maintenance of the store
II. Products
Our main product will be the sorbet, gelato, soft and the hard ice cream that the ingredients are found only in the country which it has best to offer. This will be the Creamery’s main product. But our innovation is the deep fried ice cream sandwich where it’ll be the hot (or cold) topic in the country. It’s a frozen bun (pinoy pan) and inside of it is the creamy ice cream. Of course the ice cream comes also with a variety of flavors and can also be either made from natural carabao milk or the common cow milk. The bun is frozen to a certain degree, and when it is served, it will be deep fried to a hot grill for a certain amount of time. And after that it is then served to the customer hot and crispy on the outside, cold and creamy on the inside.
1. Product Description
KDJ Creamery, based from the survey conducted will be one of the highest anticipated desserts go to in the Philippines. This new approach in serving the country’s best desserts and the new combination of the hot crispy ice cream sandwich will be one of the innovations that the creamery will have. In other words, we will focus on producing products with the country’s recipes; create new ways of serving it. With a bit of eye candy approach, we will create a dessert restaurant that all people can enjoy.
The ice cream has many flavors to choose from and can also be the country’s special flavors like mango from guimaras, buko pandan, ube macapuno, strawberries from baguio, Queso royal and of course avocado from Region II. We are also creating a chocolate flavor from cacao and will be adding Pili nuts from Bicol. The milk for the ice cream will be the natural carabao milk.
Figure 2: Product Sample
2. Uses of the Product
Our product is mainly for eating
III. Manufacturing Process1. Description of the Process
The process of producing the ice cream is simple. Steps are as follows
1. Start with the ice cream mix that is composed of all the dairy products and pour it to the machine. Depending on the flavor that we are using, some of the flavors will be added in the machine to get mixed in while some get mixed out. 2 bags of ice cream base should be enough to produce 6 quartz
2. Now we can add the French vanilla extract to bring out the creaminess of the cream
3. Start the machine and run it for 10 minutes.4. After that, we can now add the extra ingredients the fruits or nuts and
some flavorings such as caramel or chocolate and mix it in by hand.
2. Alternative Process Considereda. A coffee can filled with an ice cream base that's placed inside a larger
can filled with ice and rock salt. Close both cans with plastic lids, shake for 25 minutes
Figure 3: Coffe Can Process
b. The Play & Freeze ice cream ball contains a metal tube that you fill with an ice cream base. Ice and rock salt fill the sides of the ball itself, which you toss, roll, or otherwise agitate for about 20 minutes.
Figure 4: Ice Cream Baller
c. With an ice cream maker, you just pour the ice cream base into the already-chilled metal container and then turn the crank every couple of minutes until a thick ice cream forms.
Figure 5: Ice Cream Maker
d. A plastic Ziploc bag inside a larger bag filled with ice and rock salt applies the standard equation — freezing temperature plus agitation for 5 minutes — and wins the prize for the most elegantly simple solution of all.
Figure 6: Ziploc Plastic Bag Process
e. If you have a hand mixer, you can fill a bowl with the ice cream base, place it in the freezer, and mix on medium speed every 2 hours to break up any ice crystals that may have formed, to create a chunky ice cream.
Figure 7: Hand Mix Process
f. Another option is to freeze an ice cream base in ice cube trays and then pop the frozen cubes in a food processor. Pulse for a few seconds, and you have instant, if slightly rustic, ice cream.
Figure 8: Blending Process
IV. Production Schedule
Store Hours: 9:00am to 9:00pmHours of Operation: 12 hours of operation21 Employees are needed in daily operation
A deep fryer is an appliance used for deep frying.
1 15,000 15,000
Description Function Quantity Unit Cost Total Cost
Exhaust Fan Sucks hot air out of the kitchen to create proper ventilation
1 620 620
Heavy Duty Burner Kitchen appliance designed for the purpose of cooking food
2 3,868 3,868
Weighing scale A measuring instrument for determining the weight or mass of an object
1 249.00 249.00
Range Hood A device containing a fan that hangs above the stove or cook top in the kitchen used to remove smoke, odors, heat, and steam from the air
1 2410.00 2410.00
Utensils
Description Function Quantity Unit Cost Cost
Colander A bowl- shaped kitchen utensil with holes in it use for draining.
1 260.00 260
Strainer A filter to retain larger pieces while small pieces and liquid pass through
1 40.00 40.00
Frying Pan A kitchen utensil design to fry, to sear, and to sauté and food
1 250.00 250.00
Kitchen Knives Set A kitchen tools used to cut different kinds of foods
1 100.00 100.00
Tong A kitchen tool for handling food items on a grill
2 23 46
Spoon and Fork Used in food preparation to measure, mix, stir and toss ingredients; primary utensil used for eating
3 dozen each
39.00 117.00
Spatula A hard-held tool that is used for lifting, flipping or spreading substances
3 35.00 105.00
Bowl A round vessel that is open at the top; used chiefly for holding food or liquids
2 Dozen 96.00 192.00
Plate A broad, mainly flat vessel on which food is served
3 Dozen 144.00 432.00
Pitcher Used to hold water for drinking purposes
3 49.00 147.00
Ice cream scooper It has sharp 2 30.00 60.00
metal edges that cut perfectly round balls from even the hardest ice cream
Furniture and Fixtures
Office Chair Generally comfortable and adjustable type of chair that is designed for use at a desk in an office
1 300.00 300.00
Fluorescent Light Lighting, 3 325.00 975.00
Kitchen Cabinet Built-in furniture installed in many kitchens for storage of food, cooking equipment, and often silverware and dishes for table service
1 2000.00 2000.00
Supplies
Description Function Quantity Unit Cost Cost
Ballpen Used in writing important details or documents
3 5.00 15.00
Calculator Used for computation
2 50.00 100.00
Logbook Used for recording and reference purposes
1 45.00 45.00
Stapler Used to compile files
1 29.75 29.75
Staple wire Used for stapler
3 boxes 5.75 17.25
Thermal paper Used to 5 32.00 160.00
provide receipt to the customers
Bond paper Used for documentation purposes
1 ream 232.00 232.00
Sanitary Supplies
Pot Holder A piece of textile used to hold hot kitchen equipment like pots and pans
5 10.00 50.00
Cleaning towel Used to dry hands and for sanitation purposes
5 10.00 50.00
Sponge and Scrub Used to scrub plates and utensils.
12 8.00 96.00
Dishwashing liquid Used to clean plates and other utensils
2 25.00 50.00
Mop Used to wipe wet floor
1 95.00 95.00
Broom Used to sweep the floor
1 45.00 45.00
Dust pan Used to collect dust and waste
1 45.00 45.00
Hand Sanitizer Disinfectant use to maintain the cleanliness of the hands before and after eating
1 125.00 125.00
Tissue paper For sanitary purposes
8 24.00 192.00
Table 8: Materials
VI. Plant Location
Our Store location can be located at the Terraprime Condominum which is located at Sto. Domingo Church Quezon City, just at the front along Quezon Avenue Road Quezon City
VII. Plant Size and Layout
Figure 9: Store Layout
VIII. Raw Materials and Supplies
Today, ice cream is made from a blend of dairy products (cream, condensed milk,
butterfat), sugar, flavorings, and approved additives by the Regulatory Guidelines
Concerning Food Additives in the Republic of the Philippines Department of Health.
Eggs are added for some flavorings, particularly French vanilla. The broad guidelines
allow producers to use ingredients ranging from sweet cream to nonfat dry milk, cane
sugar to corn-syrup solids, fresh eggs to powdered eggs. DOH regulations do stipulate
that each package of ice cream must contain at least 10% butterfat and only carabao’s
milk can pass the butter fat content requirement for ice cream naturally, without any add
on.
The additives, which act as emulsifiers and stabilizers, are used to prevent heat
shock and the formation of ice crystals during the production process. The most
common additives are guar gum, extracted from the guar bush, and carrageenan,
derived from sea kelp or Irish moss.
Air is added to ice cream to improve its ability to absorb flavorings and to facilitate
serving. Without air, ice cream becomes heavy and soggy. On the other hand, too much
air results in ice cream that is snowy and dry. Makers of high-quality ice cream
(sometimes known as gourmet ice cream) use fresh whole dairy products, a low
percentage of air (approximately 20%), between 16-20% butterfat, and as few additives
as possible.
IX. Waste Disposal
In the food industry business, customer’s health and safety is always the priority. We will provide satisfaction and convenience that they deserve. Maintenance and cleanliness in all of the areas of the store is a requirement. Henceforth, KDJ Creamery encourages all the members of the organization especially we are in the food industry to strictly comply with the set of standards in cleanliness specifically with the proper disposal of waste.
First and foremost, we will provide trash bins in locations that are away from the customer’s dining area, hence near the comfort rooms and such, inside the kitchen and the corners on the counter.
Waste disposal is a problem in the food industry, so we came up ways to reduce the cost and recycle some materials. Food waste can be recycled by two main pathways:
Composting: A treatment that breaks down biodegradable waste by naturally occurring micro-organisms with oxygen, in an enclosed vessel or tunnel or pit
Anaerobic digestion or biogas technology: A treatment that breaks down biodegradable waste in the absence of oxygen, producing a renewable energy (biogas) that can be used to generate electricity and heat.
And also we will schedule or conduct a waste audit because it will allow us to see a full scale report of how much trash our business creates. We will also buy items made from recycled content because when you purchase items made from recycled material, you are supporting the recycling loop.
X. Utilities
Water Running water is a must for most businesses. From a health and safety
perspective, it is important to have access to water for first aid and basic hygiene. Consider where your business can find a water source before you decide on a business location. If you live near a metropolitan area, you can hook up to the town's or city's water services. If you live in an isolated or rural area, you may have to dig a well and connect a water pump to your office. If you plan to connect to an existing water service, allow enough time to complete the necessary forms.
Sewage Some localities group water and sewage into a single service. If this is the
case, your businesses may need to register for this service and pay a monthly fee. Again, if your business is not part of a metropolitan area, you may have to install your own septic tank and connect it to your drainage system.
Trash Service In some localities, it is compulsive to pay and use some type of trash service.
Again, if your business is not part of a metropolitan area, you may have to contract the services of a private company that works in your area or take your trash directly to the closest landfill.
Telecommunications Nowadays most businesses group their telecommunication utilities in one
convenient bill. This includes your telephone, cable TV, voice over Internet protocol and Internet. If you need two or more of these services, you can save money by buying them as part of a package. On the other hand, if you only need one service, such as a telephone line, don't pay for services you do not need. Local telephone service companies are required by law to offer a simple telephone service by itself.
Electricity Unless you are a hardcore road warrior and do all of your business from the
back of your car, you need to contract electricity. Of course, another option is to generate your own electricity through a small-scale wind farm or solar panels. This is generally not an economic choice, however, especially for companies that have just started. Each state has an energy department that offers advice and tips on how to minimize the cost of electricity and ensure your appliances are as efficient as possible. You can also find help and advice at the U.S. Department of Energy Information Administration's official website.
LPG This is very essential to our business because all of our products require LPG
for efficient production. This will be available in various dealers in
XI. Direct Labor Requirements
For businesses, the people are considered to be the lifeblood of the organization. They are the key factors in every business there is. They are very important for the business to operate effectively and efficiently. KDJ Creamery will need a full - time employee. In our operation, we need a total number of manpower in our restaurant, N for opening shift and N for the closing shift. They are the ones who will perform the functions of following positions:
Store Manager 1Assistant Manager 1Kitchen Steward 4Service Crew 2Total 8
Management Study
The management aspect implies a clear and precise identification of duties and responsibilities, flow of authority and manpower level requirement. It will be set up for efficiency. To achieve these, the management must be able to plan all activities, for the company to become productive and competitive industry through human resource, financial capability and new technologies. The central idea of management is to make every action or decision help achieve a careful chosen goal. The word management is also used to mean the group of persons called executives who perform management activities.
I. Objectives
1. To determine the form of the proposed business2. To analyze the organization and management aspect of the business 3. To introduce or present the exact capitalization of the business4. To identify requirements and qualification, duties and responsibilities and salaries
and benefits of the business manpower 5. To illustrate and clearly discuss the flow of authority and the policies that will serve
as guide of the entire business.
II. Form of Ownership
The type of business is a partnership. It is to be registered with the Securities and Exchange Commission (SEC) for the contract called articles of co-partnership. By the contract of partnership, two or more persons bind themselves to contribute money, property and industry with the intension of dividing the profits among themselves.
KDJ Creamery as partnership will be registered with the different government agencies as Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Business Permit and Licensing Office of Paranaque (BPLO), Bureau of Internal Revenue (BIR) and Social Security System (SSS).
The project will have its full blast after it has complied with all the necessary documents and technical requirements needed to operate and engage in this type of business. The pre-operating capital for this business will be 1,000,000.00 each partners total of 6,000,000.00
III. Capitalization
Partners Type of Partner Capital Source of CapitalDann Angelo C. Solis Industrial
Capitalist1,000,000.00 Cash from parents, Personal
savingsMary Kriszelle Bautista Industrial
Capitalist500,000.00 Personal savings
Jerome Encarnacion Industrial Capitalist
500,000.00 Sale of Land
IV. Organizational Chart
Figure 10: Organizational Chart
V. Manpower Requirements
The first thing we need to do is to outline the functions that our organization needs to perform. Then determine the number of people (and their backgrounds) that is necessary to achieve this aim. This allows us to decide the possible sources of recruitment and the policies to be followed.
Employees are the ones who actualize our goals whether in finance, marketing or operations. Without them your vision would remain only a dream.
Position Job Description Job Requirements
Store Manager - Responsible for the overall supervision of all other managers and subordinates.
- Responsible for the administration of all the management functions planning, organizing, controlling and directing
- Handles the
- College graduate of as 4-year Management degree
- At least 2 years of managerial experience and has a higher degree of academic preparation
- With pleasing personality- 24-25 years old, male or
female- Highly intelligent
andve4ry good in
Store Manager
Assistant Manager
Kitchen Steward
Kitchen Steward
Cashier 1
Cashier 2
implementation of the policies, rules and regulations throughout the organization. Monitors the performance of his subordinates.
- Responsible for the overall ongoing production operations including inventory control, scheduling, documentation, equipment maintenance calibration, shipping, an
decision making- Creative and imaginative- Hardworking and good in
handling people- Good communicative
skills
Asst. Store Manager
- Working with the General Manager to improve operations, sales and profitability.
- Maximizing profits by controlling labor costs and expenses.
- Continuously reviewing and managing team performance.
- Supporting the Store Manager in identifying opportunities for commercial advantage.
- Providing and exceptional in store experience for customers.
- Checking off and signing invoices and credit notes on a weekly basis.
- College graduate of as 4-year Management degree
- At least 2 years of managerial experience and has a higher degree of academic preparation
- With pleasing personality- 24-25 years old, male or
female- Highly intelligent
andve4ry good in decision making
- Creative and imaginative- Hardworking and good in
handling people- Good communicative
skills
- Managing staff training requirements.
- Delegate work and give tasks to individuals to do.
Cashier
- Greet customers politely at all times
- Performs the seven key steps in every transactions with the customers
- Ensures good customer relations by giving friendly service to them
- Handles money/sales properly Eliminate loss of the store by accurately receiving payment and giving of change
- At least high school graduate
- 18-21 years old, male- With working experience
in any fast foodpr restaurant
- Hardworking and with high level of work discipline
- Fast in accomplishing task and can do multitasking
Kitchen Steward
- Ensures the quality of products and all the food standards are met
- Responsible for the cleanliness of all the kitchen tools and equipment
- Ensures the maximum level of performance of the machines and equipment
- Minimizes the wastage of raw materials in production
- Responsible for the safety of food and elimination of hazardous elements
- College graduate of 4-year course in
- Accountancy or any related course
- At least 1 year working experience related in handling money
- 22-30 years old, male or female
- Good communication skills
- Computer literate, knowledge in accounting software is advantage
VI. Compensation and Benefits
1. Salaries and Wages
Employees will receive their respective salaries as per contract of employment every 15th and last day of the month. Cut-off for payroll computation is 10th and 25th of the month
2. Overtime Pay
Employees can work beyond their shift or on rest days if work requires it. All efforts will be made to avoid unnecessary overtime work and to keep work within reasonable time limits. Employees that will work overtime needs written approval from the store manager first prior to working overtime. Every employee should file their overtime slips within the pay-period for compensation and records. No slip no overtime pay.
3. Cancelled Day-off or Holiday Pay
Every employee shall be provided with a rest period of twenty-four (24) hours after every six (6) consecutive normal working days. See. Figure # for details
4. 13th Month Pay
The 13th month pay of an employee which shall be equivalent to 1/12 of his basic salary earned within a calendar year shall be given not later than December 24 of each year.
5. Paternity and Maternity Leave
Paternity and maternity leave benefits as provided by law shall be given to every employee entitled thereto, upon complying with all the requirements of the company and upon proper verification by the Company’s duly authorized representatives.
6. SSS/PHIC/HDMF Benefits
Benefits under SSS/PHIC/HDMF law shall be granted in accordance with applicable laws. Implementation of procedures relative to entitlement of said benefits should be done in accordance with the regulations to be promulgated by the management.
7. Hospitalization Plan
Regular employees shall be provided with hospitalization plan with a respectable Health Maintenance Organization under terms and conditions to be solely decided by the company.
8. Accident Insurance
Regular employees are enrolled by the Company under a reputable InsuranceOrganization. Any accident incurred whether work-related or not shall be compensated by this Insurance firm. This plan shall be on employer-employee participating basis.
9. Retirement Benefits
Retirement pay benefits as provided by law shall be given to all qualified employees upon their retirement from the company.
10.Bereavement Assistance
If an immediate family member of a regular employee passed away, he shall be given a financial assistance of P5000.00 upon complying with all the requirements of the company and verification by its authorized representative.
11.Other Incentives and Awards
Awards and certificates of recognition, such as Crew of the Month, Best inAttendance, Most Punctual Employee, Model Employee of the Year and the like shall be given the discretion of management.
VII. Organizational Policies
Discipline is the primary concern of the organization for the attainment of the productivity and efficiency that will lead to the organizational and personal growth. All of the employees as well as the general partners are expected to behave ethically at all times.
1. Employment
It is the company’s policy to select applicants based on the following factors:- Mental aptitude- Social skills- Physical fitness- Strength and weaknesses- Experience
As such only applicants who passed the qualifying examinations, series of interviews, medical examinations and background investigations shall be considered for employment.
a. Employment Requirements
1. 2 pieces 2x2 pictures 9. Barangay Clearance2. 2 pieces 1x1 pictures 10. Working Permit3. NSO Authenticated Birth Certificate 11. Health Card4. NBI and Police Clearance5. SSS Number6. TIN Number7. Drug test8. Medical examination
2. Classification of Employees
a. According to Rank
1. Managerial Employee – One who is vested with powers or prerogatives to lay down and execute management policies and/or hire, transfer, suspend, lay off, recall, discharge, assign or discipline employees.
2. Supervisory Employees – One, who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinely or clerical in nature but requires the use of independent judgment.
3. Rank-and-file employee – all other employees not falling within any of the above definitions.
b. According to Status
1. Contractual or Seasonal – An employee is hired for a specified period of time under an agreement prior to or at the time of employment.
2. Probationary – an employee is hired on a probationary basis for a period not to exceed six (6) months.
3. An employee is hired on a regular status upon satisfactory completion of the probationary period and upon satisfaction of the criteria necessary for appointment as regular status.
The company reserves the right to amend the above classification or create sub classifications as the circumstances of the business may require.
3. Orientation
All newly hired employees regardless of classification of rank and status must undergo on orientation and indoctrination as to the Company’s vision, mission, policies, rules and regulations, duties and responsibilities and menu familiarization.
4. Personnel Records
It is the responsibility of the company to update and maintain personnel records. It should contain the following document and records:
- Resume with 2x2 colored photo- Test results- Interview impressions- Mayor’s permit and health certificate (to be renewed every calendar year)- Transcript of records- TIN,SSS,PHIC,HDMF numbers- Employment contracts- Performance Evaluation forms- Certificate of trainings attended- Leave and violation records- Others
If there are changes in an employer’s personal data such as residence address, civil status, dependents, etc., a report should be made for updating purposes. Withholding information and failure to report will result in willful breach of trust wherein continuance of service will be questioned.
5. Contracts of Employment
All employees shall duly sign, execute and deliver the corresponding Contract ofEmployment. All employees shall thereafter be issued a company identification card, which must be worn at all times during working hours.
6. Work Schedule
It is the policy of the company to provide appropriate work hours without violating the mandated rest days. As such, the company requires all employees to follow the six (6) hours working shift, including one-hour break assigned to them.
7. Tune Keeping
KDJ Points of Sales system is the official time indicator. All employees are required to use the POS system to accurately record times of arrival and departure.
Swipe cards will be issued to the employees on the first day of work. Swipe card will be used to register the time of arrival, break and departure on the basis for payroll.Employees should swipe out before taking their meal breaks and swipe in after taking their meal breaks.
Employees who forget to swipe in or out shall be charged as AWOL for the entire shift
8. Attendance and Punctuality
Attendance and punctuality are important qualities that the company expects from its employees. They are the factors that determine an employee’s efficiency and reliability. His presence is necessary for the smooth flow of work at the start of the business hours.
a. Attendance
Every employee shall ask written permission from the Store Manager or Department Head, before taking the leave of absence.
- Unscheduled Absences Employees must file an application for absence for at least one (1) week ahead to Store Manager or Department Head
- If employee incurred sickness and cannot report for work, he must call his supervisor or manager at least two (2) hours before his duty. If no calls were received on the day of his absence or his call came in late, this will be considered as AWOL. Upon return to work, he must file an absence slip with medical certificate attached for signature and approval of Store Manager or Assistant Manager
- Emergency Leave If employees must go on emergency leave, he must fi le an absence slip immediately. Attached to the absence slip must be documents justifying his reason for going on emergency leave.
An employee who is absent from work without written approval is subject to penalties. An employee who is absent without official leave for five consecutive days is considered to have abandoned his work and therefore subject to outright dismissal from the company.
Under time is allowed on a case-to-case basis and only if approved by the StoreManager. Under time hours shall be automatically deducted from the salary of the employees concerned.
b. Punctuality
It is the policy of the company to discourage tardiness as this affects the morale of the punctual employees as well as the operations of the business. Tardiness shall mean coming to work past the required starting time. It also means failure to go back in the workplace immediately after break periods. Heavy traffic, oversleeping, personal reasons, etc. do not constitute justification for late arrivals. Only three (3) tardiness are allowed within one month. In excess of this, an employee is subject to disciplinary action. Arrival in the workplace two hours after scheduled time will be sufficient ground to consider an employee as absent for half day. Tardiness shall be chargeable directly against basic pay.
9. Personnel Movement and Performance Evaluation
It is management’s prerogative to assign, transfer, reclassify, promote or demote its employees accordingly based on merit and performance. Thus, employees are continuously evaluated as to their performance, work attitude, productivity, honesty and diligence and may be served as bases for management’s decisions on personnel movement. Performance evaluation shall be done to every employee on his 3rd, 4th, and 5th month. For regular employees, performance evaluation shall be done twice a year every May and November of a calendar year.
10.Separation from Service
a. Voluntary Resignation
In case an employee intends to resign, he/she must give a one-month prior notice to the management and must comply with all the clearance requirements; otherwise the employee shall forfeit whatever remaining compensation due to him.
b. Termination
In all cases involving a termination of an employee’s service from the company, appropriate notice of termination shall be furnished to the employee subject to clearances of all accountabilities. As a matter of policy, terminated employees are not qualified for reinstatement.
VIII. Legal Requirements
1. Municipality of Quezon City 4. DTI- Business Permit - Application for Partnership- Barangay Business Clearance - Business Name Registration Form- Lease Contract- Locational Clearance- Picture of Establishment- Fire Clearance- Sanitary Permit
2. BIR 5. SEC- 2316 Form - Articles of Partnership- 1702 Form - Registration Data Sheet- 1903 Form- 1907 Form
3. SSS 6. FDA- R-5 - Petition to open a food establishment- R-1 - RA 3720- R-1A - Checklist for food establishment
11.Code of Ethics
1. Hygiene and Sanitation
All employees must observe must observe the highest standard of hygiene and sanitation. Employees must be well-groomed and continue with their work, wearing clean and proper attire. For this purpose, the tem “well-groomed” shall mean proper haircut, cut fingernails, use deodorant, and clean and regularly washed hands. For this purpose, the term “clean and proper attire” shall likewise include newly-washed and properly-ironed attire, no excessive dirt on clothes and shoes, and proper and complete company uniform worn properly.
2. Arrival and Departure of Employees
All employees regardless of status and rank, must submit all personal belongings for inspection upon entering the company premises. Inspection will include a tickler which shall list all contents of his bag, down to the smallest detail.
All personal belongings are restricted within the locker area while the employees on-duty. It is strictly prohibited to bring in any personal belongings based on the tickler as well as body frisking. If found questionable items in his possession, this shall be reported to the manager on-duty immediately for proper action.
3. Procedure for Notices/Bulletin Boards
Management shall post all notices, announcements and memoranda of general application on the bulletin board. Ignorance is not an excuse and it is incumbent on each employee to regularly check the bulletin boards for new notices, announcements or memoranda. No employee is allowed to post or remove any document on the bulletin board without the prior permission from the management.
4. Notice of Disciplinary Action
In accordance with the due process requirements of the Labor code, as amended, all employees found or reported to have committed a violation of the company rules and regulations shall be given a written notice to explain, and shall be given the opportunity to explain why no disciplinary action should be imposed against him. Thereafter, any disciplinary action to be imposed by the management shall again be indicated in writing and duly furnished to the affected employee.
5. Code of Conduct
Without in any limiting the prerogative of the company to amend, modify, revoke, or add to the ff. List of offenses, the following acts and mere attempts to commit such acts, even if unsuccessful, shall warrant the corresponding disciplinary actions.
a. Kinds of Penalties
Employees are subject to penalties according to their violations made during their employment.
- Written Report of Warning (WR) it is the notice calling all the attention to the offense and warning the offenses against repetition of such violation in the future.
- Suspension (3D/6D/9D) If a worker has committed offense for the second or third time, he is subject to suspension. He will be detached from the organization with the designated period of time without payment.
- Termination (TR) Termination will be given to employees who have committed a major offense. The employee will be dishonorably separated from the organization.
Loitering or unauthorized leaving of post 1st 2nd 3rd 4th 5th
Extending break period 1st 2nd 3rd 4th 5th
Unauthorized use of company time forpersonal pursuit
1st 2nd 3rd 4th 5th
Insubordinate or disobedience to superior
1st 2nd 3rd
Negligence or carelessness 1st 2nd 3rd 4th 5th
Unauthorized use or misuse of companyproperty
1st 2nd 3rd 4th 5th
Willful destruction of company properties 1st 2nd
Discourtesy towards consumers, suppliers, superiors and co-workers
1st 2nd 3rd 4th
Using profane language or obscene language to superiors
1st 2nd
Stealing or attempting to steal properties of the company or of the co-workers
1st
Failure to comply with company rules andstandards on security & safety and Health & Sanitation
1st 2nd 3rd 4th
Failure to comply with health, security and safety requirements of the company
1st 2nd 3rd 4th
Immortality or scandalous acts 1st
Table 9: Penaltiesb. Project Schedule Gantt Chart
ActivitiesMonth
November December January February1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Processing ofLegal RequirementsProcessing theLease of ContractPurchasing andinstallation of EquipmentHiring and Training ofPersonnelPreparing all the Operation MaterialsBusiness Operation Proper
Table 10: Gantt chart Schedule
The following are the 47 the considered holidays
Jan 1 New Year's Day Regular Holiday
Jan 14 Maulid un-Nabi Common Local holidays
Jan 31 Chinese Lunar New Year's Day Special Non-working Holiday
Feb 25 People Power Anniversary Observance
Mar 20 March equinox Season
Apr 9 The Day of Valor Regular Holiday
Apr 17 Maundy Thursday Regular Holiday
Apr 18 Good Friday Regular Holiday
Apr 19 Holy Saturday Special Non-working Holiday
Apr 20 Easter Sunday Observance
May 1 Labor Day Regular Holiday
May 27 Lailatul Isra Wal Mi Raj Common Local holidays
Jun 12 Independence Day Regular Holiday
Jun 21 June Solstice Season
Jul 29 Eidul-Fitar Common Local holidays
Aug 21 Ninoy Aquino Day Special Non-working Holiday
Aug 24 National Heroes Day Regular Holiday
Aug 25 National Heroes Day holiday Regular Holiday
Sep 23 September equinox Season
Oct 6 Id-ul-Adha (Feast of the Sacrifice) Common Local holidays
Oct 25 Amun Jadid Muslim, Common Local holidays
Nov 1 All Saints' Day Special Non-working Holiday
Nov 2 All Souls' Day Observance
Nov 30 Bonifacio Day Regular Holiday
Dec 21 December Solstice Season
Dec 24 Christmas Eve Special Non-working Holiday
Dec 25 Christmas Day Regular Holiday
Dec 26 Special Day after Christmas Special Non-working Holiday
Dec 30 Rizal Day Regular Holiday
Dec 31 New Year's Eve Special Non-working Holiday
Work performed on a regular holiday shall be compensated with an additional compensation equivalent to 100% of his regular salary. Work performed on an employee’s rest days or on a special holiday shall be paid an additional compensation of 30% of his regular salary.
Financial Study
The financial aspect of the project feasibility study quantifies the results of the marketing, technical, management, taxation and legal phase of the project study and expresses in peso terms the possible outcome of operating the project.
The major parts of the financial study are:- Statements of assumptions;- Possible sources of outside financing, if the capital requirements cannot be met
entirely by the proponents;- Projected financial statements;- Details of various amounts contained in the projected financial statements; and- Analysis of the financial projections
Basically, project studies consist of the skillful coordination of the various information on all the factors in the form of financial projections. It covers all the factors that are pertinent to an intended venture having established the existence of a sample market and the feasibility of the production facilities to supply this market, the investigation should move on the study of finance cost. What remains is to study the result of the market and technical studies.
I. Objectives
1. to make a realistic, complete, and conservative estimate of the total cost to put up a project of its capital requirements,
2. to determine the amount of capital financing available and borrowings needed, including possible source and terms,
3. to make complete, safe, and realistic projections of operating cost and revenues,4. to determine whether the project will be able to pay its total debt with a
reasonable margin of safety,5. to determine the necessary financial arrangements to insure that the project will
have the cash it needs when required,6. To determine the company’s earnings performance and the soundness and
liquidity of its financial positions.
II. Total Project CostIII. Table 11: Pre-operating Cost
Pre Operating Expense
Expenses Yearly Monthly Daily
Wages and Salaries 1,009,008.00 84,084.00 2,802.80
Starting initial investment would investment would be 2,000,000.00
V. Financial Statements
a. Major Assumptions:- Sales increase by 5% every year.- Depreciation method used is a straight line method.- VAT paid is for 11 months (January to February) and VAT for December is paid
on the 25th of January of the subsequent year as stated in the NIRC.- Withholding tax on salaries is payable on April 15 of the subsequent year.- Income Tax for the current year is payable on April 15 of the subsequent year.- Salaries increase by .5% every year.- Utilities expense is paid as it comes due.- Administrative and Selling expense increase 5% per year.
b. Projected Income Statements
Table 12: Projected Net Income
c. Balance Sheet
Table 13: Projected Balance Sheet
VI. Financial Analysis
1. Ratios
Table 14: Liquidity and Solvency Ratios
Table 15: Profitability Ratio
CHAPTER VII
SOCIO-ECONOMIC STUDY
The socio-economic impact of this study will clearly state its relevance to the external aspect of
the business.
A. Contribution to the Philippine Economy
Every business establishment will be of great help for the growth and development of the Philippine
economy. These will only be possible if every firm will be responsible enough to perform their duties
and obligations to their customers, community and of course to the government. DaCs’
Creamery will definitely contribute additional earnings to our government by means of paying
right taxes. Through this, the government can able to perform its functions well including continuous
support and assistance to the business industry, providing projects for the community such as building
infrastructures, public schools and hospitals, strengthening arm forces for the security and protection of the
countrymen and other indispensable projects that will benefit the people.
B. Employment Generation
The business will provide job opportunities to many individuals most especially to those
people who have great passion in food preparation. Every society wants all its qualified members to be gainfully
employed. When individuals are employed they are able to raise their children support them through school,
provide them with decent homes, acquire medical services whenever needed and contribute to government
income through the payment of income taxes. DaCs’ Creamery will help to lessen rate of
unemployment and number of poor people. The eradication of poverty will help to solve social problems like
crimes, juvenile delinquency and malnutrition.
C. Social Desirability
The firm will apply the principle of Corporate Social Responsibility (CSR).The business will
observe proper waste disposal in order to maintain cleanliness and orderliness. This will also help to
lessen pollution that causes different diseases and health problems to many Filipinos. The business
proponents will allocate enough budgets to sustain the execution of waste management in its operation.
