Chapter I

Marketing Aspect
Introduction
1.1 Market Description
Name of the Company and Logo

Selling the right name is crucial

for

number

customers

first

of

reasons.

contact

with

It

is
the

company and its product. It is what the

consumers use to talk the product to
other, potential customers. The right
name makes consumers and other
businesses want to use the product or
associate with the company. The right
name is what consumers remember when they want to use the product again.
The right name begins the sale of the company.
Our Business name is Tsokolatte. These are derived from two word,
Tsoko is a tagalog word when Filipinos hear it, the first thing that come to their
minds is that its a local store and latte is an Italian word meaning coffee and
milk, we combined this word to attract not only Filipinos consumers but also the
foreign consumers.
Logo design is considered to be the tool which helps in giving the first
impression of the business. It promotes the business professionally in the market
and gives a unique and innovative identity to the business. Our company logo
shows the product of what the proponent wants to sell in the market. We tend to
make it circular to represents the continuous flow of income. We choose the
background of it to be color brown because the usual color of chocolate is brown.
2

Our logo is consisting of some of our products that we are going to sell in the
market and we made it an easy logo to remember.
Brief Description of the Product
The proponents will start on a small confectionery store. It will focus on
different kinds of chocolates and drink with unique designs and delicious taste.
Our products are suitable for any ages. Tsokolatte store serve different type of
chocolate products includes chocolate bars, chocolate cakes, chocolate drinks
and chocolate cookies with their different twist and delicious taste. What makes
Tsokolate Store differs from others confectionery store is that we also offers
chocolates for diabetic people and people who are chocolates lovers which it
provides sugar free in order to maintain their healthy living.
Geographical Location
Proponents are planning to locate our proposed business in 124-130
General San Miguel Avenue, Sangandaan, Caloocan City, Metro Manila.
It has a size of 140 square meters.
Target Market
Our target markets for year 2012 are Barangays 5, 8 and 10. We choose
them to get our target market because they are the one who are near in our shop
located at 124-130 General San Miguel Avenue, Sangandaan, Caloocan
City, Metro Manila.
Table 1.1
Ages

Population

5-9

1045297

10-14

914010

15-19

970920

20-24

1090487
3

25-29

984618

30-34

865349

35-39

713170

Total

6583851

Total Population in all ages in South

Caloocan

9932560

Total Percentage of Population

66.29%

In order to get the average population of our target market, we get the
total population of the South Caloocan ages 5-39 which is 6,583,851 and it
devided to the total population of the whole South Caloocan which is 9,932,560
and multiplied It by 100 % which is equal to 66.29 %.
Table 1.2

Sampling Method
Brgy

2011

#5

3094

#8

24294

#10

1459

Total

28847

Target Market

19039.02

This is the total

population of barangay 5, 8
and 10 on the year 2011
from ages 5-39.

Year

Population

Target Market

2007

29,391

19,398

2008

30,291

19,992

2009

31,219

20,604

2010

32,174
21,234

2011

28,847

19,039

2012

29,531

19,490

Table 1.3

In order to get the target market from the year 2007-2012, the population
every year will be multiplied by the total averages 5-39 age of population which is
66.29%.

1.2 DEMAND
ACTUAL DEMAND
Table 1.4

Year

Total Demand

2007
2008
2009
2010
2011
2012

98,645
101,666
104,780
107,986
96,819
99,115

This table shows the Tsokolatte Store actual demand from the year 2007 to
2012 in baranggay 5, baranggay 8 and baranggay 10.

Table 1.5
Semi-Log
Actual
Values (Y)

Projected
Values(Yc)

X2

2007 98,645.118 4.99408

-5

25

5.0090402
102103.4027
24.97038
2

2008 101,665.791 5.00717

-3

5.0078906
101833.5015
15.02152
8

2009 104,780.440 5.02028

-1

-5.02028 5.00674114 101564.3138

Year

Log Y

XLogY

LogYC

2010 107,985.710 5.03337

5.03337 5.0055916 101295.8377

2011 96,819.288 4.98596

14.95789

5.0044420
101028.0713
6

2012 99,115.000 4.99614

25

24.98070

5.0032925
100761.0126
2

70

-0.04023

Total 609,011.347

30.0370
0

PROJECTED
2013

49

5.00214

100494.660

2014

81

5.00099

100229.011

2015

11

121

4.99984

99964.065

2016

13

169

4.99869

99699.819

2017

15

225

4.99754

99436.271

Proponents used the 3 methods of getting the standard deviation and after
computing the semi-log they used it in order to get the projected demand
because it has the smallest standard deviation.

PROJECTED DEMAND
7

Table 1.6

Year

Total Demand

2013
2014

100,495
100,229
99,964

2015
2016
2017

99,700
99,436

This table shows the Tsokolatte Stores projected demand from year 2013 to
2017 which shows that the demand is increasing.

1.3 SUPPLY
ACTUAL SUPPLY
Table 1.7

HISTORICAL SUPPLY
Ye
ar

Daily

No. of
Days

Weekly

Yearly

20
07
20
08
20
09
20
10

193

1,351

64,848

193

1,351

64,848

193

1,351

64,848

193

1,351

64,848
8

20
11
20
12

193

1,351

64,848

193

1,351

64,848

This table shows the supply of the Tsokolattes competitors which is the
Mabini Bakeshop, from the year 2007 to 2012 in baranggay 5, baranggay 8 and
baranggay 10. We have visited our competitor to know their daily supply from the
year 2007 to 2012. The daily supply is 193 because the store is open for 11
hours then it devided to the average hours a consumers stayed in the store
which is 2 hours then it multiplied by their seating capacity which is 35 seats.

Table 1.8
PROJECTED SUPPLY

Yea
r
201
3
201
4
201
5
201
6
201
7

Daily
193

PROJECTED SUPPLY
No. of
Weekly
Days
7
1,351

Yearly
64,848

193

1,351

64,848

193

1,351

64,484

193

1,351

64,848

193

1,351

64,848
9

This table shows the projected supply of the Mabini Bakeshop in the year
2013 to 2017. We visited the Mabini Bakeshop to asked them if they will going to
expand their store and they said no, so the projected supply will still be the same
which is 193 daily supply

1.4 DEMAND-SUPPLY ANALYSIS

DEMAND-SUPPLY ANALYSIS
Table 1.9

Ye
ar

20
07
20
08
20
09
20
10
20
11
20

DEMAND AND SUPPLY ANALYSIS

Total
Total Supply
Unfilled Percenta
Demand
Demand
ge
of
Unfilled
Demand
98,645
64,848
33,797
34%
101,666

64,848

36,818

36%

104,780

64,848

39,932

38%

107,986

64,848

43,138

40%

96,819

64,848

31,971

33%

99,115

64,848

34,267

35%
10

12

DEMAND AND SUPPLY ANALYSIS

Ye
Total
Total
Unfille Percenta
ar
Demand
Supply
d
ge
Deman
of
d
Unfilled
Demand
20
100,495
64,848
35,647
35%
13
20
100,229
64,848
35,381
35%
14
20
99,964
64,848
35,116
35%
15
20
99,700
64,848
34,852
35%
16
20
99,436
64,848
34,588
35%
17

1.5 General Marketing Process

Philippines Bakery / Confectionary -Regulations & Standards
11

The regulation of food in the Republic of the Philippines is enshrined in the

1987 Philippine Constitution. Statutory laws are also in place providing legal
basis for the creation of a regulatory agency, the Bureau of Food and Drugs
(BFAD), mandated to ensure the safety, efficacy and good quality of all food
products being made available to the general public - "it is the policy of the state
to ensure safe and good quality food, drug and cosmetics and regulate the
production, sale and traffic of the same to protect the health of the consumer".
The most important of these laws is the Republic Act (RA) 3720 "Foods, Drugs,
Medical Devices and Cosmetics Act". Regulation is achieved through inspection
and licensing of food establishments, registration and market monitoring of
products, approval of product label prior to marketing, and approval and
monitoring of promotions and advertisements. International standards and
guidelines such as those recommended by the WHO, USP or BP, FAO and
Codex Alimentarius are used as a basis in the formulation and implementation of
rules and regulations governing the manufacture, importation, exportation,
distribution, or sale of food. In 2009 a new law was signed strengthening the
regulatory capacity of the BFAD to ensure the safety, quality and efficacy of
medicines and other health products in the Philippines. Republic Act No. 9711,
otherwise known as the Food & Drug Administration Act of 2009, also renames
the BFAD as the Food & Drug Administration (FDA) with improved administrative
and technical capacity in the regulation of food, drugs, cosmetics and device
establishments and products.

12

Advertisement
Flyers
Below is our Advertisement flier it promotes our business and create image
between the people of its existence. They will be distributed to different people
and to the present clients in order to make them more aware about our business.
They will be distributed on the streets, left in post boxes or sent by mail. They
hold information about our business, products, services and our contact detail.

Tarpaulin

One of the best

with an effective
campaign is by
far

the

most

ways to come up
advertising
using tarps. These are by
popular,

cost-effective and widely used outdoor campaign materials. This type of

advertisement can help us to send our messages across to our target market or
consumers.
13

In this way we can easily attract our consumers with our very catchy tagline and
a good campaign ad Experience the Choco World.

Branding and Packaging Strategies

Product branding and packaging are very important in a business as in the
present

age

of

globalization

and

liberalization, a large number of brands of

various

products

are

available

to

the

consumer to choose and select from. Our

business made a unique brand name and
own style of packaging to have a unique
identity for our consumers and to facilitate
their distinction from our competitors. We
made our brand name catchy and easy to recall and most of all its easy to
pronounce and have a distinctive appeal.

14

Market Timing and Scheduling Strategies

This following table shows the schedule of the business operations during
the coming months in 2012, from the preparation to the operation of the
business, this will help the manager and other staff of the tsokolatte store to be
updated of the coming event this year; this will also help the management to be
fully aware of the situations.
Table 1.10

Jan.

Feb.

GANTT CHART
Mar.
Apr.
May

Jun.

Preparation of the
Business study
Organization ang
registration of the
15

Business
Construction of
Tsokolatte store
Buying of raw
materials
Buying of machines
& Equipment
Recruitment
Opening of
Tsokolatte store

Table 1.11
Below is our managements every day schedule, that will help them know
the everyday schedule of tsokolatte

8:00
8:30
8:30
9:00
9:00
9:30
9:30
12:00
12:00
12:15
12:15
14:00
14:00
14:00

Tuesd Wednes Thurs

ay
day
day
Opening and cleaning
time
Preparing of foods
and drinks

Frida Saturd
y
ay
Sunday

Opening and cleaning

preparing of foods
and drinks

work
Break
work
change of shifts
work
16

16:00
17:00
17:00
17:15
17:15
19:30
19:00
19:30
20:00
20:30
20:30
21:00

Break

Cleaning and closing

work
Cleaning and closing

Our schedule for Tuesdays up to Thursdays is different with the schedule

for Fridays and Sundays, to give an extension time for our late consumers. From
the start of our every day work, we give a 30 minutes time for the opening and
cleaning time, then the preparation of foods and drinks, then work. At 9:00 to
12:00 pm in our schedule we give our employees to take a break while working,
they can eat but cannot go outside the store because they still have to work. As
our first batch of employees takes break, the second batch will take in charge
until the closing

17

CHANNEL OF DISTRIBUTION

Product Mix Strategies

Product
At Tsokolatte Store, all chocolates products is blended from the finest
chocolate utilized by many of the major companies in the confectionery
industries. All our chocolates are made in small amount of quantities and
combined with only quality ingredients. It is this combination that separates us,
yet enables us, to have the same quality and tastes as some of the leaders in the
industry.

Place

18

Tsokolatte store is visible and/or easily accessible to pedestrian and

automobile traffic. It has a parking lot where our customers can park their
automobiles. Tsokolatte store is located in a commercial place which is a big help
for us to attract more customers and what good is that it is also a walking
distance for some customers that are located near to our store.
Promotion
Proponents are planning to make a more attractive way on promoting our
business. Proponents will use social networking sites like blog, twitter or face
book to promote our products because we also need to communicate to our
customers through our adverts, staff and other promotional activities to let people
know what is going on within our business and with our new products and in this
way it will help us to reach our

19

Chapter II
Technical Aspect
2.1 Products
20

Product Description
Chocolates
Chocolate is a raw or processed food produced from the seed of the
tropical Theobroma cacao tree. Chocolate has become one of the most popular
food types and flavors in the world. Gifts of chocolate molded into different
shapes have become traditional on certain holidays: chocolate bunnies
and eggs are popular on Easter, chocolate coins on Hanukkah, Santa Claus and
other holiday symbols on Christmas, and chocolate hearts or chocolate in heartshaped boxes on Valentine's Day. Chocolate is also used in cold and hot
beverages, to produce chocolate milk and hot chocolate.
Etymology
The word "chocolate" entered the English language from Spanish.
"chocolate" comes from Nahuatl, the language of the Aztecs, from the
word chocoltl, which many sources derived from xocoltl from xococ'sour' or
'bitter', and tl 'water' or 'drink'.[
Physical Properties of the Product
Chocolate is an opaque, brittle, crystalline, insulating solid. The melting
point of chocolate is around 25 degrees Celsius. It is Non-ductile, non-malleable
and non-sonorous.
www.wikipedia.com
Chemical Properties of the Product

21

The chemicals Tryptophan and Theobromine are both found in chocolate.

The first is used in the brain to make serotonin, the neurotransmitter that can
produce feelings of ecstasy. The latter is a weak stimulant.
A. Tsokolatte Bars

Our Tsokolatte bar is a confection in bar

form comprising some or all of the following
components: cocoa solids, cocoa butter, sugar, milk.
The

relative

components

presence
forms

or

the

absence

of

subclasses

these
of dark

chocolate, milk chocolate, and white. In addition to

these

main

ingredients,

it

may

contain emulsifiers such as soy lecithin and flavors such as vanilla.

B. Tsokolatte Chip Cookies

A Tskolatte chip cookie is a drop

cookie that originated in the United States and
features chocolate chips as its distinguishing
ingredient. The traditional recipe combines a
dough composed of butter and both brown and
white sugar with semi-sweet chocolate chips.
Variations include recipes with other types of
chocolate or additional ingredients, such as nuts or oatmeal.

C. Tsokolatte Drinks

22

Man has invented hundreds of chocolate

drinks to cater to those cacao cravings.
These Tskolatte drinks bring the best and
richest versions here, including heavenly hot
chocolate and cold mocha-almond slush.
Long chocolate drinks like milkshake or
smoothie, like the one shown here, can be
totally delicious when you are relaxing on a
hot or cold weather.

D. Tsokoltate Cakes
Tsokolatte cake is made with
chocolate; it can be made with other
ingredients,

as

ingredients

include

well.

These

fudge,

vanilla

creme, and other sweeteners.

Products to be sold
Tsokolatte store are serving different types of Chocolate delicacies that will surely
satisfy our customers and will serve a great combination that our customer will never
forget and will be a way for them to come back always to taste its good taste. Here are
the different chocolate products that we can offer to our customers.

Table 2.1

23

Serving Size

Product Available

Price
(php)

CHOCOLATE BARS
Dark Oats Chocolate Bar

43g

41

Milk Chocolate Bar

43g

43

Chocolate Bar (Sugar-Free)

43g

30

CHOCOLATE DRINKS
Hot/Cold Chocolate Drink

16oz

42

Tsokolatte Milk Shake

16oz

45

Tsokolatte Strawberry Shake

16oz

45

CHOCOLATE CAKES(SLICE)
Tsokolatte Mousse

1 slice

49

Tsokolatte Fudge

1 slice

42

Black Forrest Cake

1 slice

45

CHOCOLATE CAKES(BOX)
Tsokolatte Mousse

12inch box

377

Tsokolatte Fudge

12inch box

407

Black Forrest Cake

12 inch box

438

CHOCOLATE COOKIES
Chocolate Walnut Merengue
Cookies

15g

13

Chocolate Oatmeal Cake Mix

Cookies

15g

10

Chocolate Covered Cherry

Cookies

15g

12

2.2 Production process

The following flow diagram shows the manufacturing and production
process of the product of tsokolatte, start from the customer, the one who
24

orders the product, then the customer will choose from the menu, after that
he/she will purchase an order and the crew In the counter determines whether
the order is purchasable or not, if its not, then they will discuss whether the
customer will change his/her order or not, if the customer will continue
purchasing, he/she is needed to the purchasable products again, whether its
chocolate bar, chocolate cookies, chocolate candy, chocolate cake, or a
chocolate drink, then after its confirmed, there comes the preparing of the
ordered product, the decorating/garnishing of the products, like putting icing and
sprinkles, in this process the product is decorated according to product
description. And the last is packaging or serving of the product. After decorating,
the product is being delivered to the customer.

2.3 Alternative Process

In case of brown out or loss of electric power proponents will provide

generator in order to maintain our service to customers. The advantage of this
alternative process is that we can easily replace the electric power to generator
and disadvantage of this is that generator making noise and the generator supply
limited power.
If employee is absent, his/her duty will pass to other co-employee or
the management can forward the duty of that employee to other whose of
duty.

2.4 Project Site

Location

The Tsokolatte Store will

be located at 124-130 General
San

Miguel

Avenue,
25

Sangandaan, Caloocan City, Metro Manila. The proponents chose this as

their area because people can easily see the shop. This shop is near in different
establishment such as market named as SMTC or Sangandaan Market Trading
Center, it is also near in supermarkets and groceries store like Best Top and
UltraMega, also near in schools such as Andres Bonifacio Elementary School,
and University of the East- Caloocan. It is also near in police station. This shop is
also near in banks such as BDO, PNB, RCBC, Premiere Bank and Metrobank.
Tsokolatte is located in General San Miguel, Sangandaan, Caloocan City.
The outlet is just a walking 200 distance from the prospective consumer,
therefore there is no problem in the transportation and the time consumed by the
customer to buy the product. The prospective location is within the community
proper thats why availability of labor is easy.
Building
The building in the site is already constructed or about 5-8 years ago with
cement walls, well ventilated and exhaust area for oven and other machineries.
The site is 140 square centimeters and cost for about 30 thousand a month. It is
a three storey establishment but the researcher just rent the ground floor
because they are just about to open a chocolate shop but sooner or later, if they
will need to expand their store, there is no problem with that because they will
just rent the 2nd floor of the site.
Facilities
One of the facilities of the shop is by having a generator. Researcher will
need this in case of loss of electricity to maintain the supply of the power of the
business if they will encounter brownout. Another is by putting wifi in the store.
This will benefit the customers who have laptops and cellphones or any gadget
with wifi. This is free to the customers for them to feel not bored inside the store
while enjoying their orders. They will just ask for the password of the wifi to the
employees. To those who have their vehicles, they can
26

use our parking space for free exclusive for the customers only

ZONING MAP OF CALOOCAN CITY-SOUTH

Vicinity Map
27

2.5 Project Layout

FLOOR PLAN

2.5 Project Layout

Floor Plan

28

BUBBLE DIAGRAM

29

SITE DEVELOPMENT PLAN

FRONT ELEVATION/FAADE

30

31

TOP VIEW

32

2.6 PHYSICAL RESOURCE MANAGEMENT

33

EQUIPMENT
Table 2.2
KITCHEN MACHINE AND
EQUIPMENT

QUANTITY

UNIT COST

TOTAL

3 pcs.

1,500

4,500

2 pcs.

15,000

30,000

2 pcs.

3,000

6,000

2 pcs.

5000

10,000

Electric Mixer

Oven

Electric Chocolate Rape

Electronic Chocolate
Melting Pot

34

2 pcs.

2,000

4,000

1 pc

12,274

12,274

2 pcs.

2,500

5,000

20 pcs.

20

400

Blender

Freezer

Coffee Grinder

Molds
35

Rolling pin

3 pcs.

50

150

1 pc.

500

500

Exhaust Fan
TOTAL COST

Php 72,824

Table 2.3
36

Maintenance
equipment

Quantity

Unit Cost

Total

3 pcs

300

900

3 pcs

120

360

2pcs

60

120

3pcs

40

120

Mirror

Toilet Paper Holder

Pail

Toilet Bowl Cleaner

37
2

2,000

4,000

Table 2.4
FURNITURE AND FIXTURE
Furniture and fixture

Quantity

6pcs

Unit Cost

Total

600

3,600

4,000

36,000

High chairs

9pcs

38

Table w/ 6 chairs
TOTAL COST

Php 39,600

OTHER SUPPLIES
Table 2.5
SUPPLIES

QUANTITY

UNIT COST

TOTAL

3 pcs

400

1,200

60 pcs

480

540

Casserole

Saucer

Glass

60 pcs

39

60 pcs

10

600

60 pcs

540

60 pcs

10

600

6 pcs

60

360

4 pcs

60

240

300

Spoon

Teaspoon

Fork

Mixing Bowl

Plastic Tray

100 pcs
Chocolate Sheets

40

6 pcs

30

180

100 pcs

200

2 pcs

25

50

100 pcs

500

Measuring cup

Straw

Knife for cake

Plastic cups

41

100 pcs

200

100 pcs

10

1000

10

50

2 pcs

30

60

20pcs

6.80

136

Plastics bags

Chocolate box

Plate

Knife

42

Toilet paper

Php 7,236
TOTAL COST
LIGHT EQUIPMENT
Table 2.6
Equipment

Quantity

Unit Cost

Total

750

13

150

1,950

90

1,080

4,500

Light fluorescent

Wall Light

Pin Light

12

TOTAL COST

Php 7,530

43

CAPITAL EQUIPMENT
Equipment

Quantity

Unit Cost

Total

5,000

10,000

25,000

25,000

Point of Sale

Refrigerator

150,000

150,000

Generator
44

TOTAL COST

Office Equipment

Computer

Description

Php 185,000

Sources

an electronic
device that
accepts,
processes,
Asia link
stores, and
Marketing
outputs data
Internationa
at high speeds
l,
according to
Philippines
programmed
instructions

a device that
produces
computergenerated text Asia link
or graphics on Marketing
paper,
Internationa
transparencies
l,

Quantity

Unit
Cost

Total
cost

15,000

15,000

3,000

3,000

45

Printer

, or similar
media

Philippines

a furniture
which you
can use for
placing things

Asia link
Marketing
Internationa
l,
Philippines

4,000

8,000

1,200

2,400

680

1,360

Office table

Usually have
four legs or
Asia link
feet and some Marketing
have rests for Internationa
the arms
l,
Philippines

Office chair

Telephone

is a
telecommuni
cations
device that
transmits and
receives
sounds,
usually the
human voice

PLDT

46

Credit card swiper

Air condition

A device
which data
has been
Asia link
stored
Marketing
magnetically Internationa
that is read
l,
and decoded Philippines
by an
electronic
device that the
card is passed
through

An apparatus
for
controlling,
especially
lowering, the
temperature
and humidity
of an
enclosed
space

Asia link
Marketing
Internationa
l,
Philippines

TOTAL COST

7,000

14,000

15,000

30,000

Php
73,760

47

NATURAL RESOURCES

The raw materials we use is the one we can use to produce quality products. Two other
ingredients are fat to improve softness and keeping quality and sugar to increase
sweetness.

RAW MATERIALS

Materials

Quantity

Supplier

Cost per
unit/piece

Total

Baking Powder

4 bags(3 kls.
Per bag)

KEN-RAFF GENERAL
ENTERPRISE

250

3,000

Butter

1 box(30 pcs.)

GOLDEN PEDESTAL
PHARMA & MKTG

50.50

1,515

Egg

120 pcs.

Rav Angel Intertrading Inc.

480

48

Chocolates

4 box(20 bars
per box)

NEW FLAVOR HOUSE INC

100

8,000

Oats

1 box (20pcs
per pc.)

NEW FLAVOR HOUSE INC

80

1,600

Syrup

3 gallon

GOLDEN PEDESTAL
PHARMA & MKTG

430

1,290

Honey

3 liters

GOLDEN PEDESTAL
PHARMA & MKTG

250

750

Coffee Powder

1 box(20 pcs)

KEN-RAFF GENERAL
ENTERPRISE

70

1,400

NEW FLAVOR HOUSE INC

200

1,000

Cream

5 liters

Water

12 Gallons

Bio Water

30

360

Cherry

5 kilos

Phil Nova Fruits Co. Ltd

200

1,000

Choc chips

4 boxes (20
pcs.)

NEW FLAVOR HOUSE INC

50

4,000

Vanilla

5 kilograms

NEW FLAVOR HOUSE INC

400

2,000

49

Skimmed Milk
powder

5 kilo

Celebes Coconut Corporation

200

1,000

Sugar

5 kilos

Stevia Sugar Supplier

60

300

Peanut

3 kilos

Phil Nova Fruits Co. Ltd

70

210

Cocoa Powder

4 kilos

NEW FLAVOR HOUSE INC

65

260

TOTAL COST

28,16
5

UTILITIES
1. Telephone Our store need a telephone for transactional purposes,
communication to other costumers and also needed for emergencies.
PLDT is the source of communication.
2. Electricity the Meralco is the supplier of our electricity, they are the
responsible in the safeties of connected wires in our establishment.

ELECTRICITY CONSUMPTION PER MONTH

ELECTRICITY CONSUMPTION
Type of
Appliances

No. of
hours
used

Cost
per
hour

Cost per
day

Cost per
week

Cost per
month

Cost per
year(Php)
50

per
day
Refrigerator

24

1.05

25.2

151.2

604.8

7257.6

Air
Condition

12.5

3.99

49.875

299.25

1,197

14364

Electric
Mixer

1.5225

6.09

36.54

438.48

5261.76

Computer

12.5

2.625

32.8125

197

788

9450

Printer

0.1575

0.315

1.89

7.56

90.72

Electric
chocolate
rape

12.5

0.168

2.1

12.6

100.8

1209.6

2.5

0.1575

1.96875

11.8125

94.5

1134

Blender

12.5

6.3

78.75

472.5

3780

45360

Coffee
Grinders

12.5

1.05

13.125

78.75

630

7560

3.675

88.2

529.2

2116.8

0.21

2.625

15.75

63

Electronic
chocolate
melting pot

Freezer
(frostless)
20 cu.ft.

Exhaust Fan

24

12.5

25401.6

756
51

Credit Card
Swiper

12.5

2.3625

29.5312
5

177.187
5

1417.5

17010

Point of sale

12.5

2.3625

29.5312
5

177.187
5

1417.5

17010

Light
fluorescent

12.5

1.05

13.125

78.75

1890

22680

Wall Light

12.5

0.189

2.3625

14.175

737.1

8845.2

Pin Light

12.5

0.1365

1.70625

10.2375

491.4

5896.8

TOTA
L

27.006

377.317
5

2263.90
5

15773.94 189287.28

3. Water the Maynilad is our supply of water.

WASTE DISPOSAL

52

Waste are properly disposed through segregation process and placed in the
colored plastic bag as recommended by the government. It is responsible of the
crews to segregate the waste according to its category (biodegradable and nonbiodegradable). It will be picked up regularly.

LABOR REQUIREMENTS

In establishing our business we plan that we need to hire 2 bakers, 2

cashiers, and 3 service crews.

MAN POWER

Employees are the one important consideration in our business because they are the
one who make the production possible. It is important to motivate them effectively and
produce more sound output. Leadership is an important part of management, the
primary role of a leader is to influence others to voluntarily seek defined objectives to the
employees. During the pre-operating period the owner would plan, hire and choose
workers that are suitable for the jobs available.

2 Bakers
3 Service Crews
2 Cashiers

Manager/Own
er
53

Baker

Cashier

Service Crew

Administrative Personnel

Cashier

Baker

Responsibilities and Function

Cashiers have to keep a
record of how much money
they had when they
opened the store, how
much money is earned
when they closed the store,
and the amount of change
in a register drawer for the
purpose of finding out
when they are required to
restock the change.
Giving change to
customers and consumers
is one of the most
important duties of a
cashier. Cashiers, after
taking cash, need to
calculate it to ensureif its
total is correct, and then
should decide on how
much change needs to be
given in return. There are a
few cash registers which
show the cashier the
particular amount to give
back as change, but others
do not have this facility. In
the latter case, the cashier
needs to be very good in
quick and precise math
calculation.
Must undertake is to
prepare baked goods for
sale.

Job Specification

25-35 years old

Atleast college
undergraduate
Knowledge of basic
arithmetic.
Skill in handling and
counting cash.
Female

Shall be responsible for the

sources of funds for the
operation and its usage.
Take charge in controlling
and evaluating the financial
performance of the firm.
Must have at least
experience working as a

store or boutique cashier.

Must have good
communication skills
knowledge in speaking
English.

Atleast 2nd year college

Male or Female (25-30
years old).
54

Service Crew

In-charge in key holder of

the production process, the
main job is to prepare, mix
all ingredients before
baking.
Has the ability to in
supervising and
participating in baking a
variety of chocolates
products and for assuring
proper quality and
quantity.
Serve as aides of all
business transaction and
operations of the firm.
Cleaning in accordance to
our companys sanitary
standards including but not
limited to: sweeping and
mopping floors, cleaning
walls, tables, counters
kitchen and service
equipment. Checking stock
of products and insuring
proper stock levels and
rotation.
Checking equipment to
ensure that it is in proper
working order, letting the
management team know if
there might be a problem.

With at least experience 3

months-1 year experience
as baker.
Hardworking, responsible
and can work with minimum
supervision.
Must be creative and
unique in making new ideas

18-24 years old

Has a human relation skills
At least high school
graduate.
Male or Female
At least 52 in height.

Employees Proposed Salary Rates

Manager
Owner
Baker
Cashier
Service Crew

Rate per Day

Monthly Salary

Annual Salary

320,00
315.00
280.00

7,680.00
7,560.00
6,720.00

92,160.00
90,720.00
80,640.00
55

TOTAL

915.00

21,960.00

263,520.00

Benefits

SSS
Philhealth
Pagibig
13th month pay

UNIFORMS
CREWS

CHEF (FEMALE)

CHEF (MALE)

CASHIER

56

57

Chapter III
Management Aspect
3.1 Personnel
Administrative Personnel

1 Accountant/Consultant
2 Bakers
3 Service Crews
2 Cashiers

Manager/Owner

Accountant/Consul
tant

Baker

Cashier

Service Crew

Administrative Personnels Job Requirements, Specifications, Responsibilities

and Functions
Accountant

Responsibilities and Function

Take charge in controlling
and evaluating the financial
performance of the firm.
Responsible for applying
accounting principles and
procedures to analyze
financial information,
prepare accurate and

Job Specification
Knowledge of accepted
accounting practices and
principles.
CPA board passer.
Male or female (28-35
years old)
Usually a minimum of 3
years experience in the
58

Cashier

Baker

timely financial reports and

statements and ensure
appropriate accounting
control procedures.
Ensure financial records
are maintained in
compliance with accepted
policies and procedures.
Ensure accurate and
appropriate recording and
analysis of revenues and
expenses.
Cashiers have to keep a
record of how much money
they had when they opened
the store, how much money
is earned when they closed
the store, and the amount
of change in a register
drawer for the purpose of
finding out when they are
required to restock the
change.
Giving change to
customers and consumers
is one of the most
important duties of a
cashier. Cashiers, after
taking cash, need to
calculate it to ensure if its
total is correct, and then
should decide on how
much change needs to be
given in return. There are a
few cash registers which
show the cashier the
particular amount to give
back as change, but others
do not have this facility. In
the latter case, the cashier
needs to be very good in
quick and precise math
calculation.
Must undertake is to
prepare baked goods for
sale.
In-charge in key holder of
the production process, the
main job is to prepare, mix

management of financial
systems and budgets,
financial reporting, financial
data analysis, auditing,
taxation and providing
financial advice.
Knowledge and experience
of related computer
applications.

25-35 years old

Atleast college
undergraduate
Knowledge of basic
arithmetic.
Skill in handling and
counting cash.
Female

Shall be responsible for the

sources of funds for the
operation and its usage.
Take charge in controlling
and evaluating the financial
performance of the firm.
Must have at least
experience working as a

store or boutique cashier.

Must have good
communication skills
knowledge in speaking
English.

Atleast 2nd year college

Male or Female (25-30
years old).
With at least experience 3
months-1 year experience
as baker.
59

Service Crew

all ingredients before

baking.
Has the ability to in
supervising and
participating in baking a
variety of chocolates
products and for assuring
proper quality and quantity.
Serve as aides of all
business transaction and
operations of the firm.
Cleaning in accordance to
our companys sanitary
standards including but not
limited to: sweeping and
mopping floors, cleaning
walls, tables, counters
kitchen and service
equipment. Checking stock
of products and insuring
proper stock levels and
rotation.
Checking equipment to
ensure that it is in proper
working order, letting the
management team know if
there might be a problem.

Hardworking, responsible
and can work with
minimum supervision.
Must be creative and
unique in making new
ideas

18-24 years old

Has a human relation skills
At least high school
graduate.
Male or Female
At least 52 in height.

Administrative Personnels Proposed Salary Rates

Manager/Owner
Accountant
Baker
Cashier
Service Crew
TOTAL

Rate per Day

320,00
315.00
280.00
915.00

Monthly Salary
10,000.00
7,680.00
7,560.00
6,720.00
31,960.00

Annual Salary
120,000.00
92,160.00
90,720.00
80,640.00
383,520.00

60

Benefits

SSS
Philhealth
Pagibig
13TH month pay

3.2 Management Proposals

The Tsokolatte Store will have a democratic type of management style
wherein employees will put trust and encourage them to make decisions. . This
requires good two-way communication and often involves democratic discussion
groups, which can offer useful suggestions and ideas. The manager or leader incharge is always open to feedback (initiatives and otherwise) and it forms the
basis of future assignments and It will also encouragement by the leader to
inspire the employees to become leaders and develop in this area. The manager
seeks consultation on all issues and decisions but remains the final authority on
which ones to be put into use.

General Company Policy

OFFENSE

No ID, not wearing proper uniform

SANCTION
1st offense: Verbal Warning
2nd offense: Written Report/Memo

No hairnet/toque, gloves, apron,

3rd offense: Suspension for 3 days

1st offense: Verbal Warning

white shoes

2nd offense: Written Report/Memo

61

3rd offense: Suspension for 3 days

Wearing of accessories like

1st offense: Verbal Warning

necklace, earrings and bracelet ( for

2nd offense: Written Report/Memo

kitchen staff)
Absenteeism, Tardiness

3rd offense: Suspension for 3 days

1st offense: Verbal Warning
2nd offense: Written Report/Memo

Smoking and drinking alcoholic

3rd offense: Suspension for 3 days

1st offense: Verbal Warning

drinks

2nd offense: Written Report/Memo

Leave in work without any prior

3rd offense: Suspension for 3 days

1st offense: Verbal Warning

notice or asking permission

2nd offense: Written Report/Memo

3rd offense: Suspension
4th offense: Termination

Possession of illegal drugs and fire

arms

1st offense: Termination

Stealing of any properties in the

1st offense: Suspension

store
Doing malicious acts against the

2nd offense: Termination

1st offense: Written Report/Memo

workers and costumers

2nd offense: Suspension

3rd offense: Termination

62

Type of Business Organization

Sole Proprietorship
Tsokolatte Store decided to form a sole proprietorship which is owned by a
single person control over business decisions. The individual owns the firms
assets and is responsible for all its liabilities. From a legal point of view, the
owner of a proprietorship is not separable from the business and is personally
liable for all debts of the business. From accounting prospective, however, the
business is an entity seperate from the owner (proprietor). Therefore, the
financial statement of the business presents only those assets and liabilities
pertaining to the business.
Advantages of Sole Proprietorship
1. Ease of Entry and Exit
A sole proprietorship requires no formal charter and is expensive to form
dissolve.
2. Full Ownership and Control
The owner has full control, reaps all profits and bears all losses.
3. Tax Savings
The entire income generated by the proprietorship passes directly to the
owner. This may result tax advantage if the owners tax rate is less than the
tax rate of a corporation.
4. Few government regulations
Sole proprietorship has the greatest freedom as compared with any form of
business organization.

63

3.3 Forms
Application Form A job application form helps the Manager or HR department
decide what people he should give an interview to.

64

Attendance or Time record This will ensure that the employees are coming to
work daily, and to record the employees attendance at a particular place or
activity, which is essential when paying workers at an hourly rate.

65

Job Analysis Record It is used to determine the job classification of person in

the company, this aims to produce an objective examination and rating of
positions, according to job content and requirements, without reference to the
current classification of the position or the performance of the job incumbent.

66

Job Performance Evaluation - The purpose of the performance evaluation is to

provide feedback on an employee's performance, to create a development plan
for areas of improvement and to provide rationale for a merit increase. Taken
together, an employee's performance appraisals can provide the basis for a
promotion.

67

Employees training record - This is the training record of the employees of

tsokolatte store to make them more efficient and effective. With that, the
tsokolatte will be more profitable.

68

Personal Information Sheet - This is the Personal information sheet that

the employees of tsokolatte store will be going to use in the future.
69

Daily Time Record with this, the managers can monitor his/her workers or
employees with their time in and time outs every day.

70

71

Chapter IV
Financial Aspect
4.1 Total Project Cost

Items
A
1
2

Category
Fixed Capital Costs
Land (Prepaid Rent)
Site Preparation &
Renovations

Debt

Equity

90000
423550

Total
90000

422363

845913
72

Tools, Machineries &

Eqpts
a. KITCHEN
EQUIPMENT
b. MAINTENANCE
EQUIPMENT
c. OFFICE
EQUIPMENT
d. CAPITAL
EQUIPMENT
e. LIGHT EQUIPMENT
f. Other supplies

Furniture & Fixtures

6
Total Initial Fixed Capital
Costs

72824

72824

5500

5500

73760

73760
185000

7530
7236

185000
7530
7236

39600

39600

720000

Items
B
1
2

Category
Pre Operating Capital
Pre Investment Studies &
Investigations
Management of Pre Project
Operations
b. Test Run
c. Recruitment and Training

607363

Debt

1327363

Equit
y

Total

4000

4000

3000
5000

3000
5000

73

d. Suppliers Arrangements
(supplier and interior)
e. Arrangements for Marketing &
Promotions
f. Build-up of Connections &
Networks
g. Legal Permits
Department of Trade & Industry (DTI)
Mayor's Permit
NBI
TIN(BIR)
Bureau of Food and Drugs (BFAD)
Department of Labot & Employment
(DOLE)

3000

3000

6000

6000

2000

2000

300
10000
150
530
250

300
10000
150
530
250

100

100

Sanitary Clearance

100

100

Lease of Contracts

400

400

34,83
0

34,83
0

Total Pre Operating Capital Costs

Items
C
1

Category
Initial Working Capital

Debt

Equity

Total

Current Assets
a. Inventories

6000

6000

Raw Materials
b.Cash on Hand

28165
54555

28165
54555
74

Pre-Operating
Production Costs
a.Salaries & Wages

61480

b. Rent Expense

90,000

61480
90,000

c.Overheads
UTILITIES

17607

17607

Total Initial Working Capital

90,000

167,807

257,807

TOTAL COST OF PROJECT

810,000

810,000

1,620,000

4.2 Financiers

Source

Value

% to total

P 810,00.00

50%

2. Bank Loan (Eastwest Bank)

P 810,00.00

50%

Total

P 1,620,000.00

100%

1. Owners Investment

EASTWEST BANK PERSONAL LOAN

The EastWest Bank Personal Loan is an unsecured and non-collateralized
consumer loan that is granted to qualified individuals for their personal use. It is
payable in fixed equal monthly installments.

Tenor
6 months
12 months
18 months
24 months
36 months

Add-on Monthly Interest

1.49%
1.49%
1.59%
1.59%
1.69%

Factor Rate
0.1815667
0.0982333
0.0714556
0.0575667
0.0446778
75

 To Compute for the Monthly Installment

Principal Loan Amount x Factor Rate = Monthly Installment

Short Processing time (Processing of application will take 3 to 5

banking days. Release of loan proceeds to
the client will take another 2 banking days for pick up and 2 to 4
banking days for the delivery and deposit
to account option.)

No Collateral and Co-Maker needed

Monthly Installment = 810,000 x 0.0446778

= P 36,189.02 payable for 3 years (36 months)
= 434,268.2 270,000
= 164,268.2 annual interest
= 13,689.02 monthly interest

4.3 Major Assumptions Used

The Tsokolatte store is going to use the STRAIGHT LINE METHOD for
depreciation formula.
The management of tsokolatte store will assume its own salvage value for the
equipments, furniture and fixture.
76

The estimated useful life of equipments, furniture and fixtures are based on the
depreciation value from the internet.
An Income tax rate of 32% is imposed on the companys net income before tax
as provided by the national tax law.
Assuming that the management of tsokolatte store will provide the SSS, PAGIBIG and Philhealth to the employees.
The Tsokolatte store is located in General San Miguel, Sangandaan Caloocan
City and will cost up to 30,000 pesos per month for its occupancy rate.
Licenses will increase up to 3-5% of the previous year.
Advertising expenses will be decreasing by 2% on the year 2014, assuming that
the store will be known not only in sangandaan, but also in the whole Caloocan
during its second year.
The payment of salaries will be paid every 30th day of the month. And it will
increased by 2% annually.
The average Inflation rate for the year 2012 is 4.74%
The Tsokolatte store will increase its selling price every year by 4.74%
The inflation rate is assumed to increase in 2013, therefore the production
expenses is also assumed to increase by 4% on the same year, but will
decrease by 1.5% on the following year, and will increase again by 2% on its 5th
year.
The production capacity will increase by 1% on its second year, assuming that
the owner will meet people can be a help for the production capacity to increase
each year.
Water, Electricity and Telephone expenses are assumed to increase by 5%
annually.
The price of tsokolatte stores product will increase by at least 4.74% every year.
5%of total net income per year will be allocated for any community work the firm
will engage.
4000 pesos is allocated for the pre-investment studies and investigation if the
management will want to open a new branch.

4.4 Projected Financial Statements

77

Pre-Operating Cash Flow

Tsokolatte Confectionery store

Cash Flow Statement
As of Dec. 31, 2012
Cash flow from operating
activities:
Cash paid for site renovations
Cash paid for Prepaid rent
Cash paid for Rent expenses
Cash paid for Investment and
studies
Cash paid for test run
Cash paid for recruitment &
training
Cash paid for suppliers
arrangements
Cash paid for marketing and
promotion
Cash paid for connection and
networks
Cash paid for Inventories
Cash paid for pre operating salaries
and wages
Cash paid for pre operating
utilities
Cash paid for legal permits
Net cash used for operating
activities
Cash Flow from Investing
activities:
Acquisition of furniture & fixture
Acquisition of equipments
Acquisition ofother supplies
Net cash used for investing
activities
Cash Flow from Financing
activities
Invetment by the owner
Loan from bank
Net cash provided by
financing
Cash Balance January 1

845,913.00
90,000.00
90,000.00
4,000.00
3,000.00
5,000.00
3,000.00
6,000.00
2,000.00
34,165.00
61,480.00
17,607.00
11,830.00
1,173,995.00

39,600.00
344,614.00
7,236.00
391,450.00

810,000.00
810,000.00
1,620,000.00
54,555.00
78

2013

Pre-Operating Balance Sheet

Tsokolattes Store
Balance Sheet
As of Dec. 31, 2012
Assets
Current assets
Cash on hand
Inventories
Security deposit
leasehold improvements
Total current asset
Non-current Assets
Furniture & Fixtures
Equipment
Other supplies
Total non-current asset

54,555.00
34,165.00
90,000.00
845,913.00
1,024,633.0
0

Total Assets

39,600.00
344,614.00
7,236.00
391,450.00
1,416,083.
00

Liabilities and Owners Equity

Loans payable
Total liability

810,000.00
810,000.00

Owners Equity
Tayags Capital
total Owners Equity
Total Liabilities & Owners
Equity

606,083.00
606,083.00
1,416,083.
00

79