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The Executive Summary

The Cakery catering is a pastry catering business located in Tomas Morato.

The Cakery catering is a hospitality company dedicated to providing high-quality desserts in a


comfortable atmosphere for clients who seek a fun "gourmet" experience outside restaurants.
We intend to make enough profit to generate a fair return for our investors and to finance
continued growth and development in quality products. We also maintain a friendly, fair, and
creative work environment, which respects diversity, new ideas, and hard work. Also offers a
very personal experience. The customer hand picks a freshly made cupcake in the flavor of their
choice, and then can completely customize it. This service allows the customer to feel like they
are in control, and receive the product exactly the way they want it. The Cakery is a unique idea
with appeal to people of all ages, ethnicities, and tax brackets. Whether you are a little kid or an
elderly person, a cupcake is a cupcake, and the opportunity to design your own is an interesting
and fun activity that is instantly gratifying.

Nature of the Product / Service Being Offered

The quality of the pastries we offer are made from finest quality ingredients, freshly baked and
suit for every occasion or cravings youll have the affordability and the quality of our pastries and
cakes can compete to the fast-rising pastries business. We offer every day cakes for general
consumption. The Cakery offers fresh and homemade cake and cupcakes, which can serve
certain event like Weddings, Birthday or any occasions.

Size and Growth trend to the Market

The Cakery wants to establish a large regular customer base, and will concentrate its business
and marketing on local areas, which will be the dominant target market. And also wants to
establish a large regular customer base, and will therefore concentrate its business and
marketing on local residents, which will be the dominant target market. This will establish a
healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is
expected to comprise approximately 35% of the revenues. High visibility and competitive
products and service are critical to capture this segment of the market.
Financing Requirements
Equipment
o Aprons
o Gloves
o Hairnet
o Mask
o Calculator
o Record Notebook
o Knives
o Measuring Cups
o Utensils
o Weighting Balance
o Baking Pans
o Baking Sheets
o Bread Mitts
o Rolling Pins
o Tray
o Oven
o Display stands
o Desserts fountain

Ingredients
o Eggs
o Sugar
o Flour
o Flavoring
o Yeast
o Baking Powder
o Butter
o Oil
o Milk
o Water
o Cheese
o Nuts
o Salt
o Toppings
o Icing
o Brown Sugar
o Cocoa powder
o All Purpose Cream
Insurances
o Professional Indemnity
o Combines Liability
o Personnel Accident

Personnel
o Staff Salaries
o Seminar
o Overtime
o Incentives

General
o Bills
o Auditing
o Meetings
o Papers
Key Projections
o Variable Inputs

FIXED INPUTS Bread Mills 700/Kg = 700

Wooden Spoon 75 x 3 = 225 Grain Mills 100/Kg = 100

Liner 135 = 135 Electricity 400/day = 400

Tray 170 = 170 Water 250/day = 250

Kitchen Timer 90 = 90 labor 500/day = 500

Scales 250 = 250

Rolling Pins 100 x 3 = 300

Oven Mitts 135 x 2 = 270

Mixing Bowl 500 x 3 = 1500

Mixer 2000 x 3 = 6000

Display stand 322 x 3 = 966

Chocolate Fountain 671 x 2 = 1340

Measuring Spoon 180 x 3 = 540

Cooling Rack 5,500 = 5,500

Loaf Pan 320 x 3 = 600

Baking Pan 100 x 3 = 300


Proposed Used of Funds

The Cakery Catering Funds will be used wisely; the funds will be distributed in required
ingredients, equipment, operational expense, and labor and product promotion scheme if
needed so that we are sure that all our cakes and pastries will be marketable.

Business Description

Mission Statement: Bake, Serve and Enjoy will be living proof that caring, integrity, hard work
and innovation at all levels creates success.

Vision Statement: Our mission is to enhance our customers business. We will do this by
providing the highest quality pastry products and the best possible services to the food industry.
We will continuously improve all aspects of our business to sustain the long-term success of our
customers and ourselves.

History behind the idea or current business

So, I decided to create Catering business because we love sweet desserts thats why we
decided to this business,

The Logo is a Cupcake symbolizes the products being offered in catering business and there is
a cherry on the top of the cupcake it symbolizes our cupcake is very good quality and tasty too.

Companys current or proposed legal form

Since the Cakery is a starting business, we decided that our business proposed legal form is a
Single Proprietorship since the business is just only starting. All the operations and transactions
of this shall be known and recognizes by the owner.
Proposed entry strategy and timeline of events

Date Activities
December 8,2017 Capital and Other Finances Done
December 18, 2017 Get an ideal Location
December 24, 2017 Get all the licenses and permits
December 29, 2017 Purchase or lease of Equipment
December 30,2017 Hiring of personnel
January 6, 2017 Purchase of Materials
January 9 , 2017 Opening Day

Description of Initial Product

We make sure that making cakes is clean and procedure and process.
Our product has a great advantage that the other cake related products because we use
organic and freshly ingredients to ensure the freshness of our products to be served to
the customer.
We also make sure that our product is high quality and best taste for the customer
satisfactions.

Product research and development

Based on my research, most of the people love to eat sweets, or any kind of desserts, it is like
the main attraction when it comes in a party or any particular occasions to have some sweet
desserts. They preferred a fabulous ambience. Attracted foods especially DESSERTS.
Market Analysis

Description of the Industry

The Cakery is a premium Pastry Catering business located in Tomas morato. We specified
authentic pastries and amazing custom of cakes for every occasion. Despite all the strengths of
the business, there are some weaknesses that must be considered. A catering is a labor-
intensive endeavor; it demands many employees who must work together in a small space for
extended periods of time. These employees must constantly produce enough product to satisfy
the demand of the store-front. Because of this constant production and the demand for fresh
product, some of the cupcakes will undoubtedly have to be thrown out. This hurts our profit, as
cupcakes do not turn over much profit to begin with. With food and ingredient prices climbing
annually, this is sure to impact the business. The final weakness is that cupcakes are a luxury
food. They are a dessert that satisfies a persons want, not their need, and in todays economy
there are many people who simply cannot afford non-necessities. This list of weaknesses shows
us that there are areas that The Cakery will have the opportunity to expand.

Target Market

Our target areas are the Occasions that many people spend their quality time together with
friends and family. The Cakery has identified its overall market to consist of people who have a
higher level of discretionary income to indulge in and appreciate the exquisite creativity and flair
to consume extraordinary cakes and pastry that only taste good looking good but also reflect
company concern for improving the environment.
Competition

Our personalized cake tastes and looks good


We have unique designs that people will really love eating
The cakes we smell are good for the health and no preservatives added it comes from
organic fruits and vegetables
Easily contact us and cakes can have made on time and date
We offer better cake presentations on any occasions

Barriers to Entry

Defective equipment
Natural Disaster
Also, Competition

Barriers to entry in this industry are low. Economies of scale are beneficial, but are not required
for industry success. As a result, small businesses can enter the industry with a relatively small
amount of capital. The two main determinants of a new companys success are the leaders
ability to acquire sufficient distribution channels to cover operating costs and their ability to build
up brand recognition and loyalty. Distribution channels typically involve retail outlets, such as
supermarkets and grocery stores, and they can be more easily acquired if the pastry shop or
cake shop has an established brand or the marketing resources to create one.

There are seven sources of barriers to entry:

Economies of scale

These are declines in the unit costs of a product as the absolute volume per period increases.
These force the entrant to either come in at a large scale (risking strong reaction from
incumbents) or a small scale (forcing a cost disadvantage).

Product differentiation

Incumbents have brand identification and customer loyalties. This forces entrants to spend
heavily to overcome these loyalties. Startups may bring a different product to market, but its
benefits must be clearly communicated to the target customer. Startups must find an effective
positioning, which often requires marketing resources beyond their means.

Capital requirements

These are the financial resources required for infrastructure, machinery, R&D and advertising.
Startups may get around capital requirements by outsourcing parts of the operation to
companies that can leverage existing investments.
Switching costs

These are one-time costs the buyer faces when switching an existing suppliers product to a
new entrant (for example, employee retraining, new equipment, technical support).

Access to distribution channels

This can be a barrier if logical distribution channels have been locked up by incumbents.

Cost disadvantages independent of scale

Incumbents may have cost advantages that cannot be replicated by a potential entrant. Factors
include the learning or experience curve, proprietary product technology, access to raw
materials, favorable locations and government subsidies.

Government policy

Governments can limit or prevent entry to industries with various controls (for example,
licensing requirements, limits to access to raw materials). Startups in highly regulated industries
will find that incumbents have fine-tuned their business according to regulation.

What response can new entrants expect?

The expected reaction of industry incumbents towards a new entrant influences the prospect or
threat of entry by a new competitor. Several conditions indicate the likelihood of retaliation to
entry:

A history of strong retaliation to entrants


Established firms with substantial resources to retaliate (for example, excess cash,
distribution channel leverage, excess productive capacity)
Established firms with commitment to the industry and highly illiquid assets
Slow industry growth
The Management Team
Background and Primary Responsibilities of the Management Team

Office Manager

In the beginning, chances are you'll serve as the office manager, taking phone calls, dealing
with suppliers, keeping track of receipts and setting up a workable system to organize this hub
of your company. You might find yourself making calls to collect late payments, troubleshooting
computer and other technical problems, sending invoices, and handling customer complaints or
requests. Consider hiring someone early on that you can train to assist you with these tasks, as
they can quickly become overwhelming when trying to manage the other aspects of your
business.

Marketing Expert

No matter how good your product or service is, if the public isn't aware of it, your business won't
be a success. Every business owner must put time into developing effecting marketing and
advertising campaigns. Often, these require a large investment of time in addition to money, as
you'll want to research your target market to determine the most effective ways to reach them.
You'll likely play the role of marketer for the duration of your business unless your company
grows large enough to hire someone specifically for this position.

Bookkeeper and Accountant

To make the most of your business, keep meticulous track of your expenses and income. While
performing the tasks of a bookkeeper, you also must play the role of a tax expert, learning the
relevant tax laws so that your company doesn't inadvertently violate any of them -- a mistake
that can result in hefty fines. In this role, watch for deductions that you can take, as this can
save you a significant amount of money each year. Consider hiring an accountant to do your
quarterly taxes if you believe your math skills are unequal to this role.

Technical Expert

Employees and the managers also the managers may have the role of technical expert. They
must be able to perform the work properly. This means that they play the role of individuals with
all the requisite skills and competencies to undertake their various tasks. In the role of technical
expert, both employees and manager incur several responsibilities, such as ensuring that they
perform according to mission, goals, objectives and expectations of the organization.

Team Playing

Employees and the managers also the owners work in a team. As such they have the
responsibility of contributing to the success of the team. Employees and business partners fulfill
this responsibility by attending meetings, contributing to decision making and problem solving,
and participating in organizational projects. Additionally, through task delegation, manager and
employees can accomplish more tasks effectively and within a shorter period.

Managing
Employees and the managers also the owner has a different levels are responsible for
managing one or more business aspects. In their various roles, employees have the
responsibility to manage those processes that they are assigned to. For example, employees
working in the financial department are responsible for managing the financials of the company.
Managers and owners are responsible for managing the decision-making processes and
overseeing business operations for the best interest of the business.

Development

Both employees and the managers also the owner have the role of business developers. This
means that they have the responsibility of growing the organization, especially in terms of
profitability. The main objective or bottom line of business is to make profits. Additionally,
employees and managers are the greatest assets that make a business profitable. When
employees and managers neglect their roles and responsibility, then the profitability of a
business is substantially threatened.

Organization Chart

Ownership
The Cakery Catering is a personal located in Tomas Morato and can contact the Bookeeper or
you can contact the manager and the owner.

o Jovelyn Gavarra Owner

Operations
Marketing strategy

1. Clarify Business Objectives

Theres so much going on in the marketing arena today, everybody is struggling to keep up. At
the same time, every marketing professional feels pressure to be progressive and actively
integrate emerging media into their marketing program.

However, the mark of a good marketing strategy is not how many gadgets and neologisms are
crammed into it, but how effectively it achieves worthy goals. Therefore, how you define your
intent will have a profound impact on whether you succeed or fail.

2. Use Innovation Teams to Identify, Evaluate and Activate Emerging Opportunities

Marketing executives are busy people. They need to actively monitor the marketplace, identify
business opportunities, collaborate with product people and run promotional campaigns.

It is unreasonable to expect them to keep up with the vast array of emerging technology and
tactics, especially since most of it won't pan out anyway.

Therefore, it is essential to have a team dedicated to identifying emerging opportunities,


meeting with start-ups and running test-and-learn programs to evaluate their true potential.

Of course, most of these will fail, but the few winners will more than make up for the losers.

Once an emerging opportunity has performed successfully in a pilot program, it can then be
scaled up and become integrated into the normal strategic process as a viable tactic to achieve
an awareness, sales or advocacy objective.

3. Decouple Strategy and Innovation

Unfortunately, in many organizations, strategy and innovation are often grouped together
because they are both perceived as things that smart people do. Consequently, when firms
approach innovation, they tend to put their best people on it, those who have shown a knack for
getting results.

That's why, all too often, innovation teams are populated by senior executives. Because
innovation is considered crucial to the future of the enterprise (and also due to the institutional
clout of the senior executives) they also tend to have ample resources at their disposal. They
are set up to succeed. Failure, all too often, isnt an option.

So failure must be an option, which is why technologically focused venture capital firms expect
the vast majority of their investments to fail. However, failure must be done cheaply, so
resources and therefore senior executives must be kept to a minimum.

4. Build Open Assets in the Marketplace

The primary focus of marketing promotion used to be to create compelling advertising


campaigns that would get the consumers attention and drive awareness. Once potential
customers were aware of the product, direct sales and retail promotions could then close the
deal.

Employees Uniform
Production Plan

A carefully developed production plan will allow the Cakery to meet the following objectives:

Quality Minimize mistakes and provide your customer with the level of product and
service quality they require. Quality reduces cost in the long run and increases
dependability.
Speed React quickly to customer requirements. Increase the availability of your
product to meet your customer's requirements. Speed decreases both inventories and
risk.
Dependability Deliver your product or service with the quality required, when and
where the customer requires it. Dependability saves your customer time and money and
is critical in developing trust with your customers.
Flexibility Adapt to constantly changing customer demands. Make sure your planning
and production processes provide flexibility given changing types of product or services
and changes to product mix, volume and delivery.
CostEvery customer cares about cost relative to value. You need to develop an
efficient and waste-free supply chain to minimize costs. The other performance
objectives will affect costs.

Production planning is one of the planning functions that a firm needs to perform to meet the
needs of its customers. It is a medium-range planning activity that follows long-range planning in
such as process planning and strategic capacity planning. Firms need to have an aggregate
planning or production planning strategy to ensure that there is sufficient capacity to meet the
demand forecast and to determine the best plan to meet this demand.

What are the inputs to the production planning process?

To be able to perform the aggregate planning process, the following information should be
available to this production planning team. These data include the following:

Materials / purchasing Information

Operations / manufacturing Information

Engineering / process Designs

Sales, marketing and distribution Information

Financial and accounting information

Human resources information


How do you address the demand fluctuations?

There are three basic production planning strategies that the company can choose from to
address demand fluctuations. These are the (1) Chase Demand strategy, (2) Level Production
strategy, and the (3) Mixed Strategy.

Strategy Description
Demand Chase Matches the production rate to the order or demand rate
Strategy through the hiring and firing of employees as the order rate
varies
Level Production Maintains a stable workforce working at a constant production
Strategy rate with the shortages and surpluses being absorbed by any
of the following: Changing the inventory levels Allow
order backlogs (commit to the customer that you will deliver
the product at a much later date Employ marketing
strategies promotional activities
Mixed Strategy The strategies here could include combination of any of the
following: Having a stable workforce but employ variable
work hours (e.g., increase no. of shifts, flexible work
schedules or overtime) Subcontracting / outsourcing

Changing inventory levels

What are the important considerations in selecting the production planning strategy?

Demand Chase Strategy


Specific Methods Costs Remarks
Hire additional workers as Employment costs for Skilled workers may not be
demand increases advertising, travel, available when needed
interviewing, training, and
others

Shift premium costs if


additional shift is added
Lay off workers as demand Cost of severance pay & The company must have
decreases increases in adequate capital
unemployment insurance investment in equipment
costs for the peak work force
level
Level Production Strategy
Specific Methods Costs Remarks
Produce in earlier period Cost of holding inventory Service operations cannot
and hold until product is hold service inventory
needed
Offer to deliver the product Delay in receipt of Manufacturing companies
or service later, when revenue, at minimum; with perishable products
capacity is available company may lose often use this method
customers
Exert special marketing Advertising costs, Exemplifies the inter-
efforts to shift the demand to discounts, other relationship
slack period promotional programs
among functions within an
organization

Mixed Strategy
Specific Methods Costs Remarks
Work additional work hours Overtime premium pay The time available for
without changing the maintenance work without
workforce size interrupting production is
reduced
Staff for high production Excess personnel wages Work force may be used
levels so that overtime is not during period of slack for deferred maintenance
necessary demand during periods of low
demand
Subcontract work to outside Continuing company The capacity of other firms
firms overhead; subcontractor's can be utilized, but there is
overhead and profits less control of schedules
and quality levels
Revise make-or-buy Waste of company skills, These methods require
decisions to purchase items tooling and equipment capital investments
when capacity is fully loaded unutilized in slack periods sufficient for the peak
production rate, that will be
underutilized in slack
periods

Personnel and Customer Support

General Manager assists customer by giving them ideas on what is a suitable product for a
particular occasion or event they will celebrate also customer are very much welcome to go into
the store for inquiries about the information that they want to know. The staff also has the
freedom to explore or learn the entire work in the business.
Future Research and Development Plans

The term "research and development" is widely linked to the concept of corporate or
governmental innovation. Known as research and technical/technological development (RTD) in
Europe, activities that are classified as R&D differ from one company to the next, but standard
primary models have been identified. There are two basic R&D structures that have emerged in
companies throughout the commerce spectrum. One R&D model is a department that is staffed
primarily by engineers who develop new products, a task that typically involves extensive
research. The other model involves a department composed of industrial scientists or
researchers, all tasked with applied research in technical, scientific or industrial fields, which is
aimed at the facilitation of the development of future products or the improvement of current
products and/or operating procedures.

R&D is different from most activities performed by a corporation in the process of operation. The
research and/or development is typically not performed with the expectation or goal of
immediate profit. Instead, it is focused on long-term profitability for a company. Companies that
employ entire departments devoted to R&D commit substantial capital to the effort. They must
estimate the risk-adjusted return on their R&D expenditures, which inevitably involve risk of
capital, as no immediate payoff is experienced and the general return on investment (ROI) is
somewhat uncertain. The level of capital risk increases as more is spent on R&D.
Insurance Provision

Life Insurance Policies

Life insurance policies contain seemingly countless provisions, clauses and options that
determine the type and scope of coverage as well as what will happen if premium payments lag
or a claim is made. It is important to understand the provisions of the policy you have or any one
you're considering.

Incontestable Provision

With this provision, the insurance company may not contest any claims following a specific
period of time from the initiation of the policy. Of course, this is not a license to commit fraud
and the discovery of fraud will lead the company to contest any claims and possibly pursue
criminal charges.

Contingency Plans

Address all business-critical operations A good plan identifies all critical business
functions, and it outlines ways to minimize losses.
Identify risks For each of these functions, conduct a Risk Analysis to identify the
various risks that your business may face. What has the potential to significantly disrupt
or harm your business

The end result of a risk analysis is usually a huge list of potential threats: if you try to produce a
contingency plan for each, you may be overwhelmed. This is why you must prioritize.

Prioritizing risks One of the greatest challenges of contingency planning is making


sure you don't plan too much. You need a careful balance between over-preparing for
something that may never happen, and adequate preparation, so that you can respond
quickly and effectively to a crisis situation when it occurs.

Risk Impact/Probability Charts help you find this balance. With these, you analyze the impact
of each risk, and you estimate a likelihood of it occurring. You can then see which risks require
the expense and effort of risk mitigation. Business processes that are essential to long-term
survival like maintaining cash flow, staff support, and market share are typically at the top of
the list. Contingency planning is ignored in many companies. Day-to-day operations are
demanding, and the probability of a significant business disruption is small, so it's hard to make
time to prepare a good plan.

However, if you're proactive in the short term, you'll help ensure a quicker and more effective
recovery from an operational setback in the long term, and you may save your organization from
failure in the event that risks materialize.

Contingency planning requires an investment of time and resources, but if you fail to do it or if
you do it poorly the costs could be significant if a disaster happens.
Historical Financial Data

MONTHS SALES

JAN FEB 25,000 30,000

MARCH - APRIL 31,000 37,000

MAY - JUNE 37,000 43,000

JULY -AUG 43,000 49,000

SEPT - OCT 49,000 55,000

NOV - DEC 55,000-62,000

APPENDIX

Price list of competitors

Promotional brochures or advertisements that describe the product or service.

Sales
Publicity
Public Relation
Marketing
Promotion
Advertising
Catering
Business Plan

SUBMITTED BY: SUBMITTED TO:

JOVELYN U. GAVARRA PROF. AISHA BANUA