FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

A Business Research Paper Entitled

MULTI-PURPOSE PAPER

In Partial Fulfillment Of The Requirements

For The Degree Of Bachelor Of Science

In Business Administration

By:

Banhag, Alicia Lorraine

Bautista, Ma. Naomi Ida

Buenaventura, Jesline

Cenizal, Maridelle

Chua, Haidee

Dela Cruz, Beatina Denese

Fajutnao, Alelie Kim

Libuit, Hannah Paula

December 2, 2018
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY...................................................................................... 3

2. INTRODUCTION .................................................................................................. 4

FORM OF BUSINESS.......................................................................................... 4

COMPANY PROFILE AND LOGO ....................................................................... 4

INDUSTRY ........................................................................................................... 5

PRODUCT HIGHLIGHTS..................................................................................... 6

3. MANAGEMENT ASPECT .................................................................................... 7

BUSINESS MODEL ............................................................................................. 7

ORGANIZATIONAL STRUCTURE ...................................................................... 9

MANAGEMENT AND PERSONNEL .................................................................. 10

INTELLECTUAL PROPERTY ............................................................................ 10

4. OPERATION AND PRODUCT ASPECTS ......................................................... 13

KEY BUSINESS OPERATIONS ........................................................................ 15

PRODUCT CONCEPT ....................................................................................... 15

PRODUCTION REQUIREMENTS AND PROCESSES...................................... 15

PACKAGING ...................................................................................................... 16

QUALITY CONTROL AND SAFETY MEASURES ............................................. 17

5. MARKETING ASPECT....................................................................................... 17

MARKET ANALYSIS .......................................................................................... 20

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 SWOT ANALYSIS .............................................................................................. 23

MARKETING MIX .............................................................................................. 23

COMPETITOR’S ANALYSIS .............................................................................. 27

MARKET RESEARCH ....................................................................................... 30

6. FINANCIAL ASPECT ......................................................................................... 33

7. SOCIO ECONOMIC ASPECT ............................................................................ 35

SUSTAINABLE COMMUNITY ........................................................................... 35

8. APPENDICES .................................................................................................... 35

9. LIST OF TABLES AND FIGURES ..................................................................... 40

10. REFERENCES ................................................................................................ 40

IF YOU HAVE MORE INSERTS OR ADDITIONAL DATA, CLICK TABLE OF

CONTENTS AND UPDATE

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1. EXECUTIVE SUMMARY

Committed in contributing a safer environment for all, Lily Cane Corporation engages
in a business of recycling waste materials such as Bagasse or Sugar cane remains
and Water lily. These wastes are turned into an environment friendly paper which can
be used in the production of different products such as paper bags, boxes, and
scrapbooks to be sold at a very affordable price. As different organizations are
seeking to prevent the usage of plastics and deforestation, the company is in full
advantage as it supports the goal it wants by replacing plastic products by paper ones
as well as using wastes as a substitute for cutting trees.

The location of the business is in Nasugbu, Batangas as it is near the location

of the suppliers. This is to lessen freight costs as well as the travel time for the
procurement of raw materials. Moreover, the channel of distribution is Business to
Business or commonly known as B2B strategy in selling the products. The target
market are the factories of paper bags, paper, scrapbooks, and any other companies
which produce products made solely from paper. With that, the company aims to
produce high-quality paper in order to satisfy its consumers as well as the end-users
of the product.

The main objective of the company is to provide a better solution for restoring
the environment. It seeks to fulfil its vision and at the same time, save the
environment that has been slowly destroyed as time passes. The shifting of different
industries like packaging companies to the use of paper from plastics actually gives a
probability of the paper succeeding in the market. On the other hand, the sponsored
community that the company has chosen is Pulang Bato, San Nicolas, which is
considered to be one of the poorest barangays in the scope of Batangas City. This is
to provide them with different job opportunities, education, and other sources of
income. The company provides support not just to the environment, but also to
people.

3
2. INTRODUCTION

FORM OF BUSINESS

Lily Cane Co. is classified as a corporation. It is defined as an artificial being created

by the operation of law, having the right of succession and the powers, attributes and
properties expressly authorized by law or incident to its existence. (De Leon, 2016).
The company aspires to create a long-term relationship with its partners, as well as
its customers by showing them that purchasing a product of Lily Cane Co. is truly
worth buying.

COMPANY PROFILE AND LOGO

The company logo represents the mission and vision of the company. The three
sugar cane images are inspired with the reduce, reuse and recycle symbol. The water
lily is placed at the center because the use of it is to strengthen the product as well as
the company. The color green represents the dedication of the company to promote
eco-friendly products that will have a big impact to the environment. The color violet
represents the awareness of what is happening to our environment. Lastly, the color
white at the center of the water lily represents the company’s pure intention to give
quality and safe paper products to our customer.

Figure 1 Company Logo

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INDUSTRY

 Sugarcane Industry

Sugarcane has been a predominant crop in the Philippines. It is the main crop used
to produce sugar, paper as well as biofuel. Having 29 operating raw mills and a
crushing capacity of 185,000 ton cane per day, it is no surprise that sugarcane is a
major production in the country. As stated in Sugar Regulatory Administration,
Philippine Sugarcane Industry contributed to no less than 70 billion in our economy
annually and is planted on 422,500 hectares of land in the provinces. It is produced
by 62,000 farmers and it is a crop that is majorly exported. Sugarcane can also be
located across the Philippines especially in the Negros Island Region.

 Paper Industry

According to industry.gov.ph, the most profitable business in the country is the paper
and pulp industry. Its total annual demand has been growing 2.5% per year and
paper and board products are projected to surpass 2 million tons within five years.
With Philippines’ recent strong economic performance, it has been said that there
have been a steady demand for packaging materials especially for the container
board and carton board which have been used by the Filipinos for centuries. But
since the Philippines are now adopting a more environment-friendly lifestyle,
companies are now starting to think of ways to innovate their paper product as an
alternative to make packaging such as meal boxes, paper bags and many more and
be distributed to different retailers.

In the Philippines, there has been a lot of companies producing paper like Paper Link
Incorporated, Van Hawk Paper Philippine Co., Star Paper Corporation, Trust
International Paper Corporation and many more.

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 Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Figure 2 Market Share

The figure above is just an example for listing purposes only. You may choose to
delete if you have nothing to include such.

PRODUCT HIGHLIGHTS

Type your description here.

Description

Figure 3 Product Features

6
3. MANAGEMENT ASPECT

BUSINESS MODEL

Lily Cane Company is using a Direct Sales model whereby it enables the company to
be flexible in producing the product as well as distributing it to them. Through the help
of direct selling, it can establish a good foundation for the supply chain, starting from
the manufacturer (Lily Cane Co.) up to the different channels.

According to Alan Gleeson, Chief Marketing Officer and Consultant of B2B, while
direct selling was initially the primary ‘route to market’, production efficiencies coupled
with improvements in transportation meant producers could reach a much bigger
market and this resulted in the pre-eminence of the retail distribution model for many
years. However the emergence of the Internet as a distribution channel meant that
producers could disintermediate costly resellers and sell direct to customers
themselves, in effect going the full circle.

VALUE CUSTOMER
KEY PROPOSITIO RELATIONSHI CUSTOME
KEY PARTNERS ACTIVITIES N PS SEGMENT

Central Azucarera The finished The company Aligned with Lily The
= provides the product will offers aCane’s mission company
bagasse be distributed product that is and vision the primarily
to different surely made company always offers the
packaging from recyclable value the products to
companies in materials tocustomers by the valued
Brgy. Balakilong, the ensure the means of giving customers
Laurel, Batangas Philippines quality and the them the who are
City, Pico De Loro, which is Lily safety of the commitment in under the
BASECO Cane’s user. ensuring that sector of
Livelihood potential the process of packaging
Operations Center, target market. To produce the production is Industry.
Laguna De Bay = With the wide and deliver an monitored
provides waterlilie range of environment- properly and the
distribution, friendly paper distribution of

7
s it'll not be and to help the
hard to reach reduce the environment-
out to cutting of trees friendly paper is
consumers. and resort to always complied
the use of on time.
sugarcane
remains/bagas
se and water
lily in order to
uphold the
sustainability of
the community
and to promote
a cleaner
environment.

KEY CHANNELS
RESOURCE
S

Sugarcane The place of the

(Bagasse) business is
located in Brgy.
Aga, National
Highway,
Waterlilies Nasugbu
Batangas where
the suppliers are
near and
accessible.

COST STRUCTURE REVENUES STREAMS

One of the advantage in the production of Lily Lily Cane Company is offering
Cane’s paper is that the company are able to P150 for 9m x 2.5m for the paper.
produce tons of output with a minimum cost per The company also offer discounts
unit due to the free or cheap acquisition of the to those who will avail bulk-orders.

8
raw materials that is needed for the production.

Figure 4 Business Model

ORGANIZATIONAL STRUCTURE

9
 Figure 5 Organizational Structure

MANAGEMENT AND PERSONNEL

This includes jobs, duties, and responsibilities of each employee as well as how much
they are going to earn every month. A record of the important activities involved in the
performance of a task will be used to evaluate and classify the jobs of employees.

10
 Job Title Job Description Job Specification Salary
(per month)

 Responsible in  College Graduate of any

President managing the overall business related course. P 35, 000
direction of the  Preferably MBA graduate in
company. Administrative Business.
 Responsible in  Must have at least 5 years
providing information of working experience.
to the Board of  Must have strong leadership
Directors. and interpersonal skills

 Responsible for  Must be a graduate of

Marketing developing marketing Bachelor’s degree major in P 25, 000
Manager strategies as well as Marketing Management or
implementing it to BA Communication
attract customers.  Must have good leadership
 Responsible in skills
analysing market  Excellent Communication
trends. skills
 Must have at least 3 years
of experience

 Responsible in  Must be a graduate of

Productions implementing and Bachelor’s degree major in P 25, 000
and developing Operations Management
operations policies  Must have at least 3 years
Operations and procedures. of experience
Manager  Responsible in  Excellent communication
organizing the skills
storage and  Must have leadership skills
distributing goods as
well as ensuring the
right products are
delivered to the
consumer and
retailer

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  Responsible in hiring,  Must be a graduate of
HR Manager orienting and training Bachelor’s degree major in P 25, 000
employees and staff Human Resource
Management or Psychology
 Must have at least 3 years
working experience
 Strong communication skills
and Interpersonal skills

 Responsible in  Must be a graduate of

Finance management of Bachelor’s degree in P 25, 000
Manager financial decisions Financial Management or
Accountancy
 Must have 3 years of
working experience
 Must have the ability to
review data and make
relevant management
decisions
 Strong knowledge of
financial reporting

 Responsible for  Must be atleast high school

Raw getting and buying graduate. P15,000
Materials & raw materials from  Must be willing to perform
the supplier repetitive tasks
Purchasing  Good communication skills
Officer  Must have a driver’s licence

 Responsible for  College graduate with a

Chemical retrieving, weighing degree in Chemical P23,000
Controller and mixing chemical Engineer
ingredients.  Must have an
 Monitor’s the understanding of chemical
equipment during the process
chemical process  Must have an aptitude for
and assist in the mechanics
improvement and  Strong communication and
processing of interpersonal skills
products.  Must be willing to comply
with safety and quality

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 regulations.
 Must have 1-3 years of
working experience

 Can perform  High School Diploma

Machine necessary operation  Knowledge of Production P6,000
Operator activities to ensure Procedures
proper equipment  Ability to Read Blueprints,
start-up and Schematics and Manuals
handling.  Attention to Detail
 Can operate and
monitor multiple
pieces of equipment
during operation to
ensure quality
production and
minimal unplanned
stops.

 Responsible for  High School Diploma

Factory making, packaging,  Have a strong hand-eye P6,000
Worker labelling and coordination and attention
weighing the items. to detail
 Checks for defective  Must be skilled with
items to ensure all mechanics
items are in good  Must be willing to perform
condition repetitive tasks
 Can successfully work in
teams
 Can follow verbal and
written instructions.

For employee with high school diploma only: Minimum Wage = P 300 x 5 working
days x 4 weeks = P 6,000 per month

INTELLECTUAL PROPERTY

Following the Republic Act 8293, the Intellectual Property Code of the Philippines,
Lily Cane Co. shall own all rights, title and interest, that is applicable and is included
in the intellectual property rights of the product. And also by extension, all the
services, ideas, suggestions or any information provided by the company.

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Lily Cane Co. is the only manufacturing firm in the Philippines that uses bagasse and
water lily as components of paper. Its goal is not limited to earning revenues but also
to promote awareness regarding the conservation of the environment for the present
and future generations to come.

The company name, logo, and all the trademarks is exclusively owned and no right to
be used by other organizations or company.

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4. OPERATION AND PRODUCT ASPECTS

Write your description here.

KEY BUSINESS OPERATIONS

Use the 9 Building Blocks.

text

Figure 6 Key Business Operations

PRODUCT CONCEPT

Problem: Pollution from plastic wastes or Deforestation

Opportunity: Reducing the use of paper made out of wood pulp by making an eco-
friendly paper from sugarcane pulp or bagasse and water lily. It also seeks to lessen
the emerging problem about deforestation.

PRODUCTION REQUIREMENTS AND PROCESSES

description

15
 Table 1 List of Product Requirements

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue
massa.

Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit amet
commodo magna eros quis urna. Nunc viverra imperdiet enim.

Figure 7 The Process

PACKAGING

Lily Cane Co.’s finished paper product will be wrapped to hold all papers together.
The wrapper will include Lily Cane Co.’s logo just like the cardboard box. The
cardboard box will ensure the paper is to be transported safely to the customer as
well as lessen the carbon footprint.

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 Figure 8 The Packaging

QUALITY CONTROL AND SAFETY MEASURES

 Overview

Lily Cane Co. ensures to offer high quality product along with having the safety of its
consumers in mind. All of our products are designed and manufactured according to
the consumers’ preference.

 Regulations

These Rules and Regulations are aligned with Food and Drugs Administration’s
guidelines for Current Good Manufacturing Practices

(1) The vicinity of the facility must be free litter or other waste material that
could affect the raw materials and other ingredients.

(2) The equipment should be durable, repairable, and cleanable. Equipment

and other tools must be clean and well-maintained (to prevent contamination)

(3) Sanitary facilities must have proper water supply, plumbing, and appropriate
sewage disposal. A separate facility for eating, toilet, hand washing, and
disinfection is required.

17
 (4) Employees are required to have a clean protective clothing including
footwear that should be made available to them if entering the processing area.
Manage physical, chemical, and biological hazards by using screening devices
like filters, metal detectors, or sieves.

(5) Raw material requirements, the quality must be acceptable, specifications

must be identified and applied, stock rotation should be practiced (first in, first
out)

(6) Warehouses should be kept free from all pests and all storage premises,
inside or outside, must be kept clean at all times

 Quality Management

Lily Cane Co.’s paper made from bagasse with water lilies is a substitute to the usual
paper product. We commit to our consumers and have aligned our own business
principles which is to always give a quality service and always measure the safety of
our product.

Lily Cane Co. will provide the best quality recyclable paper. The company promises
their consumers that the quality of their products is fulfilled through a consistent
management of the equipment and supplies to be used prior to the making of the
actual product. The materials that will be used for the production is acquired from a
trusted supplier only.

The system covers the different procedures and responsibilities for defining,
measuring, identifying, analysing, controlling and improving of the company’s core
processes in order to deliver to the consumers a sustainable product that they
deserve.

Safety Performances

18
The recyclable paper is arranged and created considering the concerns of consumers
and environment. The product is to be tested and examined by a chemical engineer
in order to determine if the ingredients will mix safely and if the product will not have a
side-effect on the health of the consumers. The manager will always check if the staff
puts in the right dosage of the chemicals to be used, or if the kilograms is sufficient
for the machine’s target production. The company will also implement numerous
policies on maintaining a clean and safe workplace including wearing safety clothes
like mask, safety goggles, gloves, etc. when inside the facility. If not followed,
sanctions will be provided in order to guarantee the compliance of everyone.

Feedbacks will also be reviewed to know defective equipment and fix it on the next
process.

19
5. MARKETING ASPECT

description

MARKET ANALYSIS

description

HISTORICAL DEMAND

Write your description, briefly.

Chart Title
6
5
4
3
2
1
0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3

Figure 9 Historical Demand

PROJECTED DEMAND

deacription

20
 Chart Title
6
5
4
3
2
1
0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3

Figure 10 Projected Demand

HISTORICAL SUPPLY

deacription

Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Figure 11 Historical Supply

PROJECTED SUPPLY

You may choose the right diagram for your data. deacription

21
 Chart Title
6

0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3

Figure 12 Projected Supply

DEMAND AND SUPPLY GAP ANALYSIS

deacription

Chart Title
6
5
4
3
2
1
0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3

Figure 13 Demand and Supply Gap Analysis

PROJECTED SALES

22
deacription

Chart Title
6
5
4
3
2
1
0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3

Figure 14 Projected Sales

SWOT ANALYSIS

STRENGTHS WEAKNESS

Affordable Price Low brand perception

Environment-friendly New entrant in the market

Convenient and accessible location for Established brand reputation of

the suppliers competitors

OPPORTUNITIES THREATS

Expansion of Product lines Popular Products of Competitor

Product customization (can add different Customers loyalty to a specific brand

colors and scent)
Government Regulations
Innovation of current product (Paper)
Cheaper Prices of Competitor
Exporting product to international markets

23
Strengths

 Affordable Price

Price is a very important factor that a consumer considers before buying a product.
This is why one of the considered strengths and competitive advantage of Lily Cane
Co. is its affordability. As a contrast to the belief in economics that the higher the
price the higher the quality, the paper to be produced assures to be less expensive
but is good in terms of the quality.

 Environment friendly

Lily Cane Co.’s product uses ingredients that is not harmful to the environment and to
its user. The product consist of bagasse and water lily which are considered as waste
when not in used. By recycling it, it would limit waste as well as become useful.

 Convenient and accessible location for the supplier

The location of Lily Cane Co.’s factory is easily accessible and convenient for their
suppliers. The company wouldn't need to worry in terms of its supply of raw materials,
for it can be easily be obtained and wouldn't take long to be delivered due to its
proximity to the suppliers.

Weakness

 Low brand perception

One of the reasons why the business has low brand recognition is because it is new
in the industry and that it's hard to attract potential customers. Buyers tend to think
that the Lily Cane products are low quality because it is not yet known in the market.

 New entrant in the market

24
Lily Cane Co. is a new entrant in the market that is why it is hard to attract
prospective buyers.

 Established brand reputation of competitors

In the Philippines, there are known companies who produces paper products. They
have already established a brand reputation among all like having good quality
product, reliable supplier, etc.

Opportunities

 Expansion of Product Lines

Lily Cane Co. can expand the products for they can produce not only paper but can
be be extended to paper-related products like stationary, paper for arts and craft and
many more.

 Product customization

Lily Cane Co. can customize products that a customer wants, like modifying the
design, putting printed images, etc. Colors can be added using natural dyes and
scents using organic colorings.

 Innovation of current product

Lily Cane Co. will have the opportunity to innovate its product. Converting it to
different products like paper packaging which is not impossible with the advancement
of the technology that is very prominent and would be easier to innovate a product.

 Exporting product to international markets

Lily Cane Co. has the opportunity to supply international customers like International
Paper, WestRock, Stora Enso etc. in the future most especially companies that are
aligned with the vision of saving the environment.

25
Threats

 Popular products of competitors

Lily Cane has many competitors like Van Hawk Paper Phils Co., Paper Link
Incorporated, Star Paper Corporation and Best Buy Company, a well-established
brand that holds majority of the market share. These competitors also aims to
produce innovative products yearly which adds to the tension and probability of Lily
Cane’s slow progress in the market.

 Customer loyalty to a specific brand

It’s hard for Lily Cane to change their customers preference of a product. Most of the
time customers prioritize and tries a product that is well-known and suits their needs.
Customers sets high specification when finding a product and there is a chance that
Lily Cane does not meet their specifications. Because of that it will be a disadvantage
for Lily Cane Co. when it comes to attracting customers because there are very loyal
to a specific brand, unless the customers will try to find a suitable substitute.

 Government Regulations

In the Philippines, there are a lot of regulations and standards especially in the paper
industry. That is why Lily Cane Co. must be able to meet with the requirements
before producing a product and releasing it out to the public.

 Competitors offering cheaper price

Lily Cane Co. has competitors that offers the same product with a cheaper price.
Which is why it may be hard to sell if buyers think that their product is more expensive
than other established brands.

26
MARKETING MIX

Table 2 Marketing Mix

COMPETITOR’S ANALYSIS

27
 Figure 15 Porter's Framework

Threat of New Entrant (Moderate)

The paper manufacturing industry continues to grow. Due to the fast growing need for
paper like products, Paper has been a demand in the country.

Threats of Competitors (High)

28
The rivalry among existing competitors are high. Due to the steady growth of the
paper industry according to industry.gov.ph, Lily Cane faces a lot of established
competitors in the market. For its direct competitors, the Paper Link Inc. a brand
established in 1998 which is a manufacturer of quality paper products, second is the
Van Hawk Paper Phils Co., established since 1998 and currently has two mills in the
Philippines. These two are the direct competitors of Lily Cane. Next is the Indirect
Competitors of Lily Cane, First is the Star Paper Corporation, established since 1974
and is now a known distributor of various paper products, they also have different
affiliations with known companies here in the Philippines like Mongol, Sharpee,
Conqueror etc. Second is the Trust International Paper Corporation which is a major
player in the paper industry, A multi-billion peso company equipped with
technologically advanced paper machines, de-inking plants and environmental
management facilities. These two are considered indirect competitors for the reason
that they have a large market share in the Philippine paper industry.

Threats of Substitute (High)

There is a high threat of substitute for paper which are the technological devices that
has been booming now a days. Technology make our life easy, it has features for
people to take down notes as well as lessening the everyday expenses. It also help
lessen the use of trees in the production of paper but it negative effects to users who
use it for longer hours.

Bargaining Power of Buyers (Low)

The bargaining power of buyers is that they are the primary reason and source for
earning profit or incurring loss. Lily Cane Co.’s primary target market are the
packaging manufacturer and end users.

Bargaining Power of Suppliers (Moderate)

The suppliers of Lily Cane Co. are sustainable. One of the supplier is Central
Azucarera Don Pedro, Inc. who is willing to give us their bagasse to be used as
production. The supplier of water lily will come from Batangas and alternative supplier
would be Pico De Loro, Pasig River: BASECO Livelihood Operations Center and
Laguna De Bay.

29
MARKET RESEARCH

The researchers have decided that they will resort to B2B or “Business-to-
Business” in terms of choosing their target market. Companies like this usually deal
with resellers, business users and institutions. As the main product is paper made
from sugarcane pulp and water lily, the most appropriate market would be those who
are operating in the packaging industry. The firmness of the paper to be produced as
well as its recyclable nature is suitable as a material of a packaging. This also aims to
resolve some issues in the packaging industry more particularly the use of plastic
packaging. An article about the Paper Packaging Industry in the Philippines stated
that “the local pulp and paper industry is currently composed of 42 mills. Of these,
one (1) is a fully integrated pulp and paper mill, four (4) are purely pulp (abaca) mills,
and thirty seven (37) pulp and reclaimed fiber mills” which are the target market of
Lily Cane Corporation.

Selling these recyclable paper directly to consumers can be considered as

ineffective compared to businesses for the reason that consumers have a lower
tendency to use it in their daily lives. The B2B strategy can also be linked to a lot of
advantages like bulk orders that can constitute a larger revenue than per piece
orders. As a paper distributor, the size and volume varies directly to the target
production of the target market which is the packaging companies. In a recent article
entitled “The Advantages of Business-to-Business Vs. Business-to-People” by Roslyn
Frenz a professional writer in the field of business explained that the more products
made specifically for a certain company, the higher the chance of purchase and long-
term relationship with the supplier, and as part of the selling process, business-to-
business sellers may need to demonstrate their company’s ability to make products
according to the business buyers’ requirements. The owners of Lily Cane have
agreed that they would make sure that the paper to be delivered is of quality and their
feedbacks, recommendations will be acknowledged in order to assure the buyer that
their needs will always be prioritized.

30
 According to a research entitled “Paper Packaging Industry”, the paper
industry is composed mainly of large wood pulp and waste/recycled paper and small
abaca pulp mills. The difficulty of entering this market is attributed to the estimation of
Herfindahl-Hirschman index (HHI) an accepted measure of concentration in the
market, “High entry cost contributes primarily to high market concentration and the
capital-intensive nature of the industry clearly discourages entry by other firms, as it is
difficult to obtain needed facilities, raw materials and technology to begin production.
Packaging paper and board (composed of liner and other boards, Corrugating
medium and sack kraft) manufacturing is oligopolistic in nature – two big firms
accounting for 40% of the industry’s capacity. These are Paper Industries Corporation
of the Philippines (PICOP) and Manila Paper Mills.”

As stated by industry.gov.ph, the paper industry’s demand is steadfast growing

and is trying to serve the pulp and paper requirement of the country.

With Philippines now adapting an environmental friendly lifestyle as well as following

environmental regulations, the demand for paper increases while for plastics and
styrofoams are plummeting, creating a good investment opportunity for the paper
industry. Most specially that Asia is the leading producer and consumer of Paper &
Paperboard according to “Paper and Paperboard Production and Consumption by
Region (worldwide), 2014” done by CEPI Key Statistics.

Rice Straws, Bagasse, Banana, and Abaca are some of agricultural waste that
are available and not put into good use where it can be turned into paper and create
a variety of products like packaging, stationery, printings and many more. Not only
that it is seen as one of the most profitable industry but it also creates jobs for
country’s marginalized sectors.

31
According to Geganto, 2015, The Market Share of Paper per segment is being
dominated by Packaging P & B with 49% followed by Printing & Writing with 26%,
coming behind are newsprint, Tissue/Sanitaries and Other Paper and Board,

and are projected to grow in the year 2011-2016 by an increase of 3.5% in Packaging
P&B, 1% in Printing & Writing, 4% in Tissue or Sanitaries, 2% in Other Paper and
Board while a decrease of 2% for Newsprint.

Paper Link Incorporated and Van Hawk Paper Phils Co., which are the direct
competitors of Lily Cane C., are the known leading manufacturers of paper as well as
paper product. Both offers variety of choices for consumer to choose.

The results of the survey are the following:

32
6. FINANCIAL ASPECT

PAYBACK PERIOD

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posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit amet
commodo magna eros quis urna.

NPV

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massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

IRR

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massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

PROFITABILITY RATIO

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massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

LIQUIDITY RATIO

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massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

ACTIVITY RATIO

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Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue
massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

SOLVENCY RATIO

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massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

BREAK EVEN ANALYSIS

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massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero,
sit amet commodo magna eros quis urna.

34
7. SOCIO ECONOMIC ASPECT

meaning

SUSTAINABLE COMMUNITY

Images taken by: Left Image ©Ramon F. Velasquez; Right Image ©Cesar Cambay

The researchers have chosen Barangay Pulang-Bato that is located in Batangas city
as their sponsored community. According to Jeremaiah Opiniano in his article entitled
“Province’s poverty tracking: Nasugbu worst off in three indicators”, Pulang-Bato is
considered to be one of the poorest barangays in the whole city. To help them, the
company will make livelihood programs that would teach and help them in the near
future. The company will also ask for help from the people in barangays and some
volunteers who are willing to help teach the children every session to attain the
objectives of the modules.

35
8. APPENDICES

Ritch Multi Food Packaging Inc. (n.d.). Retrieved February 11, 2018, from

http://www.ritchmultifoodpackaging.com/

About Us. (n.d.). Retrieved February 11, 2018, from http://worldformphils.com/about-

us/

Paper. (n.d.). Retrieved February 17, 2018, from http://industry.gov.ph/industry/paper/

Casal, C. (2018, January 3). Ways to avoid plastic waste in 2018. Retrieved from
CNN Philippines: http://cnnphilippines.com/life/culture/2018/01/03/ways-to-avoid-
plastic-waste-2018.html

Paper. (n.d.). Retrieved May 2, 2018, from Securing The Future of Philippine
Industries: http://industry.gov.ph/industry/paper/

Roth, S., Zetterberg, L., AcWorth, W., Kangas, H.-L., Neuhoff, K., & Zipperer, V.
(2016, May). The pulp and paper overview paper: sector analysis for the climate
strategies project on inclusion of consumption in carbon pricing. Retrieved from
Climate Strategies:
https://www.diw.de/documents/dokumentenarchiv/17/diw_01.c.534645.de/cs-pulp-
and-paper.pdf

Marketing, G. (n.d.). Helping foodservice businesses enhance front-of-house

presence while improving their operations, brand, and profits. Retrieved February 17,
2018, from https://blog.get-melamine.com/eco-friendly-alternatives-to-styrofoam-
disposable-food-containers

The Philippine Sugarcane Industry: Challenges and Opportunities. Retrieved

February 18, 2018, from Sugar Regulatory Administration:
https://www.sra.gov.ph/the-philippine-sugarcane-industry-challenges-and-
opportunities/

36
Sadongdong, M. A. (2017, October 28). Packaging industry development pushed to
ensure food security, boost SMEs. Retrieved February 18, 2018, from Manila Bulletin:
https://news.mb.com.ph/2017/10/28/packaging-industry-development-pushed-to-
ensure-food-security-boost-smes/

Science, J. o. (2007, April 1). Food Packaging -- Roles, Materials, and Environmental
Issues. Retrieved February 18, 2018, from IFT: http://www.ift.org/knowledge-
center/read-ift-publications/science-reports/scientific-status-summaries/food-
packaging.aspx

(n.d.). Retrieved February 18, 2018, from

http://www.lawphil.net/statutes/repacts/ra2010/ra_10068_2010.html

Muncke, J. (2012, October 5). Food packaging materials. Retrieved from Food
Packaging Forum: https://www.foodpackagingforum.org/food-packaging-health/food-
packaging-materials

2017 New Paper Plate Making Machine / Paper Clamshell Production Line - Buy
Plate Making Machine,Clameshell Production Line,Paper Plate Making Machine
Product on Alibaba.com. (n.d.). Retrieved March 09, 2018, from
https://www.alibaba.com/product-detail/2017-New-Paper-Plate-Making-
Machine_60653158682.html?spm=a2700.details.maylikever.10.349647afQV2R2K

Poopak, S., & Reza, A. R. (2012, September 19). Environmental Benefit of Using
Bagasse in Paper Production - A Case Study of LCA in Iran. Retrieved February 27,
2018, from https://www.intechopen.com/books/global-warming-impacts-and-future-
perspective/environmental-benefit-of-using-bagasse-in-paper-production-a-case-
study-of-lca-in-iran#F3

Al-Sulaimani, K. and Dwivedi, P. B. (2017) “PRODUCTION OF HANDMADE

PAPERS

37
FROM SUGAR CANE BAGASSE AND BANANA FIBERS IN OMAN”, International
Journal of Students’ Research in Technology & Management, 5(3), pp. 16-20. doi:
https://doi.org/10.18510/ijsrtm.2017.534.

Austria, C. T. (2008). Forest Products Technoflow(4th revision) (E. R. Barile & A. G.

Torres, Eds.). Laguna 4031, Philippines: FOREST PRODUCTS RESEARCH AND
DEVELOPMENT INSTITUTE DEPARTMENT OF SCIENCE AND TECHNOLOGY.

ABOUT US. (n.d.). Retrieved February 28, 2018,

from http://www.motherearthphil.org/2010/08/about-us.html

Geganto, R. N. (n.d.). Roadmap for the paper industry in philippines (2014-2020).

Retrieved May 2, 2018, from Philippine Paper Manufacturers Association Inc.
(PPMAI): http://industry.gov.ph/wp-content/uploads/2015/05/2nd-TID-Mr.-Gegantos-
Presentation-on-Paper.pdf

http://ap.fftc.agnet.org/ap_db.php?id=93&print=1

(n.d.). Retrieved February 18, 2018, from

http://www.lawphil.net/statutes/repacts/ra2001/ra_9003_2001.html

https://www.explast.mu/what-are-the-advantages-of-carton-box-packaging/

http://www.euromonitor.com/packaging-industry-in-the-philippines/report

https://www.theatlantic.com/national/archive/2012/08/the-surprising-history-of-the-
milk-carton/260587/

http://smallbusiness.chron.com/example-product-concept-statement-13051.html

https://www.business.qld.gov.au/starting-business/planning/market-customer-
research/basics/included

38
(n.d.). Retrieved February 11, 2018, from
http://www.primepackaging.com.ph/index.html

https://www.facebook.com/Greenpak-Enterprises-374309626041025/. (n.d.).
Retrieved

February 11, 2018, from http://greenpak.ph/

(2017, July 01). Retrieved February 17, 2018, from https://psa.gov.ph/non-

food/sugarcane

(n.d.). Retrieved February 18, 2018, from PEF Ph: http://pef.ph/wp-

content/uploads/2016/03/Industry-Study_Cane-Sugar.pdf

39
9. LIST OF TABLES AND FIGURES

FIGURE 1 COMPANY LOGO............................................................................................. 4

FIGURE 2 MARKET SHARE ............................................................................................. 6
FIGURE 3 PRODUCT FEATURES ...................................................................................... 6
FIGURE 4 BUSINESS MODEL ........................................................................................... 9
FIGURE 5 ORGANIZATIONAL STRUCTURE ...................................................................... 10
FIGURE 6 KEY BUSINESS OPERATIONS ......................................................................... 15
TABLE 1 LIST OF PRODUCT REQUIREMENTS .................................................................. 16
FIGURE 7 THE PROCESS ............................................................................................. 16
FIGURE 8 THE PACKAGING .......................................................................................... 17
FIGURE 9 HISTORICAL DEMAND .................................................................................... 20
FIGURE 10 PROJECTED DEMAND.................................................................................. 21
FIGURE 11 HISTORICAL SUPPLY ................................................................................... 21
FIGURE 12 PROJECTED SUPPLY ................................................................................... 22
FIGURE 13 DEMAND AND SUPPLY GAP ANALYSIS .......................................................... 22
FIGURE 14 PROJECTED SALES ..................................................................................... 23
TABLE 2 MARKETING MIX............................................................................................. 27
FIGURE 15 PORTER'S FRAMEWORK .............................................................................. 28

40
10. REFERENCES

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