Total Demand

Historical Demand

The historical demand is computed based on the total number of students in

University of Mindanao Tagum College from school year 2016-2017 to 2018-2019. The

survey was conducted to only 665 students where 532 students responded positively

which is equivalent to 85% which means that it is the proportion of the whole student

population who are willing to purchase the proposed products. The data as what the

proponents have gathered gives the details of the prospective customers who can

consume at least 4 pieces a week. 4 pieces will be multiplied by 4 to get the demand

per month which is 16 which is then multiplied by 12 which results to 192 pieces per

year. Table 1 will show the historical demand of the population acquired from University

of Mindanao Tagum College.

Table 1

Historical Demand

Total No. of
Population Average Average
sticks
Year SHS and percentage of consumption
consumed per
College client (85%) per month
year

2016 18537 15756 16 3025152

2017 16505 14029 16 2693568

2018 17576 14940 16 2868480

Projected Demand

Table 2 presents the projected demand for the next three (3) consecutive years.

The average increase is computed using the moving average method reflected in Annex

A.

Table 2

Projected Demand

Average Number Average No. of

Year Based Year
Increase % Sticks per Year

1 2868480 8.73 3118898

2 3118898 8.73 3391177

3 3391177 8.73 3687226

Total Supply

Historical Supply

At the prospective location of the proponents for the proposed business, there

were others of the same operation which will be considered as its competitors. They

were asked for some information which are the bases of the proponents in estimating

their projected supply. The details will be presented in Table 3.

Table 3

Historical Supply

Competitor 2016 2017 2018

Cart 1 300000 310000 320000

Cart 2 240000 250000 260000

Total 540000 560000 580000

Projected Supply

Table 4 shows projected supply for the next three (3) consecutive years.

Table 4

Projected Supply

Average Projected
Year Based Year
Increase Supply

1 250000 3.64 259100

2 259100 3.64 268531

3 268531 3.64 278306

Demand and Supply Analysis

Table 5 shows the demand and supply analysis for the three (3) consecutive

years using the historical and projected pieces of demand and supply.
Table 5

Demand and Supply Analysis

Unsatisfied
Year Demand Supply
Demand

Historical

2016 3025152 540000 2795152

2017 2693568 240000 2453568

2018 2868480 250000 2618480

Projected

1 3118898 259100 2858248

2 3391177 268531 3119423

3 3687226 278306 3403895

Market Share

The market share is computed based on the total production capacity of the

proposed business. The proponents assumed that they are capacitated in producing

31.68% of the total unsatisfied demand.

Chapter 4

Production Plan

Production Process

Since the proposed business is already acquainted to the community, it will be

saleable to its target market. There is a higher possibility that the business will have a

greater sales volume and an increase in producing the products. In terms of quality, the

proponents make sure to the public that the products are properly cooked to avoid food

poisoning, maintains clean and order since it is a food business and can satisfy

starvation of the customer.

The production process of the proposed business would be: first, to purchase all

the raw materials and necessary ingredients from the market. Lay slices of banana on a

wrapper. Spoon a few teaspoons of langka over the slices. Wrap the turon by folding

the top and bottom of the wrapper toward the middle.

Heat the oil and

Lay the turon in the oil. Halfway through the frying process, turn the rolls with a pair of

tongs. Remove the rolls when they are golden brown. Combine the ingredients in a

saucepan. To make the syrup, all you need is brown sugar and water. Place 1 cup of

sugar and 3/4 cup water in a saucepan and stir the mixture.

Cook the syrup and pour it over the turon.

 Procurement of the necessary ingredients.

Separate lumpia wrapper one by one (if you haven’t

done so) and set aside.

Peel banana and slice in half horizontally to make 8

half slices.

Make a flour paste for sealing the turon by mixing flour and
water in a small prep bowl.

Lay lumpia wrapper flat like a diamond shape with one corner
towards you. Place one slice of banana about an inch from the
bottom

Fold once in an upward direction.

Fold the sides like an envelope.

Roll one more time then wet the top end with flour paste, then
seal. Set aside and Repeat steps 4-7 until you finish wrapping all
8 pieces.

Figure 3. Production Process of Turon

Tools and Equipment

Table 10 shows the tools and equipment needed in the business operation. The

very important consideration is to buy a good quality tools and equipment to avoid delay

of operations.

Table 10

Tools and Equipment

Particulars Quantity Unit Cost Total Cost

Frying Pan 1 700.00 700.00

Knife 1 500.00 500.00

Kitchen Tong 1 150.00 150.00

Cooking Spoon 1 200.00 200.00

Plate 1 150.00 150.00

Prep Bowl 1 300.00 300.00

Rolling Store 1 20000 20000

Cutting Board 1 150.00 150.00

Total

Depreciation

Table 12 shows the depreciation expense of the tools, equipment, furniture and

fixtures and a particular item in store supplies. Each item has an economic life span and

proponents used straight line method for depreciation.

 Table 12

Depreciation and Amortization

Estimated
Particulars Amount 2019 2020 2021
Useful Life

Tools and

Equipment

Rolling Store 20,000.00 5 4,000.00 4,00.00 4,000.00

Frying Pan 700.00

Knife 500.00

Kitchen Tong 150.00

Cooking
200.00
Spoon

Plate 150.00

Cutting Board 150.00

Prep Bowl 300.00

Sub-Total

Store

Supplies

Burner 2,000.00 3 666.67 666.67 666.67

Sub-Total 2,000.00 666.67 666.67 666.67

Total 4,866.67 4,866.67 4,866.67

Sources of Equipment

The equipment to be used in the proposed business will be acquired within

Tagum City.

Planned Capacity

Regarding the plan about the location and price, the proponents selected their

location at UM Tagum College at Tagum City because it has a large number of

population of students and a small number of competitors in turon. They are confident

that their products and services will be satisfying. Their pricing policy will be reasonable

so their target customers will easily get. The proponents believe that they have a

maximum capacity of 300,000 sticks per year. Given the rate of 17.50% and 82.50%

based on the survey it gives the result of 52,500 and 247,500 respectively.

Table 13

Planned Capacity

Production Capacity per

Products
Year

Turon

Total 300,000
Terms and Conditions of Purchase Equipment

It has a 2 year warranty and if the said equipment has factory defect. It can be

returned to the store within 1 month where they purchase it and the store will replace it

immediately.

Cost of Direct Materials

Presented in Table 14 is the cost of purchase of grilled banana and banana cue

supplies to be sold for 1 year. This is expected to increase by 2% per year based on the

conducted interview.

Table 14

Cost of Direct Materials

Quantity Per Cost

Particulars Description Total Cost
Year Per Unit

Banana Kilo 55800 12.00

Lumpia Wrapper Kilo 24 70.00 1,680.00

Brown Sugar Kilo 2338 48.00 112,224.00

Canola Oil Kilo 298 58.00 17,284.00

Flour Kilo 600 48.00 28,800.00

Water Galloon 3,400 10.00 34,000.00

Total 683,588.00
Projected Cost of Direct Materials

Table 15 shows the annual projected cost of raw materials. It is assumed that the

cost will increase by 2% every year due to unpredictable events.

Chapter 5

ORGANIZATION AND MANAGEMENT PLAN

Form of Business Enterprise

The business shall be registered as Turon for you which is located at UM Tagum

College, Tagum City. The type of business will be a sole proprietorship business and

this only lies in the hands of the owner. The decision making is easy because there is
no intervention by the other and can enjoy the profit solely but suffers the losses

incurred. The proponents believe that sole proprietorship is better for this business.

Management and Organization Structure

The owner/manager is the one who will supervise the operation of the business.

Moreover, the business also needs a cook who will be assigned in frying the products

and a sale’s personnel to take care of the customers and assist the cook. Figure 5

shows the organizational structure of the business.

 Owner/Manager

Bookkeeper

Cook Sales Personnel

Figure 5. The Organizational Structure

Management Qualifications and Functions

The table below shows the qualifications and responsibilities of each personnel

of the business which shows their ability to meet the needs of the business to operate

effectively and efficiently.

Position Qualifications Responsibilities

*Male or Female

*20 to 30 years old The cook is responsible in the

Cook *Knows how to cook preparation and management of the

*Good at multitasking entire process of cooking the products.

*Male or Female

*20-30 years old

*with pleasing personality The sales personnel is responsible in

Sales *good at handling accommodating customers, accepting

Personnel customers payment and sometimes helping the

*can work under pressure cook in a sudden hectic times.

*trustworthy
Chapter 6

FINANCIAL PLAN

Financial Aspect

When organizing a business, it is necessary to determine whether the proposed

business will be feasible and profitable.

Major Assumption

1. The market share is assumed to be 31.66% of the total projected unsatisfied

demand.

2. The promotional expense is assumed to increase by 3% per year.

3. The selling price is assumed to increase by P1.00 per year.

4. Moving Average Method was used in computing projections.

5. Straight Line method was used in the computation of depreciation.

6. Direct labor will increase by 2% per year.

7. Salaries Expense will increase by 2% per year.

8. Daily purchasing of raw materials.

9. Raw materials will increase by 2% each year.

10. Utility expense will increase by 3% each year.

11. Business permit and tariffs will increase by 2% per year.

12. The business will operate 5 days a week and 10 months per year. Only during

school days.

13. Store supplies expense will increase by 2% per year.

14. The owner withdraws 50% of the income.