A PROPOSED MANUFACTURING AND DISTRIBUTION OF

WILLOW
_____________________

A Business Plan presented to

The Faculty of College of Commerce
University of San Jose- Recoletos
Cebu City, Philippines

______________________

In partial Fulfillment
of the Requirements for the Degrees
BACHELOR OF SCIENCE IN ENTREPRENEURSHIP and BACHELOR OF
SCIENCE IN BUSINESS ADMINISTRATION- GENERAL

____________________

By

ALBINO, UNICA JANE C. MANOS, ALJUN J.

BENARAO, SHIELA MAE S. PEREZ, CHERRY P.

FERNANDEZ, SHAIRA MAE T. SANTANDER, SHEIRA RICA R.

HELAR, CYCYBY XAVIER P. VIGIL, ANNA MARIE L.

OCTOBER 2019
 APPROVAL SHEET

In partial fulfillment of the requirements for the degree of Bachelor of Science in

Business Administration- General and Bachelor of Science in Entrepreneurship,

the business plan entitled, “A PROPOSED MANUFACTURING AND

DISTRIBUTION OF WILLOW”, has been prepared and submitted by the following

students:

ALBINO, UNICA JANE C. MANOS, ALJUN J.

BENARAO, SHIELA MAE S. PEREZ, CHERRY P.

FERNANDEZ, SHAIRA MAE T. SANTANDER, SHEIRA RICA R.

HELAR, CYCYBY XAVIER P. VIGIL, ANNA MARIE L.

These students are hereby recommended for oral examination.

YOUNGLIN J. HITUTUANE, MBA

Adviser

ACCEPTED as partial fulfillment of the requirements for the degrees of Bachelor

of Science in Business Administration- General and Bachelor of Science in

Entrepreneurship.

MR. JOSHUA C. ABABON, JR., MBA DR. EDGAR R. DETOYA, CPA

Chairman, Business and Ent. Dep’t Dean, College of Commerce

APPROVED by the tribunal at the Oral Examination with the grade of _______

ROSEMARIE V. JACALAN, CPA FRANCISCO C. GATDULA, MBA

Panelist Panelist

YOUNGLIN J. HITUTUANE, MBA

Adviser
 ACKNOWLEDGEMENT

The researchers would like to extend their heartfelt sincerity in this

acknowledgement to the following people who, in any way, have contributed and

motivated the researchers in conducting this Business Plan.

To Dr. Edgar R. Detoya, CPA, the Dean of College of Commerce for the

support and guidance.

To Mrs. Younglin J. Hitutuane, MBA, the researchers’ adviser, for the

supervision and knowledge she shared throughout the conduct of this Business

Plan.

To Mr. Joshua C. Ababon, Jr., MBA, the Chairperson of the Business

Administration and Entrepreneurship Department, for his approval and trust.

To Mr. Rosemarie V. Jacalan, CPA, panel member and Chairman of

Accounting and Finance Department, for the time, effort, and assistance she has

rendered for the preparation of the financial statements.

To Mr. Francisco C. Gatdula, MBA, panel member of Marketing

Management aspect, for sharing his time and ideas for the improvement of the

study.

To Engr. Juan Edgar C. Osorio, Research Specialist – DOST, for

generously sharing his recommendations and suggestions for the improvement of

the product.

To the Homeowners of Sarihville Subdivision, the respondent of this

study, for their cooperation in answering the proponents' questionnaire.

 To our beloved Parents, for their continued financial and moral support to

comply the needed Business Plan requirements.

And most of all to our Almighty God, for without His grace and blessings

this study would have not been possible.

THE Researchers
 TABLE OF CONTENTS

TITLE

TITLE PAGE

APPROVAL SHEET

ACKNOWLEDGEMENT

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF NOTES

LIST OF SCHEDULES

COVER PAGE 9

CHAPTER I 10

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the Study

Theoretical Background 11

Flow of Research Process 13

Research Flow Chart 14

THE PROBLEM 15

Statement of the Problem

SIGNIFICANCE OF THE STUDY 16

 RESEARCH DESIGN 17

Research Methodology

Research Respondents

Research Instruments 18

Research Environment 19

Data Gathering Procedure

DEFINITION OF TERMS

CHAPTER II 21

THE DATA
SECTION I – MANAGEMENT ASPECT
I. Management during the Pre-Operation
I. Project Timetable 22
1. General Project Planning

a. Site Selection

b. Sourcing of Funds 23

c. Raw Materials sourcing and Logistics

(arrange agencies/ contact/ deliver/ pick-up)

d. Transportation facilities

e. Negotiation with the subcontractor

2. Licensing 24

a. Barangay Clearance

b. Mayor’s Permit

c. DTI

d. BIR 25
 3. Site Establishment (Display Area Layout)
a. Office Layout
b. Receiving, Storage, Delivery Layout 26
c. Electricity, Water & Telephone Installation
d. Purchasing of office supplies & equipment
4. Pre-operation
a. Recruitment 27
b. Purchase of Raw Materials
c. Initial Production
d. Quality Check 28
e. Advertising and promotion
f. Product delivery 29
g. Product display
5. Normal Operation
GANTT CHART 30
II. Management during Operation Period 32
Organizational Structure
Job Title and Description 33
Company Profile- Vision/Mission 34
Work Schedule 35
Management Policies and Regulations
Ownership 36
SECTION II – MARKETING ASPECT 37
Introduction
Market Segmentation
Target Market 38
Market Research
TABLES (base from questionnaire)
Table 1 – Total Population and Sample Size 38-53
(REFER FROM THE LIST OF TABLES)
 Channel of Distribution 54

Mode of Transportation

Business Location 55

Production Location

Display Layout 56

Promotion 57

Tarpaulin

Leaflet 58

Jingle 59

Business Card 60

Pricing 61

SECTION III – TECHNICAL ASPECT 62

Introduction

Business Hours

Product/Service Description

Product/Service Research and Development 63

Process Flow Chart 64

Steps in Making the Product 67

Packaging 70

Furniture and Fixtures 71

Operational Rules and Regulations

Storage Area/Process 72

Waste Management
SECTION IV – LEGAL TAXATIONS AND ASPECTS 74

Introduction

Legal Aspect

A. Registration of Business Permit 75

Requirements for New Application
B. Securing the Business Permits and Licenses 76
Lease Contract
Barangay Clearance 77
Mayor’s Permit 78
Sanitary Permit 80
DTI
SEC 81
SSS Membership Registration 82
PAG-IBIG Membership Registration 85
PHILHEALTH Application 86
Bureau of Internal Revenue (BIR) Registration 87
Department of Labor and Employment (DOLE) 89
Taxation Aspect 91
Introduction
Income Tax 92
Percentage Tax

SECTION V – FINANCIAL ASPECTS 93

Introduction
Financing Aspect
Source/s of Funds
Initial Capital and Its Purpose
Estimated Project Cost 94
Notes 96
 General Assumptions 102
Projected Income Statement 104
Projected Cash Flow Statement 105
Projected Balance Sheet 106
Schedules 107
Financial Analysis 119
Profitability Ratios
Return of Investment
Return on Equity 120
Return on Sales 121
Liquidity Ratios 122
Solvency Ratios 123
Current Ratio
Payback Period 124
Break-Even Analysis 125
Contribution Margin
Contribution Margin Ratio
Break-even in Peso or Amount 126
Break-even in Units
Debt-to-Equity Ratio 127
Debt Ratio

SECTION VI – SOCIO-ECONOMIC DESIRABILITY 129

Introduction
Government
 Community 130
Customers
Competitors 131
Suppliers
Related Industries
Financing Institutions 132
Schematic Diagram 133

SECTION VII – SWOT ANALYSIS 135

Introduction
Strengths and Weaknesses
Opportunities and Threats 136
Critical Risks 138
Internal Risks 139
External Risks 140

CHAPTER III
SUMMARY, FINDING, CONCLUSION AND RECOMMENDATIONS 141
Introduction
Summary
Findings 142
Management Aspect
Marketing Aspect
Technical Aspect 143
Legal and Taxation Aspects
Financial Aspects 144
Socio-Economic Desirability 146
SWOT Analysis
 Conclusion 147
Recommendation

APPENDICES 148
A. LETTERS/CONTRACT/CERTIFICATION
Certification on Plagiarism and Grammarly test
Letter to the Respondents
Permit/Approval to conduct the survey
Certificate of Appearance
Subcontractor’s Contract
Lease Contract
B. SURVEY QUESTIONNAIRE
C. FORMS/PERMITS- BUSINESS PERMIT APPLICATION
D. CURRICULUM VITAE
E. GROUP PICTURES

REFERENCES 149
Books
Unpublished Materials
Magazines/Journals
Website/Internet Sources
Government Electronic Sites
 #697 Sarihville Subdivision, Poblacion, Talisay City Cebu 6045

WILLOW

“Great Qualities Implies Great Handlers”

VISION

Alta Calidad Collection aims to manufacture and to globally produce high

quality and most preferred brand products that ensure an innovative, best value

product that delights and exceeds customer’s expectation.

MISSION

To strengthen the confidence of the users by providing them with the most

innovative products and to be a reliable partner in solving customer’s problems.

 CHAPTER I
THE PROBLEM AND ITS SCOPE

Introduction

Business Chambers exists to fabricate profit and to be on top in the market.

Alta Calidad Collection will function as a sole proprietorship and will create

innovative pillow bag called “Willow”. Our company aspires to get rich “Willow”

worldwide. Alta Calidad Collection exists to provide an affordable yet quality

product that will use in various ways to become a well renowned domestic

company that will be known for producing comfortableness, innovative, and quality

designed products to the people. The advocators decided to have a friendly seller-

customer relationship. In line with our Vision, our goal is to globally produce the

affordable yet quality and innovative Alta Calidad Collection.

Rational of the Study

Many Entrepreneurs are accurate to deal with their business to compromise

their handworks. Alta Calidad Collection implies a study by directly handling and

maneuvering toward the desired conclusion on a strategy to accelerate the

company. Pillow and blanket will be used by both men and women. The company

created a product that is a pillow bag with a hygiene kit, a compartment for a

blanket and other personal belongings for traveling.

In the modern world, pillow and blanket are very common with many people

usually acquire a variety of them in the form of its designs and comfortability. The

company’s product name is “Willow,” and its innovation is to make this study easier

to everyone who needed a pillow and blanket that is ready to go. The product is
made of quality materials with affordable price. The pillow bag is closable by a

zipper, and the blanket can be kept inside with additional hygiene kit. The pillow

bag has a strap and a waterproof material making it like a shoulder bag so that it

will easily be carry.

The purpose of the product is likely to predate the flexible variant and having

the advantage of being comfortable during stressful travel. On the other hand,

being a waterproof outside cloth makes it secure that the product will not get wet

on the inside. The product is convenient for carrying it to one place or another for

it is light in weight and storage for important files or small objects while traveling.

Theoretical Background

A Sling Traveling Bag (also called a courier bag or messenger bag) is a type

of sack, usually made out cloth (natural or synthetic), that wear over one shoulder

with a strap that goes across the chest resting the bag on the lower back. While

sling bags are being use by couriers in traveling especially in sending letters, they

are now also an urban fashion icon. Some types of messenger bags are called

carryalls (Britt, 2008).

The sling traveling bag is a true golden-oldie of men’s day-to-day luggage. IN

its simple form – a one strap bag slung over the shoulder – the styles had been

around for so long that it’s hard to nail down an origin. Over the years, similar bags

have been used by utility-men of all kinds who needed easy access to their

accouterments without typing up a hand or two in the process. Whether you called

it satchel, sling bag, carryall, or yet another name, they’ve been donned by men

from Roman legionnaires to army medics to electronic repairmen. That said, it’s
the widespread use by letter carriers, first atop horses and more recently bicycles,

from which the ‘messenger’ nomenclature is derive (Lehman, 2016).

The history of small bags is pan-global and cross-cultural. Hunter-gatherers

tied bags around the waist while foraging. Before pockets were commonplace,

medieval men too wore bags cinched around their hips. In Western society, the

advent of the railroad made handheld bags a lifestyle standard. The invention of

the gas mask in World War I created the need for a sturdy but unobtrusive satchel

(Spagnolo, 2017).

The traditional backpack will always have two straps, clearly by its history as a

student favorite. The single strap backpack, on the other hand, is a more recent

addition to the fray. It joins such carryalls as the messenger bag in offering students

and travelers more choices for toting their books, school supplies and other

classroom, campus necessities with ease and as well as for traveling components

(Sharma, 2016).

Messenger bags were originally used to store stuff quickly and a lot of pack of

that. But the bag gained popularity during WW2, when troops would fill their sturdy

canvas carriers with supplies and personal belongings to keep their hands free for

weapons or tools. The postal service then inherited the design to carry mail, before

passing the design onto city couriers.

Each different group had the same requirements: keeping contents as safe and

dry as possible while moving quickly and conveniently. Every time the

metaphorical torch is passing, the design gets slicker, the materials more modern,

and the function of the interior is more useful (Kinsale, 2007).

 With the theories given above, the Alta Calidad Collection decided to come up

with the product that surely provides the customer the simple way of handling the

product. The product has touch pouches and other valuables to the girdle. The

product also satisfies the needs of the customer, and is suitable for everyday use.

FLOW OF RESEARCH PROCESS

The project study show flow consists of three main parts: input, process, and

outputs of the study.

The inputs show the entire process made by the respondents and data to

survey-questionnaires made to determine the feasibility of the proposed

production.

The process is the second phase of the flow which includes the foundation,

distribution, and retrieval of the survey questionnaires.

The output of the study shows that the proposal production of “Willow” products

answered the travelers and the needs of the community.

Figure 1 shows the Flow of the Research Process.

 THE PROBLEM

Statement of the Problem

The purpose of the study is to determine the attainability and viability of the

Proposed Production and Distribution of Willow.

Specifically, it aimed to answer the following questions:

1. How feasible is the study of the Proposed Production and Distribution of

Willow in terms of:

1.1 Management;

1.2 Marketing;

1.3 Technical;

1.4 Legal and Taxation;

1.5 Financial;

1.6 Financing;

1.7 Socio-economic; and

1.8 SWOT Analysis

2. Based on the findings, what recommendations can be proposed to improve

the production and distribution of “Willow”?

 SIGNIFICANCE OF THE STUDY

The significance of the study is to provide satisfaction to the ever-growing

demand for less hassle-free and convenient in products. The proponents offer a

disguise designed products to fulfill and supply this ever-growing demand.

The study provides hassle-free oriented designed products to those who want

more convenience in traveling. The use of the proponent’s product “Willow” will

help customers to be more convenient and less hassle whenever they travel within

or outside the city.

It also offers an improvement to the community by opening opportunities for

the people through innovation and convenience though their products.

The proponent’s entrepreneurial venture can also contribute to the betterment

of the economic status of the nation. Through the connection of the enterprise with

the community, they can gain manpower, customers, and market share.
 RESEARCH DESIGN

Research Methodology

The study was conducted using the descriptive survey method utilized by our

researchers. A survey questionnaire was used as the main tool in gathering data.

The instruments were answered by the identified target markets who are home

owners of Sarihville Subdivision located at Poblacion, Talisay City, Cebu.

Research Respondents

The Alta Calidad Collection target markets are home owners of Sarihville

Subdivision. A group of family that share characteristics or quality in common from

the data that is gathered and analyzed. It shows how many respondents are

involved in the researchers’ survey with a total population of 122 home owners and

has a sample size of 93 respondents. This is attained through the Sloven’s

Formula.

Table 1 shows the Total Population and Respondents.

Table 1

Population and Respondents

Respondents Total Population Percentage Sample Size (n)

Homeowners of
Sarihville
Subdivision, 122 100% 93
Poblacion,
Talisay City,
Cebu
Research Instrument

The Alta Calidad Collection used survey questionnaires as an instrument by

the proponents to gather data. Providing the sample size that subset the total

population from which the information is collected at Sarihville Subdivision,

Poblacion, Talisay City, Cebu.

Sloven formula is use to conclude the sample size of the respondents for the

computation of the total population.

Sloven’s Formula:

n=
Research Environment

The environmental research takes place at Sarihville Subdivision located at

Poblacion, Talisay City, Cebu. The firm selected the subdivision to do the outmost

survey for it was the primary market of the company. The most accessible areas

in which our company can conduct overall research.

Data Gathering Procedure

The company has prepared survey questionnaires that are intended for people

who love to travel or travelers and will be distributed to the home owners located

at Sarihville Subdivision Brgy. Poblacion, Talisay City, Cebu. Though the

permission and guidance granted by the President of the Home Owners

Association, the proponents were able to disseminate the survey questionnaires,

gathering the required data needed by the company.

Definition of Terms

Alta. Refers to a Spanish term which means high, rise or increase.

Ballistic fabric. Refers to a specific type of nylon fabric which is thick and tough

designed for maximum durability and abrasion resistance.

Calidad. Refers to a Spanish term which means top quality.

Closed-end zipper. Refers to zippers that have a stopper on end to stop the zip

pull for opening fully.

Fleece fabric. Is a type of material that is usually very soft and is generally

lightweight yet breathable, which means air can flow through it easily.
Self-locking eyehook. It is a latch of hook that automatically closes when a pulling

force is applied to the sling. A connecting link is design to attach on its chain.

Wander. This refers to walk around slowly in a relaxed way or without any clear

purpose or direction.

Willow. It is a combination of two words; Wander and Pillow.