Philippine School of Business Administration – Quezon City

Success Factors of Bakeries

In Bayan, Antipolo

A Research Study

In Partial Fulfillment in the Requirements in

Fundamentals of Research

Submitted by:

Baguio, John Mark L.

Bumacod, Alesa Mhae B.

Cortez, Matthew Abraham B.

Dizon, Christian B.

Elocre, Glenn Neil R.

Submitted to:

Dr. Carolina D. Ditan

February 22, 2016

 ACKNOWLEDGEMENT

We would like to extend our deepest appreciation and profound gratitude to those
who in one way or another have extended special assistance in accomplishing and making
this research study.

First of all, to our Almighty God for inner strength and perseverance as well as
teaching us the value for patience, hard work and determination to finish this project.

To our parents, for always being there, giving us support, for enlightenment
supervision and guidance, moral support.

To our friends and classmates, for always giving their advice, giving us
immeasurable assistance and moral support as well as financial support.

To Dr. Emma R. Guno and Dr. Celso I. Mendoza, the designated panelists in our oral
defense – for our scrutinizing firmly our paper and giving us wise ideas and suggestions on
how tofurther improve it.

To Dr. Carolina D. Ditan, our dearest adviser and who helped us to make our project
possible.

To all the people that made this project fulfilled. To our respondents, that spared us
their time and information necessary to the completion of this study. Your name will be
remembered.

Thank you so much.

 TABLE OF CONTENTS

I. CHAPTER I – INTODUCTION
1.1 Introduction
1.2 Background of the Study
1.3 Conceptual framework
1.4 Significance of the Study
1.5 Definition of Terms

II. CHAPTER II – REVIEW OF RELATED LITERATURE

2.1 Related Literature
2.1.1 Foreign Literature
2.1.2 Local Literature

2.2 Related Studies

2.2.1 Foreign Studies
2.2.2 Local studies

III. CHAPTER III – RESEARCH METHODOLOGY

3.1 Research Design
3.2 Description of the Respondents
3.3 Methods of Data Collection
3.4 Respondents of the Study
3.5 Sampling Plan
3.6 Research Instrument
3.7 Statistical Treatment of Data

IV. BIBLIOGRAPHY
V. APPENDICES
VI. RESUME
 CHAPTER I
INTRODUCTION AND BACKGROUND OF THE STUDY
Introduction
Bakery is a place where products such as bread, cake, and pastries are baked or sold and
also called bakeshop. The combination of flour, yeast, water, salt, and sugar are known as the
main ingredients of bread that can help us to have a small bakery and to serve other people.
We all know that the bakery products have been popular around the world and are one of the
oldest artificial foods. It started with a simple biscuit, the common products of bakery and it
is also can be different in their shapes, size, style, flavor and textures. You can add other
ingredients like fruits, colors or other to improve the flavor of your bread. There is something
in bread that can appeal customers, but the question is how and why the bakery owners can
do it?

The other bakery shops improve their products, it is not just simple bread with a little
sweetness but they added cakes, cupcakes, cookies and etc., they also improve their location
like expanding it and make their location peaceful, and they use different marketing strategies
to attract more customers. In another way, they also create bread that can be served as a meal
of the day. You can eat bread as a replacement of your rice; it can be eaten as snack, or used
as an ingredient in other culinary preparations, like in soup, pasta and other fried items coated
in crumbs. Bakery owners think about the products that are for all age groups to satisfy their
customers.

Bread is one of the oldest prepared foods. Evidence from 30,000 years ago in Europe
revealed starch residue on rocks used for pounding plants. It is possible that during this time,
starch extract from the roots of plants, such as cattails and ferns, was spread on a flat rock,
placed over a fire and cooked into a primitive form of flatbread. Around 10,000 BC, with the
dawn of the Neolithic age and the spread of agriculture, grains became the mainstay of
making bread. Yeast spores are ubiquitous, including the surface of cereal grains, so any
dough left to rest will become naturally leavened. In 1961 the Chorleywood bread process
was developed, which used the intense mechanical working of dough to dramatically reduce
the fermentation period and the time taken to produce a loaf. The process, whose high-energy
mixing allows for the use of lower protein grain, is now widely used around the world in
large factories. As a result, bread can be produced very quickly and at low costs to the
producer and the consumer. However there has been some criticism of the effect on
nutritional value. Recently, domestic bread machines that automate the process of making
bread have become popular.

Le Pain Quotidien is a global chain of bakery-cafés operating in many countries

around the world. It sells organic bread and cakes in a homey, rustic style. Le Pain Quotidien
currently operates more than 220 bakery-restaurant locations worldwide in 17 countries,
including Belgium, the Netherlands, the United Kingdom, France, India, Switzerland,
Brazil, Mexico, Turkey, Spain, United Arab Emirates, Kuwait,
Russia, Argentina, Japan, and the United States. The United States, United
Kingdom, Belgium, Paris and Australia restaurants are fully company-owned and operated,
while all other international Le Pain Quotidien restaurants are franchised.

Background of the Study

The Philippines is believed to have begun with the arrival of the first humans using
rafts or primitive boats at least 67,000 years ago. Negrito tribes first inhabited the isles.
Groups of Austronesians later migrated to the islands. Eventually various groups developed,
separated into hunter-gatherer tribes, warrior societies, pettyplutocracies and maritime-
oriented harbor principalities which eventually grew into kingdoms, rajahnates, kedatuans,
huangdoms and sultanates. The first recorded visit by Europeans is the arrival of Ferdinand
Magellan. Spanish rule ended in 1898 with Spain's defeat in the Spanish–American War. The
Philippines then became a colony of the United States. American rule was not uncontested.
The Philippine Revolution had begun in August 1896 against Spain, and after the defeat of
Spain in the Battle of Manila Bay began again in earnest, culminating in the Philippine
Declaration of Independence and the establishment of theFirst Philippine Republic.
The Philippine–American War ensued, with extensive damage and death, and ultimately
resulting in the defeat of the Philippine Republic.

Rizal Province lies immediately east of Metro Manila. It is bounded on the north by
Bulacan, on the east by Laguna de Bay. The terrain is mostly low and flat on the western part,
and rolling hills and rugged ridges on the eastern part. At the foot of these elevations are the
Marikina Valley and Teresa Valley. The Pasig and Marikina Rivers are the major rivers that
can be found in the province. Montalban Dam serves as the main source of water supply for a
greater part of the Metro Manila area. After the fall of Manila in 1571, the Spaniards
proceeded along the Pasig River and eventually overran Cainta and Taytay. They founded
one town after another which eventually formed the military district of Morong. In 1898,
Antipolo became the capital of Morong. On June 11, 1901, the first Philippine Commission
united parts of the old province of Manila and the district of Morong to form a new province
named after Jose P. Rizal, the country´s national hero. Rizal Province originally consisted of
26 municipalities - 14 from Manila and 12 from Morong. In 1975, 12 towns of Rizal,
including Pasig, were incorporated into the newly-created Metro Manila.

Antipolo is a city in the in the province of Rizal, Philippines located about 25

kilometres (16 mi) east of Manila. It is the largest city in the Calabarzon region. Antipolo was
converted from a municipality into a component city of Rizal Province on April 4, 1998,
under Republic Act No. 8508. A new provincial capitol building was inaugurated in the city
in March 2009 to replace the old capitol in Pasig which has long been outside the jurisdiction
of Rizal Province; after Pasig was included in Metro Manila in 1975. With the transfer of the
provincial government to Antipolo, it is highly favored to be officially designated as the new
capital of the province.
Conceptual Framework
Product

A product is seen as an item that satisfies what a consumer demands. It is a tangible

goods or an intangible service. Tangible products are those that have an independent physical
existence. The marketers must also consider the product mix, Marketers can expand the
current product mix by increasing a certain product line’s depth or by increasing the number
of product lines. Marketers should consider how to position the product, how to exploit the
brand, how to exploit the company’s resources and how to configure the product mix so that
product complements the other. The marketer also consider product development strategies.

Price

The amount a customer pays for the product. The price is very important as it
determines the company’s profit and hence, survival. Adjusting the price has a profound
impact on the marketing strategy and, depending on the price elasticity of the product. Often
it will affect the demand and sales as well. The marketer should set a price that complements
the other elements of the marketing mix.

Promotion

All of the methods of communication that a marketer may use to provide information
to different parties about the product. Promotion comprises elements such as: advertising,
public relation, sales organization and sales promotion.

Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public relations is
where the communication is not directly paid for and includes press releases, sponsoring
deals, exhibitions, conferences, seminars or trade fairs and events.

Place

Refers to providing the product at a place which is convenient for customers to

access. Various strategies such as intensive distribution, selective distribution, exclusive
distribution and franchising can be used by the marketer to complement the other aspects of
the marketing mix.
Research Paradigm
PROCESS
STRENGTHS

 QUALITY OF THE SERVICE

 ACCESSIBLE LOCATION
INPUT  AFFORDABLE PRICE OUTPUT
 VARIETY OF BREADS
1. RESPONDENTS OF THE  QUALITY BREADS
STUDY.
WEAKNESSES A SUCCESSFUL BAKERY
 MANAGERS AND SHOPS
OWNERS  POOR QUALITY OF SERVICE
 EMPLOYEE  INACCESSIBLE LOCATION
 CUSTOMERS  UNAFFORDABLE PRICE
2. PROFILE OF THE  LIMITED BREAD
RESPONDENTS  POOR QUALITY

 AGE OPPORTUNITIES
 GENDER  PUTTING UP ANOTHER
BRANCH
 OFFER THE BREADS IN
SUPERMARKET
 DISTRIBUTE IN OTHER
GROCERY STORES
 EXPANSION OF THE BAKERY
 ADVANCE USE OF
TECHNOLOGY

THREATS
 ECONOMIC CRISIS
 MANY COMPETITORS
 CALAMITIES
 UNRELIABLE SUPPLIES
 INCREASE IN RENTAL FEES
AND OTHER EXPENSES

MARKETING STRATEGY
 ADVERTISEMENT
 BUNDLE PROMOS
 DISCOUNTS
 FOODS SAMPLING
 EVENTS
Statement of the Problem
The objective of this study is to determine the success factors of the bakeries Antipolo,
Bayan.

Specifically, this study will seek to answer the following questions:

1. What are the strengths of the bakery?

2. What are the weaknesses of the bakery?
3. What are the opportunities of the bakery?
4. What are the threats of the bakery?
5. What are the marketing strategies used by the business to increase the volume of
sales?
6. Is there a significant difference among opinion of the respondents regarding the
strengths and weaknesses of the bakery when grouped according to gender?
7. Is there a significant difference among opinion of the respondents regarding the
strengths and weaknesses of the bakery when grouped according to age?

Hypothesis of the Problem

Null Hypothesis:
There is no significant difference among the opinions of respondents regarding the
strengths and weaknesses of bakery when grouped according to age.
There is no significant difference among the opinions of respondents regarding the strengths
and weaknesses of bakeshops when grouped according to gender.

Alternative Hypothesis:
There is a significant difference among the opinions of respondents regarding the
strengths and weaknesses of bakeshops when grouped according to age.
There is a significant difference among the opinions of respondents regarding the
strengths and weaknesses of bakeshops when grouped according to gender.

Significance of the Study

 Management/Owner - They will be able to think of new strategies to attract new
customers and maintain the loyalty of their old customers.
 Employee/Staff – They will be able to know how the owner’s manage the bakaery
 Customers - They will be knowledgeable about how the bakeshop performs and
produces quality food products.
 Business Students – They will be knowledgeable about putting up a bakery at their
young age.
 Businessmen – they will be able to know the strengths and weaknesses of a bakery.
  Future researchers - This will be their guideline to the topic that they will choose
and also this could be used as a reference by other researchers whose topic is closely
related to this study.
 Community – They will be able to be aware about how could bakery help them in
their daily lives
 Academe - They will be able to use the information in other researches,.

Scope Delimitation
This study will involve of the 5 bakeries located in Bayan, Antipolo City namely;
Happy Smile Bakery, Twin Bakery, Antipolo’s Best Bakery, Bread of Antipolo Bakery and
Inocencio’s Bakery.

The respondents of the study are the 5 owners, 11 employees, and ____ customers. It
will cover the period from February to March 2016.

Definition of terms
Baguette

- a very popular type of French bread, characterized by their long tube-like shape, as well as
their crunchy crust and soft interior. Baguettes can be up to two feet long, and are used for a
variety of purposes outside of sandwiches.

Breadstick

- A dry bread formed into sticks, served as an appetizer.

Fruit Bread

- Use a normal bread recipe to which fruit and often sugar are added. Popular fruits
used are raisins, currants, dates, orange peel and dried fruits.
Kneading

- is a process in the making of bread or pasta dough, used to mix the ingredients and
add strength to the final product. Its importance lies in the mixing of flour with water.
When these two ingredients are combined and kneaded,
the gliadin and glutenin proteins in the flour expand and form strands of gluten, which
gives bread its texture
Lean Bread
- is one made with the basic bread ingredients of flour, water, salt and leavening (i.e.
sourdough starter or instant yeast) although there are also unleavened breads that fall
into this category, such as matzo. A lean bread can also have extra items such as
herbs, sliced olives, grains & seeds, raisins, etc. as these are not specifically part of
the dough itself.
Levain
- This is simply a French term referring to sourdough starter. A “pain au levain” is
French for sourdough bread, as distinct from a bread made with commercial yeast.
You may sometimes see this term applied to the middle-step sourdough that is built
up from the Mother Starter and then added to the final dough mix.
Preferment

- Any of a number of mixtures of flour, water, and yeast (and sometimes salt) that is
combined and left to develop before being added to the rest of the dough components
Proofing
- This term refers to the period of rest where the leavening agent(s) in the dough are
allowed to expand. The word refers to “proving” that the yeast or sourdough is active
enough for the bread to rise. There are typically two stages: “bulk proofing” where the
dough first rises while in bulk form regardless how many final loaves it may later be
divided into, then “final proofing” which is the rising period after the dough has been
divided and shaped into its loaf, batard, ball or other final shape. There is also a short,
5 to 10 minute “rest” period given the dough pieces once the bulk dough has been
divided but before the pieces are shaped. This rest allows the dough to relax and
shape easier.
Poolish
- Poolish has a definite ratio of ingredients, mainly that it is made up of 50% flour and
50% water (therefore 100% hydration) plus a very tiny portion of yeast, .08 to 1%. It
is therefore more of a batter consistency. The name “poolish” is derived from the
immigrant Polish bakers who introduced the method to their French counterparts. A
Poolish normally has no salt.
Rye Bread
- Is a wholemeal bread made from rye or a mix of rye and wheat flour. It was originally
developed in Europe and is made in a wide variety of styles and shapes.
Pretzel

- are made by rolling yeast bread into a long tube, and twisting and knotting the tube into a
specific pretzel shape.
 CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES

2.1 RELATED LITERATURE

2.1.1 FOREIGN LITERATURE

A. Start a Small Bakery Business

Many people dream of owning and running their own small business in hopes of becoming
their own boss. They also hope that their independence can give them more flexibility to earn
money without depending on a full-time employment. Some fail in their efforts as soon as
they realize that it is not as simple as they thought it would be. Starting and operating a
business takes a lot more hard work than just dreaming.

Step 1

Decide which type of bakery business you would like to operate. You can opt to sell only
cakes or breads, muffins, donuts and other baked goodies. You may choose to sell
combinations of specialty cakes and baked goods. Some open bakeries to make specialty
cakes or cakes for special occasions only such as for weddings and birthdays. Determine if
you will just sell the goods "to go" or allow people to sit down and eat. In addition, determine
if you will be serving hot and cold beverages along with the baked goods.

Step 2

Lay out a business plan. Decide on the name of your business. Decide if this will be a single
proprietorship, partnership or corporation. Register your business with the State and obtain a
permit or license to operate. Inquire for more information from the Service Corps of Retired
Executives (SCORE) for tips and assistance on how to start your own small bakery. SCORE
is a Resource Partner with the U.S. Small Business Administration (SBA). Visit score.org for
more information.

Step 3

Decide on the location. The location size should be enough to accommodate baking ovens,
baking racks, baked goods shelves, storage, counters, tables and chairs. Consider the
restrooms in the plan. If you plan to operate a coffee shop-type bakeshop where people can
eat, you would need to add a public restroom. If it is just going to be a bakeshop where you
will sell baked goods to go, you may only need a small one for you and your staff only.
Check with your state or town for requirements.

Step 4
Know your state and town's health regulations. Make sure your location will pass the
inspection.

Step 5

Check on the costs of equipment you will use. Some equipment may cost several thousands
of dollars; therefore, shop around and compare prices before you buy. Bakery Solutions
(Bakesol) is a company that specializes in bakery equipment, parts and accessories. You will
find most baking items used to operate your bakery from this shop. Visit bakesol.com for
more details.

Step 6

Obtain financing from a bank. Inquire about small business loans offered though SBA (Small
Business Administration). You would need enough to cover purchase of equipment,
appliances, furniture, and lease of location, renovation, start-up costs and up to six months
worth of employees' salaries. Budget for ingredients, utilities, insurance and other
miscellaneous operating costs.

Step 7

Gain experience while you plan for your future. Any business does not grow overnight; you
would need to plan and have a long-term goal. While planning your business you can work
for an established bakery. Don't expect them to give you all the information that you need
from the ground up; however; you can learn how to use baking equipment and how to serve
customers. You may also train as a pastry chef from a culinary school to learn other baking
techniques that you did not learn from home.

Step 8

Hire workers. You may need food servers or waitstaff. Determine how many you need to
help bake, serve and handle the register. You may need one or two experienced bakers to
work with you, a person operating the counter and register, one to two waitstaff.

Step 9

Get ready to open for business. Advertise your opening day by posting ads on newspapers
and posting or handling out flyers. You can also host a charity event and give out baked
goods with your label attached. Hand out business cards and flyers to the attendees.

Source: http://www.hcareers.com/us/resourcecenter/tabid/306/articleid/650/default.aspx
B. Business Objectives for a bakery
Bakeries sell perishable comfort food -- sweet and tempting offerings that appeal to a broad
target market. Bakery products are also extremely perishable; many customers have grown to
expect bakery businesses to offer product that is baked fresh daily, making it challenging to
meet demand without wasting inventory. Business objectives for a bakery should include
building a broad and committed customer base and developing a business model that brings
in enough income to cover your expenses despite a potentially high level of waste.

Revenue

A bakery can increase its revenue through advertising and promotions such as offering deals
on specific items on different days of the week. You can add to sales totals by carefully
monitoring and adapting to demand, paying attention customer flow as well as sales patterns.
Many changes that bring in additional revenue require little or no monetary outlay, such as
adjusting your hours to be open when you are likely to be busiest or creating displays that
tempt customers to buy additional product.

Income

Business income is the amount left over after subtracting deductible expenses from sales
revenue. To achieve the objective of maximizing income, your bakery must minimize waste
without running out of popular items. Because customer demand is rarely consistent, it is
nearly impossible to avoid waste altogether. However, keeping careful records of which
items sell fastest enables you to predict some sales patterns. You can achieve additional
accuracy by paying attention to variables that affect sales patterns, such as holidays and
weather.

Margin

Because the bakery business model of selling optimally fresh offerings creates so much
potential for waste, bakeries should closely monitor profit margins, or the percentage of sales
that exceeds operating expenses. Shop around for low prices on ingredients, but don't
compromise quality for the sake of price if your customers hold you to a high standard.
Introduce efficiencies that enable you to produce more in less time, such as consolidating
processes, eliminating bottlenecks and achieving economies of scale.

Reputation

Building a strong reputation is essential to a bakery's objective of attracting a loyal clientele

and generating a consistent sales volume. Build your reputation by producing high-quality
products and maintaining excellent customer service. Although it is tempting to sell product
that is less than perfect to minimize waste, these sales may cost more in the long run by
compromising your bakery's reputation. Develop a specialty, and practice until you are an
expert.

Source: http://yourbusiness.azcentral.com/business-objectives-bakery-14092.html
C. About the Bakery Business
By Morgan Rush

Bakery businesses, together with tortilla manufacturing companies, employed about 18

percent of food manufacturing industry employees in 2008, according to the Bureau of Labor
Statistics in the online report, “Food Manufacturing.” The United States commercial bakery
industry generates about $28 billion in revenues, with the sector’s top 50 companies earning
80 percent of that income, according to Hoover.com in an online report summary entitled,
“Bakery Products.”

History

Baked goods extend back to ancient history, according to Stephen Holloway, writing for
Kitchen Project.com in the online article, “The History of Bread.” Egyptians baked bread
thousands of years ago, and bakers joined bakers’ guilds in Ancient Rome. In the United
States, colonial-era bakeries were social places where people gathered to warm up and
gossip, according to Food Timeline.org in the online article, “Colonial and Early American
Fare.”

Types

Bakeries can range from small artisan businesses, specializing in one or two items, to large
industrial bakeries that supply food retailers with packaged baked goods, according to A
Touch of Business.com in the online article, “How to Start a Bakery.” Franchise bakeries
create baked goods with access to the brand recognition, customer base and mentorship
opportunities available after paying regular franchise fees. Bakeries may also venture into
catering opportunities; for example, delivering hot muffins and donuts and fresh orange juice
to business offices before important meetings. Bakeries sometimes specialize in just one or
two items, such as wedding cakes or bagels prepared according to kosher standards. You can
also start a bakery specializing in baked goods for pets, according to Style Career in the
online article, “Pet Bakery.”

Licensing

Bakeries will require permits to operate, including a business license, tax identification
number, retail license and food permit, according to “How to Start a Bakery.” Check with
local agencies to learn about area requirements and regulatory guidelines. In California, for
example, the baking industry is regulated by the Department of Alcoholic Beverages.

Equipment

You’ll need to purchase or lease a variety of equipment to begin a bakery business, according
to “How to Start a Bakery.” This includes mixers, ovens, packaging materials (such as white
paper bags or folding doughnut boxes) and raw materials for creating baked goods. Dine-in
customers will require tables and chairs to enjoy your croissants, pastries and cookies. Bakery
businesses also need standard office supplies, including business cards, telephone, fax
machine for submitting bids, computer, accounting software and printer.

Pricing Considerations

Retail bakeries can be affected by rapid price changes for key ingredients, necessitating the
need to raise prices for customers, according to Edward Lee in the 2008 article, “Adjust Your
Bakery Business,” on Modern Baking.com. Some bakeries take such opportunities to educate
customers about the relationship between the cost of soybean oil or eggs and their daily
strudel, according to the article, even asking customers to sign petitions related to farm
legislation. Consider promoting one item that will always remain the same price. For
example, $1 day-old baked goods or $1 cups of coffee.

Source: http://smallbusiness.chron.com/bakery-business-4683.html

D.Woodstock Bakeshop: Finding Triumph in the toil

By: Danica Smithwick

Before opening his bakery’s doors, Matt Childress spent several years racing cars
competitively. Because of his competitive background, he grew up knowing he didn’t want to
work a “normal job.”

He took his love for vintage aesthetic, his mom’s cake recipes, and his dad’s idea for a
name—Woodstock Bake Shop—and ran with it. September 11, 2012 he opened for business
on Innsdale Cove in Jackson.

In those early months, Matt said there were more rough days than easy ones—from hiring
friends who disappointed him to just being patient with the drudgery of starting a new
business, it was more of a struggle than he expected.

“I made a ton of mistakes,” he said. “It takes a long time and a lot of persistence to build a
business. I’m a very competitive person, so I knew I was going to figure it out. I just didn’t
know how long it would take to figure it out.”

Matt wasn’t prepared for the downtime at the end of the day as a young entrepreneur,
according to his dad Dale. Just twenty-two years old at the time, he would often come home
and start to question himself. Am I really prepared for this? What happens if I fail? “In the
beginning, we would have days where ten or fifteen people would walk through the doors,”
Matt said. “Now it’s a few hundred every day. You just have to hang in there for the first two
or three years.”

Matt said he learned that those in his sphere of influence—although they would never admit
it—weren’t always rooting for him to succeed. People didn’t want him to be more successful
than they were, he said.
One thing that helped him stick with it was avoiding social media. Both strangers and friends
would talk negatively about his plans on Facebook, and it took him a long time to learn to
ignore it, but ultimately he refused to let those people tear him down. Now twenty-five years
old, Matt has learned from his mistakes and seen his business expand to three Jackson
locations in just three years. He’s also seen his own confidence level grow and his love for
business develop.

In addition to the original Innsdale location, Woodstock has a booth downtown at the
farmers' market and recently launched a spot at Jackson State Community College.

“A lot of people thought we had deep money somewhere, but it was a big risk,” he said. “We
took a leap of faith, and it worked. I like to just commit to something and then figure out the
rest later. Sometimes you make mistakes, but sometimes you make great decisions.”

“I like to just commit to something and then figure out the rest later. Sometimes you make
mistakes, but sometimes you make great decisions.”

— Matt Childress

One thing that has kept Woodstock’s business afloat is their commitment to a community-
minded mission. Dale said that since day one their love for the community has not
dissolved—although it may have taken people a while to realize their authenticity.

Woodstock chooses a local charity to support each week—from St. Jude Children’s Hospital
to Madison Academic’s Soccer Team. They set out a donation jar throughout the week, and
twenty-five percent of Saturday sales go directly toward that week’s organization.

“People buy from people they like, trust, and believe in,” Dale said. “They won’t if they
don’t see you genuinely doing things to make the community better. Anybody can sell a
cupcake, but I don’t think anybody can reach out to the community like that.”

“Anybody can sell a cupcake, but I don’t think anybody can reach out to the community like
that.”

— Dale Childress

At times, Woodstock would be giving more money away than they were making, but they
never wavered from that mission. Matt said he believes the more you receive, the more you
should give back.

Woodstock’s mission plays nicely alongside its theme in promoting peace and love. At first
glance, one notices vibrant colors, vinyl records, groovy posters, and tie-dyed t-shirts. But
once you hang around a little longer, you start to pick up on the Childresses’ attention to
detail.

Tens of thousands of customers’ signatures adorn the walls. Dale said the original plan was to
line the walls with art, but they couldn’t afford that in the beginning. Now people stop in
from the interstate just to buy a cupcake and sign the wall, he said.
Displaying about eighteen different cupcake flavors on any given day, Woodstock allows
their customers to name the treats on Facebook: Proud Mary, Stairway to Heaven, Kokomo,
and Susie Q, among others.

Dale spends a lot of his time writing inspirational quotes on every single box that goes out,
which is typically hundreds every day. People will send him messages, or he will search for
them online. With a database of more than 1,000 quotes stored in his iPad, the likelihood of
ever getting the same one is slim to none.

“That late 60s, early 70s genre is all about peace and love,” Dale said. “I was around back
then, and we didn’t promote war. It was all about togetherness and unity. You don’t see much
of that anymore.”

But when running a family business, it’s not always peace and love, right? That’s not the case
with the Childress family. They seem to have found a balance of work and family life, and
even after the two each put in eighty hours of work a week, the family dynamic doesn’t bring
issues.

“Most family businesses, you hear about them fussing and fighting,” Dale said. “We know
our roles. I handle the marketing and community side, and Matt handles the business side.”

Matt wakes up at 5:00 a.m. to starting preparing for each day at different Woodstock
locations. By 6:00 p.m., he closes up and heads home for the night, leaving his laptop behind
so he doesn’t have to think about work.

In the spring, Woodstock is set to launch a food truck. Matt said he’s interested in expanding
to more college campuses in the area, and ultimately he wants to open a store in Las Vegas.

“We just don’t sit still,” Dale said. “We don’t let a slow day deter us from where we’re going.
We keep finding new ways to grow.”

Source: http://www.ourjacksonhome.com/blog/2015/10/2/o1xt86w6n35b7p45bj5jpjhbsqpyl1

E. Business Objectives for a Bakery

By: Kim Durant, Demand Media

Some bakeries specialize in breads or cakes.

Starting or running a bakery will likely challenge even the savviest businessperson because
profit margins on baked goods tend to be relatively low and ingredient pricing fluctuates
depending upon the price of fuel and commodities. Setting measurable business objectives
with deadlines will help you draw a road map to success with your bakery, whether you are
launching a gluten-free cupcake service or a storefront bakery in a strip mall.
Location

One of your early objectives in starting a bakery should be to find a location that satisfies
your specific needs, which will vary according to what kind of bakery you are starting. For
example, if you are starting a storefront bakery that will rely heavily on foot traffic, you will
want to find a space in an area with a lot of pedestrian traffic. If you are starting a boutique
mail-order bakery specializing in baked goods safe for people with peanut allergies, you will
need to find a nut-free commercial kitchen to rent.

Start Date

Set your official business start date as one of your business objectives. Setting a specific date
for your bakery opening will not only help make it more "real" in your mind, it will also give
you an extra nudge to keep moving on your plans in order to make that deadline. Plan an
event to make your bakery's start date extra special. For example, you could hold a private
tasting for invited local food critics and bloggers, followed by a community party with free
mini-cupcakes or a discount on your offerings.

Profit

Make a goal to reach a certain level of profit in a certain period of time, allowing for the
momentum-gathering that many new businesses need in their first few months. Or you could
set your objective to reach a certain sales figure. For example, you could follow the example
of David Arrick, founder of The Butch Bakery, who originally aimed for $5,000 per month in
sales, according to "Entrepreneur" magazine.

Community Service

Establish an objective related to serving the community in which your bakery will be located,
such as donating breakfast items to a local women's shelter or starting a baking
apprenticeship program for underprivileged teens. This objective would be particularly
appropriate if you are a staunch community activist or if you plan to make your commitment
to community service part of your bakery's brand image.

Source: http://smallbusiness.chron.com/business-objectives-bakery-21392.html
2.1.2 LOCAL LITERATURE

A. BAKERY IN THE PHILIPPINES

Baked Goods

TRENDS
 Innovation remains vital for baked goods companies to address the need of consumers for
variety, which can be more pronounced in packaged food. The development of new
products is directed either towards creating something healthier or something better
tasting. Innovation, however, is no longer limited to pastries, cakes or bread loaves as
even the popular local bread, pandesal (salted bread), is being reinvented. A hotdog-
flavored pandesal, for instance, is now available through Gardenia Philippines Inc. A
healthier variant, meanwhile, can be bought through the bakery chain, Pan de Manila,
which created a malunggay (horseradish) pandesal. The Food and Nutrition Research
Institute, on the other hand, is promoting the selling of yellow pan de sal, which contains
squash puree, in public schools to help address the problem of malnutrition among
children.

COMPETITIVE LANDSCAPE
 Artisanal players which led the category in 2013 with a value sales contribution of 48%
sustained its lead in 2014 with a 47% value share. The proximity of neighbourhood
bakeries to households gave artisanal goods an edge over packaged/industrial baked goods
as they were more accessible to consumers. Also, some bread, like the popular pan de sal,
is best consumed hot after baking as it tends to harden as it gets cold. As such, artisanal
bakeries are the preferred sources of freshly baked bread and pastries if one is available
nearby. The customisation possible through unpackaged/artisanal cakes, meanwhile, made
it the preferred option, especially for more special occasions.

PROSPECTS
 Innovation is expected to remain an important part of major players’ operations to sustain
and improve their value share. This is also expected to help improve the growth of baked
goods over the forecast period, which is projected to post a constant value CAGR of 2%,
slightly outpacing its constant value performance over the review period. Aside from
creating healthier baked goods, adding flavour especially to plain bread, such as pan de
sal, is expected to help drive purchases. Not only do tastier baked goods address
consumers’ needs for variety, but will also afford them savings in both time and money as
they can forego the use of spreads or fillings.

Biscuits

TRENDS
 Biscuits continued to be regarded as a convenient snack option which consumers can
consume while on the go or which mothers give their children to take to school. Although
some variants may have a high fat or sugar content, biscuits are generally perceived to be
more nutritious than potato chips or other salty snacks. Their affordability also allows
companies to generate a steady demand for their products, especially from school-aged
children and busy individuals.
COMPETITIVE LANDSCAPE
 The lead attained by Monde Nissin Corp in 2013 was sustained in 2014 as it had 33%
value share. The company’s continued leading position stemmed from its wide brand
portfolio composed of Sky Flakes, Eggnog, Bingo, Fita, Cubee and MY San Grahams,
among others. Furthermore, some of its brands were prominent in their respective areas,
such as Sky Flakes in savory biscuits and crackers and Eggnog in plain biscuits.
Instrumental to the company’s success was its long-standing presence in the country
which allowed it to establish a following among consumers. The company also strove to
adequately differentiate its products from those offered by other players.

PROSPECTS
 The regular consumption of biscuits as part of an individual’s main meal is unlikely to
develop over the forecast period. Consumers are expected to continue regarding biscuits
as a snack. The performance of biscuits over the forecast period is also expected to
slightly improve compared to the review period in constant value terms with a CAGR of
4%. Although consumers are not expected to significantly increase their frequency of
consumption of biscuits, the slight improvement over the forecast period is expected to
arise from the growing purchasing power of the middle class who are expected to make
upgrades in their purchases and be driven by taste preference rather than price.
Source: http://www.euromonitor.com/bakery-in-the-philippines/report

B. How to start a bakery business (Turn their love for pandesal into a
thriving business by starting your own bakery)
By Entrepreneur Sataff
With bread being the country’s second staple after rice, the bakery business is one of those
ventures that are sure to bring multiple returns with just a minimal investment. By taking the
time to learn the craft, you too can start your own bakery business and potentially make good
money out of it.

A TICKET TO PROFITS
Take the case of former bus inspector Godofredo Molde, 45, who has pocketed P500,000 in
just a year of selling pan de sal. Armed with P150,000 in startup funds and a lot of guts, he
took the plunge of starting his own business - and came out on top. He has parlayed his bold
investment to foot house repairs and acquire a delivery truck for his growing business.

"I used my P150,000 capital in acquiring the three small pan de sal stores of my friend’s
brother, and that included some goodwill money for the recipe and training. I have added
another store since," he said.

The revolving daily capital for the four stores, he said, is only P7,000. Molde decided to
concentrate on pan de sal because its market is more predictable and the stores only need to
stay open from 5 am to 9 am.

One of his stores, sells P6,000 worth of pan de sal daily during weekends, and P4,000 during
regular days on the average. According to him, pocketing a cool P2,000 profit is the norm for
each of his bakeries.

A PROFITABLE BUSINESS

Ric Pinca, executive director of the Philippine Association of Flour Millers (Pafmil), agrees
that indeed “baking is a rewarding and profitable business.”

“Bread is the country's second staple and everyone eats bread. Though consumed mainly as
breakfast and snack fare, bread is also taken at lunch, usually as burgers and even dinner
time. Bread is a convenience type of food. You don’t have to sit and have a formal dinner just
to eat bread. In fast food shops, you may get your bread right at the counter and you even
dont have to call a waiter to serve you.”

Bread, he added, may be consumed while walking, riding a bus or even while whiling away
time anywhere.

But while the bakery business is a profitable one, Pinca said it is also a demanding
profession. Aside from investing money, he said a good amount of time, patience and study is
required if one is to put up a successful bakery business.

SET UP YOUR OWN BAKERY

Pinca shared these tips on how you too can start a bakery business from scratch:

1. Study the business

Before you put up a bakery, you must first learn how to bake. Many people make the mistake
of putting up a bakery without first knowing how bread is baked. It is not enough that you
hired bakers to do the work, you must also know the baking process so that your bakers
would not give you a run-around.

A month of training is enough especially if the training program you enroll in has plenty of
hands-on activities, meaning you are asked to bake and not just sit and listen and watch the
demonstrations. There are a lot of training centers and culinary schools offering baking
courses.

But the best baking courses are offered by the flour mills themselves. And more often than
not, these courses are offered free of charge to prospective bakers as part of the company's
marketing efforts. So get in touch with any of the local flour mills and ask for their training
schedules.

2. Look for a good location

A food business like a bakery depends on high human traffic. Look for a location where
people congregate like a market, near a school, a bus or jeepney terminal or even a tricycle
terminal and put up your bakery there. The people that populate your area are your target
customers.
3. Suit your products to your customers

If your bakery is in Tondo, then your products should suit the people of Tondo. Do not
produce pastries like apple streudels or Italian Rye Breads or Belgian cookies because these
products are not the type that people in Tondo consume. These products are for the shopping
mall crowd. Try producing pan de sal, Monay, tasty breads, ensaymada etc. These are bakery
goods that people in Tondo are familiar with and regularly consume. Also, these are products
they can afford.

4. Start small

It is better to start small especially if you are new in the business. If the business grows, then
it will be easy for you to expand, rather than start big and downsize later. Suit the type and
size of equipment you will buy to the volume of products you want to produce. remember,
you should not produce more than you can sell.

5. Buy the right sized equipment

Do not get a mixer with a one bag of flour capacity if your oven can only take in eight plantas
or 160 pcs of pandesal at a time. One bag of flour normally produces 1,880 pieces of pan de
sal weighing 25 grams each. Get technical help from equipment dealers. Do not just deal with
one. Get the best offer and technical advise you can get.

6. Maintain product consistency

Make sure that your bread tastes the same today as it did yesterday and as it would tomorrow.
Customers return to buy bread when they like its taste. Do not give them a different tasting
bread when they return because they will either complain or not return anymore.

7. Be good to your employees

Take good care of your employees and give them the right salary. If your employee is happy,
they will take care of your business and make sure that your customers are happy too. A
happy customer will always return and buy more. And you are assured that your business will
grow.
Source: http://www.entrepreneur.com.ph/startup-tips/how-to-start-a-bakery-business

C. Why not a bakery business?

Filipinos love to eat bread and the business minded should keep this in mind. Pandesal is the
usual breakfast fare most Pinoys can’t do without before starting their days. Snacks are
usually a few slices of bread taken with coffee, softdrinks or fruit juice. An aspiring bakery
businessman should therefore have these two products in his list and expand from there.

Other Pinoy favorites are ensaymada, pan de coco, monay, and mamon, while the more
affluent ones may opt for cinnamon rolls, French bread, hamburger buns and other more
sophisticated and therefore, costlier stuff.
The enterprising baker must know his market and tailor-fit his products to the kind of
customers he caters to. A bakery in Tondo, for example, must have products geared for the
Tondo market and not for the more sophisticated Makati or Greenhills crowd.

From one sack of flour, and using the most common formula for the production of loaf bread,
a baker can produce 81 loaves weighing 550 grams each. Total cost of materials, packaging
and overhead cost is P2,536.13. At a selling price of P40 per loaf, gross revenues will add up
to P3,240 for a gross margin of P703.87 per bag.

For pan de sal, gross earning per sack of flour is even bigger due to the lower cost of pan de
sal flour and less ingredients to be used. Each bag of flour produces 1,800 pieces of pan de
sal weighing 25 grams each. At P2 per piece, total sales is P3,600 for a margin of P2,517.63
per sack. From these gross earnings, the baker must deduct the cost of manpower, rentals and
of course, taxes to be paid.

The prospective bakery businessman must, however learn how to bake before jumping into
the pan, so to speak. In fact, any businessman worth his salt must first learn the trade he
wants to invest in before pouring in his hard earned money. One must not depend entirely on
hired hands to run the business. This is particularly true in baking.

The best place to learn baking the commercial way is at the PAFMIL Baking Center at the
DSWD Jose Fabella Compound, Correctional Road in Mandaluyong City. This baking school
is run by the Philippine Association of Flour Millers (PAFMIL) and is staffed by well-known
and competent baking instructors who have many years of experience of baking instruction.
Visiting instructors from the flour milling and bakery industries also come in to impart
knowledge and valuable inputs.

Aspiring bakery businessmen or those who wish to be employed as bakers must take the
Basic Commercial Baking Course, a 20-day program designed to equip trainees with a
combination of skills and knowledge in baking. Each student is required to produce bread
every day and critique his production so that he could improve and produce better bread the
next day. Only 25 students will be taken each class and the course will be offered only four
times a year.

Source: http://www.philstar.com:8080/agriculture/633662/why-not-bakery-business

D. A good rise: What the future holds for the Philippine baking industry

As writers of a book on Philippine breads, my co-author Jenny Orillos and I were treated to a
glimpse of the state of the baking industry in the country at the Bakery Fair, a three-day event
held at the World Trade Center from January 30 to February 1. And from what we saw at the
fair and up close in bakeries as we did research for the book, the future certainly looks bright
for Philippine baking.

In our visits to several panaderia all over the country in the last three years, we saw how
corner bakeries have embraced new technologies slowly but surely, and have finally begun
regarding baking as the science that it actually is. The days of using empty milk cans and
plastic pitchers to measure ingredients are fading slowly. Digital weighing scales are now
widely used. Recipes that were passed on from baker to baker by mouth and memory are now
written and serve as exact guides to ensure quality. And the most humble panaderia have
since begun to offer a wider variety of breads, both traditional and modern.

Of course, the panaderia is still where you’ll find local bread staples—pan de sal, pan de
putok, Spanish bread, pan de coco, ensaymada, monay, kalihim and the like. And bakeries in
the far-flung provinces are where you’ll see that traditional baking methods are very much
alive.

Like in Argao, Cebu, where the Visayan celebratory cake, torta, is still made using tuba
(coconut toddy), pork lard, an obscene amount of egg yolks, mixed by hand in a palanggana
and baked in a hudno, a clay oven fired using dried coconut husks.

Or in Camalig, Albay, where Bernardita Martillana has been baking the vanishing Italian
panettone-like bread marcasotes for nearly 50 years using a rather primitive method of
steaming in a kuron (a huge clay pot) on top of banana bark.

Adapting and modernizing

But our trips also yielded unique finds—the chocolate cinnamon babka (Panaderia Dimas-
alang, Pasig), the dragonball (Candon Bakery in Ilocos Sur), fancy filled doughnuts that rival
those of the big donut chains (Luzon Bakery in Legazpi City, Albay), French bread (Vietville
in Palawan), Nutella- and Speculoos-flavored ensaymada (Baby Pat Breads and Pastries in
Laguna)—that show an industry adapting to changing times and trends.

As even traditional bakeries have shifted to modern techniques and the use of better
equipment and technology, it has become easier to standardize recipes and thereby open
themselves up to expansion via franchising. The success of bakery chains like Julie’s
Bakeshop, Panaderia Pantoja and Pan de Manila are proof of this.

These days, with emerging foreign bakery chains like Bread Talk and Erik Kayser exposing
Filipinos to a wider array of bread choices, local bakeries have also found the need to step up.
They invest in product creation and in enhancers and flavorings that help improve the shelf
life and quality of their products as well as in the latest mixers, kneaders, ovens and
equipment that keep production times short and costs low.

Seminars by product vendors and the US Wheat Associates and events like the Bakery Fair
organized by bakery associations like the Filipino-Chinese Bakery Association, Inc. (FCBAI)
have helped move the industry further ahead by imparting the latest baking techniques.

Henry Ah, president of FCBAI, also acknowledged the presence of a new breed of bakers
trained in classic techniques in culinary schools as a boost to the industry.

Ah envisions more professionally-run bakeries that can produce superior products at par with
what the world has to offer. And our showing at the recent World Pastry Cup in Lyon,
France, where three Filipino pastry chefs emerged 12th among 21 finalists and won the
Scupted Ice special award, lends a clear testimony to Filipino baking artistry.

From one generation to the next

As ownership of long-standing bakeries have changed from generation to generation, we

have also seen how well the heirs have risen to the challenge of ensuring that the legacies
passed on to them will last. Mark Sanchez of Silay’s iconic El Ideal Bakery, Anthony Pantoja
of Panaderia Pantoja, Sandra Ng of Iloilo’s 119-year-old Panaderia ni Pa-a, Michael Sy of
Cebu’s La Fortuna Bakery and so many young people like them have vowed to preserve our
baking traditions while bracing themselves for the winds of change that constantly descend
upon the industry they grew up in.

For instance, new owner Wilson Lee Flores has harnessed the power of social media to
breathe new life into Kamuning Bakery (since 1939), the only one that still makes the
legendary pan de sal de suelo (bread baked directly on the suelo, or floor of the oven). Its
presence on Facebook, Instagram and Twitter has helped to double its sales. Kamuning
Bakery has now become a full-fledged bakeshop offering modern custom cakes along with
the classic egg pie and cookies like bodigos, apas, lubid-lubid and more. And young
customers have since “discovered” the bakery, wanting a taste of the breads of old.

Indeed, as can be seen at the recent Bakery Fair attended by thousands of visitors who soaked
up new information about Philippine baking, things do seem to be looking up for the
industry—for bakery owners, newbie pastry chefs, the lowly panadero, as well as the mom-
preneurs and home bakers who sell their products online and in weekend markets.

To them, baking has been and will always be more than something that literally and
figuratively puts food on the table. It is a source of inspiration. It is an enduring passion from
which they reap the sweetest and most satisfying rewards. With them, we can rest well,
knowing that the local baking industry is in good, eager and more experienced flour-dusted
hands. — BM, GMA News

Source: http://www.gmanetwork.com/news/story/440170/lifestyle/food/a-good-rise-what-the-
future-holds-for-the-philippine-baking-industry

E.How to start a bakery business

Turn their love for pandesal into a thriving business by starting your own
bakery
With bread being the country’s second staple after rice, the bakery business is one of those
ventures that is sure to bring multiple returns with just a minimal investment. By taking the
time to learn the craft, you too can start your own bakery business and potentially make good
money out of it.

A TICKET TO PROFITS

Take the case of former bus inspector Godofredo Molde, 45, who has pocketed P500,000 in
just a year of selling pan de sal. Armed with P150,000 in startup funds and a lot of guts, he
took the plunge of starting his own business - and came out on top. He has parlayed his bold
investment to foot house repairs and acquire a delivery truck for his growing business.

"I used my P150,000 capital in acquiring the three small pan de sal stores of my friend’s
brother, and that included some goodwill money for the recipe and training. I have added
another store since," he said.
The revolving daily capital for the four stores, he said, is only P7,000. Molde decided to
concentrate on pan de sal because its market is more predictable and the stores only need to
stay open from 5 am to 9 am.

One of his stores, sells P6,000 worth of pan de sal daily during weekends, and P4,000 during
regular days on the average. According to him, pocketing a cool P2,000 profit is the norm for
each of his bakeries.

A PROFITABLE BUSINESS

“Bread is the country's second staple and everyone eats bread. Though consumed mainly as
breakfast and snack fare, bread is also taken at lunch, usually as burgers and even dinner
time. Bread is a convenience type of food. You don’t have to sit and have a formal dinner just
to eat bread. In fast food shops, you may get your bread right at the counter and you even
dont have to call a waiter to serve you.”

Bread, he added, may be consumed while walking, riding a bus or even while whiling away
time anywhere.

But while the bakery business is a profitable one, Pinca said it is also a demanding
profession. Aside from investing money, he said a good amount of time, patience and study is
required if one is to put up a successful bakery business.

Source: http://www.entrepreneur.com.ph/startup-tips/how-to-start-a-bakery-business/page/1

2.2 RELATED STUDIES

2.2.1 FOREIGN STUDIES

A. All You Knead id Dough (A profitability analysus of the bakery of a

retail store)
Abstract

Background and research problem: Over the years, companies have developed advanced
systems made to measure and control the profitability of their sales. One industry that has put
a lot of confidence in highly developed control system is the retail industry. These systems
provide important information about sales and margins for every product in the assortment
range of the company. What the systems do not always take into account is that different
products require different amount of indirect resources to be sold. The owner of the Exclusive
Store Sweden knows that the bakery sector of his store has shown an excellent profitability
for a long time, according to the gross margin of his accounting system. In spite of the
excellent margin, he worries about the trustworthiness of the figures. The owner thinks that
he wants to know what his margins produced in his management system and he wants to
know what his margin would look like if he was to include all of the costs related to the
products of the bakery.

Purpose: The purpose of the thesis is to do a profitability analysis of the bakery section of
the Retail Store, Exclusive Sweden.

Delimitation: This thesis is a case study of the store Exclusive Sweden, which means that the
thesis is restricted to one certain store. The thesis will be leaving out factors such as customer
satisfaction and customer value, the focus is on constructing a model in order to analyse the
costs of the bakery sector of Exclusive Sweden.

Method: This thesis is based on empirical data gathered from a case study of a retail store.
The empirical data is analyzed with an activity-based method of costing inspired by
theoretical findings. The result of the analysis is compared to the result of a Gross margin
based method of costing.

Results and conclusions: The thesis shows that information from a gross margin based
method of calculation can be misleading in a sector of a retail store that requires a relatively
high amount of indirect resources. Information of the profitability of different products can
be misleading when different products consume different amount of indirect resources.

Further Studies: One way to investigate further is to analyze the profitability in other sector
of a retail store that consumes a relatively large amount of resources; for example the fruit
sector or deli counters. To further investigate the usefulness of the Gross margin based
method, similar studies should also be made of other retail stores.

The store of the study uses a paste bakery process to produce their bread. Different retail
stores use different kinds of baking processes and it would be interesting to evaluate the
methods of calculations in other type of bakeries.

Introduction

This chapter presents the background and the problem of the stud. The problem is discussed
and the purpose of the study is defined. There is also a short description of the restrictions of
the study.

Background

The purpose of management accounting is to direct an organization and its decision makers
towards a certain economic goal, which could be profitability, sales, cash flow, customer
satisfaction or value for money.

To affect an organization by management accounting, the process needs operating business

data nad management control measures are divided into three groups:

 Formal management control measures

 Organization structure
 Less formal management control measures
The formal group of management control measures includes methods like product
calculation, budgeting and result planning.

Organizations can apply product calculation in several different situations, for example
during pricing and cost control. When an organization adopts this kind of formal
management control, each calculation situation is unique; in other words there is no universal
product calculation. Because of this, the principle of product calculation is that every unique
calculation situation will decide the shape of a specific calculation. This is why every
situation in which calculation is performed should include relevant economic consequences.

Even though all relevant economic consequences should be included in every calculation
situation, it is not always possible to do so because of the complexity of the factors affecting
the calculation. As a result, many product calculations have been simplified. Users of
simplified calculation methods put more focus on factors that provide relevant financial
implications, in other words, factors which are economically important.

One example of companies, which adopt advanced calculation systems, can be found in the
retail industry. What companies in the retail industry have in common is that they are the end
of the supply and have a great deal of different products; therefore, they apply advanced
control system to be able to monitor sales and determine key ratios of their vast supply of
products. The control systems are advanced in the way that they keep track of a wide range of
products but the calculation methods are simplified in order to cover all of the products in the
assortment range.

Method

This chapter starts with a description of the research method of the study. The chapter is
focused on describing the methods used to collect empirical data. The empirical data is later
analyzed with an activity-based method of costing presented in the theoretical findings. The
result of the analysis is compared to the result of the analysis is compared to the result of a
gross margin based method of costing.

Conclusions

This first part of this chapter discusses the result of the analysis and addresses the purpose of
the study. The second part highlights some of the problems identified in the analysis and
presents some suggestions to address the problem. The chapter ends with some suggestions
for further research.

The gross margin approach, which is a common method of calculating the margins in the
retail industry, is a suitable method when calculating the margins of goods that do not include
value-adding activities. This case study shows that the gross margin method can be
misleading when the objects of calculation are products that require value-adding processes;
hence more indirect costs.

The case study analysis was made with an activity based approach. The activity based
approach made it possible to see how different products consume different amounts of
indirect resources of the store. By using the activity based approach new costs were identified
that had not been related to the bakery before.

The gross margin approach showed an outstanding margin of the bakery of 46 percent, but it
did not include any indirect costs. The margin acquired by using the activity based approach
shows a negative margin of 6 percent.

The main reason for the different result of the two methods is that one of the methods
includes indirect costs and one does not, the difference in result is most evident in the paste
product group where the gross margin method shows a margin of 48 percent and the activity
based method shows a negative margin of 12 percent.

Source: https://gupea.ub.gu.se/bitstream/2077/26518/1/gupea_2077_26518_1.pdf

B. Competitive Dynamics In The Irish Bakery Industry

Abstract
This dissertation explores a stream of research within Strategic Management called
Competitive Dynamics. The aim of Competitive Dynamics research is to develop
empirically robust predictive models of how organisations compete through an analysis
of the actual competitive actions they undertake. The early research into competitive
dynamics allowed researchers to develop accurate descriptions of the manner and
context of how competitive actions across various industries and services occurred. The
early research then developed into explorations of the factors that influence the
decisions made by managers and business owners. Such factors as resource
endowment, organisational size and age all play influential roles in the decisions
manager make with regard to competitive strategies and actions. This dissertation
attempts to explore the manner in which senior managers of Irish bakeries develop
mental models of the competitive environment, what motivates them to engage in
competitive activity and what capabilities their organisation possess to engage in
competitive actions. The Awareness-Motivation-Capability model (AMC) developed by
Chen (1996) is a framework on which research into the competitive cognitions of
managers can be formulated and a focus of this dissertation. The influence of the
resources an organisation possesses and the strategic group it is part of all influence the
awareness, motivations and capabilities of the organisation’s decision makers. The
author through this research has developed a model of competitive dynamics that also
incorporates the Resource Based View of the Organisation. The author through this
research process has also identified a new aspect of competitive dynamics that the
author has referred to as the transmission or conduction of competitive tensions from
one strategic group to another and across industries
Introduction
Overview of Competitive Dynamics Research
A vital element of strategic management research for a number of decades has been to
try and understand and predict the competitive behaviours of firms. Competitive
dynamics research is the study of the series of competitive moves and counter moves
organisations engage in with the aim of enhancing profitability, market share or
industry position and ultimately firm performance (Ferrier, Smith & Grimm, 1999). By
studying the series of competitive interactions organisations use and the resulting
counter moves by competitors, competitive dynamic research scholars aim to identify
commonalities that can help predict the type, level, range and scope of competitive
actions. Within the study of competitive dynamics a central theme to have emerged
from the literature has been the analysis of competitors and also to develop the ability
for organisations to identify competitors. Competition is a fact of everyday business but
with the rapid development of technology and the increasing pace of globalisation,
businesses are now faced with ever higher and intense levels of competition. The
traditional strategic management models that allowed businesses to frame corporate
and business level strategies now have to deal with the impact of hyper-competitive
markets where the actions of competitors to try and whittle away a firm’s competitive
advantage (D’Aveni, 1995) is ever present. The area and processes of competition have
been addressed by the fields of industrial economics, analysis of industry structures
(Porter, 1980) and more recently by Game Theory (Branderburger & Nalebuff, 1996).
Competitive dynamics research on the other hand is a relatively new area of research
that focuses on the series of actions and reactions of competitive firms and how this
interplay of empirically measurable actions affect firm performance as opposed to the
purely logical modelling of potential outcomes derived from the formerly mentioned
fields (Chen & Miller, 2012). The roots of competitive dynamics as a research area can
be traced back to the early works of Josef Schumpeter and then later by the Austrian
school of economics. Schumpeter’s theory of creative destruction essentially describes
how all firms that earn above normal profits or are industry leaders are exposed to the
pressures of competition and innovation. The persistence and consistency of
competitive pressures on organisations was described as a “perennial gale of creative
destruction”. Schumpeter’s main argument was that no firm was safe from the
pressures of competition and that for any organisation to try and maintain its position
as an industry leader it must understand the consequences of its competitive actions
and the resulting reactions of competitors (Schumpeter, 1934). The main focus of
competitive dynamics research has been on the analyses and study of the competitive
moves between a focal firm and its competitor. This dyadic approach to understanding
competitive behaviours is a key attribute of the current competitive dynamics research.
An emergent strand of competitive dynamics research has been with focus on
antecedent cognitive workings within the management teams in how they generate
perceptions of the competitive forces their businesses face. The Awareness- Motivation-
Capability model (AMC) within the competitive dynamics literature as described by
Chen (Chen, 1996, Chen, 2007) examines these three key variables that influence the
competitor’s actions and possible responses. In general the model examines how
management teams perceive the competitive environment they are part of and how this
influences the firm’s choice of competitive moves.

Objectives of this Dissertation

The aim of this dissertation will be to gain an insight into how senior managers of a
number of Irish bakeries perceive the competitive environment their businesses form
part of, what motivates them to engage in a single or series of competitive actions and
what capabilities they possess to engage in a particular competitive move. By using the
AMC model as a framework and structure by which to investigate these key drivers of
competitive activity, the author wishes to investigate the tools and methods’ used by
Irish bakery managers in generating perceptions of its competitive environment by
looking at the mechanisms they use to stay aware of competitors’ actions,
understanding the reasons and motivations behind conducting a series of competitive
moves and what resources and capabilities they possess relative to the organisations
size and age. The reason for the author’s choice of the bakery industry as a subject area
for research is due to a number of factors. These include: 1. The author has worked in
the bakery industry in Ireland for approximately 15 years and has strong trade
knowledge and an understanding of some of the challenges the bakery industry in
Ireland faces. 2. The author is a qualified baker and bakery technologist with access to
a number of senior managers in bakeries through the country. This facet could provide
some insightful and useful data that can help bakery managers with their formulation of
competitive actions. 3. To the best of the authors knowledge there is currently no
existing literature that has examined the cognitive process of Irish bakery management
teams in relation competitive action formulation.

Research Methodology
Introduction
The aim of this chapter of the thesis will be to explain the design and the methodology
of the data collection process. The intention of this methodology chapter will be to set
out how and why the author has chosen the methods he has for the research on
competitive dynamics within the bakery industry in Ireland. This thesis aims to be a set
of comparative case studies of how bakeries in Ireland form perspectives of the
competitive landscape, what motivations elicit initiation of a competitive actions and if
the stock of resources the company currently possesses influences the competitive
actions chosen.
The author will first state the objective of the empirical research, the author will then
set out the design of the research activity, how it will be conducted and the rational for
doing so, how the author identified the cases that were chosen, the process of collection
of the data and the analysis of the data. The author will also address the underlying
philosophical, ethical considerations of this research.

Chapter Conclusions & Summary

The overall aim of this chapter of the research dissertation is to outline to the reader the
rational of the methodology undertaken in this research. The author has addressed
what research is and why it important. The author has also further defined the role of
qualitative research and its relevance to this dissertation.
The author then explored the varying philosophical views of research and how the
choice of approach would influence the design and planning of this dissertation.
Accordingly the most suitable approach to this research would be through the use of a
subjectivist’s perspective due to the intrinsic properties of competitive dynamics
research and its historical roots in the subjectivist’s approaches of the Austrian school
of economics.
The author then set out the proposed design of the research with Fig. 7 showing a
descriptive model of how the research would be conducted. The author set out his
rational for choosing a case study analysis of a number of different bakeries and why he
felt this was an appropriate method of research for this dissertation. The researcher
then lay out how the samples were chosen. This was based on the need to gain a range
of perspectives from the bakery community and those with varying scales of resources
available to them to conduct competitive actions. The criteria for choosing the samples
that the researcher did were lay out in this chapter as well.
The final part of the research methodology chapter described the range of questions
that were to be asked in open ended interviews with the managers of the organizations
that were chosen. The author also gave consideration to any potential ethical issues that
may have emerged during the research process. Up to the point of writing this
dissertation, so such issues were identified.

Source: http://trap.ncirl.ie/2034/1/davidcoghlan.pdf

C. Pre-Feasibility Study (Bakery and Confectionery)

Introduction to Scheme
‘Prime Minister’s Youth Business Loan’, for young entrepreneurs, with an
Allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially by the
National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Small business loan up to Rs. 2 million with tenure up to 8 years inclusive of 1
year grace period, and a debt : equity of 90 : 10 will be disbursed to SME
beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah,
Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered
Tribal Areas (FATA).

Executive Summary
Bakery and Confectionery business is growing in both urban and semi-urban
areas. This pre-feasibility study encompasses the bakery business located in
commercial neighborhood surrounding and middle income residential localities.
Major products include cakes, snacks, sweets, nimko, biscuits, bread and
general confectionery items, which will be sold to target customers of the vicinity.
The sales outlet will be supported by an in house production facility. Selections of
adequate product mix and business location, supported by marketing efforts are
the critical success factors.
This Bakery & Confectionery business will be started as sole proprietorship with
an investment of Rs. 2.04 million. This project is based on 90% debt and 10%
equity ratio. Projected NPV, IRR and Payback of this project are Rs. 8.29 million
51% and 2.77 years respectively. The business will provide employment
opportunity to 06 individuals including the owner manager.

Brief Description of Project & Product

The proposed Bakery and Confectionery shop is a small scale project with a
production area and sales out-let. It will be equipped with basic machinery and
fixtures. The production area will require covered area of 2,700 sqft and the
outlet will be established on 900 sq.ft. The sales outlet will remain open for
business for 16 hours per day around the year.
Product mix will include cakes, snacks, sweets, nimko, biscuits, bread and
general confectionery items. This merchandise will be prepared and acquired
according to the demand of local customers and in quantities directly proportional
to expected sales.
Maximum sales are expected during Eid seasons and in winters. First year
revenues of the project are estimated to be Rs 11.24 million. It is expected that
production growth rate will be 5% per annum along with 10% per annum increase
in sales price.

Critical Factors
 Background knowledge and experience of the entrepreneur in the bakery
business.
 Induction of trained human resource for production of requisite items.
 Maintenance of quality and hygiene standards.
 Pricing strategy & understanding requirements of the target customers
 Decor presentation and layout of the shop and products.
 Location considerations for easy access of the customers.

Installed & Operational Capacities

As mentioned, the sales of bakery items are 70 % of total sales revenue. The
installed capacity of bakery depends on the variety of the products being
produced. Installed capacity of major production items is cakes 23,785 pounds,
40,470 pieces of snacks, 6,035 kgs of sweets and nimko, and 5,325 kgs of mixed
biscuits.
Starting capacity utilization is 70% of the installed capacity growing at the rate of
5% per annum.

Potential Target Market

Areas having presence of middle income groups in the smaller cities will be an
ideal location for opening sales outlet of the business. Ideally, production facility
of the workshop should be located alongside the sales outlet; however, if the
rental costs are a constraint, production facility can be established at a distant
economical location. In such a case, higher transportation costs may need to be
factored in.
Smaller cities with growing middle income group such as Sargodha, shekhupura,
Gujrat, Sukkur, Hyderabad, Nowshehra, Charsadda, Quetta, Khuzdar and Gilgit
are some of the prospective cities for setting up this business.

Project Cost Summary

A detailed financial model has been developed to analyze the commercial
viability of Bakery and Confectionery business under the ‘Prime Minister’s Youth
Business Loan’. Various cost and revenue related assumptions along with results
of the analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexures.

 Project Economics
All the figures in this financial model have been calculated for estimated sales of
Rs. 11.24 million in the year one. The capacity utilization during year one is
worked out at 70% with 5% increase in subsequent year’s up to the maximum
capacity utilization of 95%.
Project returns are based on the margins of the items sold. Profitability of the
business is highly dependent on raw material cost. Moreover, in bakery or food
item businesses the probability of wastage is higher, hence the reduction of
wastage through demand and supply analysis will play a vital role in profit
maximization. In this regard, efficient supply chain management will be an
appropriate strategy for this venture.
Another crucial factor for the success of this project is to maintain the hygienic
standards and clean environment to avoid customer complaints.

 Space Requirement

The space requirement for the proposed bakery and confectionary unit mainly
includes the production hall, store room and a retail outlet. For this purpose it is
recommended that a rented place of maximum 3,600 sqft (i.e. 2,700 sqft for
production space and 900 sq.ft for outlet) would be acquired on rent basis in the
vicinity of newly developing housing societies in the major cities. The production
space and bakery outlet could be acquired at separate places. However, it
should be ensured that both the facilities are located closely for easy supply of
produced goods to the outlet.

 Machinery and Equipment Requirements

The required machinery is easily available in the local markets. Used and new
machinery can be purchased from different whole sale markets including Lahore,
Karachi, Peshawar, Gujranwala, etc. These requirements are based on the
proposed production plans as mentioned elsewhere.

 Furniture & Fixtures and Other Equipments

In addition to the above plant machinery and equipment, following necessary items
will be required for the proposed venture.

 Human Resource Requirement

The owner of the business is recommended to personally manage the operations of the
proposed venture. Additionally, Above HR composition shall be engaged in order to
manage the operational affairs of this project under the supervision of the owner,
Appropriate experience for chef and salesmen would be required.

 Utilities and Other cost

An essential cost to be borne by the company is the cost of electricity and gas.
The electricity expenses are estimated to be around Rs. 50,000 per month,
Whereas, gas expenses are estimated to be Rs. 500,000 / year (including both
Natural gas and LPG at 100% capacity utilization). Considering the non
Availability or low pressure of natural gas alternate burning fuels i.e. LPG, wood
or kerosene oil may need to be considered. Advance procurement of raw
Materials and packing material for at least 03 days along with 02 days finished
goods stock level will be maintained for uninterrupted sales of goods, at the
production and outlet facility

Source:
http://www.smeda.org/index.php?option=com_phocadownload&view=category&download=
923:bakery-confectionery&id=99:food.

D. A Bread Baking Intervention- An Outcome and Process Evaluation

ABSTRACT

INTRODUCTION: Despite frequent discussions about the health-related value of

carbohydrate-rich foods, the grocery stores offer a wide range of bread varieties. In this
context, there are several actors (e.g. Fedon Lindberg, Birger Svihus and Ingers rugbrød)
claiming that they have the recipe for the ”ideal” bread. However, their breads are very
different, and the argumentation why they are healthy is clearly embedded in very different
nutrition philosophies; i.e. low glycemic index/low carb (Lindberg), low energy (Svihus) and
high fiber (Ingers rugbrød).
PURPOSE: The purpose with the present thesis was therefore to elaborate a more holistic
view on what an “ideal” bread really is.

METHODS: Four main criterias for an “ideal” bread were set. The “ideal” bread recipe
should be; (1) healthy, (2) sensory appealing, (3) environmental beneficial, and (4) practical.
To set some exact criteria in relation to the health aspect, it was decided that the resulting
bread recipe should fulfil the Keyhole requirements (minimum 25 percent whole grains and 5
gram dietary fiber/100 g, as well as maximum 5 g sugar, 0.5 g salt and 7 g fat per 100 g), and
achieve at least three cakes on the Bread scale (i.e. a whole grain bread). A literature review
was conducted, and bread baking books were searched for a suitable recipe to be modified to
fit with the criteria.

RESULTS AND CONCLUSION: The resulting bread recipe had a high coarseness (78
percent), relatively much dietary fiber (7.6g/100g), low amounts of salt (0.2g/100g) and fat
(3.5g/100g), and no added sugar. Due to a high water content, which among others led to a
sensory appealing texture, the bread also had a relatively low energy-density.

By basing the recipe on local grains (i.e. rye and oat), environmental considerations were
furthermore taken into account. With regard to the practical aspects, an easy and timeefficient
fermentation method was identified (i.e. long and cold fermentation (up to 24 hours at
approximately 4oC)).

All in all, instead of having an exclusive health focus, it should in the case of an “ideal” bread
be strived for a broader approach where all the aspects surrounding its production and
consumption, is taken into account.

Source: https://oda.hio.no/jspui/bitstream/10642/1199/2/maeh_lilleberg_2012.pdf

E. Influence of Digestion Model, Product Type, and Enrichment Level

on in vitro Bioavailability of Lutein from High Lutein Functional
Bakery Products

ABSTRACT
INFLUENCE OF DIGESTION MODEL, PRODUCT TYPE, AND ENRICHMENT
LEVEL ON IN VITRO BIOAVAILABILITY OF LUTEIN FROM HIGH LUTEIN
FUNCTIONAL BAKERY PRODUCTS

Lutein is a lipid soluble plant pigment with recognized health benefits, although intake
levels by the general population and bioavailability are generally low. These factors
have led to interest in producing high lutein functional foods, including baked products.
Cookies, muffins, and flatbreads, were produced at three enrichment levels (equivalent
to 0.5, 1.0, and 2.0 mg per serving) and then subjected to an in vitro simulation of
human gastric and duodenal digestion coupled with Caco-2 monolayers. Lutein transfer
to the aqueous phase during digestion (i.e. bioaccessibility) and monolayer absorption
were determined as estimates of potential bioavailability. The higher fat products
(muffins and cookies) resulted in higher overall bioaccessibility (p<0.05) and
absorption at most levels of enrichment. Digestive conditions representative of the fed
and fasted state were compared, with the fed model resulting in much higher estimates
of bioavailability. Lutein concentration in the aqueous was the most important factor in
determining subsequent monolayer absorption.
Overall, the cookie was the most effective product for bioaccessibility, and enriching them to
the highest level would result in the greatest delivery of bioavailable lutein to the body.

INTRODUCTION

Lutein is a member of the carotenoid family of lipid soluble pigments. It has gained
recognition as being potentially beneficial to human health, particularly to prevent the
development of certain chronic eye diseases, but also more generally as an antioxidant.
However, the intake of lutein by the general population is low. Combined, these factors
have led to interest in producing high lutein functional foods.
Lutein bioavailability from supplement and functional food matrices is an important
consideration. As fat soluble molecules, the carotenoids must be transferred to the
aqueous phase during digestion by incorporating into the mixed bile salt micelles. With
lipophilic bioactives and micronutrients this transfer process is a limiting step in
bioavailability. Direct evaluation of carotenoid bioavailability from foods is difficult as
human studies are time consuming and expensive. They also may not permit a
mechanistic understanding of the processes occurring during digestion. Therefore, in
vitro methods for simulating human digestion which have become useful for estimating
bioavailability. Specifically, lutein bioavailability can be estimated by determining the
proportion of ‘bioaccessible’ lutein – i.e. the proportion of the compound which is
transferred to the aqueous phase during an in vitro experiment. A number of food
products and various lipophilic molecules have been studied using this approach. In
some cases, the simulated digestive conditions are coupled with an absorption assay
using Caco-2 cells which serve to mimic the intestinal epithelium, providing a way of
estimating uptake of a micellized compound.
Recently, there has been interest in bakery products as lutein enriched functional food
products due to their popularity and widespread consumption.

RESULTS AND DISCUSSION

The significant differences between the non-enriched products are attributable to

differences in flour fraction, as flour is the main lutein source in these products. Of note,
in many cases, the lutein content of the enriched products was less than what was
intended. This can be related to heat-induced destruction of lutein (24,37), but possibly
also because of inconsistencies in the lutein distribution from the supplements. It is
important to note that some of the lutein loss during baking was due to isomerization to
other carotenoids – primarily cis- isomers. These can be seen in the HPLC traces (Fig 2).
During pilot studies, although loss of all-trans lutein during baking was 30-40%, the
total carotenoid content of the products was quantified as well.

Overall carotenoid loss was roughly 15%, indicating that much of the all-trans lutein
loss was due to isomerization, the biological effects of which are unclear. Products in
this study were subjected to the digestion procedure within 2 hours of being produced
in order to minimize losses due to degradation. This decision was also made in order to
minimize any structural or other chemical changes within baked products which might
occur during storage, including retrogradation of gelatinized starch granules (95). In
future studies, it would be wise to evaluate and standardize products for lutein content
prior to performing the digestions to simplify the statistical analyses and interpretation
(see section 3.4 for a description of these). In this study it was not possible to do so
because products were utilized for the digestion procedure within 2 hours of being
produced in order to prevent any degradation of the products.

4.2 Expression of Lutein Micellization and Absorption Data

Analysis of both lutein micellization and Caco-2 cell absorption of lutein was done first
proportionally to the lutein present in the foods prior to digestion (i.e. bioaccessibility is
expressed as % of original lutein transferred to the aqueous phase of the digestate
samples). This is consistent with how results from these types of studies are generally
presented in the literature (56,63,66). It is an effective way to compare different
products in terms of how bioaccessibility is expected to differ between products such as
for comparisons between different cooking methods or different meal compositions.
This basis of comparison makes most sense when considering unenriched foods where
lutein content is fixed. However, for enriched products, it is more meaningful to
compare the products based on the absolute amount of lutein absorbed since the
products may be 42
enriched to various levels intended to deliver enhanced amounts of bioavailable lutein. For
the purposes of this discussion, both lutein transfer to the aqueous phase will be discussed
both in terms of proportional and absolution amounts.

CONCLUSIONS

The purpose of this study was to evaluate three different baked product matrices in
terms of their ability to deliver lutein, by focusing on the stages of bioaccessibility and
absorption using models of human digestion and intestinal absorption. Flatbreads
containing zero fat, muffins containing 12% fat (dwb), and cookies containing 22% fat
(dwb) were prepared with targeted lutein concentrations of 0.0, 0.5, 1.0, and 2.0 μg/g.
These products were subjected to conditions representative of the fasted and fed states
of human digestion in the upper gastrointestinal tract. The aqueous digestate was
analyzed for lutein content to determine the bioaccessible fraction. To study the
absorption characteristics of the micellar phase structures formed during digestion of
the different product types and enrichment levels, samples of the digestate were
incubated with Caco-2 cell monolayers. The proportional as well as absolute amounts of
lutein absorbed by each monolayer were determined and compared.
The strongest conclusions relate to the digestion model comparison and the comparison of
micellization efficiency between the three product types under the fed state. Under the most
physiologically relevant conditions studied (i.e. the fed state) the differences between the
product types in terms of lutein bioaccessibility were dramatic: the lutein within cookies was
the most bioaccessible in both unenriched and enriched products, and the flatbread lutein was
much less bioaccessible in the enriched products. This clearly demonstrates the importance of
the presence of fat in products prepared for lutein delivery and is consistent with the
literature.

Source: https://atrium.lib.uoguelph.ca/xmlui/handle/10214/3288?show=full
2.2 RELATED STUDIES

2.2.2 LOCAL STUDIES

A. Feasibility Report on Bakery and Confectionery

Introduction

This particular feasibility is regarding “Bakery & Confectionery” The project feasibility may
form the basis of an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up, production,
marketing, finance, business management.

Steps Considered Before Investments

 Number of customers
 Cites and area of country
 Potential of customers
 Selection of right location
 Project Brief

Major products in this case would be cakes, snacks, sweets, biscuits, bread and general items

A combination of 2 outlets, one in a low-income area and another in a posh area, is used in
this study along with 27% sales to other bakeries at trade discount of 15 %.

Project Capacity

Project Capacity cannot be based on machinery capacity. The proposed bakery outlet will be
working from 6.00-am morning to 12.00 midnight. These outlets determine the factory timing
for production. It is proposed that 2shifts are necessary for production. For the proposed
project, oven of 7x7x10 feet with 8 rotating stands having 5 trays on each stand is used. So
the oven capacity will be: 60-kg biscuits in 30 baking minutes at a temperature of 150 degree
centigrade. 120 pieces of large Pizza in 20-25 minutes at a temperature of 150 -180 degree
centigrade. Number of working days has been taken as 365 with average 2 shifts per day.

Conclusion

This study is conducted about making products in the bakery. Using machinery in making
breads, biscuits, snacks and general items could help the owner lessen the expenses for the
salary that may be given to the workers. But the variable cost for the electricity and other
utilities expense may be higher than the normal rate.

Source: http://www.slideshare.net/nakulagrawal11/feasibility-report-on-bakery-confectionery
B. Veggie Bread
Introduction

A healthier variety of breads are what we are in the cognizance. For this brand perception that
we formalize we would like to linger the interest of the buyers and also the consumer with
our version of Veggie Breads. We would like to introduce varieties of flavors that consumer
that would not normally taste with the following flavors that we would like to propose:
malunggay (horseradish), ampalaya (bitter gourd), talong (eggplant), kamatis (tomatoes) etc.

Nowadays, people would choose an artificially made food product that has a less healthy
nutritional content over the conventional foods that is said to be “good for our health” that is
available in the market. Promoting a healthy and convenient way of eating by introducing
varieties of Veggie Breads to the public consumers would also benefit not just the consumers
with the health nutrition content it have but also helps the Filipino farming industries in the
country as well.

Background of the Study

We make this product proposal for the purpose that we want to serve our valued customers in
a new product dishes that we give them a healthy food that will enjoy not only for adults but
also for the young ones. We add special ingredients for our product such as malunggay. We
would like to introduce varieties of flavors that consumer would not normally taste of the
bread. Nowadays, people would choose an artificially made food product that has a less
healthy nutritional content over the conventional foods that is said to be a “good for your
health lifestyle” that is available in the market. Promoting a healthy and convenient way of
eating by introducing varieties of Veggie Breads to the public consumers would also benefit
not just the consumers with the health nutrition content it have but also helps the Filipino
farming industries in the country as well they will encourage.

Statement of the Study

This feasibility study is intended to evaluate the feasibility of selling “bread” with vegetable
flavored.

Specifically, it aims to evaluate and analyze the following areas:

 The Technical aspect of the study

 Product Description
 Product Process
 Equipment/Materials
 Plant Location
 Plant Lay-out

 The Marketing aspect of the Study

 General Business Condition
  Competitive Condition
 Target Market
 Demand
 Product
 Pricing Strategy
 Promotion
 Packaging

 The Financing aspect of the study

 Capitalization
 Sources of Funds
 Total Sales
 Total Expenses
 Income Statement (5years projected)
 Balance Sheet (5years projected)
 Cash Flow Statement (5years projected)
 Return on Investment
 Ratio Analysis

 The Management aspect of the study

 Form of Ownership
 Structure
 Job Analysis
 Company Policies

 The socio-economic aspect of the study

 Contribution to the government
 Contribution to the society

Conceptual Framework

The technical study of the project comprises product description, product process, equipment
and materials, plant location and plant layout. In this area, it discusses on how the product
“Veggie Bread” is produce, what ingredients and equipment’s are needed, and where will the
researchers going to put the said business and its layout.

The marketing study covers the general business condition, competitive condition, target
market, demand, supply, product, pricing, strategy, promotion, and packaging. This area talks
about the structured questionnaire floated to the respondents and the result determines the
demand and supply and for the researchers to know whether their product will penetrate the
target market.

The financial study shows the capitalization, sources of funds, total sales, total expenses,
income statement, balance sheet, cash flow statement, return on investment, and ratio
analysis. This area discusses if the business is profitable or not. In addition, it serves as a
guide for the researchers to know if the transactions within 3 years are increasing.

The management study shows the form of ownership, the structure of the business, job
analysis and company policies that the researchers had formulated.

The socio-economic study shows the contribution of the study to the government and to the
society. This area proves that the business existed not only for profit purposes, but also for
the improvement of the welfare of the people.

Sources and Methods of Collecting Data

The researchers have gathered data through the primary data. The primary data gathered by
giving away a structured questionnaire to selected students in different departments of
Capitol University.

Technical Study

This study discusses about the process of production and the activities of the business. It
states also the machineries and equipment used in production and other aspect regarding
bringing the raw materials into finished products ready for trade. Plant layout, size and
structures are all presented for the purpose of identifying the business operation. Also product
specifications the product processes using the flow chart. The list of machinery, tools and
equipment are enumerated with their corresponding cost, raw materials and plant fund
sources are also cited.

General Business Condition

All bakery products and ingredients thereof shall be stored, handled, transported and kept so
as to protect them from spoilage, contamination, disease and unwholesomeness. Boxes and
other permanent receptacle or containers for the storing, receiving or handling of bakery
products shall be so placed and constructed as to be beyond the reach of contamination from
streets, alleys and sidewalks and from animals and shall be kept clean and sanitary by the
bakery.

There shall not be used in bakery products or in the ingredients thereof any ingredient or
material, including water, which is spoiled or contaminated or which may render the product
unwholesome, unfit for food or injurious to health.

Every room used for the manufactured of flour or meal food products shall have the furniture
in a clean and sanitary condition, and screened against flies, shall have plumbing and
drainage facilities, together with suitable wash basins, wash sinks and toilets or water closets,
which shall be kept in a clean and sanitary condition. The said toilets or water closets shall be
in rooms having no direct connection to any room in which bakery products or ingredients
are prepared, stored handled or displayed.

In connection with every bakery, suitable room shall be provided for the changing and
hanging of the wearing apparel of the workers or employees, which shall be separate and
apart from the work, storage and sales rooms, and shall be kept in a clean and sanitary
condition.

No person shall sit or lounge or be permitted to sit, lie or lounge upon any of the tables,
shelves, boxes or other equipment or accessories used in connection with the production,
preparation, packing, storing, display or sales of bakery products in a bakery.

No live animals or birds shall be kept in any building or part thereof used as a bakery for such
production, preparation, packing, storing display or sale of bakery products.

Before beginning the work or preparing, mixing or handling of any ingredients used in the
production of bakery products, every person engaged in such work shall wash the hands and
arms, and after using toilets or water closets, every person therein engage shall wash the
hands and arms thoroughly and then rinse in the clean water, and for this purpose the owner
or operator of the bakery shall provide sufficient facilities and post notes to this effect.

No owner or operator of a bakery shall require or permit any person affected with any
contagious, infectious or other disease or physical ailment which may render such
employment detrimental to the public health, nor any person who refuses to submit to an
examination, to work therein.

Employees shall be prohibited from smoking while preparing and baking veggie bread
products.

Product Description

The Veggie bread is made by baking malunggay “horseradish plant” bits in the dough of
flour and water added with flavors. The added malunggay bits in the dough these will serve
as invaluable nutrients added to our breads and have a cheap price and are easy to bargain in
the market.

The product will come in four flours and will be sold on differentiated price. Below are the
descriptions of the four proposed bread flavors.

 Peanut Bread – Peanut butter bread with a small amount of chopped roasted peanuts
offers delightfully surprising crunch and with a sliced malunggay minced mixed in
the dough to put a healthy touch to it.
 Ensaymada – Sweet bread is one large snail-like coil dusted in sugar with a sliced
malunggay minced mixed in the dough to enhance a healthy touch to it.
 German Bread - A dense, whole grain loaf with sesame seeds for a dense, moist loaf
and with a sliced malunggay minced mixed in the dough to add a healthy trace to it.
 Croissant – A buttery flaky pastry named for its well-known crescent shape.
Croissants are made of layered yeast-leavened dough with a sliced malunggay minced
mixed in the dough to enhance a healthy touch to it.
Materials and Equipment

 Dough Mixers – A dough mixer is an appliance used for householder or industrial

purposes. It is used for kneading large quantities of dough. It is electrical, having
timers and various controls to suit the user’s needs.
 Oven – An oven is a thermally insulated chamber used for heating, baking or drying
of a substance and most commonly used for cooking. Kilns and furnaces are special-
purpose ovens, used in pottery and metalworking, respectively.
 Roller – The dough roller has the three rolls arranged in a vertical stack and too make
a sheet of rounded dough, gently hands pat a dough ball (or chunk of dough) to flatten
it.
 Bread Slicer – A bread slices a larger amounts of bread in the shortest time possible.
A slicing machine will make this job effortless, not to mention the fact that an electric
slicing machine saves you a lot of time.

Marketing Study

This study will help to know the marketing aspect of the business. The marketing aspects will
cover the following: General Business Condition, Tabulation of Results, Target Market,
Demand, Product, Promotion, Marketing strategy, Pricing strategy, Promotion and
Packaging.

For the business to prosper, it should be given time and effort. The proponent of this business
must have desired creativity so as to be able to provide quality service its customers. The
fulfillment of the needs and wants of its customers or target market must be the key objective
of the recommended business.

In every project, feasibility marketing aspect is will-thought-out the most important since it
requires inconspicuous analysis of the business total demand and supply.

Marketing Strategy

The first strategy is market penetrate. Veggie bread is committed to improving the customer
experience in ways they believe few in the industry have done.

This business plan to execute a broader marketing strategy, not simply to build name
recognition and awareness but also to build deeper relationship with the target customers
whom they believe will help promote the brand. To reach the target customer group, we use a
mix of the following marketing methods: radio, billboards, social networking, television and
in-store sampling. Expect to continue to increase media impressions as they strive to build
deeper relationships with their customers. We believe marketing represents an opportunity to
create additional competitive advantage and brand awareness.

The next strategy is market development. The expansion into Filipino has made them subject
to Filipino economic conditions, particularly currency exchange rate fluctuations and political
factors, either of which could have an adverse effect on the financial condition and results of
operations. If veggie bread, expands into other foreign markets, will be subject to other
foreign economic conditions and political factors including taxation.

Methodology

This chapter describes and discusses how the researchers will gather the necessary data and
information that will be used in the entire study. It describes who will be the respondents and
focus of the research. This also shows the procedure of source of data and methods of
collecting data; the chapter also discuss the type of research, research design, and the
research locale where the study will be conducted and description for our product and the
outlook of the industry and the size of the industry, target market, market segmentation and
presentation, in marketing and sales activities, detailed of our product and services
description that we will going to apply to our business and the competition in the market.

Source: http://www.slideshare.net/bryanoculam/feasibility-study-veggie-bread

C. Tinapay Festival: Potential Tourist Attraction in Batangas

Abstract

This study was conducted to assess the Tinapay (bread) Festival in Cuenca, Batangas.
Specifically, this research determined the development strategies of community-based
tourism in terms of planning, organizing, directing, and controlling; evaluated the effects of
development of community based tourism Tinapay Festival in Cuenca; proposed an action
plan in promoting tourism in Cuenca.
The study used descriptive method with the survey questionnaire as data gathering
instrument which was administered among 100 respondents. The results of the study revealed
that the respondents agreed that in order to achieve the success of the Tinapay Festival, there
must be careful planning, organizing, directing and controlling. Most of the respondents are
60 government officials and 40 locales who agreed that the community involved and the
committee in charge proved their incomparable teamwork which made the Tinapay Festival
successful. They developed great teamwork through fair distribution of task resulting to
respect and trust of the residents.

Introduction
An entire global industry of festivals and events has evolved and developed since the early
1990s. The phenomenal growth, coupled with increased customer awareness and choice,
requires the industry to manage the sector effectively and efficiently to ensure sustained
development and growth in the future. On a global basis there are unprecedented interests in
festivals and events – at international and national level, in cities and towns, villages and
hamlets, and in rural and coastal areas.

Festivals and events can help promote their destination and attract tourists. They can be
viewed as a new form of tourism in which to anchor economic prosperity and development.
The image of a destination, product or service can be enhanced or damaged by the success or
failure of a festival or event. The characteristics of festivals and events are unique with
different levels of operating costs and they fall into both the not-for-profit and profit-making
categories. Their purpose varies. Some have an entertainment and educational remit and can
be used to bring different communities together while others can be used for business
promotion. Some festivals and events can be arts related, while others can focus on other
forms of culture such as sport. They can range from small-scale, locally based events, to
large international festivals (Yeoman et al, 2004).

Cuenca is located in the Southern Tagalog Region. The location of the municipality in
relation to Taal Lake and the rolling steep terrain makes it a potential tourist area. The natural
attractions in Cuenca Batangas can be potential tourist spot destinations due to the human
activity to be experienced and enjoyed by both local and foreign tourist. The different natural
attractions which can be found in Cuenca, Batangas are in Mt. Maculot, a 949 feet in altitude,
a man-made tunnels forged along the mountain slopes, Grotto of the Blessed Virgin Mary a
750 ft. in altitude, cemented pathways going to 14 stations of the cross and 1,500 cemented
steps leading downward to Taal Lake shore area in Barangay Don Juan, (a good view of the
Volcano island where beach resorts can be developed).

The Tinapay Festival in Cuenca puts the spotlight on the hardworking bakers or panaderos of
the place, the reason why the town claimed the title “Home of the Bakers”. The festival
includes bread making contests and festive parade to present the finished product of the
bakers. It is celebrated sometime in June, Camo (2013). They showcased development of
other people of Cuenca through the industry. Professionals grew a number from bakeries.
“Mega Monay”, “MalakingSemada”, “MalakingPandesal”, and “PinoyPandesal” were
launched and displayed in the parade.

With the cooperation of Municipality of Cuenca, one of the stakeholders, Mr. Luisito Chavez
holds the Tinapay Festival. The municipality planning and development department are the
ones who organize the program to be used in celebration of Tinapay Festival. The owners of
the bakeries sponsor the pastries/breads to be displayed and distributed during the event.

The researchers decided to conduct as a study on Tinapay Festival in the municipality of

Cuenca not only to attract tourists and boost the economy but beyond everything else, it is for
the residents of Cuenca to gain sense of pride in what culture they have and also to be aware
about the Tinapay Festival which is only present in Cuenca.

Objectives of the Study

This study aimed to assess the Tinapay Festival in Cuenca, Batangas. More specifically, it
determined the development strategies of community-based tourism in terms of planning,
organizing, directing, and controlling; evaluated the effects of development of community-
based tourism Tinapay Festival in Cuenca; and proposed an action plan in promoting tourism
in Cuenca.

Method of Research Design

The researchers made use of descriptive method in the study to assess the Tinapay Festival in
Cuenca. Descriptive Research Design is a valid method for researching specific subject as
long as the limitations are understood by the researchers (Shuttleworth, 2008).
Conclusions and recommendation
The respondents agreed that the activities during Tinapay (Bread) Festival had reliable
planning, organizing, directing, and controlling. The effects of Tinapay Festival are the
tourism revenue generated by the event and this will also result to boosting tourism in
Cuenca. The proposed plan if implemented will surely make the Festival successful.

For the Municipal Planning and Development Department, they should motivate the people
to take part in celebrating this festive planning and safe flow of Tinapay Festival. The local
government of Cuenca may be open to possible investors for the place to be promoted widely
all over the Philippines or around the world in order to increase our local and foreign tourist.
The Municipal Planning and Development Department involved should formulate and
implement some promotions for the Tinapay Festival for there are still localities in Cuenca
who are not aware in their participation of Tinapay Festival in Cuenca, Batangas. The
Department of CITHM should spearhead and participate in the celebration of Tinapay
Festival. For the future researchers, a similar study may be conducted using another set of
variables.

Source:
http://www.academia.edu/7311088/Tinapay_Festival_Potential_Tourist_Attraction_in_Batan
gas_Philippines

D. Determination of Factors Affecting Shelf Space Layout and Allocation

of Bread & Bakery Products and its Effects in Consumer Buying Decision
in Selected Small Standalone Grocery Stores in Laguna, Philippines
Abstract
This study was conducted for the purpose of determining the factors to be considered that
would help small standalone modern trades in designing their bread and bakery products’
shelf space layout together with its efficient allocation or arrangement. The researchers’ aim
to verify if both grocers and consumers agree with the factors identified that apparently
contributes to the increase in sales and store profitability of the grocers.
Descriptive Statistics and series of Analysis of Variance (ANOVA) were applied in the
conduct of the study. Only four (4) were proven significant; Expiration/validity, price, brand
and product assortment.
This study will enable Grocers to design efficient shelf space layouts and generate satisficing
allocation plans for bread and bakery products that will enable them to maximize sales
opportunities and store profits. For the Consumers, this study will serve as guide in
understanding the principles behind the layout and arrangement of retail shelf spaces and
product.

Introduction
This study is conducted to its purpose of identifying the critical factors that affect shelf space
layout and allocation of bread and bakery product section and its direct contribution to the
consumer buying decision of small standalone modern trades, specifically grocery stores in
San Pedro, Laguna, Philippines.
This chapter discusses in detail the design and methodology that the researchers used in the
conduct of the study together with the results obtained in applying various tools. An
Operational or Methodical Framework has been used to illustrate visually the process of the
study while a 2–Phase Analysis Model has been employed as the Conceptual Framework of
the studies

CONCLUSION
This study has been conducted for the purpose of identifying the most important factors for
both grocers and consumers in designing a shelf space and making allocation and/or
arrangement for bread and bakery products in small standalone modern trades in the
Philippines, specifically in San Pedro, Laguna. More so, it is intended to determine the direct
contribution of the factors considered in designing the shelf space layout to the buying
decision of the consumers that eventually leads to store profitability.

True enough; the results of the study have answered the main objectives. The results
identified to be the most important factors are as follows: (1) Validity, (2) Price, (3) Product
Assortment, and

(4) Brand.

More so, it has been proven that as much as the grocers would perceive the reaction of buyers
with the shelf space layout that they designed, the consumers, on the other hand would still
have varying preferences. The proof is the results of the series of Analysis of Variance that
were done in this study.

However, the researchers, on the other hand are glad that even if not all the perceived factors
considered by the grocers were store profit optimizing, most of the factors are found to be
influential to the buying decision of the customers. This eventually leads to the increase in
sales and optimization of store profit on behalf of the grocers.

Source: http://fs.mapua.edu.ph/MapuaLibrary/Thesis/Soriano%20&%20Fernandez.pdf

E. Bioprocessing to improve oat bread quality

ABSTRACT

The health-promoting properties of whole grain oat have made it a desirable

ingredient for use in breads. However, the absence of gluten-forming proteins and
high fibre content pose technological challenges with respect to product texture.
Fundamental understanding about the role of oat components on the structure
formation of dough and bread is needed to facilitate the development of new
healthy variants of oat breads with consumer appealing properties.
A concept was created for using whole grain oat flour as a base in an oat-wheat
bread with high 􀁅-glucan content and good textural and sensory quality. Ingredient
and process parameters for optimised texture and taste of the oat-wheat bread
were established without extensive degradation of 􀁅-glucan. The potential of
bioprocessing methods, such as the use of sourdough and enzymes, to modify the
chemical and rheological properties of oat doughs, and to improve the texture and
flavour of oat breads were also investigated.

INTRODUCTION
The research strategies to improve the healthiness of food both in Finland and
other EU countries aim to promote the health of European citizens as well as to
increase the competitiveness of the Finnish and European food industry sector in
the global market. Oat (Avena sativa) is an important crop in Northern climates.
Finland was the third largest producer of oats in the world in the year 2008 (FAO,
2010), and oats have been Finland’s second largest cereal crop, after barley, for
decades (􀁅1.2 billion kg/year) (TIKE, 2010). The beneficial health effects of whole
grains and oats have increased demand for tasty and healthy breads made from
them. Whole grains used in baking applications have mainly been wheat or rye.
However, whole grain oat flour could offer potential for a new variety of bread with
high soluble fibre content. Better understanding of the role played by oat
macropolymers in dough and bread structure and the possibilities of different
bioprocessing methods, such as use of sourdough and enzymes, to modify oat
macropolymers would create new knowledge that could be exploited in developing
healthy oat breads with pleasant sensory properties.

RESULTS AND DISCUSSION

Oat-wheat breads containing more than 20% oats tend to lose consumer
appealing properties, such as good flavour, high volume and crumb softness.
However, in the case of whole grain oat flour, at least 50% of the flour must be oat
in order to obtain the required amount of 􀁅-glucan in the bread for a health claim.
In light of these challenges, the effects and interactions of ingredients and
processing parameters on the specific volume, instrumental crumb hardness, and
sensory properties of oat-wheat bread were studied using experimental design
and mathematical modelling. Linear or quadratic models were obtained after
estimation of RSM by PLS (Tables 5 & 6 of Publication I). A multiple response
method called desirability was used for the reliable models to predict the levels of
ingredients and processing parameters for optimized specific volume, softness
and sensory quality of oat-wheat breads. There are no reported studies in which
the quality attributes of oat-wheat bread in response to ingredients and baking
process have been simultaneously studied.
3.1.1 Optimization of ingredients
The results of ingredient optimization showed that a water content of 91.5 g and a
gluten content of 15.2 g per 100 g flour were required for maximal specific volume
and minimal instrumental hardness (measured after 2 and 72 hours) (Table 5).
The optimized sensory attributes of crust evenness and crumb moistness were
also achieved with these gluten and water contents. Lower gluten content was
needed for the softest bread crumb as well as lower water content for most elastic
bread crumb.

CONCLUSIONS
This thesis studied the effects of baking and bioprocessing methods, such as the
use of sourdough and enzymes, on the chemical and rheological properties of oat
doughs, the stability of 􀁅-glucan, and the quality attributes of oat breads.
The concentration of gluten and water in oat breads were first optimized, and
these concentrations were then used in the optimization of process conditions.
Maximal specific volume and instrumental softness with even crust and without
excessive crumb moistness were attained by adding gluten (15.2 g/100 g flour)
and water (91.5 g/100 g flour) to the dough. Of the five processing conditions,
baking temperature, proofing time and temperature exhibited the greatest effects
on bread quality. The maximal specific volume 3.6 (cm3/g) and minimal hardness
(0.1 kg after 2 h, and 0.3 kg after 72 h) were attained by proofing the bread at
40 °C for 75 min and baking at 210 °C. Of the sensory attributes evaluated, the
processing conditions significantly affected the crust properties and richness of the
crumb flavour. Optimal thickness, flavour and crispness of the crust were attained
with the same conditions for maximal volume and minimal hardness of the bread.
From the data presented, it is evident that bread with 51 g whole grain oat flour
per 100 g flour can be baked and that good taste and structure as well as long
shelf life can be obtained by optimizing the recipe and processing parameters. The
results of this work have been applied for commercial production of oat breads
with high 􀁅-glucan content.
The use of an optimized sourdough process in the production of oat bread
provided a feasible technique for producing new tasty variants of oat bread with
high 􀁅-glucan content. The amount and fermentation temperature of the
sourdough added had significant effects on the texture and crumb characteristics
of the oat-wheat bread. The most favourable sourdough condition for enhanced
crumb texture and flavour of the bread was a small addition of wheat sourdough
(10 g/100 g dough) that was fermented at 40 °C for 20 hours. The use of optimized
sourdough resulted in bread with similar specific volume and staling rate as the
corresponding straight dough bread.

Source: http://www.vtt.fi/inf/pdf/science/2012/S8.pdf
 CHAPTER III
RESEARCH METHODOLOGY
This chapter briefly discusses the research design to be utilized in the study, the sources of
instruments to be used in data gathering as well as statistical treatment that will be used in the
analysis of data.

The descriptive research method that the researchers will be using, will reveal the "Success
Factors of Bakeries in Bayan, Antipolo ".

First, the researcher will conceptualize a subject for the research. Second, identify the target
customer suited for the subject matter. Third, is identify the location where to conduct the
research and followed by the preparation of materials that will be used for the research. Then
after that is the execution of the research, and last would be the evaluation based on the result
from the research conducted.

Research Design

This will make use of descriptive normative type of research design. Descriptive research
aim to gather data without any manipulation of the research context and also low "control or
manipulation of the research context" scale. It is non-intrusive and deals with naturally occurring
phenomena and operates on the basis of hypothesis. Our marketing research will be come up
with the following steps such as gathering data analysis, classification, enumeration, statistical
computation of assessment and our survey will be conducted to customers who buy in the bakery
located in Bayan, Antipolo.

Location of the Study

The study will be conducted at Bayan, Antipolo.

Respondents of the Study

The respondents of the study will be on the five bakery located in Bayan, Antipolo
namely: Happy Smile Bakery, Twin Bakery, Antipolo’s Best Bakery, Bread of Antipolo and
Inocencio’s Bakery. The respondents of the study are the 5 managers/owner, 14 employee/staff,
and 75 customers.

Name of Bakery Number of Number of Average

Owner/Manger Employee/Staff Customer
1. Happy Smile Bakery 1 3 50
2. Twin Bakery 1 4 65
3. Antipolo’s Best Bakery 1 2 75
4. Bread of Antipolo 1 2 50
5. Inocencio’s Bakery 1 3 85
Total 5 14 325

Population and Sample Size

The population is the size of customers in the Bakery at Bayan, Antipolo. The estimated
average of transaction purchased in this bakery is 325 customers a day and the marginal error of
10%; therefore we will be having sample size of 76 customers. The total number of employee is
14 and the marginal error of 10%; therefore we will have sample size of 12 employees.

Sample Size Formula

n = N / (1+Ne^2)

where:

n = number of samples

N = Total population

e = Margin of error

For Employee

n = 14/ (1+ (14*.10^2)

n = 14/1.14

n = 12.28 or 12

For Customer

n = 325 / (1+ (325*.10^2))

n = 325 / 4.25

n = 76.47 or 76

Sampling Technique

The researcher will be using Random Sampling so that each member of the population has
an equal and known chance of being selected. They will interview the sample size needed and
then select from the list randomly.
Research Instrument

This study will be using survey questionnaires as the data gathering instrument. The
researcher will see to it that there were enough items to collect data, to cover all aspects of the
problem and to answer the entire specific questions under the statements of the problem.

The questionnaires are divided into two parts. The first part concentrated on the
demographic profile of the respondents. The second part is the set of questions to elicit
information regarding the customer preferences when it comes to bakery.

Data Gathering Procedure

In this study we will undergo a survey that consist of questionnaire and check list type that
can be showed in the "research instrument". We will approach our subjects in face to face
interviewing.

The researchers will be starting the survey on February ____, 2016 near the bakery at
Bayan, Antipolo. Since there is an estimated population of 325 customers and with a 10%
estimated marginal error, they have a total of 76 sample size for customers. They are composed
of five members in the group, so the researchers will divide among themselves the distribution of
76 questionnaires to the respondents in the bakery to make the process efficient.

Statistical Treatment of Data

The data collected in this study will be organized and classified based from the research
design and the problem formulated. The data will be coded, tallied, and tabulated to facilitate the
presentation and interpretation of results using the following:

Percentage:

%= n x 100

Where:

n = numbers of respondents

N = total population
Weighted Mean:

where:

x is the repeating value

w is the number of occurrences of x (weight)

x̄ is the weighted mean

Chi Square:

Where:

O = Observed frequency

E = Expected frequency

∑ = Summation

x2 = Chi Square value

Spearman:

Where:

is the difference squared

di = difference in paired ranks

n = number of pairs
 BIBILIOGRAPHY

A. BOOKS

Fundamentals of Research - Dr. Ditan, Carolina, Dr. Mendoza, Celso, and

Alminar-Mutya, Ruby F.

B. ELOCTRONIC SOURCES
http://www.hcareers.com/us/resourcecenter/tabid/306/articleid/650/default.aspx

http://yourbusiness.azcentral.com/business-objectives-bakery-14092.html
http://smallbusiness.chron.com/bakery-business-4683.html

http://www.ourjacksonhome.com/blog/2015/10/2/o1xt86w6n35b7p45bj5jpjhbsqpyl1

http://smallbusiness.chron.com/business-objectives-bakery-21392.html

http://www.entrepreneur.com.ph/startup-tips/how-to-start-a-bakery-business

http://www.philstar.com:8080/agriculture/633662/why-not-bakery-business

http://www.gmanetwork.com/news/story/440170/lifestyle/food/a-good-rise-what-the-future-
holds-for-the-philippine-baking-industry

http://www.entrepreneur.com.ph/startup-tips/how-to-start-a-bakery-business/page/1

https://gupea.ub.gu.se/bitstream/2077/26518/1/gupea_2077_26518_1.pdf

http://trap.ncirl.ie/2034/1/davidcoghlan.pdf

http://www.smeda.org/index.php?option=com_phocadownload&view=category&download=923
:bakery-confectionery&id=99:food.

https://oda.hio.no/jspui/bitstream/10642/1199/2/maeh_lilleberg_2012.pdf

https://atrium.lib.uoguelph.ca/xmlui/handle/10214/3288?show=full

http://www.slideshare.net/nakulagrawal11/feasibility-report-on-bakery-confectionery

http://www.slideshare.net/bryanoculam/feasibility-study-veggie-bread

http://www.academia.edu/7311088/Tinapay_Festival_Potential_Tourist_Attraction_in_Batangas
_Philippines

http://fs.mapua.edu.ph/MapuaLibrary/Thesis/Soriano%20&%20Fernandez.pdf
http://www.vtt.fi/inf/pdf/science/2012/S8.pdf
Appendix 1A – Owner/manager/Supervisor

I. PERSONAL PROFILE
Direction: Check the blanks for your answers

A. Gender
__ Male
__ Female

B. Age
__ Below 30 years old
__ 31-40 years old
__ 41-50 years old
__ 51-60 years old
__ 61 years old and above

II. Survey Questions

Direction: Check the corresponding box.

1. What are the strengths of your bakery?

STRENGTH 5 4 3 2 1

Quality of the Service

Accesible Location

Affordable price

Variety of Breads

Quality Breads
2. What are the weaknesses of your bakery?

WEAKNESSES 5 4 3 2 1

Poor quality of service

Inaccessible location

Unaffordable price

Limited bread

Poor quality

3. What are the opportunities of your bakery?

OPPORTUNITIES 5 4 3 2 1

Putting up another branch

Offer the breads in supermarkets

Distribute in other grocery store

Expansion of the bakery

Advance use of technology

 4. What are the threats of your bakery?

THREATS 5 4 3 2 1

Economic crisis

Many competitors

Calamities

Unreliable supplies
Increase in rental feesand other
expanses

5. What are the marketing strategies used by the business to increase the volume of sales?

MARKETING
STRATEGIES 5 4 3 2 1

Advertisement

Bundle promos

Discounts

Food sampling

Events
Appendix 1B – Staff/Employees
I. PERSONAL PROFILE
Direction: Check the blanks for your answers. (Lagyan ng tsek ang patlang para sa sagot.)

A. Gender (Kasarian)
__ Male (Lalaki)
__ Female (Babae)

B. Age (Edad)
__ below 20 years old (20 taong gulang pababa)
__ 21-30 years old (21-30 taong gulang)
__ 31-40 years old (31-40 taong gulang)
__ 41-50 years old(41-50 taong gulang)
__ 51 years old and above (51 taong gulang pataas)

II. Survey Questions

Direction: Check the corresponding box. (Lagyan ng tsek ang kahon ng iyong kasagutan.)

1. What are the strengths of your bakery? (Ano ang kalakasan ng inyong bakery?)

STRENGTH (KALAKASAN) 5 4 3 2 1

Quality of the service (Magandang serbisyo)

Accessible location (Madaling puntahan)

Affordable price (Murang presyo)

Variety of breads (Dami ng tinapay)

Quality breads (Kalidad ng tinapay)

2. What are the weaknesses of your bakery? (Ano ang kahinaan ng inyong bakery?)

WEAKNESSES (KAHINAAN) 5 4 3 2 1
Poor quality of service (Hindi magandang
serbisyo)

Inaccessible location (Hindi madaling

mapuntahan)

Unaffordable price (Mahal na presyo)

Limited bread (Kakaunting tinapay)

Poor quality (Hindi maganda ang kalidad ng
tinapay)
Appendix 1C - Customer

I. Personal Information
Direction: Check the blanks for your answers. (Lagyan ng tsek ang patlang para sa sagot.)
A. Gender (Kasarian)
__ Male (Lalaki)
__ Female (Babae)

B. Age (Edad)
__ Below 10 years old (10 taong gulang pababa)
__ 11-20 years old (11-20 taong gulang)
__ 21-30 years old (21-30 taong gulang)
__ 31-40 yaers old (31-40 taong gulang)
__ 41 years old and above (41 taong gulang pataas)

II. Survey Questions

Direction: Check the box for the corresponding answer.. (Lagyan ng tsek ang kahon para sa
sagot.)

1. How often do you buy in this bakery? (Gaano ka kadalas bumili dito?

5 4 3 2 1

Everyday/Daily (Araw-araw)
Twice a day (Dalawang beses sa isang araw)

Thrice a week (Tatlong beses sa isang linggo)

Weekly (Linggo-linggo)
Occasioally (Pag may okasyon)
2. What products do you usually buy? (Ano ano ang mga produktong madalas mong binibili
dito?)

5 4 3 2 1

Pandesal

Tasty

Monay

Spanish bread

Mamon

__ Others (Please specify) ______________________

3. What are the reasons why do you buy in their bakery? (Ano ano ang mga dahilan kung bakit
ka dito bumibili?)

5 4 3 2 1

Quality of the service (Magandang serbisyo)

Accessible location (Madaling puntahan)

Affordable price (Murang presyo)

Variety of breads (Dami ng tinapay)

Quality breads (Kalidad ng tinapay)

4. What are the reasons why you don’t buy their products? (Ano ano ang mga rason kung bakit
hindi ka bumibili dito?)

5 4 3 2 1
Poor quality of service (Hindi magandang
serbisyo)
Inaccessible location (Hindi madaling
mapuntahan)

Unaffordable price (Mahal na presyo)

Limited bread (Kakaunting tinapay)

Poor quality (Hindi maganda ang kalidad ng
tinapay)
VICINITY MAP