Members

Almada, Ma. Yumilka V.

Bangsal, Jewett Charles S.
Bernal, Eunice
Carias, Julchen
Carillo, James Anton D.
Relimbo, Rose Angelique

1 BSA-1
INDUSTRY ANALYSIS
Introduction
Filipino’s love bread and pastry as much as they love rice and various kakanin. Baking in
the Philippines originated from the Spanish missionaries who used wheat often in their food.
They introduced it as a diet, and also the preparation and process of making food with it to the
locals. Filipino’s grew accustomed to it, they eat it in breakfast, merienda, and sometimes either
as an appetizer or a dessert. From making pan de pita or pita bread to mooncakes that they
learned from Chinese settlers and traders. They certainly enjoy eating bread, and so various twist
has been made to satisfy their cravings, and those twists will be the focus of this analysis.
Background
Baking goes far back as at least 2500 B.C, in itself. Records shows that Egyptian’s
already had bread around that time, and they may have learned the process of making it from the
Babylonians. They were the first ones who were credited for using different techniques in
baking. One special example is leavening, or using a substance (such as yeast) to make the dough
rise and become lighter before it is baked. It was the Egyptians that also came up with the first
ovens to bake these breads in. From Egypt, baking spread around 400 B.C. to ancient Greece.
There are also evidences that prove that tortes with patterns and honey flans existed in Greek
cuisine. After that, from Greece it was then spread into the Roman Empire where it flourished
around the 3rd century B.C. and pastries became all the rage, it became an occupation for
Romans (known as pastillarium). This became a highly respected profession because pasties
were considered decadent and Romans love festivity and celebrations. Anyone that could
produce a good pastry was highly sought after and by 1 A.D., there were over three hundred
pastry chefs in Rome alone. With the widespread reach of the Roman Empire the technique of
baking did not take too long to spread to other parts of the world. From Europe to Asia people
started baking and it started to become a more common element of a person’s daily life. Through
most of Europe, street merchants popped up selling their freshly baked goods to street-children
who loves their goods. Some of the goods sold were cakes, gingerbread, and pancakes. The same
as other Asian countries, since baking was dominant in Europe, they spread across the seas
bringing their art of baking along with them. The Philippines was ones colonized by the
Spaniards, thus learning the arts of baking and some of their techniques. In addition to that,
Filipino’s also learned how the process of using dry heat to make bread and other desserts from
Chinese peddlers and settlers making us to became fond of these treats. This fondness for baked
treats opened an opportunity for the Filipino entrepreneurs to build business, innovate baked
products and similar ones, and explore more of baking.
Barriers to Entry
The ease of entry into the baking industry is high with low barriers to entry if the scale is
not high including initial capital investment, advertising, and branding. The ingredients use for
baking can be bought in wholesale and the location for the business can also be in a small area
enough to display the baked goods. Advertising the business given its location is fluent since the
consumers around the area were already familiar with the existing businesses, and so a stall
popping out-of-nowhere with a unique and affordable product will make them intrigued enough
to try the goods that is being sold there. Branding, on the other hand, can be naturally made
overtime by maintaining the quality of a product.

Industry Rivalry
Having a deep understanding on the competitive edge of a business may lead to better
marketing strategies. To determine the competitive edge of a business or its advantage to other in
the same industry, one must know its competitors. Positioning a product to the target market will
also become easier by doing this.
Rivalry with existing competitors of K-Bakery is present but is relatively low,
surprisingly having no bakery shops in the area given that the location is good and bread
production is wide-ranging in the country. In contrast, competitors that can offer substitutes that
can affect the market of the business is alarmingly high. An example of this is the potato ball
stand that is being located near the school parameters, even though the price and quantity is
different, the consumers will still compare the two products. Although the differences in quality,
price, and fulfillment or the wholeness of the product is evident, a threat is still a threat in
business.
Threats of Substitute
A substitute product is a product that appears to be different but can replace another
product and still satisfy its needs. According to Porter, “Substitutes limit the potential returns of
and industry by placing a ceiling on the prices firms in the industry can profitably charge.”
A bread is a staple product, it is eaten and enjoyed usually by many. Since its main
ingredients, flour and sugar, are staple crops then other products with these same ingredients can
be a potential substitute for it. Other products that has staple crops such as wheat as an ingredient
can also be possible replacement of bread. Bread and other baked goods can also be made at
home by individuals. In reflection for this, bakers and businesses rely mainly on freshness and
wholesomeness, affordability, and convenience that keeps individuals from switching into
substitutes and baking what they need at their homes. Product such as oatmeal, breakfast cereals,
rice, crackers, pasta, potatoes, and similar products that can be made at home are examples of
potential alternative products. Substitutes that can possibly be a threat for K-bread are rather
abundant.
Bargaining Power of Buyers
Consumers nowadays are more knowledgeable in buying goods, especially in terms of
food including baked goods. They are more educated, and know what is better than all others.
This gives the consumer the power to buy what they want and what they need according to their
preferences.
 Existing large amounts of options from other industry competitors are extremely high.
Substitute products from these rivals are also abundant. Knowing these factors, some consumers
try to shop around and find the best one that suits their taste, while others have their “trusted
brand” or “trusted stall”, resulting of their reluctance to try new products. As a result, the market
became a battle of quality than quantity.
Bargaining Power of Suppliers
Suppliers can affect an industry through their ability to raise prices or reduce the quality
of purchased goods and services. A small change in a business’ supplier can cost a business a lot.
A change in supplier, can mean a change in quality. A change in price of an ingredient from a
certain supplier can cost the business to adjust their price. Shortage in supplies can hinder the
business’ operation. This means that the more supplies that a business need to a supplier, the
more power they give to them.

COMPANY DESCRIPTION
The K-Bakery’s Organizational Structure

Ma. Yumilka V. Almada

Chief Executive Officer

Julchen Carias
Vice President

Production Finance Quality Assurance Marketing

Department Department Department Department

Rose Angelique Jewett Charles S. James Anton D.

Eunice Bernal
Relimbo Bangsal Carillo
Department Head
Department Head Department Head Department Head
 The K-Bakery is headed by the Chief Executive Officer Ms. Ma. Yumilka V. Almada who
has the responsibility for the overall major decision making within the business. In line with this,
she also has the role of directing and organizing the whole business to achieve growth. The Vice
President, Ms. Julchen Carias is responsible for assisting the Chief Executive Officer in managing
the business. She also acts as a representative whenever the CEO is not around. As the Vice
President, she also has the right to appoint the spear heads of the different departments of the
business namely Production Department, Finance Department, Quality Assurance Department,
and Marketing Department.
Headed by Ms. Rose Angelique Relimbo is the Production Department where the
production of the product is made. She is responsible for overseeing the whole process of turning
the raw materials into finished goods. Ms. Eunice Bernal as the head of the Finance Department
has the role of safekeeping the income of the business. She is responsible for keeping track of all
the cash flows of the business and making sure that everything is recorded and documented for
future purposes. Mr. Jewett Charles S. Bangsal is the Department head of the Quality Assurance
Department. He as the leader of the said department is accountable for making sure that the
finished products made under the Production Department will be delivered to the consumers with
the highest quality as possible. He has the role of checking all the products if it has passed the
standard quality needed and remove reject ones to avoid it from being consumed by the customers.
Lastly, we have the Marketing Department headed by Mr. James Anton D. Carillo. As the head of
the Department, he has the responsibility of advertising the product as well as the business to
potential customers. He should make people aware of the existence of the business by considering
different strategies to make his work easier.

Company Ownership
The K-Bakery is a privately owned business based in Balibago Complex, Sta. Rosa Laguna that
started from being a sole proprietorship type owned by Ms. Ma. Yumilka V. Almada and later on
took the risk and joined into partnership with Ms. Julchen Carias, Rose Angelique Relimbo, and
Eunice Bernal.

Core Values
B – racing
R – esponsible
E – nviroment Friendly
A – dvance
D – isciplined
 As a company, K-Bakery would like to incorporate values to their employees as well as
to everything that could be attached to business’ name that would build the image of it as a
whole in the industry. Bracing means fresh, healthy, and beneficial. Just like what the business
wants their costumers to experience the moment they have visited the store. The company does
not just focus on improving its products but it also centers on making its employees loaded with
positive attributes. One is for them to be responsible. As an employee of the K-Bakery, they are
to be trained of becoming persons who gets the job done efficiently and effectively. As
responsible parts of the company, employees are expected to be accountable for everything
assigned to them.
The company uses environment-friendly tools and facilities as it operates. Instead of
plastic-made materials, the company encourages its customers as well as its employees to use the
paper-made ones. Recycle bins are also found in every corners of the Bread Pitt store to promote
proper waste management. The next values is that the company is advanced in terms of its usage
of modern technology in the production and marketing of its products. The business is also
advanced in assuming possible opportunities and threats and that can be a key to its full success.
Lastly, the company wishes to find its employees and all the parts of the organization to be
disciplined because according to Mr. Jim Rohn, discipline is the bridge between goals and
accomplishments.

PRODUCT AND SERVICES DESCRIPTION

The K-bakery sells high-quality specialty bread known as K-Bread with the toppings of
mango. Despite of having many competitors, the business managed to stand and establish its own
name in the industry. Customers can dine-in in the store and watch the bakers create the orders.
For now, K-Bakery only offers a single product which costs P 7.00 each for small sized ones and
P 13.00 for the medium sized. The business can satisfy the customer’s cravings and is fully
prepared to insure the quality of the services and the products for its consumers.

Competitive Comparison
Although K-Bakery is opening up as a new niche in the industry, there is no doubt that we can
compete with those of similar business. Our competitive advantage against others is that K-Bakery
offers something that is original, new, and healthy to the buds of the customers. Aside from the
product being unique, the price may also be a big factor in influencing the mindset of the
consumers. For just P 7.00 (small) and P 13.00 (medium) people can enjoy the freshly made
cupcake shaped bread. We believe that people will be willing to spend a little extra for an
extraordinary bread.

MARKET DESCRIPTION
Market size
The K-Bakery focuses on local markets, with a special focus on bread lovers. Balibago, Complex
provides an excellent population for our product as students and adults spend more on inexpensive
bread and for those who wants to learn to eat healthy. Although the K - Bakery is opening up a
new niche in the food service industry, we do share similarities, and therefore compete with several
kinds of quick and fun-service bread businesses:
1. Restaurants: any reastaurants offering bread.
2. Café shop: any place coffee and pastries are available for carry –out or dine-in
consumption.
3. Bakeries: Free-standing traditional bakeries.

SWOT ANALYSIS
STRENGTH
 Personal relationship with customers
 Efficient and low-cost manufactured.
 Profitability of market share
 Excellent customer services.
WEAKNESS
 No product variation
 Have large number of competitors
OPPORTUNITIES
 Direct Selling
 Original recipes –a new taste buds
 Gain customers interest

THREATS
 Employees Injuries
 Liability losses
 Property losses(commercial property)

MARKETING STRATEGY
The Bread Pitt’s marketing strategy will use different methods to be able to let our customers be
aware of our existence. Getting the customer’s trust is a difficult task for us since we are new in
the industry and a single approach will not be enough to tap the shoulders of people. Because of
that, the store plans to campaign two approaches. First is through continuous word-of-mouth.
With this more people will be able to know about the product that we offer. We will become
known for having the healthiest bread in town.
The next thing is that we will reach the customers through social media since it is widely used
nowadays. People in different age, from kids to adults have knowledge in using the internet so it
is a great medium for advertising about the store since it could reach a broader range of
influence.
The Bread Pitt plans to reach local schools and nearby Malls and commercial buildings where
numbers of busy people are in. With this the store will be known for delivering convenient
snacks, satisfying their short-time breaks.sss

Sales Strategy
The Bread Pit’s sales strategy will be focusing on maintaining the quality of our product and
providing and outstanding customer service. We will be establishing customer loyalty by letting
our customers experience continuous consistent services from the moment they enter our store.
Servers will be educated about the product for them to be able to answer customer questions
easily. There would be suggestion boxes standing beside counters and doors for us to be able to
know the feedbacks of our customers and use them to make improvements in the future.
In addition, the store offers comfortable seats that is attractive and has a good ambiance for dine
in customers that will be great for those who are fond of taking photos and posting to their social
media accounts. Restrooms will also be maintained clean at all times to promote proper
sanitation.
OPERATIONS DESCRIPTION

Primary Activities
Inbound Logistics
Inbound logistics covers all the activities such as purchasing inputs for the product production.
This function also makes way for the business to be in contact with external companies such as
suppliers. The K-Bakery’s inbound logistics includes quality control for all the commodities to be
purchased. This phase will ensure that everything is of high quality before being bought inside the
production area. The next activity is material importation wherein the business makes deal with
certain company so they could act as our suppliers. After having contracts with suppliers, the
payment for all the purchased goods will be released and the orders will be transported to the
location of the business. Inventory control will be monitored to maximize the use of the business’
inventories. This activity is commonly exercised in raw material availability. All materials must
be present to make sure that the production process will be done on time.
Operations
After all the inputs are bought, operations will convert raw materials into finished products. After
the breads are manufactured, quality control will be executed to make sure that superb products
will be delivered to consumers. This is a very important step in the production process since the
image of the whole company is at risk when the products and services offered are in conflict with
the general operating standards of the business. Breads who passed the quality assurance phase
would be packaged and displayed to the store for customer consumption.

Outbound Logistics
Product creation does not stop after you finished manufacturing your goods. As an entrepreneur,
you need to find ways on how to effectively and efficiently deliver the products to the consumers
in a way that they would be satisfied. Order processing starts with receiving orders from the
customers. Ordered products from the counters of the store are further checked to promote
accuracy. After the confirmation has been done, receipts are printed and products are then
packaged ready for dispatch
Marketing and Sales
K-Bakery has the objective of making people aware that we are existing in the industry through
marketing and sales. Customer management is used by the marketing teams of the business to be
able to make forecasting simpler and more accurate. This process includes further understanding
of the wants of consumers to manage customer relationships properly with researching about the
customer’s preferences, their buying behaviors, and demographics. This will help the business
provide products and services to the consumers in line with their taste and later on earn customer
loyalty. In terms of the order taking service of the business, the management will make sure that
employees are well trained on how to properly cater the needs of the consumers. When employees
are good at speaking and projects positive personality in front of the customers, the tendency is
that they will remember the store for delivering good customer service. The marketing and sales
of K-Bakery also involves Low price for customers are attracted to goods with cheaper price
substitute. Promotion advertisements are also a great way to call for the attention of potential
customers.
Service
The business is fully aware that customers wants everything done fast. No matter what it is, they
appreciate things done quickly. In response to the demand of the people, K-bakery developed itself
to answer for the needs of the customers as quickly as possible. This act will bring customer service
advantage to the whole business as it would create more loyal customers and strengthen customer
relationship as time pass. K-Bakery is also a venture that has customer focused services. This
would be a key tool in achieving success because everything that is done inside the business
manifest priority in providing satisfaction to customers first than anything else.
Support Activities
Firm Infrastructure

Human Resource Management

This phase involves the staff planning of the business as well as the employee hiring and training.
K-Bakery provides needed qualifications and skills that must be seen in employees to reach the
business’ planned goals. Staffs are hired by department heads and trained infusing them with the
company values and guiding them as they enter the company and be a contributing factor to its
success. Human resource management is an approach where the organization of people is made to
maximize the employee performance in work and ensure the effectiveness of the company’s most
important asset – its work force.
Product and Technology Development
K-Bakery has practices Research and Development to know possible improvements for its existing
products and services. As time pass, people tend to change their preferences. They may love it
today but not that much in the future. To be able to surpass this crisis, innovation needs to take
place. Through researching to the latest trends, companies are able to create something new to
offer to the market at the same time make developments to the existing ones. The business also
conduct researches and implements customer service procedures to provide high level of customer
satisfaction.
Procurement
This stage includes communication with suppliers and purchasing of raw materials. K-Bakery,
before purchasing inputs looks on every supplier companies in the city to find cheaper materials
without undermining its quality. With low manufacturing costs, finished products will be delivered
to consumers at an affordable price. After making quotes of input prices, the business will contact
the selected suppliers and make negotiations and contracts. Payments then will be released after
all the processes are done.

STAFFING DESCRIPTION

Management Philosophy

Management's philosophy is to fully satisfy the needs and interests of customers. In the
business world, many companies have taken this stand, however, few have fully implemented it.
For example, some companies have portrayed that customers are "number one", while at the same
time, they do not provide any after sale service. We intend to meet the needs and interests of our
customers mainly through our employees. Customer satisfaction is important when offering any
product or service, however, it seems even more important with this product.

K-Bakery proposes a decentralized organizational structure in which a high degree of

employee autonomy exists. In other words, we are a team where each member is equal and are
united only to achieve a mutual goal - TO SATISFY THE CUSTOMER. This goal must be stressed
in the hiring process and carried out by each member throughout the duration of company. We
plan to have weekly team meetings to openly discuss the company's performance and provide
feedback to each employee. Nothing will be camouflaged or concealed from the team members -
NOTHING.

An employee profit sharing plan will play an active role within the organization in year
three. Such a program will strengthen the entire concept of cooperation and team spirit, thus, the
company as a whole, will prosper. This philosophy will, in fact, insure that all members feel like
a major part of the organization and thus increase performance and productivity. If problems arise
with any member of the team, "we" will expose it and ask for a solution. For this proposal to be
successful, each member must be supportive of one another and must encourage one another.

Labour Force and Training Requirement

K-Bakery will create its own strategy of hiring staffs through the implementation of human
resource planning. The business must come up with the necessary skills, list of responsibilities and
the salary that each position will have. Our personnel is to be CAREFULLY recruited, assigned,
trained and maintained. More specifically, customer service is of prime importance to the company
and by obtaining the "correct" people, this objective can be achieved.

Initially, the labour force will consist of six full time employees. Those are, manager, baker,
two assistant bakers, cashier and a waiter. Each employee will be trained thoroughly and given
extensive information of their job requirements. As demand increases over the normal capacity,
further members will be added to the team. Below are the qualifications and responsibilities that
each personnel need to comply and the salary that each could get.

POSITION QUALIFICATIONS JOB DESCRIPTION MONTHLY

SALARY
Manager  Capable in managing the  Ensure freshness ₱12,000
operations professionally of all bakery items
and handling all the and food in a
problems confidently bakery.
 Skilled in identifying  Ensure cleanliness
scope for expansion by and hygiene in the
analyzing the market bakery premises.
trends and implementing  Greet customers
growth strategies and provide
effectively quality
 Skilled in motivating the personalized
staff to achieve the service.
desired results through
 cooperation and  Maintain and
teamwork control inventory
 Able to prepare and/or of baked items.
review sales reports to  Replenish food
track the profit or loss and items according to
suggest measures to cut customer’s
down costs and enhance demand and
profits needs.
 Knowledgeable with  Ensure that bakery
various applications used items are baked or
for billing and data cooked according
processing related to the to the customers’
bakery operations tastes and needs.
 Able to work for long  Ensure that
hours and on weekends nutritional values
are not lost in
baking,
processing or
cooking items.
 Ensure
deliciousness in
baked items to
attract customers.
Baker  Experience as a Baker,  Check products ₱12,000
Pastry Chef or similar role for quality and
 Familiarity with all identify damaged
professional kitchen or expired goods.
equipment, including  Mixing, preparing
mixers, blenders and and baking bread
dough sheeters and pastries.
 Understanding of food  Checking
safety practices supplies.
 Experience with bread  Crafting and
and pastry decoration creating new and
techniques exciting baked
 Excellent time- goods.
management skills  Ensuring all baked
 Ability to remain calm goods are
and focused in a fast- completed on time
paced environment for opening.
  Team spirit, with a  Check equipment
customer-focused attitude to ensure that it
 Flexibility to work in meets health and
early morning shifts safety regulations
 Good in developing new and perform
recipe maintenance or
 Certification from a cleaning, as
culinary school is a plus necessary.

Baker  Have a food handler’s  Provide baker’s ₱8,000

Assistant permit to work in a assistant services
commercial setting. to bakers and
 Having previous work chefs
experience in a bakery  Assist baker in
 Have the ability to work cooking and
under pressure preparations of
 Need to be able to lift bread and pastries
heavier items and have  Maintain the
the physical stamina to premises of
stand for the majority of baking area in a
your shift. neat and hygienic
manner.
 Assist baker in
lifting heavy sacks
of flour and other
baking items.
 Assist bakers in
operating baking
machineries and
implements.
 Maintain and
sanitize baking
utensils, tools,
implements and
machinery.
Cashier  High school diploma  Handle all ₱10,000
 Prior knowledge of the customer payment
foods/products being sold and credit
at the specified counter is transactions.
desirable.
  Must have at least one  Responsible for
year of cashier and cash the daily
handling experience, and balancing and
be comfortable handling reconciling of
and counting his or her cash office
own cash drawer. account/s.
 Previous customer and  Handle daily bank
food service experience deposits.
preferred. Must be able to  Assist the
perform simple manager with
mathematical various clerical
calculations. duties as needed.
 Position requires  Maintain the
standing, bending and appearance of the
mobility the entire work showroom &
day. work area.
 Must be able to lift full
pans, not to exceed 25
pounds.
 Light cleaning duties such
as wiping counters and
small equipment,
sweeping and refilling
stock.
 Must be able to
communicate politely and
effectively with guests
and other employees.
Waiter  Hands-on experience  Providing ₱8,000
with cash register and excellent
ordering information customer service
system (e.g. Revel POS or  Presenting menu
Toast POS) to customers
 Basic math skills  Answering
 Attentiveness and questions from
patience for customers patrons about food
 Excellent presentation and beverages
skills  Taking food and
 Strong organizational and drink orders
multitasking skills, with
 the ability to perform well  Delivering checks
in a fast-paced to customers
environment  Accepting
 Active listening and payment
effective communication  Communicating
skills customer orders to
 Flexibility to work in kitchen staff
shifts  Cleaning the table
 High school diploma;
food safety training is a
plus
Each employee will be trained thoroughly and given extensive information of their job
requirements.