Senior High School Department

ABM Strand

_______________________________

Interseed Packaging: The Business Plan

________________________________

In Partial Fulfilment of the Requirements for the Course

Principles of Entrepreneurship (ENTREP 01)

_______________________________

Submitted by

Beltran, Areyl Jade B.

Leonado, Ivana Simone M.
Marago, Luzyl Marie T.
Orozco, Christine Domnique D.
Quitos, Marianne Mae M.
Rodriguez, Frankho C.

Submitted to

MR. DONALD E. LABIAL

Instructor

October 8, 2019
 APPROVAL SHEET
This thesis, entitled “A Study of Millennial Consumer Preference in Utilizing
Seed-Embedded Packaging in Purchasing Products”
Submitted by: Group 6 12 ABM – A2
Members:
Beltran, Areyl Jade B.
Leonado, Ivana Simone M.
Marago, Luzyl Marie T.
Orozco, Christine Domnique D.
Quitos, Marianne Mae M.
Rodriguez, Frankho C.

in partial fulfilment for

Senior High School - Accounting, Business and Management Strand

has been examined and accepted for ORAL DEFENSE.

Yvette M. Villarta
Research Adviser

THESIS COMMITTEE

Jenica Alexis I. Baylon Liezel P. Elcamel

Member Member

Rey Ferdinand A. Gagani

Member

Chair

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 ACKNOWLEDGEMENT

First and foremost, the researchers would want to express deep gratitude to Ms.
Yvette M. Villarta, the team’s research adviser whose door was always open
whenever the group ran into a trouble spot in the course of writing the research
paper. She consistently allowed this paper to be the researcher’s own work, but
steered us in the right the direction whenever she thought we needed it. The
researchers also acknowledge the presence of Mr. Ferdinand Ray Gagani, who
was also involved in the refinement of the group’s output.

The researchers would also like to recognize the experts who assisted the group
all throughout this journey: Mr. Donald E. Labial, the team’s entrepreneurial
adviser and Mr. Joemel D. Dakay, the team’s accounting adviser. Without their
intellect and support, the group would not have come this far.

The team would want to acknowledge the participation of their respondents who
made this research possible.

Furthermore, the researchers concede profound appreciation to their respective

parents for providing them with unfailing and continuous encouragement
throughout the process of conducting the research.

Finally, the group would want to acknowledge their efforts and sacrifices which
has turned this research paper into a success. Despite the hindrance of different
personalities, the researchers did not fail on building a strong foundation bearing
cooperation.

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 TABLE OF CONTENTS
TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENTS iii

TABLE OF CONTENTS iv

I. EXECUTIVE SUMMARY 1

II. INTRODUCTION 4

III. MARKETING RESEARCH 5

A. Nature of Research 5

B. Environmental Analysis 5

C. Overview of Marketing Research 16

D. Competitive Analysis 17

E. Quantitative Method 21

Objective of the Study 21

Research Methodology 21

Analysis of Data 27

Summary of Findings, Conclusions and Recommendations 31

IV. TECHNICAL ASPECT 33

A. Product 33

B. Production Plan 38

C. Operation Plan 51

V. ORGANIZATION & HUMAN RESEARCH ASPECTS 58

VI. FINANCIAL ASPECT 75

VII. MARKETING PLAN 82

A.Segmentation Strategy 82

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 B.Targeting Strategy 84

C.Positioning Strategy 89

D.Marketing Strategy 90

Product Decisions 90

Pricing Decisions 93

Distribution Decisions 94

Promotional Decisions 95

VIII. PROJECT IMPLEMENTATION 98

IX. SOCIO-ECONOMIC COST BENEFIT ASPECT 99

A. Corporate Social Responsibility Plan 99

B. Contribution to Society and Economy 105

APPENDICES 109

A. Brochure 109

B. Poster 110

C. Transmittal Letter 111

D. Consent Form 112

C. Survey Questions 113

D. Curriculum Vitae 114

TIMELINE OF ACTIVITES 121

REFERENCES 122

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 I. EXECUTIVE SUMMARY

In the recent years, the rise of plastic pollution is prevalent. As the world’s
population continues to grow, so does the amount of garbage that people
generate. A point often overlooked, the present manner of living – most
significantly, the urban way of life requires easily disposable products such as
plastic bottles and plastic shopping bags due to these individuals’ on-the-go
lifestyles. Henceforth, this led to the accumulation of this material bringing threats
to humankind and environment as plastic is composed of major toxic pollutants
such as potassium persulfate, and benzoyl peroxide. With the ideas presented,
the business world has proposed possible alternatives to aid this escalating
problem such as biodegradable and eco-friendly packaging. Despite these
innovations, plastic pollution continues to intensify.

Thus, Enroot Packaging Co., a limited partnership established last August

2019, seeks to further enhance the environmental solutions proposed by other
entrepreneurs. In essence, the company envisions being the leading company
who pioneers a zero-waste community empowering consumers to be a part of
this change. In Enroot Packaging Co., everything boils down to P.A.S.S.I.O.N
(Prowess, Accountability, Social Responsibility, Sustainability, Integrity, Obliging,
and Novelty) as it raises awareness on the need for sustainability which is not
only applied to the product offered but is also practiced within the firm.

In the same light, the partners propose the Interseed Packaging, a paper
packaging material composed of embedded vegetable seeds for the consumer to
plant the packaging after usage instead of resorting to its disposal. This can be
availed by the public in the cost of PHP 25 only. Further, this will be made
available for the market through intermediaries such as retailers. Moreover, this
entrepreneurial activity is coupled with a quantitative study to supplement the
proposed business venture.

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 Enroot Packaging Co. will pursue two main target markets which are food
companies, and manufacturing companies. It is rest assured that these potential
markets are substantial enough to make the business ventures feasible. This
assumption can be authenticated by the fact that business enterprises are
becoming more ‘green’, making use of biodegradable packaging instead of the
traditional plastic packaging (Subido, 2019). Hence, these markets would want to
find an alternative for their plastic packaging, making Enroot Packaging Co. a
preferable option.

Accordingly, the firm has provided different product, pricing, and

promotional approaches to build its reputation in the business world.
Consequently, the types of packaging offered by Enroot Packaging Co. are tea
boxes, oil boxes, toothpaste boxes, and pizza boxes. By the same token,
vegetable seeds will be utilized – mainly cauliflower seeds, chinese cabbage
seeds, tomato seeds, squash seeds, carrot seeds, and eggplant seeds. Equally
important, okra juice is made use of as an adhesive to place the seeds and
recycled paper together. In terms of pricing decisions, value-based pricing is
employed, coupled with bulk and logo discounts. Multiple promotional strategies
such as posters, social media platforms, public signages, sponsorships, and the
like will also be present in the course of business.

Enroot Packaging Co.’s plant will be located at Naga City, Cebu

constructed along FDR Integrated Resource Recovery Management Inc. (FDR-
IRRMI), its supplier for recycled papers. This is managed and owned by six (6)
partners, where Mr. Frankho Rodriguez is the general partner. Each individual is
guaranteed to be competent given the fact that they have the set of skills befitting
for their respective positions and have underwent entrepreneurial activities that
further refined their expertise. Each will have a share of approximately 16.67%
resulting to total equity of PHP 3 000 000. For the production of Interseed
Packaging, the firm is to hire five (5) workers which will be using machinery (e.g.
shredder, molder, drying equipment, etc.) purchased by Enroot Packaging Co. to
increase productivity within the firm. With the ideas presented, the entrepreneurs

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expect to produce five hundered (500) Interseed Packaging in a day provided
that the company will have five (5) working days and eight (8) working hours.

By the year 2020, Enroot Packaging Co. expects to have the total assets,
liability, and equity of PHP 4 210 882. On the same year, entrepreneurs foresee
the net income of PHP 145, 186 with taxes and interests deducted. By all means,
the firm is guaranteed of high profitability considering the fact that it is still a start-
up business. All things considered, Enroot Packaging Co. will strive to embark on
environmental change, unifying humankind to make sustainable actions that our
plant desperately needs.

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 I. INTRODUCTION

According to Subido (2019), Filipinos use more than 48M plastic shopping
bags and 45M thin-film bags daily. This shows the rapid growth of the plastic
industry in the world today. Filipinos' abundant use of plastic leads to
environmental problems like clogged canals and drainages that cause floods in
different areas of the country. Aside from that, the people's negligence on the
proper disposal of plastic may lead to harming nature. With the increasing need
of environmental-friendly companies to address these issues, Enroot Packaging
Company grabbed the opportunity to minimize plastic waste in the Philippines by
manufacturing packaging materials made out of biodegradable components to
ensure that the zero-waste objective of the company is achieved.

Vision

To be the leading company who provides high-quality sustainable packaging

pioneering a zero-waste community.

Mission

Empowering consumers by being the bridge for a future that advances zero-
waste systems.

Objectives

Enroot Packaging Co. is a sustainable packaging production company that

visualizes to:

a) Recruit high-performing key professionals which will include an innovative

team of engineers, who will be responsible for the production of eco-
friendly packaging. Employees will be trained thoroughly to ensure a
smooth flow of the manufacturing process.
b) Reduce operating costs by ten percent (10%) in 18 months through the
usage of local resources. Following this, the business will utilize
sustainable methods in the creation of its products.

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By all means, Enroot Packaging Co. promotes a healthier environment as it
develops environmental conscious individuals. Rest assured that the firm will be
a part of this journey towards sustainability. In Enroot Packaging Co., we are
rooting for you.

II. MARKETING RESEARCH

A. Nature of Research

The type of method used for this study is quantitative research, particularly
the descriptive technique. This is best for the reason that quantitative research is
irrefutable in its grounds as it ‘quantifies' the problem and understand how
established it is by looking for projectable results for a larger population,
especially that the study is looking to establish the preference of the consumers
towards sustainable packaging. Given the fact that the descriptive procedure was
utilized, the study will describe and explain the preference of millennials, one of
the company’s target markets, in utilizing seed-embedded packaging. Through
this, entrepreneurs will be able to produce effective strategies that further
promote Enroot Packaging Co. and the proposed Interseed Packaging.

By all means, it is assured that the type of research method used is valid and
reliable since proven and comprehensive statistical ways will be employed to
accomplish the entrepreneurial study.

B. The Market

Socio-Cultural Environment

Enroot Packaging Company makes certain that it acknowledges the social and
cultural factors of its environment. With that being said, one aspect of this field is
education. In 2017, 26.3 million kids were enrolled in kindergarten, elementary,
junior and senior high schools in the public and private schools, state universities
and colleges and local universities and colleges (Philippine Statistics Authority,
2019). This implies that more Filipinos are becoming well-developed intellectuals
in recent years resulting in an adequate number of locals who are capable of

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understanding the current situation of our planet. In easier terms, the chance of
Interseed packaging becoming a huge success is likely for the reason that more
Filipinos can comprehend the issues revolving sustainability – a major problem
the company addresses.

Another socio-cultural characteristic to consider is the social organization of

the country. Santiago (2009) reveals that the Philippines has the highest
proportion of women participating in household decision making. In the same
light, new research by Mintel has revealed an eco-gender gap, finding that
women care more about the planet than men and are more interested in topics
like ethics and sustainability (Riordan, 2018). In this case, it is evident that the
potential consumers of the Interseed packaging, once it is released to the public,
are definitively women.

Lastly, the lifestyle being practiced by the Philippine society has an impact on the
potential hit of its product, the Interseed packaging. Correspondingly, the
Philippines' waste generation continues to rise with the increase in population
and the improvement of living standards (Senate Economic Planning Office,
2017). By the same token, it has been calculated that from 37,427.46 tons per
day in 2012, the country's waste generation steadily increased to 40,087.45 tons
in 2016 with an estimated average per capita waste generation of 0.40 kilograms
per day for both urban and rural. With these issues being raised, the Interseed
packaging will certainly be of aid to the local community for it recognizes the
problem of increasing garbage disposal in the vicinity.

Demand for Green Products and Services: According to the recent study by
the US Department of Commerce, consumers are now turning towards green
products because of the increasing awareness of the issues of the
environment[ CITATION Min19 \l 1033 ] . With the increasing social awareness of
consumers for the issue of sustainability, they are now looking for alternative
ways to solve the problem and propagate social responsibility. Enroot may see
this as an opportunity to target this general market by adhering to the mission of
providing green products.

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Millennial Characteristics that Affect Preferences: With Millennials as big as
30% of the entire population (Buxton, 2019). They now have a big amount of
spending power at the palm of their hands and are willing to buy products that
are promoted through the use of technological means. Their culture of
Technology and Social Media makes them a ready market for Enroot to target.

Technological Environment

It is undeniable that technology is rapidly changing in the present-day. Thus, the

Enroot Packaging Company strives to be a part of this drastic phenomenon.
Issued the last 31st of January 2019, ABS-CBN News reports that Filipinos
continue to reign supreme in terms of social media users globally. As a matter of
fact, the "Digital 2019: Global Digital Overview" showed that Filipinos spend an
average of 10 hours and 2 minutes on the internet via any device. Equally
important, social media has now become the main channel for most businesses
to reach out, interact and engage with potential customers (Mejia, 2016). In
essence, this suggests that the company must strongly utilize the advantage of
social media platforms in promoting the Interseed packaging to reach a wider
audience.

Environmentally Friendly Technologies

Environmentally Friendly Technologies are now hitting the market in term of

production of the product or by the way of service [ CITATION Rog11 \l 1033 ]. This
technology like the molds of the packaging for Interseed are using clean and
efficient technology that requires little electricity and plastic materials. New
technologies like this will replace factories possibly in the future, like how Google
is now investing for clean energy since 2011. The company’s machines will use
either energy saving technology, or natural sources like for example Solar Power.

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  Sun Drying Equipment
This method of drying the product will use the sun as the source to
harden. In its features it will rotate in order to let the moist parts to dry
directly under the sun. This type of technology will not use heat and
therefore lessens the cost by just rotating the molds in order to harden.
This implies that the work will be both efficient and effective because we
don’t need to dry them all one-by-one but rather have them in dozens of
batches to ensure a smooth and easy flow. This will not need much
manpower to operate and by correlation saves time, money, and energy
for the company.
 Industrial Mixers/ Blenders
In order to have a smooth product surface, the company uses industrial
mixers to emulsify the paper and adhesive mixture into a homogenous
one. These machines just like the others will be powered by the sun and
will assure the quality of the product. This applies well to the company
because they not only ensure the smoothness and quality of the product
by also that they use solar power to run industrial machines.
 Assembly Lines
The company will employ the help of assembly line machine belts.
Through assembly line machines it will make the work flow more efficient
by sending out huge amounts of product to be boxed and shipped to their
clients. The workers can easily monitor for defects in the packaging
because they go in batches or lines. Once the quality is measured the last
part of the assembly line will ensure the packing and shipping into
respective boxes. This applies to the company by saving man power and
having an easy monitoring process for the product.

Business Process Management Software

BPM Software helps organize and process business activities to provide an

efficient and effective work basis [ CITATION Oli19 \l 1033 ]. Integrating this into the
business will make it easier for goals and plans to become concrete. Schedules

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would be organized and planned. Meetings for partners and activities will go off
without a hitch or issue. Installing this software may come as a surprise for a
starter company like Enroot but in the long term, it provides punctuality and
organizational management to the users.

Economic Environment

In the facet of economic conditions, it is important to discuss the level of income

in the Philippine community. In 2018, Philippines is currently classified as a
lower-middle-income country along with Myanmar, Laos, Vietnam, Indonesia,
and India (De Guzman, 2018). According to Punongbayan (2018), the Gross
National Income (GNI) of a low-income individual is $995 or lower; while an
individual of lower-middle-income range has the GNI of $996 - $3895; people of
upper-middle-income have the GNI of $3896 to $12,055; finally, a person who is
privileged enough to be a part of the high-income range has the GNI of $12056
or higher. By all means, enabling the availability of the Interseed packaging
would not negatively affect its potential market for the reason that its consumers
are proficient enough to spend more for the packaging as much as they would
love to.

Employment Trends in the Philippines

“Employment Rate in Philippines decreased to 94.64 percent in the third quarter

of 2019 from 94.87 percent in the second quarter of 2019. Employment Rate in
Philippines averaged 91.37 percent from 1991 until 2019, reaching an all-time
high of 95.30 percent in the fourth quarter of 2016 and a record low of 85.60
percent in the second quarter of 1991[ CITATION Tra19 \l 1033 ].”

The employment rate of the Philippines is still continually growing in the

Philippines and therefore as a business, Enroot has to cater to the workforce by
hiring starting employees to be assigned for tasks like delivery, IT, Customer
Service. It is also an opportunity for them to recruit people who specialize in
packaging making and improve the product and promotion there of it.

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Hiring of Senior High School Graduates

Enroot wants to hire Senior High School graduates because it sees this as a
fresh new perspective on how the company should organize and run. Since K-12
Program has been now producing batches of fresh new graduates and seeing
that there is no immediate path for them right away, they now seek the
opportunity to work after graduating. The company sees this as a possible benefit
to train these senior high school students to their respective courses and give
assistance to help them have income[ CITATION Rev19 \l 1033 ]. STEM students for
technology and product development, ABM for business and accounting
processes, A& D for product design, and HUMSS for human resources and
ethical and legal codes.

Ecological Environment

Green Agenda

The Green Agenda allows companies to have activities that affect the business
(Farooq, 2018). They have a plan that conducts processes in a way that lessens
the bad effects of their operations. It is an opportunity for them to introduce
marketing awareness to their employees and consumers. It can be used as a
status symbol for the company to attract customers because they are “going
green” (LaMarco, 2019). Assuming that customers have preferences in brands,
they possibly will be picky in choosing from different green brands.

Pollution

The business can turn the environmental crisis into an opportunity by applying
their business idea of sustainable packaging to lessen the impact on the
environment (Farooq, 2018). This might pose a problem since too much pollution
can cause the disruption of supply chains and increase the cost of raw materials.

Availability of Natural Resources

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The business will be able to use reusable materials that lessen the weight of
dependence on natural materials (Stacey, Taylor, & Legge, 2012). Although in
times of high demand, they might be forced to depend heavily on natural
resources.

Environmental Accountability

Enroot has now a new standard to look after for the well being of the company.
Environmental Groups and stakeholders now hold Enroot to be accountable for
all the excretions made by the company. The company can assure them of the
product Interseed that helps the environment and reduces waste. Enroot has to
also adhere to current regulations done on itself or self-regulation or regular
regulation made by the government[ CITATION Mar16 \l 1033 ].

Renewable and Non-renewable Energy Used

The company has to control how much energy is used on both ends. The
companies must check if they use, gas, fuel, coal, or new energies to be used in
the business activities to ensure energy regulation and no waste of it [ CITATION
Eli13 \l 1033 ]. The company will have to find alternative sources like solar energy
to power machinery and equipment. This is an opportunity to have a check and
balance of the processes that are being undergone in the company.

Political-Legal Environment

Philippine Business and Environmental Laws

Philippine Decree No. 1152 or the Philippine Environment Code specializes in

the laws of emissions, waste disposals, incentives, etc., it is the legal binding that
reasons out to businesses and consumers to not abuse the environment and
always try to prevent pollution (Chan Robles Virtual Law Library, 2019). Breaking
of such law has sanctions and consequences for the parties involved. The
Philippine business laws and ethics apply to the company in order to protect the
entities and employees involved. In the instance that one stakeholder will be
harmed because of the product or while making the product, the company can

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ensure the person or entity is properly compensated as such. The laws also
protect the company from dealing with fraud or other malicious activities that
might damage its welfare, and the welfare of the partners, employees and
consumers. An example might apply like the unlawful distribution of products that
might result into the serious consequence to the company and its stakeholders,
the company will be able to defend itself and its entities, brand, etc.
Environmental laws also help in monitoring the business actions to the ecological
environment. Both the government and the general public will be able to
scrutinize and aid if there are matters that the company did not respond to,
situations like the abuse of land, resources and such will be monitored and the
company will have to hold a check and balance to help the government, general
public, and itself uphold of the laws they are effected by.

Eco-Friendly Campaigns of Politicians

Politicians in the future elections are now appealing to the public with their
campaigns about saving the environment and creating laws for sustainability.
The opportunity is presented to partner up with them to increase the perspective
of the business and the consumers. However, if the competing politicians win
then the policies that a candidate has put out might not be pushed through
(EcoWaste Coalition, 2019). This heavily applies to the company in the future
because the election of a political entity and their win may cause a change in the
system of how the government will run. In the case of a politician wanting help
the environment, or change laws affecting how businesses should run their
companies, then the company will have to comply the new laws and agendas
that are put out by the newly-elected candidates.

Permits, Taxes, and Regulations

They are certain policies and permits that a business has to comply with, for
example, the most basic as the Business Permit, taxes and licenses, tariffs and
quotas (Yaptinchay, 2019). Failure to comply might restrict the business from
operating and may cause the decreasing and outflow of opportunities (Dunseith,

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2017). The company is affected by permits, taxes, and tariffs because they need
this in order to run the business. Permits like business permits, licenses, and
regulations must be upheld or be visible to the people and inspectors to validify
the business operations if they are legal or not. Taxes like the income tax,
environmental fees, value-added taxes, must be paid or in part of the value-
added to the product to ensure that the business does not tax-evade, if the
business is to miss one of these then it would mean that they are running
unlawfully and unethically. Regulations help the company run smoothly. They
also help in the passing of incentives, and consequences. The company has its
own Business Ethics Code and corporate culture that helps it to be a comfortable
place for both the company and its entities.

Cebu City Government Organizational Structure

The company has the opportunity to inline itself with Cebu City’s Mission which is
to have an environmentally friendly Government. It has the benefits of becoming
sponsors in the City’s events. This will also allow the company to be in the
praises of the Government by helping with the waste problem. This ensures the
citizens of Cebu City may awareness of the happenings inside the city
concerning the environment[ CITATION Ceb10 \l 1033 ]. Once the Cebu city
Organizational Structure is in favor of the company as to say connections, good
graces, it will help the company do better by aiming for a better city and clean-up
projects that helps both the citizens and the company. If the company is in good
graces in the eyes of the Government, that would entail that there would be a lot
of projects that they could partner on, ensuring that the company does good for
the city, and markets to the citizens that they are a trusted brand.

Accessibility to Government Announcements and Regulations

A company needs to be aware of recent news and information that is coming

from the government[ CITATION Dig14 \l 1033 ] . This will lead to the company to not
hamper or cross on any new laws or announcements that the government has
put out. In cases like this, it would prevent any unethical behavior that will occur

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in the company. Therefore, by having this information, the company has now the
strict liability to care for the consumers and the partners and employees in the
company and be able to adapt to any situation.

Market Specification

C.
D.

Figure 1: Market Specification of Enroot Packaging Co.

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 Figure 2: Behavioural and Geographic Features of Target Makret

Figure 3: Demographic and Psychographic Features of Target

Behavioral

The specified target market need should be for a function, product container,
heavy usage, for product safety reasons, purchase relationship should be usual
positive. They would have to be familiar with the brand enough to purchase it. It
solves the containment issue of products. Minimal information required.

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Geographic

The specified region in the world is only in Southeast Asia Philippines, at its
Region VII (Central Visayas). The region in the country has a population size of
500,000-999,999.

Demographic

Income for companies should have the capital of at least Php 150,000, no
specified sex for a legal entity, none specified for family size, family life cycle,
and age is at a working age. Occupation professional and technical. No
specificities for ethnicity and social class. Lower-upper to upper-upper class.

Psychographic

Loyal business to business relationship, manufacturing, food, cosmetics,

transport, government, type of customer with at least 50 employees,
manufacturing industry or management of companies, with 1-2 facilities. Product
use will be containment for products, buyer business-business transaction,
purchased through emails, websites, or business contact.

C. Overview of Marketing Research

Identification of Product

The product offered by Enroot Packaging Co. is the Interseed packaging which is
made out of biodegradable materials consisting of scratch papers embedded with
vegetable seeds. Consequently, these papers are shredded into small pieces
using a blender. By all means, the entrepreneurs made use of vegetable seeds
that are easy to grow such as squash, beans, cucumber, and peas. Furthermore,
the company would want to acknowledge the increasing trend of home gardening
and use it to its advantage (Nichols & Himi, 2009). These paper boxes come in
pre-ordered packaging sizes for the interested firm’s products (small, medium,
large). Sizes may vary on given measurements by the company who is interested

16 | P a g e
in availing the Interseed packaging for their products. Notably, the Interseed
packaging may be used as an alternative to plastic for locals to lessen waste
disposal and to be of aid to the environment’s health. Instead of disposing the
packaging material, a consumer may plant the product that will prosper into a
vegetable plant at the right time.

Determination of the Target Market

Enroot Packaging Co. aims to target manufacturing factories. These are the
factories that assemble the raw materials and make them into an output of
different kinds (e.g. shoes, plates, clothes, bags, furniture, phones, etc.) Our
company wishes to imbue our seed-embedded packaging idea into the
packaging department of these companies’ plants. To do so, Enroot Packaging
Co. will produce the Interseed packaging in the form of boxes which is instilled
with vegetable seeds and will be sold to these potential markets.

D. Competitive Analysis

Table 1: Competitors of Enroot Packaging Co.

Competitor 1 Competitor 2 Competitor 3
Grafixpro Printing Tamiya Chuo
Company
Victory Cartons Inc. and Packaging Printing and
Names
Corp Packaging Corp.
Sacris Road,
Tipolo, Mandaue MEPZ II, Lapu-Lapu
Location Mandaue City,
City, Cebu City, Cebu
Cebu
Product/Servic 1. Specialty 1. Customized 1. Paperboard
e Boxes Calendars (varied sizes)
(varied (11’’x22’’ – 2. Corrugated
sizes) 22’’x34’’) Boxes
2. Paper 2. Stickers (varied sizes)
Boards (varied sizes) 3. Paper bags
(varied 3. Boxes (varied sizes)
sizes) (varied sizes) 4. Stationary

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 3. Corrugated
Boxes (varied
(varied designs and
sizes) sizes)

1. Word of 1. Word of
Mouth Mouth
2. Personal 2. Personal 1. Word of
Selling Selling Mouth
3. Social Media 3. Social Media 2. Personal
Promotional
Advertising Advertising – Selling
Strategies
- Facebook Facebook 3. Sales
Page Page Promotion -
4. Sales 4. Sales Wholesaling
Promotion - Promotion -
Wholesaling Wholesaling
Php. 13.00 – Php. Php. 15.00 – Php.
Php. 19 – 150.00
110.00 per unit and 100.00 per unit and
per unit and may be
may be able to may be able to
Pricing able to decrease
decrease price per decrease price per
Strategies price per unit upon
unit upon unit upon
purchasing bulk
purchasing bulk purchasing bulk
orders
orders orders

d. Other trade practices in the industry:

The packaging industry is growing every day. New packaging companies

are increasing and the market is getting more and more competitive with
globalization. Consequently, companies need to step up their game and develop
a unique product to attract customers. Some companies like Toscatti use eye-
catching colors for their packaging to capture the interest of the customers.

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However, other companies developed unique ways of packaging for clients to
invest in them such as, International Paper, the world's largest packaging
company, produces fiber-based packaging, pulp and paper which centralizes the
latest trend of sustainability. Additionally, the company Reynolds and Reyner
designed a line of colorful labels for the packaging of Waldo Trommler Paints to
help highlight the purpose for each paint type while maintaining a welcoming
persona since colors can communicate that the product is both friendly and fun
while also helping customers identify useful applications for the products.
Moreover, flexible packaging is highly rated as a way to give customers clear
visibility of your product. One company, Festina, turns its packaging for diving
watches into a literal demonstration of the product's promise to function
underwater. The watch itself is submerged in water in waterproof packaging.
Nevertheless, the design is simple, surprising, and shows customers the true
purpose and ability of the product. Furthermore, brands such as Nike are a very
popular consumer choice for high-quality athletic shoes. To keep their products
safe during shipping and ensure they arrive at their destination in top condition,
the Berlin-based agency Scholz & Friends designed a simple but inventive
flexible packaging design for the Nike Air shoes. The design places the Air shoes
in inflated packages to keep shipments safe and at the same time demonstrate
the unique, lightweight quality of their Air shoes. Lastly, a well-known company,
Alaska Milk Corp, has launched a 40g version of Alaska Condensed Filled Milk
to create a convenient option for snack time (Roberge, 2017).

On the other hand, other companies have improved their products to be

more sustainable. One example is the brand Guardian; they announced earlier
this year that they would stop wrapping its newspapers in plastic. It settled on an
alternative malleable film made of potato-starch that can be composted. Another
example is Pangea Organics collaborating with Seeds of Change, an organic
seed company, developed compostable packaging that contains seeds. Their
bath and body care products could take root when you plant it, giving life to
medicinal herbs. Lastly, another famous example is L’Oreal’s Paper Bottles.
Loreal’s Seed Phytonutrients eco-friendly beauty product line houses its skincare

19 | P a g e
products in bottles made of paper, not plastic. The recyclable and compostable
packaging design uses a paper label and interlocking tabs, so glue isn’t needed
(Healthy Human, 2019).

e. Positioning Map

Figure 4: Positoning Map

Tamiya Chuo Printing and Packaging Inc. is a company that manufactures

printing and packaging materials. They are continuing to thrive to be the leading
company in the printing and packaging industry. Additionally, according to
reviews from their employees, this company produces high-quality product and at
the same time, the price is high because it is of the high-quality products used
(Jobstreet, 2019). Although this may be true Graffixpro Printing and Packaging
Co, on the other hand, was reviewed to have produced merchandise with lower
prices but also the lower quality of goods (T-shirt Forums, 2013). Comparatively,
Victory Carton Inc. is a privately held, family operation, currently in its second
generation (Victory Carton, 2019). According to numerous reviews, the

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company's products are of high quality and at a cheaper price compared to other
companies.

E. Quantitative Method

Objective of the study

The purpose of this quantitative research is to determine the millennial consumer

preference of using seed-embedded packaging in buying products within Cebu
City, Philippines.

Specifically, this study:

1. identifies whether an individual’s educational background can affect
consumer preference to utilize seed-embedded packaging
2. determines the willingness of consumers to spend more for the packaging
2.1 Lifestyle
2.2 Socioeconomic Factors
3. determines the influence of 3Ps (product, promotion, and price) have on
the preference of millennial to utilize seed-embedded packaging

Research Methodology

Research Design

The research is conducted with a non- experimental quantitative approach

to the variables; specifically, a descriptive correlational design which involves
observing and describing the behaviour of a variable without influencing it in any
way (Shuttleworth, 2017). By the same token, it includes the variable of millennial
consumer preference as the dependent variable and the product “Interseed
Packaging” as the independent variable. Quantitative research does not only
generate knowledge and create understanding about the social world but also
provides answers to questions about the frequency of a phenomenon (Allen,
2017). Hence, the researchers pursued this method since the study aims to

21 | P a g e
identify the consumer preference of utilizing seed-embedded packaging and how
frequent is this among millennials.

Research Respondents

The respondents of this investigation belong to the age group of

millennials, comprising the ages of 23-38. The team has chosen this age bracket
since this generation has been the driver of change ever since it was defined as
the definitive generation to embrace technological change in a big way.
Millennials have employed the privilege of seeing the rise of the Internet, and
quick global communication trends. Hence, this makes them look at the world
differently than most people. It is in this age group where full supporters of
environmental progress, prioritizing the welfare of nature in front of their own
needs and desires are dominant. These ideas aforementioned explain the reason
of their participation in the study. Moreover, the researchers stood in need of
sixty (60) respondents to ensure the validity of the study.

The research employed the Purposive Sampling Method which is a technique

that involves identifying and selecting groups of individuals that are especially
knowledgeable about or experienced with a phenomenon of interest.

Research Instrument

The research instruments applied were in the form of survey

questionnaires that has involved dichotomous questions that only provide two
possible answers. Accordingly, this type of inquiry is utilized to clarify a
respondent’s preference which would be the main objective of the study (Torneo
& Torneo, 2017). Moreover, matrix questions were presented on the provided
questionnaire, specifically the Likert Scale, primarily used to obtain the
respondent’s preferences or degree of agreement with a statement (Bertram,
2016). To clarify, questionnaires were self-made and has underwent the reliability
testing of Cronbach’s alpha, a measure of internal consistency where N = the
number of items, c̄ = average covariance between item-pairs, and v̄ = average
variance (Statistics How To, 2014). Consequently, the reliability test has

22 | P a g e
garnered a 0.7 alpha level implying the validity of the formulated questionnaire.
Also, researchers had thirty (30) respondents for the sample testing. Lastly,
researchers ensured the plausibility of the survey questionnaire through
consulting experts such as the team’s research adviser, Ms. Yvette M. Villarta;
and the team’s panelist, Mr. Ferdinand Ray Gagani.

Research Environment

Figure 3: Ayala Center Cebu [Google Maps location of Ayala Center Cebu, PH].
(28 September 2019). Google Maps. Google. Retrieved from
https://www.google.com/maps/place/Ayala+Center+Cebu

The collection of data was conducted within the premises of Cebu City,
Philippines for the reason that this city has dominated the waste disposal of Cebu
province, garnering a total of 80% waste collection rate. Correspondingly, the
researchers narrowed down the research location at Ayala Center Cebu in
Cardinal Rosales Avenue. Considering the fact that most stores inside the mall
are occupied or managed by millennials, the researchers were confident that
there will be a sufficient number of respondents that can impart necessitous data
needed to complement the research problem.

Treatment of Data

The research has utilized two (2) descriptive statistical methods of which
are the following: Mean and Standard Deviation.
23 | P a g e
 Accordingly, mean is the most popular and well known measure of central
tendency (Laerd Statistics, 2018). It is an average of a group characteristic
acquired through adding all the scores and dividing by the total number of scores
(Research Rundown, 2017). Consequently, the sample mean formula is x̄ = ( Σ
xi ) / n where:

 x̄ stands for the “sample mean”

 Σ means “add up”
 xi “all of the x-values”
 n means “the number of items in the sample”
Equally important, the mean is essentially a model of the data set. It
identifies the frequency of a particular characteristic in a study. Henceforth, the
group employed this statistical tool since this study has the purpose of
recognizing consumer preference towards the seed-embedded packaging and
how frequent this phenomenon is among millennials.

Lastly, standard deviation provides an indication of how far the individual

responses to a question vary or "deviate" from the mean (DataStar, 2013). A low
standard deviation indicates that the data points tend to be very close to the
mean, whereas high standard deviation indicates that the data points are spread
out over a large range of values. In the same light, the formula for standard
deviation is shown below.

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 Figure 4: Formula of Standard Deviation

To figure out the precision of the mean obtained, the standard deviation
must be determined since this statistical tool is commonly used to measure
confidence in statistical conclusions.  In addition, the standard deviation, like the
mean, is normally only appropriate when the continuous data is not significantly
skewed or has outliers. All things considered, the researchers have utilized the
aid of Microsoft Excel to make the process of analysing data efficient and
accurate.

Gathering of Data

The data used for the research will be acquired through the following:

1. Transmittal Letter will be addressed to the principal and Letter of Permission

to the parents of the researchers to allow them in gathering information from
the respondents in the specific location they have chosen. This is also vital for
the formality and the security of the researchers.
2. A letter of consent will be attached along the survey questionnaire and given
out to the respondents to inform them of the intent of the study.
3. Respondents will be briefly oriented by the researchers concerning the type of
product that they will be providing insights and preferences. The survey
questionnaire comprises questions that are directly related to the problems

25 | P a g e
 that the study intends to solve. The questions may have two-option answer
(Dichotomous) or a five-scale option answer (Likert Scale). In this way, the
answers may be easily quantified and statistically analyzed.
4. The data primarily utilized for the research will be sourced out from the results
of the surveys that will be conducted by the researchers to the Millennials
(born in the year 1981-1996).
The researchers will also apply ethical considerations especially to the
respondents who may be sharing private information to the researchers through
the letter of consent which will be attached with the survey questionnaire and
treating the information with utmost confidentiality. The researchers value and
respect their respondents’ decision to whether or not participate in the conducted
study. Given the situation where a millennial commits himself to the study, it is
rest assured that all information provided will be for research purposes only.
Respondents have the choice to whether or not provide their names on the
survey questionnaire given by the researchers. Notably, the millennials involved
were not forced to take part in the conducted study and their option to participate
is completely voluntary.

Ethical Consideration

The researchers value and respect their respondents’ decision to whether

or not participate in the conducted study. Given the situation where a millennial
commits himself to the study, it is rest assured that all information provided will
be for research purposes only. Consequently, details concerning the respondents
are confidential between them and the researchers. Accordingly, the team
ensures the privacy of the respondents. Respondents have the choice to whether
or not provide their names on the survey questionnaire given by the researchers.
Notably, the millennials involved were not forced to take part in the conducted
study and their option to participate is completely voluntary.

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 Analysis of Data

This chapter will exhibit the summarized collected data from the survey
results, as well as the statistical treatment used in interpreting the data.
Additionally, the implications taken from this chapter will effectively answer the
problem addressed by the overall study.

Table 1: Educational Background of consumers

Factor N SD Mean Description

Bachelor's Degree 36 0.835982 3.866667 High
Elementary Graduate 14 0.853176 3.814286 High
High school Graduate 10 0.95347 3.88 High
Total 60 0.880876 3.853651 High

Table 2: Central Tendency Scale

Central Tendency Scale

Interval: Level
4.3 – 5 Very High
3.5 – 4.2 High
2.7 – 3.4 Average
1.9 – 2.6 Low
1 – 1.8 Very Low

The table above shows that the indicators for the factors according to the
central tendency scale is high and from there we can safely accept the
alternative hypothesis proposed by the study. Moreover, this could extrapolate
that the educational background of a consumer has a high influence on their
buying preferences. Similar to this is a study done on Consumers’ Behaviour
Concerning Sustainable Packaging by Bălăceanu (2018), who said that having
information about the environment is a big factor in their willingness to buy green
products. Additionally, based on the data we can interpret that there is a high
awareness in the larger part of the millennial population of the impact of
packaging on the environment. This can be supported by an explanation
provided by Fraj-Andrés et al. (2007) on the effect of environmental knowledge

27 | P a g e
on consumer ecological behaviour and suggested that environmental knowledge
moderated the relationship between ecological attitude and green behaviour.
This deduction then could infer that if a consumer at least has a high educational
level they have information on the state of the environment at present. Moreover,
their avidity for information makes them more likely to utilize sustainable
packaging and education as a variable has proven its urgency and vitality for
sustainable consumer behaviour (Khan, 2014). Therefore, if the Enroot Company
were to sell their sustainable product, Interseed packaging, is most likely utilized
by consumers with educational background.

Table 3: Lifestyle and Socioeconomic factors of consumers

Factor N SD Mean Descriptio

n
Lifestyle 60 0.857811 4.006667 High
Socio-Economic 60 0.868562 3.963333 High
Overall High 60 0.863187 3.985 High

The analysis above shows the treated data wherein both lifestyle and
socioeconomic factors have a high positive central tendency. Their means and
standard deviation fall under the range of high positive indicators which
determines the decision of accepting the alternative hypothesis. Based on the
table above, the lifestyle and socioeconomic factors have a big impact on the
willingness of the consumers to utilize an eco-friendly product that is worth more.
Moreover, the lack of economic resources for consumers is affected by the price
and enacts a barrier between the willingness to purchase green packaging and
the choice to save money (Joshi, 2014). Likewise, Bălăceanu (2018), found out
that the socioeconomic factors play a big part in the buying preference of the
consumer and their willingness to purchase for a higher price.

Additionally, the consumer lifestyle or environment also highly influences

their preferences. The increases in environmental awareness in recent years and
popular eco-friendly trends have influenced the consumers and their intention for

28 | P a g e
green purchase. It is their willingness to contribute to the sustainability progress
as an individual that is affected by the lifestyle and socioeconomic factors
(Rookka, 2008).

Furthermore, Liu et. al, (2012), have examined in their study the influence
of subjective norm/social norm and reference groups on purchase intention and
actual purchase behaviour. They found subjective or social norms and reference
groups to have a positive correlation with purchase intention and actual purchase
of green products. In addition, Salazar et. al. (2013), further revealed in findings
that social and reference groups, especially peers and other individuals with
close proximity to consumers have a stronger influence on consumers’ green
purchase decision-making process. Hence, Enroot must consider the lifestyle
and socioeconomic factors of their target market when developing the attributes
of the product.

Table 4: Influence of the Product Mix and Millennial Preference

Descriptio
Factor N SD Mean n
0.86537 3.94333
Product 60 3 3 High
0.86537 3.94333
Price 60 3 3 High
0.86537 3.94333
Promotion 60 3 3 High
Overall 3Ps 0.86537 3.94333
Average 60 3 3 High

The table above presents the overall responses of the respondents

treated with the use of central tendency or the standard deviation and mean.
Moreover, the results for the mean when referred to the Central Tendency Scale
would belong to the High-level category. This implies that the 3P’s of marketing
specifically, the Product, Price and Promotion highly affects the consumer

29 | P a g e
preferences of Millennials when utilizing seed-embedded packaging and the
alternative hypothesis of the study is accepted.

Product is the element in the marketing mix that will define to the target
customers what about the company's product that meets the customer's needs
and packaging as an aspect of a product performs an important role in
marketing. It may either encourage or discourage customers from purchasing a
certain product at the point of selling or when a customer is choosing from the
different brands of similar products (Kotler & Keller. 2006). Careful consideration
in the planning of the product mix is crucial in attracting customers as well as
satisfying their needs. With the results of the analysis being high, this implies that
the product mix strongly affects the consumer’s preference in utilizing seed-
embedded packaging. Similar is a study done by Mondeleras (2009), that
reported that product quality significantly influenced consumer green purchase
intention and behaviour. Therefore, it can be said that functional and sustainable
characteristics of products combined with high product quality positively influence
consumers’ green purchase behaviour (Smith & Paladino, 2010).

In a customer’s perspective, price is one of the things they look out for
when purchasing a product especially if the product that they are looking for
comes at a higher price wherein it may need a thorough forethought before
investing. Pricing is important since it defines the value that your product is worth
for you to make and for your customers to use. It is the tangible price point to let
customers know whether it is worth their time and investment (Campbell, 2019).
This is supported by a study done by Eze & Ndubisi (2013), revealing that high
price sensitivity negatively affected green purchase behaviour of consumers. It is
thus clear that high price negatively influences green purchase intention and
behaviour. With the results indicating the high level, this stipulates the
importance of pricing accordingly to the quality of the product as well as
according to what the consumers prefer.

From the branding perspective, packing works as a brand enhancer and

identifier to attract consumer’s attention on the store shelves and fulfills the

30 | P a g e
function of brand positioning and competitive advantage (Grundey, 2010). For
manufacturing companies, the packaging is used not just in the overall
production but also a way of promoting a product through creative packaging
design, being capable to influencing customers to purchase or not purchase a
product. However, for packaging companies themselves, promoting packaging
products is just as important as well. It is often suggested that for effective
packaging reliable information should be provided in a simple and user-friendly
way through product labels. This might build consumer trust and encourage more
sustainable purchases (Rahbar & Wahid, 2011). The results from the analysis
also imply that the way a product is promoted is also influential to customer
preference of Millennials which is in comparison to the research results
presented by Chang (2017), on the remarkably positive effects of sales
promotion on consumer involvement and purchase Intention, revealing that
consumers with high involvement appear more aware and concerned with the
product.

By all means, product, price and promotion highly influences the

preference of Millenials in their preference to utilize seed-embedded packaging
wherein packaging plays a big part in their decision to buy the product, price is a
strong determinant of consumer preference and promotion is a substantial
indicator of the buying partiality.

Summary of Findings, Conclusion and Recommendations

Summary of findings

1. Educational background highly influences consumer preference toward seed-

embedded packaging
2. The willingness of consumers to spend more (e.g. lifestyle and socio-
economic factors) highly influence consumer preference in utilizing seed-
embedded packaging.
3. The 3Ps of the Marketing Mix (Product, Promotion, Price) highly influences
preference of millennials in utilizing seed-embedded packaging.

31 | P a g e
Conclusion

Therefore, the consumer preferences of purchasing the packaging are

highly influenced based on the Educational Background, Lifestyle and Socio-
economic status of the Consumer. The consumer is also highly influenced by
the quality of the product, the pricing strategies, and marketing strategies of
the company. This implies that when consumers are highly influenced by
those factors then they will prefer to buy the packaging that fits their
standards of those factors.

Recommendations

 It would be better for the company to market the product appropriately. It

would then be met with the right strategies like penetration strategies or
advertising for it to enter the market slowly.
 The Business should have personnel researching for more markets and
products to expand their line.
 The dimensions of a future study should include more than one age group.
 The recommendations may be achieved through talking with professionals
like Marketing Strategists, experienced managers, and etc. to achieve the
best profitability for the business.
 Suggestions for Future Research
o The Variables of the Research can also expand to accommodate
more information into the study for example adding place to create
the 4Ps of the Marketing Mix.
o Intervening factors such as experience, culture and location should
be considered in order to see if they also influence their behavior or
decision.
o The sample size should accommodate more respondents in order
to adhere to a larger population.

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 III. TECHNICAL ASPECT
A. Product
1. Description of the Product including specifications relating to their
physical, mechanical and chemical properties
Enroot Packaging Co. aims to provide products with sustainability
in mind. Because most of the wastes found in the environment are from
used packaging such as plastic bags and boxes, the firm has decided to
introduce a packaging product that is not only biodegradable but can also
be planted.
Interseed packaging is made out of recycled paper from dumpsites
such as old scratch paper and old newspapers which is milled and glued
with corn starch glue. It is then converted into paper boxes along with
vegetable seeds such as squash, Chinese cabbage, Carrots, Okra,
Eggplant, and Tomato. The packaging will be slightly textured due to the
presence of the seeds embedded in it.
The advantages of utilizing recycling paper include saving
resources especially the cutting down of trees used to make paper, water
and landfill space. Additionally, paper recycling reduces greenhouse gas
emissions and recycled fibre is a sustainable, cost-saving resource for
making new paper products.
Environmentally, seed embedded packaging can contribute to
reforestation. It can also encourage people to plant home gardens, which
provide much-needed habitat for wildlife, and cultivates healthier soil
rather than artificially cultivated soil.

Okra, also known as gumbo or ladies' fingers, is a warm-season

vegetable. In essence, this legume will be utilized for its juice, using this
as an alternative to a typical adhesive that has non-biodegradable
components. The thick and sticky substance found within the okra is

33 | P a g e
 caused by a material called mucilage, which is also found in Aloe Vera.
This mucilage intensifies when in contact with liquid.
To make the paper packaging plantable, seeds such as Squash,
Chinese Cabbage, Carrots, Okra, Eggplant, and Tomato will be added into
the concoction of recycled papers. The seeds of these following
vegetables are particularly small and flat-shaped which is ideal in
maintaining the even surface of the packaging.
Most vegetable seeds remain plantable for about two to three
years, but some vegetables, like onions, deteriorate within a year while
others like lettuce, can successfully sprout after five years. Since Enroot
Packaging Co. will be using vegetable seeds that commonly expire within
two to three years at most, the packaging is targeted on small-scale
products such as cosmetic products, toiletries, and food items since these
are the common products that have high rates of disposal daily.

Figure 5: Product Sample

34 | P a g e
 Figure 3: Close-up shot of the paper’s texture

2. Uses of the product

Interseed Packaging serves the following purposes:
 Packaging
 Reduce Plastic usage
 Increase reforestation of plants and encourage home
gardening
Aside from the primary function of packaging such as securing the
product within it and protecting it from physical impacts such as hitting,
wetting, and bruising, it also allows the product to reach the consumers in
the most economical way possible and creates ease of storage. Utilizing
Interseed packaging, therefore, adds more advantages such as the
packaging being biodegradable, cost-efficient, energy-efficient and non-
toxic which further highlights its ease of disposal, aside from its capability
of being planted and grown into edible vegetables.
Using Interseed Packaging also reduces the use of plastics in the
environment. Plastic is known to be one of the major contributors to land
and water pollution. Burning plastic may not only create pungent smelling
fumes but also release gases that also contribute to the depletion of the
ozone layer.
Lastly, planting seed embedded packaging increases the rate of
reforestation. Despite the size of the fully-grown vegetables that may grow
upon planting the seeds from the Interseed in comparison to that of large
trees such as Narra, Coconut, and Mahogany among others, these plants
still produce oxygen that is vital for our survival. Planting Interseed
packages may also encourage home gardening to its consumers. Not only
do these vegetables are healthy for one's health, but it can also be a fun
activity for the family to do.

35 | P a g e
 3. Product Specifications

Table 2: Sample Packages offered by Enroot Packaging Co.

Tea Box Essential Oil Box

Toothpaste/Toothbrush Box Pizza Box

Enroot packaging Co. offers custom-sized packages for cosmetics,

toiletries, and food products such as tea boxes, essential oil boxes,
toothpaste/toothbrush boxes, and pizza boxes. The sizes may vary depending on
the customer. However, there is a minimum size offered for each package type
and a uniform gsm or grams per square meter of 300 gsm to ensure that the
seeds will be securely held in place. A Minimum Order Quantity (MOQ) is also
required for each order which will be stated in the following table.

Table 3: Minimum Sizes offered and Minimum Order Quantity.

Packaging Sizes MOQ
Minimum Size 500 pcs.
Tea Box
(9.3cmx5.6cmx4cm)
Minimum Size 500 pcs.
Essential Oil Box
(2.5cmx2.5cmx8.5cm)
Minimum Size 500 pcs.
Toothpaste/Toothbrush Box
(6.5cmx1cmx1cm)

36 | P a g e
 Pizza Box Minimum Size 350 pcs.
(65.3cmx32.3cmx25cm
)

Botanical Paperworks also offer similar products in terms of incorporating

seed-implantation technology into their packaging. Examples are their plantable
coffee sleeves and customized packaging for cosmetics and toiletries. On the
other hand, AliExpress – a website that is comprised of different sellers that offer
different kinds of wholesale products including packaging, sells boxes that are
similar to the Interseed Packaging in terms of Size.

Figure 6: Similar Products offered by

Botanical Paperworks

Figure 7: Similar

37 | P a g e
 B. Production Plan

1. Production schedule (workflow)

Figure 8: Production Schedule from September 13, 2019 – October 13, 2019

Shown above is the production schedule of Interseed Packaging from

September 13, 2019 to October 13, 2019. Chiefly, vegetable seeds that were
embedded in the packaging at this period are known to be abundant due to the
country's tropical climate (Philippine Primer, 2017). Placing attention on the
given schedule, it is evident that vegetables such as Corn, Chinese cabbage
(Pechay), Okra, Onion, and Tomato are produced more frequently compared to
other vegetables. Consequently, this is because the vegetables aforementioned
are heavily demanded by Filipino consumers. Besides, these seeds are cheap
hence the company would not have a hard time acquiring these materials.

38 | P a g e
 Moreover, vegetable seeds such as Squash and Lettuce are produced
less despite its affordability for the reason that these plants are not much
requested by the consumers. Lastly, Eggplant, Carrot, and Cauliflower seeds are
less prioritized in the production process since these are costly to purchase.

2. Production Process

5.) 1.)
Distributing Fabrication

2.)
4.) Testing
Assembling

3.) Quality
Checking

Fi
gure 9: Production Process

Fabrication of raw materials such as the vegetable seeds and the recycled
papers are to be delivered by the suppliers which will be from 2 major
companies, specifically,  FDR Integrated Resource Recovery Management Inc.
(FDR-IRRMI) and East-West Seed Group. Afterward, the assembling of raw
materials into the finished product will take place where vegetable seeds will be
embedded into the papers. This process will take place in the factory of Enroot
Packaging Co. The procedures for the seed paper are as follows:

1. Gather the recyclable papers to be used

2. Place it in the mill to grind the paper.
3. Warm water will be poured, followed by okra juice over the pieces of
paper.

39 | P a g e
 4. After ten seconds on a low setting, increase the speed of grinding for
about thirty seconds more. After this, there should be no visible paper
flakes remaining.
5. Add the vegetable seeds, stir them. Do not blend, stir only.
6. After the seeds have been added, pour the mixture into a strainer and get
rid of as much water as possible.
7. A piece of microfiber towel is laid out on a flat surface where the pulp is
dumped and spread over to dry.
8. After it has dried, the pulp is then folded into boxes of different sizes.

Quality checking will then follow to inspect products ensuring high-end

results. The production management is responsible for the quality assurance and
the supervision of the production process. Subsequently, the Interseed
Packaging will be delivered to businesses who partnered with Enroot Packaging
Co. as the supplier of their respective product packaging.

3. Plant location which includes building facilities

Figure 10: Location of FDR Integrated Resource Recovery Management Inc. (FDR-IRRMI) [Google
Maps location of FDR-IRRMI]. (14 October 2019). Google Maps. Google. Retrieved from
https://www.google.com/maps/place/Ayala+Center+Cebu

40 | P a g e
 The plant will be located in Naga City, Cebu. It will be constructed
alongside the FDR IRRMI biogas plant for the reason that this company will be
the primary source of Enroot Packaging Company’s recycled paper needed to
create the Interseed Packaging. Aside from this, the entrepreneurs have also
considered the cost of transporting these raw materials towards Enroot’s plant.
Henceforth, Enroot constructed the facility near the supplier to minimize costs.
The Enroot Plant will be composed of 2 buildings with various functions of which
are the following: Administration Building and the Manufacturing & Inventory
Building. Correspondingly, the administration building will be subdivided into two
parts: the production department, which is in charge of monitoring the production
and quality of Interseed Packaging; and the finance department who monitors the
financial status of the company and is in charge of making financial expectations.
Moreover, the manufacturing building is where the processing of raw materials
will occur. Consequently, the by-product of these raw materials is the Interseed
Packaging which will be stored in the inventory and is ready for distribution and
sale.

41 | P a g e
 4. Plant Layout

Figure 11: Enroot Packaging Company’s Plant Layout

The production scalability is divided into these steps: first, the capital and
financing, where the company can allocate its resources better. Buying the area,
infrastructure and equipment is prioritized to give the company a place to work
and the equipment it needs to create the product. Perfecting the manufacturing
process and product development will give Enroot Packaging Company an edge
to provide high-quality products that will satisfy customers. The company then
computes the price based on the prices of the materials used such as labor,

CAPITAL AND
FINANCING

PRODUCT
INFRASTRUCTURE
FEEDBACK AND EQUIPMENT

MANUFACTURING
42 | P a g e PROCESS AND
PROFIT CONTINUOUS PRODUCT
DEVELOPMENT
 DISTRIBUTION PRICING

MARKETING
utilities, taxes, costs, etc. Next, effective promotions must be done by the
marketing department to make an impact on the audience. With this, the
marketing department should use the right marketing techniques for the
appropriate target market. Afterward, the company then gets orders from
companies and distributes the products to the business consumers. Once
distributed, the company then gets their payment and profits out of the exchange.
Lastly, the company takes it seriously with the product feedback; therefore, it
monitors suggestions and complaints from consumers and keeps track of its
social media accounts. This will continue to cycle until the company is again
ready to expand their business through product or scope of consumers or area.

Figure 12: Production Scalability of Enroot Packaging Co.

5. Equipment Required

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 Collection of the recycled paper

Milling of the Papers

Mixing of the Seeds

Conversion of the mixture to paper rolls, sheets, into different types of

paperboard product

Manufacturing of the Packaging according to the types of packaging, size, and

order quantities

Printing of the Labels of the Retailers and Brand Owners (Customization)

Distribution to the Industrial Consumers and Household Consumers

Figure 13: Process flow of manufacturing Interseed Packaging.

Different equipment will be used to manufacture the Interseed

Packaging. After the collection of recycled paper, a packaging mill is
required to use these recycled paper pulps to make a packaging board.
This is also where the vegetable seeds will be mixed with the pulps and
will be flattened out to make the packaging board. It is then transferred to
the converter or box plant where the packaging board is printed with
labels, creased, folded and glued before being sent on to the
packer/distributor or to the customer who ordered the packages which will
be then filled with their product. Any leftover material such as corrugated
clippings and boxboard trims are sent back to the mill for recycling.

6. Sources of Materials

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 Enroot Packaging Company has decided to obtain their raw
materials from two (2) major companies who are also one with the
partnership's advocacies. The following businesses are FDR Integrated
Resource Recovery Management Inc. (FDR-IRRMI) and East-West Seed
Group. Correspondingly, FDR Integrated Resource Recovery
Management Inc. (FDR-IRRMI) is a company based in Cebu that
inaugurated the Philippines’ first hybrid Dry Anaerobic Digesting (DAD)
Biogas Plant. The company collects garbage around the vicinity of
Minglanilla, Carcar, and Naga City; they then segregate these and utilize
organic waste from the gathered domestic garbage to produce electricity.
Wherefore, the remaining paper wastes accumulated by FDR-IRRMI that
is not needed for energy conversion will be given to Enroot Packaging
Company for the creation of the Interseed Packaging. In other words,
FDR-IRRMI will source out recycled paper materials needed for the
production of Interseed Packaging.
Furthermore, East-West Seed Group will provide Enroot Packaging
Company vegetable seeds that will be required by the Interseed
Packaging. East-West Seed Group provides seeds for smallholder
vegetable farmers in the tropics to help them grow better crops and realize
higher yield. Hence, acquiring seeds from this company allows Enroot
Packaging Co. to be of aid to Filipino farmers who need an abundant
source of income.

7. Raw materials & Utilities

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 Table 4: Raw Materials and Utilities
AMOUNT/
RAW MATERIAL QUANTITY PER DESCRIPTION
ITEM
Paper is a thin material
produced by pressing
together moist fibers of
cellulose pulp and drying
them into flexible sheets. This
Used paper 100 g is what constitutes almost the
whole base of the product and
this is where the seeds will be
embedded in. It will be used
by the company for many
versatile kinds of packaging.
Vegetable Seeds
 Squash seeds
 Corn Seeds Vegetable seed is an
 Chinese Cabbage embryonic vegetable plant
Seeds enclosed in a protective outer
 Lettuce Seeds 5g covering. This is what will be
 Okra Seeds embedded into the paper to
 Eggplant Seeds further the green attributes of
 Onion seed the product. These seeds will

 Tomato Seeds be alive and fully plantable.

 Cauliflower Seeds
 Carrot Seeds
This will be used to reduce
the used paper into fibrous
Water 100 ml
pulps that will be used for the
Interseed sustainable mixture.
Okra Juice 250 ml This will be the adhesive that

46 | P a g e
 holds the whole product
together.

The raw materials mainly used are the used paper material, the vegetable seeds
(which is further specified) and the corn starch glue. Additionally, the utility used
in the making of this product is water. The following are used to make the product
at its highest quality and all have a specific role to play in the product's process of
manufacture. Moreover, there are specific measurements of each material and
utility that will be used to manufacture each item produced.

8. Estimated production cost

Table 5: Cost of Materials

COST OF
ESTIMATED GENERAL
RAW MATERIAL MATERIAL PER
COSTS PER MONTH
UNIT
Used paper Php 30.00 x 10 kg = Php
1 kg= Php 30.00
3000.00
Squash seeds Php 58.00 x 50 packs = Php
5 g = Php 58.00
2900.00
Corn Seeds 10 g = Php Php 48.00 x 50 packs = Php
48.00 2400.00
Chinese Cabbage Seeds 1.5 g = Php Php 50.00 x 50 packs = Php
50.00 2500.00
Lettuce Seeds Php 80.00 x 50 packs = Php
5 g = Php 80.00
4000.00
Okra Seeds Php 36.00 x 50 packs = Php
7 g = Php 36.00
1800.00
Eggplant Seeds Php 34.00 x 50 packs = Php
3 g = Php 34.00
1700.00
Onion seed Php 36.00 x 50 packs = Php
5 g = Php 36.00
2900.00
Tomato Seeds Php 34.00 x 50 packs = Php
3 g = Php 34.00
1800.00
Cauliflower Seeds 1 g = Php 48.00 Php 48.00 x 50 packs = Php

47 | P a g e
 2900.00
Carrot Seeds Php 34.00 x 50 packs = Php
3 g = Php 34.00
2400.00
Water 100 ml = Php Php 10.00 x 50 bottles = Php
10.00 500.00
Corn Starch Glue 50 ml = Php Php 20.00 x 50 bottles = Php
20.00 1000.00

Materials
Direct Materials
Paper 20 pounds ₱ 600.00
Okra 500 pcs ₱ 430.00
Seeds 50 packs ₱ 1,700.00
Total Direct Materials ₱ 2,730.00

Indirect Materials
Blender 4 pcs ₱ 1,000.00
Tray 4 pcs ₱ 400.00
Fig Cloth 2 meter ₱ 40.00 ure 14: Production
Shredder 4 pcs ₱ 1,000.00
Cost of Molder 4 pcs ₱ 1,000.00 Enroot Packaging Co.
Drying Equipment 4 pcs ₱ 1,000.00

Php. 25.00 is
Total Indirect Materials ₱ 4,440.00
Total Materials ₱ 7,170.00 the
Labor
Direct Labor
Shredding 1 Factory Worker ₱ 386.00
Pulping & Mixing 1 Factory Worker ₱ 386.00
Sheeting 1 Factory Worker ₱ 386.00
Cutting & Folding 1 Factory Worker ₱ 386.00
Drying 1 Factory Worker ₱ 386.00
Total Direct Labor ₱ 1,930.00

Indirect Labor
Production Manager 1 Manager ₱ 600.00 ₱ 600.00
Total Labor ₱ 2,530.00

Factory Overhead
Electricity 3000 ₱ 125.00
Water 500 ₱ 20.83
Rent (Factory) 8000 ₱ 333.33
Rent (Truck) 6000 ₱ 250.00
TeleCom 1500 ₱ 62.50
Gasoline 2500 ₱ 104.17
Total Factory Overhead ₱ 895.83
48 | P a g e
Total Estimated Production Cost ₱ 10,595.83

Estimated Production Cost Per Unit ₱ 21.19

Mark Up (17.98017933%) ₱ 3.81
Selling Price per Unit ₱ 25.00
selling price per unit of the Interseed Packaging with a markup of approximately
17.98%. The cost of making each unit is PHP 21.19 which is derived from the
consideration of the direct materials and indirect materials, direct and indirect
labour and factory overhead expenses incurred by Enroot Packaging Co. in a
month; further narrowing down into days in order to calculate the cost of making
each unit.

Currently, Enroot Packaging Co. operates with an adequate number of

machinery thus; it also requires an ample number of workforces in manufacturing
the products, considering the fact that Enroot Packaging Co. is still a starting-up
business. The manufacturing of the product also operates similarly to an
assembly line wherein employees are tasked to perform a certain process.
Employees will be hired for different processes required in manufacturing the
products. These processes include the shredding process or simply the
shredding of the recycled paper, the pulping of the paper and the mixing of the
seeds as well as the adhesive, the sheeting of the pulp into paper, the drying, the
cutting and folding of the paper into the packaging, and the labelling and printing
of the packaging.

Enroot Packaging Co. is a growing company, thus it still operates in a

smaller scale than that of larger mass-producing companies. As of the moment, it
caters smaller amount of orders. With this, Enroot Packaging Co. targets to
produce 500 units of Interseed Packaging in a day since the pulping and
sheeting of the paper packaging is quite a tedious task. However, the company
has plans on expanding the business to that of a large mass-producing company
with larger manufacturing factories. In the near future, Enroot Packaging Co.
aspires to utilize technology that is more advanced in the current process of the
manufacturing of their products. The overall process of production can be done in
a shorter amount of time enabling the company to acquire the capability of
producing more units of product in a day ensuring an increased rate of
productivity within the firm.

49 | P a g e
 C. Operation Plan
1. Evaluation of Suppliers

Gauging the competency of Enroot Packaging Company’s suppliers can be

challenging; however, this process is a must to ensure the production of high-end
quality Interseed Packaging. Enroot Packaging Company will be utilizing an
evaluation form that aids a business to organize and evaluate the suppliers more
efficiently. Moreover, the Carter 10Cs model will also be used. Accordingly, this
model looks into the aspects of evaluating the supplier before being appointed. 

 Capacity – Enroot Packaging Co. must ensure the bandwidth of its

suppliers to deliver the required raw materials
 Competency – Enroot Packaging Co. must make sure that the supplier is
diligent and can complete tasks on time.
 Consistency – Suppliers must maintain its production of high-end raw
materials and the promptness of its delivery.
 Control of Process – Suppliers must be flexible and has systematic control
over their process in any case of unanticipated occurrences.
 Commitment to Quality – Suppliers must have a system established for
quality management checks.
 Cash – It is important to know whether or not the supplier is financially
independent.
 Cost – Enroot Packaging Co. must ensure that products offered by the
supplier are cost-effective
 Culture – A supplier must have a good work culture.
 Clean – Suppliers must have a clear reputation; having a legal license and
do not favor uncertified professionals.
 Communication efficiency – Suppliers must have the latest means of
communication to answer queries put forth to them.

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 2. Purchase Procedures

The following purchase procedure is followed by Enroot Packaging Company:

 Determining Purchase Budget

The company’s purchase manager prepares a purchase budget with the help of
the production planning department. It contains detailed information regarding
quantity to be purchased, quality of materials, time of purchase and the sources
of procurement. The bill of materials, a schedule of materials needed for various
jobs, is also prescribed for working out details of the purchase budget. Moreover,
this is also useful in exercising control over the utilization of materials.

 Receipt of Purchase Requisition

The purchase officer initiates action for the purchase of materials. The store-
keeper and departmental heads send requisition slips to the purchasing
department giving details of materials required by Enroot Packaging Co.
Consequently, a purchase requisition is a form used as a formal request to the
purchasing department to purchase materials. This form is prepared by the
storekeeper for regular stock materials and by the departmental head for specific
materials not stocked as regular items.

 Determining Sources of Supply

The purchase manager remains in touch with various suppliers of raw materials.
Additionally. Enroot Packaging Company must have quotations, that standards
stipulated by the client, for the purchase of specific items. Afterward, the received
raw materials are scrutinized regarding terms and conditions offered. The factors
to be considered include price, quantity, quality, time of delivery, terms of
payment, trade discount and reputation of suppliers. After looking at these
various factors, a final decision is taken about the supplier of goods.

51 | P a g e
  Placing Order

A formal purchase order is sent for the supply of goods. A purchase order is sent
on a printed form and is duly authorized by the purchase manager. This order
should contain details such as the quantity, quality, price, mode of delivery, and
terms of payment. The purchase order authorizes the vendor to dispatch goods
specified in it. It establishes a contractual relationship between the buyer and the
vendor.

 Follow-Up of Purchase Order

A purchase order normally bears a date by which the goods must be delivered. It
is in the interest of Enroot Packaging Co. that goods are received in time for
keeping the uninterrupted flow of materials. Suppliers of Enroot Packaging Co.
may be reminded of the date of delivery of goods. Hence, a follow-up of the
purchase order is necessary to receive stocks in time.

 Receipt and Inspection of Materials

The task of receiving materials is assigned to the purchasing department. After

unpacking goods, their quantity is compared and investigated by Enroot
Packaging Co. Any discrepancy in items is reported to the purchasing
department. The specifications and quality of goods are also checked at this
stage.

 Checking Invoices

Lastly, the purchasing department checks the invoices supplied by the vendor
with that of its records. The quantity, quality, price, and terms are compared with
those given in the purchase order. After making a full examination, the invoices
are sent to the accounts department for payment.

3. Storage and Inventory Control

Enroot Packaging Co. mainly utilizes two (2) types of stock which are: raw
materials that are ready for use in production, and work-in-progress materials

52 | P a g e
that are unfinished goods in production. Since the company’s plant is short of
space, Enroot Packaging Co. resorts to buying stocks in bulk, then paying a fee
to the supplier to store it, calling it off when needed. However, work-in-progress
materials are kept to protect production if there are problems down the line with
other supplies. Equally important, the stock control method used by Enroot
Packaging Co. is the minimum stock level where a minimum stock level is
identified, and re-order is done once it reached the re-order level.
Correspondingly, the control system of the stock book will be made use of which
suits small businesses with few stock items. It enables the partnership to keep a
log of stock received and stock issued.

Further, Radio Frequency Identification (RFID) is also present which allows

Enroot Packaging Co. to identify individual products and components, and to
track them throughout the supply chain from production to point-of-sale. This is to
prevent over-stocking or under-stocking the stocks required to develop the
Interseed Packaging. Comparatively, the firm must protect stocks and ensure its
security.

Radio Frequency Identification tags may be used which will sound an alarm if
they are moved. Also, placing CCTV cameras in key locations is crucial. On the
other hand, the regular change of staff controlling stock is essential to prevent
theft by staff. Access to warehouses must be restricted, and employees must be
trained about security systems and disciplinary procedures. Lastly, the health
and safety aspects of stock control should be considered. Here lie issues such as
how and where items are stored, how they are moved and who moves them.
These processes are significant for they may have hazardous materials. Also,
some goods may also deteriorate with time and some items might be very heavy
or awkward to move.

53 | P a g e
 4. Logistics and Supply Chain

1. Product
Development
Development

5. Customer 2. Purchasing
Service & Sourcing

4. Logistics &
4. Logistics & 3.Manufacturing
3.Manufacturing
Distribution
Distribution &
& Operations
Operations

Figure 15: Supply Chain Management of Enroot Packaging Co.

Presented above is the supply chain management of Enroot Packaging

Co. Supply chain management involves collaboration between firms to connect
suppliers, customers, and other partners as a means of boosting efficiency and
producing value for the end consumer. Notably, the first procedure within this
chain is the development of the Interseed Packaging. In this process, the type of
Interseed Packaging to be developed is identified to satisfy consumer demands.
Following this step is the purchasing and sourcing of raw materials to pursue the
proposed idea. Afterward, the manufacturing of the packaging will be conducted.
Then, the process of logistics will be performed before delivering these products
to company clients. Lastly, the company must pay attention to suggestions,
complaints, and feedback to ensure customer satisfaction and to further enhance
the Interseed Packaging.

54 | P a g e
 Inbound Logistics
Outbound Logistics
- Purchasing
Production Planning - Customer Service
- Warehouse
- Transport

Figure 16: Logistics Management of Enroot Packaging Co.

Logistics deals with the efficient and effective management of day-to-

day activities in producing the company’s finished goods and services. It is about
is getting the right product, to the right customer, in the right quantity, in the right
condition, at the right place, at the right time, and the right cost. As shown from
the chart above, Enroot Packaging Co. first deals with Inbound logistics, involving
the suppliers.  Purchasing and warehouse (distribution center) communicate with
suppliers and are sometimes called the “supplier facing function.” Inbound
logistics refers to the transport, storage, and delivery of goods coming into a
business. In this case, recycled paper and vegetable seeds will be brought to
Enroot Packaging Co. from its suppliers to pursue production planning which will
be the development of the Interseed Packaging. Finally, Outbound logistics will
be encountered where customer service and transport functions are properly
dealt with. In this phase, Enroot Packaging Co. communicates with customers
and performs customer-facing functions. It is here where the finished Interseed
Packaging will be delivered to its company clients and consumers.

5. Daily Operational Plan of the Business

The day-to-day operations of Enroot Packaging Co. include a focus on

developing high-end quality products to ensure customer satisfaction and to

55 | P a g e
make a positive impact on the environment. The company understands the
growing concerns of society concerning environmental issues. Thus, Enroot has
established the concept of Interseed Packaging, enabling consumers to engage
in the increasing trend of home gardening at the same time.

To this end, a big part of the company’s operational plan is to raise

awareness about the need for sustainability to lessen the detrimental effects
humankind has brought to the planet through engaging in environmental
advocacies and activities. The aspect of sustainability is not only applied in the
Interseed Packaging itself but is also practiced within the company. For instance,
the toxic chemicals emitted in the creation of the Interseed Packaging are
lessened for it utilizes biodegradable materials such as recycled paper and corn
starch glue. Sustainability is also applied in Enroot’s company culture where it is
present in every little thing an employee does such as the conservation of
electricity and the total ban of utilizing plastics within the firm.

Enroot Packaging Co. has already enjoyed great success in utilizing

this strategy, and the firm intends to fully exploit and enhance these set of tactics
shortly.

V. ORGANIZATION & HUMAN RESOURCE ASPECTS

A. Organization

56 | P a g e
 1. Structure

Marianne Mae Quitos

General Manager

Areyl Jade Beltran Christine Orozco Ivana Leonado Luzyl Marago Frankho Rodriguez
Production Department Marketing Department Technical Department Human Resources Finance Department
Department

Production Planning Marketing Technical Human Resources Chief Financial

Executive Executive Executive Department Officer

Promotions Team Leaders Recruiting Management

Production Manager Manager Accountant
Team

Developers Financial
Quality Manager Sales Persons Training Team Accountant

Internal
Testers Auditor

Maintenance

Figure 17: Organizational Structure of Enroot Packaging Co.

According to the figure above, Enroot Packaging Co. will have a Limited
Partnership of 6 members constituting a functional organizational structure that
emphasizes specialization among departments. Consequently, there will be one
(1) general partner who is Mr. Frankho Rodriguez. Accordingly, he will be held
responsible for the actions of the business and is personally liable for all the
partnership's debts and obligations.
The first department would be the production department handled by Ms. Areyl
Jade Beltran. This unit is in charge of converting raw materials and other inputs
into the company's finished product, the Interseed Packaging. The second
department will be supervised by Ms. Christine Dominique Orozco, which is the
marketing department. In essence, this sector serves as the face of Enroot
Packaging Co. It has the obligation of reaching out to prospects, customers,
investors and/or the

57 | P a g e
community while creating an overarching image that represents the company in a
positive light. The third department would be the technical department who will
use, repair, purchase equipment & machines for business operations making
jobs more efficient and cost-effective. Furthermore, this division is going to be led
by Ms. Ivana Simone Leonado. The fourth department would be the human
resources department placed in the hands of Ms. Luzyl Marie Marago, who is
responsible for hiring employees, training workers, maintaining interoffice
relationships and interpreting employment laws. Lastly, the company consists of
a finance department controlled by Mr. Frankho Rodriguez who plans, organizes,
audits, accounts for and controls its company's finances.

2. Officers and their profile

58 | P a g e
 Table 6: Officers of Enroot Packaging Co.

Name of Owners Profile

(Partners)

Address: 544 P.Burgos St. Alang

Alang Mandaue City
Contact Number: 09279553735
Email:areyljadebeltran001@gmail.co
m
Senior High School: University of
San Carlos, Cebu City, 2018-2020
Junior High School: Palompon
Institute of Technology Laboratory
Beltran, Areyl Jade High School, Leyte
Baclojan Primary Education: Ace Learning
Production Manager Center, Leyte
Activities and Awards :
 Certificate of Participation in
National Disaster Risk
Reduction and Management
Qualifications
 Ms. Beltran exhibits superb written and oral
communication skills.
 At the same time, she manifests creativity,
insightfulness and desire for innovation as she
pioneers in the creation of the Interseed Packaging.
 She has splendid team working skills, making her an
asset of the company.
 Ms. Beltran has high interpersonal skills, which makes
her competent in persuading people and clients.
 Lastly, Ms. Beltran possesses effective quantitative
and analytical thinking skills which are perfect for her
position as the Production Manager.

59 | P a g e
 Name of Owners Profile
(Partners)

Address: Carajay, Gun-ob, Lapu-Lapu

City
Contact Number: 09227779701
Email: is.leo100@gmail.com
Senior High School: University of
San Carlos, Cebu City
Junior High School: Colegio de la
Inmaculada Concepcion, Mandaue
Leonado, Ivana City, 2014-2018
Simone Macariola Primary Education: Sto. Nino
Technical Manager Mactan Montessori School, Lapu-lapu
City, 2010-2014
Activities and Awards:
Communication Skills Training (Grade
10, S.Y. 2018)
 Leadership Formation Course
(Grade 10, A.Y. 2018)
 Youth Volunteer Orientation
Course (Grade 10, A.Y. 2018)
 Basic Leadership Training
Course (Grade 9, A. Y. 2017)
 Academic Excellence (Grade 6,
A.Y.2014)

Qualifications
 Ms. Leonado has excellent managerial and technical skills
that are honed as she handles their family business during
school breaks.
 Furthermore, she is a critical decision maker that easily
finds alternative solutions to problems.
 Ms. Leonado congruously delegates tasks to members of
the team which is an important character for the position.
 Henceforth, she is sharp-eyed in the company’s current
state and proposes conventional actions to improve the
observed problems

60 | P a g e
 Name of Owners Profile
(Partners)

Address: Pag-utlan, Maslog, Danao

City, Cebu
Contact Number: 09565001410
Email: luzylmarie@gmail.com
Senior High School: University of
San Carlos, Cebu City, 2018-2020
Junior High School: Compostela
Science and Technology Highschool,
Marago, Luzyl Marie Cebu, 2014-2018
Tulilis Primary Education: Lyceum de San
Human Resources Sebastian, Cebu, 2006-2013
Manager Activities and Awards:
 Director’s List Awardee (Grade
11, Second Semester A.Y.
2018-2019)
 Class Representative (Grade
11, First Semester A.Y. 2018-
2019)
 With High Honors (Grade 10,
A.Y. 2017-2018)
 2nd Placer, Areal Level,
Radiobroadcasting in Filipino
(Grade 10, A.Y. 2017-2018)
 Perfect Scorer of Youth
Chinese Test, YCT 1 (Grade 9,
A.Y. 2016-2017)

Qualifications
 Ms. Marago possesses outstanding verbal and nonverbal
communication skills that were sharpened as she became
the Class Representative of their block last academic year.
 Furthermore, she smoothly facilitates group discussions.
 Ms. Marago displays strong time management skills and is
efficient, makimg her competent for the position.
 She has superb ability to negotiate with both sides in an
agreement.
 Finally, she is eminent in multi-tasking which is an
essential characteristic in this position.

61 | P a g e
 Name of Owners Profile
(Partners)

Address: Laray, San Roque, Talisay City,

Cebu
Contact Numbers: 09668969190/
09988102733
Email:christinedominique.orozco.cdo@g
mail.com
Senior High School: University of San
Carlos, Cebu City, 2018-2020
Orozco, Christine Junior High School: Cebu Normal
Dominique Dawa University- Integrated Laboratory School
Marketing and Primary Education: Sacred Heart
Sales Manager School- Hijas de Jesus/Asian College of
Technology
Activities and Awards:
 ACT: Consistent Honor Student
 Best in Oral Communication
 USC Dean’s Lister (2nd Semester)
 USC Debate Society South School
Representative

Qualifications
 Ms. Orozco has sound expertise in sales with excellent
written and verbal communication skills.
 She possesses strong presentation skills, complemented
with a superb ability of persuasion that was honed as she
regularly participates in the university’s debate club.
 Also, Ms. Orozco shows strong networking and negotiating
skills that are crucial traits for a Marketing and Sales
Manager.
 She exhibits initiative and enthusiasm in dealing with
clients and potential investors.
 Equally important, she works calmly under pressure which
enables her to provide quality work despite the busy
environment of her department.

62 | P a g e
 Name of Owners Profile
(Partners)

Address: Carajay, Gun-ob, Lapu-Lapu

City
Contact Number: 09171105714
Email:mariannemaequitos@gmail.com
Senior High School: University of
San Carlos, Cebu City, 2018-2020
Junior High School: United
International Private School, UAE,
2013-2018
Quitos, Marianne Mae Primary Education: Colegio de la
Melecio Inmaculada Concepcion, Mandaue
General Manager City, 2006-2012
Activities and Awards:
 Director’s List Awardee (Grade
11, First Semester A.Y. 2018-
2019)
 Class Secretary (Grade 11,
First Semester A.Y. 2018-2019)
 With High Honors (Grade 10,
A.Y. 2017-2018)
 2nd Lt., Military Police (Grade
10, A.Y. 2017-2018)

Qualifications

 Ms. Quitos manifests strong leadership qualities, making

her a consistent group leader since Junior High School.
 She is highly organized and exhibits strong work ethic.
 Moreover, she displays meticulous attention to detail
producing quality work.
 Finally, she displays excellent communication skills and
has good knowledge of different business functions
making her qualified for the position.

63 | P a g e
 Name of Owners Profile
(Partners)

Address: San Isidro, Talisay City,

Cebu
Contact Number: 09774542417
Email: frnkhrdrgz@gmail.com
Senior High School: University of
San Carlos,Cebu City,2018-2020
Junior High School: First Chinese
Royal Academy, Talisay City
Rodriguez, Frankho Primary Education: First Chinese
Chan Royal Academy, Talisay City
Finance Manager Activities and Awards:
 With Highest Honor (Grade 10,
A.Y 2017 – 2018
 Club Mega (Club Growth
Officer, 2019-2020)
 Boy Scouts of the Philippines
Platoon Leader (A.Y 2017-
2018)

Qualifications

 Mr. Rodriguez maintains strong prospecting-account

management and closing skills that were further
developed as he handles their family business.
 He exhibits characteristics such as competitiveness and
accountability that are key characteristics for this position.
 In addition, he quickly develops relationships with clients,
developing a prosperous relationship with them.
 Most importantly, Mr. Rodriguez possesses a strong sense
of tactfulness and transparency in handling the company’s
financial accounts.

64 | P a g e
 4. Duties and Responsibilities

General Manager of Enroot Packaging Company: Ms. Marianne Mae M. Quitos

 She oversees daily business operations and is held responsible for

developing and implementing growth strategies that will be utilized by the
firm
 Ms. Quitos allocates budget resources and manages operational costs,
ensuring an improved administration process.
 She plays a big role in monitoring and motivating the staff, and also takes
part in monitoring the financial activities of the company.
 Equally important, Ms. Quitos maintains relationships with clients and
ascertains good customer service.

Product Development Manager of Enroot Packaging Company: Ms. Areyl Jade

B. Beltran

 She plans and organizes production schedules of the Interseed

Packaging.
 Ms. Beltran assesses project and resource requirements while estimating
and negotiating budgets and timescales with clients.
 In the same manner, Ms. Beltran secures that health and safety
regulations are met in the workforce for the production team to produce
high-quality products to further satisfy the market.
 She selects, orders, and purchases the raw materials needed and
organizes the routine maintenance of the production equipment of the
company.

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Technical Manager of Enroot Packaging Company: Ms. Ivana Simone M.
Leonado

 She provides guidance for all members of the company when it comes to
designing, implementing, and updating software.
 Ms. Leonado constantly evaluates company platforms and networks,
searching for ways to improve them
 She constantly evaluates company platforms and networks and search for
ways to improve them.
 Accordingly, Ms. Leonado is responsible for addressing faults within any
company system and making sure those faults are fixed.
 Moreover, she is the communication source between clients and upper
management of the company.
 She conducts employee reviews, handles employee complaints, and
divides the workload among members of the team.

Human Resources Manager of Enroot Packaging Company: Ms. Luzyl Marie T.

Marago

 She guides and manages the overall provision of Human Resources

services, policies, and programs for the company.
 Ms. Marago determines the duties and job responsibilities that are
required by the senior management team to meet the needs of their
workforce management.
 Her job includes recruiting, staffing, organizational department planning,
policy development, employee relations, and company communication.

Marketing and Sales Manager of Enroot Packaging Company: Ms. Christine

Dominique D. Orozco

 Ms. Orozco formulates strategies and plans to win new clients or

customers through methods such as cold-calling, visits to businesses,
emails and other direct marketing campaigns.

66 | P a g e
  She gets to decide the terms of discounts and special pricing plans and
tracks preferences of customers and clients to focus sales efforts.
 Further, she analyzes sales statistics such as volume, gross revenues,
sales expenses and demographics of purchasers.
 She is also held responsible for resolving complaints and disputes by
customers and clients.

Finance Manager of Enroot Packaging Company: Mr. Frankho C. Rodriguez

 He is responsible for the financial processes, and reports on the economic

position and performance of the company.
 Mr. Rodriguez produces reports on the financial position, performance,
changes in equity, cash flows, and comprehensive income.
 He advises on the financial decisions in the company.
 He dirtects operating, investing and financial activities.
 Mr. Rodriguez makes financial reports and forecasts that benefit the
company in the future.

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 4. Laws and Policies of the Organization

Code of Business Conduct and Ethics

Ethical behavior is an essential part of being one with Enroot Packaging Co.
Thus, the company has formulated this Code of Conduct to outline the principles,
policies, and laws that guide everyone’s actions in the company. The purpose of
the Code is to describe principles of business conduct and to provide counsel in
ethical decision making. As a matter of fact, it protects an individual’s personal
integrity and safety at all times, since it provides ways on how to respond to
unethical actions. Enroot Packaging Co. needs and expects every contractor
(suppliers), employee, manager, and partner to be accountable for their work and
behavior and to support the values, principles and standards upon which the
reputation of the company rests. Explicitly, it is the duty of these individuals to
comply with these set of guidelines to continuously uphold the vision, mission,
and objectives of the company, bringing home success.

Our Core Values

With Enroot Packaging Co., everything boils down to P. A. S. S. I. O. N.

P – Prowess

A – Accountability

S – Social Responsibility

S – Sustainability

I – Integrity

O – Obliging

N – Novelty

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Prowess

We provide quality products to our customers in a professional, accurate and

timely manner that will exceed their expectations.

 Product Manufacturing and Distribution

Producing exceptional packaging for customers is the focal point of our

business. Our customers deserve the highest quality seed-embedded
packaging to pursue their growing interest of sustainability. Therefore, our
products must be made with scrutiny and care to satisfy the demands of our
customers. To avoid the production of defective products, manufacturers
must ensure that the Interseed packaging has completed the processes it
must undertake to fully satisfy its purpose. Further, equipment, machineries,
and delivery trucks must be inspected from time to time to assure excellent
mass production and distribution. Any complications found must be resolved
as soon as possible. Through these actions, customers may exhibit the sense
of loyalty in utilizing the Interseed packaging. If the production of quality
products is maintained, this may also bring more potential users of the
product.

 Conduct with Customers

Provide our customers with value and deal with them fairly. Act with integrity
and do everything possible to be of great service to our customers.
Accordingly, complaints must be taken seriously and must be addressed
swiftly as possible. Moreover, Enroot Packaging Co. also values the
customer’s comments and suggestions. Hence, we must learn how to listen
and take note of their opinions to further improve the performance of the
company. Lastly and most importantly, do not make promises that you or the
company cannot keep.

Accountability

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We are personally responsible for doing our job to the best of our ability. We act
with initiative, learn from our experiences, share our knowledge, and strive to
continuously improve our performance.

 Maintaining Accurate Records

Guided by our rigorous internal accounting controls, we record all payments,

fund transfers, assets, and financial activities completely, honestly, and
accurately. We safeguard all books, records, accounts, and financial
statements and store and retain them in accordance with our policies and the
law. For this reason, one must obtain proper authorization for completing
certain transactions. Moreover, errors must be corrected and reported
immediately. Refrain from maintaining “off the books” funds or assets unless
permitted by law, and respond to internal inquiries about our financial records,
promptly.

 Protecting Confidential Information

There will be instances where we will have to disclose non-public information

with our suppliers, employees, and business partners in the course of the
business. We comply with all laws regarding sharing public information and
we do not disclose information that could harm business performance, such
as marketing plans, sales figures, customer and supplier lists, new products,
and financial data. In general, one must not share or discuss confidential
information with anyone unless it is for the purpose of performing your job or
the person has been authorized to have the information to fulfill a business
need.

 Safeguarding Company Assets

Physical Property

We use buildings, vehicles, equipment, machinery, supplies, and other

physical assets for conducting business. Do not use them improperly or in a
wasteful, careless, or unsafe manner. Protect them from damage, and, if you
70 | P a g e
 notice or cause any damage to the company’s properties, please report it
immediately to your supervisor.

Information Technology

We provide information technology (IT) tools to help you do your job. This
includes electronic devices and access to the LAN/WAN, Internet, email, and
our IT Enterprise Systems. With this reason, we expect each and every one in
Enroot Packaging Co. to follow our IT usage policies to ensure the privacy
and security of all electronic communications. By all means, everything you
send or receive on our systems is company property, and we have the right to
monitor all communications, except as prohibited by law. Never use the
company internet to disclose nonpublic information that could violate insider
trading laws. Most importantly, do not post anything that is harassing,
intimidating, malicious, or that could contribute to a hostile work environment
on the basis of race, sex, disability, religious, or any other status protected by
law or company policy.

System Accounts

We protect our IT systems and are careful not to download non-business

software or other information that could introduce viruses into our systems.
Change your passwords regularly to maintain the security of our accounts
and never share your passwords with others.

Email, messaging, file storage and using social media

Our emails and electronic messages are reserved for business purposes
during working time. Social media includes anything we post online – at
websites such as Facebook, Instagram, and Twitter. Social media sites are
public and can be viewed by anyone. Hence, one must identify any posts you

71 | P a g e
 make about Enroot Packaging Co. as coming from you personally. Before you
post on social media, be sure you know what is permissible and what is not.
Use good judgment and take responsibility for what you say online. For
instance, you must be careful not to post anything during working hours that
violates our policies and those that convey maliciously false or confidential
information about the company. Further, do not use company email or
internet sites to promote religious causes, political agenda or commercial
enterprises. Never share personal or confidential data and certainly not send
obscene or harassing messages.

Social Responsibility

The company aims to be open, accountable and responsive to societal concerns.

We believe that business, social, and environmental performances are mutually
dependent. Enroot Packaging Co. ensures that an individual’s actions comply
with and are within the meaning and intent of all applicable laws and regulations.
Their actions must be free from suspicion and criticism and have no unfavorable
effects on society.

 Ensuring Product Safety

We are committed to the highest level of quality in our products and stand
behind our brands. We comply with safety standards and minimize or
eliminate known risks. Never “cut corners” to save time or money when it
would result in an inferior product.

 Workplace Safety

Health and Safety

Follow safe handling and operating procedures when using equipment and
materials required for your job. If you observe an unsafe condition, potential
hazard, or dangerous practice, address it with your coworker or supervisor, as
applicable.

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 Safety absolutes

Keep fully informed of current safety requirements and comply with them.
Observe our zero-tolerance policy for the following “safety absolutes”:

 Neglecting to lockout equipment in violation of lockout/tagout

procedures
 Neglecting to follow confined space permit procedures when entering
a defined confined space
 Bypassing, removing, or disabling a safety device
 Reaching into moving equipment in violation of safe operating
procedures
 Operating a powered industrial vehicle in a reckless manner
 Placing yourself or another employee in serious danger

Drugs and Alcohol

The misuse and abuse of drugs and alcohol can impair judgment, create
health risks, and endanger yourself and others. While at work or conducting
business operations, never use, sell, or distribute illegal substances. Instead,
one must use prescription medications responsibly and report any usage of
prescriptions that may impair your ability to perform your job duties to your
supervisor. Equally important, comply with all laws that apply to alcohol and
drug use. Lastly, consume alcohol in moderation when served at company
events.

Violence

Our words and actions should not present a danger to anyone. We strictly
prohibit workplace violence, threats, and other behaviors that disrupt the
workplace or put employees at risk. Such behaviors include physical acts of
violence against a person or their property, verbal or written threats, possession

73 | P a g e
of firearm or other weapon in violation of our policies and jokes or comments
about violent events.

Protecting your privacy

We collect and store personal data related to your employment in accordance

with applicable data protection laws and regulations. This may include
compensation, medical, and benefit data. We do not release personal information
from your personnel file except to verify employment or for legitimate business or
legal reasons.

Human and Workplace Rights

We are committed to fair labor practices. We employ a labor force with a

minimum age of 18 and expect the same of our suppliers and business partners.
We do not support work performed by forced labor or convicts or prisoners,
except those on parole, supervised release, or probation.

VI. FINANCIAL ASPECT

ENROOT PACKAGING CO.

SALES BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

2020 2021 2022 TOTAL

Budgeted Sales in Units 120,000 132,000 145,200 397,200
Selling Price ₱ 25.00 ₱ 25.00 ₱ 25.00 ₱ 25.00
Budgeted Sales in Peso ₱ 3,000,000.00 ₱ 3,300,000.00 ₱ 3,630,000.00 ₱ 9,930,000.00

Assumptions:
• At Enroot Packaging Co. the selling price per unit is Php
Budgeted
25.00. sales for the next 3 years are:
• Budgeted sales2019for the next 3 years are: 2019 120,000
120,000 2020 132,000
2020 2021
132,000 171,600
2021 171,600
The selling price is PHP 25.00 per unit.

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 ENROOT PACKAGING CO.
EXPECTED CASH COLLECTION
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

2020 2021 2022 TOTAL

Accounts Receivable 1/1 -
2019 Sales
80% x 3,000,000 2,400,000.00 2,400,000.00
15% x 3,000,000 450,000.00 450,000.00
2020 Sales
80% x 3,300,000 2,640,000.00 2,640,000.00
15% x 3,300,000 495,000.00 495,000.00
2021 Sales
80% 3,630,000 2,904,000.00 2,904,000.00
Total Cash Collection 2,400,000.00 3,090,000.00 3,399,000.00 8,889,000.00

Accounts Receivable, end 600,000 660,000 726,000

Assumptions:

All sales are on account.

Enroot Packaging Co.'s collection pattern is:

80% collected in the year of sale
15% collected in the year following sale
5% uncollectible

ENROOT PACKAGING CO.

PRODUCTION BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

2020 2021 2022 TOTAL

Budgeted Sales in Units 120,000 132,000 145,200 397,200
Add: Desired Ending Inventory 13,200 14,520 15,972 15,972
Total Goods Available for Sale 133,200 146,520 161,172 413,172
Less: Beginning Inventory - 13,200 14,520 -
Budgeted Production in Units 133,200 133,320 146,652 413,172

Finished Goods Inventory, end 262,965 289,262 318,188

Assumptions:

The management of Enroot Packaging Co. wants ending inventory to be equal to 10% of the following year's budgeted sales in units.

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PAPER ENROOT PACKAGING CO.
DIRECT MATERIALS BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

PAPER 2020 2021 2022 TOTAL

Budgeted Production in Units 133,200 133,320 146,652 413,172 126179
Materials Per Unit (Pounds) 4 4 4 4 4.00
Total Material Needs 532,800 533,280 586,608 1,652,688 504716
Add: Materials Inventory Ending 53,328 58,661 50,472 50,472
Total Materials Available For Use 586,128 591,941 637,080 1,703,160
Less: Materials Inventory Beginning 53,280 53,328 58,661 53,280
Materials Purchases in Pounds 532,848 538,613 578,419 1,649,880
Materials Cost Per Unit 4 4 4 4
Materials Purchases in Peso ₱ 2,131,392 ₱ 2,154,451 ₱ 2,313,675 ₱ 6,675,902.99

Raw Materials Inventory, end 213,312 234,643 201,886

Note: (Please enumerate your assumptions below)

At Enroot Company 4 pounds of paper are required per unit of the product.
The Materials Cost per Unit is Php 4.00
On 2018, the Material Inventory Ending was 53,280.
Ending inventory 5% next period

OKRA ENROOT PACKAGING CO.

DIRECT MATERIALS BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

OKRA 2020 2021 2022 TOTAL

Budgeted Production in Units 133,200 133,320 146,652 413,172.00 126179
Materials Per Unit (Pounds) 0.04 0.04 0.04 0.04 0.04
Total Material Needs 5,286 5,291 5,820 16,395.99 5007.186
Add: Materials Inventory Ending 529 582 501 500.72
Total Materials Available For Use 5,815 5,873 6,320 16,896.71
Less: Materials Inventory Beginning 529 529 582 528.58 At Enroot Company, 0.04 Pounds
Materials Purchases in Pounds 5,286.28 5,343.47 5,738.38 16,368.13 of Okra are required per unit of
product.
Materials Cost Per Unit 0.04 0.04 0.04 0.04
Materials Purchases in Peso 210 212 228 ₱ 649.54
Materials Inventory Ending for
2018, is 529.

Raw Materials Inventory, end 21 23 20 The Material Cost per unit is at

Php 0.04.

SEEDS ENROOT PACKAGING CO.

DIRECT MATERIALS BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

SEEDS 2020 2021 2022 TOTAL

Budgeted Production in Units 133,200 133,320 146,652 413,172.00 126179
Materials Per Unit (Pounds) 0.01 0.01 0.01 0.01 0.01
Total Material Needs 881 882 970 2,732.67 834.5315
Add: Materials Inventory Ending 88 97 83 83.45
Total Materials Available For Use 969 979 1,053 2,816.12
At Enroot Company, 0.01
Less: Materials Inventory Beginning 88 88 97 88.10 pounds of Okra is required
Materials Purchases in Pounds 881.05 890.58 956.40 2,728.02 per unit of product.
Materials Cost Per Unit 0.01 0.01 0.01 0.01
Materials Purchases in Peso 6 6 6 ₱ 18.04 The Material Cost Per Unit is
at Php 0.01

Raw Materials Inventory, end 1 1 1

TOTAL ₱ 213,334 ₱ 234,667 ₱ 201,907

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 ENROOT PACKAGING CO.
EXPECTED CASH DISBURSEMENT
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

2020 2021 2022 TOTAL

Accounts Payable 1/1 - -
Year 1 Purchases
50% x 2,131,392 ₱ 1,065,696.00 ₱ 1,065,696.00
50% x 2,131,392 ₱ 1,065,696.00 1,065,696.00
Year 2 Purchases
50% x 2,154,451 ₱ 1,077,225.60 ₱ 1,077,225.60
50% x 2,154,451 ₱ 1,077,225.60 ₱ 1,077,225.60
Year 3 Purchases
50% x 2,313,675 ₱ 1,156,837.60 ₱ 1,156,837.60
Total Cash Disbursement ₱ 1,065,696.00 ₱ 2,142,921.60 ₱ 2,234,063.20 ₱ 5,442,680.80

Accounts Payable, end ₱ 1,065,696.00 ₱ 1,077,225.60 1,156,838

2,131,392.00 2,154,451.00 2,313,675.00

Assumptions:
50% paid during first year
50%paid during next year

ENROOT PACKAGING CO.

MANUFACTURING OVERHEAD BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

2020 2021 2022 TOTAL

Budgeted Direct Labor Hours 1,332 1,333 1,467 4,132
Variable Manufacturing Overhead Rate 48.25 48.25 48.25 48.25
Variable Manufacturing Overhead Costs 64,269 64,327 70,760 199,355
Add: Fixed Manufacturing Overhead Costs 315,023 415,023 415,023 1,145,070
Total Manufacturing Overhead Costs 379,292 479,350 485,783 1,344,425
Less: Non-cash Costs 100,000 200,000 200,000 500,000
Cash Disbursement for Manufacturing Overhead 279,292 279,350 285,783 844,425

Predetermined Overhead Rate 325.39

Assumptions:
At Enroot, manufacturing overhead is applied to units of product on the babsis of direct labor Hours
The Variable manufacturing overhead rate is Php 48.25 per direct labor hour.
Fixed manufacturing overhead for the first year is Php 315, 023, and Php 415, 023 for the following years, which
includes Php 100,000 noncash costs (primarily depreciation of plant assets).
factory overhead per anum: 215,023.2

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 ENROOT PACKAGING CO.
DIRECT LABOR BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

2020 2021 2022 TOTAL

Budgeted Production in Units 133200 133320 146652 413172
Direct Labor Hours Per Unit 0.01 0.01 0.01 0.01
Budgeted Direct Labor Hours 1,332.00 1,333.20 1,466.52 4,131.72
Direct Labor Cost Per Hour 48.25 48.25 48.25 48.25
Budgeted Direct Labor Cost 64,269.00 64,326.90 70,759.59 199,355.49

1 product = 1 min
386 minimum wage per day
At Enroot, eeach unit of product requires 0.01
hours (1 minute) of direct labor.

The Company has no layoff policy so the

employees will be paid for 40 hrs of work each
week.

Workers are paid at the rate of Php 48.25 per

hour regardless of hours worked.

For the next three years, the direct labor

workfoce will be paid for a minimum of 1,500 hrs
per month.

ENROOT PACKAGING CO.

ENDING FINISHED GOODS INVENTORY
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31 2021

Quantity Cost Total

Production Cost Per Unit:
Direct Materials 4.00 4.05 16.19
Direct Labor 0.01 48.25 0.48
Manufacturing Overhead 0.01 325.39 3.25
Total 19.92

Budgeted Finished Goods Inventory:

Ending Inventory in Units 15,972.00
Production Cost Per Unit 19.9215997
Ending Finished Goods Inventory 318187.7904

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 ENROOT PACKAGING CO.
SELLING AND ADMINISTRATIVE EXPENSES BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31

2020 2021 2022 TOTAL

Budgeted Sales in Units 120,000 132,000 145,200 397,200
Variable Selling and Administrative Expenses Rate 2.15 2.15 2.15 2.15
Variable Selling and Administrative Expenses 258,000 283,800 312,180 853,980
Add: Fixed Selling and Administrative Expenses 144,000 144,000 144,000 432,000
Total Selling and Adminstrative Expenses 402,000 427,800 456,180 1,285,980
Less: Non-cash Expenses 3,500 3,000 2,500 9,000
Cash for Selling and Adminstrative Expenses 398,500 424,800 453,680 1,276,980

VSA = factory overhead / estimated units produced per month

144k FSA admin expense labor of manager per anum
depreciation of equipment 125 per anum, 5 equipments

At Enroot, the selling and administrative expense

budget is divided into variable and fixed components.

The variable selling and administartive expenses are

Php 2.15 per unit sold.

Fixed selling and administartive expenses are Php

144,000 per year.

The fixed selling and administrative expenses include

Php 3,500 -primarilt depreciation- that are not cash
outflows of the current year.

ENROOT PACKAGING CO.

CASH BUDGET
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31

2020 2021 2022 TOTAL

Beginning Cash Balance 500,000 734,583 213,184 500,000
Add: Cash Collections 2,400,000 3,090,000 3,399,000 8,889,000
Total Cash Available 2,900,000 3,824,583 3,612,184 9,389,000
Less: Cash Disbursements
Direct Materials 1,065,696 2,142,922 2,234,063 5,442,681
Direct Labor 64,269 64,327 70,760 199,355
Manufacturing Overhead 279,292 279,350 285,783 844,425
Selling and Administrative Expenses 398,500 424,800 453,680 1,276,980
Equipment Purchases - 1,200,000 - 1,200,000
Other Cash Disbursements 357,660 - - 357,660
Total Cash Disbursements 2,165,417 4,111,399 3,044,286 9,321,101
Excess/ (Deficiency) 734,583 - 286,816 567,899 67,899
Financing:
Borrowing - 500,000 - 500,000
Repayments - - - -
Interests - - - -
Total Financing - 500,000 - 500,000
Ending Cash Balance 734,583 213,184 567,899 567,899

Assume the ff. info. For Enroot: Maintains a minimum cash balance of Php 200,000

Borrowed Php 500,00 on the second year with 5%

500k borrow w/ 5%interest per anum interest per anum.

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 ENROOT PACKAGING CO.
BUDGETED INCOME STATEMENT
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31

2020 2021 2022 TOTAL

Sales 3,000,000 3,300,000 3,630,000 9,930,000
Less: Cost of Goods Sold 2,390,592 2,629,651 2,892,616 7,912,859
Gross Profit 609,408 670,349 737,384 2,017,141
Less: Selling and Aministrative Expenses 402,000 427,800 456,180 1,285,980
Operating Income 207,408 242,549 281,204 731,161
Less: Interest Expense - - - -
Net income before tax 207,408 242,549 281,204 731,161
Less: Income Tax (30%) 62,222 72,765 84,361 219,348
Net income after tax 145,186 169,784 196,843 511,812

With interest expense from the cash budget, Enroot

can prepare the budgeted income statement.

The net income atfer tax includes the expense of

Income Tax of 30%.

ENROOT PACKAGING CO.

BUDGETED STATEMENT OF CHANGES IN OWNER'S EQUITY
FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31

2020 2021 2022 TOTAL

Partner's Equity - 1/1 3,000,000 3,145,186 3,719,887 3,000,000
Add: Net Income/ (Loss) 145,186 169,784 196,843 511,812
Additional Investments 500,000 500,000
Less: Partner's Equity, Withdrawal 95,083 59,574 154,657
Partner's Equity, Capital - 12/31 3,145,186 3,719,887 3,857,156 3,857,156

The Partners' Equity beginning is at Php 3,000,000.

In the second year, an Additional Investment of Php 500,000

and a withdrawal of Php 95,083 was recognized.

In the third year, withdrawal of Php 59,574 was recorded.

The Partners' Equity at the End of the Quarter Php

3,857,156.

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 ENROOT PACKAGING CO.
BUDGETED BALANCE SHEET
DECEMBER 31

Assets

2020 2021 2022

Cash 734,583 213,184 567,899
Accounts Receivable 600,000 660,000 726,000 ok
Raw Materials Inventory 213,334 234,667 201,907 ok
Finished Goods Inventory 262,965 289,262 318,188 ok
Equipment, NBV 2,400,000 3,400,000 3,200,000 ok
Total Assets 4,210,882 4,797,113 5,013,993

Liabilities and Owner's Equity

Accounts Payable 1,065,696 1,077,226 1,156,838 ok

Partner's Equity, Capital 3,145,186 3,719,887 3,857,156
Total Liabilities and Owner's Equity 4,210,882 4,797,113 5,013,993

Difference - - -

Assumptions:
Enroot has equipment of Php 2,500,000 in the first year and bought Php 1,200,000 in the second year.

EQUIPMENT 2.5M 2,400,000 3,400,000 3,200,000

2ND YEAR ADDITIONAL PURCHASE 1.2M
DEPRECIATION 100K PER YEAR

503,166.41 534,436.19 528,887.52

VII. MARKETING PLAN

A. Segmentation Strategy
Table 7: Segmentation Strategy of Enroot Packaging Co.
Geographic Demographic
Country Philippines Millennials (23-38
Age group/s
years old)
Province/ Cebu
Income Php8,000-15,000
s
City Cebu City Family Size 3-5
Vicinity Cebu All millennials with
Occupation
jobs and students
Psychographic Behavioral
Openness to experience, Purchasing Green-buying behavior
Traits Open-minded, Supports the behavior
environmental movement
Benefits Contentment,
Beliefs Environmentalism
Sought Environmental Aid
Values Sustainability, User Status Environmentally-
Responsibility, Unity, conscious user

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 Accountability
Attitudes Responsible, Sustainable
Lifestyle Green Lifestyle

Geographic

This section explains the locale where the company’s potential customers
reside. By the same token, Enroot Packaging Co. is located within Cebu
Province, particularly Naga City, Cebu. Further, this must be done to target the
varying wants and needs of customers in different locations. With the information
gathered, the firm may modify and improve the features of Interseed Packaging
to satisfy the demands of these markets. Given the fact that Enroot Packaging
Co. is still a start-up company, performing this analysis also allows the
entrepreneurs to be more cost-effective. These findings will allow the company to
focus its marketing efforts on its defined area of interest, specifically Cebu City,
therefore avoiding inefficient spending.

Demographic

This portion describes the potential customers of Enroot Packaging

Company, which are millennials, aged 23 to 38 years old as of the moment.
Entrepreneurs have chosen this age bracket since this generation has been the
driver of change ever since it was defined as the definitive generation to embrace
technological change in a big way. Millennials have employed the privilege of
seeing the rise of the Internet, and quick global communication trends. Hence,
this makes them look at the world differently than most people. It is in this age
group where full supporters of environmental progress, prioritizing the welfare of
nature in front of their own needs and desires are dominant. These individuals
are estimated to have an income range of P8000 – P15 000, for the reason that
most of them are either fresh graduates or are still students. Moreover, they have
a family size range of 3 – 5 persons since most of them are either living with their
own families or are in the first few stages of establishing a new family.

Psychographic

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 This segment explains the different personality traits, values, attitudes,
interests, and lifestyles of the company’s potential consumers. With the table
shown above, it is evident that the target customers of Enroot Packaging Co. are
environmentally conscious, strongly believing in environmentalism, a philosophy
regarding concerns for environmental protection and improvement of the
world. Environmentalists are focused on creating a balance between humans
and nature. They believe that as an entire population, the human race can work
together to improve the world. 

Behavioral

In accordance with the psychographic attributes of Enroot Packaging Co.’s

potential customers, they are expected to have a green-buying behavior where
an individual purchases products that are environmentally beneficial. After doing
so, these individuals will develop a sense of fulfillment and contentment, being
able to contribute to the planet’s welfare. Ideally, potential users of the Interseed
Packaging must be environmentally-conscious for them to appreciate and utilize
properly the product offered by the company.

B. Targeting Strategy
Table 8: Targeting Strategy of Enroot Packaging Co.
BUSINESS
TO
BUSINESS

PRODUCT DESCRIPTION
MARKET

1. Food Recyclable Food Containers, Easy to dispose, Branding,

Companies Exclusive to

Cebu Province

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2. Manufacturing Biodegradable Box Containers, Product Safety, Free from
Companies
Contamination, exclusive to Cebu Province
Enroot Packaging Company pursues to target two main target markets which
are of business to business in nature namely the Food Companies, and
Manufacturing Businesses. The company has chosen these two because they
are likely to generate higher profits with the business exchange with future sales
and investments. Enroot Packaging Company used the Differentiated Market
Targeting to cater to the selected segments to achieve higher-grossing profits
and benefits and as well as cater to the needs and specifications of the target
market. The company also uses a Combined Target Market Approach to put
more segments with similar characteristics and use the same strategy on them.

Food Manufacturing
Companies Companies

Logo Bulk
Discount Discount

Figure 18: Target

Table 9: Buyer Personas of Enroot Packaging Co.

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Segments Food Manufacturing Transport or Express
Companies Companies Companies
Consumer:

Name: WantFood, Inc. Factories’R Us Expressivedelivery,IN

Corporation C.
Demographics
Country: Philippines Philippines Philippines
Type of Enterprise: SMEs- Large SMEs- Large SMEs- Large Scale
Scale Scale
Number of 50+ 1000+ 10000+
Employees:
Income: Middle to Middle to Middle to Upper-
Upper- Upper-Upper Upper
Upper
Serviceable Comprise Comprises Comprises 25%
Market: s of 25% 50% of the of the
of the serviceable serviceable
serviceabl market market
e market
Approximate 16,000 5,000 people 10,000 people
Number: people
Psychograph
ic
Processes: Food and Product Delivery and
Service Manufacturin Express
Process g

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Interest: Good High Quality Durable
Quality for products, Packaging to
Food and durable Sustain weather
Profit, packaging and travel
Cheap for products,
but Good Profits
Materials
Other Details: Must be safe Must be well Must test the popularity
and cheap known and trendiness of
material Company Packaging
before
partnering
Nature of Packaging for Packaging for Packaging for Item Safety
Purchase: Food Safety Eyecatching
and Product
Safety
Brand Loyalty: Loyal to Loyal to Loyal to frequently
frequently frequently purchased brands
purchased purchased
brands brands
Usage Level: High High High
Distribution Email or Email Email
Channels Contact
Used: Number
Reaction to Needs to be Fairly Not that much coercion
Marketing swayed persuaded
Efforts:
The Buyer Personas

Food Companies

Food Companies are likely to purchase from Enroot Packaging Company to

satisfy the need for protecting their food products during transport, delivery, or in
actual service. These companies range from SMEs or Small- Medium

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Enterprises to larger and well-known Corporations. Interested in giving the
highest possible quality food service to their customers they need to keep in mind
the price of the raw materials and components. Nevertheless, they need their
products to be contaminant free. Enroot will have to persuade these companies
to do business with them by using discounts and corporate responsibility to keep
their food and environment safe.

Manufacturing Companies

Manufacturing companies will have to depend on the packaging covers to

advertise the goods. The company will like their partnership with Enroot to be a
long-lasting one, providing the covers and protection for their products on the
shelf and in deliveries nationwide. Bulk discounts are advisable to help with the
cost of production. Enroot will benefit largely because of the major stocks and
quantities of packaging that have to be made per product. They are frequent
users of packaging so both of the consumers and the company will be satisfied
with the price.

Transport, Express, or Courier Companies

These Companies need to protect their products for them to safely carry or
transport products with no damage. In cases like fragile products, they would
need durable packaging to withstand any weather or type of transport. These
would be happy to know that only a small quantity of their cash will go to
packaging since there will be Logo and Bulk discounts to lessen the burden of
payments. Their consumers will also be satisfied that the packaging can be
thrown right away after use.

About the Buyer Personas

Buyer personas above were chosen because they are the major companies that
Enroot Packaging Company will most likely deal with. They are the primary
partners or users of the product. The business to business transaction will likely

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go smoothly because the company has identified the traits and interests of each
of its possible markets.

C. Positioning Strategy

In marketing, positioning has come to mean the process by which

marketers try to create an image or identity in the minds of their target market for
their product, brand, or organization. Brand positioning is at the heart of
marketing strategy (Chand 2019). Thus, in simple words brand positioning refers
to the position or image which a brand enjoys in the minds of present and
potential customers. However, there are several major categories of positioning
approaches, which will help us understand the range of positioning options
available.

Enroot Packaging has decided to go with the ‘Positioning by product

attributes and benefits’ after carefully evaluating the different options available.
This positioning originally focuses on the characteristics of the product or
customer (Positioning Strategy, 2012). Considering the Interseed Packaging’s
unique product feature of being eco-friendly and having embedded seeds into the
packaging, this characteristic sets it apart from its competitors. Since these are
attributes that no competitor can claim and that are considered valuable to the
consumers. Also, these attributes create an image in the consumers’ minds of
being sustainable which will attract Enroot Packaging Co.’s target market.
Whereas, the product also reflects the existing consumers’ belief that if they buy
a green product, they are furthering the green movement and doing their part in
saving the earth.

‘Positioning by product attributes and benefits’ is Enroot’s best possible

strategy in achieving to make a brand or product stand out from the rest, confer
it’s the ability to charge a higher price and stave off competition from the others.
Additionally, if it results in a good position in the market, it will allow the product
Interseed and Enroot to ride out the economic bad times more easily. This type

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of positioning will offer market stability and a good profit margin in connection to
its image appeal to the consumers.

D. Marketing Strategies

Product offering, product mix, product line

Enroot packaging Co. offers custom-sized packages for different products

such as tea boxes, essential oil boxes, toothpaste/toothbrush boxes, and pizza
boxes. The sizes may vary depending on the customer. However, there is a
minimum size for each packaging type offered. Color for the packaging may vary
depending on the customers. Enroot Packaging Co. dyes the papers used for
making the packaging with non-toxic dyes.

Table 10: Types of Packaging offered by Enroot Packaging Co.

Packaging Sizes
Minimum Size
Tea Box
(9.3cmx5.6cmx4cm)
Minimum Size
Essential Oil Box
(2.5cmx2.5cmx8.5cm)
Minimum Size
Toothpaste Box
(6.5cmx1cmx1cm)
Pizza Box Minimum Size
(65.3cmx32.3cmx25cm)

Product Strategies

Table 11: Product Strategies of Enroot Packaging Co.

Recommended Strategies Description
Packaging Product offered is for Packaging

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 use
Labeling Print labels according to the
customization of the Customers
Warranties Customers may return their
defective products to the firm.
Quality The quality of the Raw materials to
be used in manufacturing the
product must be of quality. Tests
will be done to ensure the durability
of the packaging and its
effectiveness in terms of its ability
to be planted

The type of product offered by Enroot Packaging Co. is the

packaging itself, which will be used by the customers as packaging for
their respective products. The labels for the packaging will be printed
according to what the customers need to be placed for their packaging.
Additionally, for customers and final consumers to identify that
Enroot Packaging Co. manufactures the packaging, stamps will be placed
at a certain portion of the packaging containing the Logo and short contact
information of the firm. In this way, Enroot Packaging Co. may also be
able to attract more customers to avail Interseed Packaging as well.
For defective products, the customers may be able to return those
defective products to Enroot Packaging Co. given that the products
defective by the time of the manufacturing of the packages. To ensure the
Quality of the packaging, tests are performed to ensure that the product is
both durable and plantable. Enroot Packaging Co. must ensure that the
raw materials to be used in manufacturing Interseed Packaging are
imported from the suppliers that adhered to the rules and regulations set
forth by Government agencies.

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 Figure 19: Variations of Interseed Packaging

As of the moment, Enroot Packaging Co. is consistent with its product

offerings, which focus solely on manufacturing packaging only.
Furthermore, the company has one existing product line in mind, which is
Interseed: Vegetable. However, the company is open to the idea of
expanding the product lines to include fruit seeds and flower seeds in their
packaging as well as adding more packaging designs in their packaging
such as manufacturing coffee sleeves. Currently, the Interseed Packaging
line offers cauliflower, squash, Chinese cabbage, tomato, carrot, and

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 eggplant seeds imbedded in the packaging as well as an option for
assorted seeds embedded in the packaging.

Pricing decisions

Pricing is a process, with the ultimate goal of determining a pricing

strategy that maximizes the revenue the most (Campbell, 2019). Additionally, the
price of a product has a strong influence on the consumer’s preference. Raising
and lowering prices have a significant effect on the consumer’s buying behavior
that can either be good or bad such as an increase in sales or a consumer
decline.

However, the pricing of our packaging ultimately depends on the demand

and supply of the product. The demand and supply of the packaging are
influenced by three main factors which are: customers, competitors, and costs.
Based on the consideration of these factors, Enroot has decided to use value-
based pricing as its pricing strategy. Value-based pricing is a technique for
setting the price of a product or service based on the economic value it offers to
customers. This pricing strategy allows companies to capture the maximum
amount that a customer is willing to pay to significantly improve company profits
(Singh, 2017). In other words, the price is trying to reach the balance where the
company can amplify returns and the customers amenably pay for it. Similarly,
the packaging is an eco-friendly product that appeals to the growing market of
environmentally conscious consumers who view the product as one of their
actions to help save the environment. Furthermore, unlike the other forms of
pricing where companies based solely on numerical data, value-based pricing
looks at the factors consumers may consider when they judge the value of the
product. By seeing what criteria the consumer uses in its value judgment, the
company gets a better concept of what the consumer sees as most important

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and the motivations consumer has when purchasing. This understanding of the
consumer allows the partnership to formulate the most accurate price. Moreover,
this type of pricing also allows Enroot Packaging Co. to make the highest quality
of the Interseed Packaging. The product may be improved and may provide a
selection of features based on factors that have been considered during the
value assessment.

Essentially, Enroot Packaging Co. will also employ discounts such as

Logo and Bulk Discount to engage more consumers in utilizing the proposed
product. Accordingly, the Logo Discount is a strategy wherein the company
places a logo on their product, helping consumers to spend less only if they
present the logo of that specific company upon paying. By the same token,
Enroot Packaging Co. offers a logo discount to its final consumers by lessening
the price of their purchased goods by 10% if the company logo is on the
packaging. Lastly, the partnership employs the Bulk Discount recognizing that its
target market is business-to-business in nature. In the same light, if the retailer
purchases a hundred packaging; this would equate to a 10% cutoff from the price
of the entire bulk.

Manufacturer Retailers Consumers

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 Distribution Decisions

Figure 20: Distribution Process of Enroot Packaging Co.

Enroot Packaging Co. utilizes an indirect distribution method, particularly the

Manufacturer – Retailer – Consumer Distribution Process where the firm
produces and sells the Interseed Packaging in large amounts for retailers such
as department stores, malls, and the supermarket. In turn, this intermediary will
provide the Interseed Packaging to final consumers, using this as an alternative
to plastic grocery bags and paper packaging. In the same light, this channel of
distribution is desirable for groceries, which is one of the company’s target
markets. Equally important, this process relieves the manufacturer from the
burden of selling and it provides Enroot Packaging Co. the control over
distribution.

Promotion Decisions

Table 12: Promotional Strategies of Enroot Packaging Co.

Recommended Strategies Description
Posters Allows continuous exposure of the
company in a cheaper manner; attracts
many potential customers as long as
you allocate them strategically
Website Guides customers in the digital world to

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 know more about the company and the
products being offered
Social Media Platforms Enables the business to interact with its
customers on a daily basis in a more
efficient manner
Brochures An easily carried pamphlet that
contains information about the
company and its products
Open houses Events organized in public where the
company has its own stall where it
exhibits its products to reach out to
potential customers
Public Signage Signs (involving the company’s logo)
reminding passer byes to do little
things right such as properly
segregating your trash, and not littering
Sponsorships Financial assistance granted to young
entrepreneurs/students having similar
interests and innovations with the
company
Radio/ Television Commercials Helps customers become more familiar
with the company and its products
through the power of media

Shown above are the suggested promotional strategies that the

entrepreneurs could utilize in endorsing the Interseed Packaging. Traditional
Marketing such as posters may seem common, however; it still has a huge
impact for the reason that not all potential customers are active on social media
platforms. Furthermore, the usage of brochures would guarantee more
customers in a cost-efficient manner since it enables individuals to know what
Enroot Packaging Co. is and what it offers in just one sitting. Moreover, the
company proposes the use of a website, where customers could address their
suggestions and concerns concerning the Interseed Packaging. Through this,

95 | P a g e
entrepreneurs could actively engage with their customers, establishing a positive
relationship between them and the firm. In the same manner, the company will
make use of social media platforms such as Facebook, Twitter, and Instagram to
become aware of current trends and to interact with customers, who are mostly
engaged in the utilization of these platforms.

Enroot Packaging Co. will also be engaging in open houses which are
events commonly conducted by public venues such as malls and markets. The
company sees this as an opportunity to interact with more potential customers
and investors who might be interested of the Interseed Packaging. In addition,
public signage will be employed which is a subtle way of establishing company
reputation in the market. In other words, reminders such as sorting your garbage
properly and closing the faucet immediately after use will be imposed on sign
boards that involve the company name and logo at the same time. This way,
people will subconsciously remember Enroot Packaging Co. Also, this enables
the company to raise awareness about the increasing need of social
responsibility – which is one of the firm’s core values.

Sponsorships will also be granted to young entrepreneurs who hold the

same aspirations with Enroot Packaging Co. The firm will provide a minimum of
5,000 PHP financial assistance to aid these individuals on their innovations that
are similar with the company’s. In turn, the chosen students will be promoting
Enroot Packaging Co. through their booths where the company name and logo is
integrated. Lastly, radio and television commercials will be utilized provided that
Enroot Packaging Co. is financially capable and stable.

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 VIII. PROJECT IMPLEMENTATION

Project Timeline

Future of the Business 0h 0

%
Getting of Investors 0h
Sending Business Plan to Investors 0 0
% S
Signing a Contract w/ Potential Inves... 0 i n
0% S g s g i
Scouting for Potential Suppliers a... 0h 0% e Bus s
n ine
Scouting for More Employees 0 di
0 n
Scouting for Researchers for the 0
%
Pro... 0 S o or E e
0% c uti Mo m e
Use Equity to Buy Resources ng re pl s
0h 0% i
fr rch oy o
n
Product 0 0%
g
Re ers
r
d
se fo u
Further Product Development 0 a
th
ct
0 e
Testing to a Sample Group 0 % Pr
S o f
Reviewing Results and Market 0 0% c u o
Strate... Market Penetration and 0%
q
0h u
Introduction ... 0% i
0 t
0% y
Printing and Marketing 0 to Res
Ue Bu our
Printed Materials 0 0 s y ce s
Online Marketing %
0h
Pitching to Business-Business 0%
0
Consu... 0%
0
0% F r e du vel nt T R M
Production 0 u t r ct op e e a
Initial Batches 0 P De me s vi r
0h % r t e k
Packing o i P P
Delivery 0 0% r i
0 0% i t
Financial n c
0% t h
Borrowings e i D i
el v
Financing Equity 0 O I Ba
% n n tc
li i he
0%
n t kin
0% i g
a
l
P

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 a
c

c
i B win
n or gs
g ro
q
F a ui
i n E ty

Figure 21: Gantt Chart of Enroot Packaging Co.’s Activities

The Gantt chart above depicts the likely events that will take place after
the entrepreneurial fair where the recognition of potential investors may take
place. Enroot Packaging Co. will undergo contract signings, meetings, scouting,
and financing to properly build the company from the ground up. The processes
in the chart from the planning to the developing and the output stage present
itself like steps that the company will take. Furthermore, any investor can view
the plans ahead of time to decide when to invest or for portfolio uses. By all
means, the Gantt chart shows the clear goal of the company and its constituents.

IX. SOCIO-ECONOMIC COST BENEFIT ASPECT

A. Corporate Social Responsibility Plan

Table 13: Corporate Social Responsibility Plan of Enroot Packaging Co.
Name of the Program:
Enroot Packaging Sustainability Program: Professionally and Socially Responsible

Objective of the Program:

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This program aids to internalize the social responsibility of Enroot Packaging Co. to the
society the firm is in. The program intends to target different social responsibility aspects
focusing more on environmental efforts.
Beneficiaries of the Program:
Collectively, this program would generally benefit everyone, especially the environment.
Local Farmers for example, may be aided with their way of living. Citizens of the
community would be able to enjoy while doing something that is beneficial to the
environment as well as providing job opportunities to those citizens who do not have jobs
as of the moment. Students would also benefit from the said program as one of the
activities of the program plan to increase their awareness of the importance and
conservation of the environment.
Social/Environmental Impact of the Program:
The program may impact on the environment including the reducing of waste-pollution as
well as reforestation and a strong impact on the perspectives of the citizens in becoming
more inspired and motivated to perform environmental conservation efforts.
Sources of Fund:
Enroot Packaging Co. will source out funds from a percentage of their sales as well as
sponsorships from other businesses who might be interested in teaming up with Enroot
Packaging Co. in their endeavour.

Time-Frame of Implementation Person/Departm

Budg
Area of Activitie ent
Concern s Responsible et

1st Year 2nd Year 3rd Year

Tree 500 1000 trees 2000 trees Marketing

Plantin mangrove will be will be Department
Global g trees will planted on planted on
Warming be the the
planted mountaino mountaino
along the us areas us areas of
shore of along Naga Naga city
Naga City.
City.
Job Municipal Municipal Barangay Technical
Fair job fairs job fairs job fairs Department
Employme will be will be held will be held
nt held for Enroot for Enroot
along with Packaging Packaging
other Co. Co.
Compani
es
Clean Clean up Clean up Clean up Production
Up drive near drive on drive near Department
Pollution Drive the seashores the vicinity
vicinity of will be held of Enroot
Enroot twice a Packaging
Packagin year Co. plant
g Co. will be held
plant will quarterly
be held
once a

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 year
The fun The fun run The fun run Financial
Fitness Eco run will will include will include Department
Fun only 3k and 6k 3k, 6k and
Run, include 3k run with 21k with
Walk run more more
for a freebies freebies
cause

Awareness The eco The eco The eco Human Resource

seminar seminar seminar Management
School will be will be held will be held
Eco held on on three on five
semina one schools schools
r school with
only interschool
competition
s

Corporate Social Responsibility Plan and Proposed Corporate Code of

Ethical Standard

According to Chris Murphy, being a socially responsible company can

bolster a company’s image and build its brand. (Murphy, 2019) Today,
companies increasingly shift their focus on creating or improving their corporate
social responsibility. It considers issues from women’s rights, environmental
issues to attempting to obliterate poverty on a local, national or global level.
Enroot Packaging Co. is one among these companies who consider their
responsibilities to the society and most concerned with the conservation of the
environment.

Enroot Packaging Co. is a company that seeks to encourage consumers

through transforming sustainable packaging that is working towards the
advancing zero-waste systems. Enroot Packaging Co. offers Interseed
Packaging – a seed embedded paper packaging that is both biodegradable and
can be planted upon discarding. The company is also committed to aid fellow
businesses that internalized and integrated sustainability and social responsibility
in the production of their products. Enroot Packaging Co. also participates in
various community activities with. The company participates in local tree planting

100 | P a g e
programs in Naga City as well as other parts of Cebu with the aim of
reforestation, restoring our once verdant pastures. Clean-up drives around the
vicinity of the Factories of Enroot Packaging Co. will also be regularly conducted
to not only make the surroundings cleaner but as well as influencing all the
citizens in the community and other businesses to participate in such activity
further realize the need for participating in these activities that would benefit
everyone. Eco Fun Run will also be implemented as a way of keeping an
individual physically fit and a fun way of socialization. The proceeds from the fun
run will also be used to purchase and grow seedlings that are to be planted in the
tree planting activity of Enroot Packaging Co. Lastly; Enroot Packaging Co. will
conduct Eco Seminars to different public and private schools in Cebu. This is in
order to raise environmental awareness and concern for our environment
amongst the younger generation.

Enroot Packaging Co. puts the employees into careful consideration as

well. Providing healthy working conditions and various financial and health
benefits to their employees. The company intend to implement job fairs in order
to provide job opportunities to the local citizens in the communities of the
Philippines since the packaging is locally made. Enroot Packaging Co. would
also like to aid the government in minimizing the alarmingly high levels of
extreme poverty in the country.

Enroot Packaging Co. was founded with sustainability development and

environmental conservation in mind, rendering their customers with a packaging
that does not give any harmful impact to the environment and helps in its
conservation as well, reducing plastic use known to be one of the major
contributors to land and water pollution. Furthermore, the raw materials used in
the manufacturing of the Interseed packaging are obtained from government-
registered suppliers who are known to produce products of high quality.

The proposed Code of Ethical Standard integrated the policies and the
ethical principles that guides the decision making process of Enroot Packaging
Co. It imparts the company’s expectations with regard to employee behaviour

101 | P a g e
toward the organization and the customers they serve. Upon hiring, employees of
Enroot Packaging Co. are thus bounded with their contract to act according to
the Corporate Code of Ethical Standard upon carrying out their duties. Failing to
do so would result into disciplinary action in which it includes termination from
employment. The components of the company’s proposed Corporate Code of
Ethical Standard are the following:

1. Serving Customers right

Employees of Enroot Packaging Co. always have customer safety
and satisfaction in mind. This includes complying with the standards set by
government agencies and ensuring that the products manufactured are of
the highest quality. This in return would heighten customer satisfaction
and maintain their trust.
Enroot Packaging Co. value its privacy policies. With that, the
employees of the company are responsible for the protection of
confidential information of the customers and are trained to not disclose
any confidential information without consent and proper authorization.
2. Healthy work environment
Enroot Packaging Co. is committed in maintaining the consideration
of environmental sustainability in decision making which includes
generating a healthy work environment through practicing the eco-
friendly business practices. Employees are encouraged to limit
plastic consumption and the promotion of recycling and proper
waste disposal. For instance, employees are encouraged to bring
their own mugs instead of using Styrofoam cups and integrate
biodegradable, non-biodegradable and special waste trash bins.
The company values respect and equality in the workplace as well.
Any form of discrimination, bullying, assault, harassment and other
form of violence is strictly prohibited and doing so would result to
extreme disciplinary measures. Employees are expected provide a
safe and supportive work environment for their fellow colleagues
and themselves.

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 3. Professionalism
All employees must exhibit professionalism in the workplace
through adhering to the following standards.
Attendance and punctuality. Employees are expected to follow
the standard and assigned working schedule regularly on time. In
cases of emergency and ailments, the company may be able to
make exemptions for these employees provided that they would
inform the company as soon as possible and should also provide
certificates and receipts to ensure the validity of the errand or
sickness.
Professional Appearance. Employees of Enroot Packaging Co.
should follow the prescribed dress code provided by the firm and
are expected to dress accordingly to their position. Employees
assigned to the administrative activities are required to wear casual
business attires to further present an image of professionalism. On
the other hand, employees assigned in the manufacturing activities
are required to wear uniform shirts provided by the company as
well as wearing sanitary and protective equipment.
Conflict of Interest. Employees of Enroot Packaging Co. are
encouraged to avoid any activities that may cause harm to the
company, especially disclosing any confidential information to the
public. They are also entrusted to be committed to the company
and prioritize the company in events where their personal interests
may be in conflict with the actions that they take on behalf of Enroot
Packaging Co.
4. Protecting Company resources.
The company resources of Enroot Packaging Co. which include the
materials used for the manufacturing and performing administrative
activities, equipment used for the day to day operation of the
company, as well as information are provided strictly for business
use. Misuse of these resources for personal interests is utmost

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 discouraged for it may affect the job performance or the overall
operations of the firm. Employees are entrusted to these resources
which are allotted to their respective departments and are expected
to utilize these resources for the sole purpose of business
transactions.
5. Disciplinary Actions

In an event of failing to conform to the firms policies, the company

will result to taking disciplinary actions for those employees who
either intentionally or repeatedly violate the Corporate Code of
Ethical Standard. Sanctions would vary on the frequency and thee
intensity of the violation. Possible consequences may include the
following:

a. Formal written warning

b. Demotion
c. Suspension
d. Termination

In cases of theft, embezzlement, fraud, corruption or any other

unlawful behavior, legal action may also be taken.

B. Contribution to society and economy in terms of:

1. Employment Generated

The total number of all manufacturing establishments in the formal sector of

the economy reached 24,496 according to the final results of the 2015 Annual
Survey of Philippine Business and Industry (ASPBI). In line with this, total

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employment generated by all manufacturing establishments reached 1,293,811
in 2015. Of this, 98.4 percent were paid employees while the rest were working
owners and unpaid workers. Equally important, Enroot Packaging Co. will employ
workers with an estimated amount of 500 individuals for both testers and
manufacturing, and 10-20 employees under the field of sales and developers
given the fact that the company is still new and is not yet capable of handling
huge numbers of employees. Meanwhile, other positions such as Production
Planning Executive, Marketing Executive, Technical Manager, Human Resources
Manager, and the Chief Financial Officer will be handled by more competent
individuals who qualify for the company’s given set of standards. Hence, Enroot
Packaging Co. will be sterner in the process of job screening for these specified
positions. Rest assured that the company will abide by the laws of the Philippine
Constitution and will provide equal rights to applicants regardless of their age,
gender, sex or educational attainment. Further, the company will hire more
Filipino workers shortly when it is stable enough to employ more individuals.

2. Distribution of Income
For Partners (Owners)
Under the Philippine Law, a partnership is a contract whereby two or more
persons. It is where individuals bind themselves to contribute money, property, or
industry to a common fund. Partners may initially form an agreement as to how
much is the required share and the distribution of profit once the company starts
to generate income. In the same manner, Enroot Packaging Co. consists of six
(6) partners, each having an equal share of five hundred thousand pesos (PHP
500 000). In turn, this will result to a capital of three million pesos (PHP 3 000
000). Consequently, profit that will be generated in the future will be divided
equally garnering a percentage of approximately 16.67%.
For Employees
Under Wage Order No. ROVII-13 Section 8, All workers paid by results, including
those who are paid on piecework, takay, pakyaw, or task basis, shall receive not
less than the applicable minimum wage rates prescribed under the Order for the
normal working hours which shall not exceed eight (8) hours work a day, or a

105 | P a g e
proportion thereof or work of less than the normal working hours (Department of
Labor and Employment, 2018). In accordance, Enroot Packaging Co.’s workers
will have eight (8) working hours in five (5) days a week. Hence, they will be
given a pay of PHP 48.25 per hour, equating to Naga City’s minimum wage of
PHP 386 per day. For the first six months of operation, Enroot Packaging Co.’s
administrative work will be handled be handled only be the entrepreneurs
considering the company’s financial stability. Given the situation where the firm is
steady enough, Enroot Packaging Co. will be hiring applicants to increase
productivity. By then, the amount of salary received by the employees will
depend on the income produced by the company.
For Other Company Programs
Since Enroot Packaging Co.’s vision and mission centralizes on sustainability,
the company has decided to engage in outdoor activities that further strengthen
this advocacy such as tree planting activities, clean-up drives, walk for a cause,
and the like. The firm is to allot 30% of their annual income to pursue these
programs. In the same light, the proposed measures are a subtle way of
promoting the company and its urge to promote sustainability.

3. Utilization of Indigenous Materials

Indigenous materials are materials that are naturally and locally found in
specific areas such as timbers, canes, grass, palms, bamboo, abaca, capiz
shells and rattan among others. These materials are specifically found in the
Philippines and are usually the materials being used in making Philippine Crafts
such as mats and baskets. Plant seeds, recycled paper, and the organic
adhesives are the raw materials utilized in the making of the Interseed
Packaging. Since Enroot Packaging Co. is focused on reducing plastic use as
well as putting the discarded paper into other use, the company does not use any
indigenous materials in the making of their products. Interseed Packaging is
developed and manufactured with the modern lifestyle in mind, targeting and
encouraging people to utilize this packaging technology especially in the urban
areas where most of the pollution or wastes are coming from.

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 4. Dispersal of Industries

As of the moment, Enroot Packaging Co.’s plant is located at Naga City,

Cebu constructed alongside the FDR IRRMI biogas plant for the reason that this
company will be the primary source of Enroot Packaging Company’s recycled
paper needed to create the Interseed Packaging. Consequently, this will help the
firm cut down its transportation costs. Although Cebu City is the most
industrialized spot within Cebu Province, generating the company's first-ever
building within the city would contribute to congestion and environmental
problems the locale is currently experiencing. Hence, it would harm individuals
living within the city including workers, resulting in more sickly employees
causing unproductivity in Enroot Packaging Co.'s daily operations. In essence, it
would be a disadvantage for the company.

Accordingly, the populace of Naga City as of 2019 is estimated to be

174,931 individuals having less exposure to pollution compared to Cebu City. In
the same light with Cebu City, the location of the firm has sufficient resources
needed to proceed with the company's day-to-day tasks (e.g. electricity, water). If
the company is stable enough to venture into the national scene, Enroot
packaging Co.'s plant will be strategically placed at Cavite, Manila. To explain
further, the Special Economic Zone Act was passed under RA 7916 last 1995,
which reiterated the objective of accelerating a sound and balanced industrial,
economic and social development of the country through the establishment of
special economic zones in strategic locations and through mechanisms that
would attract foreign investments.

In terms of performance, the PEZA declared that as of July 2007, there

are: four public economic zones with 423 operating firms combined; forty-five
private economic zones located all over the country but many of them found in
Laguna and Cavite, with 528 operating firms. With the ideas presented, it is ideal
for Enroot Packaging Co. to construct its next plant within the vicinity. Equally
important, East-West Seed Group, the fount of the company’s seeds, is located
at Bulacan, enabling the company to once again reduce its transportation costs

107 | P a g e
since the distance between these two areas is 60.9 km, having an estimated two
hour travel time. To be specific, Enroot Packaging Co. will be constructed at
Cavite Eco-Industrial Estate for it caters to firms like the aforementioned who
prefer a light to medium scale, non-pollutant location.

APPENDICES

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 A. Brochure

B. Poster

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 C. Transmittal Letter

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 D. Consent Letter

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 E. Survey Questionnaire

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113 | P a g e
114 | P a g e
 F. Curriculum Vitae

Address: 544 P.Burgos St. Alang Alang Mandaue City

Contact Number: 09279553735

Email:areyljadebeltran001@gmail.com

Senior High School: University of San Carlos, Cebu City, 2018-2020

Beltran, Areyl Jade

Junior High School: Palompon Institute of Technology Laboratory
Baclojan
High School, Leyte

Primary Education: Ace Learning Center, Leyte

Activities and Awards :

 Certificate of Participation in National Disaster Risk Reduction

and Management

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 Address: Carajay, Gun-ob, Lapu-Lapu City

Contact Number: 09227779701

Email: is.leo100@gmail.com

Leonado, Ivana Simone Senior High School: University of San Carlos, Cebu City

Macariola
Junior High School: Colegio de la Inmaculada

Concepcion, Mandaue City, 2014-2018

Primary Education: Sto. Niño

Mactan Montessori School, Lapu-lapu

City, 2010-2014

Activities and Awards: Communication Skills Training

(Grade 10, S.Y. 2018)

 Leadership Formation Course (Grade 10, A.Y. 2018)

 Youth Volunteer Orientation Course (Grade 10, A.Y.

2018)

 Basic Leadership Training Course (Grade 9, A. Y.

2017)

 Academic Excellence (Grade 6, A.Y.2014)

Address: Pag-utlan, Maslog, Danao City, Cebu

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 Contact Number: 09565001410

Email: luzylmarie@gmail.com

Marago, Luzyl Marie Tulilis Senior High School: University of San Carlos, Cebu

City, 2018-2020

Junior High School: Compostela Science and

Technology Highschool, Cebu, 2014-2018

Primary Education: Lyceum de San Sebastian,

Cebu, 2006-2013

Activities and Awards:

 Director’s List Awardee (Grade 11, Second

Semester A.Y. 2018-2019)

 Class Representative (Grade 11, First

Semester A.Y. 2018-2019)

 With High Honors (Grade 10, A.Y. 2017-2018)

 2nd Placer, Areal Level, Radiobroadcasting in

Filipino (Grade 10, A.Y. 2017-2018)

 Perfect Scorer of Youth Chinese Test, YCT 1

(Grade 9, A.Y. 2016-2017)

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 Address: Laray, San Roque, Talisay City, Cebu

Contact Numbers: 09668969190/ 09988102733

Email:christinedominique.orozco.cdo@gmail.com

Orozco, Christine Senior High School: University of San Carlos, Cebu

Dominique Dawa City, 2018-2020

Junior High School: Cebu Normal University-

Integrated Laboratory School

Primary Education: Sacred Heart School- Hijas de

Jesus/Asian College of Technology

Activities and Awards:

 ACT: Consistent Honor Student

 Best in Oral Communication

 USC Dean’s Lister (2nd Semester)

 USC Debate Society South School

Representative

Address: Carajay, Gun-ob, Lapu-Lapu City

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Quitos, Marianne Mae Melecio
Rodriguez, Frankho Chan
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Contact Number: 09171105714
Address: San Isidro, Talisay City, Cebu
Email:mariannemaequitos@gmail.com
Contact Number: 09774542417
Senior High School: University of San Carlos,
Email: frnkhrdrgz@gmail.com
Cebu City, 2018-2020
Senior High School: University of San
Junior High School: United International
Carlos,Cebu City,2018-2020
Private School, UAE, 2013-2018
Junior High School: First Chinese Royal
Primary Education: Colegio de la Inmaculada
Academy, Talisay City
Concepcion, Mandaue City, 2006-2012
Primary Education: First Chinese Royal
Activities and Awards:
Academy, Talisay City
 Director’s List Awardee (Grade 11,
Activities and Awards:
 First Semester A.Y. 2018-2019)
 With Highest Honor (Grade 10, A.Y 2017 –
 Class Secretary (Grade 11, First
2018
Semester A.Y. 2018-2019)
 Club Mega (Club Growth Officer, 2019-
 With High Honors (Grade 10, A.Y.
2020)
2017-2018)
 Boy Scouts of the Philippines Platoon
 2nd Lt., Military Police (Grade 10, A.Y.
Leader (A.Y 2017-2018)
2017-2018)
TIMELINE OF ACTIVITIES

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