PFS

Chapter 1
INTRODUCTION
Brief Background of the Study

According to Health-Focus, consumers today have more information and
more options available than ever before when it comes to identifying foods that best
addresses their specific health concerns. Not only can it pose a challenge on the
part of the former but also necessitates them to prefer products that has their
complete health requisites. Thus, Soya consumption has been increasing steadily
since it includes vitamins and nutrients that constitute a huge bulk of what the
human body needs to keep it healthy. A part of the legume family, Soya can contain
protein and dietary fiber complete for human consumption. It contains all essential
amino acids, isoflavones, omega 3 fatty acids, magnesium, natural antioxidants (e.g.
lecithin and Vitamin E) and other key nutrients. Soya lowers bad cholesterol,
promotes heart health, fortifies bone health, manages lactose intolerance, and aids
in reducing the chances of certain cancers based on the research done by the
American Food and Drug Administration.
The acceptance of Soya-made products has been rather limited mainly
because of negative publicities such as the rancid-oil-like taste and beany odour to
name a few. The benefits and contents of Soya had not been brought out clearly to
the community.
The American Food and Drug Administration claimed that Soya has been a
safe, nutritious dietary staple for 3,000 years in Asia. The virtues of Soya still exist
today mostly to the people of Japan, China, Korea, and Indonesia. Mahatma Gandhi
introduced Soya Beans use in India in 1935. Can be grown in different soil types and
a variety of climates, Soya Beans has been in use in the form of Soya Milk and other
foods in China since the dawn of the 2 nd century. John Kellogg, the founder of
Kellogg breakfast cereals, popularized Soya Milk in the West around 1930. In 1940,
K.S. Low started selling Soya Milk in Hong Kong like dairy Milk in bottles. Clearly,
the cultivation and subsequent consumption of Soya-made products have come to
transcend the boundaries of both time and culture.
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For the reason that growth of wellness centers has been apparent and there
seems to be increasing popularity for the healthy lifestyle concept, the idea of Soya
to be part of the daily diet for humans is appealing. The researchers saw this
opportunity, thus, conducted a feasibility study of Soya Milk in Cebu City.
The researchers, being young marketers and entrepreneurs, want to apply
the theories learned by focusing on brand and value. Despite all the constraints,
inevitable risks and possible problems of the venture, the researchers have strong
convictions on their skills, reliance on determination and ultimately the passion to
achieve goals. As quoted by Dr. Martin Luther King Jr., “Take the first step in faith.
You do not have to see the whole staircase. Just take the first step.”
If the proposed undertaking would be a success, it would not only be
beneficial for the researchers themselves, but also to those ingenious individuals
who lack resources and the courage to achieve aspirations and dreams. This project
hopefully would serve as proof that even young, inexperienced entrepreneurs can
enter the exigent world of business and be at the same competitive level as big
companies in the relentless pursuit of making this world a better place to live in.
Objectives of the Study

I. Marketing Aspect
1. To know the existing uses and users of Soya-made products and study
pertinent information and practices of the Soya industry
2. To identify the major competitors of AYOS! Soya Milk and to examine the
strategies these players employed in relation to its marketing mix, namely:
Products, Promotions, Prices, and Channels of Distribution
3. To administer a supply and demand analysis of Soya Beans
4. To present the results of the market survey and taste testing for the
formulation of marketing strategies
5. To identify the target market of AYOS! Soya Milk
6. To integrate an effective marketing mix through the proposed:
a. Features of AYOS! Soya Milk consistent to the preferences of the target
market
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b. Marketing Communication Tools to be executed for AYOS!
c. AYOS! Soya Milk Pricing Policy
d. System of distribution for AYOS! Soya Milk
7. To make a three (3) year projection on sales volume and peso sales for
AYOS!
II. Technical Aspect
1. To describe the product
2. To formulate an effective and efficient production process for the product
a. To present in detail the process flow
b. To provide description of the production process
c. To generate a production schedule and calendar
d. To compute for the maximum capacity in production
e. To identify and quantify the ingredients, raw material and supplies needed
f. To itemize and quantify the machineries and equipment required
3. To site the location for operation
4. To create general layouts and to describe the size of the following:
a. Interior of the place for operation
b. Machinery and equipment
5. To describe and quantify the needed utilities
6. To devise waste disposal methods for the product
7. To determine the direct labor requirements
8. To prepare Total Quality Management measures
9. To make Safety Regulations and Guidelines in production
10. To present the health benefits of AYOS! Soya Milk
11. To present the Research and Development plan
III. Management Aspect
1. To present the Vision-Mission Statement
2. To define the image of KENTRON
3. To describe the form of business ownership
4. To show the organizational structure of the business
5. To discuss the work force requirements
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6. To describe the investment procedures
7. To formulate the organizational policies
8. To define the compensation plan of the business
9. To identify the legal requirements
IV. Financial Aspect
1. To present the total project cost of the study
2. To determine and discuss the initial capital requirement to be raised
3. To determine the sources of financing appropriate for the business
4. To provide the projected financial statements for the eleven months
operations and the next five (5) years
a. Projected Income Statement
b. Projected Cash Flow
c. Projected Balance Sheet
5. To analyze the viability of the project through the Financial ratios such as:
a. Profitability Ratio
b. Activity Ratio
6. To present the break-even analysis
7. To determine the recovery period of the investment
8. To determine the net present value
Operational Definition of Terms
Advertising - any paid form of non-personal presentation and promotion of ideas,

goods, or services by an identified sponsor
Balance Sheet - a financial statement that shows assets, liabilities, and net worth of
a company at a given time
Break-Even Point - indicates the level of operation necessary to cover all operating
costs and the profitability associated with various levels of sales
Capitalization - a mathematical process for estimating the value of a property using a
proper rate of return on the investment
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Cash Flow Statement - statement patterns of the income, the expenses and its
consequences for how much financial resources is available in a given
period
Competitor Analysis - the process of identifying competitors; assessing their
objectives, strategies, strength and weakness
Financial Ratios - quantitative relation between two financial statement amounts
determined by the number of times one contain the other, which is
used to assess the financial performance
Generation A - individuals whose age is from (42-51)
Generation O - individuals whose age is from (22-31)
Generation S – individuals whose age is from (12-21)
Generation Y - individuals whose age is from (32-41)
Income Statement - a statement showing the profits or losses sustained by the firm
during a given period, usually presented annually, it includes all
income and expenditures
Marketing Mix - the set of controllable tactical marketing tools- product, price, place,
and promotion-that the firm blends to produce the response it wants in
the target market
Payback Period - estimated length of time for the investors to recover their initial
capital investment
Price - the amount of money charged for a product or service, or the sum of the
values that consumers exchange for the benefit s of having or using
the product or service
Product - anything that can be offered to a market for attention, acquisition and
consumption that might satisfy a want or a need
Projected Sales - needed sales for the firm to achieve, in a given period
Promotion - the coordination of all seller-initiated efforts to set up channels of
information and persuasion to sell goods and services and to promote
an idea
Soya Bean – it belongs to the Family Fabaceae and classified as Glycine max.
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Target Market - set of buyers sharing needs or characteristics that the company
decides to serve
Total Project Cost - aggregate amount to finance a particular business undertaking
Total Quality Management (TQM) - is a management strategy aimed at embedding

awareness of quality corresponding to taste, volume, and packaging
for product consistency and zero-defects.
Scope and Limitations

The researchers had chosen to limit the scope of the study of the feasibility of
AYOS! Soya Milk in terms of marketing, operations, management, finance, and
socio-economic benefits. Furthermore, the researchers constrained the research
environment to the borders of Cebu City and considered the main competitors of the
proposed business. In addition, information from selected government agencies was
gathered for basis in the analysis of each aspect. The study primarily focuses on
purchase preference of the respondents in relation to taste, smell, texture, and
features for the proposed product. It also puts emphasis on current and anticipated
demand for the product. The results were used to draw conclusions, aided the
researchers in formulating the marketing mix and assisted them in that regard.
The study is further limited to the constraints identified below:
 Time Constraints
The duration for the conduct of this study was approximately two (2)
months. In-depth analysis as to the competitors was not thoroughly examined
for Marketing. Discussion of the features and process specifications for each
product was not comprehensively presented for Technical. Only conservative
estimates on the costings for the product was used for Finance
 Availability of Financial Resources
The researchers do not have enough funds that would suffice every
research activity. Capitalization is also dependent on the financial resources
of the research members which also affects the scale of operation of the
business.
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 Accuracy of Relevant Quantitative Data
Some quantities were arrived objectively. The treatment employed for
some figures were based on general mathematic and statistic standards.
 The Cooperation of the Respondents
There was some difficulty persuading people to participate the survey.
Chapter 2
THE MARKETING, TECHNICAL, MANAGEMENT,
AND FINANCIAL FEASIBILITY OF THE STUDY
This chapter points out the marketing aspect of AYOS! Soya Milk, which
involves identified marketing strategies that is to be employed to make it successful.
The technical aspect primarily touches on the production details of the product. The
management aspect brings up the philosophies, practices, and policies needed to
maintain the quality standards of the business and gear it towards the attainment of
its vision. Lastly, the financial aspect explains and analyzes the monetary
requirements and concerns of the business.
Marketing Feasibility Study
Marketing comprises of activities that involve the creation of good business

relationships between the company and its customers. To generate interest, it
presents the commercial potential of the product to prospects. This aspect describes
relevant matters such as the assessment of the current industry situation, the
identification of the target market, analysis of the supply and demand, strategies in
relation to the marketing mix, and projections of annual sales and volume. All of
which are in relation to the product. This aspect establishes the position of what the
business wants to achieve in view of the industry and the market. Below are needed
objectives to arrive at such.
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Objectives
1. To know the existing uses and users of Soya-made products and study
pertinent information and practices of the Soya industry
2. To identify the major competitors of AYOS! and to examine the strategies
these players employed in relation to its marketing mix, namely: Products,
Promotions, Prices, and Channels of Distribution
3. To administer a supply and demand analysis of Soya Beans
4. To present the results of the market survey and taste testing for the
formulation of marketing strategies
5. To identify the target market of AYOS! Soya Milk.
6. To integrate an effective marketing mix through the proposed:
a. Features of AYOS! Soya Milk consistent to the preferences of the
target market
b. Marketing Communication Tools to be executed for AYOS!
c. AYOS! Soya Milk Pricing Policy
d. System of distribution for AYOS! Soya Milk
7. To make a three (3) year projection on sales volume and peso sales for
AYOS!
Research Methodology
Research Design
Descriptive and action research were employed in the conduct of this study.
The selected research designs served as a medium in generating sound strategies
for the product relative to its market and industry. The descriptive research defines
what position in the market AYOS! Soya Milk belongs. The researchers used it for
analyzing the competition and industry trends and ultimately identifying the target
and their preferences parallel to the proposed marketing mix. The action research,
on the other hand, developed and proposed applicable strategies for the product
drawing on the data gathered from the market survey.
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Research Environment
The research and data collection was principally done in Cebu City, the
capital of Cebu Province. It has been the second most important metropolitan center
in commerce, trade, and industry in Visayas and Mindanao. According to the official
2000 census, it has a population of seven hundred eighteen thousand eight hundred
and twenty one (718,821) people in one hundred forty seven thousand and six
hundred (147,600) households. Cebu composes of North and South as defined for
the purpose of this study. The former starts from Mango Street to the border of
Mandaue City while the latter from Fuente Osmeña Street to the border of Talisay
City. The survey was conducted in all profit or non-profit business establishments
and private residences while the taste testing at People’s Fastfood at 107
Sanciangko St of the said locale.
Research Respondents
The research respondents were defined in terms of chronological age limits
from 12 to 51 years old only and were arbitrarily chosen based on availability and
wouldingness to participate.
Research Instrument
The self-administered survey questionnaire, the taste testing, and the
interview guide were the research instruments employed in the study. The survey
questionnaire contained a set of close-ended questions about the proposed features
of the product. Each of the thirteen (13) questions structured for easy
comprehension, arranged in landscape format and printed in a long bond paper. The
taste testing included 3.25 oz plastic cup and an assessment sheet typed in table
form with the pre-determined criteria. The interview guide consists of open-ended
questions couched in simple phrasing about effective practices and strategies used
for aid of the proposed product.
Research Procedures
The research instruments were utilized for gathering primary data. The survey
questionnaire was made during preliminary discussions and dialogues among the
researchers. Before pre-testing to thirty (30) respondents, the executive adviser
proofread and edited its contents. The pre-test offered feedback to the researchers
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on whether the wording and clarity of the survey are apparent to all survey
respondents. Moreover, it determines if whether the questions mean the same thing
to all respondents. This was done for the reason that the right information should be
obtained regarding the proposed product. After incorporating the adjustments and
corrections, the executive adviser signalled the start for the full-blown market survey.
Questionnaires were then produced in several copies based on the computed
number of respondents at a nearby photocopy service across University of San
Carlos Main Campus. After which was the division of survey copies among the
members of the group. The survey lasted about twenty (20) hours or nearly one (1)
day. The analysis and interpretation of data were done thoroughly after the
tabulation using the simple frequency method.
The taste testing was done just so the researchers can assess the proposed
product in relation to taste, smell and texture. In addition, the results would provide
data for its improvement. Sixty (60) respondents participated the testing, an
aggregate sum from fifteen (15) for each 4 generation. 5,000 liters from three brands
of Soya Milk, namely: Soy Magic, Miller Soya Milk, and AYOS! Soya Milk was used.
To know the honest comparative assessment among the brands, they were labelled
as (A) for Soy magic, (B) for Miller Soya Milk, and (C) for AYOS! Soya Milk. Each
was placed in a 3.25 oz small plastic cup. Results were tabulated, interpreted and
analyzed thereafter.
Lastly were interviews to direct competitors, entrepreneurs, and
businesspersons using the interview guide. Classified information about the Soya
Milk industry was given that contributed additional knowledge to the researchers.
In the gathering of data, the researchers formed three (3) ad hoc committees.
First is the administrative committee that went to the National Statistics Office (NSO)
to acquire for the population census of selected age brackets of Cebu City. The data
was used in computing for the sample size. The second is the research committee
for collecting secondary data. The researchers browsed through the Internet, read
books, newspapers and other related articles for information regarding Soya. Lastly,
the survey and tabulation committee tabulated, computed, organized, presented,
and consolidated the survey results.
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Sampling Plan
This study utilized the Stratified and Convenience type of Sampling. The
researchers identified four (4) generations treated as “subgroups of elements,”
namely: Generation S, Generation O, Generation Y, and Generation A.
The formula below was used in determining the sample size:
n= NZ2 (P) (1-P)
NE2+ Z2 (P) (1-P)
Where: n = sample size
N = Total Population
Z = Confidence Level of 95%, where z = 1.96
E = Percentage of error, 5%
P = assumed propotion, where p = .5
The formula generates an adequate number of sample size that depends on

the level of confidence (alpha) and the room for error (E). The researchers chose to
use the most conservative confidence level of (95%) which equates to 1.96 and a
sampling error of (0.05). From the total population of four hundred fifty six thousand
four hundred and eighty nine (456,489), the total number of respondents were three
hundred and eighty-three (383) and was rounded off to three hundred and eighty-
four (384).
The computation of sample size are as follows:
n= 456,489 (1.96) (.5) (1-.5)________
456,489 (.05) 2 + (1.96) 2 (.5) (1-.5)
n = 438,412.0356
1,142.1829
n = 383.8369806 or 384
The researchers decided to have an additional sixteen (16) questionnaires to
have a total number of four hundred (400) for the reason that results would be more
accurate and reliable. Illustrated below is the distribution of questionnaires to the
respondents for both sexes.
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Table M1. Distribution of Questionnaire for Both Sexes
Generations Population Percentage #Questionnaires
Generation S (12-21) 155,690 34% 136
Generation O (22-31) 135,245 30% 119
Generation Y (32-41) 98,019 21% 86
Generation A (42-51) 67,535 15% 59
Total 456,489 100% 400
The method of distribution for the questionnaires to the respondents of each

generation is proportionate to gender.
Table M2. Distribution of Questionnaires for Male Population

Generations Male Percentage Number of Questionnaire
Generation S 73,936 47% 65
Generation O 65,294 48% 57
Generation Y 48,599 50% 43
Generation A 33,197 49% 29
Table M3. Distribution of Questionnaires for Female Population

Generations Female Percentage Number of Questionnaire
Generation S 81,754 53% 71
Generation O 69,951 52% 62
Generation Y 49,420 50% 43
Generation A 34,338 51% 30
Existing Market Situation

The Soya industry, according to experts, has a yearly growth of at least
twenty percent (20%) in sales. No distinction was made as to which Soya-made
products constituted the percentage; nevertheless, it serves as support in the
feasibility of the proposed product. Soya has become popular for its health benefits,
thus, comprehensive studies are made to improve the flexibility and applicability of
isolated Soya ingredients for use in a wider variety of foods. The driving force
originated primarily from the demand for a healthier lifestyle as seen by the
proliferation of wellness centres.
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The most significant growth in the Soya category is eminent in products
defined traditionally as dairy items such as milk, yogurt and ice cream says Steve
Allen, vice president of new business development for Nestle USA in Los Angeles.
Even market studies reveal phenomenal success of the Soya Milk in natural food
stores and traditional supermarkets. Moreover, Soya Milk can be substituted for
dairy milk in almost any recipe. Development of its taste factor through better blends
and consumer education on chilling and serving have overcome negative consumer
perceptions considerably. According to the Soya Foods Centres, retail prices for
both varieties of milk, dairy and Soya, would nearly be the same in about five years,
and that should help spur more consumer interest.
The booming industries today are targeting the health and wellness market
which is the main reason for this study. Select government agencies and Local
Government Units have spearheaded the campaign to make every Filipino embody
a healthy lifestyle through Soya-made products. President Gloria Macapagal Arroyo
declared the years 2005 to 2015 as the Decade of Healthy Lifestyle in light of the
results from the 6th National Nutrition and Health Survey conducted in 2003. The
said survey clearly showed the presence of risk factors such as physical inactivity,
smoking, hypertension, obesity, diabetes, and dislipidemia, in ninety percent (90%)
of Filipinos. These risks are causes of cardiovascular diseases, cancer, chronic
obstructive pulmonary disease, and diabetes mellitus that are all recognized as
among the top 10 causes of deaths in the country. Soya has scientifically been
proven to reduce the effects of the diseases previously mentioned. Hence, Soya Milk
stimulated interest in the local market.
Competitor Analysis
The researchers considered significant factors in doing the analysis, namely;
product size, packaging, prices, and channel distribution as seen in Table M4. This
section principally provides a brief descriptive analysis of the major competitors.
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Soy Magic. It is packaged in a glass bottle that prolongs its shelf life and gives
it a more classy appeal to consumers which contributed to its high price of P48.00.
They are able to reach customers by putting up stalls in Malls and Fitness Centres
that gives them the benefit of easy market exposure.
Miller Soya Milk. The quality of their Soya Milk primarily comes from the fact
that they have been selling it for more than 20 years which is seen as a competitive
edge. They are sold through the Miller Hospital canteen. Their price is affordable for
the reason that packaging is in plastic bottles.
Soya Fresco. They are claiming to have the finest Soya Milk produced from
Canada-exported Soya beans. They make their products available in convenience
stores and gasoline stops. They price relatively cheaper than the rest.
Fat & Thin. Their brand recognition gives them an edge over their
competitors. They price high, and packages their Soya Milk in high-density food
grade plastic for a longer shelf life.
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Table M4. Comparative Analysis of Competitors
Competitor Size and Packaging Prices Location/Availability Features Target Market Base
Flavours (Melon, Chocolate, Strawberry, Health conscious people aged

Soya Magic 500ml P48.00 Malls, Fitness Centers Pandan, Almond Nut, Cappuccino, Ube, 18-40 years old. Middle to High Manila
Glass Bottle (Fitness First) Vanilla, Bubble Gum), long shelf life Income
Miller 330ml, 500ml, 1L P20.00, Miller Hospital Canteen, Health Conscious People and
Food Grade Plastic Bottle P25.00, Convenience Stores Vanilla Flavour Patients of Miller Hospital. Low Cebu City
P35.00 to Middle Income
Soya Fresco Convenience Stores, Middle income families and
500ml P21.00 Gasoline Stations Uses Soya Beans from Canada people situated near their Cebu City
Food Grade Plastic Bottle consignment locations.
Milky Soya Drink
330ml, 1L P30.75, Supermarket (SM and Flavours (Ube, Egg Delight, Green High Income Families Taiwan
High Density Food Grade P85.75 Ayala) Apple, Sweet Corn, Chocolate)
Plastic Bottle
Kiddie Soya Drink 330ml
High Density Food Grade P17.50 Supermarket (SM and Flavours (Melon, Green Apple, Ube) Young consumers aged 8-16 Taiwan
Plastic Bottle Ayala) years old.
Chateau 330ml Low to Middle Income
Food Grade Plastic Bottle P16.50 Ayala Supermarket Natural Flavour consumers aged Cebu City
Soyah! 330ml, 500ml, 1L P19.25,
Food Grade Plastic Bottle P27.00, Supermarket Natural Flavour Adults with Middle Income Cebu City
P51.00 (SM and Ayala)
Soyah! (Flavoured) 330ml, 1L P27.00, Various Grocery Stores Flavours (Buko Pandan, Strawberry,
Food Grade Plastic Bottle P81.75 Melon, Chocolate) Children and Teenagers Cebu City
Magic Beans Convenience Stores, Families who have low to middle
330ml, 500ml P17.40, Carenderias, Tita None income, consumers aged 18-45 Cebu City
Food Grade Plastic Bottle P27.00 Gwapa years old.
Hao Hao
330ml P15.00 SM Supermarket Natural Flavour, Soya Beans from Families with low income Cebu City
Food Grade Plastic Bottle Taiwan
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Supply and Demand Analysis
This is an integral part of the study that would determine if the company has
enough supply for its operations and enough demand for its sustainability. Due to
limited access to information, the researchers focused on Soya Beans in the
analysis.
Supply
According to the Bureau of Customs, seven million seven hundred eighty-four
thousand four hundred and thirty three kilograms (7,784,433 kg) of Soya beans
entered Cebu City in 2007. They forecasted that it would remain at the same volume
for the years to come. The researchers assume a 0.5% growth for the next 3 years.
Considering Soya bean can further be processed into different products, the
researchers conservatively assumed only .02% of the total volume would be used
for Soya Milk since no data would indicate how the Soya beans have been used. It
was further broken down to 0.01% for it is presumed that only half of the imports
would be used in Cebu.
Table M5. Soya Milk Consumption
Year Soya Bean Imports Soya Milk Ml Conversion
Consumption (0.01%) (kg*12,000ml)
2007 7,784,433 kg 778 kg 9,336,000 ml
2008 7,823,355 kg 782 kg 9,384,000 ml
2009 7,862,471 kg 786 kg 9,432,000 ml
2010 7,901,783 kg 790 kg 9,480,000 ml
Demand
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This section is derived from the results of the market survey for AYOS! Soya
Milk which was draw from the total population of the target market.
Table M6. Computation for Projected Demand (Population)

Population Percentage
456,489 57%(See Table M7) 260,199
260,199 85%(See Table M8) 221,169
221,169 16%(See Table M9) 35,387
Projected Demand 35,387
As shown on the table above, the projected demand was derived by

multiplying the population of the target market by the different percentages of people
who have purchased Soya-based products, people who are woulding to purchase
Soya-based products, and those who are woulding to purchase Soya Milk. The
calculations were done in this order: 456,489 (0.57) (0.85) (0.16) = 35,387
Table M7. Respondents Who Tried Soya-based Products

Question # 1 Frequency Percentage
Yes 227 57%
No 173 43%
Total 400 100.00%
Table M8. Wouldingness to Buy Soya-based products

Yes 339 85%
No 61 15%
Total 400 100.00%
Table M9. Soya Product Respondent Preference

Product No. of Responses Percentage
Soya milk 75 16%
Soap 119 25%
Shake/Juice 184 39%
Pastries 96 20%
Total 474 100%
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Table M10. Computation for Projected Demand (Volume)
Volume No. of Respondents Total
350 ml 21,232 (60% of 35,387) 7,431,200 ml
500ml 14,155 (40% of 35,387) 7,077,500 ml
The above table illustrates the projected demand of Soya Milk in Volume. The
percentages of the figures were collected from table M18D. The volume was
necessary to determine the supply and demand gap
Table M11. 3 Year Demand Projection
Year Soya Milk
2008 14,508,700 ml
2009 15,959,570 ml
2010 17,555,527 ml
The researchers assumed a 10 percent increase demand of all the products

for the years 2009 and 2010. This is most likely due to marketing efforts.
Table M12. Supply-Demand Gap
Year Supply Demand Supply and Demand Gap
2008 9,384,000 ml 14,508,700 ml 5,124,700 ml
2009 9,432,000 ml 15,959,570 ml 6,527,570 ml

2010 9,480,000 ml 17,555,527 ml 8,075,527 ml
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Presentation of Market Survey Results
Table M13. Amount Spent On Soya-Made Products

Php 1-10 38 17%
Php 11-20 47 21%
Php 21-30 57 25 %
Php 31-40 20 9%
Php 41-100 31 13%
Php 101-200 20 9%
Php 201-400 7 3%
Php 401-600 2 1%
Php 1000-5000 5 2%
Total 227 100%
As presented above, there is much variation in the amounts respondents

spent on Soya-made products. This is for the reason that many Soya-made products
are available in the market. Although, the highest percentage shows respondents
only spend around Php21-30 on Soya-made products.
Table M14. Purchase Frequency on Soya-Made Products

Every Day 16 7%
Every Month 56 24%
Every Week 72 32%
Every Six Months 41 18%
Once a Year 22 10%
Twice or More in a Year 20 9%
Total 227 100%
As shown in table M14, a high percentage of respondents buy Soya products

on a weekly basis. This made the researchers realize that there is a weekly demand
of Soya-made products.
Table M15. Preferred Factors to Consider
Question # 5 Rank 3 Rank 2 Rank 1 Frequency Percentage
Price 25 71 83 179 36%
Accessibility
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and 80 49 39 168 33%
Availability
Expiration and 47 41 68 156 31%
Quality
Total 152 161 190 503 100%
The table shows that price is the most important factor respondents consider
in buying Soya-made products as well as the expiration and quality of the products.
In addition, respondents ranked accessibility and availability of the products as the
third important factor.
However, after tabulating the results, the researchers detected a flaw on how
the questions were organized in the questionnaire. Since only 227 out of 400
respondents, which indicated that they have tried Soya-based products, only they
were suppose to answer this particular question. It just happened that all of the 400
respondents continued answering such question. Thus, this led to the inconsistency
of the total numbers found in the Frequency column above compared to the
percentage of those who have tried Soya-made products.
Table M16. Preference of Purchase
Myself 129 57%
Family 88 39%
Friends 10 4%
Total 227 100%
As shown in Table M16, majority of the respondents prefer to buy the product
for their own consumption. Meanwhile, thirty-nine percent of the respondents
consider buying products for family consumption.
Table M17. Reasons for Purchase

Health Benefits 285 84%
Lactose Intolerance 35 10%
Others 19 6%
Total 339 100%
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In Table M18, most of the respondents buy Soya because of health benefits
they get from it such as the following: helps lower cholesterol level, it is a good
source of protein and vitamins, and it reduces the risk of cancer and helps manage
weight. Those respondents who answered lactose intolerance comprise only a small
percentage of the total respondents. This means that consumers who are sensitive
to any dairy product can consider AYOS! Soya Milk as an alternative. Moreover, six
percent said they buy out of curiosity, taste, or it was recommended by a friend.
Table M18A. Preferred Flavour

Question # 10A Frequency Percentage
Chocolate 123 32%
Sweetened 109 29%
Unsweetened 47 12%
Mango 44 12%
Vanilla 23 6%
Strawberry 18 5%
Banana 11 3%
Others 3 1%
Total 378 100%
In Table M18A, a big percentage of the total sample population like
chocolate- flavoured Soya the most. Other percentages consider mixing their Soya
Milk with sugar, mango, vanilla, strawberry, or no mix at all which is just the pure
Soya flavour. The researchers decided three start-up flavours for Soya Milk:
sweetened, unsweetened, and chocolate.
Table M18 B-1. Preferred Packaging
Question # 10B Frequency Percentage
Glass bottle/s 37 49%
Plastic bottle/s 24 32%
Tetra pack/s 14 19%
Total 75 100%
As seen, most of the respondents would prefer a glass bottle as packaging

while only thirty-two percent preferred plastic bottles. Although, bottled Soya Milk
keeps the milk from spoiling fast, the researchers decided to use plastic bottles for
their AYOS! Soya Milk since glass bottles are expensive.
21
Table M18 B-2. Ranking of Information Content on Package
5 4 3 2 1 Frequency Percentage
Health Benefits 12 17 34 45 131 239 21%
Ingredients 32 58 69 32 27 218 19%
Storage and Care 91 65 46 25 10 237 21%
Nutritional Value 18 22 40 92 58 230 20%
Shelf Life 61 46 41 32 36 216 19%
Total 214 208 230 226 262 1140 100%
As shown, respondents consider health benefits as the number one

information they want to see in the packaging of Soya Milk. Second type is the
Nutritional Value, followed by the ingredients in the third rank. Fourth, would be the
shelf life and lastly the storage and care. The respondents are more concerned
about the health benefits it gets from the Soya Milk.
Table M18C. Preferred Price
Question # 10C Frequency Percentage
Php 30-35 37 49%
Php 36-40 16 21%
Php 41-45 12 16%
Php 46-50 10 14%
Total 75 100%
As shown, most of the respondents answered Php30-35. This is the amount

respondents are woulding to spend when buying AYOS! Soya Milk. While only
fourteen percent are woulding to buy AYOS! Soya Milk at Php46-50. In terms of the
major competitors such as Miller Soya Milk and Soy Magic, these prices that they
are woulding to pay are very similar to the prices of these competitors. However, the
prices can vary depending the sizes.
Table M18D. Preferred Volume
Question # 10D Frequency Percentage
350ml 45 60%
500ml 30 40%
Total 75 100%
22
In Table M19D, most of the respondents answered 350ml for the reason that
AYOS! Soya Milk easily spoils. It is therefore safe to buy a 350ml bottle for it is only
consumed in just one sitting.
Presentation of Taste Testing Results
Table M19. Generation S

Taste Soy Magic Miller Soya Milk AYOS! Soya Milk

Good 9 60% 10 67% 2 13%
Bad 4 27% 2 13% 11 73%
Others 2 13% 3 20% 2 13%

Texture

Smooth 10 67% 8 53% 6 40%
Not 3 20% 4 27% 6 40%
Others 2 13% 3 20% 3 20%

Smell

Good 12 80% 12 80% 5 33%
Bad 2 13% 1 7% 6 40%
Others 1 7% 2 13% 4 27%

Quality

1 1 7% 0 0% 2 13%
2 1 7% 1 7% 2 13%
3 2 13% 1 7% 5 33%
4 7 47% 7 47% 5 33%
5 4 27% 6 40% 1 7%
23
Table M20. Generation O

Taste Soy Magic Miller Soya Milk AYOS! Soya Milk

Good 11 73% 12 80% 5 33%
Bad 4 27% 1 7% 10 67%
1 7%

Texture

Smooth 8 53% 11 73% 8 53%
Not 2 13% 3 20% 4 27%
Others 5 33% 1 7% 3 20%

Smell

Good 10 67% 11 73% 6 40%
Bad 2 13% 3 20% 6 40%
Others 3 20% 2 13% 3 20%

Quality

1 0 0% 0 0% 2 13%
2 3 20% 0 0% 2 13%
3 4 27% 2 13% 4 27%
4 4 27% 7 47% 2 13%
5 4 27% 6 40% 5 33%
Table M21. Generation Y
Taste
Soy Magic Miller Soya Milk AYOS! Soya Milk
24
Good 6 40% 10 67% 7 47%
Bad 2 13% 2 13% 4 27%
Others 7 47% 3 20% 4 27%
Texture
Smooth 8 53% 12 80% 8 53%

Not 2 13% 3 20% 3 20%
Others 5 33% 4 27%
Smell
Good 6 40% 10 67% 5 33%

Bad 4 27% 5 33% 7 47%
Others 5 33% 3 20%
Quality
1 0 0% 3 20% 0 0%
2 0 0% 3 20% 4 27%
3 6 40% 0 0% 5 33%
4 2 13% 5 33% 3 20%
5 7 47% 4 27% 3 20%
Table M22. Generation A
Taste
Soy Magic Miller Soya Milk AYOS! Soya Milk
Good 12 80% 7 47% 5 33%

Bad 1 7% 6 40% 7 47%
Others 2 13% 2 13% 3 20%
Texture
Smooth 7 47% 13 87% 8 53%

Not 8 53% 2 13% 5 33%
25
2 13%
Smell
Good 11 73% 7 47% 6 40%

Bad 4 27% 8 53% 5 33%
4 27%
Quality
1 0 0% 0 0% 2 13%
2 3 20% 1 7% 4 27%
3 5 33% 2 13% 2 13%
4 2 13% 4 27% 5 33%
5 5 33% 8 53% 2 13%
The taste testing serves a dual purpose: First, it provides a comparative

format among the major competitors of AYOS! Soya Milk. Second, it serves as an
avenue for the researchers as to what part of the product needs improvement based
on the previously mentioned criteria. In accordance to the results, the process must
be standardized so not to alter the inconsistency of the features of the product.
26
Proposed Marketing Strategy
This segment contains the integrated marketing mix for the product. The
brand AYOS! was built upon the foundation of a name that is fun and easy to
remember. It is the inverted word of Soya and has an exclamation point at the end to
stress on enjoyment and pleasure the product gives to the market.
The researchers plan to implement the differentiation strategy to completely
set AYOS! Soya Milk apart from its competitors. The strategy is geared towards
attracting customers from their “state of indifference” when it comes to Soya and
generate favourable perceptions through offering quality AYOS! Soya Milk. Its
foremost emphasis is on spreading public awareness and constructively establishing
AYOS! in the market as being of good quality and high in value. In order to do this,
KENTRON centralizes all marketing actions on the emotional appeal of customers.
This section revolves around the four (4) P’s of marketing namely product, price,
promotion, and placement.
Target Market
AYOS! Soya Milk designates the business and consumer market. Included in
these segments are single individuals, households, fitness centers, spas and such.
The single individuals and household buyers of Soya-made products are categorized
into four (4) segments: Generation S (12-21 yrs old), Generation O (22-32 yrs old),
Generation Y (33-43yrs old) and Generation A (44 yrs old and above). The buyers in
the Generation S segment are the youngest of the four. These buyers are assumed
to either be studying in high school or finishing a college degree. Most if not all of
them are dependent on their parents or guardians. This segment is attractive for
even though they do not have the biggest purchasing power, they are known to be
open-minded buyers. Moreover, this generation can also be definitive sample of
conforming and impulsive buyers. Generation O is defined as those young
professionals that live a stressful life. They are the workaholics, goal oriented, on the
go, and the achievers. It is important for these people to stay fit and healthy in
preparation for achieving their dreams and goals. Generation Y consists of the
parents, homemakers who are concerned with the health of their family. These
27
people give weight to living and maintaining a healthy lifestyle. Generation A is
composed of people in their prime years, and categorized as mature citizens of the
society. This generation gives great attention and sometimes obsession to
maintaining good health. Some of them are starting to experience health problems.
Fitness centers and Spas are at the top of the list for business segments. These
business establishments are a definite segment for the market.
Product
The group offers to make available to its market Soya Milk in 330 ml plastic
bottles, called AYOS! Soya Milk. It comes in three flavours: unsweetened,
sweetened and chocolate. Different colored bottle caps would distinguish one flavour
from the other.
Promotions
The researchers want to make sure AYOS! Soya Milk would be constructively
established on the minds of its consumers as having good quality and value.
One Voice
“AYOS! Soya Milk: Your Healthy Habit”. A message that encourages and
necessitates the target market to include the product as part of their daily habit to
stay healthy.
Unique Selling Proposition
AYOS! Soya Milk would have no preservatives and would act as a popular
alternative for people who are lactose intolerant. The product is inherent with
vitamins and nutrients that help to make peoples lives healthier.
Advertising
The main objectives of this section in promotion are to create awareness in
the Cebu City market of the existence of AYOS! Soya Milk, to revolutionize any false
perceptions the public has about Soya, to inform the public about the health benefits
and the nutritional content of AYOS! Soya Milk, to be able to influence customers to
start patronizing AYOS!, to be able to prove to the public that AYOS! is a brand
28
wanting only the best for its customers by offering them healthy products for a
healthy lifestyle.
KENTRON plans to put up 10 A3 sized posters for its business customers.
These posters are to be attractive, colorful, and eye-catching. The content includes
the brand name, corporate logo, one voice, contact numbers, nutritional benefits,
and e-mail address. These ads aim to let consumers identify the AYOS! Soya Milk
brand from others. These posters would be strategically positioned in conspicuous
areas of the premises of the consignments.
Advertorials would be published on Sun Star Newspaper during the
introduction of the AYOS! Soya Milk The publicity from this ad would definitely be
huge since Sun Star is read all over Cebu City. The use of this tool stresses on the
brand name itself. The ad would contain the AYOS! logo and the health benefits
associated with drinking AYOS! Soya Milk.
The 2x6 square feet tarpaulin would be in banner style and would be in the
10oz material with an X-designed stand as support. This tarpaulin would contain
pictures and representations of images that display healthy living with AYOS! Soya
Milk.
With the rapidly changing world and with people communicating through the
internet, AYOS! Soya Milk would take advantage of the opportunity by placing ads
through channels like youtube.com, multiply.com, ringo.com, friendster.com,
facebook.com and other such sites to help boost the sales of AYOS! and to instil the
health benefits and advantages of the proposed product. Customers can
conveniently order and inquire information directly through each investor and be able
to get a response more quickly using the sites.
Each member would have Business Cards that contain all the information on
how to reach him or her for orders, clarifications, inquiries, and feedback.
Furthermore, this would also serve as marketing aid in their personal selling
process.
Pocket calendars and bookmarks containing information about the brand
would be handed out to customers buying AYOS! Soya Milk. These items are given
29
for free. Lastly, the word-of-mouth communication would be employed. This would
have to start from the researchers themselves.
Sales Promotions
The objectives of this section are to increase sales of existing products, to
encourage repeat purchases of current customers, to increase the number of
customers, to increase product usage, to encourage brand loyalty or discourage
brand switching and to facilitate collection of customer database information.
The first to be implemented is sampling which involves the use of trial-sized
samples of the product which would be given free of charge. As mentioned before,
sampling would be used in order to create product awareness and thus encourage
purchase. The sampling would be done during the soft opening of the AYOS! Soya
Milk which would be done on the second week of the first operations.
It would be ideal to invent a catchy product jingle that would contain the
necessary information regarding the product and its features.
Public Relations
It has plans to sponsor the nutrition events in schools, charity events like
running, sport fests, and other of that sort. AYOS! Soya Milk would either sponsor
those events or distribute our products in the vicinity or at the location of said events.
In the case of AYOS! as it is related to the health and wellness of an
individual, the marketers would lobby doctors, nutritionalists, and opinion leaders to
promote AYOS! Soya Milk.
Price
The strategies to be used are a combination of cost-based pricing and value-
based pricing. Cost-based pricing involves the determination of all fixed and variable
costs associated with AYOS! Soya Milk. The purpose of this cost-oriented approach
is to cover all costs incurred in production and to achieve a reasonable profit margin.
Value-based pricing would be implemented since it is important that the selling price
would reflect the perceived value of the product. The prices to be set would include
the total costs incurred while having a margin that would reflect the value of the
product.
30
Placement
Place is a marketing element which refers to how a product makes itself
available to customers. This involves employing a unique marketing channel system
consistent with the company objectives. The distribution of the proposed product
would be intensive. The company would focus their distribution efforts on
consignments with only little for personal selling; ratio is 80:20 respectively.
Consignment in business terms is defined as delivering a quantity or package of
goods to a particular establishment and leaving it for a particular time, payment
would only be made after the products are sold and remaining items would be
replaced. The strategy in choosing consignees is territorial; the establishments
chosen are located near the residences of the incorporators and the production site.
Furthermore, these consignees should have a refrigerator or a cooling container of
any sort to store the products. This would enable easy and quick delivery. Refer to
the latter portion of the List of Appendices for the Consignment Guidelines and
Sample Consignee Contract Agreement. Although only a small percentage of the
AYOS! Soya Milk would be produced for personal selling, it plays a significant role in
the introduction and product awareness strategy of the company. The word of
mouth exposure the brand would get from personal selling would definitely help
increase the market awareness and sales of the company.
31
Figure M1. AYOS! Soya Milk Channel of Distribution
32
Projected Sales Volume and Peso Sales for three (3) Years
Projected Sales Volume is calculated by basing the sales projection on the
projected demand. However, it is not necessary to consider the whole production
every month since it is presumed that some products would be unsold or spoiled.
Peso Sales is calculated by converting the sales volume into peso.
Sales Volume x Unit Price = Peso Sales
The calculation of peso sales and sales volume is based on the monthly
quota to reach and satisfy the total cost and expenses incurred in the study. The
sales volume is based on the monthly production and spoilage. It is assumed that on
the months of April to May there would be 50 units allowance for spoilage while for
August to October is 30. Considering not all of the bottles produced would be sold,
the researchers assume that only 70% would be purchased.
Table M23. April to May Peso Sales and Sales Volume Projections
Milk Products Price Bottles Pesos Sales

Unsweetened 20.40 450 9,180.00
Sweetened 22.67 450 10,201.50
Chocolate 25.20 450 11,340.00
Total 1,350 30,721.50
Projected (70%) 945 21,505.05
Table M24. August to October Peso Sales and Sales Volume Projections

Unsweetened 20.40 470 9,588.00
Sweetened 22.67 470 10,654.90
Chocolate 25.20 470 11,844.00
Total 1,410 32,086.90
Projected (70%) 987 22,460.83
Table M25. November to February Peso Sales and Sales Volume Projections
33
Unsweetened 20.40 490 9,996.00
Sweetened 22.67 490 11,108.30
Chocolate 25.20 490 12,348.00
Total 1,470 33,452.30
Projected (70%) 1,029 23,416.61
The projected sales volume would be used in determining the number of

consignments needed to reach sales target, the same is applied for personal selling.
Below is the target number of Consignments for the first quarter:
Sales Volume needed (Refer to Table M23): 945 Bottles

Percentage for Consignments (80%): 756 Bottles
Minimum number of bottles per consignee: 15 Bottles
Target number of Consignments: 50 Consignments (756/15)
34
Technical Feasibility Study
This aspect provides a detailed overview of AYOS! Soya Milk, its processes,
and related requirements. In that regard, it is to answer the questions what, when,
where, and how that would further the feasibility of the product.
Objectives:
1. To provide the descriptions of the product

2. To formulate an effective and efficient production process for the product
a. To present in detail the process flow
b. To provide description of each production process
c. To generate a production schedule and calendar
d. To compute for the maximum capacity in production
e. To identify and quantify the ingredients, raw material and supplies
needed
f. To itemize and quantify the machineries and equipment required
3. To site the location for operation
4. To create general layouts and to describe the size of the following:
a. Interior of the place for operation
b. Machinery and equipment
5. To describe and quantify the needed utilities
6. To devise waste disposal methods for the product
7. To determine the direct labor requirements
8. To prepare Total Quality Management measures
9. To make Safety Regulations and Guidelines in production
10. To present the health benefits of AYOS! Soya Milk
11. To present the Research and Development plan
35
Description of the Product
Offered as an alternative to dairy milk, it comes in three (3) flavours:
sweetened, unsweetened, and chocolate. AYOS! Soya Milk is produced from pure
organic Soya Beans and other main ingredients such as purified distilled water,
refined sugar, and flavourings. To ensure the health benefits 1 delivered from the
Soya Milk, it is free from preservatives and other chemicals. It comes in only one
size - three hundred thirty milliliters (330 ml). The bottle is made from Food Grade
Plastic (polyethylene terephthalate). To add, the dimensions are 11.35cm (Height)
by 10.5 cm (Width) by 10.5 (Circumference) sealed with a bottle cap then a plastic
seal depicted below.
330 ml
11.34cm (Height)
10.5cm
(Circumference)
Figure T1. Dimensions of 300ml bottle
Production Process
1
Refer to Appendix H for the Primary Health Benefits of Soya and its Ingredients
36
The full narrative of generating an effective and efficient production process
for AYOS! is done in this section. The presentation is in this particular order. First,
the figures that depict in detail the process flow of each product. Then, the
description of each process with its equivalent time motion. The production schedule
and computation of the maximum capacity then follows. Lastly are the machineries,
equipments, ingredients, raw materials, and supplies needed for the product with
corresponding descriptions, quantities, and costs.
Start Transferring
5 sec.
Quality Control Quality

Rebottling
Control 37
Refrigerate No Add Ingredients Fail
10
5 sec.
AYOS MILK Fail
sec. End
of Milk 5Pass
5 sec.
sec.
A 5 sec.
C
Materials and
Equipments Add Ingredients Blending
Flavouring
5 sec. 5 min
Soya bean
Yes
and water
Blending Fail
B Quality Control
Preparation 5 min C
5 sec.
10 min .
Pass
Soaking
B
8-12 hrs. A
Draining Pass
5 sec. Bottling
5 sec. B
Blending
5 sec. Sealing
5 sec.
Filtering
5 sec.
Squeeze/Twist B
1 min.
Pass
Removing of
foam 15 sec.
Pasteurization
20 min.
Figure T2. AYOS! Soya Milk Production Process Flow

Description of the Processes
38
Segregation and Soaking
The pre-production puts the operations team in a state of readiness for the
whole production process. This involves the segregation of Soya Beans with
reference to its physical characteristics using only visual sensory. To determine
good Soya Beans, it should have no fragments, must have smoothness in texture,
and should have no black spots around it. The beans are washed thoroughly
afterwards with running water. Since the Philippines has a tropical climate, the Soya
Beans must be soaked in water not longer than six (6) hours 1 in about three times
their volume of water to swell them completely. Due to absence of resources,
properly soaked beans are determined through close examination of its physical
aspect, namely: very small foam patches on the surface of the water, skin is smooth
and firm, and halves break easily. If it satisfies the previously mentioned criteria, the
soaked water is then drained. The beans are again rinsed thoroughly to cleanse
from extraneous elements.
Grinding
The Soya Beans are ground in small pieces for approximately five (5)
minutes. The Soya bean to water ratio 2 could be higher or lower depending on the
thickness of milk desired. The time covers the repetition until the beans are
thoroughly ground.
Filtering
The extract sieves through cheesecloth to strain fibrous residues called
(okara).This is manually done that involves moderate to slight compress of the
cheesecloth generating foams which are then discarded using a clean spoon.
Pasteurization
It is the treatment by heating of every particle of milk to 63º to 70º C for twenty
minutes without allowing recontamination of that milk during the heat treatment
process. This process is done to make the Soya Milk safe for human consumption
by destroying all bacteria that may be harmful to health. Furthermore, this also
serves as a medium to improve the keeping quality of the milk by destroying
undesirable enzymes and many spoilage bacteria. The temperature and time
1
R.P. Gupta, 1997
2
Refer to Appendix K
39
combinations of this process are the standard operating procedure requisites for
quality as defined by the researchers. A visual sensory inspection of the Soya Milk
comes subsequently before the transfer to a clean container. In cases with flavours,
they are concurrently grounded then mixed with the milk. Before bottling, Total
Quality Management measures are executed.
Bottling
If the Soya Milk qualifies the TQM check, it is funnelled into the bottle,
manually sealed with a heat gun and a plastic sealer that takes approximately five
(5) to ten (10) minutes for storage and sale. To boot, the shelf life of the milk pivots
on the precision of this process.
Production Schedule
Table T1. Schedule for Commissary Operation
Time Operation
8:30 am Arrival of the assigned investors
8:30-8:45 am Clean and Set-up the production area
8:45-9:00 am Preparation of ingredients, raw materials, supplies,
machineries, and equipments and ingredients
9:00-11:30 am Start of AYOS! Soya Milk production
11:30-12:30 pm - Lunch Break -
12:30-4:30 pm Start of AYOS! Soya Milk production
4:30-5:00 pm End of AYOS! milk production and start of cleaning up the
commissary
5:00-5:30 pm Do the end-of-day inventory
5:30 pm Pack up and leave
Table T1 shows the daily work schedule while Table T2 is the schedules of
shifts for sixteen (16) investors. The presence of the operations manager is
obligatory during production. In a case of shortage and high demand, production
days would be added as determined by the technical team.
Table T2. Shift Schedule
Shift Schedule Assigned Investors
1st Saturday Lim, Frio, Diores, Parawan, Magallanes, Coching
2nd Saturday Lim, Frio, Medida, Tan, Lintogonan, Coching
40
3rd Saturday Lim, Frio, Morata, Canonigo, Labus, Pepito, Coching
4th Saturday Lim, Frio, Chua, Limtin, Balce, Coching
Maximum Capacity
Table T3. Annual Production Schedule
(1) (2) (2) / a1 = (3) (3) - [(3) x b2] = (4)
Month Volume of Volume of Volume of Volume of Soya
Soya Milk Soya Milk Soya Milk Milk Bottle to be
Produced Produced in Bottles produced
in Liters (L) milliliters (ml) produced
March3 54 54,000 0 0
April 144 144,000 1772 1594
May 144 144,000 1772 1594
June 144 144,000 2215 1994
July 144 144,000 1772 1594
August 144 144,000 2215 1994
September 144 144,000 1772 1594
October 144 144,000 1772 1594
November 144 144,000 2215 1994
December 144 144,000 1772 1594
January 144 144,000 1772 1594
February 144 144,000 1772 1594
Total 1,284.24 1, 284, 240 20,821 18,734
th
Production would officially commence on the 4 week of March with an
allotment of fifty-four liters (54L) for Sampling. Below is the computation for the
maximum capacity.
Formula Used:
Maximum Capacity = working time4 / bottle neck5
Application:
1
Variance: 325 ml = 2% of 330 ml
2
10% allowance for spillage
3
The Volume of Soya Milk Produced not for sale
4
480 minutes = 8 hours of working time x 60 minutes in an hour
5
20 minutes = Estimated Duration of Pasteurization using Timer/watch
41
= 480 minutes/ 20 minutes
= 24 cycles1 per production day
= 24 cycles x 3 liters2
= 72 L of Soya Milk per day
= 72 L x 2 stock pots3
= 144 L or 144, 000 ml per day
= 144,000 milliliters
= 144,000ml / 325ml
= 443.076 or 443 bottles
In calculating the maximum capacity for the whole year as shown in table T3,
the 443 bottles of Soya Milk serves as a multiplicand. This amount is to be added to
itself according to the number of Saturdays in a month. In this case, there are four
(4) Saturdays for the months of April, May, July, September, October, December,
January, and February while five (5) Saturdays for the months of June August and
November. The computation is as follows.
For months with four (4) Saturdays:

= 443 bottles x 4
= 1772 bottles
= 1772 bottles x 10%4
= 177.2 or 177 bottles
= 1772 bottles –177 bottles
= 1,594 bottles per month
= 1,594 bottles per month / 35
= 531 bottles of each flavour
For months having only five (5) Saturdays:
1
Cycles is defined in this section as the number of production repetitions
2
1 cycle = 3 liter of Soya milk (1 liter per grinding)
3
1 stock pot = 3 liter
4
5
Flavor for AYOS! Soya Milk (unsweetened, sweetened and chocolate)
42
= 443 bottles x 5
= 2,215 bottles
= 2,215 bottles x 10%1
= 221.5 or 221 bottles
= 2215 bottles – 221 bottles
= 1,994 bottles per month
= 1,994 bottles per month / 32
= 664.66 or 664 bottles of each flavour
Production Calendar
The number of days for production would be four (4) and five (5) that is in
proportionate to the number of Saturdays for a particular month translated to eight
(8) hours working time. It would equate to thirty two (32) hours for the month of April,
May, July, September, October, December, January, and February while forty (40)
hours for the month of June, August and November respectively. With reference to
the calendar below, the number of working hours is approximately three hundred
and seventy (376) for the whole year of operation.
Working Days for the month of March

Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
Working Days for the month of April
1
2
Flavour for AYOS! Soya Milk (unsweetened, sweetened and chocolate)
43
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
Working Days for the month of May

1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Working Days for the month of June

1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
Working Days for the month of July

1 2 3 4 5
6 7 8 9 10 11 12
16 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
Working Days for the month of August

1 2
44
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31
Working Days for the month of September

1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30
Working Days for the month of October

1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
Working Days for the month of November

1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
Working Days for the month of December

1 2 3 4 5 6
45
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
Working Days for the month of Jan

1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Working Days for the month of Feb

1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
Ingredients, Raw Materials, and Supplies
Table T4. List of Ingredients
Ingredients No. of Supplier Price

Units
Soya Beans 1 kilogram MJ Star Php 36.00/ kilo
Plastic Bottle 330 ml 1 Bechar Php 3.00/ bottle
Plastic Bottle 600ml 1 Bechar Php 4.60/ bottle
Chocolate Powder 1kg Colonnade Mall Php 125.00
Water (H2O) 1 gallon Water refilling station Php 15.00
Sugar 1 kg Y and C Marketing Corp. Php 25.6
Mango Puree 500 ml Colonnade Php 63.00
46
Table T5. List of Supplies1
Supplies No. of Units Supplier Price Total Price

Disposable 1 pair x Nueva Php 6.25 Php 100
Gloves 16 pieces Pharmacy
Scotch Brite 1 set Prince Php 39.95 Php 39.95
(10 pieces) Warehouse (10 pcs)
Dishwashing 1 Prince Php 40.95 Php 40.95
liquid Warehouse
Rag 5 Carbon Php 1.00 Php 5.00
Garbage bag 1 pack Prince Php 109.95 Php 109.95
(10 pieces) Warehouse
LPG 1 Petronas Php 530.00 Php 530.00
Machinery and Equipment

Table T6. List of Machinery and Equipment
Machinery and No. of Supplier Price Total Price per
Equipments Units unit (Php)
1. Stove 1 Prince Warehouse Php 579.00 579.00
2. Heat gun 1 3,280.00 3280.00
3. Soya Milk 1 Ramos 11,250.00 11,250.00
Machine(1/2 horse
power)
4. Blender 2 Metro Colon 680.00 1360.00
5. Cooler 5 Metro Colon 2949.75 14748.75
6. Knives 2 White Gold 32.00 64.00
7. Stock Pot 4 Goco Marketing 799 (set) 799.00
8. Cheese Cloth 1 meter Metro Colon 40.00/meter 40.00
9. Strainer 1 Prince Warehouse 39.95 39.95
10. Plates 5 Prince Warehouse 10.95 54.75
11. Spoons 4 White Gold 5.00 20.00
12. Bowls 2 Ong Kin King 100.00 200.00
13. Measuring 1 set Metro Colon 49.75 49.75
Spoons
14. Measuring Cups 1 set Metro Colon 69.75 69.75
15. Chopping Board 1 Metro Colon Php 32.00 32.00
16. Pot Holder 4 Prince Warehouse 8.95 35.8
1
Refer to appendix for the alternative suppliers
47
17. Hand towels 4 White Gold 19.75 79.00
18. Hair nets 16 Prince Warehouse 6.95 111.2
19. Face Mask 16 Nueva Pharmacy 1.25 20.00
20. Apron 4 SM 49.75 199.00
21. Ladle 2 SM 119.75 239.5
22. Broom 1 White Gold 60.00 60.00
23. Garbage Bin 1 Prince Warehouse 95.99 95.99
24. Dust Pan 1 Prince Warehouse 59.99 59.99
25. Funnel 1 Goco Marketing 5.00 5.00
Total Php 33,492.43
48
Plant Location
Figure T3. Plant Location and Vicinity Map
49
Interior Layout
Plant size: 2’ 1.3” = 2.11 m ; 1’ 9.69” = 1.81 m; Thus 2.11 m x 1.81m
Scale: 1 meter: 1 foot

Figure T4. Interior Plant Design
50
Machinery and Equipment Layout
Scale: 1 meter: 1 foot

Figure T5. Machinery and Equipment Layout
51
Utilities
The venture would allocate three hundred pesos (P300) for water to keep it at
the minimum rate and as for electricity; an average of seven hundred ten pesos
(P710). The expense per month for utilities sums up to one thousand and ten pesos
(P1010).
Waste Disposal
The fibrous residue (okara) can be used as animal feeds in poultry for
supplementary feeding. In addition, it can be a good source of fertilizer for growing
enriched plants. Thus, selling these to farmers, animal feed producers, piggeries and
the like can be profitable.
Another would be the Soya Milk which is about to reach expiration. It can be
further used for different products in baking and cooking for instance since it acts as
a substitute to dairy milk. Other products made from Soya Milk are presented in the
later chapter of this study. Moreover, the unsold milk would be sold to Tofu makers,
Taho makers, and the like.
Direct Labor Requirements

The assigned investors shall be paid according to the agreed direct labor rate
with the consent of the corporate adviser. The investors would be working 8 hours a
day, once a week based on the production calendar. Hourly rate of these workers is
30/hr. which is equivalent to 250/day as based from the minimum daily wage of
workers.
Table T7. Investor Positions and Responsibilities
Position Responsibility
Production Manager Oversees the whole production process and proper
sanitation, makes the TQM check, and inspects each
process for precision and consistency
Asst. Production Manager In charge for each process in production
Preparations Officer Checks the quality of the ingredients, materials, supplies,
machinery and equipments
Bottling/Packaging Officer In-charge of bottling and sealing
Total Quality Management
52
The product was brought to reliable sources for testing. First of the various
tests was the microbial test1 conducted by (DOST) Department of Science and
Technology to see if the product is devoid from any microbial infections. This was
done in compliance to the requirements for the approval of the Bureau of Food and
Drugs (BFAD). The other tests that were done to ensure safety and prove the quality
of the product are presented on the latter part of this aspect. The product would be
tested by DOST as improvements are applied to ensure safety for human
consumption.
The machinery and equipments would be sanitized first every production as
mandated by a DOST chemists. There would only be four (4) workers for time
efficiency and effectivity in production as computed so not to affect also the quality of
the product. The Chief Operations Executive would always be around for TQM
check/control for taste consistency, volume uniformity and packaging. The
Production Manager, on the other hand, would strictly observe the precise
measurements of the ingredients. The bottles would be cleaned thoroughly before
sterilization and transfer.
To maintain the freshness of the product, it should be stored in an average to
cool temperature container or place for the shelf life of the product reaches 12 days
at most since it has no preservatives. In the consignments, any unsold milk 2 days
before its expiration date would be pulled out immediately.
Safety Regulations and Guidelines

The assigned workers in the production process shall be provided with the
following sanitary outfits in the production of AYOS! Soya Milk; Apron, Hairnet, Hand
gloves, and Face Mask. Sanitary and safety precautions signs 2 are posted in
conspicuous areas of the production site. To wit, this is in accordance with the
preceding section.
1
Refer to Appendix S
2
Refer to Appendix O
53
Health Benefits of the Major Ingredients1
Table T8. Major Ingredients and its Nutritional Facts

Major Ingredients Nutritional Facts
 Cholesterol-free
 Contain tocopherols (known commonly as vitamin E),
Soya bean powerful antioxidants that protect cells from damage
 Excellent source of dietary fiber and are gluten-free
 Contain lecithin, a natural blend of phospholipids that
consists of essential nutrients (choline and essential
fatty acids) that play an integral part for brain and
nerve function.
 Excellent source of plant protein
 Contain minerals such as iron, zinc, and potassium, and
isoflavones
 Low in fat, high in protein, fiber and iron, they contain
essential omega-3 fatty acids and are absolutely safe
to eat
 Can reduce the risk of thyroid cancer
 It is lactose-free
Chocolate Syrup
 Rich in magnesium, copper, potassium and manganese.
 There are a number of phytochemicals in cocoa and

chocolate that may have important health effects in
humans such as vitamin C, vitamin D. It has been
recognized for its methyl xanthines caffeine and
theobromine, and, more recently, the antioxidant
flavonoids.
Research and Development
1
Refer to Appendix H
54
This section discusses the various tests the product underwent to ensure
safety and assure the market of its quality. It is presented as follows. Packaging
Integrity Test. This determined the ability of the packaging to maintain and resist
external pressure, stress or condition, which serves as assurance of its integrity.
Composition Test. This presented a more explicit list of nutritional values the product
endows. Furthermore, it also underwent tests in different temperature conditions to
know the limits of the product in reference to the matter. Sensory Test. This utilized
the assessment of the product in conjunction with the sense of taste and smell which
is purely objective.
The various tests were not only used as grounds for technical improvements
but the results were also treated as a medium in formulating marketing strategies of
the venture. The researchers intends to give out monetary resources at the start of
its implementation in investing for more absolute and more accurate tests of the
product. Nevertheless, the researchers was able to generate initial grounds for the
determination the quality and safety of the product. Below are the results of the
various tests condensed in table form for easy comprehension and analysis using
rating scale1 and objective judgement.
Table T9. Product Limit Test
Product Limit Test Conclusions and Comments Rating

Composition Test. Shelf Life Sealed Bottle lasted only for 1 day 1
under Room Temperature
Shelf Life Under Sealed Bottle lasted for 12 days 4
Refrigerator Temperature
Nutritional Value Currently Undergoing Tests
Microbial Test Refer to Appendix S 4
Soya Milk (Sweetened and Unsweetened)
Sensory Test. Appearance Looks Purer and Better than others2 4
1
1-low; 2-needs improvement; 3-satisfactory; 4-good; 5-very good
55
Taste/Flavour Needs improvement. 2
No distinction from others
Texture Smooth yet has minute granules 3
Scent Distinctive smell, smells yummy 4
Soya Milk (Chocolate)
Sensory Test. Appearance Appears like chocolate melted and placed in 3

bottle, improve packaging of product
Taste/Flavour Does not have after taste, pure chocolaty 2

flavour
Texture Smooth yet chocolate was not blended well 3
Scent Distinctive smell, smells like cow’s milk w/ 4

chocolate
Packaging Integrity Test. Empty Bottle

Test involved Rating
Pound on table Passed
2
Other Soya Milk producers
56
Crush w/ hands Failed-Deformed
Sit on it Failed-Deformed
Throw Passed
Hot water Failed-Deformed
Packaging Integrity Test- 330 ml Bottle w/ water

Test involved Rating
Pound on table Passed
Crush w/ hands Passed
Sit on it Passed
Throw Passed
Hot water Deformed
Management Feasibility Study
Proper management is essential for an organization to carry out its goals in

an effective manner. This section examines the organizational framework of the
project and its human resource requirements. The set of guidelines presented are to
be followed accordingly.
Objectives
1. To present the Vision-Mission Statement
57
2. To define the corporate image of the business
3. To describe the form of business ownership
4. To show the organizational structure of the business
5. To discuss the manpower requirements
6. To describe the investment procedures
7. To formulate the organizational policies and ground rules
8. To define the compensation plan of the business
9. To identify the legal requirements
Vision-Mission Statement
Vision
 To become an acknowledged leader in the production of Soya-made
products
 To persistently create a variety of Soya-made products for daily
consumption
 To help build a nourished community
 To be part in the lives of Filipinos as a daily habit for their diet
Mission
Kentron aims to make a difference in the lives of every Filipino
We endeavour to include the line as part of their daily habit
For those who have not tried AYOS!, we would make you taste the benefits
For those who see Soya differently,
We are determined to change their perception
For those who already like AYOS!, we would make you love it even more.
Corporate Image
Kentron is a neophyte in the Soya industry dedicated to satisfy the needs and
wants of their customers. They offer a line made from organic Soya Beans with milk
as its primary product. The company positions itself as producing quality Soya-made
products at reasonable prices. Kentron allots the importance of relentless research
and innovative developments in their service to their market. They conduct business
the right way by being a law-abiding company. The corporation would be
58
environmentally friendly, as they would implement proper waste disposal systems.
They would act as health enthusiast by focusing on keeping its market informed of
the health benefits and advantages of Soya-made products, a strategy designed to
support the main objectives of the business.
Form of Business Ownership

The business would be registered as a sole proprietorship under the name of
the chief executive director, Christian Jude T. Coching. A resolution was presented
to certify that sixteen (16) investors agreed to such registration. Each has ownership
insofar as to the determined amount put in and is entitled to the earnings of the
business only to such extent. This is an ideal form of ownership for this project
because of the scarcity of funds and the inability to cope with the expenses
demanded by a typical corporation.
Capitalization
It would amount to one hundred twenty four thousand six hundred and forty
two pesos (P124, 642). This is due to the expenses that would be incurred for the
machineries, ingredients, equipments, raw materials, and supplies. Each member of
the corporation would be required to have a capital contribution of seven thousand
seven hundred and ninety pesos (P7, 790).
Organizational Structure
The organizational structure of the Corporation is generally hybrid that
incorporates the tall hierarchical and matrix type of organization. Inclusive is the line
form of relationship. Top-level management consists of the Chief Executive Director
and the three Chief Division Executives, which makes up the Board of Directors. An
Executive Treasurer and Secretary were appointed by the Board primarily to serve
top management. The three heads are responsible for their own divisions. They are
to work closely with each other in achieving the goals set out by the Board of
59
Directors. The second level consists of the managers and members of the division.
They carry out the bulk of the operations. Refer further below for the organizational
chart, and the chain of command in decision-making and conflict resolution.
The Chief Executive Director (CED) of whom the Board of Directors has
chosen through vote of confidence, would impose upon his authority, and together
with the three (3) Division executives of the organization shall be all encompassing,
would head Kentron.
The Chief Marketing Executive (CME) is in charge for the conception of
marketing strategies that act as support in consideration of product sales and market
positioning for the business. Under him are the sales manager and the integrated
marketing communications directress. The Chief Operations Executive (COE) is
responsible for the concerns in technical and requirements for production. Reporting
to him are the Productions Manager, the Productions Manager II, the Management
Supervisor, and the Executive Resource Manager. The Chief Finance Executive
(CFE) is in charge of monetary concerns, forecasting, and budget planning. Under
him is the Financial Manager. The Executive Secretary reports directly to the CED
and is responsible for documentation, information dissemination, follow-ups and the
like. The Executive Finance Officer on the other hand is responsible for the
collection and safekeeping of petty cash from the penalties and daily collection of
funds for its corporate activities.
60
Figure MG1- Organizational Structure
61
Manpower Requirements
Like any other businesses, Kentron also needs a work force to keep its
operations going. This portion highlights the requirements for positions in the
organization, functions and responsibilities. Kentron composes of thirteen (13)
corporate positions that are to be filled by its sixteen (16) investors through vote.
Table Mg1. Qualifications and Responsibilities and Requirements
Position Qualifications Functions
- Must have substantial knowledge - Provides overall direction and sees

of all aspects of the organization the status of the business
Chief Executive - Must be eloquent, logical, - Carries out the Vision and Mission
Director decisive Statement of the Business
(CED) - Must have leadership skills -maintains the corporate image of the
-Must be resilient and versatile business
- Must work under pressure -motivates the people in the
-Must be clever, original, and organization
effective -Leads the organization to its best
- Reports to the BOD
- Must have the technical know- - Develops and plans the operations
Chief Operations how needed for Production of the business to maximize
Executive - Capable of Multi-tasking company resources.
(COE) - Must have the initiative - Evaluates the performance of the
- Must be versatile, hard-working operations division
and open minded - Gives periodic report of the Division
to the CED
- Must be creative and be able to - Develops plans and strategies for
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Chief Marketing think of ingenious ideas marketing and sales
Executive (CME) immediately - Evaluates the performance of the
- Must have initiative marketing division
- Must have good communication - Gives periodic report on marketing
skills status to the CED
Sales Manager - Must have know how in sales - Assists the CME in sales planning
- Must be able to work under - Meet sales quota needed for the
pressure business to prosper
- Must have leadership skills - Seeks ways to improve market
- Must have good communication perception of the product
skills - Gives periodic report on marketing
- Must be people oriented status to the CME
Integrated - Must be creative and innovative - Implements IMC plans

Marketing - Must take initiative - Generates IMC Collaterals
Communications - Must have good communication - Seeks ways to improve market
Directress skills perception of the product
- Must be regularly updated of - Gives periodic report on marketing
trends in marketing status to the CME
- Must be marketing-savvy
Productions - Must have the technical know- - Makes sure that production follows
Manager how the Total Quality management
And Productions - Must take initiative guidelines
Manager II - Must be hard-working and - Gives periodic reports on technical
woulding to work extra hours status to the COE
- Must work under pressure
Management - Must know how to manage - Oversees that employees goals and
Supervisor people objectives coincide with that of the
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(MS) - Must take initiative corporation
- Must have human relations skills - Evaluates performance of the
- Must posses people-oriented employees
skills - Does regular checks on the different
departments performance and
relationships
- Monitors and discipline the
behaviour of the employees
- Makes periodic report on the
administrative status to the COE
- Must be people-oriented - Keeps files up-to-date

- Must have good communications - Renders service to the Management
Executive skills Supervisor as Assistant
Resource - Must be hard-working and - Responsible for maintaining peace
Manager woulding to work extra hours and harmony in the corporate office
- Must take initiative - Reports to the MS
- Must have good administrative
skills
- Must have good secretarial skills - Prepares and keeps minutes of

- Must be patient, attentive, corporate meetings
Executive honest, works under pressure, - Submit notes taken to the Executive
Secretary and self-reliant Resource Manager
- Must have excellent command of - Updates CED regarding their
the English Language schedules
as well as that of the corporation
- Must be proficient in Math and - Makes budget schedules and

Chief Finance Accounting implements them
Executive - Must posses budgeting skills - Investigates transactions to ensure
64
(CFE) - Must be logical and decisive safety of corporation’s assets
- Must be honest - Responsible for allocating corporate
funds appropriately
- Makes periodic finance to the CED
For the Financial Manager:

Financial - Must posses financial and - Supports the CFE in every aspect
Manager budgeting skills and activities of financial
And - Must take initiative department
Executive - Must be hard-working and - Makes periodic finance report to the
Finance Officer woulding to work extra hours CFE
- Must have thorough knowledge For the Executive Finance Officer:
in auditing - Collects money that would be used
- Must be honest for corporate purposes as well as
keeping the money
- He/ she must report to the CED
Sales Team - Must have good marketing skills - Serves and Manages as the sales
- Must posses good force with their respective Sales
communication skills Territory of the company
- Must be charming and
persuasive
Investment Procedures
The capital contributions would be made in cash and shall be sourced from
the investor’s own pockets. The capital contributions of each investor would be done
in a staggered basis from February 9 to May 10 of 2008. This method was arrived at
65
a consensus among the members of the board that takes into account the monetary
circumstances of the investors.
Organizational Policies and Ground Rules

The company has its own framework of guidelines that is to be adhered to strictly.
Decision Making
Major decisions such as change in supplier, price changes, and the like shall
be made through consensus of the board and shall be approved by the majority
before execution. The chief executive director shall take care of the minor decisions
such as meetings, distribution of tasks, endorsement of proposed projects and the
like. Moreover, the chief division executives may decide on minor conditions
concerning their respective offices to lessen time consumptions and hassle to the
president. They are mandated to inquire decisions to the president within 12 hours
before execution. Inability to comply such requirement shall subject the concerned to
corporate inquiry.
Delegation of authority
Each head is responsible for planning, organizing, leading, controlling
subordinates and managing their respective divisions to achieve objectives. Proper
chain of command must be observed. The Chief Executive Director and other top-
level executives cannot directly undermine the authority of a particular department
head.
Quotas
All members of the corporation should reach a certain quota per month. An
incentive would be given when one exceeds more than the quota set. If one fails to
comply the requirement, one must be able to cover it the succeeding month.
66
Scheduling of Meetings
Kentron would have regular quarterly meetings for assessment and
evaluation of goals. Moreover, plans would be generated during these meetings.
Schedules of other meetings shall be disseminated at least five (5) days before, with
the exemption of special emergency meetings.
Tardiness
Late persons shall be charged (P50.00) after fifteen minutes of the agreed-
upon time. The corporation shall use the money as petty cash. This policy is
applicable to all corporate and division meetings.
Absenteeism
Absent without valid reason is not excused and would cause a penalty of
(P300.00). One is only excused if he/she informs his division executive three (3)
days before his or her absence, applicable to meetings and production shifts. All
employees are entitled to fifteen (15) days leave of absence with pay. A minimum of
two (2) weeks notice must be given before the said date of absence so that
measures would be taken and an alternate employee can be assigned to take the
workload of the said person.
In and Out of Stocks

The chief operations executive must control everything that goes in and out of
the production site. Any expenses incurred by the members related to the operations
of the corporation would be granted full reimbursement, upon presenting receipts.
Recruitment
The company would only hire one part-time employee. Posters and flyers
placed in identified areas would secure this purpose. Interested applicants are
required to submit an application letter, resume, or bio-data with a 2 x 2 colored
67
picture. They are advised to submit identification documents such as high school
diploma, Barangay, and Police clearance for formality purposes. A one on one
interview with the management supervisor would be done then after
Training and Orientation

The Administration with the aid of Technical division shall be responsible for
the training and orientation in the business. The training shall focus on the proper
procedures of making the Soya-made products. This composes of sanitation and
cleanliness. Orientation composes of the culture of the corporation and a discussion
of the health benefits of Soya.
Company Uniform
The uniform would be a polo t-shirt paired with jeans and rubber shoes. They
are to be worn alternately throughout the week. The schedule would depend on the
colors identifies by the corporation.
Overtime Pay
It is the intention of the management to provide appropriate work conditions to
meet these requirements: Overtime work is authorized; Overtime shall not be less
than one (1) hour and shall be limited to a maximum of five (5) hours beyond the
eight (8) hour workday daily and eight (8) hours during designated rest days, special
days, or regular holidays. Overtime work shall be extended in special circumstances;
All overtime work shall be pre-approved by the administration department; All claims
for overtime work shall be supported by proof of actual hours rendered,
authenticated by the Management Division; Overtime pay shall be in accordance
with the provisions as set forth in the Labor Code in the Philippines:
1. For work performed on ordinary workdays: Plus 25% of the hourly rate.
2. For work performed in excess of eight (8) hours on a scheduled rest day,
a special day/ regular day holiday: Plus 30% of the hourly rates on said
dates.
Holiday Pay
68
The basic wage to which a monthly paid employee is entitled for any regular
holiday or special holiday is an additional of one hundred percent (100%) of his or
her basic wage for the day. Work on a special day follows the Premium Pay Policy.
The requirements for work on holiday are:

 Overtime work shall be authorized only in the following situation:
o If there is disruption in the normal work schedule caused by
overriding request from the management or force majeure.
o If there are special and unforeseen events
 All overtime work shall be pre-approved by the Administration Department
and this includes the punctuality and productivity of the staff.
 All claims for overtime work shall be supported by proof of actual hours
rendered, authenticated by Administration Department.
 Holiday Pay rate shall be in accordance with the provisions of the Labor
Code of the Philippines.
o For the work performed on a regular holiday, Plus 100% of the daily
basic rate or a total of 200%.
o For work performed on regular holiday rate of 200%, based on his
daily basic wage rate or a total of 230%.
o For work performed on regular holiday pay of a monthly-paid
employee is already included in his basic monthly salary, so
compensation should be excluded in this amount.
An employee who is required by or gets an approval by the Administration
Department to report for work on a regular holiday shall first accomplish two (2)
copies of Authorization for Overtime Work and submit to the latter at least one (1)
day before holiday. Overtime work without prior approval would not be paid. The
Administration Department who requires overtime shall sign the Authorization of
Overtime Work and submit the copies to the Vice President of Finance within two (2)
working days after the overtime had been rendered and shall further indicate the
actual start and end of the overtime work.
69
Sick Leave
All employees are entitled to five (5) days sick leave with pay. A sick leave
can only be availed if and only if the employee is sick or is not feeling well. A medical
certificate should be presented for the sick leave to be credited otherwise the
employee would be considered Absence without Leave (AWOL).
Tardiness
Our company is very strict and particular when it comes to its policies
especially regarding tardiness and offenses. Our time in is 8:30 a.m. and time out is
5:30 pm, employees should arrive on or before 8:00 a.m., however:
o An allowance of ten (10) minutes is given, beyond ten (10) minutes the
employee is considered late or tardy.
o Tardiness for three (3) times is equivalent to one (1) absence without
pay
o Three (3) absences is equivalent to one (1) week suspension without
pay
If an employee commits an offense, the following actions are to be taken:
First offense: Verbal warning
Second offense: Written warning would be given and promissory note would be
required
Third offense: One-week suspension without pay
Fourth offense: Termination from the company or forced resignation
Employee-Management Relations
1. Everyone in the business shall respect each other since all are individuals
and shall have the right to be respected.
2. Honesty, teamwork and proper work conduct would be observed and
maintain all the time
3. Kentron welcomes suggestions and recommendations not only from its staffs
but also most especially from customers.
70
4. Smoking, drinking of alcoholic beverages and any other form of vices are not
welcome inside business premises at all times.
5. Kentron would be using recyclable materials through its operations.
Safety and Health

In the workplace, certain precautions are to be followed like:
1. All workers should wear proper uniform.
2. In the workplace, a medicine kit must be made available for emergency use.
3. Reminder signs must be located near hazardous places like where electric
wires are located, wet floor and other similar circumstances.
4. A certification of approval from the respective government agencies or
organizations must be displayed.
Compensation
Every good business has its own ways of compensating employees.
Compensation has two important elements. The first element is salary while second
is the fringe benefits. Both are used to motivate employees and keep the operations
going in a smooth direction. Further discussion is presented as follows:
Salary
Since the business is just starting, we would hire only one part time worker.
His/her salary would be given on the 15 th and 30th day of the month. The investors
however shall not receive salary but instead would be compensated based on
reward system.
Fringe Benefits
The business shall give its employees these benefits. The governments have
mandated private and even government businesses to provide such benefits. These
fringe benefits include Social Security Services, and Philhealth contributions. Social
Security Services (SSS) on the other hand provides safety and security advantages
for the employees. Philhealth gives free hospitalization and cheap medicines for
employees in case of emergencies. This would cost the employer seven hundred
71
pesos (Php 700.00) and two hundred fifty pesos (Php 250.00) respectively. These
benefits may encourage employees to work hard and stay long in the company.
Legal Requirements
Business Permit
This is the most imperative of all for law mandates it. Without this, the
business cannot process any other permits thereon. The municipal or city
government issues business permits. Thus, the Administrative Department would
take charge in processing these documents.
Sanitary Permit
This permit is secured in the City Health Office to justify that the facilities and
production of the business is clean and free from any harmful elements.
Bureau of Foods and Drugs Permit

Since the product is categorized as food, the business needs to register with
the Bureau of Foods and Drugs to prove that it is safe for human consumption.
Bureau of Internal Revenue Permit

This permit is necessary to show that the business would religiously pay
taxes mandated by law.
Financial Feasibility Study
72
This aspect focuses on the management of the monetary resources of the
venture. Included in this section is the information on total project cost, financial
requirements, and desired profit of the proposed project. In view on the expressed
assumptions, this study hopes to present the financial benefits of pursuing the
project.
Objectives of the Study

1. To present the total project cost of the study in relation to
a. The initial capital requirements needed to be raised and
b. The appropriate sources of financing to fund the business
2. To provide the projected financial statements for the twelve months
operations and the next five (5) years
a. Projected Income Statement
b. Projected Cash Flow
c. Projected Balance Sheet
3. To analyze the viability of the project through financial ratios such as:
i. Profitability Ratio
ii. Activity Ratio
4. To present the break-even analysis
5. To determine the payback period of the investment
Total Project Cost
73
The estimated total project cost (TPC) is the summary of the approximate
investment of a particular project from the time it was conceived to the start of
commercial operation. The Estimated Total Project Cost amounted to one hundred
seven thousand one hundred seventy four pesos and thirty (Php107,174.34). This is
inclusive of the Pre-operating Expenses, Working Capital, and Contingencies. The
pre-operating expenses amounted to eighty two thousand nine hundred forty seven
pesos (Php 82,947.06) which comprises of materials and equipment cost,
promotions and advertising expenses, raw material and supplies expenses, labor
cost, and maintenance cost. Shown below is the detailed breakdown of licenses and
permits fees.
Table F1 - Licenses and Permit Fees
Licenses and Permits Fees

Business Permit 1,500.00
BIR 600.00
DTI 315.00
BFAD 500.00
Total Php2,915.00
The machinery and equipment; and raw materials and supplies expenses
were arrived in reference to the data presented in the technical aspect, which totals
to (P33,492.43) and (P2,121.63) respectively. The promotions and advertising
expense have a forty thousand peso allotment (Php 40,000.00) since the business
needs well established mediums to create favourable market reception for a highly
perishable product.
Table F2. 1st Quarter - Advertising and Marketing Expense

Job Out Cost Quantity Amount
74
Tarpaulins 200 300 6 units 2000.00
Poster 200 100 10 pcs 1200.00
Business Card 200 300 250 500.00
Label 300 300.00
Bookmark 200 1000 1200.00
Sticker 200 500 700.00
Subtotal 5600.00
Contingency 1,400.00
Total Php7,000.00
The labor cost would be on a part-time wage basis wherein the workers would
be paid below the minimum wage requirement, which amounts to two thousand
pesos (Php2000), fringe benefits excluded. The maintenance cost of two thousand
pesos (Php2000) is for the safeguarding and preservation of the fixed assets.
Working capital, six thousand three hundred and sixty four pesos (Php 6,364.89),
was computed by multiplying the raw materials and supplies expenses by three to
support the first quarter of operations. In addition, it would also cover other
operational activities to be incurred during the course of the business. Contingency
is set at twenty percent (20%) of the sub-total giving seventeen thousand eight
hundred and sixty two pesos (P17,862.39) to cover any unforeseen and
underestimated expenses. The estimated total project cost of the study is one
hundred seven thousand one hundred and seventy four (P107,174.34).
Table F3. Total Project Cost
Pre-Operating Expenses:
Project Feasibility Study 418.00
75
Licenses and Permits 2,915.00
Machinery and Equipment Cost 33,492.43
Promotions and Advertising Expense 40,000.00
Raw Materials and Supplies Expense 2,121.63
Labor Cost 2,000.00
Maintenance Cost 2,000.00 82,947.06
Working Capital1 6,364.89
Sub-total 89,311.95
Contingencies (20%) 17,862.39
Total Project Cost Php107,174.34
Initial Capital Requirements

This section was determined after the computation of the total project cost.
The amount of cash is to be equally divided and contributed among the investors.
However, the investors agreed to add seventeen thousand four hundred sixty-eight
pesos (P17, 468.00) to grant allowances for product testing, food improvements,
marketing activities, and corporate social responsibilities that were not included in
the Total Project Cost computation. Thus, the total initial capital requirement would
be one hundred twenty four thousand six hundred forty-two pesos and thirty-four
centavos (Php 124,642.34).
Sources of Financing
The primary source of funds would come from the sixteen (16) investors.
Each member of the corporation would contribute seven thousand seven hundred
ninety pesos (P7, 790.15). This was arrived by dividing the TPC by sixteen. The
researchers are not considering any external financing and would equally share any
profit or loss as agreed. Table F4 illustrates the Initial Capital Requirement of each
investor. It was decided through consensus that the investment be made in
staggered basis in consideration for those investors who see such requirement as a
monetary burden. It shall be divided into four (4) months starting February until May;
each investor must give one thousand nine hundred forty seven pesos and fifty-four
centavos (Php 1,947.54) every second Saturday of each month to arrive at each
1
Raw Materials and Supplies Expense x 3 months (1st Quarter)
76
investor’s initial investment of (Php 7,790.15). It is expected that one has fully paid
on or before May 10, 2008.
Table F4. Initial Investment per Incorporator
Names of Investors Amount

Balce, Maria Theresia Php 7,790.15
Canonigo, Ciprianne Teo 7,790.15
Chua, Stephen 7,790.15
Coching, Christian Jude 7,790.15
Diores, Daniel 7,790.15
Frio, Patrick 7,790.15
Labus, Krisfaye Grace 7,790.15
Lim, Dwight David 7,790.15
Limtin, Valerie Marie 7,790.15
Lintogonan, Aidylme 7,790.15
Magallanes, Roji May 7,790.15
Medida, Doreen 7,790.15
Morata, Naome 7,790.15
Parawan, Eunice 7,790.15
Pepito, Kimverly Krystle 7,790.15
Tan, Alfred Edison 7,790.15
Total Php 124,642.34
Financial Assumptions
1. Sales period is April 2008 to February 2009.

2. The product has a mark-up of 20%
3. Fixed cost is (P23,153.62) per month. It consists of rent, utilities, research &
development, salaries and wages, fringe benefits, transportation expense,
miscellaneous expense, registration renewal, and marketing & advertising
expense.
* three flavours are assumed to have an equal share in market demand.
* Fixed Cost also has an equal share.
77
* Selling price has 20% mark-up based on variable cost per unit and fixed cost
per unit.
* Fixed cost per unit was derived from maximum capacity of monthly
production.
Table F5. Fixed Costs per Flavour
Fixed
Monthly Flavors Demand Cost Number Fixed Cost
Fixed per of bottles per Bottle
Cost Flavour
10,950.0 unsweetened 33.33% 3,649.64 500.00 7.30

0
Sweetened 33.33% 3,649.64 500.00 7.30
Chocolate 33.34% 3,650.73 500.00 7.30
4. Table F6. Variable Cost per bottle of 330 ml AYOS! Soya Milk (Unsweetened)
Ingredients and Cost in Pesos

Raw Materials (Php)
Soya Beans 1.00
Plastic Bottle 330 ml 3.00
Water 1.00
Label 4.50
Plastic Seal .20
Total 9.70
78
Table F7. Variable Cost per bottle of 330 ml AYOS! Soya Milk (Sweetened)

Raw Materials (Php)
Soya Beans 1.00
Water 1.00
Sugar 1.89
Label 4.50
Plastic Seal .20
Total 11.59
Table F8. Variable Cost per bottle of 330 ml AYOS! Soya Milk (Chocolate)

Raw Materials (Php)
Soya Beans 1.00
Water 1.00
Sugar 1.89
Chocolate 3.00
Label 4.50
Plastic Seal .20
Total 14.59
5. Operation is 24 days in a month, 6 days a week.

6. The refrigerator, heat gun, blenders, and grinding machine are depreciated
over five (5) years using straight-line method.
79
7. Working capital, (P6, 364.89), was computed by multiplying the raw materials
and supplies expenses by three, monthly operation-allowance.
8. A 20% contingency would be based on the sub-total.
9. Salary is computed through part-time system wherein the worker would get
their wage lower than the minimum rate.
10. Periodic system is used for inventory valuation.
11. Sales are based on the prices and production
12. Taxes would be computed at the end of the year.
13. The business would purchase by cash. It shall have no liabilities.
Financial Statements
Projected Income Statement
Sales. The computation was based on projected peso sales and sales volume
presented in the marketing aspect. The computation of annual sales for the years
(2009-2013) is based on the annual population growth of Cebu City.
Cost of Goods Sold. It was computed by adding the beginning finished goods
inventory and cost of goods manufactured and subtracting the ending finished goods
inventory. In March, the COGS is projected to be two thousand and fifty-two pesos
(P2,052.60). Projected COGS is based on the variable costs of the units to be
produced per month.
Gross Profit. It was calculated by subtracting sales from the cost of goods
sold. For the first month, it is calculated as follows:
Sales 30,721.50
Cost of Goods Sold 16,146.00
Gross Profit 14,575.50
80
Operating Expenses. This covers administrative, marketing and other
expenses. The monthly income statements include Rent, Utilities, Research and
Development, Salaries, Fringe Benefits, Transportation, Miscellaneous, Annual
Registration Renewal and Marketing Expenses.
Rent. It comprises the location of the production site and the rental of the
vehicle to be used for the delivery of the products from the commissary to the
consignees.
Research and Development Expense is given a monthly budget of two

hundred pesos (Php 200.00). This is in line with the new flavours and toppings for
the Soya Milk.
Salaries are computed based on having one (1) employee, being paid below
the minimum wage of Php 241.00 per day. The computation of salaries is based on
part-time system wherein the working hours of the employees would be lesser than
eight (8) consecutive hours. Therefore, it would be based on the number of hours
they work. The salary the employee would be receiving would be two thousand
pesos (Php 2,000). Fringe Benefits excluded, Salaries distributed every 15 days and
No work, no pay policy would be applied strictly.
Fringe Benefits would amount to seven hundred pesos (Php 700.00) and two
hundred fifty pesos (Php 250.00) for SSS and Phil Health respectively. This expense
would therefore total to (Php 950.00).
Transportation Cost is calculated by multiplying the estimated transportation

cost per week from commissary to consignees, Php 500.00 by two (2) people. These
people are those that would deliver the products to the consignees through a P.U.V,
P.U.J, or private vehicle. The researchers agreed to utilize their private vehicle to
secure the quality of the products to be delivered. The transportation cost would then
be multiplied by the number of weeks per month.
Php 500/ week x 4 weeks in 1 month = Php 2,000.00.
81
Miscellaneous Expenses covers the expenses that are unexpected or
unplanned in the operation. A budget of (Php 500.00) every month would be
provided.
Registration Renewal the expense would amount to one thousand five

hundred pesos (Php 1,500). This allotment would be for the Mayor’s Permits that is
to be collected every January. Other registration renewal expenses are reflected on
the projected annual income statement.
Marketing Expenses includes any expense made for advertising and

promotions. It is given a budget of Php 5,600.00 for the month of March, Php
7,000.00- allowance for additional promotions and advertising for the month of April,
and Php 1,500.00 for the next two quarters of operations.
Income before Taxes is computed by subtracting the gross profit with the total
operating expense. In the month of April, this equals to five thousand seventy five
pesos and fifty centavos (Php 5,075.50 ).
Taxes are computed based on sole proprietorship. The tax is applied on the
net income at the end of the year, and shall be paid only at the end of the year. The
registered owner of the business is single, and is therefore entitled to a Php 20,000
taxable income deduction. Computation for the tax amount is provided by the
schedule as provided by the Bureau of Internal Revenue (BIR).
Table F9. Income Tax Schedule for Sole Proprietorship
Income Fixed Tax Percentage In Excess of

Before Tax
0-10,000 0 5%
10,000-30,000 500 10% 10,000
30,000-70,000 2,500 15% 30,000
70,000-140,000 8,500 20% 70,000
140,000-250,000 22,500 25% 140,000
250,000-500,000 50,000 30% 250,000
500,000 125,000 32% 500,000
82
83
Table F10A. Computation of the Monthly Projected Income Statement 1
March April May June July August

Sales 30,721.50 30,721.50 30,721.50 30,721.50 32,086.90
Less: Cost of Goods Sold 2,052.60 16,146.00 16,146.00 16,146.00 16,146.00 16,863.60
Gross Profit/Loss -2,052.60 14,575.50 14,575.50 14,575.50 14,575.50 15,223.30
Less: Operating Expenses
Rent 3,000.00 3,000.00 3,000.00 3,000.00
Utilities 1,000.00 1,000.00 1,000.00 1,000.00
R&D 200.00 200.00 200.00 200.00 200.00
Salaries and Wages 2,000.00 2,000.00 2,000.00 2,000.00
SSS Contribution 700.00 700.00 700.00 700.00
Phil Health 250.00 250.00 250.00 250.00
Transportation Expense 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00
Miscellaneous Expense 500.00 500.00 500.00 500.00 500.00
Registration Renewal - - - -
Marketing and Advertising 5,600.00 7,000.00 1,500.00
Expense
Total Operating Expenses 5,600.00 9,500.00 9,450.00 11,450.00 9,450.00 9,950.00
Income/Loss Before Taxes -7,652.60 5,075.50 5,125.50 3,125.50 5,125.50 5,273.30
Less: Taxes 15% 761.33 768.83 468.83 768.83 791.00
Net Income/Loss -7,652.60 433.3 2,841.51 2,246.51 2,841.51 3,251.06
1
-the income statement is based on the peso sales and sales volume
84
Table F10B. Computation of the Monthly Projected Income Statement (continuation)
Septembe October November December January February
r
Sales 32,086.90 32,086.90 33,452.30 33,452.30 33,452.30 33,452.30
Less: Cost of Goods Sold 16,863.60 16,863.60 17,581.20 17,581.20 17,581.20 17,581.20
Gross Profit/Loss 15,223.30 15,223.30 15,871.10 15,871.10 15,871.10 15,871.10
Less: Operating Expenses
Rent 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Utilities 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
R&D 200.00 200.00 200.00 200.00 200.00 200.00
Salaries and Wages 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
SSS Contribution 700.00 700.00 700.00 700.00 700.00 700.00
Phil Health 250.00 250.00 250.00 250.00 250.00 250.00
Transportation Expense 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00
Miscellaneous Expense 500.00 500.00 500.00 500.00 500.00 500.00
Registration Renewal - - - - 1,500.00 -
Marketing and Advertising Exp - 1,500.00
Total Operating Expenses 9,450.00 9,450.00 10,950.00 9,450.00 10,950.00 9,450.00
Income/Loss Before Taxes 5,773.30 5,773.30 4,921.10 6,421.10 4,921.10 6,421.10
Less: Taxes 15% 866.00 866.00 738.17 963.17 738.17 963.17
Net Income/Loss 4,907.31 4,907.31 4,182.94 5,457.94 4,182.94 5,457.94
85
Table F11 - Computation of the 5-Year Projected Income Statement 1
2008 2009 2010 2011 2012 2013
Sales 352,955.90 409,620.00 417,812.40 426,168.65 434,692.02 443,385.86
Less: Cost of Goods 187,552.2 215,280. 219,585. 223,977. 228,456.8 233,026.
Sold 0 00 60 31 6 00
Gross Profit 165,403.70 194,340.00 198,226.80 202,191.34 206,235.16 210,359.87
Less: Operating Exp
Rent 30,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Utilities 10,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
R&D 2,200.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Salaries and Wages 20,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00
SSS Contribution 7,000.00 8,400.00 8,400.00 8,400.00 8,400.00 8,400.00
Phil Health 2,500.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Transportation Exp 19,800.00 21,600.00 21,600.00 21,600.00 21,600.00 21,600.00
Miscellaneous Exp 5,500.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Reg. Renewal 1,500.00 1,500.00 1,501.00 1,502.00 1,503.00 1,504.00
Marketing Expense 15,600.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Total Operating Exp 114,100.00 126,900.00 126,901.00 126,902.00 126,903.00 126,904.00
Income Before Taxes 51,303.70 67,440.00 71,325.80 75,289.34 79,332.16 83,455.87
Less: Taxes 15% 7,695.56 10,116.00 10,698.87 11,293.40 11,899.82 12,518.38
Net Income 43,608.15 57,324.00 60,626.93 63,995.94 67,432.34 70,937.49
1
-annual projection of sales on income statement is based on annual peso sales and sales volume. The years 2009-2013 has
2% increase rate that is based on annual total population of Cebu City rate.
86
Projected Cash Flow Statement
In the projected cash flow statement, the business entity gains positive cash
ending in an increasing manner from the start of operations due to a positive net
income as reflected in the projected income statement.
The investors have agreed that there would be a four-time distribution of
investment that falls in the months of February, March, April, and May prior to the
pre-operations of the business. This is to lessen the expenses of the investors in
continuing the project. As such, this would also enable the business to utilize the
remaining cash of the previous month as shown in the cash flow statement. No
withdrawals would be made for their investments. Profits made during operations
would be ploughed back to support the operating expenses and some would be
reserved for future expansion of the business.
The pre-operating costs reflected on the investing activities would include the
licenses and permits fees. It also includes the acquisition costs of machineries, tools,
and equipments; marketing expenses; and project study.
87
Pre- March April May June July
operating
Cash Flow from Operating Activities:
Net Income - -7,652.60 433.30 4,356.68 3,081.68 4,356.68
Less: Depreciation Expense1 733.33 3,044.77 5,500.55 5,522.18 4,992.84 4,514.35
Increase/Decrease in Inventory2 150 195.00 253.50 329.55
Net Cash from Operating Activities (4,607.83) 6,083.85 10,073.86 8,328.02 9,200.58
Cash Flow from Investing Activities:

Pre-operating costs (33,492.43) (4,764.60)
Net Cash used in Investing activities (33,492.43) (4,764.60)
Cash Flow from Financing Activities:

Investment by owners 34,910.59 34,910.59 34,910.59 34,910.59
Net Cash from Financing Activities 34,910.59 34,910.59 34,910.59 34,910.59
Net Increase/Decrease in Cash 1,418.16 30,302.76 36,229.84 44,984.45 8,328.02 9,200.58

Add: Cash Beginning 1,418.16 31,720.92 67,950.76 112,935.21 121,263.22
Less: Withdrawal of owners
Cash Ending 1,418.16 31,720.92 67,950.76 112,935.21 121,263.22 130,463.80
Table F12A. Computation of the Monthly Cash Flow
1
- depreciation expenses is calculated by dividing the machines and equipments of both AYOS! Soya Milk by 12(months) and subtracting it to the value
2
- Inventory is calculated based on the monthly production minus the sales volume, and multiplied by 30% spoilage
88
Table F12B. Computation of the Projected Monthly Cash Flow (continuation)
August September October November December January February
Net Income 4,907.31 4,907.31 4,907.31 4,182.94 5,457.94 4,182.94 5,457.94
Less: Depreciation Expense 4,081.82 3,690.82 3,337.37 3,017.83 2,728.96 2,467.81 2,231.69
Increase/Decrease in Inventory 428.42 556.94 724.02 941.23 1,223.60 1,590.67 2,067.88
Net Cash from Operating Activities 9,417.5 9,155.06 8,968.70 8,141.99 9,410.49 8,241.42 9,757.50
4

Pre-operating costs
Net Cash used in Investing activities
Cash Flow form Financing Activities:

Investment by owners
Net Cash from Financing Activities
Net Increase/Decrease in Cash 9,417.5 9,155.06 8,968.70 8,141.99 9,410.49 8,241.42 9,757.50
4
Add: Cash Beginning 130,463.8 139,881.34 149,036.40 158,005.10 166,147.09 175,557.58 183,799.00
0
Less: Withdrawal of owners - -
Cash Ending 139,881.34 149,036.40 158,005.10 166,147.09 175,557.58 183,799.00 193,556.50
89
Table F13. Computation of the Projected Annual Cash Flow
2008 2009 2010 2011 2012 2013
Net Income 43,608.15 57,324.00 60,626.93 63,995.94 67,432.34 70,937.49
Less: Depreciation Expense 2,231.69 2,018.23 1,850.04 1,695.87 1,554.55 1,425.00
Increase/Decrease in Inventory1 8,460.80 5,850.00 7,605.00 9,886.50 10,084.23 10,285.91
Net Cash from Operating Activities 49,837.26 61,155.77 66,381.89 72,186.57 75,962.02 79,798.40

Pre-operating costs (38,257.03)
Net Cash used in Investing activities (38,257.03)
Cash Flow from Financing Activities:

Investment by owners 139,642.00
Net Cash from Financing Activities 139,642.00
Net Increase/Decrease in Cash 151,222.23 61,155.77 66,381.89 72,186.57 75,962.02 79,798.40

Add: Cash Beginning 151,222.23 212,378.00 278,759.89 350,946.45 426,908.47
Less: Withdrawal of owners
Cash Ending 151,222.23 212,378.00 278,759.89 350,946.45 426,908.47 506,706.87
1
-annual inventory has increase rate of 30% (spoilage, damage, and additional inventory) from 2009 to 2013.
90
Projected Balance Sheet
Current Assets include cash as well as other assets expected to be converted
into cash for less than a year. The business current assets are Cash, Inventory, and
Account Receivable. Business’ current assets on the month of March is Php
31,720.92.
Non-Current Assets are assets with the business are divided into two, namely
the refrigerator, machineries and equipments.
Accumulated Depreciation is the sum of all previous depreciation amounts
charged to non-current assets. The business depreciates the stall, Soya machine
grinder, heat gun, refrigerator and blender using the 5-year straight-line method.
Below is the illustration of the computation of accumulated depreciation.
Total Assets is the sum of all current and non-current assets. For the month
of March operations the total assets of the business is Php 70,983.55 and at the end
of the first year is Php 210,701.04
Capital reflects the total capital contributed by the owners. This includes the
cash contribution and capital contribution. This amount is then increased or
decreased by the Net Income or Net Loss, to derive at the Total Owner’s Equity.
Table F14. Depreciation Table
Month of March
Non-Current Assets Value (Php) Salvage Ending value
value/month
Machineries & 33,492.43 3,044.77 30,447.66
Equipments
Refrigerator 2,750.00 229.17 2,520.83
Succeeding Months
Non-Current Assets Value (Php) Salvage Ending Value

value/month
Machineries & Equipments 30,447.66 2,537.31 27,910.35
Refrigerator 2,520.83 210.07 2,310.76
Value (Php) Salvage Ending Value
value/year
Machineries & Equipments 11,691.76 974.31 10,717.45
Refrigerator 967.99 80.67 887.32
91
Table F15A - Computation of the Projected Monthly Balance Sheet
Pre- March April May June July
operating
ASSETS
Current Assets
Cash1 1,418.16 31,720.92 13,590.15 22,587.04 24,252.64 26,092.76
Inventory-End2 0 0 150 195 253.5 329.55
Accounts Receivable3 0 0 54,360.61 90,348.16 97,010.58 104,371.04
Total Current Assets 1,418.16 31,720.92 68,100.76 113,130.21 121,516.72 130,793.35
Non-Current Assets
Machineries & Equip 33,492.43 30,701.39 28,142.94 25,797.70 23,647.89
Refrigerator 3,000.00 2,750.00 2,520.83 2,310.76 2,118.20 1,941.68
Less: Accumulated Dep4 250.00 3,020.20 2,768.52 2,537.81 2,326.32 2,132.46
Total Non-Current Assets 3,250.00 39,262.63 35,990.75 32,991.52 30,242.22 27,722.04
Total Assets 4,668.16 70,983.55 104,091.51 146,121.72 151,758.94 158,515.38
OWNERS' EQUITY
Capital 4,668.16 70,983.55 111,744.11 145,688.42 147,402.27 155,433.71
Add: Net Income -7,652.60 433.30 4,356.68 3,081.68
Total Owners' Equity 4,668.16 70,983.55 104,091.51 146,121.72 151,758.94 158,515.38
1
- cash is 20% of cash flow statement’s cash ending
2
- inventory is based on the cash flow statement’s inventory
3
- accounts receivable is 80% of cash flow statement’s cash ending
4
- accumulated depreciation is based on the non-current assets’ salvage value
92
Table F15B - Computation of the Projected Monthly Balance Sheet (continuation)
August September October November December January February

ASSETS
Current Assets
Cash 27,976.27 29,807.28 31,601.02 33,229.42 35,111.52 36,759.80 38,711.30
Inventory-End 428.415 556.9395 724.02135 941.22775 1223.5960 1590.6749 2067.8773
5 8 1 8
Accounts Receivable 111,905.07 119,229.12 126,404.08 132,917.67 140,446.06 147,039.20 154,845.20
Total Current Assets 140,309.75 149,593.34 158,729.12 167,088.32 176,781.18 185,389.67 195,624.38
Non-Current Assets
Machineries & Equip 21,677.23 19,870.80 18,214.90 16,696.99 15,305.57 14,030.11 12,860.93
Refrigerator 1,779.88 1,631.55 1,495.59 1,370.96 1,256.71 1,151.99 1,055.99
Less: Accumulated Dep 1,954.76 1,791.86 1,642.54 1,505.66 1,380.19 1,265.17 1,159.74
Total Non-Current Assets 25,411.87 23,294.21 21,353.03 19,573.61 17,942.48 16,447.27 15,076.66
Total Assets 165,721.62 172,887.55 180,082.15 186,661.93 194,723.65 201,836.94 210,701.04
OWNERS' EQUITY
Capital 161,364.94 167,980.25 175,174.84 181,754.62 190,540.72 196,379.01 206,518.11
Add: Net Income 4,356.68 4,907.31 4,907.31 4,907.31 4,182.94 5,457.94 4,182.94
Total Owners' Equity 165,721.62 172,887.55 180,082.15 186,661.93 194,723.65 201,836.94 210,701.04
93
Table F16 - Computation of Projected Annual Balance Sheet
2009 2010 2011 2012 2013 2014

ASSETS
Current Assets
Cash 30,244.45 42,475.60 55,751.98 70,189.29 85,381.69 101,341.37
Inventory-End 8,460.80 5,850.00 7,605.00 9,886.50 10,084.23 10,285.91
Accounts Receivable 120,977.78 169,902.40 223,007.91 280,757.16 341,526.78 405,365.50
Total Current Assets 38,705.25 48,325.60 63,356.98 80,075.79 95,465.92 111,627.29
Non-Current Assets
Machineries & Equip 11,691.76 10,717.44 9,824.32 9,005.63 8,255.16 7,567.23
Refrigerator 967.99 887.32 813.38 745.60 683.46 626.51
Less: Accumulated Dep 1,063.10 967.06 886.48 812.60 744.89 682.81
Total Non-Current Assets 12,659.75 11,604.77 10,637.70 9,751.23 8,938.63 8,193.74
Total Assets 51,364.99 59,930.37 73,994.68 89,827.02 104,404.55 119,821.03
OWNERS' EQUITY
Capital 7,756.85 2,606.37 13,367.75 25,831.08 36,972.21 48,883.54
Add: Net Income 43,608.15 57,324.00 60,626.93 63,995.94 67,432.34 70,937.49
Total Owners' Equity 51,364.99 59,930.37 73,994.68 89,827.02 104,404.55 119,821.03
94
Table F17A. Return on Sales (Monthly Computation)
Return on Sales Computation

Net Income -7,652.60 433.3 2,841.51 2,246.51 2,841.51 3,251.06
Sales 30,721.50 30,721.50 30,721.50 30,721.50 32,086.90

Return on Sales 1.41% 9.25% 7.31% 9.25% 10.13%
Table F17B. Return on Sales (Monthly Computation)


September October November December January February
Net Income 4,907.31 4,907.31 4,182.94 5,457.94 4,182.94 5,457.94
Sales 32,086.90 32,086.90 33,452.30 33,452.30 33,452.30 33,452.30

Return on Sales 15.29% 15.29% 12.50% 16.32% 12.50% 16.32%
Table F18A. Gross Profit Margin (Monthly Computation)

Gross Profit Margin Computation

Gross Profit -2,052.60 14,575.50 14,575.50 14,575.50 14,575.50 15,223.30
Sales 30,721.50 30,721.50 30,721.50 30,721.50 32,086.90

Gross Profit Margin 47.44% 47.44% 47.44% 47.44% 47.44%
Table F18B. Gross Profit Margin (Monthly Computation)
95

Gross Profit 15,223.30 15,223.30 15,871.10 15,871.10 15,871.10 15,871.10
Sales 32,086.90 32,086.90 33,452.30 33,452.30 33,452.30 33,452.30

Gross Profit Margin 47.44% 47.44% 47.44% 47.44% 47.44% 47.44%
Table F19A. Return on Assets (Monthly Computation)

Return on Assets Computation

Net Income -7,652.60 433.3 2,841.51 2,246.51 2,841.51 3,251.06
Total Assets 70,983.55 104,091.51 146,121.72 151,758.94 158,515.38 165,721.62

Return on Asset -10.78% 0.42% 1.94% 1.48% 1.79% 1.96%
Table F19B. Return on Assets (Monthly Computation)


Net Income 4,907.31 4,907.31 4,182.94 5,457.94 4,182.94 5,457.94
Total Assets 172,887.55 180,082.15 186,661.93 194,723.65 201,836.94 210,701.04

Return on Asset 2.84% 2.73% 2.24% 2.80% 2.07% 2.59%
Table F20A. Return on Equity (Monthly Computation)

Return on Equity Computation
96

Net Income -7,652.60 433.3 2,841.51 2,246.51 2,841.51 3,251.06
Total Equity 70,983.55 104,091.51 146,121.72 151,758.94 158,515.38 165,721.62

Return on Equity -10.78% 0.42% 1.94% 1.48% 1.79% 1.96%
Table F20B. Return on Equity (Monthly Computation)


Net Income 4,907.31 4,907.31 4,182.94 5,457.94 4,182.94 5,457.94
Total Equity 172,887.55 180,082.15 186,661.93 194,723.65 201,836.94 210,701.04

Return on Equity 2.84% 2.73% 2.24% 2.80% 2.07% 2.59%
Table F21A. Asset Turnover Ratio (Monthly Computation)

Asset Turnover Ratio Computation

Sales 30,721.50 30,721.50 30,721.50 30,721.50 32,086.90
Total Assets 70,983.55 104,091.51 146,121.72 151,758.94 158,515.38 165,721.62

Asset Turnover Ratio 0.00 0.30 0.21 0.20 0.19 0.19
Table F21B. Asset Turnover Ratio (Monthly Computation)

Asset Turnover Ratio Computation

97
Sales 32,086.90 32,086.90 33,452.30 33,452.30 33,452.30 33,452.30
Total Assets 172,887.55 180,082.15 186,661.93 194,723.65 201,836.94 210,701.04

Asset Turnover Ratio 0.19 0.18 0.18 0.17 0.17 0.16
Table F22A. Inventory Turnover Ratio (Monthly Computation)

Inventory Turnover Ratio Computation

COGS 2,052.60 16,146.00 16,146.00 16,146.00 16,146.00 16,863.60
Inventory 0 150 195.00 253.50 329.55 428.42

Inventory Turnover 107.64 82.80 63.69 48.99 39.36
Table F22B. Inventory Turnover Ratio (Monthly Computation)


COGS 16,863.60 16,863.60 17,581.20 17,581.20 17,581.20 17,581.20
Inventory 556.94 724.02 941.227755 1223.59608 1590.67491 2067.87738
Inventory Turnover 30.28 23.29 18.68 14.37 11.05 8.50
98
Financial Statement Analysis
Profitability Ratio
The profitability ratio assesses the performance of the company based on its
financial statements. The following ratios are being projected: Return on Sales,
Gross Profit Margin, Return on Asset, Return on Equity and Operating Profit Margin.
The return of sales measures the percentage of sales on net income. The
calculation of return on sales is illustrated below.
Formula: Return on Sales = Net Income
Sales
Table F23. Return on Sales (Annual Computation)
2008 2009 2010 2011 2012 2013
Net Income 43,608.15 57,324.00 60,626.93 63,995.94 67,432.34 70,937.49
Sales 352,955.90 409,620.00 417,812.40 426,168.65 434,692.02 443,385.86
Return on Sales 16.24% 14.80% 15.32% 15.82% 16.32% 16.00%
Annual projection for the return on sales gives a positive output for the
business. In its first year of operations it has a percentage of 16.24 and decreases
the following year due to some adjustments and coping with its sales. The following
three years would yield a positive and an increasing return on sales.
The gross profit margin measures the percentage of each sales peso
remaining after the firm has paid for its goods. The gross profit margin is calculated
as follows.
Formula: Gross Profit Margin = Gross Profit
Sales
Table F24. Gross Profit Margin (Annual Computation)
2008 2009 2010 2011 2012 2013
Gross 165,403.70 194,340.00 198,226.80 202,191.34 206,235.16 210,359.87
Profit
Sales 352,955.90 409,620.00 417,812.40 426,168.65 434,692.02 443,385.86
GPM 47.44% 47.44% 47.44% 47.44% 47.44% 47.44%
99
Gross Profit Margin remains constant at 47.44% as the year’s progress. This
is because gross profit and sales has the same growth percentages as years goes
by.
The Return on Assets often called the return on investment (ROI), measures
the overall effectiveness of management in generating profits with its available
assets. The calculation of return on assets is shown below. The figures presented
below were based on the annual balance sheet projections.
Formula: Return on Asset =Total Assets
Total Equity
Table F25. Return on Assets (Annual Computation)
2008 2009 2010 2011 2012 2013
Net Income 43,608.15 57,324.00 60,626.93 63,995.94 67,432.34 70,937.49
Total Assets 51,364.99 59,930.37 73,994.68 89,827.02 104,404.55 119,821.03
Return on Asset 84.90% 95.65% 81.93% 71.24% 64.59% 59.20%
Return on Assets varies throughout the different years. In its first year of
operation it has an 84.90% and increases the following to 95.65% due to aggressive
strategies in marketing and selling the product. The following four years would
experience a decreasing return on assets for the business would explore more on its
market and product and would incur more of its assets for its products.
The return of equity (ROE) measures the return earned on the common
stockholders’ investment in the firm. The calculation of ROE is shown below.
Formula: Return on Equity = Net Income
Net Equity
Table F26. Return on Equity (Annual Computation)
2008 2009 2010 2011 2012 2013
Net Income 43,608.15 57,324.00 60,626.93 63,995.94 67,432.34 70,937.49
Total Equity 51,364.99 59,930.37 73,994.68 89,827.02 104,404.55 119,821.03
Return on Equity 84.90% 95.65% 81.93% 71.24% 64.59% 59.20%
100
Return on investment gives a 84.90% for the first year of operations and
continues to increase the following year on its third year return on equity starts to
decrease. This shows that the company on its third year of operations is making
some changes, promotions and additions with regards to their products in making
added equity and their net income.
Activity Ratio
Activity ratio deals to assess in measuring the efficiency of the firm with the
use of its assets based on the company’s financial statements. The following activity
ratio is presented below: Asset Turnover and Inventory Turnover.
The Asset Turnover Ratio indicates the efficiency with which the firm uses its
assets to generate sales. Total asset turnover is calculated as follows. Figures in the
illustration below are based on the annual balance sheet projections.
Formula: Asset Turnover = Sales
Total Assets
Table F27. Annual Asset Turnover Ratio
Annual Asset Turnover Ratio Computation
2008 2009 2010 2011 2012 2013
Sales 352,955.90 409,620.00 417,812.40 426,168.65 434,692.02 443,385.86
Total Assets 51,364.99 59,930.37 73,994.68 89,827.02 104,404.55 119,821.03
Asset Turnover 6.83 6.83 5.65 4.74 4.16 3.70
Ratio
Asset turnover for the first two years of operation remains constant and it
decreases the following years. This means that the company is developing
strategies and investing in exploring the use of its product to have wide market
coverage for the company to make and use of its assets and resources.
Inventory Turnover commonly measures the number of times on average the
inventory is sold during the period. It is calculated as follows. The basis for the
figures provided below can be referred at table 3.4, annual projection for the income
statement.
Formula: Inventory Turnover = Cost of Goods Sold
101
Inventory
Table F28. Inventory Turnover Ratio (Annual Computation)
2008 2009 2010 2011 2012 2013
COGS 187,552.20 215,280.00 219,585.60 223,977.31 228,456.86 233,026.00
Inventory 8,460.80 5,850.00 7,605.00 9,886.50 10,084.23 10,285.91
Inventory Turnover 22.17 36.80 28.87 22.65 22.65 22.65
For the inventory turnover, the illustration above shows that inventory
turnover for the first year of operation is at 22.17 and increases the following year
because of the aggressiveness of the company and decreases the third year for
some adjustments with its inventories and for the last three years, its turnover rate
remains constant at 22.65.
Break-Even Point Analysis

The break-even analysis shows the level of production necessary to meet all
costs and determines the level of sales the company must meet to arrive at a
margin.
Formula:
Break-even point (volume) = Total Fixed Cost
Selling Price – Variable Cost
Break-even point (pesos) = Selling Price x Units
Break-Even point in Volume and Pesos Sales:

Pesos Sales
The calculation of pesos sales for AYOS! Soya Milk is on a per month basis
wherein the annual total production per flavour are divided into three (flavours) and
12 (months) to get the monthly expected unit sold and pesos sales. Below are the
illustrations of pesos sales per product.
Table F29. Breakeven in Volume
102
330ml Fixed Selling Variable BE Volume
Cost Price Cost
unsweetened 3,649.64 20.4 9.70 341.09
sweetened 3,649.64 22.67 11.59 329.39
chocolate 3,650.70 25.2 14.70 347.69
1,018.16
Table F30. Breakeven in Peso Sales

330ml BEP Volume Selling Price Pesos
unsweetened 341.09 20.40 6,958.24
sweetened 329.39 22.67 7,467.27
chocolate 317.45 25.20 7,999.74
22,425.25
Payback Period
Payback period determines the time frame when the initial investment would
be gain back by the investors. The illustration on the next page shows a payback
period of .82 year.
Table F31. Payback Period
PAYBACK PERIOD
YEAR INITITIAL INVESTMENT 124,642.34
2008 Period 1 151,222.23
2009 212,378.00
2010 278,759.89
2011 350,946.45
2012 426,908.47
2013 506,706.87
Payback Period 0.82
As presented above, payback period can be attained by the Kentrons in .82

years. This shows that with lesser time frame the initial investment made by the
investors would be gain back.
Net Present Value
103
The net present value gives explicit consideration to the time value of money.
This is done by subtracting the initial investment from the present value of its cash
inflows discounted at a rate equal to the firm’s cost of capital. Below is the illustration
for the computation for the net present value for Kentron.
Table F32. Net Present Value
Cost of Capital 5%
YEAR
initial investment 139,642.00
2009 365,111.70
2010 311,523.82
2011 264,548.71
2012 221,063.23
2013 194,654.96

NPV 1,193,200.36
Net Present Value is Php 1,193,200.36 this shows that the firm should accept
the project for it would earn a return greater than its cost of capital.
Financial Strategies
The Kentrons Corporation presumed to face challenges in the future such as

losing in business. In the financial aspect, the researchers agreed to consider/project
its financial income in the most conservative but realistic way.
To overcome challenges, Kentrons Corporation decided to form financial

strategies to balance and settle everything. Financial strategies are then shown
below:
1. Lessen the corporation cost and expenses:
 Reduce unnecessary expenses such as telecommunication

expenses, miscellaneous expenses, transportation/distribution
cost, and operational cost.
104
 Reduce the corporation's withdrawals into 50% instead of 80%
to utilize more the corporation's income.
 Lessen unnecessary and over-budgeted expenses for each

department.
 Cut-off marketing activities that only bring-out huge

expenses e.g. ordering of tarp, posters, and so on.
 Cut-off production cost which only increases the

expenses but still, efficiency and effectiveness, quality
and quantity are being observed.
 Reduce unnecessary administrative cost such the budget

for labor force.
 Scan and reduce financial cash inflow and outflow to gain

savings.
2. Invite investors to invest in Kentrons Corporation.
3. Sell those corporate properties e.g. grinding machine, blender and so on

that can be sold to those businesses and shops who buy second hand
materials and then buy something cheaper that could be an effective
alternative for that. Properties that could be sold and there prices are the
following:
Grinding machine – Php 8,000.00*

One blender _ 750.00*
Php 8,750.00
*prices are still negotiable
105
4. Find businesses who would want to buy the patent of one product and sell
it but the product brand AYOS should still be the brand with their (competitor)
own corporate brand on it. In such case, there’ll be royalty fees that Kentrons
would receive.
5. If the investors cannot support the business anymore and cannot invite
investors, the investors have agreed to take loans to support and sustain the
business.
Table F33. Computation of Annual Payment to repay the loan:
Loan principal (present 50,000

value)
Annual rate of interest 20%
Number of years 4
Annual payment 19,314.46
Monthly payment 1,609.54
 It is assumed that the corporation would take a loan of Php

50,000.00.
 It is assumed that the bank would have an loan interest of 20%
 It is assumed that the loan must be paid within 4 years
106
Chapter 3
Socio-Economic Aspect
Our project aims to create socio-economic benefits to the community, in

addition to the investors earning income from their respective investments and the
Corporation realizing corporate revenues from a legitimate business endeavour.
I. Economic Benefits:
1. Generation of Local Employment- The project would involve manpower

requirements in its production process and marketing activities. The
corporation shall employ qualified workers from the local community.
Through an employment program, the project can contribute its share in
efforts to lessen the unemployment rate. The hired workers would earn a
decent income through compliance of the daily minimum wage rates.
2. Government Revenues- Through the payment of taxes, fees and other

legal assessments, the project would help the Government generate
revenues in order to provide basic services to the community, such as the
maintenance of peace and order and ensuring a healthy business climate
for business.
II. Social Benefits:
1. Promotion of a Health Product- The project aims to make the public aware
that its main product ingredient, Soya is healthful and contributes to the
wellness of the members of the community. Aside from its being an anti-
oxidant, Soya is found by medical authorities to be a remedy for several
ailments and a cure for cancer and kidney diseases. Soya also boosts the
immune system of the human body.
107
2. Conduct of Community-related Activities- Besides, marketing of the
product, the Corporation shall inform the community about the health and
nutritional benefits of Soya, through sponsorship of seminars, lectures and
meetings in coordination with the DOH and DSWD. The poorer members
of the community in the barangays and municipalities in the province of
Cebu shall be educated through activities conducted on the awareness of
the benefits that Soya brings. The project would also reach out to children
in particular to inform them of its nutritional value. Examples on the
activities are:
A. Advertising the adoption of the slogans like, “Be Aware! Soya’s

True Value is Coming” for easy recall in the local media.
B. Conduct a seminar with entertainment at St. Arnold Janssen

Community- Target audience would be the poor.
After having fully presented the major aspects of the study, namely:
Marketing, Technical, Management, and Finance, the proposed business or project
of selling AYOS! Soya Milk is seen as feasible.
108
Chapter 4
SUSTAINABILITY PLAN
New Soya-made products

Soya Beans and Soya Milk can be further processed into a variety of
products: Soya Shake, Soya Soap, Soya Cookies, Soya Cakes, Soya Panna Cotta,
Soya Yogurt, Soya Flan, Roasted Soya Beans, Boiled Soya Beans, Soya Cheese,
Soya Ice Cream, Soya Jello, Soya Smoothies, Soya Float, Soya Waffles, Soya
Lotion, Soya Moisturizer, Soyanut Butter, Miso Soup, Soya Candy, Tofu, and Taho.
This move widens the market and expands its product line that would not only
produce more profit but also provide customers with a deeper line breadth that
would contribute significantly to their satisfaction.
Supply
Most if not all Soya Beans in Cebu City are imported from other parts of the
world. There are only a few to none Soya growers in the Philippines. Thus, in the
pursuit of offering quality Soya-made products set at an affordable price, the group
can start growing Soya Beans. This would produce benefits such as availability of
supply when demand increases and the like.
Price Adjustments
The researchers would keep the price at an affordable rate. However, as
operation, cost may decrease through time or even through economies of scale,
price adjustments would be made to be more competitive. The new prices should be
made considering that; it would not lessen the perceived value of the products.
Better Production Processes

While the current process and procedures used for making the products is
good. It is ideal and beneficial to improve or upgrade it to be more efficient and
effective. The improvements would enable to satisfy future demand increases.
109
Research and Development
This is integral to the operations Kentron especially that its primary product is
highly perishable. In-depth analysis, research, tests, and other pertinent factors
would help in the improvement of quality.
Marketing Efforts
Investing on contemporary packaging, witty marketing communications tools,
corporate merchandise items and the like would definitely bolster the positioning of
the business in the market. A final strategy is based on customer reaction and
suggestions, the business would seek to improve it based on customer’s
assessment. This would be called customer response strategy to promote repeat
purchase and establish good relationships with customers.
110
Bibliography
Books
Lawrence J Gitman,., “Principles of Managerial Finance 10 th edition” (23

First Lok Yang Road, Singapore: Pearson Education, 2003)
Philip Kotler, “Marketing management11th” Edition” (Upper Saddle River, New

Jersey: Prenctice Hall, 2002)
Philip Kotler, “Principles of Marketing 10 th” Edition” (Upper Saddle River, New
Jersey: Prenctice Hall, 2004)
Warren J. Keegan, Mark C. Green, “Global Marketing 3rd Edition” (Upper

Saddle River, New Jersey, Prentice Hall, 2004)
Wouldiam J. Stevenson, “Operations Management 8th Edition” (Avenue of the

Americans, New York, McGraw Hill Companies Inc. 2005)
Internet Sources
http://www.answers.com
Cebu: http://www.dticebu.net.ph/02_a_01.html
Documentation License: http://en.wikipedia.org/wiki, last modified 22:11, 9

February 2007, GNU Free Documentation License
http://www.bir.gov.ph/reginfo/regtin.htm
http://lecithinguide.com/news/news/the-health-benefits-of-Soya-lecithin.html
111
http://ezinearticles.com/?The-Health-Benefits-of-Zinc&id=492220
http://www.cbsnews.com/stories/2002/01/31/health/main326755.shtml
http://www.fwhc.org/health/Soya.htm
http://hubpages.com/hub/Health_Benefits_of_Selenium
Philippines: http://business.gov.ph/
http://www.sec.gov.ph/index.htm?AboutSEC_Management
Unpublished
Dmpreneurs Corporation, “THE MARKETABILITY OF FLAVOR-FILLED
BROWNIES IN CEBU CITY”, February 2007.
Encarta Dictionary Microsoft XP version 2004
112

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Chapter 1

Brief Background of the Study

Objectives of the Study

Operational Definition of Terms

Advertising - any paid form of non-personal presentation and promotion of ideas,

Total Project Cost - aggregate amount to finance a particular business undertaking

Total Quality Management (TQM) - is a management strategy aimed at embedding

Scope and Limitations

Marketing Feasibility Study

Marketing comprises of activities that involve the creation of good business

The formula generates an adequate number of sample size that depends on

The method of distribution for the questionnaires to the respondents of each

Table M2. Distribution of Questionnaires for Male Population

Table M3. Distribution of Questionnaires for Female Population

Existing Market Situation

Flavours (Melon, Chocolate, Strawberry, Health conscious people aged

Table M6. Computation for Projected Demand (Population)

As shown on the table above, the projected demand was derived by

Table M7. Respondents Who Tried Soya-based Products

Table M8. Wouldingness to Buy Soya-based products

Table M9. Soya Product Respondent Preference

The researchers assumed a 10 percent increase demand of all the products

2009 9,432,000 ml 15,959,570 ml 6,527,570 ml

Table M13. Amount Spent On Soya-Made Products

As presented above, there is much variation in the amounts respondents

Table M14. Purchase Frequency on Soya-Made Products

As shown in table M14, a high percentage of respondents buy Soya products

Table M17. Reasons for Purchase

Table M18A. Preferred Flavour

As seen, most of the respondents would prefer a glass bottle as packaging

As shown, respondents consider health benefits as the number one

As shown, most of the respondents answered Php30-35. This is the amount

Presentation of Taste Testing Results

Table M19. Generation S

Table M21. Generation Y

Smooth 8 53% 12 80% 8 53%

Good 6 40% 10 67% 5 33%

Table M22. Generation A

Good 12 80% 7 47% 5 33%

Smooth 7 47% 13 87% 8 53%

Good 11 73% 7 47% 6 40%

The taste testing serves a dual purpose: First, it provides a comparative

Milk Products Price Bottles Pesos Sales

Milk Products Price Bottles Pesos Sales

The projected sales volume would be used in determining the number of

Sales Volume needed (Refer to Table M23): 945 Bottles

1. To provide the descriptions of the product

Figure T1. Dimensions of 300ml bottle

Quality Control Quality

Figure T2. AYOS! Soya Milk Production Process Flow

For months with four (4) Saturdays:

For months having only five (5) Saturdays:

Working Days for the month of March

Working Days for the month of April

Working Days for the month of May

Working Days for the month of June

Working Days for the month of July

Working Days for the month of August

Working Days for the month of September

Working Days for the month of October

Working Days for the month of November

Working Days for the month of December

Working Days for the month of Jan