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Executive Summary PDF
Executive Summary PDF
EXECUTIVE SUMMARY
soft serve ice cream in cones and cups with a variety of toppings to
create a more colorful and flavorful dessert. Toppings vary from single
the concept to at least two more strategic locations in the city, where it
and has had gross earnings of P142,397.00 in its fifty-three (53) days
sales over the next three years are realistically attainable by even a
OUR BUSINESS
The initial offering of the business was to sell soft serve ice
name in Davao City and has set to generate jobs for the community.
ice cream.
Vision
We seek to become the top preferred soft serve ice cream retailer
in Davao City.
Mission
soft serve ice cream that satisfies customers who seek a fun and
flavoursome treat.
Goals
ingredients.
Objectives
per unit
month
production process
maintain sales
business
month
from the time they enter the store up to when they leave
business
To achieve the target average sales of 236 cones and cups per
day
INTRODUCTION
soft serve ice cream and operates under the food and beverage
industry. Ice cream in cones and cups are now becoming popular to
operations for the first three months, our projections for the remaining
MARKETING
PLAN
8
PRODUCTS/SERVICES
Product Description
soft serve ice cream with a variety of white and dark chocolate strips,
ordinary ice cream cone and cup. For this particular endeavour, the
mix, premium mix, high end mix, and the customized mix. Premium
the malls. The concept of Sorvetes is rooted in the belief that it is not
necessary to go into a mall just to get a cone of soft serve ice cream.
Sorvetes offers a type of ice cream that is softer than regular ice
cream and low in sugar with a high level of protein from the premium
pre-mixes.
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The products that Sorvetes sells include soft serve ice cream in
offers and are being sold in different sizes and features. Additional
Every day, our ice cream store serves two flavours. The store
also offers other desserts topped with ice cream such as Sundae
Flotte.
preferences.
Sorvetes started out with only two flavors: vanilla and chocolate
plus mix of vanilla and chocolate with signature cones that creates
vary according to the cone or cup sizes. Options are provided in order
_______________________
Market Readiness
well as adults over the age of 45. Everyone knows ice cream. The total
have now adjusted their price points, making these affordable for the
local market even as they maintain its quality,” said Jeff Puno,
The nearest malls located in this area are kilometres away, such as
NCCC Mall in Ma-a and SM City in Ecoland. There are also some
have a cone of ice cream. This is where Sorvetes goes into, the idea of
palates.
needs, Sorvetes serves the existing market in the area. Sorvetes offers
premium ice cream with a twist in the cone or cup that makes it
Proprietary Position
Sorvetes takes good care of its name and is known for its logo
soft serve ice cream in the city. Thus, all of its marketing platforms are
strategized to add value and strength to the brand that can help stave
The name of the ice cream store is distinctive and valuable asset
Comparative Position
from the products of the competitor. This table shows the comparative
MARKET ANALYSIS
Macro-Environment Analysis
Maria Lourdes Lim said the region surpassed even the national
to the collective efforts of the different sectors for enabling the region
to sustain its high growth levels for the past three years.
is highly noticeable that the city is emerging globally due to its recent
the city’s economic status. Among the many reasons the city is
Company.
machines in Davao City were gathered. They verified that soft serve ice
increasing percentage sales for 2015 and 2016 of 31% and 50%,
respectively.
Total 42 55 76 173
Percentage
Increase 0% 31% 50%
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Catalunan Grande on the East, Mintal on the North and Bago Oshiro
on the South.
PEST Framework
Political Factors
localities. Listed below are mandated city ordinances that the business
needs to follow:
The minimum wage rates set forth in the Labor Code of the
Philippines are based on the normal working hours of eight (8) hours
per day. Small businesses may implement policies and impose terms
19
pay, holiday and premium pay, service charges, SSS, EC, and
following are the incentives and benefits given by the act: exemption
from taxes and fees, exemption from coverage of minimum wage law,
20
Economic Factors
impacts on the final consumer prices and the level of sales of ice
of raw material prices which are used to make ice cream, such as eggs,
the National Dairy Authority, the escalation of world market prices and
a delay in the start of the 2010/11 milling season drove prices for a
the milling season comes to a close. The diagram below shows prices
of raw materials for sugar and its retailed price in the Philippine
market.
21
1. Supply Situation
(Quarterly - in LME -
'000 MT)
4. Local Production
7. Value of Production
product. The Philippine’s dairy products has been pegged at 1% for the
last 5 years (National Dairy Authority, 2013; Ang, 2012). This implies
that 99% of the local dairy consumption has been continually sourced
from overseas, and that the dairy production supply is more or less
22
growing at the same rate as the local demand. Most of the imported
milk utilized for consumption and further processing are sourced from
New Zealand (46%), USA (29%), Australia (8%), and France (3%).
in Table 4.
finished goods and a low price for raw materials create low price for
finished goods.
Social Factors
students.
marketing strategies.
23
Technological Factor
It was not until the mid-1800s, however, that is the first recognized
ice cream machine come up or people know about the ice cream
output deteriorates. The softness and hardness of the ice cream rely
located in San Pedro Street Davao City, who also sells powder mixes
for soft serve, proper handling, daily and quarterly maintenance and
this might also result in a broken beater. The major problem that
might occur is the change of compressor that is very costly and would
and tear of the parts includes rubber gaskets and the expansion tube.
If the machine gets in trouble then the operation of the business shuts
down.
24
Industry Analysis
2010) show that the industry sales were expected to grow by 2.8% in
and Selecta. The minimal growth will mainly come from the expansion
cream such as soft serve ice cream retailers. Consumption of ice cream
between 2004 and 2008, with 60% of total volume purchased there.
The remaining 40% was the share of the provinces and the cities
priced branded products in the market has been snatching sales from
Philippines last 2012 base on the final results of the 2012 Census of
services that includes ice cream store business in 2013. Chain players
13%
75%
Source: Based on the final results of the 2012 Census of the Philippine
Business and Industry (CPBI) conducted nationwide
almost all premium mixes have the same taste. Other suppliers do not
27
offer premium but only limited to regular and standard mixes. Judea,
service industry, apart from the technical advancement and issues she
edge of Sorvetes.
order to retain loyal customers and gain new ones, Sorvetes is serious
in adding value to its products. Since there is only one existing direct
competitor in the area and kilometers away to the mall where the next
ice cream store is located, Sorvetes will initially offer two flavors of ice
cream, chocolate, vanilla and combination of two. The prices will vary
toddler, primary and high school, faculty member, including the classy
25pesos and 30pesos depending on sizes of the cones and cups and
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customers high.
District. Most of the food stores within the vicinity of the schools are
school which makes the threat of substitute products are high. One of
but also to the right amount of customer service. These solutions are
over rivalries.
29
the competitive edge must be more visible than others. Added value to
the product and the service makes Sorvetes enjoy the competition.
There is only one direct rivalry in the area which just started last
Suppliers Power /
Buyers Power /
Potential Entrants /
Substitutes /
Rivalry /
rivalry, all other forces are relatively high. Sorvetes penetrates the
opportunity to sell ice cream by using different and not the usual
Competitive Analysis
competitor.
Most of the ice cream stores are located inside a mall but only a
few are in public place like schools. Ice cream stores in public areas
are just adopting the normal way of selling ice cream that basically
offers single pricing. Most of the ice cream stores located in the public
have the same store ambience. Customers will buy ice cream in places
the total appearance of the ice cream. Ice cream taste does not matter
to kids for they taste very closely similar to ordinary and premium ice
cream. Customers are price sensitive and yet want to get the quality
Target Market
there are an estimated 3,300 pupils and students enrolled for this
the same area that gives the food store its perfect place to operate.
students from this school and other schools it targets in the coming
years.
34
the present.
Market Segmentation
students.
1,353 students from the first to fourth years. There are also 1,928
6 that leads to a total 3,281 students. Sorvetes needs only 236 cones
35% of the total target market. These are students from first year up to
the total target customers. These range from grade 1 to grade 6. Kids
The location of the store is about ten (10) meters away from the
entrance and exit gates of the pupils that becomes a factor of their
buying decision. The lowest price specifically targets the pupils who
time and 4:30pm during dismissal. Sales are at peak during these
instances.
drivers who are working under the heat of the sun seek food for
(CPTDA).
Students from the other school who visit other schools for any
premises. They are good money spenders for food stuffs. An estimated
The parents of about 300 or 8% of the total market, who wait for
sales of 236 cones and cups per day is about 3 to 4 kilos of premix.
pupils, high school students and other potential customers. This data
While on the other hand, there is only one ice cream food store
in the area. The strategies of Sorvetes boost the demand and create
however, that want for something better with a twist in the ice cream
for that area given our performance during the first 4 months of our
Matrix framework.
38
___________________________________________________
Source: https://www.edrawsoft.com/ansoff-matrix.php
ice cream. Detailed objectives, strategies and action plans for its
Communications Plan
public relations plans. The plans and other sales activities of Sorvetes
Advertising Plan
sites. The business has set aside an advertising budget to reach the
spoons for every customer that comes in to the store can have a try
when a new product is launch. This tempts the client to buy a cone of
customers.
for events, parties and get together. This is good for five (5) hours.
maintains only one book as against to the practice of having two books
the priority list. Giving back to the community is also included in the
list.
gathered together and ask how much they love ice cream. It is
Research Plan
to adapt with the drastic changes in the market and develop new
regular basis to assist the business with its overall goals. The plan is
products and services. A competitor may offer a lower price with fair
by 2020
45
achieve this, sales forecast is provided that will serve as a guide in its
sales management.
for sales of all products is reasonably maintained at 1 kilo for all raw
materials. Purchases are based on what are the most saleable items.
things are held constant. Inventory items are also divided into slow
Based on the Davao City market prevailing prices for each item,
Target sales per day are based on the actual sales revenue of
operations.
Date Princess Queen King Flotte Add Ons Water Lemon Total
Jan 2017
(10 Days) 20,870.00 8,480.00 330.00 - 634.00 30.00 30,344.00
Feb 2017
(21 days) 40,050.00 10,540.00 1,350.00 225.00 1,039.00 10.00 80.00 53,294.00
Mar 2017
(22 Days) 51,460.00 4,740.00 530.00 1,475.00 477.00 77.00 58,759.00
236 cones and cups as target unit sales per day from the gathered
data. A mark-up is added from the selling price of each item. Sales
offering. This is then multiplied to the unit cost per item to come up
MARKETING BUDGET
6,000.00 based on the 2017 annual sales revenue. This amount will go
Particulars Amount
Advertising and promotion expense 6,000.00
Total 6,000.00
Notes:
1. *0.956% of Total Annual 2017 Sales
Revenue
2. Rough estimates only
52
OPERATIONAL
PLAN
53
Business Process
process involve are trading of its products. These are discussed on the
following sub-sections.
Process Flow
materials; soft serve ice cream and final products, accordingly. From
guides the business in the course through of its operation. The supply
process.
54
Procedures Flow
START
1. Start
Purchase
2. Requisition of inventory
Requisition Slip
from the
will start from the
production crew
production crew. A
him.
forwarded to the
PO will be
supplier. forwarded to the
Supplier
6. End
END
Procedures Flow
1. Start
START
2. Manager will receive a
returned to suppliers.
END Supplier
6. Update inventory records.
7. End
Procedures Flow
1. Start
START
2. Preparation of raw
machine
Draining of
8. Left over to storage for use
the left over
in the next production and cleaning
the machine
process
Store left over
9. End
END for use in next
production
first step is the preparation of all raw materials, ice cream supplies
and mixing tools. Clean the ice cream machine by adding clean water
in the hopper. When everything is ready, pour the mixture and wait
until its gauge reaches 100% to automatically stop. This may take up
cream premix. When the machine stops, it indicates the ice cream is
dispensed and stored in fridge and will be used in the next operation.
only.
58
Procedures Flow
1. Start
START
2. Received order from the
customers.
Receive order
3. Production crew will from customers
prepare the items and
Procedures Flow
1. Start
START
receipts
Count total cash
4. Count total cash during during cut off time
of 3pm
cut off time of 3pm.
Raw Materials
Toppings are shared by Queen and King Cups and there are special
1 Case @
Coke None None None
P269.008
Assorted5 @ P3,841.50
Toppings
None ( 94% to Queen = 3,616.25 None
(Shared)
6% to King = P225.25)
Special Add-
Assorted6 @
ons None None None
P694.00
Assorted7 @ Assorted7 @
Superstix None P49.81 per P49.81 per None
cylinder cylinder
1One (1) kilogram of soft serve powder yields 60 Princess Cone.
2 One (1) kilogram of soft serve powder yields 50 Queen Cups.
3 One (1) kilogram of soft serve powder yields 50 King Cups.
4 One (1) kilogram of soft serve powder yields 50 Sundae Flottes.
5Sprinkles used as add-ons to the ice cream: rainbow sprinkles, rice crispies, mini
in all its products. Raw materials needed for production are procured
Quality Control
point; the productions crew only receives items that are in good
Order. Bad orders or those items that do not pass the specifications
receiving report. With this move, only quality products are kept in the
storage.
63
master plan and store layout design and proper products arrangement
the business. The Five S’s of Total Quality Management (TQM) is also
S’s stands for five Japanese words: Seiri, Seiton, Seiso, Seiketsu and
examples:
show products that are fast moving, slow moving, and non-moving
with emphasis on the expiry dates. The production crew acts as the
quality control officer for this. Fast moving items are monitored in
are promoted by the business and non moving items are returned to
the suppliers. Sorvetes enters into a contract with the suppliers that
Waste Disposal
on environment. Since the business of selling soft serve ice cream falls
into the food industry, proper waste handling and disposal is strictly
imposed.
bins.
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the business does not have any investment in a waste disposal devise
compliance.
Facilities
The particular site of the ice cream store creates value and
services.
The storage, office and store are located at the premises of the
Location Plan
Google maps.
67
Annex C for Lease Contract). The area is about 20 square meters and is
P6,000.00 monthly rental fee with one (1) month advance and two (2)
Store lay-out
The ideas, designs, concepts, decors and lay out of the ice cream
the future (Refer to Annex D). This is under Republic Act 9150 Series
of its brand and type. Sorvetes’ machine is a floor type China brand in
which most of its parts are locally available. For the protection of the
electrical problems.
the ice cream machine. Power shortage and interruptions affect the
under and over voltage. Automatic Voltage Regulator (AVR) that has
the machine and mixing tools for the premix (Refer to Annexes E, F
and G).
unit is covered with warranty agreement for one year, all parts for the
Staffing Requirements
Sorvetes has two operation staffs who work on a daily basis: one
production crew and one store manager, who also serve as the cashier.
They are equipped with proper training in handling the machine and
are empowered with customer service since they are in charge of the
All the employees are managed by the manager who sees the
the employee; this is apart from the cost of living allowance mandated
by law which is P5.00 per day for Region 12. Every employee is given
Social Security System (SSS). They are also insured with Employees
Salaries and wages are given every 15th and 30th of the month.
together with the employer shares are remitted on the following month
21.
72
Total Total
Staff Salaries Benefits
Production Plan
Cups, 1 of King Cup and 1 of Sundae Flotte per day. Therefore, ice
day which is equivalent to four (4) premium premix powder per day
the three (3) months or fifty-three (53) days operations of Sorvetes for
the period from January 18, 2017 to March 31, 2017 (Refer to Table
15).
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Baking Pantry, which are all located in Davao City. Raw materials for
these products are included in the store shelves and storage for
production.
Table 23: List of Raw Materials, Suppliers, Price, Volume and Total
Costs
Type Supplier Unit Price Volume Total Cost
Required
undertaking. This table also shows the computed total cost per yield
per product.
Inventory Volume
planned as well.
pieces of bottled water. With total value of P8, 410.00, this amount
forms part of the business equity at the beginning and all throughout
its operations.
a realistic re-order level, Sorvetes not only ensures enough stock but
period inventory and the safety stock per raw material. Safety stock
Cost Safety
Inventory Safety Per Inventory Stocks
Particulars Stocks Unit Amount Amount
a b c d= a*c e=b*c
Premix
Powder 40 Kg 20 Kg 125.00 5,400.00 2,500.00
the owners consider the products delivery lead time of 5 days, which is
the amount of time it usually takes for the shipment of the product to
per day.
Formula
Computation:
= 40 Kg
13.
Qty of Premix
100
90
80
70
60
50
Re-Order Point
40
Lead
Time
30
Safety Stock
20
10
0 No. of Days
5 10 15 20 25 30 35 40 45
Labor Costs
as provided under salaries and wages schedule for the staff and key
personnel.
Overhead Expenses
are provided and presented further in the financial plan. Since the
administrative expenses.
sales plan. These costs constitute which are directly related to selling,
directly attributed to the operations are necessary to give and meet the
ORGANIZATIONAL
PLAN
80
with authority and is for the benefit of the partnership due to mutual
agency.
entity from the partners when it involves debts to third party creditors.
Ownership
equally shared by the three partners. Sharing is also equal among the
BUSINESS
OWNERS/PARTNERS/MANAGERS
Gregorio, Marbert E.
Mamac, Dengie Lyn C.
Trumata, Lemar E.
-Cashier -Production
Crew
Pre-Operating Activities
Further, these activities from the business inception to the start of the
Pre-Operating Costs
Pre-operating costs are being incurred by the business before its
operating activities and key points given, above are the pre-operating
P1,000.00 for market research and study and the business plan
84
Market research, study and the business plan was prepared by the
partners.
sources.
prepayments.
activities.
business.
TOTAL 150,000.00
86
Fixed Assets
Fixed Assets include the stand fans, tables and chairs used by
the staff and the customers. Other assets include freezer, calculators,
merchandising concern include salaries of both the staff and the key
personnel since they are the ones acting as secretary (cashier) and
financial plan.
FINANCIAL
PLAN
89
FIXED ASSETS
Leasehold improvements 26,660.00 26,660.00
Equipment & FFEs 80,104.80 80,104.80
Total Fixed Assets 106,764.80
WORKING CAPITAL
Advertisement and Promo 4,600.00 4,600.00
Initial Products Purchase 8,695.65 8,695.65
Rental payments 24,000.00 24,000.00
Total Working Capital 37,295.65
ORGANIZATIONAL COST
Market Research and
Study 1,000.00 1,000.00
Business Plan 300.00 300.00
Permits and Licenses 2,506.00 2,506.00
Commercial Operations 2,133.55 2,133.55
Total Organizational Cost 5,939.55
31. These costs were incurred before January 18, 2017, the start of
the business has undertaken. The business owners may have options
investment.
Bonuses and 13th month pays are given on the second year of
Partners will not withdraw generated net income for three (3)
Financial Analysis
Income for 2017 to 2019, with 2017 as the base year, shows that Sales
resulting to higher net income on the second and third year. This is
company has not recorded other income for the next three years.
base year showed an increasing trend for all accounts. There were
of the accounts increased steadily. Total Assets and Total Liabilities &
93
Annex T).
performs well for three years evidenced by the increasing net income
steady mark-ups. These can be seen on the gross income for three
years.
for all products that can give higher gross profits. The basic rule of
by the management.
for three years are on the average 12.55%. Inventory held is steady for
100%, essentially shows how many cents of each sales pesos of the
given schedules, it may appear that over the three years the company
Financial Highlights
The table below shows the financial highlights for the next three
(3) years.
Break-even Analysis
TOTAL Ratio
Ratio
= 849,776.73/52%
Ratio Analysis
= 113,193.76/27,423.92
= 4.13
Given the current ratio of 4.13, it means that Sorvetes has 4.13
= 3.82
Acid test ratio shows the extent of cash and other current assets
that are readily convertible into cash in comparison to the short term
obligations of an organization.
The acid test ratio (quick ratio) measures Sorvetes ability to meet
current obligations based on the most liquid assets such as cash and
company has 3.32 in liquid assets for each 1.00 current liabilities.
98
= 194,259.62/8,410.00
=23.10
inventory.
=365/23.10
=16 Days
Remember, the longer the inventory sits on the shelves, the longer the
the next 90 days. If inventory sits longer than that, it can start costing
= 613,097.00)/216,835.20
=2.83
turnover ratios mean the company is using its assets more efficiently.
Lower ratios mean that the company isn't using its assets efficiently
A ratio of 2.83 means that the net sales of a company equals the
average total assets for the year. In other words, Sorvetes is generating
=27,423.92/ 150,000.00
= 0.18
100
than debts.
=27,423.92/ 216,835.20
= 0.13
Ratios used to gauge a firm’s profitability & return to owners. For the
Year 2017.
= 39,411.28/613,097.00
=6.43%
This measures the amount of net income earned with each peso
company.
= 6.43% x 2.83
= 0.18
OR
=39,411.28/ 216,835.20
=0.18
total assets during the period. It shows how efficient the company
= 39,411.28/150,000
=0.26
Business Plan.