Chapter 1

Business Profile

This chapter will present the Business Profile and other data that will inform

customers about Business Nature, Company Objectives, Business Form and

particularly the product.

Objectives:

1.To give the significance of the name of the company.

2.To address the information of the value of the company.

3.To define the vision-mission and the company’s objective.

4.To define the logo of the company.

5. To show the capital contribution, the form of the business organization, the location of

the company and the description of the product.

Name of the Company

The shared ideas and suggestions of the proponents made the

company name, "FABCO". The company name "FABCO" is derived from

the initials of the business owners' surnames. F stands for Florentino, A for

Arrabe, B for Bolaños, C for Chua, Caranguian and Cardenas and lastly, O

for Oliveros and Orticio. The owners decided to name the company after

their own surnames to show the strong bond and same objectives they

have with each other.

Nature of the Business

According to Kenton (2020), manufacturing is the processing of raw

materials into finished goods through the use of tools, human labor,

machinery, and chemical processing.

Filipinos indeed love to eat chips and crackers. These served as

snacks or appetizers because it is convenient to eat anytime and

anywhere. The group come up to a new and original appetizer product

which is a unique style of crackers. The group named this as "MOLO DEL

FABCO SR.", these are delicious crackers which made from molo wrapper

and matched with vegetables and chicken breast as toppings. This Molo

del Fabco Sr. will be offer with full of toppings and with various options for
sauces. This snack will catch the taste of Filipinos who really love to eat

chips or "chichirya".

Vision

To become one of the successful businesses here in the Pasig that

provides products with a very good quality.

Mission

To create new products to provide customers' tummies a new flavor.

Company Objectives

Short term Objectives

1. To introduce innovated Molo Wrapper at affordable price that will

meet the satisfaction of the customers.

2. To launch the business by using effective and efficient marketing

strategies.

3. To reach monthly quota or target sales that is enough to cover all

the expenses of the company by using effective and efficient marketing

strategies.
 4. To meet the monthly target net income of five thousand (P5, 000)

by utilizing assets, minimizing expenses and through the use of effective

marketing strategies.

Long term objectives

1. To produce good quality of molo del fabco we need to have an

effective manufacturing method.

2. To formulate convenient and effective marketing strategies to

attract more customers.

3. To build strong relationship with the customers by doing research

and to develop the product to meet the demand and satisfaction of the

customers.

4. To be able to grow the business by increasing the production of

molo del fabco and to improve the equipment and tools for production.

Company Logo
 Figure 1: Company Logo

The figure above shows the official logo of the company. Which shows a

cowboy chef that represents the business owners, cowboy symbolizes hard

work and perseverance which describe the proponents who want to

succeed in business. FABCO stands for the initials of owners' surnames F

for Florentino, A for Arrabe, B for Bolanos,C for Cardenas, Chua and

Caranguian, O for Oliveros and Orticio. The color white symbolizes a

successful beginning of the business, while color yellow depicts a bright

future ahead and also captures the attention of the customers. Lastly, the

color red symbolizes passion and love that the owners have to the

business.

Product Logo
 Figure 2: Product logo for FABCO JR.

The figure above shows the official product logo for the regular serving of

the product named Molo Del Fabco Jr.

Which shows the cowboy chef symbolizes the who are hardworking and

persevered in this business. Junior (Jr.) served as the regular recipe of the

product. Color white represents the cleanliness and Yellow signifies the

color of the crackers and red symbolizes that Molo Del Fabco Jr. is made

with love.

Figure 3: Product Logo for FABCO SR.

The figure above shows the official product logo for the regular serving of

the product named Molo Del Fabco Sr.

Which shows the cowboy chef symbolizes the owners who are hardworking

and persevered in this business. Senior (Sr.) served as the special recipe

of the product that has more toppings than the regular ones. Color white

represents the cleanliness and Yellow signifies the color of the crackers.

Lastly, red symbolizes that Molo Del Fabco Sr. is made with love and could

be available in spicy flavor.

Table 1

Capital Distribution

Proponents Capital Contribution Percentage

Arrabe, Aubrey 6,000 12.5
Bolaños, Mercy 6,000 12.5
Caranguian, Marjorie 6,000 12.5
Cardenas, Karylle 6,000 12.5
Chua, John Keith 6,000 12.5
Florentino, Rachelle 6,000 12.5
Oliveros, Ailah 6.000 12.5
Orticio, Abigail 6,000 12.5
Total 48,000 100
The table shows the capital contribution of the proponents. Each proponent

will contribute an amount of six thousand (P6,000) for a total of forty-eight

thousand (P48,000) as capital of the business.

Form of Business Organization

According to Bloomenthal (2020), A general partnership is a

business arrangement by which two or more individuals agree to share in

all assets, profits, and financial and legal liabilities of a jointly-owned

business. In a general partnership, partners agree to unlimited liability,

meaning liabilities are not capped and can be paid through the seizure of

an owner's assets. Furthermore, any partner may be sued for the

business's debts.

The FABCO Company is in the form of general commercial

partnership. A general commercial partnership gives all of the partners

have the ability to actively manage or control the business. This means the

proponents have equal authority to make decisions about how the business

will run, as well as the authority to make legally binding decisions. Each

proponent also have equal responsibility to bear the burden and liabilities of

the business.
Company Location

The proponents decided to locate their business at 110, 1600

E. Mendoza St. Buting Pasig City because proponents reside around the

area making the location more strategic to help lessen the expenses on

transportation and allow the proponents to response immediately.

Product/Service Description

Molo Del Fabco Jr and Sr are flat and crispy crackers topped

with lots of veggies, cubed chicken breast and sauces. The common

toppings are cheese, lettuce, tomato, cucumber, mayonnaise and chicken

breast while in special serving the additional toppings are egg (scrambled)

and chicharon. There are also options for the sauces and it could be in a

spicy flavor. The product is also healthy for the customers. Chips or

"chichirya" appeal to be unhealthy to Filipinos since these are junk foods,

but the MOLO DEL FABCO JR and SR crackers are made to promote

eating chips while balance it with vegetables that made it healthy. The

ingredients are high in vitamins. Chicken breast is the main toppings which

is very high in protein and also matched with vegetables such as cucumber

and tomatoes which contain antioxidants and promotes hydration, also the

lettuce, good source of fiber and vitamin c.

Competitive Advantage

The competitive advantage of our molo del fabco from other is

it’s unique crackers and toppings. The crackers used in this product are

molo wrappers instead of the usual tortilla chips used in other crackers.

This molo del fabco will also offer unique toppings. Instead of usual meat

used by the other sellers our product will use chicken breast as toppings

together with vegetables, eggs, cheese and sauces that will make our

product extra special and more delicious.

Chapter II

Marketing Aspects

Marketing is the most significant area to consider because it defines the situation in

which you can define the item by analyzing the demand. Marketing is the center of a
good organization, with a large portion of the organization item component being

publicized and elevated to the target customer . This segment will talk about the idea of

how a productive statistical surveying, plans and market mix can be conveyed and

estimated. These particular objectives are listed below:

1. To understand the industry’s arguments and to overcome the situation analysis.

2. To follow appropriate sample techniques formula and the sample size of the

target market will be verified.

3. To enlighten about similar products or similar services offered.

4. To examine the competitor’s demand and supply.

5. To calculate project sales and the cost of the product.

6. To interpret the project’s S.W.O.T. analysis.

7. To highlight the marketing strategies that may influence the availability of

production.

8. To create a suitable contingency plan for the expected and unexpected

situations.

9. To illustrate the supply chain and supply information.

Industry Background

Based on an article written by Escalona (2017), she stated that Filipino families

eat at different times of the day or eat while fixated solely on the TV screen. This is
because mealtime in Filipino households is supposed to bring the family together. It is

the time to talk, tell each other about their days, and really just interact with one another.

In the Philippines where instead of “how are you”, people greet each other with “have

you eaten?”

Filipinos are certified food lovers. In fact, some of them eat almost five times a

day. Aside from the three important meals, there are also snacks and meriendas in

between, in the mid-morning and in the mid-afternoon. One of the snacks that Filipinos

are fond of eating is the crackers or chichiryas. These are considered as appetizers and

usually eaten in every Filipino households at any time they wanted to. Crackers are also

given by the parents as a treat to their children who slept rather than played outside in

the afternoon. These just prove how much Filipinos love to eat crackers or chichiryas.

But what if there would be an innovation to the usual crackers that they buy? They will

surely be interested to try it.

The crackers offered by Fabco Co. is innovated for the benefit of the customers.

Because unlike the unhealthy chichiryas that people usually buy, this Molo Del Fabco

crackers are made to promote healthy snacks for the customers. Eating snacks for

those who are health conscious will not be labeled as "cheat day" because this food will

actually help them to maintain eating healthy course of foods.

For the reason that Filipinos love to eat, the demand for food industry in the

country increases rapidly, especially during these times of community quarantine. This

gave way to many aspiring entrepreneurs to enter the market.

Market Research
 A market research is a vital element in developing a business. According to Twin

(2020), market research is the process of assessing the viability of a new product

through information gathering and research. Market research is conducted directly with

the customers, which allows the proponents to discover the target market and be able to

write down the opinions and other inputs of the customers regarding to their interest in

the product.

The proponents prepared a survey questionnaire for students of Buting Senior

High School as a method of collecting data. The results of the survey were studied and

analyzed to reach conclusions on profitability.

In taking samples , Slovin's formula has been used to calculate an appropriate

sample size. The proponents used random sampling, Lavrakas (2018) random sampling

refers to a variety of selection techniques in which sample members are selected by

chance, but with a known probability of selection.

Slovin’s Formula: n= N/1+N(e)2

Legend:

n=Sample Size e=margin of error

N=Population Size

Computation: For Grade 11 and Grade 12 each strands of Buting Senior

High School Students:

STEM

n= 435/1+435(0.05)2 n=209 Sample Size

ABM

n= 617/1+617(0.05)2 n= 243 Sample Size

HUMSS

n= 637/1+637(0.05)2 n= 246 Sample Size

GAS

n= 80/1+80(0.05)2 n=67 Sample Size

TECH-VOC

n= 986/1+986(0.05)2 n=285 Sample Size

The stratified sample of the population is two thousand, seven hundred fifty five

(2,755). With a given formula, sample size of STEM both grade 11 and 12 students is

two hundred nine (209), for ABM both grade 11 and 12 students is two hundred forty

three (243) for HUMSS both grade 11 and 12 students is two hundred forty six (246), for
GAS both grade 12 students are sixty seven (67), for TECH-VOC both grade 11 and 12

students is two hundred eighty five (285).

Table 2

Sample Size of Grade 11 and 12 students in Buting Senior High School

Strand Grade 11 Grade 12

STEM 104 105

ABM 121 122

HUMMS 123 123

GAS 0 67

TECH-VOC 142 143

Total 490 560

1,050

Market Analysis

Alexa (2020) defined that market analysis is a quantitative and qualitative

assessment of a market. It examines the market size, various market segments, and

customer buying patterns, the competition, and the economic environment.

 The target market of our company for the retail are the students of Buting Senior

High School both Grade 11 and Grade 12.

Table 3

Summary of Respondents of Retail

Students Sample Size/Respondents Percentage

Grade 11 490 46.7

Grade 12 560 53.3

Total 1050 100

The table shows the summary for the retail actual population of companies were

selected as they respondents for they have a small population size. Grade 11 have 523

respondents have a percentage of 49.81% while Grade 12 have total of 527

respondents have also a percentage of 50.19% have total of 1050 of sample size.

Demand Analysis

The FABCO company offers two flavors of Molo Wrapper. The varieties are

regular or Molo del Fabco Jr. and the special or Molo del Fabco Sr. The following tables

will show an analysis of the demand for the product and it’s varieties.

Table 4

Number of Demand of the Respondents

Response Respondents Percentage

Not willing 75 7.14%

 Invalid 0 0%

Demand 975 92.86%

Total 1,050 100%

The table shows that the demand of the product is 92.86% that is 975 out of

1,050 respondents.

Table 5
Monthly Allowance of Respondents

Monthly Allowance Respondents Percentage

0-500 111 10.57%

501-1000 124 11. 81%

1001- 1500 118 11.24%

1501- 2000 379 36.10%

2001- 2500 115 10.95%

2501- 3000 96 9.14%

3001- 3500 47 4.48%

3501- 4000 33 3.14%

 4001 and above 27 2.57%

Total 1,050 100%

The table shows that most of the respondents have a daily allowance of 1501-2000.

Table 6
Number of Respondents who eat Crackers

Response Respondents Percentage

Yes 1,008 96%
No 42 4%
Total 1,050 100%

The tables shows the numbers of respondents who eat Molo del Fabco. 1,008

respondents answered yes while 42 out of 1,050 respondents do not eat Molo del

Fabco.

Table 7
Numbers of respondents who heard about FABCO Company ( Retail)
Response Respondents Percentage
Yes 267 25.43%
No 783 74.57%
Total 1,050 100%
The table shows the numbers of respondents who heard about FABCO Company. It is
implied that 783 (74.57%) out of 1,050 respondents who answered No.

Table 8
Frequency of Buying (Retail)
Molo del Fabco Jr. Molo del Fabco Sr.
Respondent Percentage Respondent Percentage
s s
Daily 294 30.15% Daily 86 8.82%
Weekly 302 30.97% Weekly 448 45.95%
Monthly 379 38.87% Monthly 441 45.23%
Total 975 100% Total 975 100%

The table shows the quantity preferred to buy of the respondents from the total of

975 respondents, most of them preferred to buy Molo del Fabco Jr. On the other hand,

most of them preferred to buy Molo del Fabco Sr.

Table 9
Quantity Preferred to Buy (Retail)

Molo del Fabco Jr. Molo del Fabco Sr.

Respondent Percentage Respondents Percentage
s
1 547 56.10% 1 619 63.49%
2 273 28% 2 278 28.51%
3 94 9.64% 3 32 3.28%
4 32 3.28% 4 25 2.56%
5 29 2.97% 5 21 2.15%
Total 975 100% Total 975 100%
 The table shows the quantity preferred to buy by retail. From the total of 975

respondents, the data implied that most of the respondents preferred to buy only one in

each variety.

Table 10

Factors that customers consider

Factors Respondents Percentage

Taste 460 43.81%
Price 140 13.33%
Packaging 156 14.85%
Taste, Price 82 7.81%
Taste, Packaging 33 3.14%
Price, Packaging 20 1.9%
Taste, Price, Packaging 156 14.86%
Taste, Price, Packaging 3 0.39%

and others
Total 1,050 100%

The table shows that 460 (43.81%) out of 1,050 respondents chose taste as the

most important factor to be considered in buying Molo del Fabco Jr. and Molo del Fabco

Sr. 156 (14.86%) out of 1,050 respondents also chose taste, price, packaging as the

important factor to be considered in buying Molo del Fabco Jr. and Molo del Fabco Sr.

Table 11
Summary of Demand per Frequency
 Molo Del Fabco Jr. Molo Del Fabco Sr.
Quantity Respondent Quantity Respondent Monthly Yearly
s s
Demand Demand
Daily 1 115 1 40 4,650 55,800
2 93 2 22 6,900 82,800
3 47 3 15 5,580 66,960
4 18 4 6 2,880 34,560
5 21 5 3 3,600 43,200
Total 294 86 23,610 283,320
Weekly 1 235 1 298 2,132 25,584
2 32 2 130 1,296 15,552
3 23 3 9 384 4,608
4 6 4 7 208 2,496
5 6 5 4 200 2,400
Total 302 448 4,220 50,640
Monthly 1 197 1 281 478 5,736
2 148 2 126 548 6,576
3 24 3 8 96 1,152
4 8 4 12 80 960
5 2 5 14 80 960
Total 379 441 1,282 15,384
Grand 975 975 29,112 349,344
Total

The table shows the summary of demand per frequency of Molo del Fabco Jr. and
Molo del Fabco Sr.

Table 12
Summary of Demand Per Frequency
 Molo Del Molo Del
Fabco Jr. Fabco Sr.
Monthly Yearly Monthly Yearly Percentage
Daily 294 3,528 86 1,032 30.15%
Weekly 302 3,624 448 5,376 30.29%
Monthly 379 4,548 441 5,292 38.87%
Total 975 11,700 975 11,700 100%

The table shows the summary of demand per frequency of Molo del Fabco as

retail. As shown in the table, most of the retail demand will come from monthly

customers.

Table 13

Summary of Demand per Variety

Demand Percentage
Molo Del Fabco Jr. 11,700 50%
Molo Del Fabco Sr. 11,700 50%
Total 23,400 100%

The table shows the summary of demand per variety of Molo del Fabco as retail.

As shown in the table both Molo del Fabco Jr. and Molo del Fabco Sr. has the same

demand.

Table 14

Summary in Demand in Retail

 Demand Percentage
Retail 23,400 100%
Total 23,400 100%

The table shows the summary of demand in retail of Molo del Fabco Jr. and Molo

del Fabco Sr. as retail. The company can only get their profit from retail.

SUPPLY ANALYSIS

Supply analysis is an evaluation of existing supply conditions towards bridging

the gap between the level of supply and the level of demand for the proposed task's

output(JK,Camarillo 2015).It is also an arrangement of input and output equations used

to determine supply responses to changing conditions by producers (including

households). Supply analysis considers changes in both output supply and input/factor

demand.

Supply analysis is a process that is utilized to get how the accessible amount of a

product is influenced, by changes in demand, input factors and production techniques

.The tables and figures will show the direct and indirect competitor’s monthly and yearly

supply and their market share.

Table 15
Competitors Supply
Competitors Monthly Yearly Market Share
Percentage
Direct Competitors
Shamyami 2,600 31,200 8.93%
 Soraia Company 2,500 30,000 8.59%

Indirect Competitors
Pizza Al Taglio 2,800 33,600 9.62%
Monsieur’s Croq 2,800 33,600 9.62%
Primo Innovación 2,550 30,600 8.76%
Le Casa Comida Company 2,600 31,200 8.93%
Oyatsu de Filipino 2,500 30,000 8.59%
Company
Acceler8 Company 2,700 32,400 9.27%
Total 21,050 252,600 72.31%

The table shows the supply of direct and indirect competitors, the data
gathered is a result of the interview done by the company.

Sales

Acceler8 Company Shamyami

13% 12%

Oyatsu de Filipino
Company Soraia Company
12% 12%

Le Casa Comida Company Pizza Al taglio

12% 13%

Primo InnovacionMonsieur's Croq

12% 13%
Shamyami Soraia Company Pizza Al taglio Monsieur's Croq
Primo Innovacion Le Casa Comida Company Oyatsu de Filipino Company Acceler8 Company

Figure 4: Supply Market Share

Supply Market Share

The figure shows the supply of every direct and indirect competitors of the

company and the available market share. FABCO Company has a percentage of

27.69% in supply market share. The company has 5 Indirect Competitors: Pizza Al

Taglio 9.62% Monsieur’s Croq 9.62%, Primo Innovación 8.76%, Le Casa Comida

Company 8.93%, Acceler8 Company 9.27%, Oyatsu de Filipino Company 8.59%. And

the Direct Competitors which are Shamyami 8.93% and Soraia Company 8.59%.

Table 16
Gap Analysis for 5 years

Year Demand Supply Gap Percentage

2020 349,344 252,600 96,744 27.69%
2021 356,051 257,449 98,602 27.69%
2022 362,887 262,392 100,495 27.69%
2023 369,855 267,430 102,425 27.69%
2024 376,956 272,565 104,391 27.69%

The table shows the GAP analysis for Five (5) years. To get the demand and

supply of the following years, the proponent multiplied both by 1.0192. This is based on

the 2.86% population growth in Pasig City, and the company growth is 1.0192%. The

GAP came from the demand less the supply and lastly the percentage is from the GAP

divided by the demand of that year and multiplied by 100%.

Table 17
 Company Demand Using Gap
Demand Monthly Yearly
Demand From Gap 896 10,752
Actual Demand 100 1,200
Total 996 11,952

The table shows the demand using GAP and an actual demand. To get the

company demand from the GAP, the proponents use the formula: Company Demand =

GAP/Competitors +1 is necessary. The monthly and yearly actual demand is from retail.

Table 18
Projected Sales

Monthly Yearly
Product Price Quantity Sales Quantity Sales
Retail
Molo del
Fabco Jr.
₱ 55.00 996 54,780 11,952 657,360

Molo del
Fabco Sr.
₱60.00 996 59,760 11,952 717,120

Total 1,992 114,540 23,904 1,374,480

The table shows the monthly and yearly projected sales of the company.
SWOT Analysis

SWOT is a technique for analyzing the internal and external environments of an

organization through the identification and assessment of its strengths, weaknesses,

opportunities, and threats (SWOT). SWOT analysis entails a distillation of the findings of

an internal and external audit that draws attention from a strategic perspective to the

critical organizational strengths and weaknesses and the opportunities and threats

facing the organization (Kotler and Armstrong, 2011).

Table 19

SWOT Analysis of Fabco Company

Strengths Weaknesses

- The toppings are unique and unusual at -Differentiation of Products

affordable price. -Company who have loyal customers

- Available in two varieties - Limited budget

- Highly enthusiastic team

- The crackers are made of molo

wrappers which is new and unique

Opportunities Threats
- Market Expansion - New existing competitors

- Potential for growth via food delivery - Buyers Dissatisfaction

- Health conscious trends - Company who offer same products

 The table shows the SWOT Analysis of the Company. The company analyzed

that their strength is having the toppings are unique and unusual and at affordable price,

available in two varieties and highly enthusiastic team. The weaknesses are

differentiation of products, company who have loyal customers and limited budget. The

Company’s Opportunity are Market expansion, potential for growth via food delivery and

health conscious trends. The threats are having new existing competitors, buyers

dissatisfaction and the company who offer same products

Table 20

SWOT Analysis of Competitors

Strengths Weaknesses

- Available in two varieties · Same Product offered by other

-The crackers are made of molo wrappers competition

which is new and unique

Opportunities Threats

- Market Expansion - New existing competitors

The table shows the SWOT analysis of competitors.

Nutrient Evaluation of Molo Del Fabco

Food Items Calori Total Saturate Chole Sodium Potassiu Total Protein Fiber Suga
es Fats d sterol m Carbohy r
 Fat drates

Molo 23 0.1 g 0g 0.7 45.8 mg 6.6 mg 4.6 g 0.8 g 0.1 g 0g

mg

Chicken 239 14 g 3.8 g 88 mg 82 mg 223 mg 0g 27 g 0g 0g

Breast

Tomato 18 0.2 g 0g 0 mg 5 mg 237 mg 3.9 g 0.9 g 1.2 g 2.6 g

Lettuce 15 0.2 g 0g 0 mg 28 mg 194 mg 2.9 g 1.4 g 1.3 g 0.8 g

Cucumber 45 0g 0g 0 mg 1 mg 76.4 mg 2g 2g 0.3 g 0.9 g

Chicharon 544 25 g 4g 40 mg 540 mg 0 mg 5g 45 g 0g 0g

Egg 155 11 g 3.3 g 373 124 mg 126 mg 1.1 g 13 g 0g 1.1 g

mg

Oil 884 100g 14 g 0 mg 2 mg 1 mg 0g 0g 0g 0g

Mayonnais 680 75 g 12 g 42 mg 635 mg 20 mg 0.6 g 1g 0g 0.6 g

e
 Cheese 402 33 g 21 g 105 621 mg 98 mg 1.3 g 25 g 0g 0.5 g
mg

Marketing Strategy

Kotler (2003) defined that marketing strategy is the primary approach that the

business unit will use to achieve its goals and which contains of elaborate decisions

(strategies) on largest markets, market positioning and mix and marketing expenditure

allocation. The company's strategy combines all of its marketing goals into one

comprehensive plan. A good strategy should be drawn from marketing research and

concentrate on marketing mix in order to attain the utmost profit and nurture the

business.

The company decided to use Social Media Marketing and Guerilla Marketing

for the business in order to achieve the maximum profit and sustain the business.

Social media marketing is a marketing strategy that promotes products or

services with the use of social media platforms and websites like Facebook, Twitter and

Instagram. According to Duct Tape Marketing (2016) Interacting with consumers on

social media is an important marketing strategy for small businesses. Engaging a

business in social media helps to increase customers and connect with current

customers.

Guerrilla marketing is a marketing strategy which a company use to surprise

or make an unconventional interactions to market a product or service. This kind of

marketing relies on personal interaction, features a smaller budget, and focuses on

smaller groups of promoters that are responsible for getting the word call at a specific

location instead of through widespread media campaigns (Hades 2020).

Marketing Mix Strategy

Kenton(2019) defined that marketing mix includes multiple areas of focus as a

part of a comprehensive marketing plan. The term often refers to a standard

classification that began because the four Ps: product, price, placement, and promotion.

Effective marketing touches on a broad range of areas as against fixating on one

message. Doing so helps reach a wider audience, and by keeping the four Ps in mind,

marketing professionals are better ready to maintain specialize in the items that

basically matter. That specialize in a marketing mix helps organizations make strategic

decisions when launching new products or revising existing products. Molo del Fabco

has

Heathy ingredients like lettuce, tomatoes, eggs, cucumbers and unique twist

which will fulfil the customer satisfaction. Marketing mix strategy is beneficial tool to

market the desirability of product, affordability to the worth , availability of location and

therefore the effectiveness of the promotion.

PRODUCT
 The Fabco Company launched its very first product the Molo Del Fabco. It is

innovated type of crackers. Combination of Molo wrapper, Chicken breast and

Vegetables. In terms of product, the Molo del Fabco has a very good quality of taste

and is indeed unique because of its different kind of crackers. It gives various health

benefits that are essential in our body. Fabco Company makes sure that the price is

budget friendly that anyone can afford.

Fabco Company product is processed out of decision that concerns with a savor,

quality, price and packaging of the product the company's product are composed of

regular Molo del Fabco which is Fabco Jr. and Special Molo Del Fabco which is Fabco

Sr.

The usual nachos is made of common ingredients such as tortilla chips, cheese

and vegetables but, the Molo del Fabco product is an improved kind of crackers. It is

made from molo wrapper as its crackers instead of tortilla chips, the toppings are also

unique because instead of the usual meat used by other nachos sellers, Molo Del

Fabco use chicken breast as the main toppings and more vegetables like lettuce,

tomato and cucumber. The sauce is not only cheese but improved with mayonnaise to

make it tastier. It is also available in spicy flavor as an option. The product has two

variations these are: Molo del Fabco Jr. which is the regular serving and Molo del

Fabco Sr. for special servings which have more add-on toppings like scrambled eggs in

cubes and sprinkled with crispy chicharon.

 Table 22
Product Costing

Direct Cost Quantity Quantity Paper Box Cost per

Materials Consume (Per Kilo, Box

Per Piece And

Procedure Liters)
MOLO 100 4 Packs 1 Pack 160 0.63

WRAPPER
CHICKEN 120 1 Kg. 50g. 50 2.4

BREAST
TOMATO 100 1 Kg. 25g. 120 0.83
LETTUCE 100 1 Kg. 12.5g. 200 0.5
CUCUMBER 160 1 Kg. 12.5g. 180 0.89
EGG 72 1 Dozen 1 piece 24 3
CHICHARON 30 100g. 10g. 20 1.5
CHEESE 47 250g. 12g. 80 0.59
MAYONNAISE 76 230g. 11.5g. 80 0.95
CHILI 30 50g. 2.5g. 105 0.29

POWDER
COOKING OIL 60 16.91 oz. 0.42 oz. 200 0.3
TOTAL 895 11.88

DIRECT

MATERIALS
Indirect Materials

Quantity
Cost
per Paper Box
  Cost Quantity per
Procedur Consumed
Box
e

BOX 5 1pc. 1 1 5

LABEL 25 10pcs. 1 10 2.5

Total Indirect
        7
Materials
Direct Labor

No. of Quantity
Allowance
  Production produce Cost per box
per Month
Days monthly

Production
5,000 24 1,992 2.51
Personnel

Total Direct
5,000     2.51
Labor

Overhead

Cost Cost
Useful Cost per
Amount (Php) Yearly Monthly
Life Box
  (Php) (Php)
Gas Stove 2,500 2 yrs. 1,250 104.17 0.11
Cabinet 1,000 5 yrs. 200 16.67 0.02
Cooking Table 1,000 3 yrs. 333.33 27.78 0.03
Racks 250 3 yrs. 83.33 6.94 0.008
Big tray 250 2 yrs. 125 10.42 0.01
Fried Pan 500 2 yrs. 250 20.83 0.02
Kitchen Tong 100 1 yr. 100 8.33 0.009
Production
1,500 1 yr. 1,500 125 0.14
Supplies
Rent 1,500 1 month 18,000 1,500 1.64
Utilities 500 1 month 6,000 500 0.55
Phil Health 300 1 month 3,600 300 0.33
SSS 290.60 1 month 3,487.20 290.60 0.32
Gas 300 1 month 3,600 300 0.33
Freight In 240 1 month 2,880 240 0.26
Total
10,230.60 41,408.86 3,450.74 3.77
 Table 23

Summary of Product Costing

Direct Materials 11.88

Indirect Material 7
Direct Labor 2.51
Overhead 3.77
Total Product Cost 25.16
Selling Price Jr.=55, Sr.= 60
Mark Up Jr.=29.84 Sr.=34.84
Mark Up Percentage Jr.=118.60 Sr.=138.47

Promotion

Kotler (2012) stated that a Promotional plan is a natural part of a plan

of marketing strategy and ensuring to meet the goal or the objective for the

year. Without it, marketing plan could go to a waste. It filled all the types of

communication between the sellers and consumers of potential customers.

Promotion is a mix of communication to conduct information about the

company, it is specific effort to encourage customers to tell other about the

product and services to the target clients or costumers and also it increase

awareness, create interest, generate sales to create brand loyalty. According

to Kotler (2012) The promotions mix (the marketing communications mix) is

the specific blend of promotion tools that the company uses to build customer

relationships. Promotion need to be persuasive or convincing enough to get

the desired response from the possible consumers. The purpose of promotion

is either to sell more products or service to the existing new customers and to

get people try the products and services.

 Table 24

One (1) Year Promotional Activities for FABCO Company

Jul Sep Oc No
Strategies Jan Feb Mar Apr May June Aug Dec
y t t v

Billboards                        

Flyers                        

Tarpaulin                        

Personal
                       
Selling

Posters                        

Social
                       
Media

Commercia
                       
l

Video
                       
Tutorial

The table shows the one (1) year promotional endeavors of the FABCO

Company. The company will provide Flyers every 2 months. For the

Tarpaulin, they prepare it twice a year. The company provide poster for 5

months. The company will use social media and personal selling every month

to promote their product.

Billboard- One of the most cost- effective option in marketing industry. The

purpose of a billboard is to interrupt many people as possible, to create

awareness not necessarily to impact, to broadcast instead of engaging.

 Flyers- This will give in the month of January because it is the first month

before the start of selling. The flyers contain the product description, price,

tagline, company and product logo.

Tarpaulin- It is a common marketing strategy among enterprises and low

costs promotion tool to use.

Personal Selling- Through personal selling we can gain sales and easy

communicate to the target customer.

Posters- This will be given during our personal selling to make our product

become known to other expected customer.

Social Media- This activity will be done every month to promote and advertise

it widely to the other target customer.

Commercial- It is the easy to interact with the customer especially the

students which is the company’s primary target market.

Video Tutorials- A procedural video on how to make the product will let the

consumer be aware of how the product were prepared by the production

personnel.

Final Product- This will be the actual appearance of the product. The

Company will make sure to make it presentable to the customer.

Table 25

Promotional Strategies Monthly Yearly

Billboards ___ ___
Flyers ___ 300

Tarpaulin ___ 600

Personal Selling ___ 800

Posters 300 3000

Social Media 300 3600

Commercial ___ ___

Video Tutorial ___ ___

Final Product ___ 1000

Place

Place pertains to the distribution channel that will be used by the

company to distribute the product and it should be accessible by the potential

customers in an efficient way. The company will use a direct distribution

channel where the manufacturers will directly communicate to the consumers.

The Fabco Company is directly distributing the Molo Del Fabco crackers to

potential retail buyers from Buting Senior High School.

 STUDENT

JUNIOR AND
SENIOR HIGH
MOLO DEL BUTING SENIOR TEACHERS
FABCO
HIGH SCHOOL

EMPLOYEES

BARANGAY
BUTING
HOUSEHOLDS

Figure 6. Direct Distribution Channel for Retail

The figure shows the direct distribution channel of Fabco Company to

the potential buyers in Buting Senior High School.

 Estrella Santos
( Cheese and
Mayonaise)

TEACHERS
Wilma Sanchez
(Molo wrapper)

4Ailah Punzalan

( Tomato, cucumber
EMPLOYEES
and lettuce)
FABCO COMPANY

Ernesto Gonzales
( Chicken Breasts)
STUDENT

Janeth Macapugas
( Egg and oil)
BARANGAY BUTING
HOUSE HOLDS

Myrna de Guzman
(Chicharon)

Figure 7: Supply Chain

Figure 7 shows the direct supplier of FABCO and the direct

distribution of the company to the company’s buyers in wide range of

distribution.

Table 26

Suppliers of FABCO Company

 Direct Name of Contact Number Address

Materials Suppliers
Cheese and Buting Flea

Mayonnaise Market, San

Estrella Santos 09488353390
Guillermo

Avenue
Buting Flea

Market, San
Molo Wrapper Wilma Sanchez 09496652136
Guillermo

Avenue
Tomato, Buting Flea

Cucumber, Market, San

Ailah Punzalan 09491772571
Lettuce Guillermo

Avenue
Buting Flea

Market, San
Chicken Ernesto Gonzales 09499662585
Guillermo
Breast
Avenue
Buting Flea

Market, San
Egg and oil Janeth 09617299815
Guillermo
Macapugas
Avenue
Buting Flea

Market, San
Chicharon Myrna de Guzman 09381228759
Guillermo
 Avenue

The table shows the suppliers of FABCO Company.

Chapter lll
Technical Aspects

This chapter shows the business operating system and discusses the

structure of the project, the sources of supplies and equipment used in the

operation, the schedule of operations and the method of waste disposal.

Objectives:

1. To show the purchasing and operation system flowchart

2. To explain the purchasing and operation plan

3. To demonstrate the company storage lay-out

4. To analyze the business supplies to be used

5. To identify the location of the business

START

Log in (2 min)

Preparations of
orders(10 min)

Checking the product

quality (20 min)
 Figure 8

Purchasing Flow Chart

Purchasing Procedures

1. Log in

The proponents enter the business location, logging in is the main thing

that ought to be finished. The proponents ought to show the arrival time in the

business location and it would take three (2) minutes.

2 Preperational orders

The proponents will set up the materials as record boom and official

receipts before the operation and it would take ten (10) minutes.

3. Checking the product Quality and Quantity

The proponents will check if any of the products are inadequate or not

finished and it would take twenty (20) minutes.

4. Are the products are complete and in good quality?

This question is answerable by yes or no depending after checking of

the product.

5. If yes

It means that the products have passed the quality and quantity test

and product will proceed to the next step.

6. If No

If no, it means the product are inadequate and not finished

7. Contact the supplier for concerns

In consultation with the various concerns that may arise, the

proponents shall communicate to the supplier via phone. It will be taken to

fifteen (15) minutes.

8. Meet the supplier

The assigned personnel will go to the office of supplier to talk about the

various concerns that can take one (40) minutes

9. Settlement of Payment and receipts

Once the quality and quantity checks have been carried out, the

proponents shall pay the supplier for the production according to the

contractual terms and conditions agreed by the proponents and the suppliers.

This process will be taken (10) minutes. The supplier will issue a receipt and

record the transaction according to the operation performed. It will be taken

ten (10) minutes.

10. Log out

The proponents ought to properly log out works to their working hours

rendered on each day and it would take three (2) minutes.

 Figure 9

Production Flow Chart

Production Process

1. Log in - the personnel should be on time before the production start on

working area.

2. Preparation of the equipment and the ingredients - the personnel must

be prepare all the equipment to be used in the production such as frying pan ,

gas stove , and utensils aside from there , of course the ingredients that will

used in preparing molo del fabco such as the molo wrappers, chicken breast,

tomatoes, lettuce, cucumber, oyster sauce, pepper, magic sarap, chicharon,

eggs, cheese, spicy flavor (optional) and sauce ( mix of mayonnaise and

cheezwiz). If the ingredients are insufficient the proponents must contact the

supplier and if all the ingredients and equipment are ready proceed to the next

step.

3. Marinate the chicken breast - marinate the chicken breast using oyster

sauce, pepper and magic sarap for 5 minutes and fried it, bone it and shred it

into pieces.

4. Fry the molo wrappers in a low heated pan - Cut the molo wrappers into

halves, then turn on the gas stove, just in a low heat. Next, in the frying fan

put the molo wrappers and wait until its golden brown and get set aside.

5. Put it all the ingredients for the molo del fabco jr - for regular one

prepare the fried molo wrappers and put in the packaging, then chopped the

vegetables and mix it which are the tomatoes, cucumbers and lettuce. After

that you are going to add the toppings to molo wrappers which are the

vegetables and you are going to sprinkle it with chicken breast, sauce

( mayonnaise and cheezwiz), grated cheese and spicy flavor (optional).

6. Put all the ingredients for molo del fabco sr - for special one prepare the

fried molo wrappers and put in the packaging, then chopped the vegetables

and mix it which are the tomatoes, cucumbers and lettuce. After that you are

going to sprinkled it to the fried molo wrappers. Next, you are going to sprinkle

it with sauce ( mayonnaise and cheezwiz), grated cheese and add spicy flavor

(optional). And add scrambled eggs and pieces of crispy chicharon as an

additional toppings for special one.

7. Packaging - If the product is already cooked.

8. Labelling - When it is done in packaging it is time to label the product since

the proponents have a two variety. The proponents also have a logo for molo

del fabco sr.. and molo del fabco sr. Put it on to identify the regular and

special.

9. Final quality product - done in labelling. Check all the products if it is in

good packaging and its correct in labelling. If there's a problem in labelling or

in packaging fixed it to be good. And if they are already in a good condition its

now ready to sell in the market.

10. Storage - Product is now ready to purchase. The proponents still have an

hour to clean the area and make themselves presentable before the store

open.
 START

Product Quality Assessment

(5 minutes)

Checking the Product

(5 minutes)

Are the
products is
in a good
condition?

Packaging(15 minutes)

Labelling (3 minutes) If Yes

Final Quality Assessment

(10 minutes) END
 Figure 10

Packaging Flow Chart

Packaging Procedures

1. Product Quality Assessment

The defenders analyze the product to be inform if it's suitable or appropriate for

the consumer.

2. Checking of Products

The defenders should test the product quality if the customers' orders are

finished or not.

3. Are the Products is in a Good Condition

Identify which product had been essential and damages.

The defenders must return the items to the supplier and to restore.

4. Packaging

The defenders will re-pack a required amount of orders to be shipped off the to

the customers.

5. Labelling
 The defenders will put the label in the packaging as per the organization's format,

including the organization name, the contact number and the Company's particular

area.

6. Final Quality Assessment

The packaging ready to deliver must guarantee that the item is presentable and

will meet the expectations and desires of the customer.

 Waiting for
Start Customer
(8 hours)

Accommodating Customers
(10 minutes)

Are the
costumers
willing to buy?

Scheduling of Delivery
Transaction
(10 minutes)

Payment (5minutes)

Record the Order End

(5minutes)

Figure 11
Walk-In Order Process
Procedure for Walk-In Order

1. Waiting for Customer. The staffs or the personnel will wait for walk in customers
who
Buy their product. In case there are customers, the staffs or personnel who assigned
must
Accommodate and assists the customer. If there is no customer, the staffs or personnel
Will wait until the customers will approach them.

2. Accommodating Customers. The staffs or the personnel will assist the customer
and
Get their order. If the customers are willing and want to buy, proceed to scheduling for
Delivery transactions. In case there are no customers willing and want to buy, the staffs
Or personnel will wait until the new customers approach.

3. Transaction and Scheduling of Delivery. The assigned staffs or personnel will set
The delivery schedule for the walk-in customers.

4. Payment. The staffs or the personnel will receive payment and give the product with
Receipt in return to the customer.

5. Record the Order. The staffs or personnel must record the transaction and order of
The customers to track the sales and inventory of the product.

Table 27

Purchasing Schedule
 Actual
Purchasing Task Possible Problem Alternative Solution
Time

Sanction depending on the

3 mins. Log in Late
terms and condition

Preparation of
10 mins. Incomplete order list Double check the orders
order

Quality and Product may be

20 mins. Recheck/Repackage
Quantity check inadequate or finished

Meet the
1 hr. manufacturing    
personnel

Settlement of
10 mins. No receipts Ask for receipts
payment

Recording and Not paying on exact Providing a promissory

10 mins.
issuance of receipt dates note

Table 28
Production Schedule
Time Activities Personnel Possible Solution
Problems
3mins. Log in Late Apply Multitasking
10 Preparation Production Lack of Contact the suppliers
mins. of equipment Personnel ingredients immediately
and and
ingredients Assistant
Production
Personnel
20 Marinate the Assistant Mistake in
mins. chicken Product marinating
breast Personnel

20 Fried the Production Mistake in

mins. molo Personnel frying
wrappers

15 Put all the Operating

mins. ingredients Personnel
for molo del
fabco jr
15mins Put all the Operating
. ingredients Personnel
for molo del
fabco sr
15 Packaging Operating Lack of
mins. Personnel Packaging

5 mins. Labeling Operating

Personnel Incorrect
Label
10 Final Quality Marketing Not yet good
mins. Control Manager
5 mins. Storage Damage Change the Packaging

Table 29

Packaging Schedule

Time Activities Possible Problems Alternatives Solutions

5 Product quality Damaged products Report and return it to the
mins. assessment from the suppliers suppliers

5 Checking of Confirmed the orders to the

Incomplete orders
mins. products customers

15 Lack of packaging Find a nearby stores to buy

Packaging
mins. materials materials that needed

3 Lack of labeling and

Labeling Double check the labeling
mins. wrong labeling

10 Final quality Unnoticed damage in

Double check the product
mins. assessment the product

Table 30

Schedule of Walk-In Order Process

Actual Time Activity Personnel Possible Alternative
Problem Solution
8 hours Wait for the Operating Absence of Apply
customers personnel personnel that multitasking
assigned

10 minutes Accommodate Operating Many Apply

customers personnel customers multitasking
accommodate

10 minutes Scheduling of Operating Lack of Give

delivery personnel delivery details information for
transactions for walk in confirmation
customers
5 minutes Payment Operating Lack of cash Go to the
personnel for change to nearest store
paying available to
customers ask for change
5 minutes Record the Operating Wrong Correct
order personnel recording of immediately
order

Source of Cost and Equipment, Materials and Supplies

Table 31
Kitchen Equipment Expense

Item Price Quantity Total Useful Life Depreciation

Cost Years

Gas Stove 2500 1 2500 2 years 1250

The table shows the equipment used in the business. The method used in
getting the depreciation is Straight Line Method with the formula of

Cost−Scrap Value
Depreciation =
UsefulValue

Table 32
Office Equipment Expense

Item Price Quantity Total Cost Useful Life Depreciation

Years
Electric 600 1 600 2 years 300
fan
Computer 15,000 1 15,000 5 years 3,000
Printer 4,000 1 4,000 2 years 2,000
 The table shows the equipment used in the office. The method
used in getting the depreciation is Straight Line Method with the formula of
Cost−Scrap Value
Depreciation =
UsefulValue

Table 33

Furniture and Fixture Expense

Useful
Item Price Quantity Total Cost Depreciation
Life Years
Cabinet 1000 1 1000 5 yrs. 200
Cooking
1000 1 1000 2 yrs. 500
tables
Racks 250 1 250 3 yrs. 83

The table shows the furniture and fixture used in the business. The method used

in getting the depreciation is Straight Line Method with the formula of

Cost−Scrap Value
Depreciation=
Useful Life

Table 34
Kitchen Tools Expense

Total Useful Life

Item Price Quantity Depreciation
Cost Years

Big tray 250 1 250 2 yrs. 125

 Fried Pan 500 1 500 2 yrs. 250
Kitchen
100 1 100 2 yrs. 50
tongs

The table shows the kitchen tools used in the business. The method used in

getting the depreciation is Straight Line Method with the formula of

Cost−Scrap Value
Depreciation=
Useful Life

Table 35

Monthly Total Yearly Total

Item Price Source
Quantity Cost Quantity Cost

Pasig Mega
Hairnet 10 3 30 36 360
Market
Pasig Mega
Facemask 5 3 15 36 180
Market
Disposable Pasig Mega
2 6 12 72 144
Gloves Market
Pasig Mega
Apron 20 _ _ 3 60
Market
Total     57   744  
Production Supplies Expense

The table shows the monthly and yearly quantity and expenses for production

supplies. The production supplies needed are hairnet, facemask, disposable gloves and

apron. The product supplies cost will increase 1% starting 2021 to 2025
 Table 36

Office Supplies Expense

Monthly Yearly
Total Total
Item Price Quantit Quantit Source
Cost Cost
y y

Pasig Mega
Ball pen 5 3 15 36 180
Market

Pasig Mega
Record Book 35 _ _ 1 35
Market

Pasig Mega
Receipts 15 3 45 36 540
Market

Pasig Mega
Calculator 90 _ _ 1 90
Market

Pasig Mega
Stapler 50 _ _ 1 50
Market

Pasig Mega
Staples 10 1 10 12 120
Market

Pasig Mega
Coupon Bond 50 _ _ 1 50
Market

Total     70   1,065  

The table shows the monthly and yearly quantity and expenses for office supplies. The

office supplies needed are ball pen, record book, receipts, calculator, stapler, staples,

and coupon bond. The office supplies cost will increase 1% starting 2021 to 2025.
 Table 37

Rent and Utilities Expense

Utilities Expense Monthly (Php) Yearly (Php)

Rent 1500 18,000

Utilities 500 6,000

Total cost of Utilities

2,000 24,000
Expense

The table shows the total amount of utilities expense. The monthly and yearly

expenses of water and electric had been including in the agreement. The early deposit

of five hundred will be paid to the owner of the house. The utilities expense will be paid

at the end of each month. The utilities will increase by 1% every year starting 2021 until

2025.

Table 38

Allowances

Position Monthly (Php) Yearly (Php)

General Manager 2,300 27,600

Marketing Manager 2,300 27,600

Production Supervisor 2,000 24,000

Operation Supervisor 2,000 24,000

 Operation Personnel 1,500 18,000
Operation Personnel 1,500 18,000

Production Personnel 1,500 18,000

Production Personnel 1,500 18,000

Total 14,600 175,200

The table shows the monthly and yearly allowances for every position in the

company. Allowances will be increase by 3% starting year 2022 to 2026.

Table 39

Phil Health Expense

Position Monthly (Php) Yearly (Php)

General Manager 69 828

Marketing Manager 69 828

Production Supervisor 60 720

Operation Supervisor 60 720

Operation Personnel 45 540

Operation Personnel 45 540

Production Personnel 45 540

Production Personnel 45 540

Total 438 5,256

 The table shows the monthly and yearly Phil Health Cost for each position of the

proponents in the company. The expenses for Phil Health will be based on the 2020

Phil Health Matrix.

https://www.philhealth.gov.ph/news/2019/new_contri.php#gsc.tab=0

Table 40

SSS Expense

Position Monthly (Php) Yearly (Php)

General Manager 240 2,880

Marketing Manager 240 2,880

Production Supervisor 180 2,160

Operation Supervisor 180 2,160

Operation Personnel 120 1,440

Operation Personnel 120 1,440

Production Personnel 120 1,440

Production Personnel 120 1,440

Total 1,320 15,840

The table shows the monthly and yearly expenses for SSS contribution for each

position in the company. The cost for SSS will be based on the 2020 SSS Matrix.
https://sssinquiries.com/contributions/sss-contributions-table-and-payment-deadline-

2020/

Table 41

Permit and License Expense

Permit & License Source Yearly

Mayor's License City Hall ₱ 150

Barangay Permit Barangay Buting ₱0

The table shows the total amount of expenses for permit and license, the monthly

and yearly expense in the permit that you will get and pay at the City Hall to legalize the

business to operate legally.

Table 42

Communication Expense

Communication Expense Monthly (Php) Yearly (Php)

Load 200 2,400

Total Cost of Communication

200 2,400
Expense
 The table shows the monthly and yearly cost of the communication expense that

will be used by the proponents to have fast connection to another proponent and to the

suppliers to deliver clear information. The communication expense will be Php 50 per

week, Php 200 per month and Php 2,400 per year.

Table 43

Advertising Expense

Activities Monthly (Php) Yearly (Php)

Flyers _ 300
Tarpaulin _ 600
Personal Selling _ 800
Posters 308 3,000
Social Media 500. 33 5,000
Total 808. 33 9,700

The table shows the monthly and yearly cost of the advertising expense that will

be used by the proponents to promote the products to everyone. The advertising

expense will be Php 800 in a month and Php 9700 yearly. The expense of promotional

will increase by 1% every year as promotional strategies of the company.

Table 44

GAS Expense

  Monthly (Php) Yearly (Php)

 Gas 300 3,600

Total 300 3,600

The table shows the monthly and yearly consumption of gas. It is also based on

the manufacturing overhead.

 Table 45

Transportation Expense

  Monthly (Php) Yearly (Php)

Freight In 240 2,880
Total 240 2,880

The table shows the monthly and yearly expense in the business transportation

cost. The freight in will be in the next five years while in the delivery expense will be

increase by 1% that will start in 2021 until 2025.

Table 46

Monthly Total Yearly Total

Item Price Source
Quantity Cost Quantity Cost
Pasig Mega
Broom 120 _ 120 3 360
Market
Pasig Mega
Sponge 10 2 20 24 240
Market
Dishwashing Pasig Mega
45 1 liter 45 12 liters 540
Liquid Market
Pasig Mega
Dustpan 40 _ 40 2 80
Market
Pasig Mega
Garbage Can 80 _ 80 2 160
Market
Pasig Mega
Hand Soap 30 2 60 24 720
Market
Pasig Mega
Rag 10 5 50 60 600
Market
Total 335    415   2,700  
Cleaning Materials
 The table show the monthly & yearly quantity and cost of cleaning materials that

needed in the business. The cost of cleaning materials will have increase in 1% that will

start on 2021 to 2025.

Print Layout

Figure 12: Plant Layout of FABCO Company

The figure above shows the store layout of FABCO Company. The store has a dining

area for customers, the cashier area wherein the negotiation between the consumer

and the cashier occur. Kitchen and the Production Area where Molo del Fabco are

made.
Waste Disposal Management

BIODEGRADABLE

F_______ Trash
FABCO COMPANY
────

NON-BIODEGRADABLE

Junkshop

Figure 12: Waste Disposal Management System

All the business waste materials will collect every 3:00 pm. The wastes that
biodegradable will put on the trash bag while the non-biodegradable which are the
recyclable materials will be sold to the junkshop and other recycle materials must be
reused.
 CHAPTER IV
MANAGEMENT ASPECT

Management is one of the secrets to the company's success. The company has

to prepare all the operating activities. This chapter demonstrates the management role

as a distinct process of planning, coordinating, hiring, directing, and managing,

conducted by using manpower and other business tools to decide and achieve the said

goals. This chapter also focuses on the people behind the business as well as their role

and position.

Objectives:

1. To understand pre-operating activities such as plan and expense, as well as all the

company's operational activities.

2. To construct an organizational structure to show the assigned role for each

proponent.

3. To carry out a job analysis showing the job description and job expectations for each

position in the company.

4. To establish a plan for manpower and the company's payment scheme.

5. To assemble a plan for the next five years.

6. To make a business policy to be adopted by the company for its development,

service and customer.

 Table 47

Pre-Operating Activities of FABCO COMPANY

Ap Ju Oc
Month Jan Feb Mar May Jul Aug Sep Nov Dec
r n t
Year 2020
Acquisition of capital                        

Business Planning                        

Product making and

                       
testing

Canvassing of fixed
assets, supplies, and                        
materials

Preparation of
                       
Business Location

Acquiring permits
                       
and license

Purchasing of
                       
equipment furniture

Purchasing of
supplies and                        
materials
Promotion of
                       
business
Opening of bank                        
 account

The table shows the planned pre-operating activities to be done by the company.

1. Acquisition of Capital- The proponents will acquire a capital amounting of Fourth

Eight Thousand Pesos (48,000) on the months of June to September 2020. With the

money collected the following activities can be done.

2. Business Planning- The proponents planned the business from the month of July to

September 2020.

3. Product making and testing- The proponents practiced on making product in the

month of October to December 2020.

4. Canvassing the Fixed assets, supplies and materials- The Company canvas the

needed fixed assets, supplies and materials so that the proponents be able to predict

the total cost. It is done in the month of September 2020.

5. Preparation of business location- The proponents prepared the Location in July

2020.

6. Acquiring the permits and licenses- The proponents do all the legal features like

the Business registration in the month of July 2020.

7. Purchasing of equipment, furniture, fixture and tool- The proponents buy the

needed equipment, furniture and tools in the month of September 2020.

8. Purchasing the supplies and materials- The proponents buy the needed supplies

and materials for the operation and production from September 2020.

9. Promotion of business and products- The proponents introduced the business to

the public from October to December 2020.

10. Business renewal. The proponents will renew the business during after the selling

day.

Table 48

Pre-Operating Budget/Cost

Activity Expense Budget

Acquisition of Capital 48,000
Business Planning 200
Product making & testing 4000
Canvassing of Fixed 2940

assets, supplies & material

Preparation of business 1500

location
Acquiring licenses and 150

permit
Purchasing of equipment,

furniture and tools 29700

Purchasing of supplies and

cleaning materials 627

Opening a bank account 500
Purchasing of raw

materials for first 895

production
Total Cost 40572
Cash on Hand 19488

The table shows the cost of budget of pre-operating activities.

Operating Activities
Table 49
 Operating activities of Molo Del Fabco Company

Days 2–8 9 - 15 15 - 22 23 – 29
Week no. 1 2 3 4
Month January
Year 2021

Start of business operation        

Purchasing of raw materials        

Promotional Strategy        

Intense Selling        

Inventory        

Financial Report        

Deposit on Bank Account        

Proponents Meeting        

Business evaluation and

       
improvement

Business renewal        

The table shows the operating activities of the business.

1. Start of business operation-The business started to operate at the third week of

January.
2. Purchasing of raw materials-The proponents buy the raw materials every day for

the whole operation.

3. Promotional strategy-The promotional strategy of the business conducted at the

third week of October 2020.

4. Intense Selling-The product are sold every day except for non-working holidays or

rest days.

5. Inventory-The inventory is done every day for the whole operation to monitor it.

6. Financial Reports-The financial reports completed during the last week of the month

for the whole operation to protect the cash.

7. Deposit on bank account-The deposits on bank account done during the last day of

the month of September for the whole operating period to secure the income of the

business.

8. Proponent's meeting-The meeting is done every day to discuss about business.

9. Business evaluation and improvement-The business improvement happened

every day.

10. Business renewal. The proponents will renew the business during after the selling

day.

Organizational Structure

John Keith B. Chua

General Manager
 Figure 14: Organizational Structure

The figure shows the organizational structure of the company. The company

organizational structure is composed of General Manager who has an overall

responsibility in overseeing daily business activities within a company. Under the

General Manager are the Production Supervisor, Marketing Manager and the Operation

Supervisor. Production Supervisor is responsible for monitoring organizing the

processes in production by supervising the production personnel. The Marketing

Manager who is responsible coordinating marketing campaigns with sales activities and

developing marketing strategy for the company in line with the company objectives.
Lastly, the Operation Supervisor is responsible for observing and analysing overall

efficacy of the department by supervising the operational personnel.

Job Analysis

Table 50

Job Analysis

Position Job Description Job Specification

*male
John Keith
General Manager executive who has *18 years old
B. Chua
general responsibility for controlling both the *College level of any
General revenue and cost elements of a company's Business
Manager income statement known as profit & loss *Strong leadership qualities
responsibility. *Good knowledge of different
business function

Duties of marketing manager includes the:

*Female
managing all marketing for the company
Rachelle *18 years old
and activities within the marketing
Florentino *College level of any
department. Developing the marketing
Business
(Marketing strategies in line with company objectives.
*Ability to coordinate the
Manager) Organizing marketing campaigns with sales
efforts of a large team of
activities. Planning and implementing
diverse creative employee
promotional campaigns.

*Female
Abigail The Operation Supervisor is the one who *18 years old
Orticio observe and analyze general effectiveness *College level of any
of the department and ensure thing are Business
(Operation moving. They also report financial findings *Excellent communication
Supervisor) of the company. skills
*Goal oriented

Karylle *female
Simmoneth The operation personnel are the one who *18 years old
serve the operation supervisor in recording *Proficient in Banking
(Operation and organizing the inventories. *Goal Oriented
Personnel) *Good Motivational Skills
 *female
Mercy The operation personnel are the one *18 years old
Bolaños who serve the operation supervisor in *Proficient in Banking
(Operation recording and organizing the *Goal oriented
Personnel) inventories. *Better than average written and
spoken communication skills

The Production Supervisor is the person *female

Aubrey directly responsible for overseeing and *18 years old
Arrabe regulate the equipment staff, and *Proficient in Banking
(Production process on a production area. They will *Goal Oriented
Supervisor) supervise scheduling and routine *Better than average written and
production activity. spoken communication skills

*female
*18 years old
Ailah *College level of any business-
Oliveros The Production Personnel is responsible
related course
in the purchasing and production of the
(Production *Proficient in Banking
company's product
Personnel) *Goal oriented
*Better than average written and
spoken communication skills
*female
*18 years old
Marjorie *College level of any business-
Caranguian The Production Personnel is responsible
related course
in the purchasing and production of the
(Production *Proficient in Banking
company's product
Personnel) *Goal oriented
*Better than average written and
spoken communication skills
Table 51

Compensation Schedule of FABCO COMPANY

Monthly Allowance Net Monthly

 Daily Working Weekly
days
Allowance perAllowance
week Net
Phil
Name SSS Health Yearly

E E ER EE
R E
Chua 115 6 690 2,760 16 80 300 300 2,300 27,600
0
Florenti 115 6 690 2,760 16 80 300 300 2,300 27,600
no 0
Arrabe 100 6 600 2,400 12 60 300 300 1,980 23,760
0
Orticio 100 7 600 2,400 12 60 300 300 1,980 23,760
0
Bolaños 75 6 450 1,800 80 40 300 300 1,420 17,040

Cardena 75 6 450 1,800 80 40 300 300 1,420 17,040

s
Carangu 75 6 450 1,800 80 40 300 300 1,420 17,040
ian
Oliveros 75 6 450 1,800 80 40 300 300 1,420 17,040

Total 730 48 4,380 17, 520 8 240 240 14,240 170,880

80 44 0 0
0

The table shows the name of the proponents and their daily, weekly and monthly

allowances. It also shows the SSS and Phil Health contribution of each position.

https://www.philhealth.gov.ph/news/2019/new_contri.php#gsc.tab=0

https://sssinquiries.com/contributions/sss-contributions-table-and-payment-

deadline-2020/
 Table 52

Year 2020 2021 2022 2023 2024

Renewal of
Permit and          
License
Formulate New
Marketing          
Strategies
Research and
         
Development
Store/Plan
         
Expansion
Acquisition of
New Equipment          
and Tools
Five (5) Years Future Plan

The table shows the five (5) years plan of the company.

1. Renewal of the permits and license- The Company must be required to renew

permit and license year.

2. Formulate new marketing strategies- the company formulate a marketing strategy

in order to get the potential and target market.

3. Research and development- The Company will conduct research and development.

In a year of 2021 and 2023.

4. Store/Plan expansion- The organization must do a storage expansion to make a

bigger stock of product in a year 2022 and 2024.

5. Acquisition of new equipment and tools- replacing old equipment and tools are

important to maintain the hygiene and clean progress of making the product.

Table 53
Budget/Cost for Future Plan

Activities Budget/Cost

Renewal of Permits and License 750

Formulate new marketing strategies _

Research and Development _

Store/Plant Expansion 3,000

Acquisition of New Equipment 3,000

TOTAL 6,750

The table shows the 5 years future plan of the Company.

1. Renewal of permits and license- The Company renew the license each year at the

start of the first month of the operation of the company which will cost ₱750.

2. Formulate new marketing strategies- The Company will develop effective and

premium marketing strategies to attract the target markets. Promotion and

communication costs of the company are expected to increase 1%.

3. Research and development- In order to exceed the demand of the customers, the

company will conduct research and development of the product. The promotion and
communication expense of the business are expected to increase by 1% in order to

carry out this activity.

4. Store/Plan expansion- the company will expand the store/ facility to increase

production. This will take place in the fourth year of the company’s operation. The rent

will be increase Two Thousand and One Thousand for the renovation of the store.

5. Acquisition of New Equipment and Tools- the Company will purchase the gas and

rack for the fourth year of the operation. The company will purchase fire extinguisher

and additional tongs and trays for the fifth year of operation. The acquisition is intended

to increase the production of FABCO Company. The total acquisition cost will be

₱3,000.

Names Sun. Mon. Tues. Wed. Thurs. Fri. Sat.

Chua            

Florentino              

Arrabe              

Oliveros              

Caranguian              

Orticio              

Bolaños              

Cardenas              
Table 54

Man-Power Schedule
 Legend
Working Day
Rest Day

Company Policies

A company policy established the rules to assist employers handling employee

accountability, health, safety, and interactions with customers. Customers policies

provide guidelines on working with costumers and outline what costumers can expect

from the organization based on the Book III Condition of Employments and Book IV

Health and Social Welfare Benefits of Labor Code of the Philippines.

Operations and General Policies

1. The working hours is Six (6) hours a day. The personnel must come on time to do

his/her designated task. (Art. 83. Normal hours of work)

2. The proponents must give (1) hour time of their regular meals. (Art. 85. Meal

periods).

3. The proponents must provide each of his employees a rest period of not less than

twenty - four (24) consecutive hours after every six (6) consecutive normal workdays.

(Art. 91. right to weekly rest day)

4. The proponents must reach the target production, target sales and finish all his/her

work for the day.

5. Absences on workday should not be tolerated. Absent personnel shall be subjected

to a proper sanction.

6. In emergencies/accidents happen during work hours, medical attention will be given.

Production Policies
1. Production workers must be neat and clean always. Nail polish is not allowed and

fingernails must be trim and clean.

2. Must wear prescribed clothes for the protection of both products and personnel.

Prescribed clothes within the production are pants, white shirt, apron, hairnet, gloves,

and face mask.

3. The production area must be clean always.

4. Quality control shall be carried out in all product made.

5. Target number of finished goods must be completed.

Customer Policies

Product Handling
Product handling must be depending on the transaction and order. The company will

not be responsible for managing issues in the following cases/problems.

1. One day product return policy- The customers have a power to check first the

product before to buy it. And give them within 1day transaction for product return.

Changes product are approved but refund of payment should not allow.

Mode of Payment
1. Business is just walk in which the customer must pay in cash.

Table 55

Sanctions of Fabco Company

Offenses 1st 2nd 3rd 4th

Late        

Absent        

Improper /Incomplete Attire        

Damage        

Legend
   Oral/ Verbal Apology   Suspension

  Written Apology   Termination

1. Oral Verbal Apology- By oral/verbal apologies for the first offense and slight

omission, the proponents make amendments.

2. Written Apology- for the second time, the proponents are expected to write an

apology for achieving the policies of the company.

3. Suspension- one week suspension will be punishment to the proponent who did not

observe the policies for the third time.

4. Termination- the proponents will be kept for the fourth time to commit a major
offense and break the policies.