2219 Recto Ave, Sampaloc, Manila, 1008 Metro Manila

A Business Plan Presented to

Senior High School College of Education
University of the East – Manila

In Partial Fulfillment of the requirements for HBN 121: Entrepreneurship

Members:
Mendoza, Patricia
Gamban, John Edwin
Barriga, Ma. Alyssa
Jadulan, Jaymielyn
Velasco, Kate Ivy
Javier, Hannah Rish
Filomeno, Averry
Cardano, Daniele John
Maniquis, Alyssa Mae
Esmael, Al
Malang, Juhaira
STE 12 – 5M

October 2020

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Chapter I
INTRODUCTION
Background of the Company
In today’s generation, a lot of businesses offer different types of products and
services. Products have been evolving because of the emergence of new styles, tastes
and preferences served in the market therefore, this makes it harder for the business to
engage in the competition inside and outside the market. Nevertheless, business to be
established shall be served in a new and refreshing style of trend wherein it is
affordable for all ages.

The reason the business was created because we want to provide the wants and
needs of the consumers. We are your one stop online shop that is based in Manila. We
want to give you the best of quality products that is produced by our Production Team.
We make sure that our products are made with incredible care to detail and safety, and
a sprinkle of love.

Mission and Vision

CINCO will provide products of superior quality that will improve the lives of our
consumers. We are committed not only in our business but also in using our voices and
actions to positively influence and protect the world. We care for your style and safety.

Values
CINCO is committed to innovate and excel in serving with respect and care for
customers by offering the budget-friendly quality of products and services. The café
also demonstrates services with integrity, trust, and passion.

Objectives
 To produce stylish and fashionable masks
 To satisfy consumers with our service
 To help consumers to be fashionable yet protected
 To increase revenue and decrease expenses annually.
 For the owners to develop a better leadership skill and potential.
 For employees to continually learn and adapt to changes.
 To make business products effective and excellent.

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Chapter II
EXECUTIVE SUMMARY
CINCO is a starting business that offers products that you will need in this time of
pandemic. The business features a full product listing that offers affordable prices in
every product and the materials to be used are good for the environment – eco-friendly,
wherein the purpose of it is to lessen the usage of non-biodegradable waste. Our shop
is located at the University of the East - Manila, which is along C.M. Recto Avenue.

CINCO is a
business owned by Patricia Mendoza with a starting capital of Php 50,000.00. Under
CINCO, we have the department heads, John Edwin Gamban, Kate Ivy Velasco, John
Daniele Cardano and Averry Filomeno followed by the department assistants,
Jaymielyn Jadulan, Alyssa Barriga, and Juhaira Malang.
This business plan will provide the vision, mission, and objectives of the
business. Also, the different scope of the business such as products and services
offered, market focus, action plans, management team, financial plan, and financial
forecast including the projected amount on sales, profit and loss, capital and income.

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Chapter III
BUSINESS ORGANIZATION

The organizational chart begins with the Chief Executive Officer, as seen in the above
image, followed by the four separate departments with the heads of the department and
their assistants: production department, marketing department, finance department, and
human resources. Below are the officers' duties and obligations.

The Chief Executive Officer will be the one to track and monitor the business
operations. In addition, activities from the monthly statement and report are analyzed to
come up with business decisions and achieve its main goal and purpose.
Department Heads
1. Human Resources Director
In charge of tracking the overall performance of the executives and the
representatives. He's important for the effective and efficient running of the human
resources department in CINCO.

2. Chief Marketing Officer

Along with the branding and image of CINCO, she is also responsible for the
promotional activities and organizational design in our company. She develops a
brand strategy and supervise the execution of the marketing strategy.

3. Chief Financial Officer

The Chief Financial Officer handles the overall finances of the business, from
financial planning, budgeting, costing, the actual expenditures and also controlling
the expenses by cost cutting. Responsibility to prepare monthly reports or the
statement is also required.

4. Production Manager

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In charge of overseeing the flow of production. By forecasting expenses and

negotiating and discussing budgets with the members, you can guarantee that
production stays cost-effective.

Chapter IV
PRODUCTION PLAN

A. Production Specification
It is necessary to wear face masks nowadays for it is required by the authority to
fight the current situation we are in. Masks are not a fashion accessory but they do take
up a fair amount of real estate on your face, so it’s no surprise that people are looking
for aesthetically pleasing ones. With that in mind, we decided to create a fashionable
and stylish mask yet will also protect you from the virus.
While washing your hands with soap and water should be your go-to, hand
sanitizer does work in a pinch. Let's face it, sometimes you don't have soap or a
dependable sink and that's where hand sanitizer sparkles. In those circumstances, hand
sanitizers are a pretty solid backup plan. Hand sanitizer is a good way to disinfect when
you don't have access to soap and water between hand washes.
B. Product Process
C. Plant Related Capital
D. Machinery And Equipment
The Cinco face masks have their own supplier where the production, designing,
and sublimation printing are included.
The Cinco Sanitizers
E. Plant Location
Our business is located at University of the East - Manila
Address: 2219 Recto Ave, Sampaloc, Manila, 1008 Metro Manila
F. Building and Facilities
The two entrances to the University of the East - Manila is the Recto gate, the
main, and the Gastambide gate. The location is convenient and within reach. The
university can be searched online.
G. Raw Materials
Facemasks

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 2219 Recto Ave, Sampaloc, Manila, 1008 Metro Manila

95% cotton - the inner part that is soft fluffy usually white material made up of twisted
hairs.
5% polyester - the outer part that makes the mask wrinkle-resistant property and its
ability to retain its shape

Hand Sanitizer
99% Isopropyl Alcohol (1 cup) - a colorless, flammable chemical compound with a
strong odor.
3% Hydrogen Peroxide (1 tablespoon) - In its pure form, it is a very pale blue liquid,
slightly more viscous than water.
Glycerin (1 Teaspoon) - used as a moisturizer to treat or prevent dry, rough, scaly, itchy
skin and minor skin irritations
Essential oils (1 to 2 drops) - made from parts of certain plants like leaves, herbs, barks,
and rinds. The scents available are Tea tree, Lavender, and Lemon.
H. Power Supply and Utilities
Electricity Utilities
In sequence on assembling the design of facemasks, electricity will be the
number one utility. It is used for sublimation printing. The rate for sublimation printing
ranges from sixty (60) to eighty (80) pesos per mask.
I. Production Cost

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 2219 Recto Ave, Sampaloc, Manila, 1008 Metro Manila

Chapter V
MARKETING PLAN

A. Market Profile

B. Demand Analysis
1. The projected consumption First Year, then Five Years & Ten Years Operation.

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2. Major Segmentation users of the product and their location.

C. Supply Analysis
1) Source of Product Supply

a) Foreign - Cínco’s masks are made from 10% cotton and 90% polyester while the
sanitizers are made from 99% Isopropyl Alcohol, 3% Hydrogen Peroxide,
Glycerin, and Essential.

b) Local – The raw materials that are used in making the masks are from a local
supplier and made by them.

c) Factor Analysis of the Past and Future Supply Chain

Supply chains, also known as value chains or demand chains, can be defied as all the
links involved in managing the flow of products, services, and information in the agri-
food system, from seed to table (Wysocki). The genuine proportion of supply chain
achievement is the means by which well exercises are composed over the gracefully
chain to make an incentive for buyers while likewise expanding the benefit of each
connection in the supply chain. The great result of the business relates to the past
components including the worker's difficult work and association during undertakings,
likewise the representative's perception on leading an item is a major effect.

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Chapter VI
Human Resources Plan

A. Advertisement of Job Vacancies

We have a passion to serve our customers by going beyond making of new
products. If you share the same passion, we are looking for you. Young individuals who
are willing to perform in a challenging, rewarding environment and energetic dedicated
as enterprising individuals to join our team for the following vacancy.

B. Application Requirement
Regardless of which job or line of work you are applying for, a list of requirements for
the application is inevitable. Here are the following requirements in accordance to the
labor code of the Philippines.

1. Birth Certificate – You may obtain a copy of this from the National Statistic’s Office
or more commonly known as NSO.
2. Transcript of Records – You can request this from the secondary school, college, or
university where you graduated from. This shows your academic performance when you
were still schooling.
3. SSS ID – You may obtain this from the Social Security System or more commonly
called SSS, a social insurance program ran by the government.
4. NBI Clearance – This document shows that the applicant is free from charges. You
can get it at the National Bureau of Investigation (NBI).
5. Police Clearance – This clearance from the Philippine National Police (PNP)
proves that the applicant has no complaint or record in the police department.
6. TIN ID / Form – This document which can be obtained from the Bureau of Internal
Revenue shows that the applicant is a taxpayer. It also proves certain personal
information.
7. PhilHealth – Membership to PhilHealth is requested in some employment agencies
or companies. It is a government health program that aids its members in terms of
hospital confinements.
8. Resume – This document shows a summary of an account of the applicant
including his or her education, previous experiences, and qualifications for the job.

C. Hiring process
Resume - objective/s, work histories, a summary of educational background,
accomplishments in this field (optional), and skills are included.

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Interview - a face-to-face structured conversation where questions are being asked for
an applicant. Applicants are expected to answer questions accurately and precisely.
Practical Assessment or Screening - it includes the advertising and marketing strategy
of a person for a different product. The HR manager will provide a schedule for the
applicants who passed the last interview. (Duration: two (2) to three (3) months)

D. SALARY AND WAGES

On a Regular Day
Overtime
For Chief Executive Officer (CEO): 40% per hour ([₱2 000 x .40/hour]+[₱2 000])
For Departmental heads or managers: 35% per hour ([₱1 500 x .
35/hour]+[₱1 500])
For Assistant Managers: 30% per hour ([₱1 000 x .30/hour]+[₱1 000])

For minimum wager: 25% per hour ([₱512 x .25/hour]+[₱512])

Special non-working holidays

For Chief Executive Officer (CEO): 45% per hour (₱2 000 x .45/hour]+[₱2 000])
For Assistant Managers: 40% per hour (₱1 000 x .40/hour]+[₱1 000])
For Departmental heads or managers: 35% per hour ([₱1 500 x .35/hour]
+[₱1 500])
For minimum wager: 30% per hour (₱1 500 x .30/hour]+[₱1 500])

DIfferential - 10% per salary ([monthly rate x .10]+[monthly rate])

Day off - 30% per salary ([monthly rate x .30]+[monthly rate])
Holiday - doubles the monthly rate (monthly rate x 2) (Note: this is only applicable for
employees who have permanent positions)
13th Month pay - /12 ([monthly rate x 10 months]/12)

E. BENEFITS
Employees’ Benefits and Regulations
Standard office hours for CEO, Managers, Assistant Managers and regular employees
will range from eight (8) hours a day.
Special non-working holidays include: Chinese New Year, Black Saturday,
Ninoy Aquino Day, All Saint’s Day, Additional special days, Christmas Eve, and Last
day of the year

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Minimum age of a wager must be eighteen (18) years and above

A CEO must have a doctoral degree
The departmental heads or manager must have a masters degree
The Assistants managers can be an undergraduate student
In cases like the financial crisis, employers are still can receive the exact
amount of salary
Mandatory Employee Benefits and Contributions
Working days range from five (5) days per week and twenty (20) days per month
A sick leave will range from fifteen (15) days (Note: There will be no cut-off
salary)
The maximum days for vacation leave is fifteen (15) days (Note: There will be no
cut-off salary)
Meal break will range from one (1) hour
In six (6) days of labor, an employee must have a weekly resting day not less
than 24 consecutive hours
Maternity and Paternity will still receive benefits
Precedence of the health of each employee will be attained. A health card
(Maxicare EReady) will be provided by Maxicare Primary Care-Center Makati Med
The country’s social insurance program is included strengthened by the
provisions of the Republic Act No. 8282 or the Social Security Law. The following
bodies are the Social Security System (SSS), Home Development Mutual Fund
(HDMF), PAG-IBIG Fund and Philippine Health Insurance Corporation (PhilHealth)
Under Presidential Decree No. 851, employers from the private sector in the Philippines
are required to pay their rank-and-file employees a Thirteenth 13th Month Pay not later
than December 24 every year. The 13th month pay is equivalent to one twelfth (1/12) of
an employee's basic annual salary.

F. Training and Development

High-impact training and development programs don’t just happen. Instead, they’re the
result of a careful planning and alignment process. In our training and development this
is our simple alignment process

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The systematic process of improving the performance of the individuals and

groups of the employees in the organizational setting show the image below. It has
become most common and continuous task in any organization for updating skills and
knowledge of employees in accordance with changing environment. Optimization of
cost with available resources has become pressing need for every organization which
will be possible only by way of improving efficiency and productivity of employees,
possible only by way of providing proper employee training and development
conditioned to that it should be provided by professionals.

G. Promotional Process

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1. Problem Definition: First of all, the management must identify the need for a
promotion and should take into consideration the following points:
§ Which Product/Service is to be promoted?
§ Who is the target audience?
§ How much budget is allocated for the promotional activities?
§ What message is to be conveyed to the prospective buyers?
§ What marketing strategies are to be adopted?
§ Which analytical tool is to be used?
2. Establishment of detailed Objectives: The objectives are the end goals
towards which all the efforts are directed. Once the target audience is identified the
management must set the objectives of the promotion. The objectives could be to
encourage the non-users to use the product, increase the usage of the existing
customers, or enter into a new market segment with a modified product line.
3. Design of Promotion Mix: Once the objectives are set, these provide the
basis for selecting an appropriate promotional tool (advertising, personal selling, sales
promotion, etc.). The management must carefully analyze all the costs and effects
associated with each marketing element before making the final choice.

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4. Planning Sales Promotion Programme: This is the most crucial step of

promotional planning that requires the management to decide the time duration of the
promotion i.e. for how long the promotional tool is to be used.
5. Pre-testing: Once the Sales Promotion Plan is prepared, it is tested in few
selected market segments to identify the potentials or serious problems before its full
launch. Here the management scrutinizes the cost effectiveness of the promotional
plan, problems of ambiguity (if any), customer response rate, etc.
6. Implementation: After the promotional plan is tested in the few selected
areas, it is ready to be launched in the complete market. Here the management must
take care of two important time factors, Viz. Lead Time and Sell-in Time.
The lead time is the time necessary to bring the plan to the point where the
incentives are made available to the public while; the sell-in time is the time starting
from the date of the release until the time 90-95% of the incentives are received by the
potential customers.
7. Monitoring and Evaluation: After implementation, the performance of the
promotional plan is checked against the set standards and objectives and the corrective
actions are taken accordingly. In case the objectives are defined in quantitative terms
then the measurement of the actual results would be quite easy. Thus, the promotional
planning is an integral part of marketing wherein the management decides on a
complete promotion plan which includes all the marketing strategies to be adopted
during the life cycle of the product from the introductory stage till its decline stage.

Chapter VII-Financial Studies…

A. TOTAL PROJECT COST

B. Capital investment structure

C. Projected break-even analysis
D. Return on investment

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Chapter VII
Financial Plan

A. Total Project Cost

The company’s aggregated capital is 13200 pesos which was deducted by
85.23% due to the costs and expenses incurred by the company for the establishment
of the business.
The table below shows all of the costs and expenses made by the company:

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B. Capital Investment Structure

The company conducted a contribution to be able to produce the initial capital of
the business through acquiring them to contribute 1200 pesos via Gcash to the finance
manager. There are 11 members overall who contributed over the course of 3 weeks,
where 3 members contributed in the first week, 5 members in the second week, and 3
members in the third week. The investment in capital started in the first week of
September 2020 and finished on the 3rd week of September 2020. By the end of the
contribution period, the company accumulated the initial capital with a total of 13200
pesos.

Initial Capital:
P 13200

The capital mounted up to 13200 pesos but gradually descended due to the expenses
made. The capital was reduced by 85.23% with a totality of 11250 pesos.

C. Projected Break-even Analysis

For the Period: 2020-2021

Selling Price: Php 120

Fixed Costs
Payroll Php 262000
Total Fixed Costs (TFC) Php 262000

Variable Costs

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Cost of Goods Sold Php 46.91 per unit

Sum Php 46.91

Total Variable Cost per Unit (V) Php 46.91

Contribution Margin per Unit (CM)= P - V Php 73.09
Contribution Margin Ratio per Unit (CMR)= (P – V) / P 60.91 %

Break-Even Point
Break-Even Units (X) X = TFC / (P – V) 3584.62 units
Break-Even Sales (S) S = X – P = TFC/CMR Php 430142.83

D. Return on Investments

The total sales of all the revenue made during the selling period amounted to
16200 pesos. The overall capital is 13200 pesos from the contributions of the members

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of the company. By dividing the total sales to the capital, the venture got 81.48% for the
return on investment.

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