Organizational Diagnosis and Analysis of

BUSINESS PROPOSAL FOR KABUHAYAN NG MGA KABARANGAY TUNGO SA
TAGUMPAY ( KKT) 1
ORGANIZATIONAL DIAGNOSIS AND ANALYSIS OF NEEDS AND
RECOMMENDATION INTERVENTION OF KKT (Kabuhayan ng
mga Kabarangay tungo sa Tagumpay)
A Business Plan presented to the
Kabuhayan ng mga Kabarangay tungo sa Tagumpay (KKT)
and the
School of Business and Accountancy
Junior Consultants:
Dizon, Nerizza M.
Salenga, Rowena
Santos, Lawrence Karl
Cruz, Julian Mari
Cunanan, Ceejei
Adviser: Mrs. Amelynn Corpuz
August 2017
TAGUMPAY ( KKT) 2
Acknowledgement
Sweats of hard work were shed and a lot of difficulties had tried to under the accomplishment
of this Business Plan, but because of our group’s strong determination and the support of some
people, we were able to come up with this one as a fruit of all those sweats.
First and foremost, we would like to give our whole-hearted appreciation and gratitude to
Mrs. Elinor Torres for giving us her full cooperation. Without her we would not be able to finish
this.
We would also like to thank Mrs. Amelynn Corpuz for being a very patient and kind adviser.
She helped us a lot and encouraged us to come up with this superb output.
Lastly, we would like to thank the Kabuhayan ng mga Kabarangay tungo sa Tagumpay
(KKT) (and to those other public and private sectors who support this) for giving us the
opportunity to be a part of this wonderful project. This experience had taught us to cope-up with
the pressures laid down by the real world outside the campus. We’ve also learned how to deal
with other people better. This opportunity simply had a great impact into molding the character
of each one of us.

TAGUMPAY ( KKT) 3
RECOMMENDATION SHEET
This Business Proposal for KKT (Kabuhayan Ng Mga Kabarangay Tungo Sa

Tagumpay) prepared and submitted by Dizon, Nerizza, Ceejei Cunanan, Julian Mari
Cruz, Lawrence Karl Santos and Rowena Salenga in partial fulfilment of the
requirements for the degree in Bachelor of Science in Business Administration, has
been examined and is recommended for acceptance and oral examination.
AMELYNN B. CORPUZ
Business Research Adviser
ORAL EXAMINATION
Approved by the Committee on Oral Examination with a grade of ______on ________
JOSELYN B. CANLAS
Chairman/ KKT Owner

TAGUMPAY ( KKT) 4
JUSTICIA C. DALIDA MBA J. FRESNIDO
Member/Faculty Member/Faculty
TABLE OF CONTENTS
I. Executive Summary…………………………………………………………….5
i. Executive Summary
ii. Objectives
iii. Vision Statement
iv. Mission
v. Keys to Success
II. Company Overview……………………………………………………………..7
i. Company Overview
ii. Past Performance
III. Industry Analysis………………………………………………………………..8
i. Industry Analysis
ii. Industry Participants
IV. Market Analysis…………………………………………………………………9
i. Market Analysis
1. Market Segmentation
2. Target Market Segment
3. Market Growth
ii. Marketing Mix (4P’s)

TAGUMPAY ( KKT) 5
1. Products
2. Future Products
iii. Pricing Strategy Distribution Patterns
iv. Promotion Strategy
v. Competitive Comparison
vi. Competition and Buying Patterns
vii. Strategy and Implementation Summary
1. Sales Strategy
2. Sales Forecast
3. Sales Programs
4. Strategic Alliances
V. Production………………………………………………………………………16
i. Production Plan
ii. Sourcing of Raw Materials
iii. Facility Size and Location
iv. Production Capacity
v. Milestones (Activities)
VI. Finance………………………………………………………………………..19
i. Financial Plan
ii. Important Assumptions
iii. Break Even Analysis

TAGUMPAY ( KKT) 6
iv. Projected Profit and Loss Statement
v. Projected Cash Flow Statement
vi. Projected Balance Sheet
VII. Human Resource…………………………………………………………….23
i. Production Process Task
ii. Organizational Structure
iii. Management Team and Gaps
iv. Personnel Plan
VIII. SWOT Analysis ……………………………………………………………….2
IX. Problem Identified………………………………………………………….. 26
X. Recommendations……………………………………………………………26
Appendices………………………………………………………………………..……...27
References……………………………………………………………………………….43
TAGUMPAY ( KKT) 7
Executive Summary
Kabuhayan ng mga Kabarangay tungo sa Tagumpay (KKT) is an organization under the
supervision of Department of Trade and Industry (DTI) located at Zone 5 Barangay San Felipe,
City of San Fernando Pampanga manage by Mrs. Jocelyn and Mr. Rickton Canlas. KKT, the
business organization was published last April 2015 and they're engaged with the handcraft/s
industry that is made of water lilies coming from the Pandaras River located also in City of San
Fernando, Pampanga.
An observation was conducted by a group of junior consultants in the course of their
company found the problems such as lack of manpower, needs consistency when it comes in the
products that they're selling, needs to improve its promotional strategies, and lack of equipments
to be used. We recommend that they should hire additional people for the fast productivity of the
organization, they should also increase their marketing strategy in their way of promoting the
product such as posting tarpaulin or giving some flyers, increase its awareness in social media
site and KKT cam aslo participate in some trade fair or bazaars in malls.
Objectives:
1) To be a top handcraft supplier to furniture stores and malls in the regional market.
2) To maintain the highest form of quality in each product manufactured to be more
competitive.
TAGUMPAY ( KKT) 8
3) To increase the advertisement activities such as posting tarpaulin/s and giving some flyers.
1.2 Vision Statement
To become the world-wide maker of handcrafts in terms of highest form of quality and its
value.
I.3 Mission Statement
To help the residents of Barangay San Felipe to earn their own money so they can live a
better life.
1.3 Keys to Success
1) Product Quality. Providing highest quality products that makes them to be more
competitive when it comes in quality and value.
2) Service. Each member of the organization must be discipline, determine, efficient and
effective at the same time.
3) Marketing. Creating innovative ways of promoting products through the use of making
social media accounts such as Facebook, Instagram and other social media accounts.
4) Management. Proper Employee management and Quality Control are the key factors.
5) Product Uniqueness. The main product of KKT has its unique features since its made of
water lilies and varied in sizes and designs.
II. Company Overview
2.0 Company Overview

TAGUMPAY ( KKT) 9
Kabuhayan ng mga Kabarangay tungo sa Tagumpay (KKT) is a water hyacinth livelihood
program that creates gift decors and handcrafts business, it is located at Barangay San Felipe,
City of San Fernando Pampanga it was established last January 2015, handled by their President
Joselyn B. Canlas. KKT’s products are made of water lilies. Because of the wide number of
water lilies in the area they thought of the opportunity in turning water lilies into something
useful and creative at the same time, it can also give income to their members composed of
mainly unemployed mothers and wives, out of school and jobless youth doing a home-based
business. Like any other business KKT also experience discouragement last July because of
molds detected in their products. Fortunately, with the help of Villar Sipag (Social Institute for
Poverty on Alleviation Governance) Foundation. KKT went on a Villar for lakbay aral training
last November that helped them revived the business. KKT currently have orders of baskets for
Robinsons Mall and bags for Go Negosyo Center of City of San Fernando, KKT is also
conducting a training program every Saturdays’ from the neighboring barangays, to reinforce the
workforce of the firm and encourage other kabarangays to join the livelihood.
2.1 Past Performance
Ever since the KKT members were divided, they were discouraged of continuing the water
lily business due to the other member’s lack of interest because of the detected mold in their
products. They almost lost hope in continuing the water lily business till they were discovered by
the Villar Sipag Foundation. The Villar Sipag community are willing to help the KKT members
in pursuing their business in dried water lilies production. The method that the KKT used the
first-time involved chemicals which may be the cause of molds during the drying of the water
TAGUMPAY ( KKT) 10
lilies but the Villar Sipag community taught them another way on producing them which doesn’t
involve chemicals and it was way faster than their old method.
The Villar Sipag community showed them in their Lakbay Aral program a variety of dried
water lilies product which surprised them because they didn’t know that there are so many things
that the dried water lilies can do which gave them hope and encouragement on continuing the
business. Because of the encouragement that the KKT has received they pursued their business.
Because KKT is an emerging business, they were able to participate in the Exhibit last April
2016 and that’s the only chance they were able to showcase their unique products and that’s also
the only chance that they were able to sell their past products including Coin savers, Vases, and
Weave Bags.
III. Industry Analysis
3.0 Industry Analysis
Water lilies are one of the oldest aquatic plants on this earth. Early lilies were huge in
size with fossils showing lily pads up to four feet wide. As these plants evolved over several
thousands of years they morphed to the size we see today. Evidence of water lilies have been
found in european pre-ice age cave drawings and these drawings show the early types to have
been of the same basic form that exists among hardy species today. Over the last hundred years,
water lily history has become clearer. It began early in the last century with a white man's
discovery of a large & fragrant flower in the fresh water lagoons of the South American jungles.
The natives gave the water lily the name Yrupe meaning water platter.
TAGUMPAY ( KKT) 11
The large purplish-green leaves, floated on the surface of the water providing resting
spots for the local frog population. The water lily handicraft industry has grown by leaps and
bounds since the first entrepreneurs tested the material about a decade ago. In Las Piñas City,
water lilies are booming as more people take notice of the wide range of products that can be
made out of the plant that grow in abundance even in urban waterways.
The water lily handcraft industry still has room to grow especially to overseas, and that
people can still think of many other products which can be made from water lilies such as in
United States, Europe, and Japan. Water lily slippers are popular especially in Japan.
3.1 Industry Participation
In this qualitative research, the participants are categorize into two who has connection to
water lilies and they are: Department of Trade and Industry (DTI) it serves as the primary
coordinative, promotive, and facilitative arm for trade, industry and investment activities, and a
catalyst for intensified private sector activity to accelerate and sustain economic and the Villar
Sipag Community (Social Institute for Poverty on Alleviation Governance which aims to support
projects geared toward helping the less fortunate countrymen break free from the clutches of
poverty. The participants may be of any age, gender and occupation as long as they met any of
the categories given because their experiences and perspectives are the focus of this research.
IV. Market Analysis
4.0 Market Analysis
KKT is a business to business (B2B) kind of business wherein they're sourcing materials
through the use of water lilies of their production process. Last August 30, 2017, The
Metropolitan Manila Development Authority (MMDA) has suspended the Pasig River Ferry
TAGUMPAY ( KKT) 12
System “until further notice” due to the volume of water lilies that clog the river from
Pinagbuhatan in Pasig City to Lawton in Manila. The MMDA decided to temporarily stop the
ferry operation because of navigability constraints along Pasig River which was almost entirely
covered by water hyacinth and other floating garbage. When this happened, propellers had to be
elevated so that tangled water lilies and even pieces of trash could be removed.
But in the good side of it, water lilies are very nutritious which people may not know.
The seeds of the yellow water lily have high content of starch and glucose. Roots and leaves can
be boiled and can be eaten to get the nutritious properties of the lilies. Even one can make jam
from the flowers and use it on toast. Before consuming the lilies, it is very important to identify
the specie because there are many species of lilies which are poisonous.
There are a lot of benefits of water lily.” then in terms of their health benefits they had
indicated that white water lily alkaloids and oils work as very good anti-inflammatory and mild
sedative. To get healthy hair, one can boil its roots a bear and can use it as hair rinse. It really
gives you beautiful healthy and shiny hair. The seed can be used as an alternate to coffee.
4.1 Market Segmentation
Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on distinctive characteristics. The junior consultant proposes to KKT that in
terms of geographic, KKT will target the consumers within the Province of Pampanga and
hopefully with the next few years the firm will go to National to International.
TAGUMPAY ( KKT) 13
Demographics is defined as statistical data about the characteristics of a population, such as
the age, gender and income of the people within the population. People ages 24-45 years old,
specifically women who are basic salary earner within the Province of Pampanga.
Psychographic variables are any attributes relating to personality, values, attitudes, interests,
or lifestyles. They are also called IAO variables (for Interests, Activities, and Opinions). People
in middle class and has the capacity and willingness to purchase the offered products of KKT.
People who wants to help and want a sense of uniqueness when their buying a product that fits
perfectly to the unique products of KKT.
4.1.0 Target Market Segment
The KKT’s Target Market are established organization that has the capacity and
willingness to avail their products. KKT is more focus in business to government and business to
business, also called B to B or B2B, a type of transaction that exists between businesses, such as
one involving a manufacturer and wholesaler, or a wholesaler and a retailer.
KKT also do business to consumer transaction, its secondary target market are women
ages 24-45 years old, who are basic salary earner or in middle class of our society that wants to
help or want a unique feature when buying their product and has the capacity and willingness to
purchase the offered products of KKT.
4.1.1 Market Growth

TAGUMPAY ( KKT) 14
4.2 Marketing Mix (4P’s)
4.2.0 Product
Product
Product Description: Product Price: Sample Product
Name:
Dimension (LxWxH) Retail Price: Php.
15.8"x10.5"x3.5" A big 230.00
a. Valerie basket with handle Wholesale Price:
perfect as a fruit Php. 200.00 (Min.of
container or food tray. 50 pcs)

b. Wilma
Dimension (LxWxH)
Retail Price: Php.
12.2"x7"x3.3"
160.00
Rectangular shaped
Wholesale Price:
basket with handle
Php 140.00 (Min.of
perfect as a fruit
50pcs)
container or food tray.
TAGUMPAY ( KKT) 15
Dimension (LxWxH) Retail Price: Php.
12"x9.2"x3.4" Rounded 180.00
c. Xyrene shaped basket perfect Wholesale Price:
for fruit container or Php. 150.00
food tray. (Min.of 50 pcs)
Dimension (LxWxH)
10.25"x5.4"x6.25"
Rectangular shaped Retail Price: Php.
deep basket with 150.00
d. Ysabel moving handle Wholesale Price:
perfect as a food 130.00
container or fancy (Min.of 50 pcs)
enough to use as a
handbag.
Dimension (LxWxH)
12"x12"x3" Square
Retail Price: Php.
basket or tray that
200.00
has a native look
e. Zara Wholesale Price: Php
perfect as a food
180.00
container that would
(Min.of 50 pcs)
surely match in all
styles of tables.
TAGUMPAY ( KKT) 16
Bags:
Product Product
Product Price Sample Product
Name Description

Dimension:
(LxWxH) 9.5”x
5.4”x 10.5” (height
with handle)15”
f. Lizette
Hand carry bag that
is classy to be used
in market or in style.
Dimension:
(LxWxH) 13”x
5.2”x 8.5” (height
with handle)13.4”
Medium sized bag –
g. Marielle
with a wider
compartment,
perfect for someone
who’s always on the
go.

Dimension:
(LxWxH) 8.5”x
4.3”x 6.5” (height
with handle)10.5”
h. Noemi The smallest and
cutest among the
bags, fits perfect for
the movers with
small items.
TAGUMPAY ( KKT) 17

Dimension:
(LxWxH) 9.8”x
5.8”x 11” (height
with handle)15”
i. Olive Market-bag look
(bayong) which is
beyond any style and
is more durable than
the traditional type.
4.2.1 Future Product
KKT is planning to produce more product in the future. They are currently researching in
the developing products that can be useful to people. There are three products they want to
develop using water hyacinth as their main ingredients and these are organic fertilizer, feeds, and
slippers. As for these products, they are thinking of producing it to make use of the waterlilies
that other may think of as a pest, also they want to maximize the resources they have and to
maximize also their revenue by adding some useful product.
4.3 Pricing Strategy
Penetration pricing refers to a marketing strategy used by businesses to attract customers
to a new product or service. Penetration pricing is the practice of offering a low price for a new
product or service during its initial offering in order to lure customers away from competitors.
Because KKT is an emerging business and the owner is still learning about the different aspect of
business management, they are still formulating their pricing strategy of their own.
As a junior consultant we would like to recommend a premium pricing strategy in KKT”s
products. Premium pricing strategy establishes a price higher than the competitors. It's a strategy
that can be effectively used when there is something unique about the product or when the
TAGUMPAY ( KKT) 18
product is first to market and the business has a distinct competitive advantage. KKT’s unique
product gives a justifiable reason why we would like to recommend a premium pricing this is to
help KKT maximize revenue for the next few years.
4.4 Distribution Patterns
While currently brand names carry more weight in the marketplace, because of the firm’s
unique marketing approach, direct selling using Local Government Unit (Go Negosyo Center),
SM, Robinsons and PFIF. They can build awareness to this establishments with the help of DTI
Pampanga.
The following flow chart illustrate the distribution patterns of KKT.
Malls, Retail Stores,

Supplier KKT WaterLily Small Businesses,
and Consumers.
4.5 Promotion Strategy
The ultimate goal is to gain enough visibility to leverage the product into other
distribution sites within the region, then to move on to other geographical regions as inquiries
and distribution requests come in. KKT has current contacts in LGU specifically Go Negosyo
TAGUMPAY ( KKT) 19
Center of CSFP, other malls near the area like Robinsons and SM and Pampanga Furniture
Industries Foundation (PFIF).
KKT had their exhibit last April 2016 and that's the only chance they were able to
showcase their unique products and they were able to sell at the same time in their past products
such as coin savers, vases and weaved bags, but KKT is currently working in attending seminar
that will assist the firm in the current exposure. KKT also improve their awareness in social
media, they created a Facebook account as their first step in introducing their products.
As a junior consultant, we would like to recommend to KKT to increase its product
awareness in other social media sites, like creating an official website or Instagram account. We
would like also to recommend, to attend trade fairs and bazaars to malls and other events and at
the same time give fliers or brochures enumerating the unique product features.
4.6 Competitive Comparison
To differentiate themselves from all of the others, KKT's stress the unique way of doing
their products, and to make them more competitive especially in Manila, all products are
affiliated through exports. KKT can assure the other businesses affiliated with them that their
products are made of the finest materials and KKT stress on helping the mother earth and helping
their kabarangay to gain income with every purchase of their products.
4.6.0 Competition and Buying patterns
The Water lily industry is fast growing in the Philippines, although it might not yet exist
in a dynamic and competitive environment. Most companies that venture in the water lily
industry started festivals in their place that ensures profit growth yearly. The KKT company just
started so it must need something that could fire it up so its profit could grow.
TAGUMPAY ( KKT) 20
4.7 Strategy and Implementation Summary
KKT Culture's marketing strategy will be focused at establishing the organization that
has the capacity and willingness to avail their products, getting more opportunities to be invited
in the popular exhibits to be discovered more by other customers especially the foreigners who
loves to buy a Philippine made products come. Establishing relationship based with business
buyers is of a paramount importance since its more complex and longer buying process because
their aim is to turn their prospects into buying customers.
4.7.0 Sales Strategy
KKT has used business-to-business to have their product promoted through their
distributors. Junior consultants suggest that KKT should establish a system for continuous
improvement in their production system so that they could provide more supplies of their
products and expand their distribution channel, and on the Business-to-consumer setting we
suggest that they can have an online store in where they could promote their products to
customers and transact with them online.
4.7.1 Sales Forecast
Junior Consultants forecasted the KKT’s sales to grow for the next 3 years base on the
company’s production capacity. It is possible for the values to increase greatly if KKT focuses
on production and employee hiring in the future.
Sales Forecast in Pesos

TAGUMPAY ( KKT) 21
Year 2018 (4,224 units) 2019 (4,886 units) 2020 (5,399 units)
Total Sales 618,720 php 714,890 php 789,230 php
4.7.2 Sales Program
KKT is currently looking for distributors to assist them with the marketing and
distribution of their products. Again, the hiring of a distributor and a modest performance
increase on their products through this channel is the constant care and satisfying the buyers for
each of the organizations. Sales calls on a regular basis, along with samples of new product, will
keep the doors open to them.
4.7.3 Strategic Alliances
KKT has a business to business function, it means its target market are established
organizations. KKT’s strategic alliances namely, Local Government Unit (LGU) GO Negosyo
Center of City of San Fernando Pampanga, Robinsons Mall, SM Megamall, and Philippine
Furniture Industries Foundation (PFIF). With this organization, KKT has a chance of being a
world class supplier of weave baskets, bags and trays made from water lilies.
V. Production
5.0 Production plan
Standard operating procedure is a set of step-by-step instructions compiled by an
organization to help workers carry out routine operations. Sops aim to achieve efficiency, quality
TAGUMPAY ( KKT) 22
output and uniformity of performance, while reducing miscommunication and failure to comply
with industry regulations. KKT provided a printed sop guide.
1. Harvesting
 Biggest and strongest lilies are found in the river of Pandaras, one (1)
meter and one half (1/2) or one to three-year-old lilies are the most durable
with darkest green color.
 The stalks are then cut off from its roots and its leaves.
2. Drying
 Harvested lilies are scattered on the ground without stocking it above the
other.
 Let it dry under the heat of the sun for three (3) consecutive days. (leaving
it on the ground even on night time)
 After three (3) days, the lilies are then bundle by fifty or one hundred.
 Hang all the bundled lilies in a cool dry place with roof to prevent it from
molds and to make it leatherier.
 After four (4) days, it can be used for handcrafts.
3. Flattening and Cutting
 Each stalk of dried waterlily is divided into half
 Then flattened using their equipment.
 After dividing into two and flattening the waterlilies, they were cut
depending to the products they were producing.

TAGUMPAY ( KKT) 23
The process layout is shown below. The process is first harvesting the water lilies then
dry them under the sun for three days after that you need to hang them indoor for four days then
wipe them using a damp cloth then flatten them using the equipment after that you can now cut
them depends on kind of product, after you can now burnish it using a lignin1 and lignin 2, this
lignin are especial burnish that can make the material (water lilies) be stored for a long time and
not easily torn or damage. After all of that process you can now have a finish product.
Production Flow:
TAGUMPAY ( KKT) 24
1. Harvesting
2. Drying under the

sun for 3 days
3. Hanging indoor
for 4 days
4. Dividing the lilies

in to two
5. Flattening
6. Cutting
7. Weaving
TAGUMPAY ( KKT) 25
5.1.1 Sourcing of Raw Materials
Waterlilies are harvested from Pandaras River. Iron frame is molded by the lantern
makers of City of San Fernando. While other materials like, rugby and varnish are bought in
the local market.
5.2.1 Facility Size and Location
Since KKT is a home-based program, the facility size is not provided. The location of the
display center which is also the home of the President and Production Manager of KKT is in
Purok 5, Barangay San Felipe City of San Fernando Pampanga.
The firm’s plant layout is shown in Figure 4, the firm’s office is also the home of Mr. and
Mrs. Canlas. This is where we interviewed them, as you can see the equipments used for drying
the water lilies is in their front yard and the equipment used in flattening the water lilies is stored
in the kitchen of the house as well as the lignin 1 and lignin 2 use to varnish their products. The
front of their door step is where they hang the water lilies for four (4) days. The table shown
below is where the product is stored.
5.2.2 Production Capacity
The production capacity of KKT is 5 pieces of Valerie and Xyrene for a day and 2
pieces of Wilma, Zara and Ysabel per day. That means the 8 workers can finish 16 baskets per
days, then we multiply it to 5 working days to get the weekly capacity. For the bags workers
can finish 2 Olive and 4 Lizette per week we multiply it to 4 to get the monthly capacity. For
the other products namely, Marielle and Noemi KKT did not provide us any data about their
product capacity.
TAGUMPAY ( KKT) 26
Weekly Monthly 2018 2019 2020

Basket:
Valerie 25 100 1,200 1,380 1,518
Xyrene 25 100 1,200 1,380 1,518
Wilma 10 40 480 552 607.20
Zara 10 40 480 552 607.20
Ysabel 10 40 480 552 607.20
Weekly Monthly 2018 2019 2020

Bags:
Big Bag 2 8 96 115.20 132.48
Lizette 4 16 192 240 276
Small bag 2 8 96 115.20 132.48
5.4 Milestones (Activities)
Schedule:
July 19-21, 2017 - Industry Clustering Development Program in Baguio with partnership of Go
Negosyo Center and Department of Trade and Industry (DTI).
Aug 2017 – Provide training every Saturday of 35 barangays in City of San Fernando.
Upcoming Events:
 SMEROving Academy Training
 DTI Mentor Me Program
VI. Finance
6.1 Financial Plan

TAGUMPAY ( KKT) 27
We want financial growth for the KKT company mainly through its cash flow and equity.
We have recognized that KKT will grow slowly at first then may have fast financial growth in
the coming decades.
We need to develop a permanent system that would help in the operations and finances of
the KKT company. It would attract investors that are capable to help in the financial growth of
KKT.
6.2 Important Assumptions
The key underlying assumptions are:
 KKT assumes that their products will be sold by this year.
 Production volume is assumed to be balanced each year so that they won’t have any losses.
 They will have sales by upcoming years.
 It is assumed that not all receivables are collectible.
 The company will no longer have any problems in recruiting workers.
6.3 Break Even Analysis

TAGUMPAY ( KKT) 28
The following table reflect the KKT’s break even estimates. These are based on the 1,000
baskets orders that were made. Since KKT is an emerging business, an expected profit will only
attain when the sales exceed 18,426.29php and 15.36 units
Sales 120,000.00 php
Cost:
Rent 1,000.00
Electricity 2,000.00
Water 700.00
Dried Lilies 15,000.00
Flattening 15,000.00
Varnish 6,800.00
Rugby 2,500.00
Gasoline, Maintenance & Labor 56,600.00

Total Cost 99,600.00 php
Contribution Margin per Unit 24,100

Contribution Margin Ratio 20.08%
Break-even point in Sales 18,426.29 php
Break-even point per unit 15.36
6.4 Projected Profit and Loss Statement
Projected income statement was forecasted and based on the production capacity of
KKT’s worker starting year of 2018-2020. Sales of KKT have been forecasted in year 2018 with
a total of 4,224 units with a sale of Php618,720, year 2019 with a total of 4,886 units a sales of
TAGUMPAY ( KKT) 29
Php714,890 and in 2020 with a total of 5,399 units and a sales of Php789,230. For a total of
14,509 units produced from year 2018-2020. Since KKT is just a starting company its net
income of 2018 is a total of Php734.40, but in the following year it would increase and the total
net income of 2019 is Php8,352 and the net income of the year 2020 is Php14,320.60. Total net
income of KKT for the period of 3years is Php23,407.
Kabuhayan ng mga Kabarangay tungo sa Tagumpay

Projected Income Statement
For the year 2018 - 2020
2018 2019 2020
Sales 618,720.00 714,890.00 789,230.00
Cost of Goods Sold 573,585.60 662,137.10 730,509.40
Gross Profit 45,134.40 php 52,752.90 php 58,720.60 php
Expense:
Rent Expense 12,000.00 12,000.00 12,000.00
Utility Expense 32,400.00 32,400.00 32,400.00
Total Expense 44,400.00 php 44,400.00 php 44,400.00 php
Net Income 734.40 php 8,352.00 php 14,320.60 php
6.5 Projected Cash Flow Statement
The Data shown in the table was based on the projected income statement’s net income.
At the year 2018 the beginning cash would value to zero having Php734.40 at the end of the year
cash balance. Year 2019 has a beginning cash of Php734.40 and a net increase of Php8,352
which results to the end of the year cash balance of Php9,086.40. Year 2020 with a beginning
cash of Php9,086.40 and a net increase of Php14,320.60 the end of the year cash balance is
Php23,407.
TAGUMPAY ( KKT) 30

Statement of Cash Flow
Cash Flow from Operating Activities 2018 2019 2020

Net Income 734.40 8,352.00 14,320.60
Net Cash provided by Operating Activities 734.40 php 8,352.00 php 14,320.60 php
Net Increase on Cash 734.40 8,352.00 14,320.60

Cash at the beginning of the year 0 734.40 9,086.40
Cash at the end of the year 734.40 php 9,086.40 php 23,407.00 php
6.6 Projected Balance Sheet
KKT’s assets of 2018 would only have a cash of Php734.40 because of the low net
income of the year 2018, assets of 2019 would receive a cash of Php9,086.40 and also an
increase of other assets on equipment and receivables for increased productions, and assets of
2020 would receive a cash of Php23,407 and also and increase of other assets on equipment and
receivables to increase its production capacity.

Balance Sheet
Current Asset: 2018 2019 2020
TAGUMPAY ( KKT) 31
Cash 734.40 9,086.40 23,407.00

Accounts Receivable 5,000.00 10,000.00 15,000.00
Equipment 19,500.00 19,500.00 19,500.00
Total Asset 25,234.40 php 38,586.40 php 57,907.00 php
Current Liabilities:
Accounts Payable 24,500.00 20,000.00 25,000.00
Total Liabilities 24,500.00 php 20,000.00 php 25,000.00 php
Owner’s Equity 734.40 php 18,586.40 php 32,907.00 php

Total Liabilities & Owner’s Equity 25,234.40 php 38,586.40 php 57,907.00 php
VII. Human Resource
7.1 Production Process Task
President- is the one who is making sure that all of the workers are complying their
assigned task properly. She's also responsible to attend the meetings/seminars from different
places that is related to their business.
Production- is responsible in the making/construction of the bags, baskets and trays. He
assists in the packaging and also responsible in the marketing and promotion of the product.
Mentor- is the one who teaches the residents/workers by sharing her gained knowledge
about on how to do these handcrafts products. These step by step instructions are located in the
Production Plan which it is under in the SOP Guide.
Treasurer- is the watchdog role over all aspects when it comes to their financials matter.
7.2 Organizational Structure

TAGUMPAY ( KKT) 32
Organizational structure provides guidance to all employees by laying out the official
reporting relationships that govern the workflow of the company. KKT provided a printed
document of their Organization chart. KKT has a pure line organization it consists of the
President, Treasurer, Mentor, Production Manager and the 10 workers. The chart shows the
hierarchy and the position of the people inside the organization. The structure shows the works
of the people in the organization. It shows that the president is the person responsible in all the
aspects of the organization.
Figure 1- Structure
Joselyn Canlas
President
Ricton Canlas
Ignacia Manaloto
Production
Treasure/Finance
Manager
Leny Seregeni
08 Workers Mentor
(Volunteer)
7.3 Management Team and Gaps

TAGUMPAY ( KKT) 33
The President who is currently the manager of KKT has a small company which only
requires a simple organizational structure. Mentor which is incharge of the training of workers in
producing the products and also monitoring finances. Treasurer who is the holder of the
company’s budget also monitors the finances inorder to know on what budget that he should
release for the workers. Production Manager monitors the productivity of the workers and also
does quality check on each product made. Workers are recruited by the company and paid with
each product they finish.
7.4 Personnel Plan
Personnel planning are the first step in the recruiting and selection process. It is the
process of determining an organization's human resource needs. By such planning an
organization ensures that it has right number and kinds of people. Since KKT is a livelihood
program, they are not very particular with their laborer. Anyone can join the program as long as
they are fit in their criteria that an applicant should be any of the following 1) Widowed wife or
Mother 2) Out of School youth or Jobless Youth 3) Person with disability (PWD).
VIII. KKT’s SWOT Analysis
Organizational and Management Area
STRENGHTS WEAKNESSES
 The spouse is very determined in their  The workers are not committed.
mission and vision  The workers are not monitored

TAGUMPAY ( KKT) 34
 They are eager to learn when properly since workers works in their
attending seminars and trainings home.
 The KKT was the one who trained  No clear job description, their work is
their workers. based upon the need of situation.
 The organizational structure lacked
manpower, so the spouse handles
multiple roles and can’t focus in their
area.
 The spouse doesn’t have enough
business management background.
OPPORTUNITY THREAT
 Can assign other people to monitor 
their workers.
 Can hire additional people to work in
other areas of the business.
 Develop a schedule on what should be
done in a given period of time.
IX. Problems Identified
1. The firm needs consistency
2. The firm needs to hire additional people
3. Company needs to improve its promotional strategies

TAGUMPAY ( KKT) 35
4. The company needs to improve its financials, in terms of bookkeeping
X. Recommendation
1. The company needs to decide of the products that they were going to market. We
observed that KKT don’t have consistency on what products they are going to sell, in a
span of 1 year we observed that they change their product offering 3 times. So as a junior
consultant we would like to recommend, to have a consistency in their product. Market
their current product now for 3 years then they can add new product line after the said
year or if the organization is stable enough to have a new product line.
2. The firm needs to hire additional people for its organization structure and needs to recruit
additional worker.
3. Firm should have website or other social media accounts to help in product awareness.
4. The firms need to hire a bookkeeper or learn how to bookkeep to help them in financial
matters, especially now that the firm acquired losses.
APPENDICES
Figure A
Name of Firm Kabuhayan ng mgaKabarangaytungo sa Tagumpay (KKT)

Address Barangay San Felipe, City of San Fernando, Pampanga
Contact Person Joselyn B. Canlas
TAGUMPAY ( KKT) 36
Contact No. 0975-8515-687

E-Mail Address kkt@yahoo.com
Year Established January 2015
Type of Organization Single Proprietorship Partnership Cooperative Corporation
Profit Non-Profit
(please check Micro Small  Medium
appropriate box in
each row)
Office Registration Date of registration
Number
 DTI
SEC
CDA
Registration Others (please
specify)
Business Activities Food Furniture
(please check Processing
appropriate box)
Metals and Agriculture/
Engineering Marine/
Aquaculture
 Gifts, decors Others: (please specify)
and handcrafts
Products / Services  Weave Bags
 Weave Baskets
I. RELEVANT PHOTOS TAKEN DURING ASSESSMENT AND DIAGNOSIS
FOCUSING ON AREAS OF INTERVANTION (WITH CAPTIONS)

TAGUMPAY ( KKT) 37
Figure C.1
“This is some of their sample products, coin saver and vase except for the flower, their
just about to study how to do it.”
Figure C.2
“When we arrived at DTI office and talked to Mr. Emil with the other 2 groups about our
assigned firm”
Figure C.3
TAGUMPAY ( KKT) 38
“This photo is taken when we first arrived at KKT, and were surprised that there is
another group that came first.”
Figure C.4
“This is one of their equipment used to dry water lilies as you can see it has cover to
protect the water lilies from a possible rain drops.”
Figure C.5
TAGUMPAY ( KKT) 39
“This a photo taken while the three leaders of the group conduct the interview with Mr.
and Mrs. Canlas, Production manager and President of KKT.”
Figure C.6
“This is a photo of their other sample products namely bag, coin saver and vase.”
Figure C.7
TAGUMPAY ( KKT) 40
“This photo is taken when Mrs. Canlas let us see the dried and flatten waterlily.”
Figure C.8
“This photo is taken when Mr. Canlas, demo how to cut the waterlily in the middle before
flattening the water lily.”
Figure C.9
TAGUMPAY ( KKT) 41
“This is the equipment they use to flatten water lilies, as you can see the flattener is
manual and according to them they current have one of this equipment donated by the DTI.”
Figure C.1.2
“They let us take a photo of their project implementation program and costing expenses
for water lily harvest.”

TAGUMPAY ( KKT) 42
“This is an example of the cutter of KKT, to standardized the size of the water lily used
in weaving the product”
“This are the future products of KKT.”

TAGUMPAY ( KKT) 43
Reference:
https://trackmaven.com/marketing-dictionary/market-segmentation/
http://www.yourdictionary.com/demographics
http://www.getbrandwise.com/branding-blog/bid/18622/What-are-marketing-psychographics
http://smallbusiness.chron.com/different-types-pricing-strategy-4688.html

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BUSINESS PROPOSAL FOR KABUHAYAN NG MGA KABARANGAY TUNGO SA

ORGANIZATIONAL DIAGNOSIS AND ANALYSIS OF NEEDS AND

RECOMMENDATION INTERVENTION OF KKT (Kabuhayan ng

mga Kabarangay tungo sa Tagumpay)

A Business Plan presented to the

Kabuhayan ng mga Kabarangay tungo sa Tagumpay (KKT)

School of Business and Accountancy

Santos, Lawrence Karl

Cruz, Julian Mari

Adviser: Mrs. Amelynn Corpuz

of each one of us.

This Business Proposal for KKT (Kabuhayan Ng Mga Kabarangay Tungo Sa

Business Research Adviser

Approved by the Committee on Oral Examination with a grade of ______on ________

Chairman/ KKT Owner

JUSTICIA C. DALIDA MBA J. FRESNIDO

iii. Vision Statement

II. Company Overview……………………………………………………………..7

ii. Past Performance

III. Industry Analysis………………………………………………………………..8

ii. Industry Participants

IV. Market Analysis…………………………………………………………………9

2. Target Market Segment

ii. Marketing Mix (4P’s)

iii. Pricing Strategy Distribution Patterns

iv. Promotion Strategy

vi. Competition and Buying Patterns

vii. Strategy and Implementation Summary

ii. Sourcing of Raw Materials

iii. Facility Size and Location

iv. Production Capacity

ii. Important Assumptions

iii. Break Even Analysis

iv. Projected Profit and Loss Statement

v. Projected Cash Flow Statement

vi. Projected Balance Sheet

VII. Human Resource…………………………………………………………….23

i. Production Process Task

ii. Organizational Structure

iii. Management Team and Gaps

iv. Personnel Plan

VIII. SWOT Analysis ……………………………………………………………….2

IX. Problem Identified………………………………………………………….. 26

Kabuhayan ng mga Kabarangay tungo sa Tagumpay (KKT) is an organization under the

An observation was conducted by a group of junior consultants in the course of their

2) To maintain the highest form of quality in each product manufactured to be more

1.2 Vision Statement

I.3 Mission Statement

1.3 Keys to Success

competitive when it comes in quality and value.

effective at the same time.

water lilies and varied in sizes and designs.

II. Company Overview

2.0 Company Overview

Kabuhayan ng mga Kabarangay tungo sa Tagumpay (KKT) is a water hyacinth livelihood

2.1 Past Performance

III. Industry Analysis

3.0 Industry Analysis

3.1 Industry Participation

IV. Market Analysis

4.0 Market Analysis

4.1 Market Segmentation

Demographics is defined as statistical data about the characteristics of a population, such as

Approved by the Committee on Oral Examination with a grade of on __