Section 1

The Executive Summary

1.1 Company Profile

The Paper Charcoal Enterprise is a company that is made to supply and

manufacture paper charcoal in the Philippines. It has been established to offer high

quality and eco-friendly paper charcoal as alternative to the usual charcoal that the

community uses. Paper Charcoal Enterprise is located at Corner Tengco Zamora

Street, Pasay City.

The company can be reached through their building in Pasay City or through

their official e-mail address, papercharcoalenterprise@gmail.com. They can also be

called through (02) 402 7667.

(Company Logo)

1.2 Nature of Product and Services Being Offered

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 The word “perecoal” comes from the words paper, eco and charcoal. The

company came up with the idea of product, perecoal because there is an issue in the

world today concerning about how a concerning number of trees being cut down on a

daily basis for the use of paper and other materials that will not just even be recycled

and just turn into waste. The company aims to produce charcoals made from different

variety of used papers. The company offers an eco-friendly paper charcoal that will

benefit not just the company and the users, but everybody in this world and especially

nature.

1.3 Make-up & Background of the Management Team

Micaella Eunice Llantos, a Grade 12 HUMSS student in Manila Tytana Colleges,

serves as the president of the Paper Charcoal Enterprise. Her experiences of

leadership will help her manage and perform her duties as the president of the

company. It will also help her lead her fellow co-owner of Paper Charcoal Enterprise to

the success of their company.

Rocelle Alcaparaz and Anna Patricia Campit, also Grade 12 HUMSS students in

Manila Tytana Colleges, will be the Chief Operating Officer and Chief Financing Officer.

Their experiences as a student leader that acquired them to have logical, management,

and critical thinking skills will help them to manage their company thoroughly.

Krizzia Mae Saballegue, Nicole Paras, Trisha Aryan Jaminal, Camille Alyssa

Adolfo, and Gesnia Laurize Centeno, all Grade 12 HUMSS students in Manila Tytana

Colleges, who carries the characteristics in line with the company and has the

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capabilities to manage the departments of Accounting and Finance, Human Resource,

Production, and Marketing and Operations.

On the supervisors, Rachelle Mejia, Gyro Matthew Guevarra, Monella Janique

Ramos, and Kaila Vince Nellas have the capabilities to supervise and hold the

responsibilities to perform the decisions made by the managers.

As a group, all are equally capable to manage and make rational decisions for

the success of their company, Paper Charcoal Enterprise. They will be responsible

enough to handle their roles and make sure that they will do actions that will lead their

company to the success that they want to achieve.

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 Section 2

Business Description

2.1 Mission and Vision

The mission of Paper Charcoal Enterprises is to;

Provide holistic experiences to the individual who are part of the institution.

Ensures that the Reuse, Reduce, Recycle or 3Rs will remain alive in the market.

Give consumers a quality and yet affordable product.

The vision of Paper Charcoal Enterprise is:

Paper Charcoal Enterprise is a premiere business institution that provides quality

and eco-friendly product which ensures protection of the environment through life

process.

2.2 Firm Description

The company is a new enterprise that will supply paper charcoal to public

markets and its branches nationwide. It aims to reduce waste, conserve nature by

avoiding the use of woods in charcoal, and serve its clients a fast to ignite long lasting

charcoal. The company will be a partnership to be owned by selected delegates from

HUMSS 12 - Baltazar.

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 The company targets public markets nationwide including urban, and mostly in

rural areas where it is mostly used. It seeks to sign contracts with other related

enterprises to expand its capabilities in serving its clients.

2.3 Proposed Entry Strategy/Timeline of Events

The company formulated a Gantt chart that shows the strategic plans of the

company in setting up a business and product.

September October
Week Wee Week Wee Week Wee Week Week
Task Description
1 k2 3 k4 1 k2 3 4
Meeting about
1 formulating a new
product
2 Finalizing the product
3 Gathering resources
4 Production making
5 Initial release of product
Social Media
6
announcement
Release of product to the
7
public

2.4 Description of Product

Paper charcoals are made by soaking waste paper overnight and forming it into

fist size balls which are left to dry in the sun. Paper charcoal serves as a good

alternative fuel for cooking. Encouraging the use of paper charcoal as cooking

alternative is a good practice. Waste papers that would otherwise end up in landfills are

given new use as cooking medium. This will also help reduce dependence on forest

wood for cooking. Since this is made out of used paper materials, this is inexpensive

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and can be done by every household anytime. It does not produce soot like ordinary

charcoals.

A few pieces of these paper charcoals can be used for cooking and is very ideal

to use during rainy season.

The common chemical properties of wood charcoal are mostly pure carbon,

made by cooking wood with low oxygen. However, paper charcoal, is not made up of

carbon, for it underwent rounds of soaking, and molded into cubes, circles, or tubes.

And was dried under sunlight. With this, it is assured that the product is environment

friendly.

Paper charcoal is created using used paper regardless of its gsm or (grams per

square meter) and colors.

Papers ranging from various thickness and textures undergo process such as

soaking, being meshed and naturally drying it and is then molded into intact circular

shapes.

Each pack or sack of paper charcoal weighing from 1/2kg to 1 kg for packs and

30 - 50kgs for sacks is composed of either of the three options:

(a) Mixed paper: composed of papers with thin gsm and various textures mixed

with papers with thick gsm.

(Example used folders and cardboards mixed with bond papers and yellowpads

and colored papers)

(b) Pure paper charcoal composed of paper with thick gsm

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 (Example used cardboards, illustration boards, and paper expandable

envelopes)

(c) Pure paper charcoal composed of paper with thin gsm

(Pad papers and art papers and used papers from offices)

The reason why there are varieties (to be exact 3 choices to choose from) is

because there are specific demands in using the paper charcoal. If it will be used for

grilling of course paper charcoal that is longer lasting when burning will be needed. But

for simple activities that doesn't require much flames, the ones composed of pure paper

with thin gsm will be of best used.

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 Section 3

Market Analysis

3.1 Industry Analysis

3.1.1 Type of Industry

The type of Industry of the company is Coal Industry. The Philippines consumes

more coal than it can produce. In the year 2005, coals account most of the country's

power generation at 27%. Twenty percent of the country's coal supply is used by the

cement industry that was also recorded last 2005. On the other hand, 75% of the

country's coal supplies are composed of imported coal.

3.1.2 Characteristics of the Industry

Worldwide, coal is a sought-after energy source. It has the largest reserve and is

often the cheapest of the fuel options. Now that clean coal technologies are available,

the demand for coal has remained steady despite the current stringent standard on

environmental concerns. The Philippines is largely a coal consuming country with coal

having the highest contribution to the power generation mix at 44.5% recorded last

2015. But, local demand for coal is not limited to power generation. Also in the year

2015, the cement industry utilized 15.22% of the country’s coal supply, 5% went to

other industries such as alcohol, sinter, rubber boots, paper and chemical

manufacturing, fertilizer production and smelting processes.

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 From a historical yearly average of 1.5 million MT, local coal production began

increasing at a steady rate since 2002. Within a span of 13 years, coal production has

more than quintupled to an astounding 8.17 million MT in 2015, with a production high

of 8.4 million MT in 2014. (Department of Energy, 2018)

3.2 Industry Competition

3.2.1 Dominant players and new entrance in the industry

Companies like MAPECON Green Charcoal Philippines Inc. Who has a

nationwide product deliveries and services, Intercoco Philippines Manufacturing

Corporation who are known for having wide production, Phil Wood Charcoal who has a

location that can easily access orders from different provinces, Macapagal Langco who

are known for their quality product, Coco Technologies Corporation who has a wide

range of Coconut tree land which is use for their production, Chong Yuen Phils Trading

co. inc. Who are known for having different trading partners, and Arjael Coco Charcoal

Factory who has multiple factory nationwide, play a big hindrance for the product we

wish to put in the market. Since these companies are big and established already,

newcomers like our business plan for eco-friendly paper charcoal will find it difficult to

compete with them. Their machines, workers and distribution capability are the factors

that they had the advantage compare to small enterprises.

MAPECON Green Charcoal Philippines Inc. is the market leader among the

other macro companies. Jun Catan founded the institution in the year 1961. MGCP

focuses on the development, manufacture and sales of production for organic and

sustainable energy, cooking and agriculture. Their vision of being the leading eco-

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solution company and to be a company who recognizes Jesus Christ as part of their

institution makes them united in achieving the goal. The missions of the company are to

influence the country and other nearby countries to utilize green energy, to protect the

environment, to continue innovation, and to uplift the Filipino people's lives. Throughout

its history, MGCP experienced ups and down which makes the MAPECON Green

Charcoal Philippines to be the top company in terms of green energy.

However, small companies like Cebu_Unitrade who was popular in Cebu area, S

and H Charcoal who gained more customers because of their good services, Chad

Lourence Trading, Citiwalk General Merchandise, JEB & D General Merchandise who

was rated 5 stars by their customers, Caralux Enterprises and ASL Enterprise will also

bring tough competition for the eco-charcoal. Small business are more likely to connect

with consumers because of easy access and connection. Thus, small companies are

treated as a possible competitor to our proposed product.

Big and small companies that was stated above uses coconut or seashell for

their charcoal product. Our proposed product which is made up of paper is new to the

market. Against our competitors, we can offer a more eco-friendly and quality product to

the consumers. In addition to that, our paper charcoal is more affordable compared to

the one which was already available in the market.

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3.3 SWOT Analysis

3.3.1 Strengths

The company as a whole is capable of delivering the best quality of paper

charcoal. The employees are well equipped in handling the business with the majority of

them having good and fitting backgrounds to their roles in the company. The company

focuses as well on the environmental effects on their product rather than simply making

a profit.

3.3.2 Weaknesses

The company is still new and has yet to establish its place it the business thus it

is unrecognized to the general public. There is a lack of budget as well which could be

troublesome considering that the business is not reputable it has been found to be

difficult to find people who will sponsor and fund the product.

3.3.3 Opportunities

The company is open to any opportunity that will be given to them however it

would rather prefer business partnerships with company's who share the similar vision

of saving and caring for the environment. This may also help employees learn and

venture more into the business settings.

3.3.4 Threats

There is the threat of the company in terms of competition of similar products and

services from another company making the name of the company not so much

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reputable. The consumers of the company's product may also scarce making it difficult

for the company to be more known.

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 Section 4

Marketing Plan (The Marketing Mix)

4.1 The Product

4.1.1 Image of the Product

Figure 1.1 Figure 1.2

4.1.2 Product Classification

Paper charcoal is an industrial product. It makes use of paper and the process of

papermaking uses raw materials including water, energy, chemicals, and wood chips. It

is also classified as production goods, which are used in the production of a final

consumer good. For instance, vendors whose business involves grilling need paper

charcoal in order to operate.

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 4.1.3 Levels of the Product

To further explore the nature of a product, let’s consider it as three different

products:

4.1.3.1 Core Product

The paper charcoal is beneficial as a product because it is environment-friendly

and it is not time consuming. We are using recycled materials in this project.

4.1.3.2 Actual Product

The paper charcoal, again, is made up of recycled materials. And will use only

natural sunlight when drying up the paper charcoal itself.

4.1.3.3 Augmented Product

Paper charcoal, as a product is very efficient because of the materials used and

its long term effects. Papers that are supposedly to be disposed can be given another

purpose by making use of it as charcoal. Our charcoal product comes with delivery

service and grill. Customer can contact our company’s customer service with their

requests, issues and inquiries. The company also have their customer service through

their website, social media, contact number, and e-mail address.

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4.2 Price

4.2.1 Pricing Scheme

Using the 3r's that aims to reuse, reduce and recycle, the papers that will be

using will be bought through junkshops per kilo which costs 2 pesos per kilo only. Along

with these are the materials will be using to make the product. Along with the

competitors, paper charcoal will cost for only 10 pesos per plastic. Which aims to

revision charcoal into more eco-friendly way.

MATERIALS PRICE

Water Php 90 per minimum cubic meter

Paper Php 2 per kilo mixed paper

Yeast Php 110

TOTAL= Php 202

COMPUTATION:

Total
(Competitor s' price−Constant)

Php 202 Php 202

= =Php50.5
Php 5−1 4

 5 Batch

Php 50.5
=Php 10.1
5

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 4.2.2 Pricing Considerations and Strategies

There will be a variation regarding our production of paper charcoal. That is why

optional pricing is the best pricing strategy for it. Optional pricing is a method of

determining product costs whereby a business sets a low cost for its most basic product

and then profits from selling more costly accessories. Optional product pricing is

especially notable in the marketing of cell phones and computer printers that often have

a very low initial entry price, while the cost of accessories like AC adaptors and printer

ink cartridges is substantial.

4.3 Place

4.1.3.1 Road/Map to the Location

Figure 1.3

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 4.3.2 Actual Picture of the Location

Figure 1.4

4.3.3 Distribution Channels

The company will sell through a dealer network where in the products are to be

delivered to dealers who will sell the products to the consumers in their area. At the

same time, will sell direct to the users where the customers may go directly to the

factory and buy the product. The primary purpose of building the factory at its location is

to have more convenience in delivering its products to the resellers in different locations

in the Philippines.

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4.4 Promotion

4.4.1 Image of the Promotional Means to be used

Figure 1.5

Figure 1.6

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 Figure 1.7

4.4.2 Promotion Description

 Flyers

It is distributed to anyone or posted in a public place. The information

about the business is indicated there. Including the product, company name,

address, telephone number, website, and Facebook page.

 Social Media Sites

This is where people can be updated about the new products or services,

sales, and promos that the company can offer.

 Company Website

The overall information about the company can be seen here. Such as

history of the company, updates about the sales or promos, and more frequently

asked questions.

4.5 People

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 People are vitally important in the marketing mix. People are needed in

producing the product.

4.5.1 Number of Employees in the Organization

The total number of employees will consist of not more than 20 employees. The

employees will be distributed to the different departments of the company.

4.5.2 Number of Managerial People in the Organization

The number of managerial people present in the organization of the company is

twelve (12) which will make significant decisions for the company. They will manage

and control the tasks given to them as well as the employees included in a department.

These twelve (12) managerial people are distributed to the four (4) departments of the

company: accounting and finance, human resource, production, and marketing and

operations.

4.5.3 Number of Departments in the Organization

There will be a total of four (4) departments in the organization. It will be the

accounting & finance department, human resource department, production department,

and marketing and operation department. Accounting & finance department will be

responsible for administering the budget of the organization; this department will also

keep track of the inflows and outflows of the money. Human resource department will

play a vital role in the organization. This department is responsible for recruiting, and

training the possible employees. On the other hand, people under the production

department are assigned for the whole production process of the product itself, from the

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raw materials up to the finish product. Lastly, the marketing and operations department.

People under this department will be responsible in strategizing on how to introduce the

product to the market; they are also responsible on how to improve the sales of the

product, and to satisfy the customers at the right price.

4.5.4 Number of Customers that the Operation Department can handle in every

transaction

The Operation Department will be divided into two: the retail and the delivery. In

the retail, the number of customers that will be accommodated by the employees will be

around 20 people per transaction. In the delivery of the products, if it will be delivered on

urban places, ten (10) to fifteen (15) rounds can be handled. For rural places of delivery

of products, three (3) to five (5) rounds can be accommodated.

4.6 Process

4.6.1 Picture of the processes used in the business

Figure 1.8 Figure 1.9 Figure 1.10

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2

Figure 1.13

4.6.2 Process Description

For each kilogram of paper, it will be soaked in a basin full of water for 48 hours

then drained and then meshed along with 3 1/2 cups of yeast and then molded into a

circular shape and then dried under the sun for another 36 hours.

4.7 Physical Evidence

4.7.1 Product Design

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 Figure 1.15
Figure 1.16

4.7.2 Service Design

Figure 1.17

Section 5

Operation Plan
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5.1 Facilities and Layout

Work Area

This area is where the employees do their tasks. This is where the executive

office, production office, customer services, marketing staff office cubicles, manager’s

office, file room, purchasing and accounting room, conference room, quality and

logistics control room, warehouse maintenance, audio visual room, and inspection area.

There are 6 workshop areas present in the building. The lounge/break room and kitchen

is also present.

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 Store

This part is the physical store of the company. This is where one to one

transactions take place where the customer buys the product/s directly from the

company.

Parking Area

This is where the employees and customers park their vehicles.

Load Area

This area is where the products are being loaded to the company’s trucks in

order to deliver them to the company’s resellers.

5.2 Production

Papers that will be used to produce goods for sale will be congregated from junk

shops. Scrap papers such as used bond papers, newspapers, cartons, cardboards and

the likes will be purchased at a very low price. These raw materials will be prepared a

week in advance, allowing the employees to form the paper charcoals by drying them

for a couple of days in the sun. There are different workshop areas located inside the

place of production. In Workshop Area No. 1, it is where the scrap papers will be

shredded and will then be transferred to Workshop Area No. 2 where they will be placed

in the washtub until they are thoroughly saturated with water and is mushy to the touch.

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 Formation of the mushy scrap papers into a ball form will be done in Workshop

Area No. 3. When all papers are already in ball form, they will be moved to Workshop

Area No. 4, which has a transparent glass roof to dry them in the sun for at least three

to four days or an estimated time of 36-48 hours, without getting rained on. Once they

are completely dry and brittle, they will be double-checked in Workshop Area No. 5 to

see if they are ready for use in the same manner as charcoal briquettes. All paper

charcoals that are verified as ready-to-use will now be prepared for checking and

packaging in Workshop Area No. 6 within the same day.

Approximately, there will be 50-100 sacks of paper charcoals produced daily and there

will be also retailed pack of charcoals that weighs either in kilo or in halves. The number

of production will always be in weights since the business are expected to have bulk

orders.

5.3 Quality Management Policies

Paper Charcoal Enterprise

Quality Management Policy

Paper Charcoal Enterprise was establishes last August 2018 to produce cheaper

and environment friendly paper made charcoal.

The quality of our product is important because we value our customer. We are

working hard to provide our customers products and services which meet their

expectation and even exceed it. Our company is committed to continuous improvement

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and has established a Quality Management System that will served as a guide in

maintaining and improving the quality of our product and services.

We have the following systems and procedures in place to support us in our aim

of total customer satisfaction and continuous improvement throughout our business:

Our Principle:

 Meet the needs of the customers.

 Hear customers’ feedback and concerns.

 To build trust by offering products that match customer’s preference and

expectation.

 Assures that the product is safe to use and high quality.

Our Commitment:

 Continually strive to improve the quality management system to ensure the

effectivity of our product and eliminate poor quality.

 Encourage the employees to participate and promote in making the quality

product.

 Monitor our progress, and identify gaps through the help of various feedbacks

and concerns from the customers.

Although the Managing Director has ultimate responsibility for Quality, all

employees have a responsibility within their own areas of work to help ensure the

Quality is embedded within the whole of the company.

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Signed: ____________________ (Chief Executive)

Date: ____________________

Section 6

Management Team

6.1 Organizational Structure

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 CHIEF EXECUTIVE
OFFICER (CEO)
Micaella Eunice Llantos

CHIEF FINANCING CHIEF OPERATING

OFFICER (CFO) OFFICER (COO)
Krizzia Mae Saballegue Rocelle Alcaparaz

ACCOUNTING MARKETING &

HUMAN PRODUCTION OPERATIONS
AND FINANCE
RESOURCE MANAGER MANAGER
MANAGER Camille Alyssa
MANAGER Trisha Aryan
Anna Patricia Adolfo
Nicole Paras Jaminal
Campit Gesnia Laurize
Centeno
SUPERVISOR
SUPERVISORS
Rachelle Mejia Gyro Matthew
Guevarra
Monella Janique
Ramos
Kaila Vince Nellas

6.2 Job Descriptions /Job Specifications

Chief Executive Officer

Responsibilities

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  Communicate with the board of directors, management team, and

corporate operations.

 Makes major decisions for the company.

 Oversees business activities to ensure productivity.

Qualifications

 Bachelor’s or master’s degree in a related degree or discipline.

 Experience in a senior management position.

 Knowledge of profit and loss, balance sheet and flow management and

general finance and budgeting.

Chief Finance Officer

Responsibilities

 Assists COO in strategic and tactics.

 Manages budget and financial development of the company.

 Financial projections and accounting services.

Qualifications

 Minimum of 8-10 years of senior role.

 CPA designation preferred.

 Masters Degree in Accounting, Finance or Management.

 Excellent verbal, analytical and organizational skills.

Chief Operating Officer

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 Responsibilities

 Ensures efficiency of the company.

 Ensures functionality of the business.

 Brings broad and sustainable development in the company.

Qualifications

 Two years Master of Business Administration Degree.

 Experience in senior management.

Accounting and Finance Manager

Responsibilities

 Responsible for areas related in financial reporting.

 Develop and maintain accounting principles, pratices and procedures to

secure precise and updated financial statements.

Qualifications

 Bachelor’s degree in finance, accounting, business and other related

fields.

 CPA license required

 Excellent written and verbal communication skills.

 Advanced knowledge in bookkeeping, accounting best practices and

standards.

Human Resource Manager

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 Responsibilities

 Screening, recruiting, interviewing and even training workers.

 In task of directing and coordinating function.

Qualifications

 A bachelor’s or master’s degree in human resource management,

business management or any related field.

 Up to five years of working experience.

 Certificate in HR Administration.

Production Manager

Responsibilities

 Controls manufacturing processes.

 Organise and plan the processes.

 Ensures the efficiency and level of quality of products and services.

Qualifications

 Bachelor’s degree in related field.

 Ability to perform any work in production floor.

Marketing and Operations Manager

Responsibilities

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  Work schedules and the assignment of the employees

 Execute strategies in marketing the products and services; establish

marketing solutions; plan; track performance in order to report and initiate

analysis.

Qualifications

 Bachelor’s degree im business related field.

 Strong leadership skills and ability to perform wide range tasks.

 Industry experience

Supervisor

Responsibilities

 Ensures job efficiency through training, counselling and disciplining the

employees.

 Serve as a link to the subordinates and the high ranking officers of the

company.

Qualifications

 Bachelor’s degree

 Experience in business industry.

 Good written and communication skills.

Section 7

Financial Plan

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7.1 Costing

The raw materials and other things the company will need are listed down below.

10, 000 PAPER

EXPENSES COST
CHARCOAL PER MONTH

Water Php 500

Paper Php 30

Yeast Php 110

Recycled Box Php 0

Packing Tape Php 200

TOTAL 840

However, the investment needed to start the business are listed below.

EXPENSES
COST
Basin (20 x 10)
Php 500
Charcoal molder (stainless)
Php 5,000- Php 10,000
Measuring cups
Php 50
Strainers
Php 75
Trays
Php 25- Php 35
Paper Bags
Php 120
Silk screen
Php 120
Hose
Php 2, 299.75
Poster paint (green and black)
Php 120
Paint brushes Php 30- Php 130

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 Rags
Php 5- Php 10
Carpets
Php 2,206.28
Water Tank (2500 litres)
Php 27,174.91
Surgical gloves
Php 40
Face masks
Php 40
Hairnet
Php 25
Apron
Php 50

Toll gate allowance (Cavitex)

Toll gate allowance (SLEX and

NLEX)
Php 200- Php 600

Gas Money
Php 500- Php 5000
Mini truck
Php 100,000
Php 148,595,94~ Php
TOTAL 200,000

Selling Price and Target Market

After a long deliberation of the board members of the company, Paper Charcoal

Enterprise, about the product’s price is going to be, they agreed that the paper

charcoal’s price will start at a price of Php 10 up to Php 50 depending on the delivery to

the resellers.

The company’s target markets are the residences of rural areas and those

people who are camping and doing outdoor activities. Campsites are a potential target

market as well. The company made their product as affordable as possible to the

community but still manage to give the best quality to the customers.

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Page | 36