A BUSINESS PLAN OF MR – LAD PROCESSED FOOD PRODUCTS

RETAILING LOCATED AT PUROK 1 POBLACION COMPOSTELA DAVAO

DE ORO, PHILIPPINES

Presented to
The faculty of Business Education
Compostela Valley State College
Main Campus
Compostela, ComVal Province, Philippines

In Partial Fulfillment
Of the Requirements of the Degree
Bachelor of Science in Entrepreneurship

Niljay R. Repalda
Mark Adrean Honrada Damalerio
Greggy Lucena
Suseth Miguel
Realyn Gregorio Ababa

BACHELOR OF SCIENCE IN ENTREPRENUERSHIP

 THIRD YEAR-3F

ACKNOWLEDGEMENT

The success of this study required the help of various individuals. Without them,
the proponents might not meet the objectives in doing this study. The proponents want
to express their thank s and gratitude to the following people for their valuable help and
support:

Most of all to our Almighty God for giving us the strength, wisdom, knowledge
and fighting spirit to continue and finish this business plan proposal a successful one.

To our adviser who always there and give some advice and ideas to accomplish
this business proposal.

To out respondents, who respond and answer the given questionnaire in

sharing his time in doing critical reading for the entire manuscript.

To our parents, who are always there to support emotionally, spiritually and
financially to keep us move and finish our study.
 TABLE OF CONTENT
Parts of the Business Plan Manuscript

Title Page (All successive preliminary pages are numbered consecutively).i

AKNOWLEDGEMENT…………………………………………………………..……ii

TABLE OF CONTENTS……………………………………………………………...iii-iv

Introduction……………………………………………………………………………..v

Objective of the Business……………………………………………………………v

EXECUTIVE SUMMARY……………………………………………………………..vi

Brief Description of the Project……………………………………………………..vi

Profile of Entreprenuers………………………………………………………………vii

CHAPTER 1 –

GENERAL COMPANY DISCRIPTION….…………………………………………..1

Vision………………………………………………………………………………..2

Mission………………………………………………………………………………2

Goals…………………………………………………………………………………2

Objectives…………………………………………………………………………..2

Business Philosophy…………………………………………………………….2

Legal form of Business Partnership…………………………………………..3

Project Contribution to Economy……………………………………………...3

CHAPTER 2 – MARKETING PLAN………………………………………………………4

Marketing Aspect……………………………………………………………………………4
Marketing Product Descriptions………………………………………………………….4

LIST OF FIGURES

Figure 1. Business logo

Figure 2. Business/Product

Figure 3. Packaging

Figure 4. Vicinity Map

Figure 5. Target Market Population

LIST OF TABLES

Table 1. Historical Demand 1

Table 2. Historical Demand 2

Table 3. Compute the average increase or decrease of the historical

demand

Table 4. Projected Demand

Table 5. Historical Supply

Table 6. Compute the average increase or decrease of the historical supply

Table 7. Projected Supply

Table 8. Demand and Supply Analysis

Proposed Location…………………………………………………………………………...5

Market Area…………………………………………………………………………………….5

Target Market………………………………………………………………………………….6

Swot Analysis………………………………………………………………………………….7

Marketing Strategy……………………………………………………………………………8
Pricing Strategy……………………………………………………………………………….9

CHAPTER 3 – PRODUCTION PLAN ………………………………………………………10

Production process

Table 28: Utility Expense Construction Plan

Table 29: SSS, PHIC, PAGIBIG

Table 30: Schedule of Depreciation-Store Equipment

Table 31: Capital Expenditures

Table 32: Supplies expenses

Tab Table 33: 13th Month pay

Table 34: Marketing Expenses

Table 35: Cost of Goods Sold

CHAPTER 4 - MANAGEMENT AND ORGANIZATION PLAN…………………………..11

Form of Business

Organization Structure

Business Experience and Qualifications of the Entrepreneur

Table 36: Administrative Personnel

Table 37: Permits and Licenses

Table 38: Professional Fee

Table 39: Arcabala

Table 40: Salaries and Wages

Table 41: Supplies Expense

Table 41: Repairs and Maintenance

CHAPTER 5 - FINANCIAL PLAN…………………………………………………………...12

Capitalized Requirement

Assumptions

Statement of Financial Position

Statement of Financial Performance

Cash Flow Statement

Sales Revenue Forecast

Cost of Sales

Financial Ratios

Projected Feasibility

APPENDIX

REFERENCES

SURVEY QUESTIONNAIRE

CURRICULUM VITAE

INTRODUCTION

Accordingly, chicken meat is traditionally marinated prior to cooking to improve

tenderness; flavor and increase shelf life. Marinating is the process of infusing a solution
of water, salt and other ingredients such as phosphates and is done by injection or
tumbling. The proponents were committed to serve a delicious food that all customers
would love. The proponents make sure to create the best and affordable price to all
customers, making sure that all the recipes are good and clean to gain more customers’
trust. The business was made and chosen by the proponent for the main reason which
they observed in the market that there are only few and less distributors or supplier that
can be considered as the possible competitors of the business. The proposed business
was seen by the proponents that it will give some benefits to the future researchers as
their basis and as their guidelines in making also their business plan possible and
successful and also the respondents would be able to benefits through the product
benefits that it will bring and provide to them towards meeting their satisfaction and
exceeding their expectation.

The proponents grab this opportunity to implement this business because they
believe that it is feasible in the market, considering the increasing number of the target
market and the existence of colleges and other institution where students choose to
have a ready to serve meals.

The proponents meant to create a marketing strategy that will help customers in
familiarizing and to provide marinated chicken, reasonable priced and interest for our
product, resulting to repeat purchase.

Objectives of the business

The following are the objectives of the proponent in conducting the study:
 To increase profitability of the business by 3% to 5 % every year.
 To less and reduce the production cost of the business by 5% per year.
 To increase sales by 5% per year.

EXECUTIVE SUMMARY

The proposed business plan was based on the observation of the proponents to
the lack of supplies of marinated chicken in their town. The proponent comes up with
the idea to produce marinated chicken and was chosen that the official name of the
business is “MR-LAD PROCESSED FOOD PRODUCTS RETAILING”. The brand name
itself was derived from the combination of the family name of the proponents and the
product that the business will be going to produce is marinated chicken. As everybody
knows that chicken contains a lot of health benefits that the consumers will get, chicken
is a food that is rich in protein, helps weight development and prevents the increase risk
of heart disease.

To make the business plan possible and successful, it choose its perfect target
market that will be its focus in where the proponents will going to produce the product.
The target market of the proposed business plan is the four Purok of Barangay
Poblacion, Compostela

The business will be located at Purok 1 Poblacion, Compostela, Davao de Oro.

As the proponents see that the location is the perfect way in which the target market will
be reach out. Also, the location is accessible and easy to be found. In addition, the
production process of the business will be three times a week but still depends on the
demand of the consumers.

In distributing the product, the proponents decide to use different kinds of

techniques in promoting and marketing the product. The proponents will be going to use
flyers, banners, tarpaulins and social media as their way of introducing and marketing
their products towards reaching the target market.

The business will be in the form of sole proprietorship with an internal agreement,
the registered owner name will be the one who will take all the benefits and risk of the
business but he/she will still free to ask for help for the other people who is part of the
business.

The proposed business will be having Ᵽ44,625 as a beginning capital that will

used to operate and manage the business. Sales in volume (orders) will increase

according to growth rate in Compostela, Davao de Oro (1.32%). The project feasibility

based on the financial ratios and statements as on the Return on Sales, Return on

Assets, Current Ratio and Equity to Asset Ratio computed by net income divided

revenues, net income divided total assets, net income divided owners’ equity, current

assets divided by current liabilities and total equity divided total assets its shows the

calculation if the product were feasible. As the percent result there are 14%, 107%,
112%, 19.21%, 96% result upon the computation from year 2021 as the start ratios

projection.

Moreover, the proponent wants to provide delicious food at a reasonable price.

The proponents will provide combination of marinated chicken food at value pricing. To
enhance market awareness, the proponents applies personal selling as a tool in
promoting product. The proponents approach prospect customers and inform them
about the product.

Brief Description of the Project

The official name of the proposed business is MR – LAD PROCESSED FOOD

PRODUCTS RETAILING with the tagline “Mabilis na lutoan para sa masarap na
kainan”. The brand name itself was derived from the combination of the family name of
the proponents and the product that the business will be going to produce is marinated
chicken. The business will be produce delicious and healthy marinated chicken with an
organic taste that will exactly address the needs of the consumers and will meet their
satisfaction. In addition, the proponent decided to invest P50,000 (Fifty thousand pesos)
in starting the business and making it possible and successful, it will includes the
needed materials (Machines and technologies) and raw materials (chicken and
seasonings).
Profile of the Entrepreneur

NAME EDUCATIONAL ADDRESS

BACGROUND/EXPERIENCE

Niljay R. Repalda A third-year student of CVSC Purok 12 Poblacion,

Main Campos studying Compostela Davao De

Bachelor of Science in Oro

Entrepreneurship.

CHAPTER 1

GENERAL COMPANY DESCRIPTION

Having a good business production that is efficient and effective is essential for
building and achieving a successful business and also having a worker within the
business that has the capacity in learning skills on how to create the products is also a
great factor in making the business successful.

The proponents created the business in a reason that they observed that
everyone loves to eat marinated chicken and also based on our observation there was a
lack of supply of the product, that’s why the proponents wanted to implement and
pursue the business and also they wanted to serve a food that has a different taste to
other competitors.

“MR – LAD PROCESSED FOOD PRODUCTS RETAILING”. Will Open from

Monday to Sunday at Purok 1 Poblacion Compostela Davao De Oro.
Vision

To become one of the leading marinated chicken that serve’s happiness to our
customer through delicious, good, quality and extraordinary marinated chicken
experience while working toward the greater good for our employees, community and
environment.

Mission

MR – LAD PROCESSED FOOD PRODUCTS RETAILING mission is to become

the top leading marinated chicken in the town. Which offer the best marinated chicken
and serve the most excellent quality of food at a great value and also hold high
estimation of teamwork, honesty, community involvement, dedication to the culinary
arts, and unique than others in making the business well known throughout
Compostela, Davao De Oro.

Goals

 Improving and measuring the business operations and processes by 30 per hour
per worker.
 Improving 10% positive reviews from interacting and communicating with
customers.
 Increase productions by 5% per year.

Objectives

This presents the list of the proposed business that will be the base to get its aims
and to improve the business.

 To increase profitability of the business by 3% to 5 % every year.

 To less and reduce the production cost of the business by 5% per year.
 To increase sales by 5% per year.
Business Philosophy

“To ensure and assure to serve delicious food and clean and comfortable environment”

Customers’ satisfaction - is a primary and basic concern, that’s why the proponents
employ strict quality procedures to give all the customer’s needs that fit today to serve
yummiest and marinated chicken, bringing the happy and satisfactorily eating to
everyone.

Good quality of a product – offering good and best quality of product will give and
meet the satisfaction customers and exceed their expectations.

Meeting the demand of the market – meeting the demand and providing it will be one
of the reasons that the market business makes profit.

Legal Form of Business

The business will be in a form of sole proprietorship with an internal agreement

as the proponents feel like to have an easy and simple form of business. In line with
this, the business will be managed only with one person who is also the one acquires all
the benefits as well as the risks of the business to encounter in the future. Therefore,
the proponents have decided that Niljay R. Repalda, will be registered as the sole
proprietor of the business. The decision was made through considering the future of the
business which is easy to handle and less in pressure for the owner.

Project Contribution to Economy

The business was just not created for its own benefits but it looking forward for
the contributions and benefits that it could bring and give to the economy of the nation,
and these are the business can provide employment for those people who do not have
a work and tax can help to the government budget for economic development.
 CHAPTER II
MARKETING PLAN

MARKETING ASPECTS
The proposed business plan was aiming to address the needs and solve the
problem of the consumers and to meet their satisfaction and exceed their expectation.
As the proponent see that every individual nowadays are changing their way of living as
we are now experiencing crisis as we are in the midst of pandemic, it is a great
opportunity to provide something that will help the way of living of every individuals turns
into efficient and convenient. Providing a product that will help individual to have an
easy access and easy way of processing with healthy and delicious benefits is a big
help in easing the problem and fear of everyone. The proposed business plan aims not
only for their own benefits but for the benefits of the consumers and for the contribution
that it could bring to the economy of the country.

In making the making possible and successful and to know that the product that
will be going to produce will address and fit to the needs of the consumers and address
the problem, the proponents use survey questionnaires to identify the individual who are
in favor in making the business possible and successful. Accordingly, a Questionnaire is
useful for collecting data one simple and well defined details about the research. The
design was carefully planned and piloted to ensure that it may provide the required
data, data that can be analyzed and used and an unbiased response.

On the other hand, proponents also conducted a survey to 251 respondents

to determine the marketability and acceptability of the product. The respondents of the

81% of the respondents answering the survey with Yes and the remaining percent was
No.

In marketing plan, there is a framework being made to prepare the business in

facing the anticipated problem in the future. By this, the process in making decision is
easy for there is already direction to be followed by the marketers. In line with this, the
proponents proposed their plan as their guidance in introducing and dealing their
business in the market as well as to identify the possible threats to be encountered.
Additionally, the proponents need to know the weakness and strength of their proposed
business so that it can survive and be able to achieve their goals. So, the following are
the marketing aspects that the proponents have to prepare with in order to make their
marketing plan be realistic and help their business become successful.

The products (Description)

The product is MR-LAD PROCESSED FOOD PRODUCTS RETAILING; this

product came from the fresh dressed chicken with an organic taste made by the
owners. The product will be going to produce is already made and easy to coke that
offers great delicious and healthy taste to the costumers, its competitive advantage is
that the product is easy to cook and ready to cook that will help consumers to have an
easy and convenient way of cooking towards having a delicious and healthy meal. The
proposed business wants to offer a good and high quality of product in the market which
address and helps the customers in providing their needs that will make them satisfied.
The proponents decided to set a price that is affordable to everyone. The product offers
such taste that will give the customers satisfaction and will exceed their expectation.

Name and picture of the product

Figure 1: Business Logo
Figure 2: Business/ Product
“MR-LAD PROCESSED FOOD PRODUCTS RETAILING”.

Figure 3: Packaging

Proposed Location
The proponents decided and see the better future ahead of the business in
locating it at Purok. 1. Poblacion, Compostela Davao De Oro. The location is visible to
the people who will pass by in the street going to the public market. In addition, the
location is accessible and easily be found. The proponents think that the location site
they’ve been choosing is in the accessible and crowded people in whom the target
market can easily be reach and found out towards achieving an increase of revenues as
well as profit. And they have insight that within 3 years of operation, the people who live
in that place will increase.

Figure 4: Vicinity map

Market Area
The said market area of the business will be located at Purok 1, Poblacion,
Davao De Oro, Philippines. In order for the business to become feasible and visible to
the market, the proponents considered the exact location for the business to establish
and undergone with approval to the school and the research ethics committee. They are
looking for a large number of customers to help in achieving the business goals and
objectives.

Through this, the proponents use a strategic location for them to have enough
marketing strategy in marketing their business by considering the total population of the
said market. This section includes the target market, historical demand, projected
demand, historical supply, projected supply, the supply and demand analysis and
corresponding market share of the enterprise.

Target market

The proponents decided to put the business in this place to help the customers
easily access the product that being offered which can help them address their needs
and satisfy them. In terms of effectiveness, the proposed business is very excellent for
the reason that it is located beside the public market and can be noticed easily by large
volume and amount of customers. The main focus of this business is to attract
customers without age restrictions and limits.

On the other hand, proponents also conducted a survey to 251 respondents to

determine the marketability and acceptability of the product. The respondents of the
study can be broken down into three (3) groups: Male, Female and LGBT members.
60% of the respondents answering the survey are Female, 30% of them are Male and
10% are members of the LGBT community. The research results are shown on the
average, 36% are single, 57% of them are married, 4% are widowed and 3% is
separated. On the other hand, the majority of the respondents are self-employed in their
own business which consist of 68%, 9% are working in the government, 18% of the
respondents are students and 5% of the respondents are retired. Majority of the
respondents are below to the age group of 24-41-year-old which composed of 64%,
followed by 36% from 15-24 years old. This only means that when an individual reaches
the age of accountability which is 15 years old and above most of them is already food
aware and health conscious of the food they eat. The market demand is greater
compared to teenagers and primary individuals. The survey revealed that the majority of
the respondents has an average income of Php 15,000-20,000 that comprised 73% of
all respondents, then followed by 14% from the average income of Php 20,000-25,000,
followed by below Php 10,000 that comprises 13% of the respondents.

Sales
Purok 12
10%

Purok 10 Purok 1
14% 33%

Purok 9
19%

Purok 6
24%

Figure 5. Target market population

B. Historical Demand

Historical demand is groundwork for many valuable small business decisions.

The purpose of the proposed business aims to capturing data correctly, so it can be
properly analyzed. Historical demand is the source for many very important decisions.
The data was gathered through the help of the result of the survey that the proponent
had conducted.

The table shows the past annual demand of the products for the past 3 years and the
average number of purchases per much made by the customers.

Historical demand 1

Table 1. Historical demand

Total of NO. OF
Frequency CUSTOMER
No. of Order per PER Total
Frequency Consumers Purchase Option No. of % of OPTION Weekly
Options No. of (%R x Frequency Orders Respondents Respondents ORDER (C x Orders
per Week Respondents Population) (A x C) (OO) per OO per OO G) (E x H)
1 105 95 95 1 81 61% 58 58
        2 30 23% 21 43
        3 22 17% 16 47
2 102 72 144 1 41 60% 43 43
        2 12 18% 13 25
        3 15 22% 16 48
3 18 50 150 1 32 48% 24 24
        2 22 33% 17 33
        3 12 18% 9 27
Total 225 217 389         349

Total Weekly Orders 349

x no. of weeks in a year of operation 52
Total Annual Orders 18,148
Divide by no. of potential customers
based on survey 217
Ave. annual orders per customer 84

Historical demand 2
Table 2: Historical Demand

Purchase Total
% of No. of
Year Population Frequency/ Annual
Customers Customers
customer Demand
2019 734 81% 595 84 49,980
2020 889 81% 720 84 60,480
2021 977 81% 791 84 66,444

This table shows the population, % of customers and no. of customers, purchase
frequency customers and total annual demand.

Table 3: Compute the average increase or decrease of the historical demand.

(B)
(A)
Historical
Year (D)
Demand
Percentage (E) Average
( C ) Difference Increase/Decrease %
(Current - (Difference/Previous Increase/Decrease
Previous Year) Year) (Sum of D/2)
2019 49,980      
2020 60,480 10,500 17.40%  
2021 66,444 5,964 9% 13.2%
 This table shows the Historical demand, difference, percentage increase and
decrease, average % increase and decrease for 2018, 2019, and 2020.

Projected demand
Table 4: Projected demand

Average % Projected
Year Base Year
Increase Demand
2022 66,444 13.2% 75,215
2023 75,215 13.2% 85,143
2024 85,143 13.2% 96,382

This table shows the projected demand, Base year, Average % increase and
projected demand for 2021, 2022, and 2023.

Historical Supply

This section shows the historical number of products proposed by the current
competitors of the proposed business. The information gathered in this area is essential
the basis in projecting the supply of the products planned to produce by the entity. The
proposed business identified three (3) competitors who offer crispy chicken and lechon
manok of the entity for the past 2018, 2019 and 2020.

Table 5: Historical Supply

COMPETITOR 2019 2020 2021

 Sabing 5, 100 5, 350 5, 600

Sinubong 7, 250 7, 550 8, 000

Sumalinog 10, 400 11, 000 11, 800

Total Supply 22, 750 23, 900 25, 400

Table 6: Compute the average increase or decrease of the historical supply.

Historical Percentage Average %

Year
Supply Difference Increase/Decrease Increase/Decrease

2019 22, 750

     

2020 23, 900 1, 150 5%  

2021 25, 400 1, 500 6% 5.5%

This table shows the competitors historical supply for 2018.

See appendix F, as a reference for the computation of Average % increase and

decrease.

Projected Supply

Table 7: Projected supply

Average %
Year Base Year Projected Supply
Increase

2022 25, 400 5.5% 26, 797

2023 26, 797 5.5% 28, 271

2024 28, 271 5.5% 29, 826

The table below shows the projected supply for the next 3 years 2021, 2022, 2023 and
the average % increase for projected supply.

See Appendix G, for the computation of Projected Supply.

Supply and Demand Analysis

Demand and supply analysis are the study of how buyers and sellers interact
to determine transaction price and quantities. This section shows the unsatisfied
demand of the market as of the period by analyzing its demand and analysis taken from
the survey conducted by the proponents.

Table 8: Supply and Demand Analysis

UNSATISFIED
YEAR DEMAND SUPPLY
DEMAND

HISTORICAL

2019 49,980 22, 750 27,230

2020 60,480 23, 900 36,580

2021 66,444 25, 400 41,044

PROJECTED

2022 66,444 26, 797 33,647

2023 75,215 28, 271 46,944

 2024 85,143 29, 826 55,317

Table 8 shows the demand and supply to have the result of unsatisfied demand.

See appendix H, as reference for the computation of demand and supply analysis.

Market Share

Table 9: Market Share

ESTIMATED
UNSATISFIED
YEAR PRODUCTION MARKET SHARE
DEMAND
CAPACITY

2022 33,647 18,000 53%

2023 46,944 18,238 39%
2024 55,317 18,478 33%
Table 8 shows the average market share of 2021 for the year 53% and 39% for the year
2021, 33% for the year 2023 as projected market share.

See appendix I, as reference for the computation of Market Share.

Marketing plan
Every business needs plan before doing it in a real or actual situation. In this

section the proponents include the marketing objectives, marketing strategies and sales

forecast. The promotional measures that will be used to sell the product will be

presented in the marketing strategy in order to achieve the marketing objectives.

Marketing Objectives

The proposed business aims to increase product awareness among its target

market and promoting the business in a large of number of customers. As well as to

become popular in the near places of the said market aside from the target market. It

also aims in promoting the business to reach out the potential buyers who might be felt

satisfaction and find interesting in buying it repeatedly. Thus, it will the reason to make

the business grow and gain profits as well to expand the business in other place.

SWOT ANALYSIS

Strength Weaknesses

 Delivers and provides good and  Lack or shortage of supply of the

satisfying product taste and main ingredient which is the

good customer service. chicken.

 Attract and influence customers  Increasing ingredients prices.

buying decision

 No big competitors that will need

to compete with

 The product is new to the market

Opportunity Threat

 Market expansion  Bogus buyer

 International market expansion  Competitors with the same

 Successful and progressive product.

operations and transactions  Offensive word of mouth from

  To become known and popular the customers and competitors.

to the market; Brand name and  Failure of business operations

product itself. and productions.

 Changes of customers taste and

buying decision.

Product strategy
The proposed business will offer a tasty and healthy food that will use disposable
materials in packaging as the customers freely bring it if they want. Also, this disposable
material is to help in preventing garbage that can cause dirt and mess in our
environment. And one of our business marketing strategies is by creating fliers to be
distributed to people and social media advertising of our product so that more people
will know about our business.

Promotional strategy
The proposed business will use different strategies to promote their
business in reaching the target customers. The proponents decided to use a
combination of marketing techniques and these are the following:

 Distributing flyers one week before the grand opening – In this way, people will

be able to know the business that is going to operate in the market. In this way

also, the business will begin to introduce in the market especially to the

prospective customers.

 Tarpaulin – By this, it will help in attracting customers of the proposed business

and it will be placed at Purok 1, Poblacion, Compostela Davao de Oro.

 Free taste during the conduct of business implementation – By this, the business

will be tested by the customers and able to receive feedbacks, comments and
 suggestions that will help the proponents to get an idea on how to improve and

develop their offered product.

 Promotion using social media – By the use of new technologies, marketing a

certain product or service is easier for the marketers. Social Medias are the most

important part of technologies that are existing nowadays. Thus, the proponent

Use this as a medium channel in marketing the business. It gives easily an

information about the business they offer like posting on their fb page, sending

messages through email and messenger as well as by creating vlog and uploading it

in YouTube. By this, the business will be known easily to the market especially to the

target customers. Lastly, promoting a business in social media is less costly and less

effort for the proponents to spend.

Pricing strategy
The proposed business set a Cost-based Pricing Strategy for the product being

offered, in order to create a loyal and strong customer basis. With the total cost of

production, the proposed business set a mark-up price in a product offered to obtain the

final price.

The proponents use this kind of strategy to attract and convince the customers
who are looking for an affordable product. The advantage of this strategy is that it
involves a simple way of computation and ensures the business to provide its
customers an ultimate satisfaction for keeping the price reasonable.
 MR-LAD PROCESSED FOOD PRODUCTS RETAILING
Particulars Serving Quantity Unit Amount Unit Cost
s Price
Chicken 1 1 500 g 59 59.00 59.00
Onions 1 1 mini-pack 3.00 3.00 3.00
Garlic 1 1 mini-pack 3.00 3.00 3.00
Soy Sauce 1 1 mini-pack 3.00 3.00 3.00
Lemon 1 1 mini-bundle 2.00 2.00 2.00
Black Pepper 1 1 mini-pack 2.00 2.00 2.00
Ingredient Cost Per Unit 59.00
Cellophane 1 1 pc 4.00 4 4.00
Printing for Logo 1 1 1.00 1 1.00
Packaging Cost Per Unit 5.00
Direct Material Cost (Per Unit) 64.00
Direct Labor Cost (Per Unit) 3.33
1500 1 33.33 33.33 0.002
Factory Overheads (Per Unit) 0.00
Variable Cost (Per Unit) 67.34
Monthly Production Capacity 1500
Total Variable Cost (Month) 101,002.78
Selling and Admin Expenses 6,584.65
Total Production Cost/Expenses 107,587.43
Units Produced 1,500
Cost Per Unit 71.72
Selling Price (Per Unit) 93.24
 CHAPTER III

PRODUCTION PLAN

Production planning is planning of production and manufacturing modules of production

and manufacturing modules in a company or industry. It utilizes the resource allocation of activities
of employees, materials and production capacity in order to serve different customers.

Production process

I. Ingredients
First step: Prepare the following ingredients
 Chicken (500 grams)
 Onion
 Garlic
 Silver Swan Toyo
 Lemon
 Black Pepper

II. Instructions
Second step: marinate the chicken
 In a bowl, soy sauce, salt and pepper. Stir well until salt and pepper dissolved.
Figure 7: Chicken Marinate

Third step: Ready to cook

 Our marinated chicken is easy to cook because our marinated chicken is already
mixed. And so our customers won't have any more difficulties and our marinated
chicken is still worth it and solve in the pocket.

Figure 8: Marinated Chicken

STALL FACTORY LAY-OUT

Figure 11:
Stall Factory
Lay-out

Food Glass Display

“Mabilis na lutoan para sa masarap

na kainan”
Figure 12: Stall Left
View

“Mabilis na lutoan para sa

masarap na kainan”
Figure 13: Stall Right
View

“Mabilis na lutoan para sa

masarap na kainan”
Utility Expense Construction of Stall Factory lay-out

Table 28: Utility Expense Construction Plan

Utilities Expense Qty Unit Cost Total Cost

Electricity and Power 12 1,100 13,200
Water 12 500 6,000
Communication (Load) 12 150 1,800
Transportation 12 1,000 12,000
Total 33,000

This table shows the construction expenses

SSS, PHIC, PAGIBIG

Table 29: SSS, PHIC, PAGIBIG

Depreciation

Table 30: Schedule of Depreciation-Store Equipment

Capital Expenditures

Table 31: Capital Expenditures

Capital Expenditures
Breakdown of Cost

Uni
t Est. Unit Cost Total Cost

Equipment Freezer 1 9,900 9,900

s Mini-Stall (Store Facility) 1 4,124 4,124
14,024
Kitchen Materials 1 1,187 1,187
Electonic Weighing Scale 1 789 789
Total 16,000

Overhead Supplies & Kitchen Equipment

Table 32: Supplies expenses

Kitchen Materials Qty Unit Cost Total Cost

Knife 2 69 138
Chopping Board 2 50 100
Plate 3 56 168
Mixing Bowl 3 54 162
Sauce Bottle 3 95 285
Tongs 3 25 75
Container 2 40 80
Cups 10 11 110
Spoon (1 set) 1 69 69
Total 1,187
13th Month Pay

Table 33: 13th Month Pay

Monthly
13th Month Pay No. of Employees Salary Total Cost
Charged to COGS
Kitchen Staff 1 6,000 6,000
Charged to
Operating
Expenses
Manager 1 7,200 7,200
Total 13,200

Marketing Expenses

Table 34: Marketing Expenses

Marketing
Expenses Qty Cost Total Cost

Leaflets 200 0.50 100

Tarpaulin 1 230 230

Total 330
Production Cost

Table 35: Cost of Goods Sold

SALES IN VOLUME UNIT Total Direct Costs

Products
2022 2023 2024 COST 2022 2023 2024
DIRECT MATERIALS DM Cost/ Order
Marinated Chicken 18,000 18,238 18,478 64.00 1,152,000 1,167,206 1,182,614
1,152,000 1,167,206 1,182,614
DIRECT LABOR
Kitchen Staff See Note 12 for Details 72,000 72,000 72,000
SSS, PAGIBIG and PHIC See Note 4 for Details 8,880 8,880 8,880
13th Month Pay and Other
Benefits See Note 7 for Details 6,000 6,000 6,000
OVERHEAD COSTS
Other Kitchen Materials and
Supplies See Note 13 for Details 400 418 437

COST OF GOODS SOLD 1,239,280 1,254,504 1,269,930

 CHAPTER IV

MANAGEMENT AND ORGANIZATION PLAN

This section shall discuss the form of the proposed business and the advantages
gained by the owner of the business and this section presents the organization structure
of the business and administrative requirement needed in operating the proposed
business.

The management aspect suggests clear details of the duties and responsibilities
of its subordinates, the flow of authority and labor level requirement. This contains the
organization chart and qualifications of the people involved in the business
organizations structure. The settings of its supervision are to attain the effectiveness
and efficient management able to make the plan visible for the business actively
performs the task.

Form of Business

The proponents have chosen to Sole proprietorship to organize the Business

and owned by one person, usually the individual who has day-to-day responsibilities for
running the business. The proponents have chosen this form of business since this is
the easiest and simplest form to set up and register. However, when any of the
circumstances may alone, it would probably shoulder by the proprietor all by itself.

Below are the basic step requirement and procedure in registering a sole
proprietorship business.

1) Register your business name at Department of Trade and Industry

2) Register your business in the Mayor’s Office or BPLO.
3) Register your business in the Bureau of Internal Revenue (BIR).
After the entire step, you can start operating and growing your business.
Organization Structure

Owner/Manager

Kitchen Staff

Figure 15: Organization Structure

The figure above shows the organization structures of the proposed business. It is
initially composed of 3 persons. The first one, which is the owner who will manages the
business and second is the Service crew who will marinate the chicken, third one is
Seller who will sell the product.

Business Experience and Qualifications of the Entrepreneur

Niljay R. Repalda, a Bachelor of Science in Entrepreneurship Student of

Compostela Valley State College will run and manage the proposed project. He has an
experience in working 7/11 for almost (3) year being the family’s source of income. With
such a given the additional knowledge and skills he acquired being an entrepreneurship
student in CVSC.
Administrative Personnel

Table 36: Administrative Personnel

Number of
Position Job Description Job Qualification Employees Salary Rate
(2020) Per day
Manager Who will High School or College 1 ₱ 300.00
responsible for Graduate
manage the Male or Female
business. Prior Experience in related
to food preparation
Permits and Licenses

Table 37: Permits and Licenses

Professional Fee
Table 38: Professional Fee
Professional Fee Qty Unit Cost Total Cost
Accountant/ 12 500 6,000
Bookkeeper
Total 6,000

Arcabala
Table 39: Arcabala
Arcabala Qty Unit Cost Total Cost
Daily Due of P20 12 600 7,200
Total 7,200
Salaries and Wages
Table 40: Salaries and Wages
Salaries and Number of Monthly Salary Annual Salary
Wages Employees
Charged to COGS
Kitchen Staff 1 6000 72,000
Charged to
Operating
Expenses
Manager 1 7,200 86,400
Total 86,400

Supplies Expense
Table 41: Supplies Expense
Supplies Expense QTY Unit Cost Total Cost
Indirect Materials
and Supplies
(COGS)
Hairnet 4 15 60
Gloves 4 25 100
Apron 4 60 240
Subtotal 400
Office Supplies
Record Book 1 55 55
Ballpen (Boxes) 10 5 50
Stapler 1 175 175
Staple Wire 5 45 225
Calculator 1 175 175
Kitchen and
Cleaning Supplies
Trash Bins 3 69 207
Brooms 2 20 40
Dust Pan 1 65 65
Total 992
Repairs and Maintenance
Table 42: Repairs and Maintenance
Repairs and Maintenance Unit Cost Allowance for RAM
Freezer 9,900 1,000
Mini-Stall (Store Facility) 4,124 500
Total 1,500
 CHAPTER V

FINANCIAL PLAN

This chapter will discuss thoroughly the source of initial investment of the venture
and its financial requirement. It will state the projection of financial data in order to
prepare of financial reports, such as Statement of Cost of Goods Sold, Projected
Income Statement, and Statement of Changes in Equity, Statement of Cash Flow and
Statement of Financial Position.

Capitalized Requirement

The proposed business will be having Ᵽ44,625 as a beginning capital that will used to
operate and manage the business.

Total Projected Cost

 PRE-OPERATING
A. EXPENSES
Marketing Expenses 330
Supplies Expense 248
Prepaid Rent 1,200
Permits and Licenses 2,847 4,625
B. CAPITAL EXPENDITURES
Equipments 16,000
16,000
WORKING CAPITAL (Good
C. for Week of Production)
Marinated Chicken 24,000 24,000
START-UP COST 44,625
CAPITALIZATION 44,625
EXTERNAL
FINANCING
NEEDS -

Note: Working Capital is prepared for one week purchases.

Assumptions

1 Sales in volume (orders) will increase according to growth rate in

Compostela, Davao de Oro (1.32%).

2 Price of each product will remain constant for the projected period.

3 Salaries expense will remain unchanged for the whole projection period.

4 Cost of sales will increase according to inflation rates of the province of

Davao de Oro (4.5%)

5 All other operating expenses will increase according to inflation rate of

4.5%.

6 Inventory represents raw materials equal to 1 week worth of direct

materials required.

7 Withdrawal of the owner is 30% of the income after interest and taxes.
Statement of Financial Position
 ASSETS Notes 2022 2023 2024
Current Assets
Cash 175,726 352,066 531,552
Inventory 35,251 35,716 36,188
Supplies 248 259 271
Prepaid Rent 1,200 1,200 1,200
Total Current Assets 212,424 389,241 569,210
Non-Current Assets (Net)
Equipments 5 11,549 9,075 6,600
Total Non Current Assets 11,549 9,075 6,600
TOTAL ASSETS 223,974 398,316 575,810
LIABILITIES & OWNER'S EQUITY
Current Liabilities
Accrued Utilities Expense 3 2,750 2,874 3,003
OPT Payable 14 4,230 4,286 4,343
Income Tax Payable 15 - - 137
SSS, PHIC, HDMF Payable 4 1,589 1,589 1,589
Total Current Liabilities 8,569 8,749 9,071
Owner's Equity
Repalda, Capital 215,405 389,567 566,739
TOTAL LIABILITIES & OWNER'S EQUITY 223,974 398,316 575,810

Statement of Financial Performance

Cash Flow Statement
Financial Ratios
Projected Feasibility
 The project feasibility based on the financial ratios and statements as on the Return on

Sales, Return on Assets, Current Ratio and Equity to Asset Ratio computed by net income

divided revenues, net income divided total assets, net income divided owners’ equity, current

assets divided by current liabilities and total equity divided total assets its shows the

calculation if the product were feasible. As the percent result there are 14%, 107%, 112%,

19.21%, 96% result upon the computation from year 2021 as the start ratios projection.

APPENDIX

REFERENCES
https://www.google.com/search?
q=marinated+chicken&oq=marinated+&aqs=chrome.1.69i57j0i433j0j46j0l3j46j0l2.4
773j0j7&sourceid=chrome&ie=UTF-8
www.facebook.com
www.google.com

SURVEY QUESTIONNAIRE
 MR-LAD PROCESSED FOOD PRODUCTS RETAILING
Dear Respondent,

We, the Bachelor of Science in Entrepreneurship 3 rd-year students of CVSC Main

Campus, are currently conducting a Business Plan as our final academic requirement
for the subject Ent 113 – Business Plan Preparation. This survey aims to gather data to
be used to evaluate the demand of the proposed business/products and the
preferences of the target market. In line with this, we would like to request you to
answer the questions presented below which will surely help in the success of this
endeavor.

We will gladly appreciate your effort in answering our questions. Thank you.

(Minahal nga nagtubag,

Kami, ang Bachelor of Science in Entrepreneurship nga mga estudyante sa ika-3 nga
tuig sa CVSC Main Campus, naghimo karon ug usa ka Plano sa Negosyo ingon among
katapusang kinahanglanon sa akademiko alang sa hilisgutan nga Ent 113 -
Pagpangandam sa Plano sa Negosyo. Tumong sa kini nga survey nga magtigum ug
datos nga magamit aron masusi ang panginahanglanon sa gisugyot nga
negosyo/produkto ug mga gusto sa target nga merkado. Subay niini, gusto namo nga
hangyoon ka nga tubagon ang mga pangutana nga gipakita sa ubos nga siguradong
makatabang sa maayong sangputanan sa kini nga kalihokan.

Malipayon namon nga gipasalamatan ang imong paningkamot sa pagtubag sa among

mga pangutana. Salamat.)

Respectfully yours,

The Proponents

GENERAL DIRECTION: Please put check () on the space provided by the answer that
you have chosen.
(KINATUYANG DIREKSIYON: Palihug butangi ug tsek () ang wanang nga gihatag sa
tubag nga imong gipili.)

Customer’s Survey Questionnaire

Name: (Optional) ______________

Age: ____________
Gender: _________
OCCUPATION: _____________
Are you familiar with “MR-LAD PROCESSED FOOD PRODUCTS RETAILING”?

(Pamilyar ka ba sa "MR-LAD PROCESSED FOOD PRODUCTS RETAILING"?)

YES (OO) NO (DILI)

Are you willing to buy “MR-LAD PROCESSED FOOD PRODUCTS RETAILING”?

(Andam ka ba nga mopalit “MR-LAD PROCESSED FOOD PRODUCTS

RETAILING”?)

YES (OO) NO (DILI)

How often do you eat “MR-LAD PROCESSED FOOD PRODUCTS RETAILING ” in a

day?

(Kanunay ka mokaon sa "MR-LAD PROCESSED FOOD PRODUCTS RETAILING"

sa usa ka adlaw?)

ONCE (KAUSA) TWICE (MAKADUHA) THRICE (MAKATULO)

How many marinated chicken are you willing to buy “ MR-LAD PROCESSED FOOD
PRODUCTS RETAILING”?

(Pila ka mga marinated manok ang andam nimong paliton “MR-LAD PROCESSED FOOD
PRODUCTS RETAILING”?)

ONCE (KAUSA) TWO (MAKADUHA) THREE (MAKATULO)

Specify:

(Gipunting:)

Do you want “MR-LAD PROCESSED FOOD PRODUCTS RETAILING”?

(Gusto ba nimo nga “MR-LAD PROCESSED FOOD PRODUCTS RETAILING”?)

 YES (OO) NO (DIL

Are you willing to be seller of “ MR-LAD PROCESSED FOOD PRODUCTS

RETAILING”?

(Andam ka ba nga magbaligya sa “MR-LAD PROCESSED FOOD PRODUCTS

RETAILING”?)

YES (OO) NO (DILI)

Comments and Suggestions:

(Mga Komento ug Mga Sugyot:)

______________________________________________________________________
__
 CURRICULUM VITAE

Name: NILJAY R. REPALDA

Gender: MALE

Age: 25 YEARS OLD

Birthdate: DECEMBER 2, 1995

Mother’s Name: ROSALIE R. REPALDA

Father’s Name: RENATO E. REPALDA

Address: P- 12 POBLACION COMPOSTELA DAVAO DE ORO

Hobbies: PLAYING BASKETBALL

EDUCATIONAL BACKGROUND

Elementary: COMPOSTELA CENTRAL ELEMENTARY SCHOOL

Secondary: ALTERNATIVE LEARNING SYSTEM (TAGUM CITY)

College: COMPOSTELA VALLEY STATE COLLEGE

Course: BATCHELOR OF SCIENCE IN ENTREPRENEURHIP

 CURRICULUM VITAE

Name: Greggy Lucena

Gender: MALE

Age: 26 YEARS OLD

Birthdate: February 27, 1995

Mother’s Name: Evelyn Lucena

Father’s Name: Gaspar Ramada

Address: P- 7 Maparat COMPOSTELA DAVAO DE ORO

Hobbies: PLAYING BASKETBALL , Baseball, and Badmenton

EDUCATIONAL BACKGROUND

Elementary: Compostela Central Elementary School High School: Maparat National

High School

College: COMPOSTELA VALLEY STATE COLLEGE

Course: BATCHELOR OF SCIENCE IN ENTREPRENEURSHIP

 CURRICULUM VITAE

Name: Realyn Gregorio Ababa

Gender: Female

Age: 21 YEARS OLD

Birthdate: July, 06,2000

Father’s Name: Romeo Alforo Ababa

Address: P- 2 Riverside BARANGAY Tamia, COMPOSTELA DAVAO DE ORO

Hobbies: Singing, Dancing Cooking.

EDUCATIONAL BACKGROUND

Elementary: Tamia Elementary School

Secondary: Compostela Christian School

College: COMPOSTELA VALLEY STATE COLLEGE

Course: BATCHELOR OF SCIENCE IN ENTREPRENEURSHIP

 CURRICULUM VITAE

Name: Suseth Fantilanan Miguel

Gender: Female

Age:44 Years old

Birthdate:June,22,1977

Mother's Name: Blandina Ba-ay Fantilanan

Father Name: Monico Mortera Miguel

Address: zone 3 P-4 POBLACIon Compostela Davao de Oro

Hobbies: cooking

Educational Background:

Elementary graduate: Compostela Central Elementary School

High school Graduate: Compostela National High School

College: Bachelor of Science in Entrepreneurship

Course: Bachelor of Science in Entrepreneurship

 CURRICULUM VITAE

Name: MARK ADREAN H. DAMALERIO

Gender: MALE

Age: 21 YEARS OLD

Birthdate: NOVEMBER 24, 1999

Mother’s Name: ARLENE H. DAMALERIO

Father’s Name: JOEL L. DAMALERIO

Address: P- 4 BARANGAY NGAN, COMPOSTELA DAVAO DE ORO

Hobbies: SINGING, DANCING, COOKING, VOLLEYBALL AND READING.

EDUCATIONAL BACKGROUND

Elementary: COMPOSTELA CENTRAL ELEMENTARY SCHOOL

Secondary: ASSUMPTION ACADEMY OF COMPOSTELA

College: COMPOSTELA VALLEY STATE COLLEGE

Course: BATCHELOR OF SCIENCE IN ENTREPRENEURSHIP