SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC

6214 Guihulngan City

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Chapter 1
THE PROBLEM AND ITS SCOPE

Introduction

Bakery is a place where products such as bread, cake, and pastries are baked or

sold and also called bakeshop. The combination of flour, yeast, water, salt, and sugar

are known as the main ingredients of bread that can help us to have a small bakery and

to serve other people. We all know that the bakery products have been popular around

the world and are one of the oldest artificial foods. It started with a simple biscuit, the

common products of bakery and it is also can be different in their shapes, size, style,

flavor and textures.

Baking was brought to the Philippines by a young man who had traveled all the

way from China. That gentleman's name is Aquaver Natividad Uy. In China, he worked

as a baker, and when he discovered the Philippines, where he had no prior knowledge,

he moved there to teach and expand baking. The process of baking in the Philippines

In response to the rising cost of bread in the Philippines, Pinoy Tasty Bread was

created. In the Philippines, bakeries have produced a basic bread that is fortified with

vitamins and iron and will be sold at a lower price than branded loaves as a

demonstration of their commitment to corporate social responsibility. Approximately two

thousand bakers have signed on to participate in this initiative, which is being led by the

Philippine Baking Industry Group (PhilBaking), the Federation of Philippine Bakers

Association, and the Filipino Chinese Bakers. Additionally, the Department of Trade and

Industry and the Bureau of Food and Drugs are providing support for this endeavor.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
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Background of the Study

This proposal has been put out by the researcher with the intention of better

catering to the valued customers by developing innovative and sophisticated goods and

services that will not only be appreciated by adults but also by children and teenagers. The

researcher found out that people have a predisposition to choose more artificially made

products, which are less healthy and could cause various problems because of the ingredients

that are included in the products that will be established in the area where the bakery will be

established. Having said that, the bakery is committed to providing customers with goods that

are not only nutritious but also of high quality and convenient. Most importantly, it will create

more jobs in the area because it will need at least ten (10) new employees to run.

Review of Related Literature

A. Start a Small Bakery Business

Many people desire to own and operate their own small business so that they

can be their own boss. They also expect that their independence would allow them to

make money without being dependent on a full-time job. Some people fail in their

endeavors because they discover it is not as simple as they thought. Starting and

running a business requires significantly more effort than mere imagination.

Step 1: Determine the type of bakery business that you wish to operate. You may

choose to sell solely baked goods such as cakes, breads, muffins, donuts, etc. You may

opt to sell specialized cakes and baked items in combination. Some bakeries solely

produce specialty or occasion-specific cakes, such as those for weddings and birthdays.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
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Decide if you will only sell items "to go" or if you will also offer seating. Determine if hot

and cold beverages will be served alongside the baked items.

Step 2: Establish a business plan. Choose a name for your business. Choose

between a sole proprietorship, a partnership, or a corporation. Register your business

with the state and acquire an operating permit or license. Inquire with the Service Corps

of Retired Executives (SCORE) for advice and assistance on the establishment of a

small bakery. 

Step 3: Choose the location. The space should include baking ovens, baking racks,

shelves for baked items, storage, counters, tables, and seats. Consider restrooms in the

planning process. If you intend to operate a coffee shop-style bakery that serves food,

you will need to install public restrooms. If you will just be selling baked items to-go, you

may only need a small one for you and your crew. Consult your state or municipality for

requirements.

Step 4: Learn about your state and municipality's health regulations. Ensure that

your establishment will pass the inspection.

Step 5: Check the costs of the equipment you intend to employ. Some equipment

may cost several thousand dollars; therefore, compare pricing before making a

purchase. Bakery Solutions (Bakesol) specializes in bakery equipment, components,

and accessories. This store carries the majority of baking supplies required to run a

bakery. Visit bakesol.com for additional details.

Step 6: Obtain bank financing. Inquire about SBA's small business loan offerings

(Small Business Administration). You would need sufficient funds to cover the

acquisition of equipment, appliances, and furnishings, as well as the location leasing,

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________
refurbishment, start-up expenses, and up to six months of employee pay. Budget for

ingredients, utilities, insurance, and various other running expenses.

Step 7: Acquire experience while planning for the future. No business grows

overnight; you must plan and have a long-term objective. While preparing to launch your

own bakery, you can work for an established bakery. You can learn how to handle

baking equipment and how to serve customers, but don't expect them to provide you

with all the necessary information from the ground up. You may also enroll as a pastry

chef in a culinary school to master baking methods you were not taught at home.

Step 8: Hire workers. You may require waitstaff or food servers. Determine the

number of helpers required for baking, serving, and cashiering. You may require one or

two competent bakers, a person to operate the counter and register, and one or two

waiters.

Step 9: Prepare for business opening. Advertise your grand opening by placing

advertising in newspapers and distributing or mailing fliers. You can also hold a charity

event and distribute your labeled baked goods, along with business cards and fliers to

the participants.

B. Business Objectives for a bakery

Bakeries supply perishable comfort foods that are sweet and enticing, appealing

to a broad consumer base. Additionally, bakery products are highly perishable; many

consumers have come to expect bakeries to serve freshly baked goods daily, making it

difficult to meet demand without squandering inventory. A bakery's business goals

should include building a large and loyal customer base and coming up with a business

model that brings in enough money to cover costs, even if a lot of food is wasted.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
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Revenue: Through advertising and promotions, such as offering discounts on

specific items on different days of the week, a bakery can enhance its revenue. You can

increase sales by closely monitoring and adjusting to demand, paying attention to client

flow and sales patterns.

Income: Profit is the amount remaining after deducting tax-deductible expenses

from sales proceeds. In order to maximize profits, your bakery must limit waste without

running out of popular products. Due to the inconsistency of client demand, it is

practically impossible to completely avoid waste. However, keeping meticulous records

of which products sell the quickest enables you to anticipate certain sales tendencies.

Margin: Due to the high potential for waste created by the bread business model

of selling only the freshest products, bakeries should regularly monitor their profit

margins, or the proportion of sales that surpasses operating expenses.

 Reputation: Building a solid reputation is vital for a bakery to achieve its goals

of acquiring loyal customers and maintaining a steady sales volume. Build your

reputation by manufacturing high-quality goods and providing outstanding customer

service. Although it may be tempting to sell imperfect goods to reduce waste, these

sales may cost you more in the long term by tarnishing your bakery's reputation.

Develop a specialty and hone your skills until you reach mastery.

Related Studies

In the study of Ardian B. Comeda, Cameil A. Manlapaz, Cherrylyn T. Tapel, Den

Recca R. Mesias, Sophia E. Stella and Maria Cristina Tatel-Banot, LPT (March 2019),

they challenge themselves in their specialized expertise, the researchers conducted this

type of research. Establishment of a TRAVEL BAKERY in Quezon City is the topic of

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
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the feasibility study. This study focuses on the development of bread with a natural

vegetable flavor. In addition, the researchers desired to promote the new trends in the

sale of baked goods. In their investigation, the researchers picked the survey approach

since it is a simple way to obtain the respondents' perspectives on the subject. Using a

paper-and-pencil questionnaire, researchers collect specific data from a particular group

in this manner. The majority of respondents favor potato cheese corned beef as dinner

roll filling, according to the findings. In contrast, 90% of respondents appreciate the

aesthetic of dinner rolls. Regarding the standard selling price, the majority of

respondents selected Php10.00 to Php15.00. The researchers picked flyers and direct

contact with the target market for promotion purposes. Regarding the distributions of the

suggested fillings, sixty percent of respondents prefer potato cheese corned beef above

chili cheese tuna. The majority of respondents indicated that they are content with the

product's size. In terms of pricing, 80% of respondents selected Php10.00 to PhP15.00

as their usual retail price. In addition, the proponent discovered that enterprises of this

nature really exist. Similarly, according to Baliong et al(2016) .'s "Establishment of Pan

de Releno in Novaliches, Quezon City" study, a to-go store has a tremendous

advantage in terms of business promotion due to direct interaction with the target

market.

Another study by Arvin M. Navarro, Christian P. Lamayo, Marian A. Sotelo,

Adreaena R. Zapanta and Winston A. Santiago tiled “Feasibility Study on Wholesome

Bread” promotes healthy and baked goods and environment-friendly products. The

target of this feasibility study is to focus the interest of the buyers and costumers

through introducing various flavors that are extraordinary to their taste.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

Name of Establishment

The name of Establishment is Esong’s Bakeshop that will we established at Brgy.

Kansumandig, La Libertad, Negros Oriental.

Location of the Establishment

Brgy. Kandumandig is located in the upper portion of the municipality of La

Libertad. La Libertad, officially the Municipality of La Libertad, is a 3rd class municipality

in the province of Negros Oriental, Philippines. According to the 2020 census, it has a

population of 41,089 people.

Vision

To become one of the premiere bakeries in town.

Mission

Esong's Bakery is staffed by a team of motivated, skilled professionals that serve

bakery and pastries of excellent quality. Our mission is to serve all of our customers

with a product and experience that is unmatched. Our gifted pastry chefs employ only

the purest ingredients and cutting-edge techniques to create a genuinely outstanding

result. Constantly providing superior customer service, we hold client happiness as our

top priority. We are committed to giving everyone who works for us a respectful, happy,

and fair place to work.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

THE PROBLEM

Statement of the Problem

The objective of this study is to determine the future success of the bakery in

Kansumandig, La Libertad, Negros Oriental

Specifically, this study will seek to answer the following questions:

1. What are the strengths of the bakery?

2. What are the weaknesses of the bakery?

3. What are the opportunities of the bakery?

4. What are the threats of the bakery?

5. What are the marketing strategies used by the business to increase the volume

of sales?

Scope and Limitation of the Study

The "Esong's Bakery" case study is limited to Brgy. Kansumandig, La Libertad

and will be used for marketing, economic, socioeconomic, technological, and financial

aspects of the business. Residents of Brgy. Kansumandig, including the future owner

and employees, will be the respondents. The product will be sold directly to everyone in

Brgy. Kansumandig, and people who want to buy or get the product can place orders. 

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

Significance of the Study

Management/Owner: They will be able to think of new strategies to attract new

customers and maintain the loyalty of their old customers.

Staff: They will be able to find out how the owners run the bakery to make sure it

does well.

Customers: They will be knowledgeable about how the bakery performs and

produce quality food products.

Business Students: They will be knowledgeable about putting up a bakery at

their young age by realizing the techniques and methods that were incorporated by the

owner in order to run the business.

Future researchers: This will be their guideline to the topic that they will choose

and also, this could be used as a reference by other researchers whose topic is closely

related to this study.

Community: They will be able to be aware of how baking could help them in

their daily lives through utilizing environmental and healthy ingredients.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

METHODOLOGY

Research Design

This feasibility study will employ pure descriptive design and be quantitative in

nature. The data will be gathered through face-to-face interviews and a questionnaire

which will be administered to a sample of respondents.

Research Environment

Brgy. Kandumandig is located in the upper portion of the municipality of La

Libertad. La Libertad, officially the Municipality of La Libertad, is a 3rd class municipality

in the province of Negros Oriental, Philippines. According to the 2020 census, it has a

population of 41,089 people.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

Figure 1. Map of Brgy. Kansumandig, La Libertad, Negros Oriental

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

Research Respondents

The respondents to this study will be the people of Brgy. Kansumandig, including

the owner and employees who will make and purchase the future products of the

business.

Research Instruments

The researcher will use both face-to-face interviews and questionnaires to gather

the data needed. The questions will be based on the personal information of the

respondents as well as their perceptions and views on the future business to be

established in their area.

Research Procedure

After the approval of the research adviser, the admission letter will be

immediately sent to the respondents. All the data will be kept private and will be utilized

only for the success of this feasibility study.

Statistical Treatment of Data

The researcher will utilized simple ratio formula in computing the collected data in

her study.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

Definition of Terms

1. Bakery

- Bakery is a place where products such as bread, cake, and pastries are

baked or sold and also called bakeshop. The combination of flour, yeast,

water, salt, and sugar are known as the main ingredients of bread that can

help us to have a small bakery and to serve other people.

2. Income

- Profit is the amount remaining after deducting tax-deductible expenses from

sales proceeds. In order to maximize profits, your bakery must limit waste

without running out of popular products.

3. Kansumandig, La Libertad

- Brgy. Kandumandig is located in the upper portion of the municipality of La

Libertad. La Libertad, officially the Municipality of La Libertad, is a 3rd class

municipality in the province of Negros Oriental, Philippines. According to the

2020 census, it has a population of 41,089 people.

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
______________________________________________________________________

Organization of the Study

PROCESS
STRENGTHS

 QUALITY OF THE SERVICE

 ACCESSIBLE LOCATION
 AFFORDABLE PRICE
 VARIETY OF BREADS
INPUT  QUALITY BREADS
OUTPUT
1. RESPONDENTS OF THE WEAKNESSES
STUDY.
 POOR QUALITY OF SERVICE A SUCCESSFUL
 MANAGERS AND BAKERY SHOP
 INACCESSIBLE LOCATION
OWNERS
 UNAFFORDABLE PRICE
 EMPLOYEE
 LIMITED BREAD
 CUSTOMERS
 POOR QUALITY
2. PROFILE OF THE
RESPONDENTS THREATS
 ECONOMIC CRISIS
 AGE
 MANY COMPETITORS
 GENDER
 CALAMITIES
 UNRELIABLE SUPPLIES
 INCREASE IN RENTAL FEES
AND OTHER EXPENSES

MARKETING STRATEGY
 ADVERTISEMENT
 BUNDLE PROMOS
 DISCOUNTS
 FOODS SAMPLING
 EVENTS

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 SAINT FRANCIS COLEGE GUIHULNGAN NEGROS ORIENTAL INC
6214 Guihulngan City
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Figure 2. Organization of the Study

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