PAMANTASAN NG CABUYAO

Brgy. Banay-banay, Cabuyao City, Laguna

SENIOR HIGH SCHOOL

Hast Rope: A renewable and sustainable material for industrial uses.

A Business Plan Presented to the

Faculty of the Senior High School of

Pamantasan ng Cabuyao

In Partial Fulfillment of the Requirements

For Entrepreneurship for

Science, Technology, Engineering and Mathematics (STEM) Strand

By

Danoy, Alexandra Marie P.

Dela Cruz, Justine S.
Delfin, John Paul V.
Mariquit, Mark Andrew D.
Pelejo, John Michael
Tomalin, Rahnd Bertte J.

2nd Semester, SY 2021-2022

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Brgy. Banay-banay, Cabuyao City, Laguna

SENIOR HIGH SCHOOL

I. BUSINESS DESCRIPTION
A. Business Name:

Hast Rope: A renewable and

sustainable material for industrial uses.

B. Business Logo:

C. Business Concept and Business Model Canvas:

You can count on Hast Craft Shop for durable Manila ropes and yarns, as well as great

quality, fair prices, and prompt and courteous service. Abaca fibers, a plant that is a natural

resource in the Philippines, are used to make Manila ropes and yarns. When compared to other

natural rope materials, Manila rope is the best in the world. Hast Craft Shop takes advantage of

this chance to provide Manila rope to clients all over the world, matching their demands and

standards and delivering exactly what they want by immediately responding to their enquiries

and orders. We put our clients first by investing our time in building and maintaining positive

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relationships with them by achieving and exceeding our objectives, resulting in a mutually

beneficial commercial partnership between our firms.

Figure 1. Business Model Canvas

Customer Segment

● Students - The Millennials cannot be ignored. Local companies fit well into their

bubble of life because they spend most of their money on lodging, socializing,

and eating. And most importantly, they do school projects that relate to crafting.

You will reap the benefits if you can persuade pupils to believe in your brand.

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SENIOR HIGH SCHOOL

Students want to feel like they're a part of their community, so whether it's

discounts, rewards, or incentives, they'll be more likely to buy from you again.

They'll also organically spread positive word about your brand among the student

population about how well you meet their daily needs and requirements.

● Handicraft Manufacturers - We can also be a supplier of a high-quality product

to a handicraft manufacturer at a suitable price for your business. Because when a

business and a supplier collaborate effectively, they can lead innovation. As a

result, both sides can vastly improve their offerings, and the enterprise may

provide feedback to its suppliers on how to enhance service, and vice versa.

● Individuals - People are naturally individualistic, and they will go to any length

to protect their personal liberties. They are no longer loyal to a particular brand

that does not satisfy their essential conditions. Instead, people will simply swap

their loyalties to brands that are willing to suit their preferences and tastes.

Value Proposition

 Abaca is a very important crop for the Philippine economy. It is, in fact, critical to

the global economy and environmental protection. Because of their high

mechanical strength, durability, flexibility, and long fiber length, abaca fibers

have a lot of potential as a renewable bio-resource for a variety of industrial and

non-industrial applications. It can also be a source of additional money, allowing

them to meet their daily necessities.

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Revenue Streams

● Local Sales - A local business will provide you with a genuine product. A safe

bet that will provide you with quality and a unique take on something you've seen

from a well-known brand elsewhere. Sure, you'll pay a little more for it, but the

money will go back into the company to help it prosper in the future while also

keeping money moving in the local economy. Supporting local businesses

demonstrates that you care about the community in which you reside. You'll be

able to reinvest in your town and the people that live there as well. It will also

give your local economy an opportunity to flourish.

● Product Advertising - A means of communicating about a product's promotion

to persuade potential customers to buy the product. To market a product, it is

necessary to raise brand awareness or show significant distinctions between it and

competing goods.

● Collaborating - Partnerships with carefully selected suppliers can help

manufacturers cut costs, improve quality, and speed up the development of new

products. One of the ways manufacturing organizations can increase their

performance is through effective supplier management.

Channels

● Telephone - A phone call is an excellent technique to discuss critical issues and

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receive prompt responses. A phone call is more convenient if you don't need

visuals to express your message. You can even leave an audio message without

being limited to a particular number of text characters if the person you contacted

is unavailable.

● Social Media - Platforms like Facebook, Instagram, and Twitter are obvious

places to contact new and highly targeted potential clients, with over half of the

world's population using social media. Every time your fans and followers check

in to social media, you can communicate with them. Keep your social postings

amusing and educational, and your fans will be happy to see fresh content in their

feeds, keeping you top of mind so you're the first place they think of when they're

ready to buy.

● Flyer - For marketing it can have a tremendous impact on a tiny expenditure. You

can save money on design by doing it yourself, and the costs of printing and

distribution are also low. And it can be used to promote a new product, announce

a sale or a special event, among other things. People may use their cellphones to

rapidly access more information and make purchasing decisions by adding QR

codes to fliers.

Customer Relationship

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● 24/7 Customer Support - Investing in 24-hour customer service can pay off in

the long run for business. When businesses use digital channels like live chat and

chatbots to engage their customers 24/7 a day they are providing customer

service. Customers are ecstatic when they receive assistance when they need it.

This is how customers respond to customer service. Customer’s dislike being kept

waiting and want rapid responses. Customers will get their issues resolved with

proactive customer care assistance and clarity if a support team is available 24/7.

When clients are satisfied with the level of service they receive, they are more

likely to stay loyal to the company.

● Special Offers - Consumers are always looking for ways to save money, and they

prefer to purchase at stores with the best deals. One strategy to attract more

customers is to provide discounts on your products or services. Discounts are

beneficial not only to your customers, but they can also be beneficial to your

company.

Key Partners

● Farm for Banana Tree

● Hardware for tools

● Paper Bag Supplier for the packaging

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Key Activities

● Proper Product Distribution - Select your distribution partners carefully to

ensure that your channels of distribution are free of the pitfalls that can arise when

you work with substandard distribution partners.

● Addressing Customer’s Concern - In your communications, be completely

open, honest, and humble. Update all information, including local listings, email,

and the online. For customer support teams, unscripted what is typically

inadequately scripted. Take advantage of the chance to have a one-on-one chat

with them to solve their problem before it becomes a one-on-one situation. And

make long-term adjustments that will last beyond the crisis.

Key Resources

● Intellectual - We need a person who engages in critical thought, study, and

contemplation about society's reality and suggests answers to society's normative

problems is referred to as an intellectual.

● Social Media Manager - Who oversees creating, managing, and monitoring

content across all social media channels for a firm. They contribute to the brand's

voice by making social posts on platforms such as Facebook, Twitter, and

Instagram, as well as responding to comments and organizing campaigns.

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Cost Structure

● Packaging - Paper bags also provide several environmental advantages for those

who use them. They may be cared for and reused again and over again. They are

both biodegradable and recyclable. Paper bags are created from a sustainable

natural resource that may be reused and delivered to a paper mill to be recycled

into new paper. In fact, it takes less energy to recycle paper bags than it does to

recycle plastic bags. Paper bags are also biodegradable, posing less of a hazard to

wildlife and the environment.

D. Business Goals:

Vision:

To produce the finest quality goods and services that consistently satisfy our

customer's expectations and our peers’ abilities while continuing to improve our

production system.

Mission:

The Hast Craft Shop mission is to be one of the world's leading abaca fiber rope

producers and suppliers. We want to expand our business with the same honesty and

integrity that we employ to create a product that is both long-lasting and beneficial to

everyone.

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Objectives:

➔ To increase sales

➔ To create an e-commerce solution that will not only boost profits but also improve

operations

➔ To make sure the quality of our products and services matches or exceeds the

industry standard

E. Product Offering/s and Description:

Our company sells abaca fiber rope, which may be used in a variety of

applications. Hast Craft Shop assures you that our product has a tight grip, a

secure knot that won't slip, low elongation to prevent straining, and higher tensile

strength. Abaca fiber, which is closely related to banana and is one of the

strongest natural plant fibers, is the most used fiber in the Philippines. Abaca fiber

is one of the best materials for handicraft products because of its long fiber,

toughness, and flexibility. Saltwater damage is not a problem for abaca fiber rope.

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SENIOR HIGH SCHOOL

Figure 2. Product Offering

II. MARKET ANALYSIS

A. Market Characteristics

Through market segmentation features, this seeks to determine the target

purchasers. The following sections demonstrate the target buyer’s specific profile:

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SENIOR HIGH SCHOOL

DEMOGRAPHICS BEHAVIORAL

● Age. 8 years old and above

● Gender. Male and female

● Location. Cabuyao City of Laguna

PSYCHOGRAPHIC

● Personality Creative

● Interest Crafting

● Habits Impulsive Buyer

BEHAVIORAL

● Purchase Occasion Anytime they want and need

● Benefits sought Quality

B. Target Customer Profile

The target customers for our product are men and women, ages 15 and above.

Our product's cost, popularity, and durability are all key priorities for us. We offer this

type of beneficial product at an inexpensive price. It will also become more popular in a

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short amount of time by creating contacts with various entrepreneurs. We make certain

that our product is long-lasting so that people can benefit from it.

III. COMPETITOR ASSESSMENT

We conducted a survey with our product and a competitor’s product, and below are the

responses from 30 respondents from different barangays in Cabuyao, Laguna. Both Google

forms were utilized to assure the safety of both respondents and entrepreneurs. The texture,

quality, affordability, durability, effectivity, utility, appearance, quantity, packaging, and the

product itself from the entrepreneur's business are all contrasted in this comparison. As you can

see, our product does well in terms of affordability, durability, utility, quantity, and packaging.

Some of the reviews were great because it is made of cost-effective material, stronger than other

strings and can be put to good use; innovative and very effective, and a good product yet

affordable. We also asked for their opinion on what we needed to improve. Most of them say the

packaging needs to be changed and we should add other options like colors, sizes, and quantities.

Parents looking for ways to divert their children's attention away from their phones and teach

them how to craft will be our product opportunity. Children with short attention spans and a

fondness for boredom will pose a threat.

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Figure 3. Strategy Canvas

IV. MARKETING PLAN

A. Products and Services

Our Shop offers abaca fiber rope, which can be used for arts, school projects,

home, etc. Hast Craft Shop guarantees you that our product has a firm grip, that the knot

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SENIOR HIGH SCHOOL

holds well and does not slide, that it has minimal elongation, that it limits stretching, and

that it has a higher tensile strength. It will be sold for PHP 25 per roll.

B. Pricing

Items/Fees Price Selling and Administrative Cost Price

Banana Tree Stem 250 Utilities 200

Paper Bag 120 Vehicles 300

Sticker Logo 120

Glue 40

Markup - 20% Number of Units expected to sell - 15

Pricing Formula: Total Production Cost + Selling and Administrative Cost +

Markup/Number of units expected to sell

Pricing Formula: 530 + 500 + 20% / 10 = 20.6

Price per Unit: (Cost per Unit + Markup Percentage) + Cost per Unit

Price per Unit: (20.6 x 20%) + 20.6 = 24.72

Selling Price: PHP 30 per roll

C. Distribution

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SENIOR HIGH SCHOOL

Due to a lack of resources and funding, this product will be distributed through a

Selective Strategy. The entrepreneurs will sell their product to their target customers for

several areas across Cabuyao, Laguna. The entrepreneurs personally invest in the goods,

resources, and equipment employed in this product. Furthermore, this product will be

sold exclusively through direct sales. The product will be distributed directly to

customers by the entrepreneurs without the need of any intermediaries. It could be in the

form of personal meetings or delivery.

D. Promotion

To reach the customer, online media channels will be used to promote the

product. People now are living in a new era. All the resources are in the palm of our

hands, begging to be used. Facebook and Instagram give you access to a massive

audience, and we can convince them through this to join our mini contest for coupons and

price sales.

V. OPERATING PLAN

A. Ownership and Management

Forms of Ownership

Partnership - This business is owned by six entrepreneurs. As a result, each entrepreneur

contributes to the company in every way possible, including real estate, money, skills, and labor.

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In exchange, each entrepreneur shares in the earnings and losses of the company. And, because

owners have unlimited responsibility, they may be forced to cover the obligations of other, less

financially stable partners. as well as potential relationship problems.

Organizational and Management

In organizations, the management function is responsible for achieving effective

performance in reaching the goals and objectives when it comes to carrying out the tasks that

keep the company competitive and profitable. The product was recommended by Mr. Mark

Andrew D. Mariquit. He proposed the use of environmentally friendly rope. Ms. Alexandra

Marie P. Danoy, Mr. John Michael Pelejo, Mr. Justine S. Dela Cruz, Mr. John Paul V. Delfin,

and Mr. Rahnd Bertte J. Tomalin aided him in selecting appropriate things and completing

studies on their applications and benefits. They oversee the market research, marketing strategy,

and operational plans that help their business flourish.

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Roles and Responsibilities

1. Business Manager

Ms. Danoy is expected to raise the company's efficiency and earnings

while overseeing the company's overall operations and output. Managing workers,

controlling the budget, implementing marketing tactics, and many other aspects of

the firm are all part of the general manager's responsibilities.

2. Assistant Manager

As for Mr. Mariquit, as assistant manager, tasks, and responsibilities vary

depending on the company, but they typically involve assisting the store manager,

hiring, and training personnel, and designing and managing shift schedules.

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3. Finance Manager

Mr Pelejo, as a financial manager, will oversee the company's finances,

undertake data analysis, and advise senior management on profit-maximizing

strategies. They frequently operate as part of a team, contributing to the making of

important organizational choices, a task that necessitates analytical ability and

great communication skills.

4. Production Team

The responsibility of Mr. Tomalin and Mr. Dela Cruz is to ensure that the

process of converting raw materials into finished goods is carried out efficiently

and accurately. To aid this process, the department fulfills five functions. The

primary role is to define quality and quantity criteria for the products being

manufactured.

5. Store Clerk

Customers looking through inventory or checking out things will be

assisted by Mr. Delfin at the store. And is responsible for greeting clients,

addressing product enquiries, and processing sales using a cash register. Cleaning

the store, cashing out things, and stocking the storage are all possible jobs for a

retail clerk. To succeed as a retail clerk, you must have the stamina to stand for

most of the day while having a cheerful disposition.

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B. Resources and Production

Materials and Equipment

To create an abaca rope, you'll need the following items:

● Abacá (Musa textilis)

● Blade or DIY Shredder

● Knife

These are the ingredients and materials needed for making abaca fiber rope, and the

supplies indicated above can be acquired locally. A banana tree stem can be purchased for 200–

300 PHP. And for the DIY shredder, you can make it with whatever you have on hand

 DIY Shredder – We made a shredder using a wood and nails to extract the fibers.

 Knife – The current knife that is used for production is used for free, but the

current price for a knife is around ₱350.00. The knife was used to cut the stem to

your preferred size.

Production

The steps for producing an abaca fiber rope are as follows:

1. Fiber Extraction - The fibers are extracted from the entire bunch at once by

cutting the banana tree stem to the desired length.

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2. Drying - After washing, the fiber should be dried thoroughly in a bamboo frame

or by hanging it in any way that will keep it away from mud and dust. Fibers

should not be spread on the ground to dry.

3. Gather your threads - Start with roughly six pieces of thread for a thinner rope.

4. Tie your threads together - Arrange your threads so that they are all in the same

direction, then tie a knot at one end to keep them together. Then, separate the

bunch into two portions that are evenly spaced.

5. Twist the two sections - Take one part in each hand and begin twisting all the

threads in the same direction tightly and evenly.

6. Merge in more threads to build a longer rope - Splicing in more lengths of

fiber to generate a longer rope is notably easy for ropes composed of plant fibers

or grasses.

7. Tie the rope off - When you've completed twisting your strands together and

have a long enough rope, make another knot at the end to keep it from unraveling.

8. Trim the excess - Trim any extra that sticks out from the rope, especially where

strands happened, especially with grasses and plant fibers.

Inventory

The Hast Rope craft shop has decided to do one inventory check each day, which will

take place every day. This is to verify that the resources are sufficient for a full day of work. This

daily inventory checking will aid the Hast Rope craft shop in keeping track of the materials used

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in the process daily, while the weekly inventory checking will be utilized to thoroughly inspect

the materials for quality and sufficiency.

Assets

The table below shows a list of assets used by Hast Craft Shop in the manufacturing and

sale of abaca fiber rope.

List of Assets Units/Quantity/Area TOTAL Cost (As of 2022 Rates)

Inventory

1 Banana Tree Stem 5 ₱ 250.00

2 Wood Plank 2 ₱ 0.00
3 Paper Bag 20 ₱ 120.00.
4 Logo Sticker 24 ₱ 120.00
5 Nail 20 ₱ 0.00
Glue 1 ₱ 40.00
TOTAL ₱ 530.00

Furniture
1 Table Set 2 ₱ 5,000.00
2 Racks 5 ₱ 2,000.00
TOTAL ₱ 7,000.00

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C. Legal Issues

● BIR (Bureau of Internal Revenue) - Businesses must be registered with the BIR

to assure tax compliance and to be allowed to begin operations in the first place.

It's something that all entrepreneurs and investors who want to start a business in

the Philippines must do. It doesn't matter if you want to start a business as a sole

proprietor or if you want to form a partnership or a corporation with other people;

you must register your business with the BIR if you want to operate legally.

● DTI (Department of Trade and Industry Philippines) - This is to ensure that

no other company or organization shares your name. For sole ownership

businesses, DTI registration is the initial step to ensure that you can continue with

your business without any legal issues.

● Zoning Clearance - The entrepreneurs thoroughly inspect the store's location and

will engage with local officials to appropriately establish the company' actual

store. This is to ensure that the physical store is in the correct and legal zone.

● Non-disclosure Agreement - These are legal agreements that make it illegal for

someone to share information that is considered confidential. The agreement

specifies what constitutes private information, which includes, but is not limited

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to, proprietary information, trade secrets, and any other data, such as personal

information or event

VI. FINANCIAL PLAN

A. Capital Structure

Debt;
36%

Equity;
64%

The capital structure depicts how rope products are financed. It is separated into two

categories: debt and equity. To enhance production and human resources, the corporation

borrowed 36% of its assets. And equity, which is the total value of the company's shares,

has a total of 64%. Because of the lower risk of bankruptcy, our company prefers to use

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equity rather than debt. It will enable our company to keep more of its earnings and have

greater purchasing flexibility. It also has a high profit margin, which can help us grow

our business.

Below is the formula we used:

 Funds: Owner’s Funds + Burrowed Funds

 Owner’s Funds:

Equity Share Capital + Preference Share Capital + Reserves and Surpluses +

Retained Earnings = EQUITY

35, 000 + 18,000 + 9,500+ 4,500 =67, 000

 Burrowed Funds:

Loans + Debentures + Public Deposits = DEBT

15, 000 + 3, 000 + 20, 000 = 38, 000

67, 000 ÷ 105, 000 = 0.64 = 64%

38, 000 ÷ 105, 500 = 0.36 = 36%

B. Financial Offering: Returns and Benefits to Investors, Financiers, and Business

Partners

Financial Offering: The financial structure of a business relates to how its assets are financed.

The report goes into depth on the cash flow. This will aid in investor recruitment and motivate

financial stockholders to make appropriate financial payouts. At Hast Rope Company, Inc., we

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ensure that our products are manufactured at a low cost in order to persuade consumers and

investors to purchase them at a lower price than the competition. As the company grows, its

name will become more well-known, making it more easily identifiable to consumers and other

business partners. The most critical issue is ensuring sustainability and viability. Thus, at Hast

Rope Company, Inc., we will ensure that our business is viable in the sense that it generates a

profit sufficient to cover the business owner's investment while also meeting its commitments to

business creditors.

Cash Flow:

Cash Flow Operating Activities

Debit Credit

Cash receipt from sales of

goods
Cash paid for purchase of
inventories
Cash paid for salaries expenses

Cash paid for utilities expenses

Net Cash Flow from

Operating Activities

Cash Flow from Investing Activities

Equipment and Materials

Packaging

Net Cash Flow from Investing

Activities

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Liabilities

Net Cash Flow from Financing

Activities
Net Change in Cash

Cash and Cash Equivalents at

Beginning
Cash and Cash Equivalent at
End

A cash flow presented above in operating activities indicates that the company has a

significant amount of excess cash to distribute to owners and pay debt, with a portion of that

being used to pay debt. On the other hand, negative cash flow from investing activities indicates

that the company used the funds to invest in rope components, improved designs, and employee

training to ensure the company's quality and all that it stands for. Finally, a positive cash flow

from financing activities indicates that the company has sufficient cash on hand to issue market

volume and shares, as well as repay loans and distribute dividends to shareholders.

VII. EXECUTIVE SUMMARY

Problem Statement

Hast Rope conducted a survey in Cabuyao City, Laguna, Philippines, last week. 30

people from different barangays have been surveyed by our research team, which uses online

social media platforms to collect the information.

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After analyzing the responses from the participants, the survey found that one factor

stood out the most from the feedback. 50 percent of respondents, or 15 of 30 people, said that the

size of the Hast Rope needed to be improved, and this one feedback account for the size.

Among the 15 suggestions for improvement, half of the respondents said that the size

of the product should be improved. To ensure that Hast Rope is of the highest quality and to

respond to the valuable feedback of customers, Hast Rope is currently being tested before it is

released to the public.

Proposed Solution

With the recent concluded survey, Hast craft shop have conducted several experiments in

response to the feedback of the respondents. The goal of the experiment is to be able to serve the

needed improvement of the respondents without using any chemicals. After several attempts,

Hast rope have succeeded to overcome the two factors that standout the most from the survey.

Here are the few changes and step taken to fulfill the need of the customers.

 Size Improvement

Originally, we expanded the best rope to expand our product and the size we will

add to the abaca fiber for more grown and raised by the production team

The production team also added more abaca fiber.

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Value

Hast Craft Shop is hoping to meet the needs of its customers after making changes to the

size of Hast Rope. The suggestion really helped the quality as it gets better. The changes could

make the Hast Rope one of the materials used in the arts and crafts field, which could make the

product make more money each month. When they want to make weird art, this can also make a

big difference. If this happens, the annual profit of the product can go up by 5% to 5% of the

expected income.

The risk of making the product better also comes with it. One of the things that could change the

price is one of the things that could affect the product. Artificial dyes would be much cheaper

than natural dyes, but we don't use chemicals when we make or improve things. The type of

abaca fiber used for Hast Rope can make the price of the product a little different. A big thing

about our product is how much it costs. It's less expensive than some other art and craft

materials.

Final Thoughts and Next Steps

The quality of the product will improve significantly if the product's size is increased.

Because of setbacks, the team may have triumphed over their opponents When it comes to arts

and crafts, a new variation size for Hast Rope can have a significant impact on the product's

success. As a result of the pressing need for a customer experience survey, Hast Craft Shop is

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preparing to conduct one on a regular or weekly basis on social media platforms to gather data

that will be used to improve Hast Rope in the long run.

Since it advocates for cleaner production of materials, Hast Craft Shop plans to create

and expand more environmentally friendly products. Especially when it comes to common

materials. Hast Craft Shop also plans to create and expand more product that are environmentally

friendly, as it advocates for the cleaner production of materials. Especially for the materials that

are common to use.

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