CHAPTER 1

PROJECT SUMMARY

Introduction

The food industry plays an important role in developing countries,

meeting the food demands of urban dwellers. Due to rapid urbanization,

businesses in line with food industry seize to develop. Filipinos love to eat.

This love for food and eating is the major reason why the food industry has

flourished well in the Philippines and why a lot of restaurants and fast

foods can be seen scattered all over the country.

For some people, food is just a necessity to satisfy basic needs. But

for others, food is more than just a basic necessity, but a pleasure that

plays a significant role in their understanding of happiness.

Since filipinos have always been fond of food, dumplings have made

its way to filipinos' heart and is hard to resist. The team then thought of

making a product that has already established an appeal to filipinos, and

that is siomai. The team created an innovative product out from the look

of siomai and would give it a different filling, a new taste. A product that

is wholesome and beneficial, that is Fried Mashweeto.

Fried Mashweeto is a contraction of 'fried mashed sweet potato',

gives off a golden-brown color and mildly sweet taste. Its main ingredient

is known for being healthy and tasty.

1 | Lami Deré Hub

 As the product is still yet to be introduced, the team would most

likely give it all for the acceptance of the product until it reaches the period

of growth. The team aims to be distinguished for the delight Fried

Mashweeto would give.

2 | Lami Deré Hub

Lami Deré Hub

Choosing and constructing a business name is one of the important

factors in running a business. It needs remarkable ideas as well as a

powerful impact that directly catches the attention of the costumers. This

also help the researchers to be easily distinguished by the potential buyers

or customers in the business world.

To make this happen, the researchers’ want to choose a name that

will last and if possible, will embody both the researchers’ value and

company’s distinguishing characteristics.

The researchers’ named its company ‘Lami Deré Hub’ since lami

deré means ‘It’s delicious here’ and hub means ‘center of an activity’. In

total, it means ‘we are the center of delicious food’. It was come up by the

researchers with a couple of ideas that led to one thing. The compelling

company came up with a product that aims to exceed the satisfaction of

their customers. That is why they want the company name to be

memorable and leaves a mark to their consumers.

3 | Lami Deré Hub

Business Logo

Figure 1.1: The Logo

Filipinos tend to do hard work when they want something to achieve.

They make their way through hardships so they can be successful and not

only that, Filipinos’ do their jobs as a family. The culture of Filipinos had

been passed through generations, wherein they consider everyone as

family regardless who they are, and what they believe in. Chinese men

lived in the Philippines which led to a great colonization, filipinos inherited

their beliefs and norms that dug deep within the country. In Chinatown, a

place where Chinese people lived as well as selling their local goods to the

community. There, Filipinos’ got attached to their attributes which caused

them to boom in the food industry.

The researchers came up to this idea, through the Chinoy culture.

The researchers decided to make a logo that shows the inherited culture

4 | Lami Deré Hub

of Filipinos and Chinese. It is said that circular shapes and objects

represent wealth and prosperity, so the team decided to make it as it is.

The logo also features the company’s name ‘Lami Deré Hub’ which means,

‘we are the center of delicious foods’. It also features the company’s tagline

‘Kung sweet ka? Mash-sweet-toh!’ which also indicates the company’s

flagship product, the Fried Mashweeto. The Chef’s hat above represents

the willingness to take risk of the business owner and doing whatever

needs to be done. The buntings represent Partying which also represents

happiness. And the smiling siomai centerpiece that emits joyful aura to

the business owner and to their costumer. Lastly, the golden-brown

background which is basically a hint of fried mashweeto's color but

signifies expression of the vital energy of the sun that brings light and life

to all beings and a warm color that stimulates the appetite.

5 | Lami Deré Hub

 Mission

To serve and provide a snack that is satisfactory, wholesome

and fulfilling with affordable price and gain profitability with the product’s

distinctness.

Vision

Lami Deré Hub will thrive, establish its name and become a

business that would represent preeminence in the vicinity of PHINMA-COC

Puerto Campus.

Values

Lami Deré Hub embodied these values:

• Fair-mindedness - treat costumers equally, fairly and

impartially.

• Fun - enjoyment and fulfillment in one.

• Client-focus – razor-sharp focus on the costumers, essential

way to succeed.

• Integrity – honesty and respect for individuals.

• Professionalism – to be professional in our actions.

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Objectives

In order for the business to operate efficiently and effectively, it has

its own objectives. Lami Deré Hub aims to provide good service towards

the customers. The business targets at least 50% profit gain in order to

recoup their capital. The business also aims to prolong the best quality

product to the customers, targets to recoup capital and gain the expected

profit at the end of the month.

7 | Lami Deré Hub

Descriptive Definition of the Project

Lami Deré Hub Company is not as big compared to other companies

but even if it’s a small business, they will do everything just to satisfy the

needs and wants of their costumer.

Now, talking about the costumers’ different preferences and level of

satisfaction, the company wants to supply that gap by planning the

techniques or tactics to achieve their desired goals. In this kind of food

industry, giving them a good service and warm welcome is a pleasure.

Making them appreciate the food is what the company really dreamed of.

The company offers Fried Mashweeto as their product with different

kind flavors. The company also analyzes their competitors for them to

know if the other companies offer similar products, thus, they will find a

way to make their product special.

Establishing an own company is not that easy. This will affect the

performances of grade 12- ABM students since they are handling business

on their own so they could be more responsible on their duty. This project

would help mold ABM students, may it be on their well-being or their way

of communicating, especially that they would have to associate their selves

on different kinds of customers. This project would also serve as a practice

for future entrepreneurs on managing a business.

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Definition of Terms

The following are the

 Fried Mashweeto- a siomai-like product that is made of mashed

sweet potato

 Sweet Potato- root of a tropical plant that is eaten as vegetable and

has beige yellow, orange, red or purple flesh

 Dwellers- those who lived in a particular place

 Urbanization- the process by which more and more people begin

living and working in central areas

 Necessity- something that you need

 Siomai- a type of dumpling

 Dumpling- a small lump of dough that is boiled or steamed

 Filling- a food mixture that is used to fill something

 Wholesome- good for your health

 Thrive- to grow or develop successfully

 Flagship Product- major product of a company

 Preeminence- the state of being superior and distinguished

 Pleasure- feeling of happiness and satisfaction

 Vicinity- the area around a particular place

 Recoup- to get back money invested

 Partnership – a form of business that is owned by partners

 Productivity – completion of work in production

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  Production – the process of making a product

 Availability -the state of being available

 Maneuver – the act of managing or working on something in a

skillful way

 Financial Statement – a formal report showing the financial state

of the business

 Humdrum – lacking in variety; ordinary

10 | Lami Deré Hub

 CHAPTER 2

MARKETING PLAN

This chapter includes the rationale of the study, as well as the target

market, Demand and Market Acceptability Analysis, SWOT Analysis,

Competitors Analysis, Industry Analysis, Marketing Objectives, Marketing

Mix and Marketing Budget.

Rationale

Lami Deré Hub's product is Fried Mashweeto, a contraction of Fried

Mashed Sweet Potato. A product that offers a sweet and salty mix of taste,

but sweetness remains dominant. It is covered in soft molo wrapper to

have the same look as siomai. Since siomai businesses are quite relevant

right now, thriving and people are so into it. Lami Deré Hub has come up

with an idea of making siomai-like product but with a healthy filling this

time. Fried Mashweeto is very beneficial as its main ingredient offers the

nutrients that everybody needs; can get all the vitamin A needed in the

day 4 times, an excellent source for vitamin B's and C, and full of

antioxidants and will help keep people feeling full and satisfied. Sweet

potatoes are known for being healthy and missing out on its benefits would

be a loss.

In operating the company and introducing the product, the team

wants to fulfill their vision of being the most marketable and leading

11 | Lami Deré Hub

business in the food industry. By promoting the taste that only Fried

Mashweeto could offer, the team anticipates for a good feedback.

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Target Market

Lami Deré Hub’s Target Market for Fried Mashsweeto are the

students in PHINMA-Cagayan de Oro College Puerto Campus from Senior

High School both grade 11 and grade 12, College Students, and Faculty

staff. For they are near the location of the company, the team considered

them as the target market for the product. The product had been priced at

a reasonable amount, so the consumer can buy it without hesitance.

Figure 2.1 Illustration of the target market

SHS
Students

College School
Students Faculties &
Staffs

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Figure 2.2 The place where the team will sell their product.

Source: Google Map

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Demand and Market Acceptability Analysis

The following are the results and the interpretation of the demand

and Market Acceptability by the team in PHINMA Cagayan de Oro College-

Puerto Campus.

Figure 2.3 Percentage Distribution of Respondents' Daily Allowance

6%

14%

10-21php
21-30
9%
31-40
41 and above

71%

The graph indicates the daily allowance of the respondents in

PHINMA-Cagayan de Oro College Puerto Campus. Out of 100 respondents,

71% or 71 respondents said that Php41 and above are their daily

allowance, 14% or 14 respondents have Php21-30, 9% or 9 respondents

have Php31-40, and 6% or 6 respondents have Php10-21 daily allowance.

The result indicates that more than half of the respondents in Phinma-

COC Puerto Campus have 41php and above daily allowance, which could

mean that they have enough money to spend for their snacks.

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Figure 2.4 Percentage Distribution of Respondents' Alloted Budget for

Snacks

18%

30%

5-15php
8% 16-30

31-45

46 and above

44%

The graph indicates the alloted budget for snacks of respondents in

PHINMA-Cagayan de Oro College Puerto Campus. Out of 100 respondents,

44% or 44 respondents' budget for snack ranges to Php16-30, 30% or 30

respondents’ range to Php5-15, 18% or 18 respondents ranges to Php46

and above, and 8% or 8 respondents ranges to Php31-45 budget for

snacks. The result shows that most of the respondents spend in the

amount range to Php16-30. This indicates that the respondents will buy a

product in an average amount of price.

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Figure 2.5 Percentage Distribution of Respondents' Usual Time to

Buy Snacks

19%

8-10am

10=12pm
8% 46%
12-2pm

2-4pm

19%

The graph indicates the usual time in buying of respondents in

PHINMA-Cagayan de Oro College Puerto Campus. Out of 100 respondents,

46% or 46 respondents said that they usually buy at 8-10 am, 27% or 27

respondents buy at 2-4 pm, 19% or 19 respondents buy at 10-12 pm, and

8% or 8 respondents usually buy at 12-2 pm. Most of the respondents buy

at 8-10 am which indicates that they are most active on buying at this

time. The researchers will use this as a basis of when to increment

production.

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Figure 2.6 Percentage Distribution of How Frequently Respondents

Buy Snacks

2%

5%

Once in a day
Twise
38% Thrice
55%
Buy more than four

The graph indicates the ofteness in buying of respondents in

PHINMA-Cagayan de Oro College Puerto Campus. Out of 100 respondents,

55% or 55 respondents said that they buy snacks once in a day, 38% or

38 respondents buy twice, 5% or 5 respondents buy thrice, and 2% or 2

respondents buy more than four times a day. This indicates that half of

the respondents are not fond of frequent buying. Therefore, the proponents

would offer a price discounting strategy to slash price in order to make up

the result of frequent buying. One of the factors why most of the

respondents don’t buy as much is because of their budget for snacks as

shown in Figure 2.4.

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Figure 2.7 Percentage Distribution of Respondents who eat Sweet

Potato

9%

YES

NO

91%

The graph indicates the number of respondents who eat sweet

potato in PHINMA-Cagayan de Oro College Puerto Campus. Out of 100

respondents, 91% or 91 respondents said "YES", they eat sweet potato and

9% or 9 respondents said "NO", they don't eat sweet potato. Therefore, the

proponents conclude that most of the respondents eat sweet potato, and

this is a good indication for the proponents since their main ingredient is

sweet potato.

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Figure 2.8 Percentage Distribution of other Fillings preferred by the

Respondents

1%

26%

37% Ube

Cassava

Potato

Lutya

36%

The graph indicates the respondents' preferred filling aside from

sweet potato in PHINMA-Cagayan de Oro College Puerto Campus. Out of

100 respondents 37% or 37 respondents said that they prefer Ube as a

filling, 36% or 36 respondents prefer Cassava, 26% or 26 respondents

prefer Potato and 1% or 1 respondent preferred Lutya. From the results,

most of the respondents preferred Ube and there is a 1% gap between Ube

and Cassava. The proponents will use this information for their future

product improvement. They will produce variety of flavors aside from sweet

potato.

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Figure 2.9 Percentage Distribution of how much Respondents are

willing to pay for Fried Mashweeto

4%
4%
5%

15php

16php

17php

4php

87%

The graph indicates how much of the respondents are willing to pay

for Fried Mashweeto in PHINMA-Cagayan de Oro College Puerto Campus.

Out of 100 respondents, 87% or 87 respondents are willing to pay Fried

Masheweeto for Php15, 5% or 5 respondents would pay Php16, 4% or 4

respondents said they would pay at Php 17 and another 4% or 4

respondents at Php18. The results show that most of the respondents are

willing to pay at Php15. This is a good indication as the proponents original

price was Php15.00 considering the mark-up, and with the results, it

coincides with the original pricing.

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Figure 2.10 Percentage Distribution of the Respondents' preferred

Sauces

2%

7%

12%
Condence Milk
41%
Spicy Ketchup

Milked tablea

plain ketchup

For the suggestion

38%

The graph indicates the respondents' preferred sauces to pair with

Fried Mashweeto in PHINMA-Cagayan de Oro College. Out of 100

respondents, 41% or 41 respondents prefer condense milk to have as a

sauce, 38% or 38 respondents preferred spicy ketchup, 12% or 12

respondents preferred melted tablea, 7% or 7 respondents preferred plain

ketchup and 2% for suggestions. Two respondents suggested honey and

melted cheese. The researcher will use this data on deciding what to pair

with Fried Mashweeto.

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Figure 2.11 Percentage Distribution of the Respondents who like

Fried Mashweeto with Drinks

8%

YES

NO

92%

The graph indicates how much of the respondents prefer Fried

Mashweeto with drinks in PHINMA-Cagayan de Oro College Puerto

Campus. Out of 100 respondents, 92% or 92 respondents said 'Yes', they

would like Fried Mashweeto with drinks and 8% or 8 respondents said 'no',

they don't like Fried Mashweeto with drinks. The result indicates that most

respondents prefer Fried Mashweeto with drinks. Therefore, the

proponents will use this data to offer a combo meal in the foreseeable

future.

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Figure 2.12 Percentage Distribution of the Respondents' preferred

Flavor of Drink

1%

1% 3%
5%
4% Pieapple
Orange
33%
8% Mango
None
Suggestion
apple
16%
Coke
choco
Grapes

28%

The graph indicates what preferred flavor of drinks the respondents

of PHINMA-Cagayan de Oro College Puerto Campus want to have. Out of

100 respondents, 33% or 33 respondents said they prefer pineapple flavor,

28% or 28 respondents prefer orange, 16% or 16 respondents prefer four

seasons, 11% or 11 respondents prefer mango, and 8% or 8 respondents

are none. The 4% are suggestions, 1 respondent suggested apple, 1

respondent suggested coke, 1 respondent suggested grapes and other 1

respondent suggested choco. The result indicates that most of the

respondents prefer pineapple as the flavor of drink.

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SWOT Analysis

The team identified the strength, weakness, opportunities and the

threats of the Lami Deré Hub Company. These are the following:

Figure 2.13 Illustration of SWOT Analysis

1.Uniqueness of 1. Lack of Capital 1. Brand 1. Competitors

the Product. Recognition
2. Natural
2. Superior 2. Lack of 2. Product
Product Quality
Calamity
Reputation Development
3. Availability of
Raw Materials

For the business to be successful, the team identified the SWOT of

the company. It matters because it will help the business to develop

strategies for their products to sell, not only this, but the team will also

know how to maneuver themselves for their product to excel among other

competitors.

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Strengths

First strength is the product uniqueness, where in it speaks

distinction among the rest. The product is recreation of siomai but way

tastier and even healthier. The superior product quality is also their

strength because the business did not only focus on the appearance but

also with the production and the taste of the product. Also, the availability

of raw materials because Fried Mashweeto’s main ingredient is sweet

potato and the purchase of raw materials can be easily accessed in the

market.

Weaknesses

The team found out that these weaknesses would likely less the

production; Lack of Capital and Lack of Reputation. First, the business

will start on scratch and because of lack in capital, it would be hard for

them to put up the business. Second, since they are new to the market,

they will most likely build brand awareness as they are introducing the

product.

Opportunities

The team also identified the opportunities that would help exploit

to their advantages. First is Brand recognition, it's a big opportunity to

build a brand since it is new to the market. Second, the Product

Development, since it is new to the market it is expected that there will be

a low down of sales and profit but eventually grow when accepted by the

26 | Lami Deré Hub

market. The team would most likely add flavors for the product

improvement and development.

Threats

They also identified the possible threats for their company that

could cause trouble to their business. First, are their competitors.

Competitors are first for the threats because it would be hard for the team

to gain profit when they work on the same vicinity. Then natural calamity

like heavy rain fall, because it is unpredictable, could reduce the

profitability of the business and could affect production.

27 | Lami Deré Hub

Competitors Analysis

Table 2.1 The lists of their competitors and the products they sell

Company Name Nature of Business Type of Business

S and S Food Corner Snack Inn Merchandise

Bryce Siomai Food Industry Merchandise

McHeaven Food Station Food Industry Merchandise

Blessed this Store Sari-Sari store/Retailer Merchandise

The table shows the direct competitors of Lami Deré Hub as it also

sells siomai that has the same product of the company. These are the

direct competitors of Lami Deré Hub inside and outside of PHINMA-

Cagayan de Oro College Puerto Campus. Inside there are 'Blessed This

Store', 'McHeaven Food Station' and 'S and S Food Corner', which sells

siomai and drinks. The outside competitor is Siomai Bryce which really

has lots of customers. Even though it has the same product with these

competitors, Lami Deré Hub's product is way more unique compared to

them because its filling is sweet potato, hence; healthier. Lami Deré Hub

will surely step up the game because these competitors have already

established its name, but will also take that as an opportunity to really

28 | Lami Deré Hub

work hard, make competitive strategies and anticipate for a better

outcome.

29 | Lami Deré Hub

Industry Analysis

Table 2.2 The competitors of the company in the industry

Company Name Nature of Business Product Name

1. Queen Marcid Food Handler Merchandise Products

2. Tita Eggs Toppings Food Industry Merchandise Products

3. Abrio Company Food Industry Tuna Loaded Vegan

Balls
4. Aureola Company Food Industry Halo-Aloha

5. Filling Company Food Industry Jack n’ Mesa

6. Food Infinity Food Industry Cheesedog Balls

7. Grillicious Avenue Food Industry Barbecue

8. Okay Kay’oh Food Industry Special Lumpia

9. Optimista de Negocious Food Industry Vege-Banana

10. Violabytes Company Food Industry Viola Bola

The table shows the competitors of the company in the industry.

They sell different merchandise products in line with the food industry.

They sell according to the need in the market, what the consumers’ needs

and wants.

30 | Lami Deré Hub

 These competitors served as Lami Deré Hub’s basis on developing

more effective strategies and on how to surpass these competitors as it

aims to be one of the leading business in the food industry.

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Marketing Objectives

For Lami Deré Hub to grow and bloom in the market world, it has

its own objectives to fulfill. Lami Deré aims to be accepted in the market,

gain high profit, innovate, give customers’ satisfaction and retain loyalty,

provide good customer service and to serve good quality food. As Lami Deré

Hub is still yet to introduce its product, it aims to be accepted by the

market first, gain high profit when it reaches the period of rapid market

acceptance, innovation of product to keep sales growth, satisfy customers

through a good product quality and service and to develop customer's

loyalty as the value of loyal customers would make good referrals.

These objectives will help the business attain to its goals in relation

to the Company's vision and mission, and to ensure business stability for

the near future success.

32 | Lami Deré Hub

Marketing Mix

PRODUCT

Fried Mashweeto is an innovative product inspired by siomai. Its

product quality is one of the most important part for the success of a

business. Its main ingredient is sweet potato, tastes mildly sweet and a

glimpse of saltiness. The packaging that the proponents will use are paper

trays. Siomai is known for being popular with a very high demand to the

market, with that, the team come up to this idea which is new to the taste

of the people. Instead of meat it turns out to be a sweet potato. Moreover,

sweet potato has a lot of benefits, one of the key nutritional benefits is that

they’re high in an antioxidant known as beta-carotene. In short, the

product of the team is yet tasty and at the same time healthy. In addition,

a company must ensure the ingredients use in a product and it should be

well-cooked for the safety of the consumer or customer.

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PRICE

The proponents agreed to have a mark-up of 50% based from

their production cost. The cost is Php1,082 considering the packaging and

gas. It was divided by the 113 sets of expected daily demand and price per

unit is obtained. The price per unit would be Php10 and to come up with

a Php15.00 price, the mark-up is multiplied and added.

A team cannot just make a price without calculating the expenses

and cost etc. They must undergo into a process for making a proper price.

The key objectives of it is increasing sales, survival, and strong demand to

the market. Achieving these target objectives will eventually allow the

company to gain more profits. Keeping in mind, a company should have

competitive price in the industry. The company must set prices that are

not high over competitors, thus, customers would buy because they find

it affordable than others. Nevertheless, fried mashweeto is not expensive,

customers can buy it for 4 pieces in just 15 pesos.

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PLACE

The team should look for the best place where the attention of the

customers is being captured. The Geographic Location where the team will

sell their product is at PHINMA-Cagayan de Oro College-Puerto Campus.

It is located at Purok 6, Puerto, Cagayan de Oro City. The team chose this

location because it is where they have their target market and is accessible

for the team.

PROMOTION

Achieving brand awareness is very important because this will be

the way to get a loyal customer as the results of getting the target income,

and that is the number one goal of the team. The team start formulates

activity by giving leaf lets which contain product design, pricing, benefits

in consuming the product and even other promotions. The team will also

be posting tarpaulins around the geographic location of the product.

In this, the customers will be attracted and as a result of

capturing their attention. As computer age emerges, the team made use of

the internet and post advertisements on social media to give brand

awareness to the customers. This will help the product to be known in

public. The team will also give an incentive like free taste to increase brand

engagement.

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MARKETING BUDGET

Table 2.3 The marketing strategies and programs of the company

Strategies and Activities Cost

Programs

1. Building Brand -Leaflets P100.00

Awareness

-Tarpaulin

-Posting Online
P150.00

P 0.00

2. Increasing Brand -Incentives (Free Juice P250.00

Engagement etc.)

Total Cost: P500.00

36 | Lami Deré Hub

 Lami Deré Hub developed strategies and programs to introduce

and promote their product. In building brand awareness, the company will

most likely attract the customers through giving leaflets before the opening

of the business and tarpaulin that would please the eye of consumers. The

business would also consider promoting online for the fact that everyone

are so into social media nowadays and could increase brand awareness

without costs. In addition, the business also decided to give incentives to

obtain customer’s loyalty. Incentives would incite customers to visit the

stall. The proponents decided to give incentives for the first week of

operation. Each day would cost P50.00.

37 | Lami Deré Hub

 CHAPTER 3

OPERATING PLAN

Product Specification

An assertion of the description of the products, the components as

well as its use and benefits to the consumers. The researchers come up

with Fried Mashweeto because of the desire to produce an innovation of a

product that is already patronized mostly by consumers. One of the key

components of making Fried Mashweeto is sweet potato, margarine and

sugar. The table below shows the ingredients of Fried Mashweeto and its

benefits to human body.

Table 3.1 Shows the Ingredients or Components of the Product

Ingredients/Components Benefits
Sweet Potatoes are starchy root

vegetable that are rich in fiber,

Sweet Potato
vitamins, and minerals. They’re

also high in antioxidants that

protect your body from free radical

damage and chronic disease

Margarine is made from vegetable

oils, so it contains unsaturated

Margarine
fats. These types of fats help reduce

38 | Lami Deré Hub

 low-density lipoprotein (LDL), or

“bad”, cholesterol when substitute

for saturated fat.

Using sweetened Condensed Milk

to boost calorie content may be

more beneficial than using sugar

Condense Milk alone since the product also

provides extra protein, fat and

some bone-healthy minerals like

calcium and phosphorus.

39 | Lami Deré Hub

Production Process

In this part, the company shows the process in making the Fried

Mashweeto.

Figure 3.1 Process of making the Product

1: Fix yourself; with 2: Prepare all the 3: Wash your hands;

a personal protective materials needed

equipment (PPE)

Step 5: Boil sweet Step 6: Put the boiled

4: Wash the sweet
potato with an average sweet potato to a
potato and peel it;
water in casserole; mixing bowl and mash;

40 | Lami Deré Hub

 7: Add all the 8: Prepare the 9: Start to wrap the
ingredients and molo-wrapper; mash sweet potato
mix it well; with a molo-wrapper;

10: Deep fry the 11: Wait until it 12: Serve with
wrapped looks like golden condense milk on
Mashweeto; brown; and the top.

41 | Lami Deré Hub

Plant Location, Design and Layout

As you enter the gate in PHINMA Cagayan de Oro College, Puerto

Campus you will see the different stalls established. Locating at the left

side corner where in between of Lobe-lobe tree and Calachuchi plant, in

front of the Guidance Office, Lami Deré Hub Company’s stall is located.

Figure 3.2 The Plant Location, Design and Layout

a) Plant Location

42 | Lami Deré Hub

 b) Plant Design

c) Plant Layout

43 | Lami Deré Hub

Quality Control Components

In order to maintain the quality of the product, the company follows

these standard procedures. The following are the components that must

be done before and after mixing Fried Mashweeto;

 Hand washing – Wet hands with clean running water and apply

soap. Lather, rub and scrub for at least 20 seconds then rinse.

 Wash the materials needed before and after using – Remove

detachable parts if ever there is, wash with soapy water, and use

brush if necessary. Rinse in clear water after washing then dry

thoroughly.

 Mise-en-place – “Setting in Place” Having all the ingredients

measured, peeled, sliced, and cut before cooking. Selecting,

preparing and arranging ingredients before the actual cooking to

start with ease.

 Mise-en-scene – Preparing the environment and making it

presentable before the action or service. For example, the kitchen

should be cleaned before cooking.

 Wear Personal Protective Equipment (PPE) – In order to protect

one’s self, it is necessary to wear PPE as it can help protect from

injury when working with food. It helps to hygienically prepare food

and prevent foreign objects falling in to the food.

44 | Lami Deré Hub

  FIFO (first-in, first-out) – Using the first things purchased and

brought to preserve the quality of raw materials. It maximizes

freshness and minimizes waste.

45 | Lami Deré Hub

Machineries and Equipment

Table 3.2 Shows the Machineries and Equipment provided the

Supplier and Amount.

Machines/Equipment/Devices Supplier Amount

Frying Pan Kaking 150

Clip/Tong Kaking 15

Strainer Kaking 75

Knife Kaking 30

Mixing Bowl Kaking 100

Chopping
Board Kaking 45

Stove Kaking 650

46 | Lami Deré Hub

Raw Materials and Utilities

Table 3.3 Shows the Raw Materials and Utilities used

Ingredients Quantity Unit Cost Total

1 ½ kl Php 25.00 + 12.00 Php 37.00

Sweet Potato

¼ Php 16.00 Php 16.00

Margarine

¼ Php 16.00 Php 16.00

White Sugar

47 | Lami Deré Hub

 1 pc Php 28.00 Php 28.00

Condense Milk

1 small pack Php 13.00 Php 13.00

Iodize Salt

1 pack Php 41.00 Php 41.00

Molo wrapper

1 pack Php 50.00 Php 50.00

Disposable Gloves

48 | Lami Deré Hub

 2 pc Php 12.00 + 12.00 Php 24.00

Hair Net

Donation - -

Apron

Total Php 225.00

49 | Lami Deré Hub

Operational Schedule

This part of the paper shows the schedule of the daily operation

from Monday to Saturday of Lami Deré Hub on selling fried Mashweeto.

Table 3.4 Shows the Daily Schedule of Operation

Days AM PM

Monday 8:30-11:30 am 1:00-3:00 pm

Tuesday 8:30-11:30 am 1:00-3:00 pm

Wednesday 8:30-11:30 am 1:00-3:00 pm

Thursday 8:30-11:30 am 1:00-3:00 pm

Friday 8:30-11:30 am 1:00-3:00 pm

The operational schedule of the business was based from the results

of Figure 2.5 in the Demand and Market Acceptability Analysis. Based

from the results, 46% of the respondents usually buy snacks at 8-10am

and an equal 19% at 10-12am and 2-4pm. The proponents decided to

operate at the time where respondents mostly buy.

50 | Lami Deré Hub

Waste Management

The collection, transportation and disposal of garbage, sewage and

other waste products.

Table 3.5 The Proper Waste Management implemented.

Waste Management Uses

Sweet Potato Sweet Potato skins are among the

Peeling many kind of household vegetable

used in composting boxes or bins.

The result of the decomposition

compost is an expensive, high

quality soil amendment that

contains many essential plant

nutrients.

Used Cans
Cans can be crushed in a manual

crusher to reduce volume through

there are also motorized crushes.

Crushed cans also be used as fill

51 | Lami Deré Hub

 material in foundations and

sidewalks, etc.

Technically, almost all paper

trays are made from recycled

waste paper. It is a valuable

recyclable material but only when

it is clean. To implement proper

Paper Trays waste management, just throw it

on garbage cans. Used paper tray

is at risk for contamination and

many collection agencies would

not take it. Remove foods from

used cans when wished to be

recycled.

52 | Lami Deré Hub

 CHAPTER 4

MANAGEMENT PLAN

This chapter exhibits forms of ownership, officers and workers’

duties and responsibilities, as well as production workers’ duties and

responsibilities.

Form of Ownership

Lami Deré Hub is a general partnership form of business. 10 general

partners agreed to establish and run Lami Deré Hub together as it is easy

to establish and requires less paperwork than forming a corporation. Lami

Deré Hub’s general partners are namely; April Nicolette Eduria, Angeline

Montefalcon, Clare May Nanale, Jeann Pagobo, John Reydel Mayoan,

Keith Brandon Alana, Angel Largo, Joyce Meriales and Nhaivie Grace

Setier, Arjen Rose Perlacio, which has different functions inside the

business entity. They help each other to ensure in achieving their desired

goals and make the business profitable. In this form of business, the

general partners contribute equal amount of will and strength for their

venture to boom and last-long in the market. Moreover, all partners are

responsible for the business and are subject to unlimited liability for

business debts. They are equally responsible for any losses incurred by

the business and actively manages and exercises control over the

business.

53 | Lami Deré Hub

In alphabetical order, these are the general partners of Lami Deré Hub:

Alana, Keith P. Montefalcon, Angeline C.

Eduria, April Nicolette T. Nanale, Clare May C.

Largo, Angel L. Pagobo, Jeann S.

Mayoan, John Reydel V. Perlacio, Arjen Rose T.

Meriales, Joyce C. Setier, Nhaivie Grace T.

54 | Lami Deré Hub

Organizational Structure
Figure 4.1 The Organizational Structure of the Company

April Nicolette T. Eduria

General Manager

Jeann S. Pagobo

Claremay C. Nanale Secretary

Auditor
Angeline C. Montefalcon

Asst. General Manager

John Reydel Keith

Angel P. Nhaivie Grace Joyce C
C. Mayoan Brandon P.
Largo T. Setier Meriales
Alana
Finance Operation Production
Marketing Procurement
Head Head
Head Head Head

Arjen Rose T.
Perlacio
Production
Worker

55 | Lami Deré Hub

Officers and Workers Duties and Responsibilities

Officers’ position and functions are indicated in this part.

Segregation of work has been done to ensure efficiency and effectivity of

one’s duty.

Table 4.1 Shows the Officers and Workers’ Duties and

Responsibilities

POSITION OFFICERS DUTIES AND

RESPONSIBLITIES

 Has the overall

responsibilities.

 Plan, coordinate and

manage all business

General Manager April Nicolette T. operations to achieve

Eduria
corporate goals

 Self-motivated and

results-driven to direct

and manage business

activities.

 Helps the General

Manager in directing

daily business

operations

56 | Lami Deré Hub

  Motivates and positively

influence staff especially

offering times of lost

morale.
Asst. General Angeline C.
Manager Montefalcon
 Supervise employees,

making sure they follow

regulations and meet

customers service

standards.

 Helps to keep an

organization run

smoothly

 Organizing and servicing

Secretary Jeann S. Pagobo meetings (producing

agendas and taking

minutes)

 Prioritizing workloads

 Examines the company

accounts and financial

control systems and to

check money going in

and out of the company,

57 | Lami Deré Hub

 making sure it is

recorded and processed

correctly.
Auditor Claremay C. Nanale
 Assesses financial

operations and work to

help ensure that

organizations run

efficiently

 Verifies assets and

liabilities by comparing

items to documentation

 Oversees the flow of

cash and financial

instruments of the

company.

Financial Head John Reydel C.  Determines the

Mayoan
operating expenses.

 Analyze markets for

business opportunities,

such as expansion,

mergers or acquisitions

58 | Lami Deré Hub

 to ensure company

success.

 Develop marketing

strategy for the company

in line with the company

objectives

 Oversee the promotion

Marketing Head Keith Brandon P. of the business
Alana
 Develop a pricing

strategy that maximizes

profits and market share

but considers

customer’s satisfaction

 Manages the operating

area and control the

product/item that will

going to ship in or ship

Operation Head Angel L. Largo out in the production

area in every single day

 Having a keen eye on

budgets and budgetary

changes

59 | Lami Deré Hub

  Managing stock control

and inventory checks

 Has strong analytical

skills, which enable to

find new suppliers

 Responsible for leading

the procurement team in

getting the goods

Procurement Head Joyce C. Meriales
or services the business

needs at the right time

and achieving the best

value

 Negotiating with

external vendors to

secure advantageous

terms

 Oversees the workplace

of the employees in the

manufacturing
Production Head Nhaivie Grace T. Setier
department.

 Ensure all employees

follow industry standard

60 | Lami Deré Hub

 health and safety

guidelines.

 Plans and organize the

production schedules

for all the employees and

provide motivation,

support to all employees

61 | Lami Deré Hub

Production Workers’ Duties and Responsibilities

Table 4.2 Shows the Production Workers’ Duties and Responsibilities

The production workers are directly engaged in the productivity and

handling materials. They serve as the backbone of business, in which the

business cannot function without them.

Position Worker Duties and

Responsibilities

 Monitor the

production

process.

 Perform quality

checks, clean, and

Production Staff Arjen Rose T. Perlacio maintains

production

equipment.

 Pack goods and

assemble goods in

production lines.

62 | Lami Deré Hub

 CHAPTER 5

FINANCIAL PLAN

This chapter presents the financial forecast of the business. It

determines how the business will achieve its goals and objectives which

directly affect its long-term process and operation. It consists of the Project

Cost, Source of Financing, Sales Forecasting, Financial Assumptions and

Financial Statements.

Project Cost

This is the total sum of funds required for the business to

operate successfully. The table below shows the machineries and

equipment, materials and ingredients’ quantity and cost of each item used

in each operating day of the business.

Table 5.1 Shows Lami Deré Hub’s Project Cost

Quantity Unit Price Total Cost

[5 days]

Machineries &
Equipment

Frying Pan 1 pc Php 150.00 Php 150.00

Clip/Tong 1 pc Php 15.00 Php 15.00

63 | Lami Deré Hub

Strainer 1 pc Php 75.00 Php 75.00

Knife 1 pc Php 30.00 Php 30.00

Mixing Bowl 1 pc Php 100.00 Php 100.00

Chopping Board 1 pc Php 45.00 Php 45.00

Stove 1 pc Php 650.00 Php 650.00

Total: Php
1,065.00

Indirect Materials:

Packaging Tray 1 Pack Php 22.50 Php 112.50

Disposable Gloves 1 Pack Php 50.00 Php 150.00

Hair Net 2 pcs Php 12.00 Php 60.00

Toothpick 1 pack Php 10.00 Php 10.00

Apron (Donation) --- --- ---

Total: Php94.50 Php 332.50

Quantity Unit Price Total Cost Total Cost

(1 day) (5 days)

Raw Materials:

Sweet Potato 5 2/3 kl Php 30.00 Php170.00 Php 850.00

Margarine 2 kl Php 60.00 Php 120.00 Php 600.00

Sugar 1 1/2 kl Php 60.00 Php90.00 Php 450.00

Condense Milk 3 cans Php 28.00 Php 84.00 Php 420.00

64 | Lami Deré Hub

Iodize Salt 1 pack Php 13.54 Php 13.54 Php 67.70

Molo Wrapper 12 packs Php 41.00 Php 492.00 Php 2,460.00

Total: Php969.54 Php4847.70

Stall:

Php1500.00

Total:
Php 1,500.00

Utilities: [5 days]

Gas (Php 224.00/5) Php 44.80

Total: Php 44.80

Total Project Cost: Php 6,725.00

65 | Lami Deré Hub

Source of Financing

In raising a business, it is important to have enough fund to

put up a business. It may be hard to find a source of fund in some business

owners as it requires bigger amount of money, but they must have critical

thinking in order for the business to grow and further continue its

operations in the future.

The following partners: April Nicolette T. Eduria, Angeline C.

Montefalcon, Jeann S. Pagobo, Claire May C. Nanale, Keith P. Alana, Angel

A. Largo, John Reydel V. Mayoan, Joyce C. Meriales, Arjen Rose T.

Perlacio, Nhaivie Grace T. Setier decided to have equal contributions in

raising their small business. Each of them agreed that they must

contribute Php700 based on the projected cost that will be amounted to a

total cost of Php7,000 as their startup capital.

66 | Lami Deré Hub

 Sales Forecasting

This part of the paper shows the expected daily demand and

the forecasted sales of the business for five years.

Do you eat Sweet Potato?

_____YES _____NO

YES- 91% or 91 respondents eats sweet potato

2000- Population in the area

4- Existing businesses with the same or related product

2000 / 4 x 91%= 455 daily demand

455pcs of daily demand/4pcs = 113 sets

Table 5.5 Quantity Sold Forecast for Five (5) Years

Forecast 1st year 2nd year 3rd year 4th year 5th year

no (5% (10 % (15% (20%

increase) increase) increase) increase) increase)

Daily 113x1.05= 119x1.10= 131x1.15= 15x1.201=

113 119 131 151 181

Weekly 113x5 565x1.05 593x1.10 652x1.15 750x1.20

= = = = =

565 593 652 750 900

67 | Lami Deré Hub

Monthly 113x20 2,260x1.05 2,373x1.10 2,610x1.15 3,002x1.20
= =
= = =
2,373 2,610
2,260 3,002 3,602

Yearly 113x200 22,600x1.0 23,730x1.1 26,103x1.1 30,018x1.2

5= 0= 5=
= =
23,730 26,103 30,018
22,600 36,022

68 | Lami Deré Hub

Financial Assumptions

This part of the paper shows the financial assumptions for projected

one month, one year and 5 year financial statements of Lami Deré Hub

Company.

MONTHLY

Statement of Cost of Goods Manufactured

 Lami Deré Hub assumes that they will have P19,390.80

 The purchase returns & allowances is P115.00 with a purchase

discount of P25.

 The proponents assume that their transfer in will be P10.00.

 The company assumes that their raw materials inventory end is

P198.00

 Depreciation expense-machineries cost P12.75. The machineries

cost P1,065.00 with a scrap value of P300 and would last for 5 years.

 Indirect Materials cost P1,330.00

 Tools and utensils used would cost P100.00

 Projected miscellaneous expense for the month is P150.00

Statement of Cost of Goods Sold

 Projected finished goods inventory end is P20.00

69 | Lami Deré Hub

Statement of Comprehensive Income

 Sales assumption was P33, 900.00 every month wherein 113 sets of

455 pcs. of daily demand multiplied by price amounting P15.00 and

multiplied within 5 days and 4 weeks.

 Pre-operating expense cost P155.00

 Rent expense would be P0.00 since the company has its own stall.

 The company determined a depreciation of stall with a useful life of

5 years and scrap value of P200.00. The depreciation of stall is

P21.67.

 The company assumes that the Office supplies cost P50.00

 Operating supplies would P30.00

 Utilities cost P896.00

 Advertising expense would cost P350.00 for the month.

Cash Flow Statement

 The company assumes that the net cash received from customers is

P 39,900.

Statement of Financial Position

 The company’s accounts receivable is P0 as they project to meet the

forecasted net sales for the month.

70 | Lami Deré Hub

  The company determined the depreciation worth P21.67 for the stall

and 12.75 for the equipment.

71 | Lami Deré Hub

YEARLY

Statement of Cost of Goods Manufactured

 The purchase return and allowances is P1,380.00 with a P300.00

purchase discount.

 The proponents assume that their transfer in will be P110.00 for the

year.

 The company assumes that their Raw Materials Inventory End is

P198.00.

 Depreciation Expense for Machines cost P153.00.

 Indirect Materials cost P20,250.00

 Tools and Utensils used cost P100.00

 The Miscellaneous expense would cost P1, 800.00 for the year.

Statement of Cost of Goods Sold

 For the year, the finish goods inventory end is P240.00.

Statement of Comprehensive Income

 Sales assumption for the year amounts to P339, 000.00.

 Pre- operating expense cost P1800.00

72 | Lami Deré Hub

  The company determined a depreciation of stall with a useful life of

5 years and scrap value of P 200.00. The depreciation of stall for the

year is P260.00

 Office Supplies cost P600.00

 Operating Supplies cost P360.00

 Utilities cost P10,752.00 for the year.

 Advertising Expense would cost P4200.00 for the year.

Cash Flow Statement

 The company assumes that the net cash received from customers is

P 339,000.00

Statement of Financial Position

 The company assumes that they would not have any accounts

receivable.

73 | Lami Deré Hub

5 YEAR STATEMENT

Statement of Cost of Goods Manufactured

 For raw materials, the company assumes a 5% increase on

purchases and increases at 10%, 15% and 20% for the next 3 years,

respectively.

 The purchase return & allowances in 2021 is P787.50, in 2022 is

P842.63 and will increase 10% in 2023 and 15% in 2024.

 The proponents assumes that their transfer in will increase 5%, 7%,

10% and 15% in the year 2021 up to 2024 respectively

 The company assumes that their raw materials Inventory End in the

year 2021 increases at 5% and increases at 10%, 15% and 20% for

years 2022, 2023 and 2024, respectively.

 Depreciation Expense for Machineries is P153.00 and continues to

depreciate at P153.00 every year.

 Indirect materials in year 2021 is P21, 262.50 and will increase in

2022 by 10%, 15% and 20% in year 2023 and 2024 respectively.

 Tools and utensils cost P104.98 in 2021 and increase at 10%,15%,

and 20% in the year 2022, 2023, 2024 respectively.

 In the year 2021 the miscellaneous expense cost P1,890.00 and in

year 2022, 2023, 2024 it increases at 10%, 15%, and 20%

respectively.

74 | Lami Deré Hub

Statement of Cost of Goods Sold

 Finished goods inventory end increases at 5%, 10%, 15% and 20%

in year 2021, 2022, 2023 and 2024 respectively.

Statement of Comprehensive Income

 For five consecutive years there will be a depreciation expense of

P260.00 for the stall.

 Operating supplies cost P360.00 in the year 2021 and increases at

10% in 2022,15% in 2023 and 20% in year 2024.

 Utilities cost for the year 2021 amounts to P11,289.60. The following

3 years increases at 10%, 15% and 20% respectively.

 Advertising expense for the year 2021 amounts to P4,410 and

increases at 10%, 15% and 20% respectively for the following years.

 Office supplies in year 2021 is P630.00 and will increase 7%,10%

and 15% for the three consecutive years.

Statement of Changes in Owner’s Equity

 The entrepreneurs assumes that their beginning capital for the four

years ahead would amount to P30,832.69, P56213.857,

P83969.0257, P115664.49 respectively.

75 | Lami Deré Hub

Cash Flow Statement

 The company’s cash balance beginning in 2021 to 2024 amounts to

P28,192.69, P54,365.56, P83,460.50, P117,333.78 respectively.

 The company assumes that the net cash received from customers

in the years 2020 to 2024 would meet the forecasted sales.

 The company’s goods purchased amounts to P242,675.58,

P266,943.14, P306,984.61, P368,381.53 for the next following

years, respectively.

 Manufacturing overhead for the year 2021 to 2024 amounts to

P23,257.50, P25,583.25, P29,420.74, and P35,304.89 respectively.

 In the year 2021 the office supplies is P630 and increases at 10%,,

15% and 20% from year 2022, 2023, 2024 respectively.

 For the year 2021, the company’s payment for tax amounts to

P21,755.29 and increases every year depending on the company’s

net income.

Statement of Financial Position

 The company assumes that they would not have accounts receivable

since they assumes to meet the forecasted sales.

 The company’s accumulated depreciation for the stall changes every

year. Since its useful life would reach for five years, the depreciation

increases.

76 | Lami Deré Hub

  The company’s accumulated depreciation for the equipment

increases every year as it has 5 years of useful life.

77 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Cost of Goods Manufactured
For the period Ended February 29, 2020

Direct Materials
Raw Materials Inventory, beginning -
Add: Net Cost of Purchases:
Purchases - Raw Materials 19,390.80
Less: Purchases Ret. & Allowances 115.00
Purchases Discoun 25.00 140.00
Net Purchases 19,250.80
Add: Transfer IN 10.00 19,260.80
Raw Materials Available for Use 19,260.80
Less: Raw Materials Inventory, End 198.00 19,062.80
Direct Labor
Manufacturing Overhead
Indirect Labor -
Indirect Materials 1,330.00
Depreciation Expense - Machineries 12.75
Rep. & Maintenance - Machineries -
Factory Utilities -
Tools & Utensils Used 100.00
Employees Contribution - Factory -
Factory Supplies Expense -
Miscellaneous Expense 150.00 1,592.75
Total Manufacturing Cost 20,655.55
Add: Work In Process, Beginning
Total Cost of Goods Placed in Process 20,655.55
Less: Work in Process, End 0
Cost of Good Manufactured 20,655.55

78 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Cost of Goods Sold
For the Period Ended February 29, 2020

Finished Goods Inventory, Beginning

Add: Cost of Good Manufactured 20,655.55
Goods Available for Sale 20,655.55
Less: Finished Goods Inventory, End. 20
Cost of Goods Sold 20,635.55

79 | Lami Deré Hub

 LAM I DERÉ HUB Company
Statement of Comprehensive Income
For the period Ended February 29, 2020

Sales (113 sets/day @ 15) 33,900.00

Less: Cost of Goods Sold (SCGS) 20,635.55
Contribution Margin 13,264.45

Less: Operating Expenses

Pre-operating Expense 155.00
Rent Expense - Stall 0.00
Depreciation Expense - Stall 21.67
Office Supplies 50
Operating Supplies 30
Utilities 896
Advertising Expense 350 1,502.67
Net Income before Tax 11,761.78
Less: Tax 30% 3,528.53
Net Income/Loss after Tax 8,233.25

80 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Changes in Owners’ Equity
For the Period Ended February 29, 2020

LAMI DERÉ HUB CAPITAL, January 22, 2020 7,000

Add: Net Income/Loss 8,233.25
TOTAL 15,233.25
Less: Drawing (Profit Sharing) 50% 4,116.62
Lami Dere Hub, Capital February 29, 2020 11,116.62

81 | Lami Deré Hub

 LAMI DERÉ HUB Company
Cash Flow Statement
For the period ended February 29, 2020

Cash Balance, Beginning 7,000.00

Cash flow from operating activities:
Add: Cash inflow from operating activities
Net Cash Received from Customers 33,900
Deduct: Cash outflow from operating activities
Goods - Purchased 19,260.80
Manufacturing Overhead 1,580.00
Pre-operating Expense 155.00
Rent Expense - Stall 0.00
Office Supplies 50
Operating Supplies 30
Utilities 896
Payment for Tax 3,528.53
Advertising Expense 350 25,850.33
Add: Net cash flow provided by operating activities 8,049.67

Cash Flow from Investing activities

Deduct: Cash outflows from investing activities
Acquisition of Equipment’s 1,065.00
Acquisition of Stall 1,500.00
Less: Net cash flow provided by investing activities 2,565.00

Cash flow from Financing activities

Deduct: Cash outflow from financing activities
Withdrawal by the owner 4,116.62
Less: Net cash flow provided by financing activities 4116.623
Cash balance, February 29, 2020 8,368.04

82 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Financial Position
As of February 29, 2020

ASSET
Current assets
Cash on Hand 8,368.04
Account Receivable 0.00
Inventory - Raw Materials 198
Inventory - Work in Process, End 0
Inventory - Finished Goods 20 218.00
Office Supplies on Hand -
Operating Supplies on Hand -
Total Current Assets 8,586.04
Non-Current Assets
Stall 1,500.00
Less: Accumulated Depreciation 21.67 1,478.33

Equipment 1,065.00
Less: Accumulated Depreciation 12.75 1,052.25
Total Non-Current Asset 2,530.58
Total Assets 11,116.62

Liabilities and Owners Equity

Liabilities
Total Liabilities 0.00
Owners’ Equity
LAMI DERÉ HUB Capital, February 29, 2020 11,116.62
Total Owner's Equity 11,116.62
Total Liabilities & Owners Equity 11,116.62

83 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Cost of Goods Manufactured
For the year ended December 31, 2020

Direct Materials
Raw Materials Inventory, beginning -
Add: Net Cost of Purchases:
Purchases - Raw Materials 232,689.60
Less: Purchases Ret. & Allowances 1,380.00
Purchases Discoun 300.00 1,680.00
Net Purchases 231,009.60
Add: Transfer IN 110.00 231,119.60
Raw Materials Available for Use 231,119.60
Less: Raw Materials Inventory, End 198.00 230,921.60
Direct Labor
Manufacturing Overhead
Indirect Labor -
Indirect Materials 20,250.00
Depreciation Expense - Machineries 153.00
Rep. & Maintenance - Machineries -
Factory Utilities -
Tools & Utensils Used 100.00
Employees Contribution - Factory -
Factory Supplies Expense -
Miscellaneous Expense 1,800.00 22,303.00
Total Manufacturing Cost 253,224.60
Add: Work In Process, Beginning
Total Cost of Goods Placed in Process 253,224.60
Less: Work in Process, End 50
Cost of Good Manufactured 253,174.60

84 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Cost of Goods Sold
For the Year Ended December 31, 2020

Finished Goods Inventory, Beginning

Add: Cost of Good Manufactured 253,174.60
Goods Available for Sale 253,174.60
Less: Finished Goods Inventory, End. 240
Cost of Goods Sold 252,934.60

85 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Comprehensive Income
For the Year Ended December 31, 2020

Sales (113 sets/day @ 15) 339,000.00

Less: Cost of Goods Sold (SCGS) 252,934.60
Contribution Margin 86,065.40

Less: Operating Expenses

Pre-operating Expense 1,800.00
Rent Expense - Stall 0.00
Depreciation Expense - Stall 260.00
Office Supplies 600
Operating Supplies 360
Utilities 10752
Advertising Expense 4200 17,972.00
Net Income before Tax 68,093.40
Less: Tax 30% 20,428.02
Net Income/Loss after Tax 47,665.38

86 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Changes in Owners’ Equity
For the Year Ended December 31, 2020

LAMI DERÉ HUB CAPITAL, January 22, 2020 7,000

Add: Net Income/Loss 47,665.38
TOTAL 54,665.38
Less: Drawing (Profit Sharing) 50% 23,832.69
Lami Deré Hub, Capital December 31, 2020 30,832.69

87 | Lami Deré Hub

 LAMI DERÉ HUB Company
Cash Flow Statement
For the Year ended December 31, 2020

Cash Balance, Beginning 7,000.00

Cash flow from operating activities:
Add: Cash inflow from operating activities
Net Cash Received from Customers 339,000
Deduct: Cash outflow from operating activities
Goods - Purchased 231,119.60
Manufacturing Overhead 22,150.00
Pre-operating Expense 1,800.00
Rent Expense - Stall 0.00
Office Supplies 600
Operating Supplies 360
Utilities 10752
Payment for Tax 20,428.02
Advertising Expense 4200 291,409.62
Add: Net cash flow provided by operating activities 47,590.38

Cash Flow from Investing activities

Deduct: Cash outflows from investing activities
Acquisition of Equipment’s 1,065.00
Acquisition of Stall 1,500.00
Less: Net cash flow provided by investing activities 2,565.00

Cash flow from Financing activities

Deduct: Cash outflow from financing activities
Withdrawal by the owner 23,832.69
Less: Net cash flow provided by financing activities 23832.69
Cash balance, February 29, 2020 28,192.69

88 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Financial Position
As of December 31, 2020

ASSET
Current assets
Cash on Hand 28,192.69
Account Receivable 0.00
Inventory - Raw Materials 198
Inventory - Work in Process, End 50
Inventory - Finished Goods 240 488.00
Office Supplies on Hand -
Operating Supplies on Hand -
Total Current Assets 28,680.69
Non-Current Assets
Stall 1,500.00
Less: Accumulated Depreciation 260.00 1,240.00

Equipment 1,065.00
Less: Accumulated Depreciation 153 912.00
Total Non-Current Asset 2,152.00
Total Assets 30,832.69

Liabilities and Owners Equity

Liabilities
Total Liabilities 0.00
Owners’ Equity
LAMI DERÉ HUB Capital, December 31 30,832.69
Total Owner's Equity 30,832.69
Total Liabilities & Owners Equity 30,832.69

89 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Cost of Goods Manufactured
For the Years 2020-2024
2020 2021 2022 2023 2024
Direct Materials
Raw Materials Inventory, beginning 198.00 217.80 239.58 275.52
Purchases - Raw Materials 232,689.60 244,324.08 268,756.49 309,069.96 370,883.95
Less: Purchases Ret. & Allowances 1,380.00 1,449.00 1,593.90 1,832.99 2,199.58
Purchases Discoun 300.00 315.00 346.50 398.48 478.17
Net Purchases 231,009.60 242,560.08 266,816.09 306,838.50 368,206.20
Add: Transfer IN 110.00 115.50 127.05 146.11 175.33
Raw Materials Available for Use 231,119.60 242,873.58 267,160.94 307,224.19 368,657.05
Less: Raw Materials Inventory, End 198.00 217.80 239.58 275.52 330.62
Total Direct 230,921.60 242,655.78 266,921.36 306,948.67 368,326.43
Direct Labor
Manufacturing Overhead
Indirect Labor
Indirect Materials 20,250.00 21,262.50 23,388.75 26,897.06 32,276.48
Depreciation Expense - Machineries 153.00 306.00 612.00 1,224.00 2,448.00
Rep. & Maintenance - Machineries
Factory Utilities
Tools & Utensils Used 100.00 105.00 115.50 132.83 159.39
Employees Contribution - Factory
Factory Supplies Expense
Miscellaneous Expense 1,800.00 1,890.00 2,079.00 2,390.85 2,869.02
Total Overhead 22,303.00 23,563.50 26,195.25 30,644.74 37,752.89
Total Manufacturing Cost 253,224.60 266,219.28 293,116.61 337,593.41 406,079.31
Add: Work In Process, Beginning 50.00 52.50 57.75 66.41
Total Cost of Goods Placed in Process 253,224.60 266,269.28 293,169.11 337,651.16 406,145.72
Less: Work in Process, End 50.00 52.50 57.75 66.41 79.70
Cost of Good Manufactured 253,174.60 266,216.78 293,111.36 337,584.75 406,066.03

90 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Cost of Goods Sold
For the Years 2020-2024
2020 2021 2022 2023 2024

Finished Goods Inventory, Beginning 240 252 277.2 318.78

Add: Cost of Good Manufactured 253,174.60 266,216.78 293,111.36 337,584.75 406,066.03
Goods Available for Sale 253,174.60 266,456.78 293,363.36 337,861.95 406,384.81
Less: Finished Goods Inventory, End. 240 252 277.2 318.78 382.536
Cost of Goods Sold 252,934.60 266,204.78 293,086.16 337,543.17 406,002.27

91 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Comprehensive Income
For the Years 2020-2024
2020 2021 2022 2023 2024
Sales (113 Sets/day @ 15 339,000.00 355,950.00 391,545.00 450,276.75 540,332.10
Less: Cost of Goods Sold (SCGS) 252,934.60 266,204.78 293,086.16 337,543.17 406,002.27
Contribution Margin 86,065.40 89,745.22 98,458.84 112,733.58 134,329.83

Less: Operating Expenses

Pre-operating Expense 1,800.00 - - - -
Rent Expense - Stall
Depreciation Expense - Stall 260.00 520.00 780.00 1,040.00 1,300.00
Office Supplies 600.00 630.00 693.00 796.95 956.34
Operating Supplies 360.00 378.00 415.80 478.17 573.80
Utilities 10,752.00 11,289.60 12,418.56 14,281.34 17,137.61
Advertising Expense 4,200.00 4,410.00 4,851.00 5,578.65 6,694.38
Total 17,972.00 17,227.60 19,158.36 22,175.11 26,662.14
Net Income before Tax 68,093.40 72,517.62 79,300.48 90,558.47 107,667.69
Less: Tax 30% 20,428.02 21,755.29 23,790.14 27,167.54 32,300.31
Net Income/Loss after Tax 47,665.38 50,762.33 55,510.34 63,390.93 75,367.38

92 | Lami Deré Hub

 LAMI DERÉ HUB Company
Statement of Changes in Owners’ Equity
For the Years 2020-2024
2020 2021 2022 2023 2024
LAMI DERÉ HUB, CAPITAL, January 22 7,000 30,832.69 56213.857 83969.0257 115664.49
Add: Net Income/Loss 47,665.38 50,762.33 55,510.34 63,390.93 75,367.38
TOTAL 54,665.38 81,595.02 111,724.19 147,359.95 191,031.87
Less: Drawing (Profit Sharing) 50% 23,832.69 25,381.17 27,755.17 31,695.46 37,683.69
LAMI DERÉ HUB, CAPITAL, December 31 30,832.69 56,213.86 83,969.03 115,664.49 153,348.18

93 | Lami Deré Hub

 LAMI DERÉ HUB Company
Cash Flow Statement
For the Years 2020-2024
2020 2021 2022 2023 2024
Cash Balance, Beginning 7,000.00 28,192.69 54,365.56 83,460.50 117,333.78
Cash flow from operating activities:
Add: Cash inflow from operating activities
Net Cash Received from Customers 339,000.00 355,950.00 391,545.00 450,276.75 540,332.10
Deduct: Cash outflow from operating activities
Goods - Purchased 231,119.60 242,675.58 266,943.14 306,984.61 368,381.53
Manufacturing Overhead 22,150.00 23,257.50 25,583.25 29,420.74 35,304.89
Pre-operating Expense 1,800.00 - - - -
Rent Expense - Stall - - - - -
Office Supplies 600.00 630.00 693.00 796.95 956.34
Operating Supplies 360.00 378.00 415.80 478.17 573.80
Utilities 10,752.00 11,289.60 12,418.56 14,281.34 17,137.61
Payment for Tax 20,428.02 21,755.29 23,790.14 27,167.54 32,300.31
Advertising Expense 4,200.00 4,410.00 4,851.00 5,578.65 6,694.38
Add: Net cash flow provided by operating activities 291,409.62 304,395.97 334,694.89 384,708.00 461,348.86

Cash Flow from Investing activities

Deduct: Cash outflows from investing activities
Acquisition of Equipment’s 1,065.00 - - - -
Acquisition of Stall 1,500.00 - - - -
Less: Net cash flow provided by investing activities 2,565.00 - - - -

Cash flow from Financing activities

Deduct: Cash outflow from financing activities
Withdrawal by the owner 23,832.69 25,381.17 27,755.17 31,695.46 37,683.69
Less: Net cash flow provided by financing activities 23,832.69 25,381.17 27,755.17 31,695.46 37,683.69
Cash balance 28,192.69 54,365.56 83,460.50 117,333.78 158,633.33

94 | Lami Deré Hub

 LAMI DERÉ HUB Company
Projected Statement of Financial Position
As of the year 2020-2024

ASSET 2020 2021 2022 2023 2024

Current assets
Cash on Hand 28,192.69 54,365.56 83,460.50 117,333.78 158,633.33
Account Receivable
Inventory - Raw Materials 198.00 217.80 239.58 275.52 330.62
Inventory - Work in Process, End 50.00 52.50 57.75 66.41 79.70
Inventory - Finished Goods 240 252 277.2 318.78 382.536
Office Supplies on Hand
Operating Supplies on Hand
Total Current Assets 28,680.69 54,887.86 84,035.03 117,994.49 159,426.18
Non-Current Assets
Stall 1500 1,240.00 720.00 (60.00) (1,100.00)
Less: Accumulated Depreciation 260.00 520.00 780.00 1,040.00 1,300.00

Equipment 1065 912.00 606.00 (6.00) (1,230.00)

Less: Accumulated Depreciation 153.00 306.00 612.00 1,224.00 2,448.00
Total Non-Current Asset 2,152.00 1,326.00 (66.00) (2,330.00) (6,078.00)
Total Assets 30,832.69 56,213.86 83,969.03 115,664.49 153,348.18

Liabilities and Owners Equity

Liabilities
Total Liabilities
Owners’ Equity
LAMI DERÉ HUB, Capital 30,832.69 56,213.86 83,969.03 115,664.49 153,348.18

Total Liabilities & Owners Equity 30,832.69 56,213.86 83,969.03 115,664.49 153,348.18

95 | Lami Deré Hub

Financial Ratios

The following are the financial ratios of Lami Dere Hub for the first year

of operation based on the financial statements.

Table 5.6 Shows the Financial Ratios of Lami Dere Hub in one year.

96 | Lami Deré Hub

97 | Lami Deré Hub
Financial Ratio Analysis

The Gross Margin of Lami Deré Hub for the year 2020 is 25.39%.

Generally, the higher the gross margin the better. Since it’s the first year

of the company, from the results, it shows that the company will do well

in managing its cost of sales.

The company’s operating margin is 20.09%. Based from the result,

it can be concluded that the company earns 20.09% of profit from its

operations prior to subtracting taxes. This shows that the company is

financially sound.

Return on Assets of the company is 1.55, indicating that the

company investment in assets is higher. It also means that the company

is more effectively managing its assets to produce greater amounts of net

income. This shows, that the business was able to utilize the resource

provided by the equity of partners.

The company’s return on equity is 1.55. The ROE is similar to ROA

but focuses on equity rather than debts. The result indicate that the

business was able to use equity provided by the partners to generate more

equity.

The company’s return on sales is 20.09%, in other words, the

business spend the 79.91% of the money gained to run the business. This

indicates that the company will show well in its core operations and the

main operations will be profitable enough.

98 | Lami Deré Hub

 The company’s Return on Investment is 1.55. Relative to the amount

of money invested, this shows that the value of investment is high-

performing considering it’s still the first year of the business. The business

equity ratio is 1:1. This means that there is an equal stake in the business

assets from the money invested.

99 | Lami Deré Hub

Recommendation

Lami Deré Hub recommends Fried Mashweeto to the people who

wants to eat siomai but are conservative when it comes to their diet. They

also want to recommend Fried Mashweeto for those that are looking for

new taste and are tired of humdrum foods. Fried Mashweeto is a nutritious

food that can help to protect your body from chronic illness as it is

wholesome. The team also recommend this product to those people who

wants to establish their own business with low start-up capital. The

production costs for Fried Mashweeto is relatively low and could easily

recoup capital. They should also know, that in managing a business, there

will always be competitors to consider and must be mindful of challenges.

100 | Lami Deré Hub

Conclusion

Establishing a business was never easy. There are risks that must

be considered especially when the product is still new. It takes a lot of

courage and determination because it starts with introducing a product

and would have to make efforts to reach the period of growth.

In working process of the business, Lami Deré Hub has become

more realistic and optimistic regarding the success of the business. They

have learned not to be shaken with one challenge because they started

with that, and that was making an innovative product. The people behind

the business really wants to prove that their business has space in the

market and their product can make its way to people’s heart. It takes a lot

of effort especially that they have to think of strategies and unique tactics

to build awareness with their brand.

Lami Deré Hub basically means ‘center of delicious foods’, and they

aim to prove this name someday. The students behind Lami Deré Hub

hopes that all the planning would be useful in the future as they are most

likely becoming future entrepreneurs.

101 | Lami Deré Hub

 PHINMA-CAGAYAN DE ORO COLLEGE

Senior High School Department

Accountancy, Business and Management

Name (optional): Age:

Grade: Gender:

The Entrepreneurship students of Accountancy, Business and

Management is conducting a study on the viability of Fried Mashsweeto.

This survey questionnaire is part of the study. The information received

on this questionnaire will be held on strict confidence.

FRIED MASHSWEETO

A snack that would satisfy every bits of your tongue. From the perfect

fusion of sweet and salty taste. Made of delicious mashed sweet potato

wrapped in soft molo wrapper.

Instructions: Kindly put a check ☑ on the space provided for the choices

that best suits you.

1. How much is your daily allowance?

_Php10-20 _Php21-30 _Php31-40 _Php41 and above

2. How much is your budget for snacks?

_Php5-15 _Php16-30 _Php31-45 _Php46 and above

3. What time do you usually buy a snack?

102 | Lami Deré Hub

_8:00-10:00am _10:00-12:00am _12:00-2:00pm_ 2:00-4:00pm

4. How often do you buy a snack in a day?

_Once _ Twice _Thrice _ More than Four

5. Do you eat sweet potato (kamote)?

_Yes _No

6. Aside from sweet potato, what other filling would you prefer?

_Ube _Potato _Cassava _Lutya

7. How much are you willing to pay for fried mashsweeto?

_Php15 _Php16 _Php17 _Php18

8. What do you prefer to have as a sauce?

_Condense Milk _Ketchup _Melted Tablea _Spicy Ketchup

If others, please specify________________

9. Would you like fried mashsweeto with drinks?

_Yes _No

10. If Yes, what flavor of drink would you prefer?

_Orange _Mango _Pineapple _Four Seasons

If others, please specify_______________

Thank you for the cooperation.

103 | Lami Deré Hub

Tally Sheets and Tabulation

Q1. How much is your daily allowance?

INDICATIONS RESPONDENTS PERCENTAGE

Php 10-20 IIIII-I 6%
Php 21-30 IIIII-IIIII-IIII 14%
Php 31-40 IIIII-IIII 9%
Php 41 and above IIIII-IIIII-IIIII-IIIII-IIIII- 71%
IIIII-IIIII- IIIII- IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-I
TOTAL 100 100%

Q2. How much is your budget for snacks?

INDICATIONS RESPONDENTS PERCENTAGE

Php 5-15 IIIII-IIIII-IIIII-IIIII-IIIII- 30%
IIIII
Php 16-30 IIIII-IIIII-IIIII-IIIII-IIIII- 44%
IIIII-IIIII-IIIII-IIII
Php 31-45 IIIII-III 8%
Php 46 and above IIIII-IIIII-IIIII-III 18%
TOTAL 100 100%

104 | Lami Deré Hub

Q3. What time do you usually buy a snack?

INDICATIONS RESPONDENTS PERCENTAGE

8-10 am IIIII-IIIII-IIIII-IIIII-IIIII- 46%
IIIII- IIIII-IIIII- IIIII-i
10-12 pm IIIII-IIIII-IIIII-IIII 19%
12-2 pm IIIII-III 8%
2-4 pm IIIII-IIIII-IIIII-IIIII-IIIII-II 27%
TOTAL 100 100%

Q4. How often do you buy a snack in a day?

INDICATIONS RESPONSENTS PERCENTAGE

Once IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 55%
IIIII-IIIII-IIIII-IIIII-IIIII
Twice IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 38%
IIIII-III
Thrice IIIII 5%
More than Four II 2%
TOTAL 100 100%

105 | Lami Deré Hub

Q5. Do you eat sweet Potato?

INDICATIONS RESPONDENTS PERCENTAGE

YES IIIII-IIIII-IIIII-IIIII-IIIII- 91%
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-I
NO IIIII-IIII 9%
TOTAL 100 100%

Q6. Aside from sweet Potato, what other filling would you prefer?

FILLING RESPONDENTS PERCENTAGE

UBE IIIII-IIIII-IIIII-IIIII-IIIII- 39%
IIIII-IIIII-IIII
POTATO IIIII-IIIII-IIIII-IIIII-IIII 24%
CASSAVA IIIII-IIIII-IIIII-IIIII-IIIII- 36%
IIIII-IIIII-I
LUTYA I 1%
TOTAL 100 100%

106 | Lami Deré Hub

Q7. How much are you willing to pay for Fried Mashweeto?

INDICATIONS RESPONDENTS PERCENTAGE

Php 87 IIIII-IIIII-IIIII-IIIII-IIIII- 87%
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-II
Php 5 IIIII 5%
Php 4 IIII 4%
Php 4 IIII 4%
TOTAL 100 100%

Q8. What do you prefer to have as a sauce?

INDICATIONS RESPONDENTS PERCENTAGE

Condense Milk IIIII-IIIII-IIIII-IIIII-IIIII- 41%
IIIII-IIIII-IIIII-I
Ketchup IIIII-II 7%
Melted Tablea IIIII-IIIII-II 12%
Spicy Ketchup IIIII-IIIII-IIIII-IIIII-IIIII- 38%
IIIII-IIIII-III
Others:
Honey I 1%
Melted Cheese I 1%
TOTAL 100 100%

107 | Lami Deré Hub

Q9. Would you like fried Mashweeto with drinks?

INDICATIONS RESPONDENTS PERCENTAGE

YES IIIII-IIIII-IIIII-IIIII-IIIII- 92%
IIIII=IIIII-IIIII-IIIII-IIIII
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-II
NO IIIII-III 8%
TOTAL 100% 100%

Q10.If Yes, what flavor of drinks would you prefer?

INDICATIONS RESPONDENTS PERCENTAGE

Orange IIII-IIIII-IIIII-IIIII-IIIII- 28%
III
Mango IIIII-IIIII-I 11%
Pineapple IIIII-IIIII-IIIII-IIIII-IIIII- 33%
IIIII-III
4 seasons IIIII-IIIII-IIIII-I 16%
None IIIII-I 6%
Other:
Apple I 1%

Coke II 2%
Grapes II 2%
Choco I 1%
TOTAL 100 100%

108 | Lami Deré Hub