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Bauan Technical High School 10

GROUP 9

ESTABLISHMENT OF OMEZZA IN BAUAN, BATANGAS

Dimalibot, Hanah Jane H.

Matienzo, Rheyzel

Silang, Cris Jhune

ABM-D
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Chapter I

BACKGROUND OF THE STUDY

Introduction

The proponents come up to this business because first of all they want a

new and unique product to the market, they also want a nutritious and high quality

of omelet. It envisions to be the leading provider of a high quality but affordable

omelet in the market. Continues innovation of the product will be processed to

supply the needs of customers. It will help the egg vendors in terms of increasing

the consumption and demand of egg in the city.

The proponents under the company and product name OMEFE’ that

focuses on manufacturing and selling of the product with unique and innovative

design ideas. The company product is made up of omefe’ establishment. The

company aims to give unique and high quality product that will surely alline and

captive the heart of the customers.

The proponents studied the business environment and the competitors in

the proposed area and how the product will create impact is the line of this industry.

After gathering and analyzing the data, the proponents believed that starting a

business is rough road, expecting to have many problems and errors that will

occur. Even though the proponents expect problems, they are aware for their

business.

Food is any nutritious substance that people eat or drink to maintain life and

growth. Humans are omnivorous animals that can consume both plant and animal
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products. There are four (4) basic food energy sources the fats, proteins,

carbohydrates and alcohol. In biochemistry, fat is a generic term for a class of

lipids. Fats are produced by organic processes in animals and plants. All fats are

insoluble in water and have a density significantly below that of water. A protein is

a complex, high molecular weight organic compound that consists of amino acids

joined by peptide bonds. Protein is essential to the structure and function of all

living cells and viruses. Carbohydrates are chemical compounds which act as the

primary biological means of storing or consuming energy; other forms being via fat

and protein.

The proponent’s main ingredient is egg. It is produced from poultry, it has a

hard shell of calcium carbonates enclosing a liquid white, a single yolk and an air

cell. While the other ingredients are cheese, bell pepper and ham. Cheese is a

dairy product derived from milk that is produced in a wide range of flavors, textures,

and forms by coagulation of the milk protein casein. Bell pepper is a cultivar group

of the species Capsicum annuim. They have different colors but only the red and

green bell pepper were used in the proponent’s product. The ham is pork from a

leg cut that has been preserved by wet or dry curing, with or without smoking. As

a processed meat, the term “ham” includes both whole cuts of meat and ones that

have been mechanically formed.

Brief Background of the Study

As the proponents introduce the uniqueness of omezza which is the menu

of omefe’, it will catch the attention of the customers who wants pizza and omelet
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especially the people who are walking nearby the location of their business. The

only flavor of their omezza is ham and cheese, while the milk tea have 3 flavors, it

is the wintermelon, classic milk bubble tea with tapioca pearls and fruit ice tea. The

coffee also have 3 flavors, the espresso, café latte and cappuccino.

As of now, there is no similar business established in Bauan, Batangas that

offers just like the proponent’s business, the combination of omezza with coffee

and milk tea. That is one of the reason why the proponents come up to this

business.

One of the specialty of their menu is the fragrance of bell pepper, it helps

the product to be popular in the market. And also the when the product is divided

to pieces the cheese were oozing and melting. And omezza came to the word

omelet and pizza.

The rationale of this study is to provide healthy, delicious, clean, nutritious,

affordable and high quality product with a twist. This product can satisfy people’s

craving on coffee, milk tea and omelet.

Vision

Omefe’ envisions to be the leading café of healthy and delicious food

product in the year 2025. They also want to be the best business in the market.

The proponents aims to attract and gain the trust of many customers with the

proponent’s business.

Mission Statement
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Omefe’ aims to produce and sell healthy, delicious, clean, nutritious, and

high quality of omelet, coffee and milk tea for the clientele’s. To earn the trust and

loyalty of the customers, to improve the business. And to provide the best quality,

reasonably priced products in the food industry.

Objectives of the Study

To improve the overall effectiveness of the Omefe’ Manufacturing

Company, aims to satisfy customers, build a strong influence in the market and

grow steadily by the following objectives:

 To determine the possible contributions of the product to the society.

 To maintain the company’s ability to supply the unique taste of

omezza, a menu in omefe’ with coffee and milk tea.

 To determine the technical feasibility of the study in creating the best

strategies and location of the business.

 To determine the business capability to earn profit.

Scope and Limitation

This feasibility study focus on establishment of omefe’ in Bauan, Batangas.

The target market potential clients or customers are aged 7-50. The omefe’ can

provide a good service to the customers. It is limited up to the availability of the

customers and their ability to introduce it to others. The study is supposed to gather

data to what the customers prefer to improve the proponent’s business.

The market aspect is the most important to know in a business. It includes

the target market and different methods used. It describes market situation where
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the product can be identified through demand analysis. The limitation of this market

aspect is that the proponents will not be able to gather other relevant information

from the respondents in this area.

The technical aspect is one of the essentials of this study because this

factor responds to the technicalities and basic structure of the proposed study. The

proponents need to determine the pricing nowadays in order to determine the

number of raw materials and equipment needed. The proponents must meet the

standards to satisfy the customers.

The management aspect is one of the important aspects in establishing a

business. The qualification and description for shall be included in the company’s

regulation. Management should plan all the activities to perform to become more

productive and competitive in the industry.

The financial aspect is a business include forecasting and planning,

monitoring cash flow, accounting, decision making and measuring results. The

prices of their product will be accordingly to the price of raw materials used. These

will identify if the business of the proponents will be stable in the market. The

proponent’s capital will be divided to 50% and 50%. Their capital will be 3 million

and that is from their own money.

The socio economic aspect is the study of how economic activity affects the

performance of the proposed business. Payments to the permits, licenses, taxes

and other fees can help the government. As a business they can contribute to the

community by giving work to the unemployed people. The firm would practice the
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proper waste management so that it can help the environment of the proponents

business. The dump truck will come in Tuesdays and Saturdays, 10 o’clock in the

morning.
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CHAPTER II

MARKET STUDY

Careful analysis of the market situation should be the first consideration of

an individual or group who has decided to venture in a business. Since, success

of a business depends on its marketing. A market analysis studies the

attractiveness and the dynamics of a special market within a special industry.

Without marketing the proponents may offer the best products, but none of the

clientele’s would know about it. This is why the proponents had a chance to know

if their business would be popular to the market.

Objectives of the Study

1. To determine the profit of omefe’ in the market.

2. To determine the target market and marketing strategies that would be

used of the proposed business.

3. To know the proposed business strengths, weaknesses, opportunities

and threats.

4. To determine the viability of the product to the market.

Target Market

Target market is a specific consumer segment within the business which

the business wants to sell its products and direct its marketing efforts to. The target

market of the proposed business are the people aged from 7-50 years old who

wants coffee, milk tea and omelet. The proponents business is located at S. Ylagan
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Poblacion Bauan, Batangas. This can be reach through facebook page and word

of mouth to inform others about the proposed business.

SWOT Analysis

The proponents determine this analysis to identify the strengths,

weaknesses, opportunities and threats. It will also help the proponents to know

what will be the status of their business.

Strength

Strength is a resource or capacity the organization can use effectively to

achieve its objectives. It is the advantages of the proponents business.

Location of the Business. The proponent’s consider this as a strength

because the location of their business is near the church, school and also beside

the main road. It can help the business to be popular to the customers. They can

gain more profit.

Product and Service Quality. The proponents can assure that the

business product will satisfy the customer’s cravings in omelet, coffee and milk tea.

When it comes to service, the proponents will make sure that the customers will

not wait for too long when it comes on ordering food.

Weaknesses

Weaknesses is a limitation, fault, or defect in the organization that will keep

it from achieving its objectives. It may be the disadvantage of the proponents

business.
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Lack of Adequate Skills/ Knowledge. As a fresh graduate, and still young

at the age, the proponents lack the experience in managing the business, this may

serves as one of the weaknesses of the proponents firm. They will encounter

problems that are new in their perception but through training and development,

they will be able to overcome all those weaknesses.

Opportunities

Opportunities is any favorable situation in the organization's environment. It

is usually a trend or an overlooked need that increases demand for a product or

service and permits the firm to enhance its position by supplying it.

Modern Technology. Most of people are addicted to different social media

for many purposes. The proponents will create pages, promote their product

through posting in social media. The customers will know about the proponents

business if they are social media lover.

Word of Mouth. It is one of the opportunities of the proponents because it

is one of the best advertising. It can help the proponents to grow and to be popular

in the market. It can spread though gossips.

Threats

Threats is any unfavorable situation in the organization's environment that

is potentially damaging to its strategy. The threat may be a barrier or anything

external that might cause problems.


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Imitation of the Products. The world is becoming more and more

technologically advance impossible now is just a work, so it is just easy for the

competitors to imitate the product that proponents after.

Increasing Cost of Raw Materials. This could be a threat to a new

business entrant in the industry because if the cost of materials increases and the

firm is not yet ready, it may cause low production. Though there is an increase of

raw materials, the business proponents will make sure that it will not affect the

quality of the product and also the price of the product will not be affected.

Substitute Product. This is a threat to the business proponents because it

would cause permanent injury with its illegitimate brand name not only in terms of

revenue but also in terms of its image with substandard products.

Competitors. It is everywhere, it is a threat to the business proponents.

There are competitors that have been on the market longer than the proponents

business. And also there are competitors that is more popular to the customers,

so they must be ready to face all of them.

Marketing Program Strategies

In business, marketing strategy is one of the crucial things to be done

appropriately and necessitates a lot of understanding with the 4p’s product, price,

place and promotion of the business. The business proponents planned on doing

a facebook page, flyers, tarpaulin, giving a free taste and word of mouth.
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Nutrition Facts of Omezza

Amount per 100 grams

Calories 183 % Daily Value

Total Fat 17 g 25.7%

Saturated Fat 8.7 g 11.8%

Polyunsaturated Fat 1.4 g

Monounsaturated Fat 5.5 g

Trans Fat 0.7 g

Cholesterol 157 mg 20.8%

Sodium 599.7 mg 27%

Potassium 167.3 mg 4.3%

Total Carbohydrates 2.35 g 0%

Dietary Fiber 2.1 g 2.1%

Sugar 1.7 g

Protein 14.5 g 38%

Vitamin A 16% Vitamin C 169%

Calcium 38% Iron 6.3%

Vitamin D 10.3% Vitamin B-6 10%


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Cobalamin 12.3% Magnesium 4%

The proponent’s nutrition facts stated that there are many vitamins that is

contained to their product. It proves that the proponents business is nutritious and

healthy.

Product

The proponents want to create a business that is unique in the market. This

suits to everyone because it can be a substitute to the breakfast and snack. It is

also good for the people who are maintaining a good body. The proponents come

up to this business because they want to sell a unique and affordable product.

Product Quality

The business proposed by the proponents has a delicious, nutritious, high

quality and affordable product. It can be a snack and also a breakfast, your tummy

will be full. If they want coffee, milk tea and omelet with the flavor of ham and

cheese, they can go to the proponent’s location to buy their product. The

customers will try to go to the proponent’s café, the omefe’. Omefe’ offers coffee

with omezza, milk tea with omezza and it can be coffee, milk tea and omezza only.

Product Category

Omelet, coffee and milk tea is very popular to everyone. When the time

goes by, inflation rate is continuously rising. So, the proponents create a substitute

for breakfast and snack which is the Omefe’, a café which has coffee, milk tea and

omelet. The proposed product is going to be manufactured 48 per day.


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Business Name

The proponents proposed a business which is called Omefe’. Omefe’ is

came from the word omezza and café. This is a nutritious, delicious and have a

high quality product. The customers will not regret to buy the proponents product.

Without the business name, a firm could not identify its product. The proponents

decide to create a business name in order to be easily recognized by the

customers.

Business Name

Figure 2.1
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Logo

Figure 2.2

Packaging

Figure 2.3

Packaging is where the product was placed to be served to the customers,

if they want to make take-out orders, the proponents decided to pack the product

in a hinge plastic container, while the coffee and milk tea will be put in take-out cup

carriers. If they want to eat and drink it in the proponent’s location then, the

proponents will provide them a saucer and a cup.

Pricing

Pricing is the process whereby a business sets the price at which it will sell

its products and services, and may be part of the business’s marketing plan.

Selling Price of Omezza 2 in 1 (Per Piece)

Table 2.1

Manufacturing Cost Price (Php)


Direct Material Used 48
Indirect Material Used 4
Labor Cost 11
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Total Cost/Unit 63
Markup (20%) 13
Selling Price-Consumers (VAT Exc) 76
Input VAT 12% 9
Selling Price Consumers (VAT Inc) 85

MENU PRICE
COFFEE
Espresso 100.00
Café Latte 110.00
Cappuccino 79.00
MILK TEA
Wintermelon 110.00
Classic Milk Bubble Tea with Tapioca 90.00
Pearls
Fruit Iced Tea 80.00

The selling price of the product are computed based on the raw materials

and labor cost. The mark-up is included to add the value of the product and for

business to grow. Proponents put 20% mark-up with input vat of 12% to get the

selling price of the product.

Competitive Pricing

Competitive pricing is the process of selecting strategic price points to best

take advantage of a product or service based market relative to competition. Using

the competitor’s prices to set one’s own.


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Related Price of Competitor

Table 2.2

Purple Beetle Café


Milk Tea 16 oz. 22 oz.
Pearl Milk Tea 90 110
Okinawa 100 120
Wintermelon 100 120
Taro 100 120
Hokkaido 100 120
Cookies and Cream 100 120
Chocolate 100 120
Salted Caramel 100 120
Hazelnut 100 120
Matcha 100 120
Cheesecake and Pearl Milk Tea 16 oz. 22 oz.
Wintermelon 120 140
Taro 120 140
Brown Sugar Madness
Brown Sugar w/ Fresh Milk 150
Brown Sugar Fresh Milk Tea 160
Fruit Tea 16 oz. 22 oz.
Strawberry 100 120
Mango 100 120
Banana 100 120
Green Apple 100 120
Raspberry 100 120
Add Ons
Pearl 15
Oreo 15
Coconut jelly 20
Coffee Jelly 20
Cheesecake 25
Scoop of Ice Cream 25
Brown Sugar Pearl 25
Hot Beverages
Espresso 80
Americano 90
Café Latte 110
Cappuccino 120
Hot Choco 120
Hot Mocha 130
Caramel Macchiato 130
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Hazelnut Flavored Coffee 130


Salted Caramel Flavored Coffee 130
Hot Green Tea Latte 130
Hot Tea 70
Kapeng Barako 80
Cold Beverages
Iced Americano 105
Iced Latte 125
Iced Cappuccino 125
Iced Choco 125
Iced Mocha 145
Iced Green Tea Latte 145
Iced Caramel Macchiato 145
Iced Hazelnut Flavored Coffee 145
Iced Salted Caramel Flavored Coffee 145
Smoothies
Banana 160
Banana Strawberry 170
Strawberry 160
Mango 170
Choco Banana 170
Oh Frappe
Coffee-Based
Hazelnut 220
Mocha 220
Salted Caramel 220
Java Chip 220
Vanilla-Based
Chocolate Chip 220
Cookies and Cream 220
Strawberry 220
Green Tea 220
Mango Graham 220
Oh Sundae
Chocolate Sundae 210
Cookies and Cream 210
Mango 210
Strawberry 210
Banana Split 210
Cheesecakes
Blueberry Cheesecake 125
Cookies and Cream 125
Salted Caramel 125
Matcha Green Tea 125
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Chocolate Cheesecake 125


Refreshments
Bottled Water 40
Iced Tea 70
Mango Juice 70
Pineapple Juice 70
Classic Lemonade 70
Purple Lemonade 70
Green Lemonade 70
Cucumber Lemonade 70
Lychee Lemonade 70
Blue Lemonade 70
Red Lemonade 70
Soda in Can 60

Hebrews Café
Ice Blended Coffee
Caramel 99
Hazelnut 105
Toffee Mocha 99
Cookies And Cream 115
Chocolate Chip 115
Coffee Jelly 115
Salted Popcorn 115
Ice Blended Non Coffee
Banana Chocnut 95
Choco Mint 99
Mango Graham 105
Matcha Frappe 115
Creme Brulee 115
Strawberry Donut 115
Blueberry Cheesecake 120
Hot Drinks
Americano 79
Cappuccino 79
Café Latte 79
Hot Chocolate 85
Matcha Latte 115
Mocha 89
Caramel 99
Cold Drinks
Iced Latte 95
Iced Mocha 89
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Iced Coffee 79
Iced Caramel Macchiato 99
Fruit Slush
Lemon Cucumber 85
Honey Lemonade 85
Passion Mango 85
Blue Lychee 85
Green Apple 85
Sandwich
Hebrews Sandwich 115
Egg & Tuna 95
Tuna Applemelt 95
Cheesy Pineapple 95

BO’S Coffee

Breakfast
Platters
Bo’s Breakfast Platter 250
Bacon Breakfast Platter 175
Ham Breakfast Platter 175
Sausage Breakfast Platter 175
Corned Beef Breakfast Platter 175
Pancake Platter 175
Sandwiches
Spam & Egg Sandwich 155
Ham & Egg Sandwich 155
Omelettes
Vigan Longganisa Omelette 195
Sausage & Cheese Omelette 195
Grilled Sandwiches
Grilled Bacon Lettuce & Tomato 205
Sandwich
Grilled Hawaiian Cheese Sandwich 195
Grilled Tuna Cheese Sandwich 195
Grilled Triple Cheese Sandwich 185
Brewed Coffee
Drip 95 110 125
French Press 110
Espresso
Solo Doppio
Espresso 105 120
Espresso Macchiato 105 120
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Hot & Iced


Caffe Americano 110 125 140
Cappuccino 120 135 150
Caffe Latte 120 135 150
Caffe Mocha 135 150 165
Caramel Latte 145 160 175
White Chocolate Mocha 145 160 175
Philippine Coffee Origins
Hand Pour or French Press
Mt. Kitanglad/Mt. Apo/Mt. 130
Matutum/Sagada
Benguet (Atok/Ampucao) 140
Froccino
Iced Blended Coffee
Mocha 140 155 170
Caramelo 140 155 170
Cookies n’ Cream 150 165 180
Coffee Jelly 160 175 190
White Chocolate Mocha 160 175 190
Freeze
Non-Coffee Blended Beverages
Artisanal Chocolate 140 155 170
Strawberry 140 155 170
Vanilla 140 155 170
Cookies n’ Cream 145 160 175
Matcha Green Tea 175 190 205
Signature Beverage
Cold White Brew 145
Iced Creamy Latte 145
Signature Chocolate
Hot 130 145 160
Iced 130 145 160
Shaken Iced Tea
Tropical Breeze Tea 145
Peach Mangga Berry 150
Apple Chia Black Tea 155
Iced Dalandan Black Tea 125
Tea Latte
Matcha Green Tea Latte 155
Hot Tea
Tea Bag 125
Loose Leaf Tea 125
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The table contains the biggest competitor of the proponents business.

There is uniqueness of the proponent’s product because it is the first time that they

created a combination of egg and pizza.

Sales Assumption of Omezza, Coffee and Milk Tea (In Peso)

Year Daily Weekly Monthly Annually


2021 4,080 24,480 97,920 1,175,040
2022 4,488 26,928 107,712 1,292,544
2023 4,937 29,621 118,483 1,421,798
2024 5,431 32,583 130,331 1,563,978
2025 5,974 35,841 143,364 1,720,376

Channel of Distribution

It is where the product transferred, first is the supplier, then manufacturer

and finally to the customers. Good relationship with them can save the time that

will be consumed for the distribution of the proponent’s product.

Supplier Manufacturer Customers

Channel of Distribution is the path through which goods and services was

given by the supplier to the manufacturer then serving it to the customers. The

supplier of raw materials were located in the market of Bauan Batangas. And then

it would be delivered to the store in S. Ylagan Poblacion Bauan, Batangas. It is

along the high way where a lot of people passing by.

PROMOTION
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Promotion looks at many ways marketing strategies agencies disseminate

relevant product information to consumers and differentiate a particular product or

service. There are many promotion offers by the Omefe’ Company, just like,

seasonal 5% discount when celebrating (Christmas, New Year, Father’s Day,

Mother’s Day and Valentine’s Day). They also have raffle every founding

anniversary of the company and sales promotion every three months, buy 1 get 1

free.

PROMOTION MIX

The promotion mix is a set of different marketing approaches that marketers

develop to optimize promotional efforts and reach a broader audience. The

marketer’s task is to find the right promotion mix for a particular brand. The

business proponents think of many strategies or techniques on how their business

will be popular in Bauan, Batangas. It includes creating facebook page, flyers,

tarpaulin, spreading information about the business of the proponents through

word of mouth and lastly is the free tasting.

What Who When Where How Budget

Facebook Proponents Before 5 Internet/ Created by Php


Page days of Social the 600.00
operation Media proponents
to be
popular on
the online
world.
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Flyers Proponents 5 days Public Created by Php


before the Market and the 2,000.00
operation Different proponents
streets to be given
over
Bauan,
Batangas
and the
information
of the
business.

Tarpaulin Proponents 5 days Public Created by Php


before Market and the 800.00
operation Different proponents
streets and to be
Barangays posted in
Bauan,
Batangas
where
many
people
passes by.

Word of Proponents 1 week Different Telling to ----


Mouth before the Barangays the people
operation about the
new
business in
the market.

Free Proponents It will start In the Created by Php


Tasting during the business the 1,000.00
grand location, proponents
opening of Kapitan to have
the Ponso St. customers.
proponent’s Bauan,
business Batangas
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Facebook Page

Figure 2.4

Flyers

Figure 2.5
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Tarpaulin

Figure 2.6
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CHAPTER III

TECHNICAL STUDY

The aspect of the study looks at the technical description of the product, the

product process and all the other related technical concerns. It includes the

process of how the product has been developed including the daily production and

process. The development of specific technical feasibility criteria can be useful to

organize the information properly, increase overall transparency, and promote a

stronger base for the recommendations provided at the end of the appraisal phase.

OBJECTIVES OF THE STUDY

1. To identify the description, uses and benefits of the proposed product.

2. To determine the production schedule and time needs for the production

process.

3. To identify the essential equipment, facilities and materials needed for

the production of the product.

4. To identify the proper location for the business and the production of the

product.

5. To lessen the waste and dispose the waste properly.


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PRODUCT DESCRIPTION

Coffee and egg is a favorite breakfast, a light meal taken in the morning.

Egg recipe, usually stands out among others breakfast since it has its own distinct

and tasty flavor. Milk tea is a favorite drinks and snacks of Filipino, it is popular in

terms of “pasalubong” and there are different flavor of this. So the business

proposed the omefe’, it can be a snack or a breakfast. The proponent’s business

is available on Monday to Saturday. Sunday is the rest day.

USES OF THE PRODUCT

Omefe’ is a café that can give the customers good appetite and especially

to make the body healthy and nutritious. The business of the proponent’s, omefe’

is not just a café shop that can full your tummy, it also helps the body to be more

energetic in any activity.

PRODUCTION PROCESS

1. Preparation of the ingredients and materials. The proponents need to

prepare all the ingredients they need so that they can make their product. The

ingredients they need are butter, egg, cheese, bell pepper, ham, black pepper, salt

and oil. The materials needed are knife, chopping board, whisk, bowl, plate, turner,
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grater, frying pan. This process will consume of 30 minutes and can be done by

both of them.

2. Slicing of ham and bell pepper. This process need to cut so that it will

become a small pieces. This process will consume 20 minutes done by worker 1.

3. Frying of bell pepper and ham. This process need to fry the bell pepper

to be cooked. It is for the toppings of omezza. This process will consume 20

minutes done by worker 2.


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4. Crack the egg, put salt and black pepper then stir well. This process

need to crack the egg, then after that put a little bit of salt and black pepper so that

the egg will be tasty and then stir it well. This process will consume 20 minutes

done by worker 1.

5. Put butter in the frying pan. Instead of oil, they put butter to cook the

omezza. This process will consume 5 minutes done by worker 2.


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6. Put the egg in the frying pan. After putting the butter, put the egg so

that it will be cooked. This process will consume 5 minutes done by worker 1.

7. Put the bell pepper and ham in one side, then grate the cheese. This

process should be done while the egg is in the frying pan so that the bell pepper

and ham will cling in the egg and the cheese will melt. This process will consume

10 minutes done by worker 2.

8. Fold the egg in one side. This process should fold the egg in one side

so that it will be an omelet style. This process will consume 20 minutes done by

worker 1.
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9. Put the finished product to the package. After they done cooking their

product, they put it in their packaging. This process will consume 30 minutes done

by both of them.

10. Put toppings in the finished product. After putting the product in the

package they will put again the bell pepper, ham and grate cheese so that it will

become attractive to the eyes of customers. After that they packaged it properly.

This process will consume 20 minutes done by worker 2.

11. Cleaning. After they finished the packaging they will clean the area.

This process will consume 20 minutes done by both of them.


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PROCESS FLOW CHART

Preparation Cleaning Put toppings in


finished product
(8:00-8:30 AM) (3:30-4:00)
Worker No. 1
Worker No. 1 Worker No. 2

Wore

Slicing Put in packaging


Worker No. 1 Worker No. 2
Figure 3.1

Process Flow Chart

Frying Figure 3.1 Folding egg

Worker No. 2 Worker No. 1

Stirring Put the toppings

Worker No. 1 Worker No. 2

Put the butter Lunch Break Put the egg

Worker No. 2 (12:00-1:00 Worker No. 1


PM)
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PRODUCTION SCHEDULE

In the first year of operation shows the production schedule of the Omefe’

yearly starting 2021 to 2025. It shows the daily, weekly, monthly and annually

production with 10% increase every year. In 2021 - 2025 it increases based on its

percentage because proponents believe that it will be profitable in the future year.

Production Schedule of Omezza, Coffee and Milk tea (per piece)

Year Daily Weekly Monthly Annually

2021 48 288 1,152 13,824

2022 53 317 1,267 15,206

2023 58 349 1,394 16,727

2024 64 384 1,533 18,400

2025 70 422 1,686 20,240

Table 3.1 indicates the production schedule of Omefe’ Company. The

company will start in 8:00 AM to 4:00 PM daily from Monday to Saturday.

Plant Location

In starting-up, business proponents should have the plant location were the

business is located. It is about the equipment and materials which the final product

will made.
Bauan Technical High School 10
Bauan Technical High School 10

Plant Size and Layout

The plant size and layout is important because it is where the customers

will go and avail the product of the proponents. The plant layout can affect the flow

of material and process. Here is the layout of the proponents business.


Bauan Technical High School 10

Kitchen Tools and Equipment

Tools and equipment are important in a production process. The equipment

must be properly checked to avoid accidents and delays of the productions. In

using the proper equipment it can lessen accidents inside the workplace.

Kitchen Tools and Equipment

Figure 3.3

Item Specification Quantity Unit Cost Total Cost


(Php) (Php)

Chopping Wooden 2 pcs. 93.00 186.00


Board Chopping
Board Wood
Cutting Board
Kitchenware
Chopping Pad

Fat Straws Metal Drinking 48 pcs. 13.26 636.48


Straws

Kitchen Knife Solingen Knife 2 pcs. 144.75 289.50

Stainless Steel

Scissors Tolsen 2 pcs. 89.00 178.00


Stainless Steel
Household
Scissor (8")
Bauan Technical High School 10

Bowls Fully 4 pcs. 37.28 149.12


Tempered

Whisk Electric 2 pcs. 150.00 300.00


Whisks Hand
Mixer

Frying Pan nonstick frying 2 pcs. 300.00 600.00


pan

Saucer Square Plate 20 pcs. 30.00 600.00


GV 8’’ pure
white

Toothpick Bamboo 1 box 49.50 49.50


toothpick

Dad Bear

Dome Lids Flat Dome 48 pcs. 2.04 97.92


Lids for tea

Turner Nylon slotted 4 pcs. 148.55 594.20


turner

Non slip
comfort grip

Strainer Universal Clip 1 pc. 61.17 61.17

Grater Stainless steel 2 pcs. 133.00 266.00

Stove EGS-DB 1 pc. 2,059.00 2,059.00


burner
Refrigerator RT 1 pc. 15,000.00 15,000.00
20FARVDSA
Bauan Technical High School 10

Air Air purifying 1 pc. 6,000.00 6,000.00


Conditioner 7000 BTU
Portable Air
Conditioner
with window
slider and duct
Exhaust Fan ASAHI EF 101 3 pcs. 1598.00 4,794.00
10IM 10’’ X
250 mm
Cup and Ceramic White 24 pcs. 30.64 735.36
Saucers

Apron Durable and 4 pcs. 40.27 161.08


waterproof

Espresso Automatic 1 pc. 10,193.44 10,193.44


Machine Capsul

Espresso Espresso 1 pc. 1,834.82 1,834.82


Grinder Grinder Filter

Automatic Aifia 1 pc. 552.49 552.49


Drip Coffee Commercial
Makers
Pumps Syrup Pump, 2 pcs. 40.78 81.56
black

POS System Black Color 1 pc. 9,938.61 9,938.61


15.6 inch

Shaking Cup Milk tea and 2 pcs. 210 420


Juice Shaker
1000 ml
Measuring Plastic Spoon 3 pcs. 7.65 22.95
Scoop

Powder 450 ml 3 pcs. 16.31 48.93


Container

Tapioca Plastic 1 pc. 5.61 5.61


Container disposable
Bauan Technical High School 10

Cooking Pot High Quality 1 pc. 96.84 96.84

Total 55,775.48

Cutting board. Is a durable board on which to place material for cutting. The

kitchen cutting board is commonly used in preparing food.

Kitchen knife. Knife that is intended to be used in food preparation. While much

of this work can be accomplished with a few general-purpose knives.

Scissors. A pair of scissors consists of a pair of metal blades pivoted so that the

sharpened edges slide against each other when the handles opposite to the pivot

are closed.

Whisk. Is a cooking utensil which can be used to blend ingredients smooth or to

incorporate air into a mixture, in a process known as whisking or whipping. The

wires are usually metal, but some are plastic for use with nonstick cookware.

Frying pan. Is a flat-bottomed pan used for frying, searing, and browning foods.

Larger pans may have a small grab handle opposite the main handle.

Saucer. Is a small, rounded dish. Saucers that live under cups are useful for

catching drips from and protecting the table.

Bowls. A bowl is a round dish or container typically used to prepare and

serve food. The interior of a bowl is characteristically shaped like a spherical cap,

with the edges and the bottom forming a seamless curve.


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Toothpick. Is a small thin stick of wood, plastic, bamboo, metal, bone or other

substance with at least one and sometimes two sharp ends to insert between teeth

to remove detritus, usually after a meal.

Turner. A food turner with a broad blade used for turning or serving fish or other

food that is cooked in a frying pan.

Grater. A grater is a kitchen utensil used to grate foods into fine pieces. It was

invented by François Boullier in the 1540s, originally to grate cheese.

Stove. A stove is a piece of equipment which provides heat, either for cooking or

for heating a room, an apparatus for cooking or heating that operates by burning

fuel or using electricity.

Refrigerator. An appliance or compartment which is artificially kept cool and

used to store food and drink. Modern refrigerators generally make use of the

cooling effect produced when a volatile liquid is forced to evaporate in a sealed

system in which it can be condensed back to liquid outside the refrigerator.

Air Conditioner. An air conditioner is a system or a machine that treats air in

a defined, usually enclosed area via a refrigeration cycle in which warm air is

removed and replaced with cooler air.

Exhaust Fan. This instrument is used to pull odors, fumes, and moisture from an

area of the home, venting them outdoors for removal.


Bauan Technical High School 10

The table shows the kitchen equipment that are going to use in order to

create Omezza. With the help of the kitchen equipment it gives a benefit to the

business.

Office Furniture and Fixtures

Office furniture and fixtures is needed so that the customers and also the

proponents will be comfortable in their workplace, it can be used in a long term.

Office Furniture and Fixtures

Figure 3.4

Item Specification Quantity Unit Cost Total Cost


(Php) (Php)

New design
Tables and 5 3,058.04 15,290.20
metal table
Chairs

Total 15,290.20

Tables. It is an item of furniture with a flat top and one or more legs, used as a

surface for working at, eating from or on which to place things. Table, especially

one seating several persons, where meals are served and eaten, especially the

major or more formal meal.

Chairs. It is a piece of furniture used for sitting on and it can also be used for

standing on, if you can't reach something. They usually have four legs to support
Bauan Technical High School 10

the weight. Some types of chairs, such as the bar-stool, have only one leg in the

center. One of business furniture are chairs.

Office Supplies

Office supplies are important in keeping the operations in the office. This

office supplies is used for bookkeeping and for storage of supplies.

Office Supplies

Figure 3.5

Item Specification Quantity Unit of Unit Annual


Measurement Price Cost
(Php) (Php)
Ballpen Panda Crystal 1 Box 250.00 250.00
(Black)
Bondpaper HardCopy 2 Reams 267.00 534.00
(long) Legal
Bondpaper HardCopy 2 Reams 241.00 482.00
(short)
Calculator Acasia 3 Pieces 165.00 495.00
Fastener X-H853 2 Box 30.00 62.00

Folder Folder 14PTS 30 Pieces 5.00 150.00


(long) Paper fox
Folder Folder 14PTL 30 Pieces 4.00 120.00
(short) Paper Fox
Puncher YIZHIWANG 3 Piece 94.00 282.00
Receipts Receipt 36k 20 Booklets 13.00 260.00
XYH-W114
Record Valiant 300 4 Piece 59.00 236.00
Book leaves
Scissors Office scissor 2 Piece 24.00 48.00
Pencil Mongol #2 1 Box 73.00 73.00
50pcs
Total 2,992.00
Bauan Technical High School 10

Ballpen. This refers to a tool durable and essay to carry. It is for writing

performance for every use. A pen that has small metal ball as the point of transfer

of ink to paper. Ballpoint.

Bondpaper. Is a durable paper that is especially suitable for electronic printing

and use in office machines including copiers and network and desktop printers. It

is typically used for letterheads, business forms and a variety of documents

produced.

Calculator. Is a device that performs arithmetic operations on numbers. The

simplest can do only addition, subtraction, multiplication, and division. It is used for

making mathematical calculations.

Fastener. This refers the thing use to compile papers. It is normally used in a lot

of applications for their properties. It is used to create a non-permanent joints,

joints that can be removed or dismantled without damaging.

Folder. Is a folding cover on holder, typically made of cardboard, for storing loose

papers. Is a way to organize computer files it is a storage space where many files

can be placed into groups. It is a folded leaflet or a booklet made of folded sheets

of paper.

Puncher. A tool for making holes or indentations. A tool for circular or other

piercing, a leather punch.

Receipt. Is a packaging slip, shipping list, delivery list or customer receipt. It is a

document acknowledging that a person has received money or property in

payment following a sale or other transfer of goods or provision of service.


Bauan Technical High School 10

Record Book. Is a book that has records of the best or most remarkable

performance or achievements in a particular sport or activity- usually used

figuratively his long jump earned him a place in the record book.

Scissors. Is an instrument used for cutting cloth, paper and other thin material

consisting of two blades laid one on top of the other and fastened in the middle.

Pencil. Is an instrument for writing, consisting of a thin stick of graphite or a similar

substance enclosed in a long thin piece of wood or fixed in a metal or plastic case.

Maintenance Supplies

It is important to keep the workplace clean so that the workers can focus on

what they are doing.

Maintenance Supplies

Figure 3.6

Description Specification Quantity Unit Cost Total Cost


(Php) (Php)
Spray Transparent 3 pcs. 76.25 228.75
white
Toilet Brush Wings, white 1 pc. 82.90 82.90
w/ Holder
Broom Baguio City, 2 pcs. 93.50 187.00
wooden,
yellow
Dust Pan Black, plastic 2 pcs. 60.50 121.00
Mop Housewell, 1 pc. 406.75 406.75
wooden mop
set
Glass Negative 1 pc. 245.75 245.75
Cleaner general
Sponge Heavy duty, 5 pcs. 25.50 127.50
scrub sponge,
lily product
Bauan Technical High School 10

Dormat Animal skin, 2 pcs. 86.00 172.00


plain black
Tissue Joy, pink 4 pcs. 14.40 57.60
Trash Cans 360 degree 2 pcs. 120.00 240.00
Dishwashing Joy 250 ml 5 pcs. 30.00 150.00
Liquid
Dishwashing 1 Roll Non- 15 pcs. 20.00 300.00
Towel Woven Fabric
Washing
Cleaning
Cloth Towels
Kitchen
Towel

Fire ABC Type 1 P1,250.00 P1,250.00


Extinguisher
Total 3,569.25

Spray. Spray-and-vac cleaning is a “no-touch” method, cleaning is accomplished

without the need for workers to touch soiled surfaces with their hands.

Toilet Brush with Holder. Generally the toilet brush is used with toilet

cleaner or bleach. The toilet brush can be used to clean the upper area of the toilet,

around the bowl.

Broom. A broom is a kind of brush with a long handle. You use a broom for

sweeping the floor. A broom is a cleaning tool consisting of usually stiff fibers.

Dustpan. A dustpan, the small version of which is also known as a half brush and

shovel, is a cleaning utensil. The dustpan is commonly used in combination with a

broom or long brush. The small dustpan may appear to be a type of flat scoop.
Bauan Technical High School 10

Mop. A mop is a tool for cleaning a floor. Most mops have a long handle and a

sponge or bundle of absorbent strings on one end. It is used to soak up liquid, for

cleaning floors and other surfaces, to mop up dust, or for other cleaning purposes.

Glass Cleaner. Is the exterior cleaning of architectural glass used for structural,

lighting, or decorative purposes. It can be done manually, using a variety of tools

for cleaning and access.

Sponge. A sponge is a tool or cleaning aid made of soft, porous material. Typically

used for cleaning impervious surfaces, sponges are especially good at absorbing

water and water-based solutions. Kitchen sponges are used for cleaning dirty

surfaces.

Doormats. A mat is a piece of fabric material that generally is placed on a floor or

other flat surface. A doormat is a mat by a door which people can wipe their shoes

on when they enter a house, for people arriving to wipe their shoes on before

entering.

Tissue. It is a lightweight paper or, light crêpe paper. Tissue can be made from

recycled paper pulp.

Trash Can. A waste container is a container for temporarily storing waste, and is

usually made out of metal or plastic. Some common terms are dustbin, garbage

can, and trash can. A container that holds materials that have been thrown away.

Dishwashing liquid. It is usually a highly-foaming mixture of surfactants with low

skin irritation, and is primarily used for hand washing of glasses, plates, cutlery,

and cooking utensils in a sink or bowl.


Bauan Technical High School 10

Dishwashing Towel. Oftentimes, we think that any sponge and cloth would be

enough to clean our dishes with but it’s still better if we use an actual dishwashing

towel. These towels will clean your dishes faster and it’s important to make sure

that the dishes are without any food particles.

Fire Extinguisher. This is a tool use to extinguish small fire and use for safety and

emergency purposes.

Rent Expense

Rent expense is an account that lists the cost of occupying rental property

during a reporting period. The proponents decided to rent in the Kapitan Ponso St.

Bauan, Batangas. The size of the proponent’s rental building is 8 by 9.

Rent Expense

3.7

Year Monthly Annually


2021 10,000.00 120,000.00
2022 10,000.00 120,000.00
2023 10,000.00 120,000.00
2024 10,000.00 120,000.00
2025 10,000.00 120,000.00

Leasehold Improvements

Leasehold improvements are defined as the enhancements paid for by a

tenant to leased space. It is the renovation of the proponents to their rental building.
Bauan Technical High School 10

Leasehold Improvements

3.8

Leasehold Quantity Amount per Unit Price (Php)


Improvements
Cement 10 sacks 240 2,400
Hollow Blocks 30 pieces 10 300
Paint 10 liters 120 1,200
Faucet 2 pieces 150 300
Bulb 5 pieces 100 500
Door Repair 2 doors 15,000 30,000
Windows Repair 2 windows 3,000 6,000
Toilet Bowls 2 pieces 2,000 4,000
Stainless 1 piece 1,000 1,000
Lavatory
Labor 1 Carpenter & 350 per day 31,500 (3
Painter months)
Labor 2 Carpenter & 350 per day 31,500 (3
Painter months)
Labor 3 Carpenter & 350 per day 31,500 (3
Painter months)
Total 140,200.00

Direct Materials

It is the ingredients that is used in the making the product. The source of

raw materials should be carefully analyzed to avoid delays in the production

process.
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Direct Materials of Omezza (2 in 1)

Figure 3.9

Items Quantity Specifications Unit Cost Total Cost

(Php) (Php)

Butter 1 small Dairy Crème 30.00 7.5

sachet

Egg 1 pc. White egg 6.00 6.00

Cheese 1 pack Eden 9.00 9.00

Bell pepper ½ green and Green and red 9.00 9.00

red

Ham 1 pc. Joshua’s Meat 4.5 4.5

Products

Black Pepper 1 pack “durog” 2.00 2.00

Salt 1 pack Iodized 2.00 2.00

Oil ¼ bottle Natural 5.00 5.00

Total 48.00

Indirect Materials

Indirect materials are materials which cannot easily be traced with the

finished product. Without indirect materials, the product would not be possible.
Bauan Technical High School 10

Indirect Materials

Figure 3.10

Description Quantity Unit Cost (Php) Total Cost (Php)

Hinge Plastic 24 4.43 106.32

Container

Take-out cup 24 4.59 110.16

Custom Coffee 24 3.06 73.44

Sleeves

Total 289.92

Utilities Expense

Utilities are important in the operation of the firm. It makes the

firm’s operation easier and more efficient. Utilities help the business to function

well.

Utilities Expense

Figure 3.11

Utilities Monthly consumption Annual consumption


(Php) (Php)
Electricity 3,500.00 42,000.00

Water 2,000.00 24,000.00

Telecommunication 1,500.00 18,000.00

LPG refill 600.00 7,200.00


Bauan Technical High School 10

Total 91,200.00

Electricity. First Bay will provide the electric supply needed for the production.

The business needed electric supply for it to have a good production since the

business offers product that requires the help of electrical equipment’s. Monthly

electric bill of the proponent’s business will be Php 3,500.

Water. Aqua Data Water District will provide the water supply. Water supply will

be needed by the employees of the firm for their personal usage such as water for

the comfort rooms and the lavatory. The water consumption will cost Php 2,000

monthly.

Telecommunication. Converge will provide the telecommunication service for the

proponent’s business. Telecommunication will help the manager to easily

communicate with customers and suppliers for the benefit of the firm. The monthly

bill of their telecommunication is Php 1,500.

LPG refill. Island Gas will be the proponent’s supplier for LPG refill. It will be need

by the business in making the product. It is used for cooking, the LPG consumption

will be cost Php 600 monthly.

Waste Management

In a business, waste management is important. Establishment of Omefe’

will have their waste collected in every Tuesday and Saturday at 10 o’clock in the

morning, the garbage truck will collect it to make sure the cleanliness of the

proponent’s business. Their trash cans will be segregation, the biodegradable,


Bauan Technical High School 10

non-biodegradable, bottles and papers. This should always be included from the

day the business was planned. The proponents decided to sell the non-

biodegradable wastes like plastics, cans, bottles and the likes to junkshops. It can

be helpful to the proponents because they can make a profit by selling that.

Direct Labor Requirement

Direct labor is considered to be a direct cost. It varies directly with revenue

or some other measure of activity. The firm will have 1 manager/bookkeeper, 1

cashier, and will hire 2 cooks. They will work 8 hours from Monday to Saturday.

Direct Labor Requirement

Figure 3.12

Job No. of Daily Weekly Monthly Annually


description workers
Manager/ 1 373.00 2,238.00 8,952.00 107,424.00
Bookkeeper
Cashier 1 280.00 1,680.00 6,720.00 80,640.00
Cook 2 600.00 3,600.00 14,400.00 172,800.00
Total 360,864.00

Manager/Bookkeeper

Managers may be in charge of a department and the people who work in

it. In some cases, the manager is in charge of the whole business. The manager

will be the bookkeeper also and the bookkeeper is responsible in any

transactions of the business.


Bauan Technical High School 10

Cashier

A cashier works directly at a cash register and collecting payment.

Cook/Worker

A cook is a profession for individuals who prepare food for consumption in

the food industry. A cook is sometimes referred to as a chef, although in the

culinary world, the terms are not interchangeable.


Bauan Technical High School 10

CHAPTER IV

MANAGEMENT STUDY

Management study is the most effective type of leadership because it has

a high concern for both employees and tasks. It consists of job description, which

is a written statement that describes the duties, responsibilities and required

qualification of candidates.

Objectives of the Study

The general objective was to determine the management feasibility of

the project by identifying the appropriate form of business organization in its

compliance with the legal requirements for the business to operate. The

specification objectives were as to follows:

1. To determine the initial capitalization to be contributed by each partner

to start the proposed business.

2. To know from people time taken for preparation of omezza establishment

3. To identify the legal requirements of the proposed project.

4. To find out the new marketing strategy is correct or not.

5. To know the taste of the particular product.

Form of Business Ownership

In a Partnership, two or more people share ownership of a single business.

Like proprietorships, the law does not distinguish between the business and its
Bauan Technical High School 10

owners. They are sharing their own ideas to each other and they are helping each

other in decision making to have a good business. Their capital were agreed by

the partners. The partners should have a legal agreement that sets forth how

decisions will be made, profits will be shared, disputes will be resolved, how future

partners will be admitted to the partnership, how partners can be bought out, or

what steps will be taken to dissolve the partnership when needed. It can be

classified as a general partner.

Capitalization

Capitalization is the money that is needed in order to start a business

operation. Each partners will have their own share worth Php 3,000,000.00 that

will come from their personal savings. This will cover all the necessary cost from

the business transactions and operation. This capital will serve as the initial

investment for the tools, materials, equipment, supplies, and building cost needed

to operate the business.

Contribution of Partners

Proponents Capitalization
Dimalibot, Hanah Jane H. 1,000,000.00
Matienzo, Rheyzel Jane 1,000,000.00
Silang, Cris Jhune c. 1,000,000.00
Total Php3,000,000

Table 4.1 The table shows that the proponent’s capital were equally

divided worth Php 1,000,000.00 and the total of their capital were Php

3,000,000.00.
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Organizational Structure

Organizational structure is created to designate specifically member of the

management to a particular job, authority and responsibility within the company.

In the figure 4.1 shows that the top of the line structure partners will act as a

manager/bookkeeper to the business it will be responsible for the transaction of

the business and the operation firm. Under the manager is the cashier that assign

to ensure the customer’s purchase and to collect payment, the cook/worker is the

only one managing the production of omezza and who create the proponent’s

product which is omezza, the coffee and also the milk tea. They are the one who

cook and make the production process.

The organizational chart illustrates how the management distributes

authority and control to its personnel.

Organizational Chart

Manager/
Bookkeeper

Cashier Cook/Worker

Man Power Requirements

It clearly shows the direct relationships of the workers with the

manager who has the overall responsibility on managing both the revenue and
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cost element of the company’s income statement. The manpower should have

qualifications to fulfill the duties for the business.

Table 4.1

Man Power Requirements

Employees Needed Number Required


Manager/Bookkeeper 1
Cashier 1
Cook 2
Total 4

Job Description

The product manager is a responsible for the product planning and

execution throughout the product lifecycle, including; gathering and prioritizing

product and customer requirements, defining the product vision, and working

closely with engineering, sale, marketing and support to ensure revenue and

customer satisfaction goals are met.

The Product Manager’s job also includes ensuring that the product supports

the company’s overall strategy and goals. The responsibilities set vary depending

on position of the employee in the organization.

Manager/Bookeeper

 Train and supervise staff

 Ensure all food safety procedures are strictly adhered to according to

sanitary regulations
Bauan Technical High School 10

 Work closely with management to meet revenue objectives

 Implement appropriate strategies to resolve adverse trends and improve

sales

 Maintain safe working conditions

 Follow company policies and procedures regarding the handling of cash,

property, products and equipment

 Audit inventory levels to ensure product availability, and order products as

necessary

 Must balance budgets, revenue and expenses on a regular basis

 Responsible for payroll and paying outside food and supply accounts.

Cook/Worker

 Setting up, cleaning, and organizing work stations

 Cooking order according to food health and safety standards

 Monitoring multiple food orders as new orders arrive

 Dressing order for presentation

Cashier

 The ones who make the deposits to the bank each day.

 Must be familiar with restaurant software and be able to recognize the

various symbols and abbreviations used

 Taking orders from wait staff or computerized system

Job Specification
Bauan Technical High School 10

This product manager job specification template includes the list of most

important product manager’s duties and responsibilities. This product manager job

specification template is customize and ready to post to job boards. Use this

product manager job specification template to save time, attract qualified

candidates and hire best employees.

Manager/Bookkeeper

 Must be valuable in terms of decision making.

 Degree in Business Management or Masters in Business Administration.

 Good knowledge of different business functions.

 Strong leadership qualities.

 Excellent communication skills.

 Maintain up to date records.

 Prepare financial statement.

Cook/Worker

 Proven experience as cook.

 At least high school graduate.

 Ability to follow all sanitation procedures.

 Excellent physical condition and stamina.

 Probably NC II Holder.

Cashier

 Probably NC III Holder.


Bauan Technical High School 10

 Ability to effectively manage your time and prioritize tasks.

 Strong product knowledge and understanding of target customers.

Compensation

Compensation management is the act of distributing some type of

monetary value to an employee for their work by means of the company’s policy

or procedures. Financial motivation relates to the way in which an organization

uses compensation structure to motivate workers to high performance. Companies

use a variety of pay structures depending on the type of work environmental and

the nature of the work being performed. Also refers to systematic approach to

providing monetary value to workers. In other words, it is money an employer gives

in exchange for the work they do. It may help fill job vacancies, improve work.

Table 4.2

Compensation

Position No. of Monthly Annually


Workers Compensation Compensation
Manager/ 1 8,952.00 107,424.00
Bookkeeper
Cashier 1 6,720.00 80,640.00
Cook 2 14,400.00 172,800.00
Total 360,864.00

Table 4.3 shows the schedule of compensation that each employee will

receive per month and annually. The manager/bookkeeper will receive 8,952.00

monthly, the cashier will receive 6,720.00 monthly, and the cook/worker will

receive 14,400.00 monthly.


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Other Benefits

Compensation can be extended to other forms of remuneration benefits

other than salaries and wages such as 13th month pay, SSS, Pag-ibig, and

PhilHealth in order for the employees to attain the outmost safety, security and to

give them for the purpose of motivation and the same time, a compliance with the

government employee.

Table 4.3
SSS Contribution
Position No. EMPLOYEE-EMPLOYER
Social Security EC Total Contribution
ER EE Total ER ER EE Total
Manager/ 1 720.00 360.00 1,080.00 10 730.00 360.00 1,090.00
Bookkeeper
Cashier 1 520.00 260.00 780.00 10 530.00 260.00 790.00
Cook/Worker 2 1,160.00 580.00 1,740.00 10 1,170.00 580.00 1,750.00

Table 4.4
Phil Health Contribution
Position No of Workers Total Monthly Premium
Employee Share Employer Share

Manager/ 1 100.00 100.00


Bookkeeper
Cashier 1 100.00 100.00
Cook/Worker 2 175.00 175.00
Bauan Technical High School 10

Table 4.5

Pag-ibig Contribution

Job No of Monthly Contribution


Description Workers EE (2%) ER (2%)
Manager/ 1 8,952.00 493.00 493.00
Bookkeeper
Cashier 1 6,720.00 240.00 240.00
Cook/Worker 2 14,400.00 504.00 504.00

Organizational Policies

Business organizational set a certain rules and regulation to be followed in

order to maintain the discipline of the workers and that will lead to the success of

the employees, customers, retailers and suppliers policies. Omefe’ policies are:

1. Proper business ethics must always be observed in the workplace.

2. Worker must come to work before 8 in the morning and will out at 4 in the

afternoon.

3. Employees must always notify the manager if he/she will be absent for

the day.

4. Salaries and wages of the workers will be paid every 15th and 30th day of

the month.

5. When someone didn’t follow the policies of the business will have the

right punishment.
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Policies towards Customers

Made by the business regarding the business guidelines and principles

toward their customers. The policies are:

1. Filing legal documents should have done on or before the scheduled

date.

2. Registration must be done before accessing the facility resources.

3. Customers must present a valid Identification Card.

4. Customers cannot take a picture of the facility resources and researches.

Policies towards Suppliers

1. Maintain the confidentiality of information provided by both parties.

2. The ordered goods must arrived at the exact location and time.

3. The ordered goods must be fresh and new.

Legal Requirements

Must comply with government’s legal requirements. Since the business is

partnership the following are the steps to be done:

I. Registration of Barangay Micro Business Enterprise (BMBE)

To be a member of Barangay Micro Business Enterprise (BMBE), the following

requirements must be secured.

1. Mayors Permit
Bauan Technical High School 10

2. Bureau of Internal Revenue

3. Income Tax Return (ITR)

5. Sworn statement of Assets and liabilities supported by pertinent

documents.

6. Sanitary fee

7. Pictures of the place of business and its assets, other than cash,

receivables and intangibles.

8. Annual inspection fee

9. Tax payer identification number (TIN)

II. Registration of the Partnership to Securities and Exchange Commission

1. Obtain permit from the mayor’s office.

2. Register with the social security system (SSS)

3. Register Business name at the Securities and Exchange Commission

(SEC).

4. Obtain barangay clearance

5. Register Business with the bureau of internal Revenue (BIR)

III. Acquisition of Barangay Clearance


Bauan Technical High School 10

The propose business will be benefiting from the community where it is located,

thus it must return the favor by giving its right contribution in such community. It

should acquire a clearance from the barangay where the industry to be located for

it to be considered legal and legitimate.

IV. Acquisition of Barangay Clearance The proposed business will be benefiting

from the community where it is located, thus it must return the favor by giving its

right contribution in community. It should acquire a clearance from the barangay

where the industry to be located for it to be considered legal and legitimate. A

community tax amounting to Php_.00 must be paid to secure the clearance.

V. Application for Mayor’s Permit Application for Mayor’s Permit shall be done at

the City Mayor’s Office, specifically in the Permits and Licenses Division. The

requirements that should be completed are the following:

1. Location sketch of the proposed business.

2. Sworn capital investment of the partners.

3. Certificate attesting to the tax or tax free exemption, if the business is

exempted from payment of free or tax.

4. Certificate from the officer in charge of Zoning Division stating that the

proposed business conforms to the zoning rules and regulations.

5. Tax clearance, certifying that all tax obligations has been paid;

6. Two (2) passport size pictures.


Bauan Technical High School 10

7. Presentation of the Community Tax Certificates and receipt for the

payments of professional tax free, occupation fee, as the case may be the

applicant is liable thereof;

8. Contract of lease if the building is rented.

9. Barangay clearance; and

10. Photocopy of DTI Registration form.

VI. Confirmation of the Application Form with the following offices for its Inspection,

Endorsement, Assessment and Signing.

1. City Planning and Development office

2. City Engineer’s Office

3. City Treasurer’s Office

4. City Health Office

VII. Registration with Bureau of Food and Drugs

Any business whose product is classified as food and drugs must be

duly registered to Bureau of Food and Drugs, the governing body that ensures the

safety of the product before it can be actually marketed.

VIII. Payment of all the necessary fees and taxes at the City Treasurer’s Office

1. Legal Fees

2. Environment Protection Fee


Bauan Technical High School 10

3. Fire Inspection Fee

4. Sanitary Fee

5. Fire Code Fee

6. Transportation Fees

IX. Registration with Bureau of Internal Revenue

The last part of the registration process is the registration with the

Bureau of Internal Revenue. This is done for the systematic payment of tax, for the

registration of books of accounts and business forms to be used in the partnership.

Table 4.4

Fees and Licenses

National Fees Amount


SEC Registration 1,500.00
BMBE Registration 500.00
BIR Registration 500.00
Local Taxes
Zoning Fee -
Annual Inspection Fee 650.00
Fire Inspection Fee 20.00
Medical Fee -
Garbage Fee 500.00
Sanitary Fee 250.00
Mayor's Permit 300.00
Business Tax 100.00
Bauan Technical High School 10

Occupational Tax 200.00


Community Tax Clearance 700.00
Business Plate 155.00
Nutritive Value Test -
Taxes and Licenses Expenses Php. 5,375.00
Source: Municipality of Bauan, Batangas

Table 4.4 shows the taxes and licenses paid by the proponents.

ARTICLES OF PARTNERSHIP

Of

Omezza Establishment

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned all of legal age and residents of the republic of

the Philippines have agreed to amend a limited partnership under the terms and

conditions herein set forth and subject to the provisions of existing laws of the

Republic of the Philippines.

AND WE HEREBY CERTIFY

ARTICLE I. That the name of the partnership shall be: Omezza

ARTICLE II. That the principal office of the Partnership shall be located at

Kapitan Ponso St. Bauan, Batangas


Bauan Technical High School 10

ARTICLE III. That the names and citizenship of the partners of said partnership

are as follows:

Name Citizenship

Dimalibot, Hanah Jane H. Filipino

Matienzo, Rheyzel Jane Filipino

Silang, Cris Jhune C. Filipino

ARTICLE IV. That the term for which said partnership is to exist is 20 years from

the original recording of said partnership by the Securities and Exchange

Commission.

ARTICLE V. That the purpose for which said partnership is formed are as

follows:

1. To conduct business through selling omelet with pizza.

2. To engage in business related to the environment and country as well.

ARTICLE VI.

That the capital of the partnership shall be Five Hundred Thousand Pesos

in Philippines.

Currency contributed in cash by the partners as follows:

Name Contribution

Dimalibot, Hanah Jane H. P500,000.00


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Matienzo, Rheyzel Jane P500,000.00

Silang Cris Jhune C. P500,000.00

ARTICLE VII. That the profits and losses shall be divided pro-rata among the

partners.

ARTICLE VII. That should there be any additional contribution made by a

general partner, such must be agreed upon by all the partners in writing and duty

recorded at least two (2) days after signing of same agreement. Such

contribution shall amend Article VI of the Articles of Partnership and in no case

shall such amendment be done less than one (1) year after the original recording

of said partnership by the Securities and Exchange Commission.

ARTICLE IX. That the contribution of each general partner may be returned to

him/her 3 years after the original recording of said partnership by the Securities

and Exchange Commission.

ARTICLE X. That the general partner maybe given the right to substitute an

assignee as contributor in his place, provided that he has duty notified his

partners in writing, provided further that such limited partner has already settled

his obligations to the partnership prior to the notification of substitution.

ARTICLE XI. That the remaining general partner or partners shall have the right

to continue the business in cases of death, retirement, civil interdiction, insanity

or solvency of a general partner.


Bauan Technical High School 10

ARTICLE XII. That the firm shall be under the management of Hanah Jane H.

Dimalibot as General Manager and as such she shall be in charge of the

management of the affairs of the partnership.

ARTICLE XIII. That the partners willingly undertake to change the name of the

partnership immediately upon receipt of notice/ directive from the Securities and

Exchange Commission.

That another partnership, corporation, or person has been declare misleading,

deceptive, confusingly similar to a registered name or contrary to public morals,

good customs or public policy.

IN WITNESS WHERE OF, we have here unto set our hands this 26thday of

February 2020 at Kapitan Ponso St. Bauan, Batangas.

Dimalibot, Hanah Jane H. Matienzo, Rheyzel Jane

TIN TIN

Silang Cris Jhune C.

TIN

ACKNOWLEGEMENT

Republic of the Philippines}

City of Cagayan de Oro} S. S.


Bauan Technical High School 10

BEFORE ME, a Notary Public, for and in Cagayan de Oro City, Philippines this

26th day of February, 2020 personally came and personally appeared the

following persons with their Community Tax Certificates as follows:

Name Place Issued

Dimalibot, Hanah Jane H. Bauan, Batangas

Matienzo, Rheyzel Jane Bauan, Batangas

Silang, Cris Jhune C. Bauan, Batangas

Known to me to be the same persons who executed the FOREGOINGARTICLES

OF PARTNERSHIP, and they acknowledged to me that the same is their

voluntary act and deed WITNESS MY HAND AND SEAL on the date first above

written

Name of legal counse!

Notary Public

Valid Until December 31,2019

PTR. No.

IBP No.

Roll of attorney No.

TIN

Bauan Batangas

Doc No:

Page No:
Bauan Technical High School 10

Book No:

Series of 2011

Generalization

The objectives of this study is to evaluate the financial stability of the

prupose product business in its financial statements, financial ratios along with the

financial requirements it need and payback period. The entire financial requirement

from the materials needed for the production down to the legal requirement fees

along with the monthly and annual expense the firm has to pay after calculating

the expense needed by the firm to start and operate, the firm comes up with the

initial capital of Php 500,000.00 where the partners agreed to contribute an equal

amount of 1,500,000.
Bauan Technical High School 10

Chapter V

FINANCIAL STUDY

A financial feasibility study projects how much start-up capital is needed,

sources of capital returns on investment and other financial consideration. It looks

at how much cash is needed, where it will come from, and how it will be spent.

(Wolfe,2017)

This part of study show the ability of the business to generate earnings

regarding with the used of its financial resources, also the profitability and

feasibility of the proposed business. Determining the financial cost of the

production is a great help in revealing the capability of the business to finance in

every operation.

Objectives of the Study

1. To know the performances of the business

2. To determine if the business is profitability.

3. To provide financial information about the company.

4. To help the business proponents and decision making.

5. To make proper allocation of credit among the different borrowers.

Initial Capital

The partners use to project cost as the basis for their contribution in the

firm. The capital that will be contributed by each partner will be used for the
Bauan Technical High School 10

acquisition of the needed tools and materials for the operation some office

equipment and supplies will also be purchased to be used by the officers to run

the business.

The partner's agreed that the initial capitalization is Php 3,000,000. The

said capitalization will be financed by the partners. Each partner will contribute an

equal amount of Php 1,000,000.

Source of Financing

There’s a lot of financing intermediaries that can help every business to start

its operation. The contribution of the partners of omelet establishment to be able

to finance the business will be from personal savings. The partners would

contribute the amount of Php 1,000.000 each to come up with the total needed

amount of capital which is Php 3,000,000 to start the business organization.

The provision of finance to the company to cover its short-term working

capital requirements and longer-term fixed assets and investments.

In financing the business operations, companies proponents typically resort to a

mix of internally generated funds and external capital.

Total Project Cost

The cost of the project is derived from the sum of total fixed assets which

are fixed investments plus pre-production capital cost, pre-operating expenses

which include fees and licences, and the net working capital which includes the

cost of raw materials and other expenses. Determination of the total project cost
Bauan Technical High School 10

would help the partners to settle on a certain amount of capital necessary for the

proper funding of the business.

Pre Operating Expenses


Taxes and Licenses 5,375.00
Fixed Asset
Kitchen Tools and Equipment 55,775.48
Office Furniture and Fixtures 15,290.20
Office Supplies 2992.00
Maintenance Supplies 3,569.25
Rent Expense 120,000.00
Leasehold Improvements 140,200.00
Working Capital for Two Months
Direct Materials 48.00
Labor 360,864.00
Overheard
Indirect Materials 289.92
Utilities Expense 91,200.00
Other Expenses
SSS, Pag-ibig, Philhealth Contribution 4,210.00
Advertising Expense 4,400.00
Total Cash Requirement 3,000,000.00
Cash on Hand 804,421.85
Total Project Cost 2,195,578.20

Financial Assumption

1. Initial Capital

The funds, or capital, may come from a bank loan, a government grant,

outside investors, or the business owner's personal savings. The money is used

to cover such start-up costs as renting building, purchasing equipment and

supplies, and hiring employees. The proponent’s initial capital is came from their

own personal savings, they have Php 1,000,000 shares to fulfill the Php 3,000,000

capital to start their business.


Bauan Technical High School 10

2. Working Days

Any day (other than Sunday or legal holiday) on which legal business can

be conducted. Whether Saturday is a working day or not depends on the custom

or usage of the trade or jurisdiction. 22 working days in a month.

3. Accounting Reporting Period

. A calendar year of business starting on January 1 that will end by December

31 would be implement.

4. Production Process

Production is a process of combining ingredients in order to make

something for consumption. It is the act of creating the product, a good or service

which has value and contributes to the utility of individuals. In the first year of

operation, the business will have an annual production capacity of 5,184 maybe

dine in or take out and will increase its production by around 10% based on past

year’s production over the five-year operation. In every day it has 18 products.

There will be 8 hours of work every Monday to Saturday.

5. Purchases

The volume of purchases (supplies) would increase in the quantity

produced. Purchasing is a business or organization attempting to acquire goods

or services to accomplish its goals. Although there are several organizations that

attempt to set standards in the purchasing process, processes can vary greatly

between organizations. The proponent used different selling strategies to rise the
Bauan Technical High School 10

purchases. It will purchase its operational supplies every year and will increase

accordingly to increase of market demand.

6. Sales

a. The company will be assuming cash sales.

b. There will be an increase in sales every year by 10%.

7. Labor

Labor rate per day for the workers is Php 350, in an hour they have a

salaries of Php 44. They will be paid on 15th and 30th day of the month and there

will be no salaries payable at the end of the month.

8. Employee benefits

13th month pay, SSS, PhilHealth, Pagibig and fringe benefits of the workers

are part of the manufacturing expenses. The employees benefits in the business

is the liability insurance to cover bodily injury or property damage claims that result

from accidents, like slips and falls. The policy also covers product liability, which

protects the proponents stall from claims arising from food-borne illnesses.

9. Utilities Expense

Utilities expenses are assumed to increase by the inflation rate 2.9%.

10. Repairs and Maintenance Expense

Would increase base on the inflation rate.


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11. Property, Plant and Equipment

a. Acquisition of equipment, furniture and fixture will be on cash basis. No

additional machinery would be purchased for the first five years operation.

12. Advertising

a. The advertising expense is worth 4,400.00.

13. Partner’s Equity

The proponents of omefe’ can withdraw whenever they want considering

the result of operation is favorable. Partner's will be sharing their profit and losses

equally.

14. Income tax

Partnerships, except general professional partnerships, are subject to tax

at the rate of 30% (per R.A. No. 9337) of taxable income.

15. Inflation rate

Inflation rate is peg at an average rate of 2.9% per year, provided by

National Statistics Office.

Financial Statements

Financial statements are structured financial representation of the

financial position of the business and the transactions undertaken by an enterprise.

It shows the results of the management's stewardship of the resources entrusted

to it. It may help the management for the decision making process, it also provides
Bauan Technical High School 10

information about antity's assets, liabilities, equity, income expenses,

contribution/distribution to partners and cash flow. Financial statements are written

records that convey the financial activities and condition of a business or entity and

consist of four major components (Collins, 2015)

Statement of Financial Performance

The statement of financial performance shows the subjective measures of

how well a firm can use assets from its primary mode of business and generate

revenues.

2021 2022 2023 2024 2025


Service 1,175,040.00 1,292,544.00 1,421798.00 1,563978.00 1,720,376.00
Revenue
Less:
Expenses
Advertising 4,400.00 4,400.00 4,400.00 4,400.00 4,400.00
Expenses
Salaries 360,864.00 360,864.00 360,864.00 360,864.00 360,864.00
Expenses
Utilities 91,200.00 93,844.80 96,566.30 99,366.72 102,248.35
Expenses
Taxes and 5,375.00 - - - -
Licenses
Fee
SSS, Pag- 4,210.00 4,210.00 4,210.00 4,210.00 4,210.00
ibig,
PhilHealth
Contributio
n
Total 466,049.00 460,674.00 460,674.00 460,674.00 460,674.00
Operating
Expenses
Net Income 708,991.00 831,870.00 961,124.00 1,103,304.00 1,259,702.00
before Tax
Less: 63,813.30 81,701.70 100,711.02 121,636.86 144,671.22
Income Tax
Net Income 645,177.70 750,168.30 860,412.98 981,667.14 1,115,030.78
after Tax
Bauan Technical High School 10

Statement of Financial Position

The statement of financial position is another name for the balance sheet. It

is one of the main financial statements. The statement of financial position reports

an entity's assets, liabilities, and the difference in their totals as of the final moment

of an accounting period.

Assets 2021 2022 2023 2024 2025


Current Assets
Cash
Accounts
Receivable
Prepaid Rent
Total Current
Assets
Non-Current
Assets
Equipment
Less:
Accumulated
Depreciation
Leasehold
Improvement
Less:
Accumulated
Depreciation
Total Non-
Current Assets
Total Assets
Liabilities and
partner’s Equity
Current
Liabilities
Account Payable
SSS, PhilHealth,
and Pag-ibig
Payable
Total Current
Liabilities
Owner’s Equity
Owner, Capital
Bauan Technical High School 10

Total Owner’s
Equity
Total Liabilities
and Owner’s
Equity

Cash flow Statement

The statement of cash flow is a basic component of the financial statement

which summarizes the operating, investing and financing activities of an entity.

2021 2022 2023 2024 2025


Cash Flow from Operating Activities
Cash
Inflow

Statement of Changes in Partner’s Equity

The statement of changes in partner’s equity is a sum showing the

performance of the enterprise for a given period of time. It summarizes the

revenues earned and expenses incurred for that period of time.


Bauan Technical High School 10

Financial Analysis

Financial statements analysis involves careful selection data from financial

statements for the primary purpose of forecasting the financial health of the

company. This is accomplished by examining trends in key financial ratios.

Although financial statements are essentially historical document and they tell what

was happening during a particular period of time, most users are concerned about

what will happen in the future.

Financial Ratios

Financial ratios are comparison in fraction, proportion, and percentage form

of two significant figures taken from financial statements. It expresses the direct

relationships between two or more quantities in the balance sheet and income

statement of business firm.

Liquidity Ratios

Liquidity ratios are ratios that measure the firm’s ability to meet cash needs

as they arise.

Current Ratios

Current ratio is widely regarded as a measure of short term debt paying

ability.

Current ratio = Current assets/ Current liabilities

Table 5.5
Bauan Technical High School 10

Current Ratio

Table 5.5 shows

Quick Ratios

Quick ratio is a much more vigorous test of a company’s ability to meet its

short term debts. Inventories are excluded from the total current assets leaving

only the more liquid assets to be divided by current liabilities.

Table 5.6

Quick Ratios

Year Quick Assets Current Ratio


Liabilities

As shown in table 5.6

Working Capital

Working capital also known as net working capital, is the difference

between company's current assets, like cash,accounts receivable (customer's


Bauan Technical High School 10

unpaid bills) and inventories of raw materials and finished goods, and its current

liabilities, like accounts payable (Investopedia, 2018)

Gross Profit Margin

Gross profit margin shows the relationship between sales and cost of

products sold, measures the ability of a company to control costs and inventories

or manufacturing of products and to pass along price increases through sales to

customers.

Net Profit Margin

It is percentage of revenue left after all expenses have been deducted from

sales. The measurement reveals the amount of profit that a business can extract

from its total sales. The net sales part of the equation is gross sales minus all sales

deductions, such as sales allowances.

Rate of Return of Equity


Bauan Technical High School 10

Return on assets (ROA) is a financial ratio that shows the

percentage of profit a company earns in relation to its overall resouces. It is

commonly defined as net income divided by total assets, Net income is derived

from the income statement of the company and is the profit after taxes( Staff, 2017)

The formula for the rate of return on asstes is:

Return on equity=Net income

Average partner's equity

Debt Ratio

Debt ratio measures the proportion of all assets that are financed with debt.

The use of debt involves risk because debt carries a fixed obligation in the form

interested charges and principal repayments.

Equity Ratio
Bauan Technical High School 10

The equity ratio measures the amount of leverage that a business

employs.it does so by comparing the total investment in assets to the total amount

of equity. (Accounting tools 2018)

Payback Period

Payback period measures the length of time to recover the amount of initial

outlay and the full recovery of the investment. Since the annual cash returns are

not uniform, payback period is computed by accumulating the estimated cash

inflows and determining the point in time at which they equal the outlay.
Bauan Technical High School 10

Chapter VI

Contribution to the Municipality of Bauan

Bauan is located in the southern part of Batangas Province along the coastal

area at the southwestern tip of Luzon Island .It has a total land area of 6,667.69

hectares.Bauan, officially the Municipality of bauan is first batangas, and as such

has contributed to its continuous growth in business and population.

Employment Generation

Employment Generation through entrepreneurial. The study relied on

secondary data by way of existing feasibility, and implements the project by

product.

Social Responsibility

Social responsibility in marketing involves focusing efforts on attracting

consumers who want to make a positive difference with their purchases. Many

companies have adopted socially responsible elements in their marketing

strategies as a means to help a community via beneficial services and products.

In addition to deriving economic value from the product, consumers have

heterogeneous intrinsic needs to consume products that are socially responsible.

They also have extrinsic social comparison preferences which are based on their

meetings with others in social interactions.


Bauan Technical High School 10

Government

Product management supports executive management teams in setting a

business strategy and business goals that are feasible by advocating for the

perspectives of their delivery team. Once set, product management advocates for

these goals within their delivery team.

Environment

The market environment or business environment is a marketing term and

refers to factors and forces that affect a firm's ability to build and maintain

successful customer relationships. External micro environment small forces

external the company that affect its ability to serve its customers.

Consumer

Consumer goods are products bought for consumption by the average

consumer. Alternatively called final goods, consumer goods are the end result of

production and manufacturing and are what a consumer will see stocked on the

store shelf. Consumer products, also referred to as final goods, are products that

are bought by individuals or households for personal use. In other words,

consumer products are goods that are bought for consumption by the average

consumer. Consumer behavior reveals how to appeal to people with different

habits.
Bauan Technical High School 10

Supplier

A manufacturer to produce your own product idea. A supplier (who may also

be a manufacturer), wholesaler or distributor to purchase already existing brands

and products. A dropshipper to supply products and fulfill orders of already existing

brands and products.A supplier is an entity that supplies goods and services to

another organization. This entity is part of the supply chain of a business, which

may provide the bulk of the value contained within its products. Some suppliers

may even engage in drop shipping, where they ship goods directly to the

customers of the buyer.

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