EASTERN VISAYAS STATE UNIVERSITY

COLLEGE OF BUSINESS AND ENTREPRENEURSHIP

TACLOBAN, CITY

FULFILLMENT OF BUSINESS PLAN I

(BROWN RICE COFFEE MIX)

PROPONENTS:

NACIONAL, ANGELICA P.
AGUIRRE, RONNABELLE B.
RAQUEL, JESSIE ANN S.
VILLANTE, CHERRILYN L.
RAQUEL, CATHERINE A.
BSE-3B

PROPOSED TO:

DR. SEVERO L. BLANCO II

Instructor
 EXECUTIVE SUMMARY

Herbs to Nerves Company is into food processing. It transforms cooked

ingredients, by physical or chemical means into food, or of food into other forms. The
company combines raw food ingredients to produce a marketable food product that can
be easily prepared and served to the consumers. It’s very first innovative product is the
brown rice coffee mix – an organic coffee mix with brown rice as the main ingredient
combined with cocoa powder and turmeric powder. Brown rice coffee mix is a substitute
to an ordinary coffee which contains caffeine and artificial chemicals. It promises a more
healthy lifestyle and affordable price at hand.

The company is in general partnership type of business where all partners are
general partners who contribute money, property or industry and have equal
management authority as well as equal share on profits and losses.

A beneficial and healthy way of satisfying the human need for coffee is one way
of the company to show its interest in helping and caring for the market. This can be
seen on the products’ ingredients which are purely organic. The company does not only
want its consumer’s satisfaction but also the preservation and patronization of organic
plants.

To ensure market feasibility, the researchers have conducted survey

questionnaires. Studies and researches for further improvement and development of the
product have been made also. Market share divisions and financial forecasts for future
standing are prepared by the company.

For further enhancements of employees’ skills, the company has prepared staff
development activities which are to be conducted for ensuring their strategic capacity
for the organization. Socio-corporate activities for the benefit of the society, customers
and subordinates are also made as it will boost the company’s reputation.

Lastly, contingency plans for potential problems/threats are presented as well as

growth plan if ever the venture becomes a success.
 SECTION II

COMPANY DESCRIPTION

HISTORY BEHIND THE BUSINESS IDEA

‘Almost all human needs and wants are present in the market’. This statement

brought difficulty to the group in thinking for possible product that would be innovative

enough to be patronized by the market. It seems like weeks or so was not enough for

thorough brainstorming.

Five heads have consolidated various ideas but unfortunately most are already

familiar and some are very difficult and even impossible to do. However, the group have

agreed for a product the first time and it was to promote or innovate an organic tea with

the primary ingredients of cocoa, turmeric and malunggay. This study was tested many

times with each test having one and only problem—the solubility of the malunggay

powder. Since we have not thought of a way to solve the problem, we have decided to

remove malunggay in the study. That brought us to think another product since there

was just two more ingredients left—cocoa and turmeric. One of the group member

suggested a different product using the same remaining ingredients—an organic coffee

mix. The idea was easily agreed by the other members then so be it. We added sugar

so it was a 3 in 1 coffee mix. The idea was okay and tested until the product being a

coffee was questioned. That’s when we realized how our products name was very

irrelevant with the product itself.

 As a final decision, we have agreed to have the same product but we should add

another ingredients and it needs to be one which can be called a coffee. The very

product result was the ‘’brown rice coffee mix’’ – with the brown rice as the main

ingredient as obviously stated with the name itself, added with cocoa powder from raw

cacao seeds and turmeric powder at that.

COMPANY BACKGROUND

Our company focuses on healthy products that come from natural resources. We

want to promote healthy lifestyle among people that is why we use organic ingredients

and avoided the use of additives which are unhealthy to our body. We come up with the

idea of making a coffee mix with the use of organic ingredients like brown rice, cocoa

powder which came from roasted and ground cacao seeds and turmeric which contains

lots of beneficial nutrients.

As we continue to discuss about the business idea, we have conducted

researches on how to convert the ingredients into powder for us to be able to pursue

and make the desired product possible. Also, the benefits to be gained from the

ingredients have been sought and ensured.

Making this idea possible and making path to the future is the company’s main

goal and of course the purpose of contributing to the economy’s betterment through

patronizing organic products.

BASIC BUSINESS CONCEPT

Coffee and tea are the second most widely consumed beverage after water. Its

impact on both farmers and consumers is considerable.

The business is to process a coffee mix which arises from the idea of maintaining

the use of organic or herbal plants. As we all know, organic plants are being set aside

and are not widely used anymore due to the advancement of technology. Most of the

beverages and even foods are now carbonated and have lots of chemicals.

The concept is to use organic plants such as cacao seeds and turmeric as the

main focus and ingredient. It should be obvious that organic coffee would be very

beneficial and healthy because of the nutrients and the medicinal uses that the plants

offer. Consumers must be aware that a coffee without artificial chemicals and any

additives would guarantee a longer and healthier lifestyle. This idea would boost the

interest and the support of those who continuously strive for a healthy living.

The main ingredients being organic means that costs are minimized so the

consumers are rest assured that the products are sold at affordable prices. For the

business to be a success, price should not be the only focus with which the

entrepreneurs should take active consideration with but also the assurance of the

products’ quality. The consumers should be convinced that the products are made of

the best quality so they will patronize it accordingly.

Herbs to Nerves Company offers a sustainable and secure coffee mix for

all ages. Our product—brown rice coffee mix is not an ordinary or simple as you knew,

because it contains a lot of benefits especially for those who wish to live in good health.
NATURE OF THE BUSINESS

Herbs to Nerves Company is food processing in nature. It will promote healthy

living when it comes to consumers’ need of a coffee. Despite knowing that it is not easy

to start a business with the record of competition status as of the moment, the company

is encouraged to keep going especially on persuading consumers to engage in

patronizing products which will help to improve health.

In starting a business, a very crucial planning and preparation is required. You

cannot just operate any business you want without having a thorough organization of

relevant ideas. In any way, the business’s capability of surviving competition should be

ensured.

BUSINESS NAME

Thinking of a business name is definitely not an easy task. One can never

choose a particular name for a business without considering some qualifications. A

business name must be unique, innovative and of course it must suit the business itself.

It should be easy to pronounce, easy to remember and one that could easily catch the

customers interest.

As of the group, many propositions have been visualized and suggested that it

become really hard for us to come up with the appropriate business name. Days passed

until we are told to pass this portion of the business plan but we are still undecided and

unsure. Fortunately, the submission was extended so it was a relief for us. We
continued to brainstorm and luckily one of the propositions catches the attention of

everyone in the group. It was until then that we have decided to name the company

“Herbs to Nerves”.

Herbs came from the idea of organic plants itself which are to be used as the

main ingredients of the products. The term Nerves came from the thought that after the

action of taking the product, it will automatically penetrate the insides of our body

reaching our nerves. That simply explains why we have come up with Herbs to Nerves

as the name of the business.

Herbs to Nerves is an innovative company that promotes healthy living through

the use of organic plants in fulfilling consumers’ need when it comes to coffee.

BUSINESS LOCATION

Choosing the right location of the business is one of the most important aspect

that owners should consider. The right location of the business contributes to its

success. In selecting the right location, lots of important things are to be attended

strictly. Proponents should be familiar with the needs of the company, the availability of

materials/equipment to be used, and the accessibility of the desired customers.

The first step is to honestly assess who is your target customer. Are they older?

Younger? More affluent? Less affluent? Do more women frequent the business than

men, or vice versa? Your target customer will depend on the product or service you

intend to sell. The second step is to collect the necessary data. Remember that it is not
just the customer you will need to consider. The available labor force is also important.

Another step is to evaluate the available options the business can consider at times of

emergency.

A lot of hard work and careful consideration goes into finding the right location

for your small business, and it may be tempting to devote your energy to more creative

tasks like developing a logo or fine-tuning your product selection. Keep in mind, though,

that none of those details will matter if your customers cannot find you. Put in the time

and the effort to find the best location and give your business the strong start it

deserves.

With regards to our business, it will be established inside the vicinity of Eastern

Visayas State University since it has such big population plus the outsiders and visitors

who are entering the place. The most probable potential customers that will likely

purchase the product are the faculty, high school and college students and anyone from

the outsiders.

This very first proposed location will be the basis whether our product will be

patronized. If it works, then the company will be having its outlets in other areas with

much larger markets which could possibly be a great venture target.

TYPE OF THE BUSINESS

Herbs to Nerves Company is aiming to produce products which would not only

satisfy the needs of the consumer but also ensures healthy living. The business is a

food processing type of business since it includes a set of physical, chemical or

microbiological methods and techniques used to transmute raw ingredients into food.

Processing our product will not be possible without the help and cooperation of

the different personnel. The expected product should be processed accordingly. The

food processing begins with the product design, and materials specification from which

the product is made. These materials are then modified through food processing to

become the required part.

FORM OF THE BUSINESS

The company is a general partnership. A general partnership is a business

organization where all partners are general partners who have unlimited liability and

equal management authority. When a general partnership is started, all the partners

contribute either property or cash into the partnership. Once the partnership is formed,

all of the assets are deemed to be co-owned by the partners. If the partnership is ever

dissolved, the remaining partnership assets are divided up amongst the partners based

on the partnership agreement and the individual partners' capital accounts.

A small business do not really need such big capital especially if it is just starting.

However, “two heads are better than one,” as what a saying goes. Working within a
partnership with a genuine win-win intention can give the business the edge it needs to

surpass its competitors. Partnership can give the business access to additional

resources and many more advantages so you should consider having one.

BUSINESS PARTNERS

TYPE OF
PARTNERS PARTNERSHIP ADDRESS ROLES AND FINANCIAL
NAME ENGAGED RESPONSIBILITIES CONTRIBUTION

General Manager
NACIONAL, General Calbiga, --Securing the strategic
ANGELICA P. Partnership Samar action of the company P 50,000.00

--Monitoring sustainable
company policy
Finance Manager
--Monitoring financial
VILLANTE, General Naval, situation
CHERRILYN L. Partnership Biliran --Undertaking P 50,000.00

calculations and
securing finance for the
company investments
Production Manager
--Monitoring the whole
of the production
RAQUEL, General Jaro, Leyte control P 50,000.00
JESSIE ANN Partnership --Recognizing and
S. using trends in
technological and
product development
 Marketing Manager
--Monitoring the
situation on the market
AGUIRRE, General Babatngon, and with the customers
RONNABELLE partnership Leyte P 50,000.00
using the customers in
B. the market
--Setting the
corresponding actions
for motion
HR Manager
--Monitoring social
RAQUEL, General Jaro, Leyte relationships within the
CATHERINE partnership office P 50,000.00
A. --Planning the
deployment of the
personnel
LEGAL DOCUMENTS

Barangay business clearance is one of the permits or documents required when

registering a new business. You need to get a Barangay Business Clearance or

Barangay permit first, before securing a Mayor’s Permit. It is one of the requirements for

securing Mayor’s Permit.

STEPS AND PROCEDURE

1. Fill out the application form

• Go to the designated Barangay Hall.

• Go to the permit department and ask for the application form for business permit

and fill it out.

 • Submit the accomplished application form together with the other requirements.

2. Assessment

• Wait for the assessment. Normally, it takes 15 to 30 minutes.

3. Payment

• Get the assessed application.

• Pay the corresponding amount at the cashier.

4. Receiving

• Submit the paid application.

5. Release

• After receiving the paid application, wait for the release. Some barangays release

the certificate on the same day of your application, while others schedule it on the

following day after the payment was made.

After you get your barangay clearance, head on straight to the City Hall to apply

for your Business Permit.

 Business Permit - This permit is required to all enterprises in order to start their

operations. This permit will be the license to operate and is renewable every year from

January 1 to 20, to be specific.

Requirements

 Lease Contract. If owned, submit a copy of the Transfer Certificate of Title (TCT) or

Tax Declaration.

 Business Name Registration with the Department of Trade and Industry (for sole

proprietorship/new applicants).

 Barangay Clearance
 Sketch of location

 Occupancy permit

 Public Liability Insurance – can be bought from an accredited insurance company

 Community Tax Certificate (Cedula) – you can get this at the City Treasurer’s Office

in the same city hall.

 Fire Permit

 Sanitary Permit

 Other

Requirements depending on the type of business

Procedure for Registration

 Go to the City Hall / Municipality where the business is located – ask to be

directed to the Business Permits and Licensing Office (BPLO).

  Ask for the business registration form (have it completed and notarized) and

submit your completed registration with all the requirements listed above (except

for the fire and sanitation permit, which will be done in the next steps).

 Necessary taxes, fees and charges will then be assessed and recommended by

the licensing officer.

 Submit your completed registration application form and assessment of fees to

the receiving window of the BPLO. You’ll then be given an acknowledgment of

receipt of application.

 Go to the treasury office/cashier to pay the necessary fees.

 Once paid, proceed to the fire department with your receipt for the request and

issuance of your fire permit

 Proceed also to the health department with your receipt for the request and

issuance of your health / sanitation permit

 Depending on the number of days of processing advised by the licensing officer,

once due, return to the city hall where you filed your application for the release of

your Business / Mayor’s Permit and other required permits and/or licenses.

Now that you have your business name, barangay clearance, and business permit,

you can then proceed to the Bureau of Internal Revenue (BIR) to register your business

and apply for your business Tax Identification Number (TIN). 

Department of Trade & Industry is the primary government agency with the dual

mission of facilitating the creation of a business environment wherein participants could

compete, flourish, and succeed and, at the same time, ensuring consumer welfare. DTI

also governs the registration of business and trade names in the Philippines.

Requirements

 Processing fee

 Documentary stamp worth P15 each

 Two copies of duly accomplished application signed by the owner

  At least one valid government ID bearing your photo and signature

Steps for registration

A. Obtain application forms (duplicate copy) and fill these up completely. Only the owner

of the business or his/her Attorney-in-Fact (who is authorized in a proper legal

instrument) is authorized to sign all the forms.

B. Submit application form to the DTI Processor. The DTI Processor will check if the

Business Name is still available, if yes, you will be asked to pay the application fee.

C. Pay the required registration and processing fee.

The Department of Trade and Industry (DTI) is now implementing the following

registration fees for business name registration (original and renewal) depending on the

territorial jurisdiction covered in the application:

a. Barangay: PHP    200.00

b. City / Municipality: PHP    500.00

c. Regional: PHP 1,000.00

d. National: PHP 2,000.00

D. After showing the receipt to the Processor, the Business Name Certificate will be

released.

E. Your Business Name Certificate is valid for 5 years from date of registration.
 It is a must to register the business in the BIR. This is to pay your tax properly

and to avoid tax evasion cases

Requirements:

 BIR form 1901 and 1905

 Photocopy of Mayor’s Business Permit/Application for Mayor’s permit

 NSO Certified Birth Certificate of the applicant

 DTI Certificate of Registration Of Business Name

Steps for registering with the BIR

1. Prepare/accomplish in 3 copies the following BIR forms needed for the business.

2. Go to the Revenue District Office (RDO) that has jurisdiction over your registered

address.

3. Go to the officer of the day. He will assess how much to pay for the registration.

Normally, the registration fee is P500. While the Documentary Stamp Tax on

subscription depends on how much the capital is, while the documentary stamp tax on

lease depends on your monthly rental. Please submit these forms and documents to the

officer of the day.

4. After the assessment, go to the accredited banks for payment. Usually accredited

banks are within the vicinity of the RDO or you can ask anyone from the BIR in that

RDO to be sure. Submit these assessed forms to the teller of the bank.
5. After the payment has been made, go back to the RDO. Get a queue number from

the guard. Go to the registration section for the receiving of you application. Wait for

your turn to be called and submit a photocopy of BIR form payments, special BIR

payment form (all Accredited Banks of RDO have a special payment form for BIR only)

and other documentary requirements.

6. Schedule for release. Some RDOs may request you to attend a seminar about the

filling of your taxes before the actual release of Certificate of Registration but some do

not; be prepared just in case. Also, don’t forget to ask for an “Ask for receipt” sign.

Some RDOs will automatically give it to you together with the COR and some do not. So

to be sure, just ask for it.

7. Purchase Books of Accounts. Normally for VAT (Value Added Tax) there are six (6)

Books of Accounts while there are four (4) Books of Accounts for Non Vat.

8. Register the Books of Accounts

-Accomplished BIR form 1905

-Books of Accounts

-Submit BIR form 1905 and Books of Accounts to the Registration Section and wait

for the release.

9. Apply for Authority to Print (ATP)

-Accomplished BIR form 1906

-Photocopy of COR and paid Registration BIR 0605

10. Lastly, printing of your receipts (Official Receipts and/or Invoices). This normally

takes one to two weeks to be printed.

 SECTION III

COMPANY’S DIRECTION

VISION OF THE COMPANY

“A sustainable and secured coffee mix producer that promotes health to its consumers.”

The company wants to encourage people to engage and consider organic

products as part of their daily lives for it will ensure healthiness.

MISSION OF THE COMPANY

“To promote healthy living to the community through the processing of organic plants

locally produced components”

The company aims to empower the consumers regarding their choice of

choosing a coffee mix. Consumers must be well aware of the benefits they can get from

organic plants which are going to be the main product of the business. They should be

encouraged to patronizing and expanding the use of organic practices as it will improve

one’s health.
OBJECTIVES OF THE COMPANY

 To maintain, strengthen and expand the use of organic products in promoting

healthy living.

 To increase the company’s volume of sales by utilizing the four marketing mix.

 To be able to arouse consumers interest in patronizing organic products.

 To produce healthy products which will help reduce the use of synthetic

chemicals.

 To help maintain the ecological status of the environment.

 To maintain low-cost pricing.

CORE VALUES OF THE COMPANY

ETHICAL BUSINESS PRACTICES – maintain highest standards in dealing with

the members of the company and customers.

CORPORATE VALUES – self-help, self-responsibility, equality, solidarity, honesty,

openness, and social responsibility.

QUALITY – adhere to product selection criteria that proudly provide variety of organic

products.

EDUCATION – encourage informed choices and demonstrate impact on personal

health and the benefits offered by the product.

FINANCIAL RESPONSIBILITY – cultivate corporate activities in a financially

sustainable manner.

SECTION IV

INDUSTRY ENVIRONMENT OVERVIEW

ECONOMIC ENVIRONMENT

All businesses, whether domestic or international, are affected by the dynamic

economic environment conditions prevalent in the market. Among many

economic factors affecting business are; interest rates, demand and supply, recession,

inflation, etc. Let us take a look at such economic factors.

All businesses want to maximize on their profits. All those can be achieved by

analysis of demands of consumers, provision of appropriate supplies to them and the

maintenance of high quality of goods and services. As simple as this operation is, many

factors affect it. The sales, production and procurement processes of a business are

greatly impacted by these economic elements. Below is a list of economic factors that

affect businesses. Consider, all of them are interconnected.

Demand and Supply

 There are two great economic factors affecting business models work – demand

and supply. Demand is how willing and able a consumer is to purchasing what a

business offers and supply is how able the business is to make available what the

consumer needs

Marginal and Total Utility

The amount of satisfaction that is derived by consumers from the amount of

goods they have is referred to Utility. After continuous and successive consumption of

units of same goods, the fulfilment that is experienced by the consumer starts

depreciating. This results in short-term or long-term fall in sales of the business. Most

Organization prepare for the launch of a different brand before the collapse in utility and

sales is experienced. The hurl of a new brand ensures that the revenue trend of

business does not drop down. The fall down of utility is one of the  economic factors

affecting businesses.

Economic Growth and Development

The amount of money that is being invested into channels of long-term

upgradation and the finances of the people living in the society at large in a particular

country is decreed by the economic growth of a country. Among all the economic

factors that are affecting business, development is the most important one. A business

needs to cater for the demands of an economic environment potent society.

Income and Employment

 Another crucial aspects of the economy that affect a business operation, are the

rate of income and employment varsity in a particular country. The density of

employment determines the rate of demand in a company and even the country

including the purchasing power of individuals.

Inflation

Inflation usually occurs when the supply of money is too much in the economic

environment market while not equally supported by a similar availability of goods and

services. The prices of goods have to increase one way or the other, in order to sustain

the businesses. And so there is an increase in the cost of raw materials needed for

production. This upsurge in the cost of raw materials obviously translates to the retail

price.

Recession

Companies usually make great losses and face dips in sales and profits during

recession. And in order to reduce their costs most of them usually resort to staff cuts,

retrenchment and firing, reducing capital expenditure, advertising budgets, research and

development activities, and so on. Of course this affects companies and organizations

of all sizes regardless of the economic environments they are in.

The different economic factors listed above may affect our business in one way

or another. To conform to this factors, our company will conduct an evaluation and will

analyze solutions that could be done to adapt with the changing economic environment.
TECHNOLOGY DEVELOPMENT

Technology continues to be a catalyst for change in all areas of business and

industry. Today’s workers are more mobile and more connected ever than before, which

means that businesses can operate anywhere.

Technological change can bring about advantages and opportunities for

businesses. Obviously, new technology can create new products and services, thereby

creating entire new markets for a business. Moreover, improvements in technological

products and processes can increase productivity and reduce costs.

Business technology has revolutionized the way companies conduct business.

Small businesses can implement business technology and level the playing field with

larger organizations. Small businesses use computers, servers, websites and personal

digital products to develop competitive advantages in the economic marketplace. Small

business owners should consider implementing technology in their planning process.

This allows owners to create operations using the best technology available.
 Technology advancement has surely a big impact on a business environment.

Small businesses like ours can use technology to reduce business costs. It helps

automate back office functions, such as record keeping, accounting and payroll.

Business owners can also use technology to create secure environments for

maintaining sensitive business or consumer information. It can increase our employees'

productivity through the use of technology. Computer programs and business software

usually allow employees to process more information than manual methods. It would

also allow our business to reach new economic markets. Rather than just selling

consumer goods or services in the local market, small businesses can reach regional,

national and international markets.  

SOCIO-CULTURAL ENVIRONMENT

Being in business is not only about knowing how to make sales and generate

great profits, but it also involves understanding the environment you intend in

establishing your business. A complete business person ensures that he or she studies

the social – cultural attributes of the people that live in the environment they intend

starting their business during the feasibility studies.

Social and cultural factors are important to consider while creating and

implementing a marketing strategy of a company. These often-linked but somewhat

different factors have diverse effects on the decisions of consumers and buyers.

Basically, sociocultural factors are customs, lifestyles and values that characterize a

society. More specifically, cultural aspects include aesthetics, education, language, law
and politics, religion, social organizations, technology and material culture, values and

attitudes. Social factors include reference groups, family, role and status in the society.

Small-business owners should be aware of and understand these factors' connection

with buying habits.

Social and cultural values affect economic development through attitude toward

progress. Factors encouraged in individuals comprising an achievement based society

include a strong work ethic and value placed on thrift and economy.

As society and culture change, our business must adapt to stay ahead of our

competitors and stay relevant in the minds of our consumers.

REGULATORY ENVIRONMENT

Governments establish many rules and regulations that guide businesses.

Businesses will normally change the way they operate when government changes these

rules and regulations. Government economic policy and market regulations have an

influence on the competitiveness and profitability of businesses. Business owners must

comply with regulations established by federal, state and local governments.

Many sectors of the business world have long complained about government

regulations and their restrictive nature. But instead of using this as a disadvantage, it is

in the best interest of businesses to learn to work with governments to write sensible

regulations that target bad apples. In fact, there are solid economic reasons for virtuous

businesses to support regulations in such areas as employee safety and health, and
food and product safety, where a level playing field is necessary to prevent free-rider

advantages going to competitors willing to pursue gain at the expense of the public

interest.

Although government regulation has negative effects to businesses, there are

still positive sides that are being offered by it and any business must comply as it is for

the betterment not only for anyone but for the entire society.

NATURAL ENVIRONMENT

Any business cannot operate without the essential inputs and essential

ecosystem services that are provided by the natural environment, and so its treatment

of the natural environment is one of the two keys to the sustainability of business.

Companies in the industrial or manufacturing industry often work with different

kinds of equipment, machinery and chemical-producing agents. In effect, a business'

day-to-day operations can pose an ongoing threat to the natural environment. To

reduce the likelihood of damage to the environment, federal and state regulations

require businesses consider certain natural environmental factors in their overall

operations plans.

Businesses must meet certain standards that help to reduce any adverse effects

a company's activities have on the environment. As a result, natural environmental

factors, such as clean water and clean air, dictate how companies conduct their day-to-

day operations.
 Natural environmental factors can affect our business operations as well as its

ability to expand or take on new operations. In effect, our company must comply with

environmental regulations in all stages of our business' development.  

COMPETITION STATUS

Each company faces a broad range of existing competitors. Competition is the

rivalry between companies selling similar products and offering the same services with

the goal of achieving profit. Market competition motivates companies to increase sales

volume by utilizing the four component of the marketing mix which is the product, place,

promotion and price. Competition enables companies to be more creative and

innovative.

One of the results of the competition is fluctuation. In this event, the supply and

demand relationship is compared to a seesaw because as the one increases, the other

one lowers in value. This is also the same with the pricing strategy development. So, if a

business has several competitors offering the same goods or services, the lower the

price will be.

Anyhow, there are still positive effects of competition to a certain business like

better money value, better economy due to efficiency, product variations, better

remuneration of employees, more production and better customer satisfaction as well.

Herbs to Nerves Company first conducted the SWOT Analysis to be able to

compete towards our competitors. We are striving to have our own way to compete with

benefit. If the competition status will not favour our business, possible solutions may be

done. First is product distinction which makes the product we offer different from our

competitor. Second is through industry or market access which is done through

selecting a market that is not yet saturated. Third is the production of cheaper products

temporarily.
 SECTION V

PRODUCT/SERVICE PLAN

PRODUCT RESEARCH AND DEVELOPMENT

Research and development refers to the investigative activities a business

conducts to improve existing products and procedures or to lead to the development of

new products and procedures. It is a type of systematic activity conducted by a

company, which combines basic and applied research in an attempt to discover

solutions to problems, or to create or update goods and services.

In our first attempt, the ingredients milk, cocoa powder, turmeric powder,

malunggay powder and sugar were mixed. The result was good but then we realized

that our main purpose it to create a pure organic product so using milk is not good since

it is already a processed product.

During our second attempt of making the product, milk and malunggay powder

were excluded in the ingredients used. Even though malunggay is very healthy, we

have decided to remove it from the list considering the fact that consumers may not like

the color and texture of the outcome product with the said ingredient in it. But then,

since we did not mind measuring the amount of the ingredients remaining, the attempt

failed.

Another trial was made but then something’s always forgotten. As we continued

to experiment and conducted research, success has been achieved. Ways how to
distribute the product have been known due to continuous idea contribution and through

research as well.

Since our final product was the brown rice organic coffee mix, the researchers

have made sure to think of ways to make it possible as well as to ensure product

development.

PRODUCT DESCRIPTION

Front View

Back View

(The product in its sachet packaging)

Worried about the side effects of caffeine under coffee but got no choice?
Well, your worries are over now because a very powerful solution is now at hand.

Brown Rice coffee mix is processed to satisfy human need in terms of coffee with

the corresponding main purpose of promoting healthy living by using organic plants as

main ingredients. The product is in sachets made in plastic.

Each sachet contains measured amount of organic ingredients amounting to a

total of 12 grams which can be consumed with each cup of hot water.

This coffee mix will satisfy your taste buds as well as your need or your reasons

why you are drinking coffee almost every day. Ahead in points is that it will offer many

benefits than your regular coffee. So do not miss the opportunity and grab it now.

PRODUCT LINE

A product line is a group of related products under a single brand sold by the

same company that are intended to be used for similar purposes.

Herbs to Nerves Company may offer additional categories of the product. It will

be an improvement for the business to offer related products which will carry the main

purpose of manufacturing the product.

In line with the company’s product is the organic tea and iced tea. The main

purpose which is to promote healthiness is still carried by this add on products. If the

customer is fond of drinking tea, then it would be easy. If desiring for a refreshing

beverage throughout the day, it would also be easy, just let the tea cool down and pour

over ice cubes then it is ready to go.

 (Organic tea) (Refreshing iced tea)

FINAL PROPOSED PRODUCT

Brown rice coffee mix is totally a persuasive product as it will prepossess the

ultimate goal of every consumer—health. The fact that it offers the same advantages of

the regular drinking coffee and at the same time its many to mention health benefits will

move every consumers to patronize the product. This product is to help maintain the

use of organic plants which come from nature—the natural resource. Ever since,

organic plants or herbs play a very significant role to man for they have depended on it

for supplements and nourishments. It would not be bad if we will be encouraging

everyone to be back to nature.

SECTION VI
 MARKETING RESEARCH

MARKET RESEARCH
A market consists of all the consumers who purchase a particular type of good or

service. The market may be sub-divided into separate segments each of which can be

considered to be a separate market in its own right. It is very important for a business to

be able to define its market and to be able to identify its growth.

Identifying a target market helps a company develop effective marketing

communication strategies. A target market is a set of individuals sharing similar needs

or characteristics that a company hopes to serve. These individuals are usually the end

users most likely to purchase your product.

Market research is the process of assessing the viability of a new good or service

through research conducted directly with the consumer which allows a company to

discover the target market and record opinions and other input from consumers

regarding interest in the product. Market research may be conducted by the company

itself or by a third-party company that specializes in the market research field.

The purpose of market research is to examine the market associated with a particular

good or service to determine how the audience will receive it. This can include

information gathering for the purpose of market segmentation and product

differentiation, which can be used to tailor advertising efforts or determine which

features are seen as a priority to consumers.

RESEARCH DESIGN
 The research design refers to the overall strategy that you choose to integrate

with the different components of the study in a coherent and logical way, thereby,

ensuring you will effectively address the research problem; it constitutes the blueprint

for the collection, measurement, and analysis of data. The research problem determines

the type of design you should use.

Regarding the product in accordance to the information gathered, we would have

to analyze the data accurately for us to come up with the appropriate research design

so that the major purpose which is to establish that the independent and dependent

variables are causally related would be achieved.

The company uses descriptive research design in integrating the different

components of the study. Descriptive research takes up surveying and is considered

conclusive in nature due to its quantitative nature. It is preplanned and structured in

design so the information collected can be statistically inferred on a population.

The main idea behind using this type of research is to better define an opinion,

attitude, or behavior held by a group of people on a given subject. Since there are

predefined categories a respondent must choose from, statistically inferable data can be

made out of grouping the responses into predetermined choices.

RESEARCH LOCALE
Research Locale discusses the place or setting of the study. It describes in brief

the place where the study is conducted.

 Our business is to be installed in between Quarry District and Sta. Cruz St.

wherein many people are passing by. Eastern Visayas University will be our

experimental target market—the students, faculty, all its other constituent plus outsiders

who are visiting the vicinity. According to our conducted research, there will be a great

possibility that the proposed product will be patronized since the population is quite big.

RESEARCH RESPONDENTS

In customer satisfaction surveys that ask customers for their opinion about a

recent purchase or their experience with a service, it is important that respondents give

information or feedback regarding the product.

A total of 100 students/respondents coming from the different departments of the

university have been surveyed regarding the marketing mix of the business. Since the

target location offers a large amount of consumers, it automatically mean that we are

going to deal with the different identity and behavior of the consumers. In anyway, the

company’s main target is the students of the university alongside with the different

constituent of the location.

DATA PROCESSING AND ANALYSIS

PROFILE OF THE RESPONDENTS

 TABLE 2

RESPONDENTS ACCORDING TO GENDER

GENDER

MALE 49

FEMALE 51

TOTAL 100

The table represents the gender profile of the respondents. As it shows, female

got the highest percentage of 51% while male got 49%.

This is to identify most of the participative residents in the market research

survey which will tend to purchase the products—and the result shows that females are.

TABLE 3

RESPONDENTS ACCORDING TO AGE

 AGE

18 & below 30

19 – 22 60

23 – 25 10

TOTAL 100

The table represents the age profile of the respondents. As it shows, those who

belong to the range of 18 yrs and below got 30%; the majority of the respondents’ age

are ranging from 19 – 22 yrs old and those that are 23 – 25 got the lowest percentage of

10%.

It implies that the most participative respondents who will likely to buy the product

belongs to the age bracket of 19 – 22 years old.

TABLE 4

RESPONDENTS WHO BELIEVE THAT ORGANIC PRODUCTS ARE MUCH

 BETTER/HEALTHIER

YES 100

NO 0

TOTAL 100

The table shows that respondents have been asked whether they believe that

organic products are healthier. Since all of the respondents have answered ‘Yes’, it

means that there is a great possibility for them to purchase the product and this may

serve as a basis for the product to be made.

TABLE 5

RESPONDENTS WHO ARE COFFEE LOVERS

YES 75

NO 25

TOTAL 100

The table with the survey question for those respondents who are fond of

coffee/coffee lovers will help us determine whether we continue the product or not.

Since majority are coffee persons, it may mean that the product is likely to be

purchased.

TABLE 6
RESPONDENTS ACCORDING TO HOW LIKELY THEY CONSUME BROWN RICE

COFFEE MIX

EXTREMELY 28

MODERATELY 33

SLIGHTLY 39

TOTAL 100

The table above has a survey question of how likely are the respondents to

consume brown rice coffee mix. This serves as the key on how we will plan to make the

product new since there is nothing like it in the market.

As it shows, 28% of the respondents are extremely likely to consume; 33% are

moderately and 39% are slightly to consume the product.

TABLE 7
 RESPONDENTS’ PRICE SUGGESTION FOR BROWN RICE COFFEE MIX

5 – 10 PESOS 87

11 – 15 PESOS 12

16 & ABOVE 1

TOTAL 100

This table with the survey question regarding the respondents’ price suggestion

for the coffee mix helps us determine the price range which will be proportionate to the

consumers’ purchasing power. Out of 100, 87 of the respondents have chosen the price

ranging from 5 – 10 pesos/sachet; 12 have chosen 11 – 15 pesos and only 1 has

chosen 16 pesos & above. This result of the survey will be the basis of our pricing

strategy.

TABLE 8
 RESPODENTS PREFERED PLACE FOR BUYING THE PRODUCT

SUPERMARKET STORES 49

SARI-SARI STORES 16

GENERIC STORES 35

TOTAL 1OO

The table shows the respondents’ preferred place for buying the product. As

shown, 49% wants the product to be displayed in supermarket stores; 16% in sari-sari

stores and 35% in generic stores.

This survey question will help us in determining the right place/location where the

product will be put.

SUMMARY OF RESULTS AND CONCLUSION

 For the market research survey, Herbs to Nerves Company has established

questions that will determine the respondents’ view to our proposed product which is the

‘Brown Rice Coffee Mix’. The questions asked will help us determine the possible

actions or revisions if ever unforeseen error occurs regarding the products’ marketing

mix variables.

As for the product, the very first question asked from the respondents was

“Do you believe that organic products are healthier?” Based on the survey, all 100

respondents do believe that organic products are healthier. The second question asked

was “Are you a coffee person?” Out of 100, 75 of the respondents are coffee person

while 25 of them are not. The third question was “How likely are you to purchase and

consume organic coffee mix?” The survey shows that 28 of the respondents are

extremely likely to consume the product, 33 of them are moderately likely, and 39 of

them answers slightly likely.

As for the price, two questions have been asked from the respondents. First

one was “What would be your price suggestion for the organic coffee mix?” The result

shows that 43 out of 100 want the product to be sold at price ranging from 5-10

pesos/pc, 56 of them want it from 11-15 pesos/pc, and 1 wants the product to be 15

pesos above/pc. Last question was “If the price of organic products continue to rise,

would you still continue to purchase?” The result shows that 63 of the respondents

answered ‘Yes’ while 37 answered ‘No’.

 As for the place, respondents were first asked “Where would you want to

purchase the product?” Results showed that 49% want the product on supermarkets,

16% of them want to purchase the product on sari-sari stores, and 35% prefer it to be in

generic stores. Respondents were also asked “Where do you prefer the business to be

located?”

As for the promotion, respondents were asked “What type of promotion

would you want to see/hear about the product?” Results show that 14% wants Word-of-

Mouth, 55% prefers to see the product in Social Media sites, 15 want% to see and hear

about the product on TV Ads and 16% respondents have preferred Brochures.

RECOMMENDATIONS

Herbs to Nerves Company is likely to accept suggestions or

recommendations that will be of big help for further improvement of our product in order

to satisfy our valued customers.

As for the product, it has been recommended that we add some more

organic ingredient so that the very aim of the company which is to maintain and promote

healthy living through patronizing organic products will be highly achieved. Also,

respondents highly recommend that the products’ packaging be improved into a more

creative one since packaging is one of the common basis of the consumers purchase

statement.

As for the price of the product, it has been assumed and suggested by the

respondents to be very affordable since organic products are the main ingredients. It will
not be a burden to our company to polish this suggestion since it is one of our main

objective and goal to innovate this product with its corresponding affordable range of

prices.

As for the promotion, it has been revealed by the survey that the most

preferred way is to engage in social media. As of today, because of the presence of

modern and advanced technology and internet involvement, social media is a powerful

way for businesses of all sizes to reach prospects and customers.

As for the marketers, it would be better if we would enhance the convincing

power to maximize profits through developing sales strategies that match customer

requirements. The heart of a business success lies in its marketing. Most aspects of the

business depend on successful marketing. The people behind the successful

penetration of our product lies on our marketing executives with who provide our

business with a chance of being discovered and patronized by prospective customers. 

COMPETITORS ANALYSIS

“Competition in business is a blessing, for without it, we wouldn’t be motivated to

improve.”

― Nabil N. Jamal

Competition is an inevitable part of the business world, for businesses of

any size. It is an important part of the business ecosystem. In fact, competition can be

an effective tool for growing and improving your business since it leads to increased

efficiency.

Organic coffee mix is a combination of healthy and pure organic ingredients

that is meant to be a substitute for the accustomed class coffee with toxic chemicals.

This will be the answer for the people to go back to nature of maintaining and living a

healthy life. Since no organic mix has been introduced by any company, it would be a

very great opportunity to be the very first company to innovate and create this very

healthy and affordable organic coffee mix.

 TABLE 9

COMPETITORS PROFILING

NAME OF

COMPETITORS PROFILE

Products/Services: Turmeric powder

Location: local stores

Strengths:

1. Price is comparatively cheaper

Salabat/Turmeric
2. Purely organic

Weaknesses:

1. Has 1 and only ingredient

Opportunities:

1. Can be added in any drink the customer prefers

Threats:

1. Potential organic powder entrants

 Products/Services: Coffee Mix

Strengths:

1. Large number of potential customers

2. Offers many choices of coffee products

Weaknesses:
Other coffee brands
1. Inorganic ingredients with caffeine

2. Increasing price

Opportunities:

1. Loyal customer base

Threats:

1. Increasing number of competitors

STRENGTHS IN THE COMPETING INDUSTRY

The purpose of the competitive analysis is to determine the strengths and

weaknesses of the competitors within the market, strategies that will provide you with a

distinct advantage, the barriers that can be developed in order to prevent competition

from entering your market, and any weaknesses that can be exploited within the product

development cycle.

Determining the strengths of the business will help to boost the power to

compete with other related businesses. Strengths are a business’ greatest advantage

toward other competitors.

COPING STRATEGIES

As a coping strategy for our business’ strengths, we must make sure to

consider it as a very important ingredient as to the success of our business. Every

business must not be complacent upon knowing their advantages against their

competitor for it will be possible to be converted to a weakness due to lack of attention.

As to our product, since it a strength that no other related product has been

presented to the public, we would make sure that the satisfaction level of the target

market would be achieved along with the company’s main goal.

WEAKNESSES IN THE COMPETING INDUSTRY

A company weakness is any resource a business lacks or restriction to your

ability to achieve business goals. Companies often analyse their weaknesses as part of

a strategic planning process. In some cases, weaknesses are areas for improvements.

Other times, they are natural trade-offs of operational strategies.

A better view of a business’ weaknesses is one of the key to success. It will

be the company’s driving motivation to make improvements and desire for an exemplary

betterment towards competing to the entire world.

COPING STRATEGIES

One of the many options to overcome a weakness is to find a new way to

approach it that utilizes one of your core strengths.

Weaknesses in our product and service portfolio, skills, and distributor

network or supply chain can increase the vulnerability and make it difficult to respond to

external threats. It would really be very important to identify any weaknesses and

prioritize actions to deal with the factors that represent greatest risk. We must make use

of the analysis to develop investment, recruitment or training strategies to overcome the

problems.

OPPORTUNITIES IN THE COMPETING INDUSTRY

A business opportunity, in the simplest terms, is a packaged business

investment that allows the buyer to begin a business. 

A business opportunity on the other hand is a proven concept that generates on-

going income. In other words, a business opportunity is a business idea that has been

researched upon, refined and packaged into a promising venture that is ready to launch.

While multiple business ideas may strike our company on a daily basis, only few will be

profitable in the long run based on market research and feasibility study conducted.

These few would be our real business opportunities.

COPING STRATEGIES

This time of the generation is much modernized. Rapid changes can easily

be observed as said by the notion ‘the only constant thing in this world is change’.

With regards to our company, opportunities that are present and are yet to

come must be properly handled and grabbed. One sure opportunity for our product is

that it is new to the market as to what other businesses offer. It would also be a way for

the product to be patronized especially by those people who are health conscious.

THREATS IN THE COMPETING INDUSTRY

The operating plan of your business plan should include a component called

Business Threats.  A threat is an external factor (outside the business) that

may effect the performance of your business. The most obvious effect would be a

reduction in corporate sales. Often a business faces many threats, other than

competition, when operating its affairs.

Many threats can be seen or can come towards our business. The evolution

of other competitors, changing taste and preferences of the customers, inflation,

recession and many possible circumstances can greatly affect our business.

COPING STRATEGIES

Marketing threats are factors in the external environment that can inhibit a

business from achieving its marketing goals. Identifying these threats is part of the

strategic planning process called SWOT. SWOT analysis helps to develop strategies to
overcome marketing threats, either by using the strengths to reduce the vulnerability to

threats or by eliminating internal weaknesses that make an organization vulnerable to

threats.

Threats can take a number of forms, including the emergence of new

competitors or low-cost competitors, new products that offer better performance, slow

market growth, barriers to market entry, changing customer needs or regulatory

changes that increase cost or make it difficult to comply. You may also face the impact

of changes in the political, economic, social or technological environment.

MARKET SHARE

Market share represents the percentage of an industry or market's total

sales that is earned by a particular company over a specified time period. Market share

is calculated by taking the company's sales over the period and dividing it by the total

sales of the industry over the same period. This metric is used to give a general idea of

the size of a company in relation to its market and its competitors. A company's market

share is its portion of total sales in relation to the market it operates within.

Investors look at market share increases and decreases carefully, because they

can be a sign of the relative competitiveness of the company's products or services. As

the total market for a product or service grows, a company that is maintaining its market

share is growing revenues at the same rate as the total market. A company that is

growing its market share will be growing its revenues faster than its competitors.
 Market share increases can allow our company to achieve greater scale in its

operations and improve profitability. Companies are always looking to expand their

share of the market, in addition to trying to grow the size of the total market by

appealing to larger demographics, lowering prices, or using advertising.

FIGURE 1

Market Share

20%
Others
30%

Others
20%

Others
0.3

Brown Rice Coffee Mix Others Others Others

The figure above shows the company’s desired market share percentage or

market's total sales that should be earned annually. Moreover, the company is opting for

a much higher market share every yearly.

 SECTION VII

MARKETING PLAN

Marketing Objectives
 Increase sales

 Build brand awareness

 Grow market shares

 Launch new products

 Increase profit

 Offer an affordable and quality product

 Enhance customer relationship

As entrepreneurs, we must strive to make our business productive. The first part

is to tend our part in making the Brown Rice coffee mix known to everyone. We are

targeting those people who are health conscious as well as those coffee lovers. We

want the consumers to become dependent to our product and be a leading distributor of

an organic coffee mix in the region.

Customer relations is the process and manner by which a business develops,

establishes and maintains relationship with its customers. Businesses rise and fall

through the support of their customer bases. Consequently, it is absolutely essential

that a company develop effective customer relation.

 Essentially, marketing objectives need to fit in with the business objectives and

drive the direction of the marketing strategy. For the marketing strategies to be effective,

they should be SMART.

The purpose therefore of setting SMART Objectives is to clarify where the

company wants to be, providing a measurable objective that can be monitored and plan

developed to help meet the business goals.

SPECIFIC

Using specific marketing objectives means focusing on one goal per plan to

maximize efficiency. Each objective needs to have its own plan to be effective.

MEASURABLE

For the success of a marketing plan to be determined, there is a need to have

milestones and goals to measure. The measurable aspects of a marketing plan can be

the number of units sold, total sales revenue generated or total profit realized. These

measurable objectives should also be very specific in order to be effective. Setting the

objective of selling 10% more units than the previous year in something the company

can use in the marketing plan.

ACHIEVABLE

Business growth is a gradual and planned success. In creating a marketing plan,

achievable goals should be used. A realistic set of marketing goals motivate staffs

members to try to achieve the success outline din the plans. Setting a marketing goal
that seem impossible to achieve will lower morale and make it difficult to plan budgets

for the coming year.

REALISTIC

The main difference between achievable objectives and realistic objectives is

resource planning. Examples of realistic objective is manufacturing expectations that do

not exceed the historical average sales coverage that is not possible with the current

sale staff.

TIME-BOUND

A marketing plan has a scheduled beginning and ending. This is to allow an

analysis of how the methods worked in attempting to produce projected results. The

company must create a timeline for each marketing project that includes regular dates

for monitoring progress and potentially adjusting the plan. An example is that if the

company has a marketing plan that is scheduled, the actual results versus projected

results must be analyzed to see if adjustments need to be made to achieve the overall

goal of the plan.

MARKET DESCRIPTION

Our company conducted some research for us to determine our best target

market. According to our research, most of the students are fond of drinking coffee but

not too much. On our research we have determined that male are most often to drink

coffee. Females drink coffee only moderately. Lastly we have determined that students

in Eastern Visayas State University are health conscious. Simulated allowance of the

students has a maximum of one hundred fifty pesos a day and a minimum of fifty pesos

a day.

We can also expect that we can get other potential customers outside of the

school, the residence of Quarry district which also has a number of population and the

schools near in EVSU, those areas are part of our market coverage.

MARKET SEGMENTATION

Geographic

EVSU main campus is the center of our market area coverage in which most of

our patrons had enough numbers of population.

EVSU main campus is one of the market area which provides enough population.

We are not only focusing EVSU or inside the university we also considered all

barangays near in our store and schools as a part of our market coverage area. They

will provide us enough number of population to patronize our product.

Demographic

Our product is available for all ages. Its target are those coffee persons and most

especially those who are health conscious without reference to their family number,

size, gender for as long as they can afford the product.

Psychographic

Since the target market area of our business is quite large, this means that we

would be dealing with different kinds of consumers. The buying behaviour of these

consumers would patronize our product in the sense that brown rice coffee mix is good

for the health as well as for the environment. It is also for a fact that anyone can afford

the product in the main sense that the ingredients are purely organic—accurately less

expensive. Since most of the people consider coffee as a part of their daily lives, it is for

sure that half or more of the market will surely to consume the product.

Behavioral

The benefits of our product are very much needed of our body because aside

from being purely organic and far from the usual coffee we know, it has no caffeine. And

aside from that, it ensures lesser cost and would offer healthy lifestyle.
PRODUCT STRATEGY

Product strategy is the foundation of the entire products lifecycle.

One of the strategies to be used by the company is the product differentiation. It

occurs when a product is to be distinguished in the marketplace as competition for a

product that bring about the same need amongst different firms. In order to do so, the

aim is to make the product more attractive to the marketplace compared to the other

competitors. This does not only include price, but also the quality, packaging, and

benefits. A successful product differentiation creates a comparative advantage for the

firm.

The picture below shows how brown rice coffee mix is packaged:
PRICE STRATEGY

Good pricing strategy helps determine the price point at which profits on sales of

products can be maximized. When setting prices, a company needs to consider a wide

range of factors including production and distribution costs, competitor offering and

positioning strategies and target customer base.

The following can be used as pricing strategies of the company;

1. Economy Pricing

Used by a wide range of businesses as it aims to attract the most-price

conscious of the consumers. With this strategy, the business minimize the

costs associated with the marketing and production in order to keep the

products price down. As a result, customers can purchase the products

they need without any frills.

2. Pricing at a Premium

With this strategy, the business sets cost higher than that of its

competitors. It is often most effective in the early days of the products life

cycle.

3. Price Skimming

This strategy helps in maximizing sales on new products and services. It

involves setting high rates during the introductory phase. The company

then lowers prices gradually as competitor goods appear on the market.

 4. Psychology Pricing

This refers to techniques used to encourage customers to respond on

emotional level rather than logical ones.

TABLE 10

The table below shows the regular and promo pricing of Brown Rice coffee mix:

PRODUCT REGULAR PRICE PROMO PRICE DESCRIPTION

Brown Rice P 12.00 1 box = P 140.00 5% discount during

Coffee mix Christmas seasons

PROMOTION STRATEGY

Promotion helps in the further development and growth of a product. It provides

active encouragement for the acceptance of the venture.

TABLE 11

PROMOTION SCHEDULE OF

STRATEGIES ESTIMATED COST IMPLEMENTATION

Before and during the

Flyers/Leaflets P 500.00 business operations

Word of Mouth None Whenever a customer who

 is satisfied with the product

tries to convince a group of

peers

Discounts P 500.00 After the company had

regain its costs and earn

profits from its business

operations

PLACE STRATEGY

Place strategy plays a fundamental role in the marketing mix of a product or

service. It outlines how and where the company will place its products and services in

an attempt to gain market share and consumer services.

To determine which distribution method to be used, the company must

understand the needs of the consumer and determine which avenue provides the best

ability to put the product or service in front of the potential buyers.

DIRECT CHANNEL

Producer Consumer
INDIRECT CHANNEL

Producer Sales Reps. Consumer

PEOPLE STRATEGY

Many components are to be included in the overall business strategy—one is the

people strategy.

The following are some people management strategies to be used by the company:

Recruitment and Selection: It all starts with hiring the right person for the right

position. Once positions has been outlined, a recruiting plan including responsibilities,

knowledge, skills and core competencies will follow.

Training and Development: Since employees are the greatest asset, their

continual development is important. Annual compliance training, opportunities must be

present to enhance their performances.

Performance Management: The measurement of each person’s performance is

necessary to ensure meeting the expectations. It allows feedbacks which gives the

employees opportunities to improve. It is good to have a performance management

process that does not only rewards high performers but also ties compensation

increases and bonuses to individuals and company performance.

Employee Engagement: The best way to ensure performance is to measure

their satisfaction.
 SECTION VIII

PRODUCTION AND OPERATION PLAN

PRODUCTION OBJECTIVES

Setting production objectives is very important to guide the employees and

workers so that they will know why they are producing and innovating new products in

the industry. All these objectives will keep them motivated because it will not only

benefit the company but because also the employees and the customers as well.

The following are the production objective of the HERBS TO NERVES Company:

 To create and produce a coffee mix that would promote healthy living through the

use of organic ingredients.

 Become the largest producers of organic coffee mix inside and outside the city.

 To increase the production volume of 20% in the first year of operation.

 To utilize the use of organic ingredient efficiently.

To achieve such objectives, the company shall focus on making the product

more competitive among other products present in the industry. Our product has a

potential and is consistent to the consumer satisfaction, in line with the company’s main

goal which is to offer healthy lifestyle through organic ingredients that could offer

affordable price to the target market.

PRODUCTION PREPARATION PROCESS

It is very important to undertake some preparation activities such as sanitation of

the place, sterilization of the tools, etc…before the actual production to keep the product

clean and safe for the customers. Sanitation of the place is done before anything else.

Cleaning the area and wiping the surface where the raw materials are placed. After the

sanitation of place is the sterilization of the tools that have to be used in the production

process. This is to keep the product clean and safe to the customers. After undertaking

all these preparatory activities, preparation of the product take place

PREPARATION OF
INGREDIENTS

ROASTING

BOIL THE ROASTED BROWN

RICE, ADD THE COCOA POWDER
TURMERIC POWER AND SUGAR

LET THE LIQUID COOL DOWN.

POWDERING
 SPRAY DRY PROCESS

Notes: It is a very crucial to ensure proper product handling including the hygienic
Brown
practices. Staffs are required to wear aprons andRice
hairnet every time they do the
Coffee
preparation process. These will keep the productMixclean and presentable to the
customers.

PRODUCTION PROCESS AND FLOW CHART

GATHERING AND PREPARING

BROWN RICE COFFEE MIX

-Gather the ingredients

 Brown Rice
 Cacao Seeds
 Turmeric
PRODUCT PACKAGING
 Sugar
-The powder is now ready to be
packaged (12 grams)
-Prepare the equipment’s/tools
 Miller/Grinder
 Casserole
 Pan
SPRAY DRYING
 Spatula
-Let the liquid cool down and spray
 Bowl
dry
 Clean Cloth

BOILING
-Put the roasted brown rice in the
clean cloth and put in a boiling water
DRYING -Add cocoa powder, turmeric powder
-Cacao seeds and sugar (10 mins.)
-Turmeric (approx.3 days)

PEELING
ROASTING
-Cacao seeds and turmeric/ginger
RAW MATERIALS

The table shows the raw materials and total costs used in the daily production of

organic coffee mix.

RAW MATERIALS NAME AND QUANTITY COST TOTAL

DESCRIPTION PER UNIT COST
Brown Rice is a
whole grain
rice, with the 8 kilos P 50.00 P 400.00

inedible outer
hull removed.

Cacao seeds
are partly
fermented fatty 3 kilos P16.00 P 48.00

seeds that are

used in making
cocoa.

Ginger is a
bright-yellow 1 kilo P 22.00 P 22.00

aromatic
powder
obtained from a
rhizome plant of
ginger family.
 -The sugar
enhances the
taste of organic 2 kilos P 67.00 P 134.00

coffee mix.

P 604.00
TOTAL COST:

TOOLS AND EQUIPMENT

This table below shows the tools and equipment used in the production of organic
coffee mix.

TOOLS NAME AND NUMBER COST TOTAL

DESCRIPTION OF UNIT PER COST
UNIT
Teaspoon – for the
used of having a
precise 3 pcs. P10.00 P30.00

measurement of the
turmeric and cacao
powder. A small
Te spoon used typically
aspoon for adding sugar to
and stirring hot
drinks.
 Mixing bowl used to
have all the
ingredients to be
mixed properly. 2 pcs. P15.00 P30.00

Larger bowls are

Big Bowl most often used to

prepare medium
amounts of sauces or
for mixing dried
ingredients.
Knife used for
chopping, slicing and
most other cutting 2 pcs. P35.00 P70.00

Knif tasks.
e
Hairnet to keep from
contacting exposed
food, clean and 5 pcs. P15.00 P75.00

sanitized equipment,
utensils and linens.

Hairnet

Used for drying the

cacao seeds and 2 pcs. P50.00 P100.00
turmeric.

Bila-o
 Used for boiling the P 500.00 P1,000
2 pcs.
ingredients.

Casserole

Used for roasting one

of the main 2 pcs. P 700.00 P1,400
ingredient.

Pan

TOTAL COST P 2, 705

EQUIPMENT

EQUIPMENT NAME AND NUMBER COST TOTAL USEFUL

DESCRIPTION OF UNITS PER COST LIFE
UNIT
Miller grinder –
used for milling
or grinding the
ginger and 2 pcs. P3,000 P6,000.00 5 years

cacao seed.

Stove Used in cooking 1 pc. P 1,000 P 1,000.00 5 years

the ingredients.
Fire Extinguisher Used as a tool
for emergency 1 pc. P 2,000 P 2,000.00 5 years
purposes.
TOTAL COST P 9,000.00
UTILITIES

The table below shows the utility cost in the production process consisting the
water and electricity bill

Utilities Description Unit cost Total cost

Use to clean the

Water utensils. P200.00 a month P200.00

Electricity P1,000.00 a month P1,000.00

TOTAL P1,200.00

PRPODUCTION FURNITURES AND FIXTURES

 The table below show the furniture and fixtures to be used in the Herbs to Nerves
Company.

Furniture and Description of No. of units Unit of cost Total cost

Fixtures the use

Used as stand
Tables where 2 pcs. P700.00 P1,400.00
ingredients are
put.
Used by the
Chairs production 5 pcs. P300.00 P1,500.00
staff.
For the water.
Faucet 1 pcs. P800.00 P800.00

TOTAL P3,700.00

PRODUCTION SCHEDULES
 The table below shows the production schedule of the HERBS TO NERVES
Company:

Product Daily production volume Annual production

volume

Organic coffee mix Sachet-300 pcs. P43,200.00

P12.00/ sachet

Waste Disposal Practices

The company must ensure the cleanliness in the working area by observing its

proper waste disposal at all times. Wastes from the company’s production process

should be segregated properly. As a support to the cleanliness program for the

environment the company must be able to segregate biodegradable wastes like

peelings of the organic ingredients from the non-biodegradable ones like the plastic

packaging materials and many other.

BUSINESS OPERATION PROCESS

 Cleaning the store
area.
(7:30-8:00 am)
\C

Store opening
(8:30 am)

Operating time
(8:30 am – 7:30
pm)

Inventory
(7:30-8:00 pm)

Closing
(8:00 pm)

OPERATION SCHEDULE
 The table below shows the operation schedule of the Herbs to Nerves Company.

Business Activity Time Schedule Person in Charge Monitored by

Cleaning the store 7:00 - 8:00 am Production Personnel Manager

area. Manager

Store opening. 8: 30 am Financial Manager Marketing Manager

Operating time 8:30 am – 12:00 Marketing Manager Production

noon Manager

Lunch Break 12:00 – 1:00 pm

Operating time 1:00 – 7:30 pm Production General Manager

Manager

Inventory 7:30 – 8:00 pm Financial Manager General Manager

Closing 8:00 pm Personnel and Financial and

Marketing Manager General Manager

OPERATION SCHEDULE ON PRODUCT MANUFACTURING

The table below shows the operation schedule on product manufacturing of the Herbs

to Nerves Company.

Activity Time Schedule Person in Charge Monitored by

Cleaning the 7:00 – 7:30 am Production Staff Production Manager

production area.

Preparing the 7:30 am – 8:00 am Production Staff Production Manager

ingredients and
equipment.

Peaching the dried 8:00 am – 9:30 am Production Staff Production Manager

cacao seeds and
turmeric

Roasting the brown 9:30 am – 10:00 am Production Staff Production Manager

rice

Boiling all the main 10:00 am – 11:00 am Production Staff Production Manager
ingredients

Spray drying 1:00 pm – 3:00 pm Production Staff Production Manager

Product packaging 3:00 pm - 5:00 pm Packaging Staff Production Manager

Note:

*Prior to the start of manufacturing, cacao seeds and turmeric undergoes the process of
drying and peeling.

*After drying and peeling the two ingredients, the process of powdering takes place.

PRODUCTION PROCESS AND FLOWCHART

Gathering and
Preparing
 Drying

Peeling

Roasting

Boiling

Spray drying

Product Packaging

Brown Rice
Coffee Mix

STANDARD OPERATING POLICIES

 Each has its set standard operation policies to be followed. One of the factors

we are considering is the control of our products quality from the raw materials used,

tools and equipment and down to the final product.

The following are the standard operating policies of the Herbs to Nerves Company.

 Maintain cleanliness, sanitation and orderliness in the working area.

 Time is strictly observed, thus absence without reasonable excuses will not be

considered and will be charged to their salaries. They should report to the

workplace at exactly 7:30 am in the morning.

 The store must be open at exactly 8:30 am in the morning.

 Every employee must wear the proper uniform on working days.

 Every person incharge must attend to their assigned tasks accordingly.

 Smoking and drinking within the business premise is strictly prohibited.

 In such a case where troubleshooting or minor problem exists, personnel should

report to their respective heads or supervisor to facilitate the problem.

 Practice confidentially.

 Skilled workers must be properly dressed (hairnet, apron and gloves) while

working.

 Employees should patronize the product.

 Partners and employees should work in harmonious working environment to

attain the company’s predetermined objectives.

SECTION IX
 ORGANIZATIONAL PLAN

Management Objectives
Setting management objectives in an organization is very important as it

improves performance by clearly defining objectives that are agreed by both the

management and employees. Goal setting and action planning ensures better

participation and commitment among employees, as well as alignment of objectives

across the organization.

The following are the management objectives for the company’s personnel:

 Strong employer-employee relationship

 Clarity of the organizations goals and objectives

 Communication and coordination

 Loyalty and openness

Maintaining strong employer-employee relationship is the key to longer operation

and success of an organization as employees are going to be effective and efficient in

their individual tasks and they are in a harmonious relationship with their employees.

Clarity of the organizations goals and objectives will be the guiding light for the

employees to monitor their works to see if it is aligned with the purpose of the
organization. This will also lead them to the achievement of the organizations target

goals.

Communication among employees inside the organization is very important since

information’s are in need to be disseminated. If there is communication, coordination

follows. Because there is openness within employees they are motivated and are

encouraged to do their individual tasks which is expected from them. They will also

expected to help one another in case of difficulty of one co-worker.

Lastly loyalty and openness towards the organization will move the employees to

be productive for the success of the organization. This will build the trust and confidence

of the organization as well as its employees.

MANAGEMENT TEAM
 Managerial
Number Qualification Function / Responsibilities
Position

- male/female

- 25 to 30 years old

- must have a bachelor’s -Responsible for overseeing all

degree in business administrative functions in the

General
1 administration or management organization
Manager
- must have 3-5 years of -involves the major part of

experience in the field of loading and directing employees.

business

- male/ female

- Responsible for the financial

-male/female
health of the organization
23 to 30 years old
- Produce financial reports,
- a bachelor’s degree in
investment activities and develop
accounting, finance or
Financial strategies and plans for long term
1 business administration
Manager financial goals of the organization
- must have 2 to 3 years of
- Reviewing financial reports and
working experience
financial forecast.
- male/female

1 Production - male/female - Responsible for the planning,

Manager - 23 to 30 years old coordination and control of

 manufacturing processes.

- Makes sure that goods and

- a graduate of marketing or
services are produced efficiently
business administration
and that correct amount is
- must have at least 2 years of
produced at the exact cost and
business related experience.
quality level.

- male/female
- Responsible for managing all
-23 to 30 years old
marketing activities within the
-a graduate of business
organization
administration or management
- Involves developing the
Marketing -must have at least 2 years of
1 marketing strategy for the
Manager experience in the field of
company in line with its
business.
objectives
-must have at least 2 years of
-performs periodic performance
experience in the field of
evaluations of the staff.
business

-male/female -Responsible for managing,

-23 to 30 years old creating implementing and

Human
-a bachelor’s degree in supervising policies/regulations
1 Resource

Manager business administration or which are mandatory for every

human resource management. employee.

--must have at least 2 years of -manages employee

 compensation, recruitment,
experience in the field of
selection, employee relations,
business
safety employee engagement

and development.

COMPANY PERSONNEL

Number Managerial Position Qualification Functions/Responsibilities

1 Cashier -male/female -collects payments, issue

-23 to 30 years old receipts to the customers and

disburse money
 -must be a high school

graduate

-honest, with pleasing

personality

-male/female

-23 to 30 years old

-responsible for the production
2 Production staff -must be a high school
of the product
graduate

-with pleasing personality

-male/female -responsible for the packaging

of the product
2 -23 to 30 years old

Packaging staff -must be a high school

graduate

-with pleasing personality

-male/female
2 Sales -responsible for presenting the
products and to sell them to
Representatives -23 to 30 years old potential customers

-must be a high school

graduate
 -with pleasing personality

ORGANIZATIONAL CHART

General Manager

ANGELICA NACIONAL

Financial Manager Production Manager HR Manager

Marketing Manager
CHERRILYN VILLANTE JESSIE ANN RAQUEL CATHERINE RAQUEL
RONNABELLE AGUIRRE
 Production Sales
Cashier Staffs Representatives

Packaging Staffs

The chart above represents the relationship, standing and division of

responsibilities among the managers of the Herbs to Nerves Company. The general

manager serves as the top executive which supervises the other managers and is

responsible for the structure and overall strategies in which the organization must

follow. She is the one who organizes and directs business operations, issues and

policies and also ensures the implementation of a strategy designed to make the

business. The financial manager supervises its subordinates composed the cashier, the

production manager to the production and packaging staffs. It guides the employees to

know their rights and responsibilities and find out whether he is incompetent in his work.

Each one has the power of authority to their subordinates.

COMPENSATION SCHEDULE

Work/Position Compensatio SSS Philhealth Other Total

n Rate Benefits Monthly

Income
 Cashier 285 200 100 13th month

pay

Production 285 200 100 13th month

Staffs pay

Packaging 285 200 100 13th month

Staffs pay

Sales 285 200 100 13th month

Representatives pay

TOTAL

The following are the wages and other benefits that an employee will receive in

exchange for the services they offered in the organization.

OTHER FORMS OF REWARDS AND COMPENSATION SCHEME

Employees
Bonuses (13th month
Incentives
pay)
  Transportation allowance

 Boarding house allowance

Every company needs a strategic reward system in order to motivate employees

towards achieving strategic goals. The major goal of an organizations is to keep its

employees motivated so that they will continually performs better at their tasks. Giving

rewards to the employees help them motivated. When an employee helps an

organization in the achievement of its goals a rewards will follow.

The following are the rewards given by the company to the employees.

 Bonuses - by rewarding an employees’ performance for the previous years

 Incentives – employees must be rewarded by putting their best effort and hard

work in the organizations.

 13th month pay – this will be given to the employees

OFFICE SUPPLIES

Office No. of Units Unit Cost No. of times Total Annual Cost

Supplies purchased in a
 year

Bond papers 3 rims 600 Twice a year 3,600

Ball pen 3 boxes 72 Twice a year 432

Stapler 5 pcs. 150 750

Staple wire 4 boxes 55 Quarterly 880

Folders 12 pcs. 10 120

Envelopes 12 pcs. 15 150

Receipts 12 pcs. 20 Twice a year 480

Ink (printer) 3 boxes 1,200 Twice a year 7,200

Record book 2 pages 75 Quarterly 1,200

(300 pages)

Total P14,812

STORE EQUIPMENT

Store Equipment No. of Units Unit Cost Total Cost

Table 3 1,000 3,000

Chairs 5 650 3250

Miller Grinder 2 3,000 6000

Total P12,250
MANAGEMENT POLICIES

Management policies establish the rules of conduct within an organization,

outlining the responsibilities of both employees and employers. Depending on the needs

of the organization various policies establish rules regarding employee conduct,

attendance, dress code, privacy and other areas related to the terms and conditions of

employment.

The following are the management policies established by the Herbs to Nerves

Company to lead its employees in achieving the goals and objectives and to maintain

unity and harmony within the organization.

STAFF DEVELOPMENT ACTIVITIES

Employee development is helping the employees acquire skills they need to

succeed. An example is the conduct of various trainings. Other developmental

programs offer employees resources that they can use on their own to further their

careers. Offering employee development activities creates more versatile and prepared

workforce to help move the company forward.

Off-site Training
 Training seminars or classes offered outside the company that are pertinent to

staff development can help the employees hear ideas from an objective third party

trainer. It can help to spur new ideas and help the company come up with creative

solutions to ongoing issues.

Supervisor Contact

Strengthening the working bond between employees and supervisors not only

improves productivity, but also creates an on-the-job training environment. Supervisors

who make it a point to spend time with employees each day offer advice and insight that

is valuable to the career development of each staff member.

Career Paths

A dynamic approach to establishing career paths allows company to benefit from

the employee developmental activities that employees are offered.

ORGANIZATIONAL SOCIO CORPORATE ACTIVITIES

Corporate social responsibility, often abbreviated as CSR, is an organizations

initiatives to assess and take responsibility for the company’s effects that go beyond

what may be required by regulations or environmental protection groups.

As for the company, the following are its socio corporate activities:

Community Involvement Programs

 Funds local teams of employees to select and work on specific community

projects that they identify in their communities

Works Well-Being

People are the foundation of every business, thus the company must address

employee’s needs.

SECTION X

FINANCIAL PLAN

Financial Objectives

 To release 936,000 products per annum

 The company is targeting to release 300 pieces daily sachets for 5 days a

week.

 Maintain a normal positive cash flow

Positive cash flows does not necessarily mean profit, and is usually due to

a careful management of cash inflows and expenditure. Normal situation where the

cash inflows during a period are higher than the cash outflows during the same

period.

 Earnings growth

A measure of growth in a company’s net income over a specific period,

often one year. The term can apply to actual data from previous periods or estimated

data for future periods.

Financial Assumptions

1. Assuming operations started in January 2017

2. Sales of goods sold should increase by 10% annually

3. Depreciation of equipment on their useful life is 5 years

4. Salaries and other miscellaneous expenses shall remain constant

Financial Ratio Analysis

Gross Profit Margin = Gross Profit Sales

Year Gross Profit Sales Gross Profit Margin

2018 ₱ 425,379.00 ₱ 936,000.00 45.45%

2019 ₱ 468,295.00 ₱ 1,029,600.00 45.48%

2020 ₱ 515,502.60 ₱ 1,132,560.00 45.52%

2021 ₱ 567,430.96 ₱ 1,245,816.00 45.55%

2022 ₱ 624,552.16 ₱ 1,370,397.60 45.57%

The table above shows the company’s financial health and expresses the profit

as percentage of the total sales revenue generated. The computation above shows that

the gross profit margin of the company remains constant since the product price will

remain unchanged for the first 5 years of the operation.

Net Profit Margin = NI after tax/sales

Year Net Income After Sales Net Profit Margin

Tax

2018 ₱ 119,149.10 ₱ 936,000.00 12.73%

2019 ₱ 149,190.30 ₱ 1,029,600.00 14.49%

2020 ₱ 182,235.62 ₱ 1,132,560.00 16.09%

2021 ₱ 218,585.47 ₱ 1,245,816.00 17.55%

2022 ₱ 258,570.31 ₱ 1,370,397.60 18.87%

The table above shows the percentage of the revenue remaining after all

operating expenses, interest, and taxes have been deducted from the company’s total

revenue.

Return on Assets = Net Income after Tax/Average Assets

Year Net Income After Average Assets Return on Assets

Tax

2018 786,103.17 41.52%

2019 1,174,029.27 30.57%

2020 1,596,433.75 24.62%

2021 428,710.59 2,055,040.54 20.86%

2022 466,371.82 2,551,659.76 18.28%

The table above shows how efficient the management is at using its assets to

generate earnings.
 SECTION X

CONTINGENCY PLAN

Potential Problems/Threats/Risk Contingency Action

Economic Downturn -Make sure business strategies and plans

can adapt to new circumstances

-Good housekeeping at any stage of the

economic cycle

Natural Disasters -Make sure there is adequate insurance

coverage

Recession -Tighten credit terms and work past due

Prices and terms accounts intensively

Labor -Consider hiring freeze. Pay some overtime

the hire someone who will be lay off only a

month

Materials and Inventory -Tighten inventory policy

 SECTION XII

GROWTH PLAN

Planning for growth is the key to any business throughout its existence. Every

successful business regularly reviews it business growth plan to ensure it continuous to

meet its need. Once you have reviewed your progress and identified the key growth

areas that you want to target, it’s time to revisit your business plan and make it a road

map to the next stages for your business.

 Plan and allocate resources effectively

 Use target to implement growth plan

 Cover strategy for improving the existing sales

 Produce more product

 Expand business

 Invite more investors

 ARTICLES OF PARTNERSHIP
OF

HERBS TO NERVES COMPANY

KNOW ALL MEN BY THESE PRESENTS:

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

Philippines, have voluntarily bind ourselves together for the purpose of forming a

general 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 this partnership shall be “Herbs to Nerves Company” and

shall operate and transact business under the said firm name.

ARTICLE II: That the principal office of the business shall be located at Tarcela St.

Tacloban Public Market.

ARTICLE III: That the names, citizenship, address and designation of the parties of this

partnership are as follows:

 Name Citizenship Address Designation

Angelica Nacional Filipino Calbiga, Samar General Manager

Cherrilyn Villante Filipino Naval, Biliran General Manager

Jessie Ann Raquel Filipino Jaro, Leyte General Manager

Ronnabelle Aguirre Filipino Babatngon, Leyte General Manager

Catherine Raquel Filipino Jaro, Leyte General Manager

ARTICLE IV: That the purpose of the partnership shall be to engage in processing an

organic coffee mix and to obtain profits and divide among the partners.

ARTICLE V: That the capital of the partnership shall be two hundred fifty thousand

pesos (250,000.00) wherein each partner shall contribute 50,000.00 in cash.

ARTICLE VI: That ANGELICA NACIONAL shall be the managing partner and as

general manager shall devote her entire time to the conduct of the business. Without

the consent of all the other partners, none of the partners may borrow or lend money ,

make deliver or accept any commercial papers or execute any mortgage, security

agreement, contract to purchase or sell any property.

ARTICLE VII: That the term for which said partnership is to exist is from the original

recording of the partnership by the Securities and Exchange Commission until the

partners desire to continue.