Section 1

EXECUTIVE SUMMARY

Mission

We, the stockholders, management team and employees, commit ourselves to continually:

● Encourage people, especially the millennials to be mindful enough of the waste

materials they’ve been using.
● Provide a nurturing environmental benefit to the economy and of the entire population.
● Maintain quality employment for the employees by providing competitive benefits, good
working conditions and opportunities for growth and development.

Vision

Baggia Technology Company, committed to excellence for the common good, living and
spreading the love of our compassionate Jesus to the neighborhood.

Contact Information

Baggia Technology Company is located at Talomo, Davao City and could be contacted through
email (BaggiaTC@gmail.com) and through direct phone contact (09234456789). For more
information, Baggia Technology Company is available as an online shopping outlet with the
website www.baggiaproducts.com where you can directly contact us as well.

Purpose

The Gijutski is said to be the first ever concrete making robot out of disposed garbage. The
mission of this is to provide convenience to the workers and settlers while also proving to be
extremely beneficial to the environment. It provides increased efficiency for workers as materials
can be easily obtainable and is available as most of the population dispose garbage daily.
Dealing with disposed garbage has been a huge issue to the society and Baggia Technology
Company is hereby conducting ways to help solve this issue.

The company aims to produce a product for a safer environment while having to help the
society’s high intellectuals in the engineering and architecture field or even to those in the field
of housing construction. This might be the beginning of the next generation concrete products
with the use of waste materials. It would be a huge change to the economy as this advanced
technology produces high quality products of concrete.

As you can see, people consume plastics everyday, and it is impossible to dematerialize this
product even how hard we try. It has been a part of the household and even in work areas most
especially to food sectors. It has also been a part of the convenience of the people in our
society.

Improper waste disposal has been a huge issue to the society nowadays. Gijutski is a type of
Advanced Intelligence technology that helps lessen the number of waste and could create a
better environment by creating concrete products with the use of garbage by turning these
garbages into a cement product with the use of Gijutski.

People need this type of advanced technology in their community to sustain a healthy and fresh
environment. Though it might be expensive, this product is totally worth it on one’s community. It
does not only save our environment but it makes the life of the people in the field of construction
easier. In addition, this product would be the answer to the rough roads our community has and
on building structures. Most motorists would say that it is more convenient riding through roads
that are concrete and asphalt

The goal of the company is to provide a solution for a healthier community in connection with
the advancement of technology. We also aspire to give the future engineers an inspiration to
contribute towards a greater cause of helping in the preservation of the environment.

As a company, we urge everyone to embrace advancements in technology that is in line with

building a pollution free, clean, and most of all, a sustainable world. Let us create a greener and
cleaner planet together, starting with our own Gijutski robot and future products to come. With
the help of everyone in the community, the product would be more affordable. This could be
bought as a whole community, as a group, or even as an individual.

Section 2
 BUSINESS OVERVIEW

Baggia Technology Company is a privately-held Industry, having had greater than 50,000,000
pesos in sales during 2016 market test. Baggia won the R.O.B.O.T 2019 competition worldwide.
The company is named after all of its shareholders. The primary activity of the business is
manufacturing and developing ground-breaking technology for all. The target audience of
Baggia Tech are cement manufacturers and construction companies. Our product makes the
process of creating concrete easier and faster. It also decreases the capital needed in order to
supply the needed materials to create cement. The Philippines Construction Companies are
seeing growth over the next five years as both the economy and corporate spending increase.
Through management’s working relationships with the construction and design services firms,
Baggia Tech is expecting to obtain contracts on at least 12 companies. Aside from that, our
product can also help society decrease the number of garbage to decompose. Baggia will help
our community in getting rid of waste. Also, this will help us minimize time and effort since there
is no manpower needed in disposing garbage. This technology has advanced since this is the
first machine that converts garbage into cement.

Financial projections for the first few years

Year 1 Year 2 Year 3

Revenue ₱84,000,000 ₱84,000,000 ₱84,000,000

Equipment ₱150,000 ₱175,000 ₱250,000

Sales (COGS) ₱84,000,000 ₱84,000,000 ₱84,000,000

₱700,000 ₱700,000 ₱700,000

Gross Profit Expenses: 0 0 0

Yearly

Quarterly ₱83,300,000 ₱83,300,000 ₱83,300,000

Net Profit ₱500,000 ₱800,000 ₱1,000,000

Sales and Marketing ₱650,000 ₱800,000 ₱950,000

Research and ₱600,000 ₱750,000 ₱800,000
Development

Operation Expenses ₱5,000,000 ₱5,000,000 ₱5,000,000

Taxes ₱350,000 ₱400,000 ₱450,000

The table above shows how the Baggia Technology Company product “Gijutski Robot”
became effective because of the increasing demand of the supply every year. It became the
most relevant robot that is conducive and can help to provide cement by not using
expensive material but using the garbage as an alternative material.
 Section 3
SALES AND MARKETING PLAN

The objective of Baggia Technology Company is to create an alternative way in creating a

greener environment by building a product that benefits the society in reducing disposed
garbage.

Target Market

The product, Gijutski Robot, gives a huge contribution to Engineers and Architects and even to
those cement dealers. Cement Trading is an interesting business and Baggia Technology
Company plans to collaborate with Cement Traders. Cement Trading would be more convenient
for the company links with their business. Additionally, Engineers and Architects are known to
be experts when it comes to building infrastructures. Their high interest in buildings is a good
target for the company.

Marketing Strategy

Gijutski robot is a product of people with great intellects that could create a better living for
society. Our population is fond of buying products, especially when it is necessary for living. The
product is of great potential in our generation for it provides what is needed every place we go
to. The company provides online buying upon visiting our website www.baggiaproducts.com or
customers could contact the company with the phone number 09234456785. Online Buying is
convenient and could save more of your precious time, buyers with a hectic schedule can do
online buying and they would be assured that the product will come with good hands and proper
handling, however, it would be better to visit at our stores nationwide. Through this, you will be
assured that the product is with great performance and to personally be introduced the
procedures on how to use the product. Gijutski is an all-new generation machine built with a
handling that is easy in any way possible. The employees of the company would be delighted to
provide the customers with the kind of service every customer would desire.

As for our advertising strategy, online advertising would be most preferred as Baggia
Technology Company’s main mode of sales would be online. Video advertising is a must pick for
a product like the Gijutski robot as it provides the customer a deeper understanding of the
purpose of our product and most of all, so that they may find the claims that our product can do
(converting wastes to cement) believable through a tutorial and demonstration. Advertisements
can be advertised in platforms such as Youtube so that it may reach a wider international
audience. As for the approach to local audience and advertising outside of the internet,
billboards or flyers would be of utmost importance in securing customers of the local kind.
Promotions and live demonstration events will also be recommended as our product is
revolutionary in the age where waste pollution is rampant, so people will most likely be looking
for a product that is eco-friendly and efficient at the same time. Our product will surely pique the
interests of people as the process of converting wastes such as plastic to cement will surely
arouse the curiosity of the people, especially of the target audience (construction workers, civil
engineers, architects, etc.)

Pricing Strategy

Expecting low-cost provision is not the goal of the company. Baggia Technology Company
targets to provide high-end equipment for buyers or customers. However, the online loyalty
program will help encourage customers to create their online profiles and purchase new
equipment. The company also offers discounts to those specific customers with a great
background history in the company. Though the materials used to create the product build this
equipment is quite costly, the Gijutski Robot ranges from 700,000- 800,000 pesos. Compared to
other robots used in fields such as industrial engineering and factory work, our robot costs
cheaper by a 200,000 to 300,000 margin. And though the regular cement bags would appear
much less costly, it is hindered by the need for it being needed in vast quantities, while the
Gijutski robot ensures that cement that is produced from it will make up for the costly investment
made for it as it eliminates the need for quantity.
 Section 4
OPERATING PLAN

In order to have a successful job operation, the following information will help identify the
operating costs and secure profitability. Operating plan details involves strategies for managing,
staffing, manufacturing, fulfillment and inventory.

Location and Facility Management

The Baggia Technology Company is located at Talomo, Davao City with its office and the site for
making the product. The company consists of the equipment and materials that is needed to
have a durable product which is Gijutski Robot. The company has a wide open space for car
parking. The company building is complete in terms of electricity supply, water, machines, and
other equipment needed.

Daily Operations

Our daily operations will consist of the following:

● Assembly of Gijutski Robot

● Programming of Robot Functions
● Fine Tuning
● Sales Management

The assembly phase of the robot involves the manufacturing of robot parts. This involves
welding of metals, putting circuits and wiring together. These robots need to be manufactured to
produce a suitable product for usage and can be sustained after many uses. Sales
management will also be part of daily operations as there is bound to be numerous clients which
means that staff should be able to handle and negotiate with these clients to ensure that they
are satisfied with the service Baggia TC provides.

Production Method

● Flow Production

Baggia Technology is a company that produces high quality of product which is the Gijutski
Robot that being produced in a step by step process and when the product is almost done it will
move to another workstation and the other parts will be added by sequence until the final
product is finally being assembled.
Service Method

The Baggia Technology Company will make sure to offer the proper service and to entertain
every client. Purchasing the company’s product will help each client not just them but also our
environment. The company will make sure to provide proper manufactured product and its
packaging with be durable until it will be distributed to the target clients.

Inventory Control

The company will have the following systems to monitor the products:

● Three Bin System - by this system the company will be able to monitor on the reserved
products. This system consists of the manufacturing firms that keeps a stock of inventory
in two bins and at the same time the supplier of the inventory will keep one bin reserved
at their location.
● Fixed Order Quantity - this system will help the arrangement of the inventory level being
continuously monitored and when the replenishment stock is ordered in the
previously-fixed quantities whenever at hand stock falls to the established reorder point.
● Just-In-Time System - this system helps to ensure that the components and employees
used to create finished goods are delivered to the production area on time.l

○ Sales and Customer Service

The company will make sure that when working together the Sales and Customer Service team
wioll be having comfortable and user-friendly buying experience. The sales team will help the
customer to find and educate about the products and services while the customer service team
will ensure the interactions with the business to remain positive over time. We make sure to train
each staff to be knowledgeable about the product in the case that a client will ask about a
product. Workshops and training are provided to the staff so that they may also address
iconcerns about operating and using the product.

Maintenance, Cleaning, Re-Stocking

The company will ensure that the good service will be maintained, especially when it comes to
cleanliness of the product whenever it is made. Also, the company will make sure that
re-stocking will still consist of a good quality product. Maintenance of products will be done
weekly to ensure that the product is in top notch condition and can be sustained even after a
long time or after being used numerous times. Maintenance of materials shall be done regularly
every two weeks in a month to ensure the quality of materials, products, and the like are
maintained. This will include cleaning of the inventory, checking on the materials and products
produced. Re-stocking will be done every two months to ensure consistent

Receiving and Delivery

The Company will make sure that the receiving is centralized in its receiving site for the orders
to be replaced in the department so that it will be delivered in its proper packaging and it will
be distributed properly. The delivery will take around 2-3 days if the client is within Davao City,
outside Davo city will most likely take 2-3 weeks, and international orders will take 1-4 months to
arrive in safe condition.

Legal
To legalize the Gijutski Robot the Baggia Technology Company will have the following:

● Bylaws
● Meeting minutes
● Operating Agreement for LLC’s
● Non-Disclosure Agreement
● Employment Agreement
● Business Plan
● Memorandum of Understanding
● Online Terms of Use

Licenses and Permits

The company is already approved by the Securities Exchange and Commission (SEC) and
already got the permit to continue the business.
● Securities Exchange and Commission (SEC)

Environmental or Health Regulations

Approved by:
Department of Health (DOH)
> The company make sure that it is approved already by the Department of Health (DOH) and
it is told to continue and maintain the environment of the site of the company.

Patents, Trademarks and Copyrights

The company’s patents, trademarks and copyrights are known as intellectual property that
generally refers to right associated with the intangible concepts and knowledge and it is already
atpproved by the government.
®️
©️2016 BaggiaTech
 ● The Baggia Company will gather all the needed files in order to run the business without
any problems.

The Company will follow this idea in order for the manufactured product will be legalized in
every different aspects. By this, the company will transact safely to their clients and will make a
great image to the consumers.

Personnel Requirements

The Company requires at least 500 employees. These employees will fill two departmental
needs - Product Development Department and Sales Department. The Product Development
Department will require Robotics Engineer, Software Developer, Technician and Operators. The
Sales Department will Sales Engineer and Robotics Account Manager.

The employees are required to have a degree in their profession, should have expertise in the
position their applying for, must be able to work well independently and in a team-based
environment. Also, he/she must be highly motivated, able to endure long working hours, and
possess leadership skills.

Below provides information on each department's staffing needs.

● Robotics Engineer - will oversee practically every aspect of the development of the
robot, from safety to testing to analyzing and reviewing every movement.
● Software Developer - writes and codes schematic design along with the robotics
engineer to assure the robot performs the functions it's designed to carry out in a safe
and precise way.
● Technician - will repair and maintain robots and build some robotic parts along with other
tasks. Technicians will aid the engineer in the making process of the robot.
● Operators - will be working in shifts to have someone operate and oversee the robot 24
hours a day. Operators will ensure that nothing goes wrong or break down.
● Sales Engineer - needs to study and know the the product as they will sell it to potential
customers.
● Robotics Account Manager - will be in charge to connect with and make sales to
customers within the robotics industry.

Inventory

The Gijutski Robot is a product that cannot be availed by simple citizens. It is quite expensive
since the materials used in making the product is also costly. Hence, the Baggia Technology
Company usually produces a limited number of units in order to avoid surplus of stocks. Usually,
the company manufactures once there is an order made. The average number that it produces
is 10 units monthly or 120 units annually. Furthermore, the inventory turnover of the product is
high. The inventory turnover is used to measure the number of times the product is sold
annually. Based on the computation, the turnover is 50 times which means that the company
sells a product 50 times a year.

In making a single unit, it usually consumes 2-3 days from the initiation and completion of a
product process. Since machines are involved during the process, the lead time is fast. In
addition, when we talk about the seasonal fluctuations in demand, there is no certain season
where the demand of Gijutski Robot increases or decreases. For the past years, the demand
every month is constant.

Suppliers

The Baggia Technology Company will have the following suppliers:

Major Suppliers
● Park Empire Business - supplier of the equipment in factory
● Le Soleil Logistic Incorporation - supplier of materials
● TechMine Company Incorporation - machine suppliers

Back-up Suppliers
● Frontier Development Company- materials supplier
● Dacon Corporation - machine supplier
 Section 5
FINANCIAL MANAGEMENT

Sales Forecast

Quarterly Period Year

1 2 3 4 1 2 3

Cost Totals and Statistics

Beginning ₱50,000 ₱80,000 ₱100,000 ₱120,000 ₱1,200,0 ₱4,500,0 ₱2,000,0

Inventory 00 00 00

Ending Inventory 0 ₱50,000 ₱80,000 ₱100,000 ₱1,000,0 ₱1200,00 ₱1,800,0

00 0 00

Less: ₱700,00 ₱700,000 ₱700,000 ₱700,000 ₱700,000 ₱700,000 ₱700,000

Purchase Cost 0

Weighted ₱700,00 ₱700,000 ₱700,000 ₱700,000 ₱730,000 ₱730,000 ₱730,000

Average Unit 0
Cost

Total Purchase ₱7,050,0 ₱7,030,0 ₱7,020,00 ₱7,020,00 ₱84,200, ₱87,300, ₱85,200,

Cost 00 00 0 0 000 000 000

Sales and Gross Margin Forecast

Less: 7,000,00 ₱7,000,0 ₱7,000,00 ₱7,000,00 ₱28,000, ₱28,000, ₱28,000,

Cost of Goods 0 00 0 0 000 000 000
Sold

Other valuable ₱50,000 ₱50,000 ₱50,000 ₱50,000 ₱200,000 ₱200,000 ₱200,000

Cost

Total Cost of ₱7,000,0 ₱7,000,0 ₱7,000,00 ₱7,000,00 ₱7,000,0 ₱7,000,0 ₱7,000,0

Sales 00 00 0 0 00 00 00

Gross Sales 91% 91% 91% 91% 67% 67% 67%

Margin

Inventory Forecast

Beginning Units 10 10 10 10 120 120 120

on Hand
Plus: Units 10 10 10 10 120 120 120
Produced

Less: Units Sold 110 110 110 110110 120 120 120

Ending Units on 0 0 0 00 0 0 0
Hand

Our sales forecast helps us predict achievable sales revenue. It also guides us in efficiently
allocating resources as well as plan for future company growth. Based on our sales forecast,
our short term and long term performance is estimated to continually grow quarterly/annually.
This allows us to expand our horizons as a company and invest in future projects.

Cash-Flow Statement

Cash Flow from Operations

Cash receipts from customers ₱450,755

Cash paid for inventory ₱20,000

Cash paid for wages ₱305,800

Net Cash Flow from Operations ₱124,955

Cash Flow from Investing

Cash receipts from sales of property and ₱200,000

equipment

Cash paid from purchasing equipment ₱250,000

Net Cash Flow from Investing ₱50,000

Cash Flow from Financing

Cash for loan repayment ₱10,000,000

Net Cash Flow for Financing ₱10,000,000

The cash-flow statement shows us that our firm can quickly purchase or sell an asset without
causing a drastic change in the asset’s price. It also showcased the ability of our corporation to
meet its long-term fixed expenses and to accomplish long-term expansion and growth.
 Income Statement

Quarter Year

Revenue

Net Sales ₱11,250,000 ₱45,000,000

Gross Income ₱23,500,000 ₱96,000,000

Others ₱2,512.5 ₱10,050

Expenses

Cost of Sales ₱11,780 ₱11,765,005

Selling ₱650,000 ₱3,000,000

General Expenses ₱2,030,000 ₱8,120,000

Net Profits

Gross Profit ₱393,750 ₱1,575,000

Operating Profit ₱60,750 ₱243,000

Pretax Profit ₱1,618,725 ₱6,474,900

After Tax Profit ₱2,221,875 ₱8,887,500

The income statement shows us how the revenues are transformed into net income. This will
show us if the company is experiencing a profit or a loss. Based on our income statement, we
predict that our company will profit from the Gijutski robot product.