UNIVERSITY OF CEBU LAPU-LAPU & MANDAUE

A.C. CORTES AVE. LOOC, MANDAUE CITY

IN PARTIAL OF FULLFILLMENT OF THE REQUIREMENTS

IN

ENTREPRENEURSHIP

BUSINESS PLAN

OF

POTATO CHIPS BY IN-N-OUT ENTERPRISE

SUBMITTED BY:

ASUNCION, ZYLDRJONE CABATINGAN, DENVER

BATICURA, JHIRALD CANDIDO, HANZ THEODRE
BORDAJE, JOHN CEDRIC COYOCA, GRACE ANA
BRIGOLI, FLOYD JHONDREL

SUBMITTED TO:
MR. MICHAELANGELO A. LIMPANGOG
 ACKNOWLEGEMENT

The company would like to thank our adviser in Entrepreneurship,

Mr. Michaelangelo Limpangog for helping our group prepare the

groundwork for the plan. Many thanks to our groupmates Floyd, Cedric,

and Grace for creating and testing the In-n-Out Chips before it is chosen

as the group’s product. Much appreciated to our group member, Grace

for spurring the group into action, doing the best it can.

LOGO
 INTRODUCTION

Potatoes are the third most important food crop after rice and

wheat. They’re rich in Vitamin C, potatoes were a life- saving food source

in early times because the vitamin C on it prevents scurvy (vitamin C

deficiency).Another nutrient in potatoes is potassium, an electrolyte

which aids in the workings of our heart, muscles, and nervous system.

With this, In-n-out potato chips enterprise innovated a unique version of

potato with savory and tasty sauce, indeed a true crunchy deliciousness

in every bit.

The potato chips are very common, you can see them in different

stores or malls. But this product put a twist, in the potato chips, the

company got their Inspiration from Nacho fries. Where they filled their

potato chips with homemade sauce that is perfect for the students. With

the side dish of the product which is cabbage, the product looks more

healthier. Moreover, because of the good qualities found in our product,

we believe that selling will gain us a good profit.

DESCRIPTION OF THE BUSINESS

The Business produces and sells In-N-Out potato chips, a delicious,

healthy, and affordable alternative to other competing products offered

in the market. It is a snack and deep-fried. Our snack enhances a unique

style and a savory sauce with the side dish of a cabbage. While, the sauce

is made of mayonnaise, ketchup, and cooked ground pork.

Interestingly, the product is not just a chips; every element that

comes with the potato chips is made special. The sauce of the potato chips

was made sweet and meaty to enrich it with more flavor and balance out

the taste of the chips. Potato chips will be great satisfaction for people

who loves meaty foods or maybe even get people to be engaged and

interested in sweet and healthy foods

LOCATION OF THE BUSINESS

The location of the business will be at M & R Arcade, Jayme

St. found at Barangay Paknaan, Mandaue City, Cebu. It is near

Julie’s Bakeshop, beside Paknaan National High School. The

location has good valuation and is favorable to the students and

people in the local area. It is also a 2.6km distance from the

business to University Of Cebu Lapu Lapu Mandaue.

FUNDING REQUIREMENTS

The business will require funds to purchase ingredients,

equipment, and supply to begin operations. Funds for the administrative

and legal aspects of the business will also be needed for the enterprise to

function smoothly.

Table 1.1 Raw Materials

Potatoes ₱ 6000.00

Mayonnaise ₱ 9240.00

Banana Ketchup ₱ 4320.00

Ground Pork ₱ 1442.00

Pepper ₱ 321.00

Onions ₱ 1200.00

Cooking Oil ₱ 6555.00

Cabbage ₱ 650.00

LPG ₱ 950.00

Packaging ₱ 1200.00

Total Cost: ₱31,878

 Table 1.2 Equipment and Supplies Quantity

Cost of Equipment and Supplies Quantity

Equipment and Supply Quantity Cost in (₱)

Commercial Deep 1 pc. ₱ 18,000

Fryer

Isopropyl Alcohol (1 1 (Per Month) ₱ 700

Gallon)

Hairnet 16 pcs. ₱ 480

Aprons 10 pcs. ₱ 300

Gas Stove 1 pc. ₱ 1,200

Non-Stick Frying Pan 2 pcs. ₱ 1,500

Alcohol Dispenser 3 pcs. ₱ 200

Kitchen Utensils 2 sets ₱ 600

Beverage Refrigerator 1 unit ₱ 18,000

Refrigerator 1 unit ₱ 14,000

Water Dispenser 1 unit ₱ 5,600

Chairs and Tables Set 3 sets ₱ 24,900

for 2 Persons
Chairs and Tables Set 2 sets ₱ 24,200

for 4 Persons

Wall Fans 5 pcs. ₱ 9,400

Trash Bins 3 pcs. ₱ 2,025

Basic Calculator 1 pc. ₱ 250

Storage Bins 2 pcs. ₱ 1,000

Wooden Chopping 1 pc. ₱ 600

Board

Knife 2 pcs. ₱ 1,000

Containers 1 Set ₱ 500

Fire Extinguisher (5 2 pcs. ₱ 1,600

lbs.)

Receipt Paper 20 booklets (20 pcs. ₱ 400

Per booklet)/ Per

Month

CCTV Camera and 1 pc. ₱ 2,000

Memory Cards

Cash Box 1 pc. ₱ 1,300

Air Conditioning Unit 1 unit ₱ 13,000

TOTAL COST: ₱142,755.00

 Table 1.3 Utilities

Estimated Costs of Utilities (Per Month)

Utility Cost (In ₱)

Electricity ₱8,000

Water ₱600

Total Cost: ₱8,600

Table 1.4 General and Administrative Expenses

Costs of Administrative Expenses (Per Month)

Administrative Expenses Cost (In ₱)

Executive Wages and Benefits ₱36,000

SSS Employer’s Contribution ₱15,802.87

PhilHealth Employer’s ₱7,485.57

Contribution

Rent ₱10,000

Office Supplies Stipend ₱600

Acquiring and Renewal of Permits ₱4,000

Business Tax Budget ₱10,000/year

 Total Cost: ₱83,888.44

Table 1.6 Employee Salary and Allowances

Cost of Employee Salary and Allowances (Per Month)

Salary and Allowances Cost (In ₱)

Employee Salary ₱131,246

Laundry Allowance ₱1,500

Meal Allowance ₱5,760

Transportation Allowance ₱4,320

Total Cost: ₱142,826

Table 1.5 Total Funding Requirements

Total Funding Requirements for the Operation of the Business

Enterprise

Funding Requirements Cost (In ₱)

Ingredients Costs and Quantity ₱31,878

Equipment and Supplies Quantity ₱142,755

Utility ₱8,600
 General and Administrative ₱83,888.44

Expenses

Employee Salary and Allowances ₱142,826

Total Cost: ₱409,947.44

The funding requirements are approximately Php 409,947.44. The

said cost is most likely the amount you need to buy all the ingredients and

equipment to make your product. Most of the ingredients and materials

are purchased from well-known market to be much affordable and

convenient. The table shown above are the materials that are needed in

making our product. This business is funded through the capital infusion

of the enterprise’s partners into the business through a partnership

agreement. Through the partnership agreement signed by the

enterprise’s partners, a total of ₱450,000 will be infused into the

enterprise as seed capital for the enterprise as it begins to produce and

sell the products offered.

 EXECUTIVE SUMMARY

VISION

Letting people around the country enjoy life through the taste of In-n-Out

Potato Chips.

MISSION

To provide high quality, tasty, and affordable food to people to make their

days better and brighter.

GOALS

• To gain nationwide name recognition in the next decade or so.

• To establish a foothold in Metro Cebu and slowly expand in the

neighboring provinces by the end of the business’ 1st decade.

• To maintain the original taste and price by all means possible.

OBJECTIVES

• To establish a foothold in the vicinity of the Tri Cities of Mandaue,

LapuLapu and Cebu City in the following two to three years.

• To ensure that the business remains profitable without the affordability

of the product being sacrificed.

BUSINESS MODEL
BUSINESS AND PRODUCT POSITION

The business is located in M & R Arcade, St Jayme, found at

Barangay Paknaan, Mandaue City, Cebu. This area has 2 schools namely;

Paknaan Elementary School and Paknaan National High School. This place

is favorable for sales since it centers 2 schools and safe socializing spot to

students on break. Moreover, this product is a unique type of snack but

with the innovative, modernized take. The company's marketing and

advertising campaigns always true to the brand's identity.

With this figure our market business hopes to enter the market

between Paknaan Elementary school and Paknaan National High school,

where we will provide high-quality food at a meagre price that will appeal

to everyone's taste. Our competitive edge is that we're able to offer a

significantly higher quality, better-tasting product at a lower cost. This

portrays the image that it's not going to be a burden for consumers

because the product's level of quality seems to be high as well as

appropriate for the price. It is not going to be an issue because quality

speaks much louder than money, and the product they are going to taste

is new to the market, implying a greater effect on the minds of our

consumers. Furthermore, our business generates revenue through the

sale of its products and provides its services to the students and
bystanders who make up its defined target market. Our market's

population would be approximately 16,000 people. Our company is

planning to handle 60% of the market sometime in the next few decades.

WEALTH AND IMPROVEMENT APPROACHES

The company will be preparing different strategies that can make

our business trend and known to the market. And also improve our

financial status, because this can be a great key to upgrade once social

status. Our business wants to contribute in the market as health

orienteer, because our goal is to provide a healthy snack that will have a

great impact to the students. Our business gives us benefits, by gaining a

great title in improving everyones lifestyle.

PARTIES SUPPORTING THE BUSINESS

Without the support of these parties our business would not be

made possible. Listed in the following are the different parties supporting

our business.
• Consumers:

Based on our market segmentation, we have chosen the whole

Paknaan, Mandaue and the students of Paknaan Elementary and High

School, because we have observed that there are a lot of students and

people in the area every day since our location is at Paknaan Mandaue

City, and it is more dominant compared to other segments.

• Suppliers: (The following suppliers are all located in Cebu City)

a. Cignal TV Warehouse (Vegetable Supplier)

b. Akai Foods, Inc. (Vegetable Supplier)

c. Helen & Kelly Meat Dealer (Ground Pork Supplier)

d. Jaime Guiling Meat Store (Ground Pork Supplier)

e. Metro Gaisano (Black Pepper Supplier)

• Employees:

Production Worker- responsible for the production of goods.

Cook- responsible for maintaining the good quality and crispiness of the

chips.

Cashier- tasked to process the cash and responsible of the income.

General Manager- serves as the top executive for the unit and is

responsible for the strategies, structures, and the financial outcomes.

•Creditors (optional):

In case of emergency like the capital is not enough to pay all the

other expenses, the company will borrow a P120,000.00 in the CIMB Bank

Personal Loan with an interest rate of 1.12% to 1.95%.

 ENVIRONMENTAL ANALYSIS

Trend in the Industry

Individuals nowadays tend to experiment, be courageous, and be

imaginative when it comes to creating new food. Trying out different

meals from various civilizations may inspire you to create new foods. We

consequently created "In-N-out potato chips," a special kind of snack with

a little twist as a result of adding a component that some people adore.

Each slice offers the ideal balance of crispiness, sweetness, and spice.

Every mouthful tempts one to want more and experience joy. This kind of

potato chips is novel in the eyes and ears of the consumer and will

certainly catch on once it is introduced. Also, we chose to make it

uncommon for a novel and distinctive strategy.

CONSUMER ANALYSIS

This business will be placed in Barangay Paknaan, Mandaue City,

Cebu, at M & R Arcade, Jayme St. between Paknaan National High school

and Paknaan Elementary school, it is near to Julie's Bakeshop. Therefore,

it will be predicted that students from the above-mentioned institutions

will be make up the majority of the client base. Yet, the company will not

only provide its services to students but also to anyone eager to purchase

the goods we will be making.

COMPETITOR ANALYSIS

Julie's Bakeshop, the closest bakery, is only 10 meters away from our stall,

right next to it. Products from Julie's Bakeshop are priced from 5 to 25

pesos. Another is the Cheryl's Silogan, which is another option that is

situated about 25 meters in front of Julie's Bakeshop. The cost is between

70 and 130 pesos. Also, the price of our goods is 25, which is comparable

to Julie's Bakeshop and far less expensive than Cheryl's Silogan pricing.

MARKET FORECAST

As part of the company's environmental analysis, it is anticipated

that the focus on sustainability will continue to become increasingly

important in the market. Consumers are becoming more aware of the

environmental impact of their purchases, and governments are creating

more stringent regulations related to environmental protection.

Over the next few years, the company should expect to see an

increase in demand for eco-friendly products, including those that reduce

waste, carbon emissions, and other environmental impacts. The company

can capitalize on this trend by continuing to develop and market

environmentally sustainable products.

 By 2024, the company may consider expanding its operations to

include recycled materials in the production process or investing in

renewable energy sources to further reduce its environmental impact. As

the market moves towards sustainability and eco-friendliness, the

company can seize an opportunity to position itself as a leader in

environmental protection, attracting a growing base of consumers who

prioritize the environment in their purchasing decisions.

By 2025, the company can expect to see continued growth in

market
MARKET SHARE

According to a survey we did, 70% of the market was occupied by

In-N-Out Potato Chips. It is as a result of buyers' curiosity in the product's

excellent quality, distinctive concept, and general curiosities. And some

claimed they preferred In-N-Out potato chips because they were

interested in potatoes. Yet, Chelsey's Silogan received 25% of the market.

Last but not least, Julie's Bakeshop obtained 5% of the market.

MARKET POSITION

Our company occupies a high-quality, midrange market position.

One of our tangential rivals is Julie's Bakeshop. It holds a position with low

quality but average pricing. The last indirect rival we have is Chelsey's

Silogan. Both the price and the quality of their positions are very high.
Marketing Strategy

In-N-Out Potato Chips are a novel and innovative snack with a twist.

Because of the components we mixed with the chips, it says with a twist.

The fresh flavor of the ground pork combined with the crunchy and savory

features of the potatoes. On the current market, this product will stand

out for its unique characteristics in taste and appearance. The primary

goal of In-N-Out Potato Chip is to provide high quality ingredients, meals,

and services to meet the needs of customers. Although the combination

of potatoes and ground pork may appear strange, the finished dish is

designed to appeal to all palates. Business production procedures will be

meticulously followed, adhering to well-organized work schedules. The

retail space will be furnished with the appropriate technology and

aesthetics to attract and impress customers. Also, the organization will

hire service personnel. hired people with prior schooling who were

proficient in cooking and serving. The product pricing will also be

determined on costs. In order to avoid issues with sales and profit,

different company production expenses are factored. The primary

packaging for this product will be found beside the In-N-Out potato chips.

The business plan adopted will be based on excellent in-store, quality

services, and product condition, putting a special emphasis on the

requirements and satisfaction of the client. Consumer data will be used

as a foundation for company and product improvement in marketing.

Customers' feedback and insights are crucial in identifying the demands

and preferences of the market for ongoing business quality development.

Last but not least, In-N-Out potato chips will engage in direct selling and

have the chance to interact with customers to suit the demands of all local

customers.
 BUSINESS DESCRIPTION

PRODUCT DESCRIPTION

Product Description The company offers IN-N-Out potato chips,

chips with a unique sauce. The chips are made of potato which makes it

healthier. Also the chips sauce is made of mayonnaise, ketchup, and

ground pork with the side dish of cabbage which makes the sauce sound

unique and tasty. The potato chips developed by the company have a

pleasing appearance and it is a good snack for most people in school and

on the streets. This will satisfy the customers hunger and is something

new to them that would make them buy and have a taste of the chips.
EQUIPMENT/MATERIAL NEEDED

In order to produce the product. The following materials and

equipment are needed in the production process:

 Frying pans  Plastic Gloves

 Cooking oil  Apron and Hairnet

 Tongs  Table and Chairs

 Strainer  Deep Fryer

 Butane Stove and Gas  Chopping Board

 Knife  Serving Tray

SIZE OF THE BUSINESS

We will only launch a modest firm because we are still determining

whether our product will be well-liked in the target market and seeking

user insight and feedback. To accommodate three tables and three to four

seats per table, we will require an area measuring 25 square meters.

Between Julie's Bakeshop and Chekyl's Silogan, our company will operate.

Also, it's because we currently only have a small staff. On the other hand,
in the long run, we anticipate that the company will hire additional staff

in order to meet customer demand.

Personnel Requirement
One of the most critical elements in the operation of a business. It

is advisable to demonstrate skills like adaptability, Integrity,

consideration, dependability, and support staff to provide extremely

excellent service quality. Our first team members will be a manager,

during operating hours, there are 2 cashiers, 2 cooks, 3 servers, and 1

delivery person. We are looking for a manager with good leadership skills.

Who is capable of managing employees in the service industry and who

can at least two years of managerial experience, the clients feel welcomed

and at ease having knowledge and having completed a manager-related

course in commerce? The same is true for the cashiers and cooks who

have experience and have completed the required courses. For serving

the customers at a single store, this is the best staffing level. In order to

ensure that we can give our customers greater service in the future as our

store and merchandise expand, we will hire more workers.

 ORGANIZATIONAL PLAN

FORM OF BUSINESS ORGANIZATION

The enterprise is a partnership, a legal association of two or more

persons as co-owners of an unincorporated business.

LIABILITY OF THE OWNER

The enterprise is a general partnership, with the business partners

sharing unlimited liability for the debts and obligations of the business

enterprise. It means that each owner of a business can be held

personally liable for the debts of the organization.

ORGANIZATIONAL STRUCTURE
ROLE OF THE OWNER

Currently, the partners of the business also serve as employees of

the business. Consequently, all positions in the enterprise are currently

being held by the co-owners of the business enterprise until the

enterprise grows to an extent that it can hire additional workforce to fill

up the positions where the co-owners are not suitable for.

Manager- They are accountable for ensuring that the day-to-day

operation of the business runs smoothly. They lead the employees and

set performance indicators and goals to grow the business enterprise.

Qualifications:

 SHS graduate, preferably if a graduate from ABM strand

 Has three years of experience in the field

 Has leadership abilities and is inclusive to others

Quality Control Officer- They are responsible for monitoring the quality

of incoming and outgoing products to ensure that they are free of

defects and produced according to internal specifications and external

guidelines.
Qualifications:

 SHS graduate, preferably if a graduate from TVL- Home Economics

Strand

 Familiarity with the process so they can contribute to error

reduction and process enhancements

 Has a significant attention to detail

Cook- They prepare meals and food items according to recipes created

by the business. They must ensure that the food is served on time and of

high quality. They are also responsible for safely storing ingredients to

prevent spoilage. They must ensure that their workplace and equipment

used is clean and sanitized.

Qualifications:

 HS graduate

 Willing to learn, hardworking

 Has effective communication skills and ability to work in a team

Ethics Officer- They serve as the organization's internal control point for

ethics and improprieties, allegations, complaints, and conflicts of

interest and provide advice on issues regarding the governance of the

business enterprise.
Qualifications:

 SHS graduate, bachelor’s degree in related courses preferred

 Excellent verbal and written communication skills.

 Strong analytical and critical thinking skills.

 Ability to comprehend, interpret, and apply the appropriate

sections of applicable laws, guidelines, regulations, ordinances, and

policies.

Safety Officer- Their task is to conduct inspections to ensure equipment

and site safety. They also check if safety measures are compliant with

the government’s Occupational and Health Safety guidelines

Qualifications:

 SHS graduate, college graduate is preferred

 Has completed the Basic Occupational Safety and Health (BOSH)

training and is a certified Safety Officer 1

 Has good communication and analytical skills

Cashier- Their task is to check prices and quantities for accuracy, collect

and process payments, and scan items for purchase.

Qualifications:

 HS graduate
  Willing to learn

 Has pleasing and charming personality

Inventory Clerk- They manage the supplies and products coming in and

out of the business and keep accurate counts of stored items Their

responsibilities would include maintaining inventory records, training

less experienced clerks, and preparing balance and shortages reports.

Qualifications:

 HS graduate

 Possesses excellent math and communication skills

 Ability to work for long hours

Customer Service Representative- They help customers with complaints

and questions, give customers information about products and services,

take orders, and process returns. By helping customers understand the

product and answering questions about their reservations, they are

sometimes seen as having a role in sales.

Qualifications:

 HS graduate

 Has pleasing and charming personality

 Ability to stay calm when customers are upset

  Experience in customer support or related fields is preferred

Records Clerk- They performs clerical duties such as organizing files and

retrieving an entity’s paperwork, both physically and electronically. They

are responsible for maintaining their records in a complete and orderly

manner, according to the organization’s filing systems.

Qualifications:

 SHS graduate

 Has ability to work under pressure

 Has attention to detail

 Proficient in Microsoft Word and Excel

Doorman- They provide courtesy services such as opening and closing

doors, screening visitors, and accepting packages.

Qualifications:

 HS graduate

 Has good communication skills

 Is physically fit and strong

Cleaner- They are responsible for all basic that entail dusting, mopping,

sweeping, vacuuming, and cleaning smudges off windows and doors.

Ensuring restrooms are cleaned, sanitized, and restocked is another

important responsibility of a cleaner.

Qualifications:

 HS graduate

 Is physically fit and strong

 Has an industrious and hardworking character

Accountant- They prepare financial reports to track the organization’s

assets, liabilities, profit and loss, tax liabilities, and other related financial

activities.

Qualifications:

 SHS graduate in ABM strand, preferable if a Certified Public

Accountant (CPA)

 Extensive knowledge of general financial accounting and cost

accounting.

 Understanding of and ability to adhere to generally accepted

accounting principles.

 Excellent organizational skills and attention to detail.

 Excellent written and verbal communication skills.

 Proficient in Microsoft Office Suite or similar software.

Marketing Manager- They develop marketing policies, programs, and

campaigns. These include identifying new markets and customers and

demand for products; conduct market research, sales forecasting, and

strategic planning to assess and ensure the sale and profitability of

products; conducts pricing research and analysis to ensure competitive

product and service pricing; maintain knowledge of trends and

developments in the market.

Qualifications:

 SHS graduate in ABM strand, preferable if college graduate with

bachelor’s degree in business, marketing, or related field.

 Has thorough understanding of principles and methods used to

promote, display, and sell products and services.

 Proficient with Microsoft Office Suite or related software.

Procurement Officer- They oversee purchasing activities and ensure that

purchased items are both cost-efficient and of high quality. Their

responsibilities include supervising staff, maintaining positive supplier

relations, evaluating supply options, approving purchases, and

maintaining accurate records.

Qualifications:

 SHS graduate in ABM strand, preferable if college graduate with

bachelor’s degree in accounting, business management, or related

field.

 Proficiency in Microsoft Office and purchasing software.

 Strong communication and negotiation skills.

 Has attention to detail

Human Resources Manager- They lead and direct the routine functions

of the Human Resources (HR) department including hiring and

interviewing staff, administering pay, benefits, and leave, and enforcing

company policies and practices. They also maintain compliance with local

and national employment laws and regulations, and recommended best

practices; reviews policies and practices to maintain compliance. They

also handle discipline and termination of employees in accordance with

company policy.

Qualifications:

 SHS graduate, preferably if a college graduate with a bachelor’s

degree in business administration or related courses

  Strong supervisory and leadership skills.

 Ability to adapt to the needs of the organization and employees.

 Ability to prioritize tasks and to delegate them when appropriate.

 Thorough knowledge of employment-related laws and

regulations.

 Proficient with Microsoft Office Suite or related software.

PROPOSED SALARY

The salary of the employees is based on the government salary grades.

The proposed salary and mandatory benefits of the enterprise’s

employees are as follows:

Employee Salary Annual Mandatory Total per

Name (In ₱) Salary Benefits (In Year
(In ₱) ₱) (In ₱)
Baticura, 17,057 204,684 28,655.76 233,339.76
Jhirald
Bordaje, 19,198 230,376 29,565.64 259,939.64
John Cedric
Asuncion, 17,057 204,684 28,655.76 233,339.76
Zyldrjone
Candido, 17,057 204,684 28,655.76 233,339.76
Hanz
Theodore
Cuyoca, 20,468 245,516 34,372.24 279,888.24
Grace Ana
Brigoli, Floyd 18,100 217,200 27,874 245,074
Jhondrel
Cabatingan, 18,100 217,200 27,874 245,074
Denver
Total: 1,729,995.16