A BUSINESS PLAN PROPOSAL ON MEME’S LECHON MANOK

IN MUNICIPALITY OF KAPALONG
DAVAO DEL NORTE

A Bachelor’s Business Plan Proposal Presented to the

Faculty of the Undergraduate School
CARD-MRI Development Institute (CMDI), Inc.
Tagum Campus

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Entrepreneurship
With Specialization in Microfinance

JEANE ROSE E. AMAMIO

GELENE L. GODMALIN
PRENCHES SUHARA A. JUMAT
LEAH G. TONLAY

June 2023
 II

EXECUTIVE SUMMARY

The Meme’s Lechon Manok is not the only one business in the area that

serves lechon manok, but they are the only one who serve and sell delicious,

tasty and juicy lechon manok. The Business was run and owned by a sole

proprietorship. Then, the business will be located at Purok 10B Maniki,

Kapalong, Davao del Norte. The inhabitants of Kapalong and the surrounding

municipalities, as well as passers-by and travelers, will be the target market for

the business.

Further, The Meme’s Lechon Manok aspires to be one of the top lechon

manok stall in Davao del Norte, serving healthy and delectable lechon manok

at a fair price. Apart from that, one of the company’s goals and objective is to

create an environment in which both customers and employees can adapt and

feel at ease.

One of its core values is to ensure that clients are satisfied without

jeopardizing their health. As a result, the company caters online orders and

provides phone numbers, social media account, and platforms so that clients

may simply contact them digitally at their leisure.

Also, the owners consider the health of their possible customers that

they used eco-friendly as long as their packaging of the product lechon manok.

Different techniques will be used to compete in the market, such as offering

special holiday promotions and having a cheap pricing is one of the business

benefits.
 III

Furthermore, the company evaluates the company’s strength,

weakness, opportunities, and threats as well as the internal and external

problems that proponents attempted to uncover and solve.

The Meme’s lechon manok are legally licensed business. Before they

began their activity, they followed all the procedures of obtaining legal

documents. It describes the entire process from the time raw materials are

obtained to the time clients may enjoy their lechon manok. As a results, safety

practices mere found to follow the Inter-Agency Task Force (IATF) health

protocols.

The Meme’s Lechon Manok serves a product that is based on their

customers preferred through survey interview. The proponents has different

marketing strategies that will focus on building a customers based on providing

good lechon manok to different segmented groups.

 IV

APPROVAL SHEET

This bachelor’s study in titled: A BUSINESS PLAN PROPOSAL ON

MEME’S LECHON MANOK IN THE MUNICIPALITY OF KAPALONG DAVAO
DEL NORTE. Prepared and submitted by PRENCHES SUHARA A. JUMAT,
JEANE ROSE E. AMAMIO, GELENE L. GODMALIN, LEAH G. TONLAY. In
partial fulfillment of the requirements for the degree of Bachelor of Science in
Entrepreneurship with Specialization in Microfinance, has been examined and
is recommended for acceptance and approval for oral defense.

MICHEAL N. COSE MBA.

Adviser

______________________________________________________________

REVIEW PANEL

Approved by the Committee on Oral Examination with a grade of .

MARIA VILMA J. MANULAT. DM

Chairwoman

RICARDO B. ONGOB JR. MBA MAY ANN F. LOPEZ

Member Member

______________________________________________________________

Accepted and approved in partial fulfillment of the requirements for the

degree of Bachelor of Science in Entrepreneurship with Specialization in
Microfinance.

MARIA VILMA J. MANULAT. DM

Dean

Date of final defense: April 20, 2022

 V

ACKNOWLEDGEMENT

Making a business plan is a difficult task that takes a significant amount

of time, effort, and experience. As a result, the proponents wanted to express

their heartfelt gratitude to the following individuals who have made significant

contributions to the project success. To their adviser, Michael N. Cose, MBA,

for his invaluable thoughts, suggestions, and encouragements that encouraged

the proponents to persevere in the face of adversity.

Herrick O. Augustin, MBA, LPT, CHRA, their course instructor, who h as

been quite helpful in completing their business plan. Additionally, they

appreciate his patience and understanding as well as his unfailing support. The

proponents would also like to express their gratitude to their panel members

and chairwoman, Ricardo R. Ongob Jr. MBA, May Ann F. Lopez, and Maria

Vilma J. Manulat. DM, for their time and work in reviewing this manuscript, as

well as their constructive remarks which were extremely helpful in ensuring the

success of this academic endeavor.

To their families and relatives who have supported them emotionally and

financially, as well as their neighbors and friends, who have never failed to

stimulate and inspire them throughout their lines, particularly through moments

of doubt and breakdown. Likewise, the proponents owe a debt of gratitude to

their classmates and co-students for their inspiration, which spurred their drive

to finish the race. Above all, to the Lord Almighty God, who has blessed them

with his wisdom, guidance, and protection in order to make this possible.

The Proponents
 VI

DEDICATION

This humble work

Is ardently dedicated to the

Lord, our God.

Who is the source of everything.

To our parents and relatives, classmates and friends who gave us

the strength,

the inspiration,

and the courage

We need in this endeavor.

This book is for all of you.

 VII

TABLE OF CONTENTS

Page

List of Figures X

List of Tables XI

List of Appendices XII

CHAPTERS

I. INTRODUCTION 1

II. PRODUCT OR SERVICE DESCRIPTION 4

Competitive Advantage 6

Pricing Structure 7

III. MARKET STUDY 8

Target Market 8

Demographic Segmentation 10

Psychographic Segmentation 11

Geographic Segmentation 11

Behavioural Segmentation 11

Pricing Structure of Competitors 14

IV. OPERATIONAL AND TECHNICAL CHARACTERISTICS 15

Business model 15

Marketing and Sales Strategy 15

Distribution Channel 16

Production | Operating Requirements 17

Production Process 17

Location 18
 VIII

Suppliers 18

List of Suppliers 18

Management and Personnel Requirements 19

Personnel 19

Job Description and Qualification 19

Regulations / Environment Issues 20

Critical Risk Factors 20

SWOT Analysis 20

V. FINANCIAL PROJECTIONS 22

Financial Plan 22

Start-up Cost and capitalization 22

Sales Forecast 23

Projected Three-Years Income Statement 24

Projected Three-Years Cash Flow 25

Projected Three-Years Balance Sheet 26

Return on Investment 27

Financial Ratios and Analysis 28

Current Ratio 28

Net Profit Ratio 28

Return of Equity 28

VI. SUMMARY AND RECOMENDATION 30

VII. LIST OF APPENDICES 32

Appendix 1 (Business Logo) 32

Appendix 2 (Projected Operating Expense) 33

Appendix 3 (Sales Forecast) 37

 IX

Appendix 4 (Cost of Goods Sold) 38

Appendix 5 (Survey Questioner) 39

 X

LIST OF FIGURES

FIGURE PAGE

Figure 1 Target Market

Figure 2 Business Model

Figure 3 Distribution Channel

Figure 4 Production Process

Figure 5 Organizational Structure

 XI

LIST OF TABLES

TABLE PAGE

Table 1 Product Matrix

Table 2 Pricing Structure Page 7

Table 3 Pricing Structure of Competitors Page 14

Table 4 List of Suppliers Page 18

Table 5 Job Description and Qualification Page 19

Table 6 SWOT Analysis Page 21

Table 7 Start-up Cost and Capitalization Page 22

Table 8 Sales Forecast Page 23

Table 9 Return on Investment Page 27

Table 10 Current Ratio Page 28

Table 11 Net Profit Ratio Page 28

Table 12 Return of Equity Page 29

Table 13 Projected Operating Expenses Page 30

Table 13.A Schedule of Deprecation Page 30

Table 13.B Rent Expenses Page 30

Table 13.C Utilities Expenses Page 30

Table 13.D Repair & Maintenance Page 31

Table 13.E Salaries & Wages Page 31

Table 13.F Transportation Expenses Page 31

Table 13.G Permits & Licenses Page 31

Table 13.H Supplies Expenses Page 32

 XII

LIST OF APPENDICES

APPENDIX PAGE

Appendix A Letter of Intentions Page 32

Appendix B Survey Questioner Page 33

Appendix C Financial Analyst Page 37

Appendix D Grammarian Page 38

Appendix E Business Logo

Appendix F Location Map Page 39

 XIII
1

CHAPTER I

INTRODUCTION

This COVID19 pandemic led to a great number of changes in the society.

The changes which affects all of us especially for those who owned a business.

However, despite of this pandemic situation they can still manage in finding

ways to survive and continue their lives.

Food is one of the basic needs of everyone, that is why most of the food

businesses work hard to meet the needs of every people. Thus, Filipino people

known for not only has a passion on cooking but also for creating and innovating

a wonderful business enterprise like lechon manok.

Lechon manok is the business that is sprouting in every corner of the

municipalities and cities around in the Philippines. The word lechon was

originated from Spanish term “Lechona” that refers to suckling pig, that is

roasted. This is one among Spanish cuisine that we derived from them. A

favorite recipe of Filipinos that gives value added cost to the dressed chicken

we normally buy from the supermarket. Lechon manok business offers a new

entrant. It is free to choose this market and is not difficult to find good location

for a stall. Since grilled chicken products are considered as daily consumable,

any populated area is a good place. In addition, this business can easily be

replicated so management skills are very important when running lechon

manok business.

The business envisions to be one of the finest lechon Manok stall that

will serve a good quality of food and a good quality of services which will suffice

the satisfaction of every customer. Lechon manok business provides

 XIV
2

fresh, healthy, nutritious and great tasting lechon manok at a very

reasonable price in a clean, friendly and convenient environment.

Consequently, the business aim to provide the best consumer experience in

the industry, respect its employees and community. Lastly, this business also

foresees to create a positive and caring atmosphere for all individuals who will

eat, work and serve in lechon manok stall.

Nowadays lechon manok or roasted chicken can be seen almost

everywhere and an ideal business that only requires a minimum investment and

universally accepted dish that is enjoyable by all culture. lechon manok is

tasteful delicacies that many people cannot resist the temptation of buying it.

Lechon manok is a true pinoy leading dish that is perfect for both everyday

lunch, could be used for pasalubong and an easy choice for last-minute dinners

especially when you’re on a tight budget.

Why we like lechon manok? The reason why we really love lechon

manok is because it is fast, easy an d cheap food item to bring home after a

long day at work for every family. Memes lechon manok serve a delicious and

nutritious lechon that gives a high quality and good satisfaction of the

customers.

The purpose and goals of this study is to give readers an idea in putting up their

own business, especially to the aspiring businessmen or entrepreneurs, using

the information obtained and organized by the proponents. Moreover, it also

serves as grounds for business opportunities to innovate their existing products

which will provide their business. In addition, this study is to ensure customer

satisfaction and build a repeating customer

 XV
3

basis and to become successful, stable and maintain its operation for many

years to come and establish customer loyalty. The objectives are to focus in a

welcoming business atmosphere and releasing ambience and to create an

atmosphere where each person can work as a team member, clear goals and

high standards that profit everyone. Every owner envision itself to offered an

exciting and satisfying products and services which vows to become more

progressive, profitable, and sustainable business.

“Food is the ingredients that binds us TOGETHER”

 XVI
4

CHAPTER II

PRODUCT OR SERVICE DESCRIPTION

Meme’s Lechon Manok owned by Miss Ediesere Camaria, have been

involved with the food industry for several years. The owner opened her first

lechon manok business in Purok 10 B, Maniki Kapalong on 2017. Eventually

Meme’s Lechon Manok opens her second branch at Purok 5, Cambanogoy

Asuncion on 2019.

Meme’s Lechon Manok is a retail business which serve a delicious, tasty

and juicy lechon manok. They provide a high quality of products with a very

reasonable price which is considered to be an advantage of the business. They

also offered another product such as slice crispy chicken and lechon belly roll.

Table 1: Product Matrix

Picture of Name of Product Price

Product Product Description (In Pesos)
Lechon Manok Tasty, juicy, and Php 190.00
delicious flavor. Jumbo Size
Perfect mix of
affordability and
portability. Php 170.00
Premium Size

Slice Crispy Affordable, tasty, Php 10.00 Each

Chicken and delicious. Sliced

Lechon Belly Tasty, Fatty, and Php 2,100.00 to

Roll Boneless cut of Php 2,500.00
meat weighing 4
to 5 kilos.

Every customer love to purchase Meme’s Lechon Manok as it always

comes out on every special occasion like fiesta, birthdays, family gathering, etc.
 XVII
5

Their products are considered as all-time favorite and remain popular because

of its own unique flavor, very accessible to the customers with an affordable

price.

Meme’s Lechon Manok products uses goods such as chicken, lemon

grass, onion, garlic, soy sauce, vinegar, kalamansi, sugar and pepper, salt, oil,

spring onion, patis for marinating the chicken and chayote which is their secret

ingredients to make the lechon manok juicy. Stainless steel and charcoal to grill

the marinated chicken, banana leaves to wrap the slice lechon manok before

putting it unto paper bag (supot) wh en someone buys. The sources of their

goods like chicken are from their supplier who delivers to them every week.

However, if the supplier has no stock of the chicken sizes they needed, they go

to Tagum market to buy the sizes they needed. As for the other goods such as

lemon grass, kalamansi, spring onion and banana leaves, they also have a

regular supplier who delivers those raw materials weekly.

Competitive Advantage

Meme’s Lechon Manok have developed their secret ingredients for the flavor

of their products. They remain consistent to those secret ingredients since

they’re seen that the customers were satisfied on it. They didn’t limit their

ingredients because they want to give the best taste to offer to their customers.

Meme’s Lechon Manok is a tasty product that makes the customer come back

again, with its delicious and fulfilling taste, no one can resist the

temptation of buying it. Thus, their product is affordable and available al l year

around.
 XVIII
6

Pricing Structure

The pricing strategy of Meme’s Lechon Manok depends on the different

sizes of the lechon manok. For the sizes of their lechon manok product, they

have premium size, and jumbo size. It is important to establish the single fixed

pricing strategy in the business so that the business will be able to protect its

profit, attain its goals and to maintain the stability of the business.

Table 2: Pricing Structure

PARTICULARS PRICE

Premium size (7’8) Php 170.00

Jumbo size (9) Php 190.00

Fried Chicken (by slice) Php 10.00

Lechon Belly Roll (depends on the Php 2,100.00 to Php 2,500.00

slice)
 XIX
7

CHAPTER III

MARKET STUDY

Target Market

Identifying and choosing its possible target market is one of the most

important aspects of the business. Meme’s Lechon Manok’s target market are

the families, public and private employees, individuals with average income

level, walk in or passers since their establishments was located near the

highway so it is also an advantage to the business for it will be accessible to all

customer, and to those people who loves to eat lechon manok. End users are

the persons who uses a product or services while a customer is the entity that

purchase a product or services but in Meme’s Lechon Manok, their customers

mostly are also their end users.

Every customer buys for a reason. For Meme’s Lechon Manok, the

customers and end-users buy their products to satisfy their cravings and it could

be served throughout the year for any special occasions, during festivals and

holidays and considered as daily consumable. Customers and end-users of

Meme’s Lechon Manok are satisfied with their product since they were able to

meet the needs of the customers and that might have resulted to the business

success.

Furthermore, the Meme’s Lechon Manok location is also an advantage

since it is located near the highway so it is visible to all possible customers.

Their customers won’t have to go far places anymore. Thus, the residents of

Kapalong are more likely to buy Meme’s Lechon Manok because their product

is more affordable.
 XX
8

Meme’s Lechon Manok projected needs is to maintain and ensures the

satisfaction of every customers needs by providing them what they are needed

most. Treating customers fair nicely to gain their loyalty and trust which lead

business into a big opportunity.

They wanted the customers to be satisfied with their products. According

to William McEwen, 2005. notes in his book, married to the brand. Whether a

company is marketing hamburger or microprocessors, there’s an impressive

financial return that results from emotionally engaging consumers and there’s

a substantial cost that results from disengaging them. Understanding the

solutions, they need id the first sign of being a good business owner and proves

that they really want to help them.

The most important aspects of every business are identifying and

choosing its possible customers. Meme’s Lechon Manok engages marketing

process for their target markets in which they discover, generates and delivers

value in the form of goods and services that can satisfy the needs of their target

market. Thus, their key players include the owner, lechoneros and the f emale

seller.

Meme’s Lechon Manok offers delicious and nutritious lechon manok

which comes with a budget-friendly price to its target market such as, students

who likely to buy a ready-made foods, private and public employees who

usually spend time mostly on their work so they will choose to buy readily

available food products, extroverted person since they usually buy the products

directly to the stall and those people who likes to do outdoor activities and wants

the food made beforehand as well as those households with the capability to
 XXI
9

avail the products and have the willingness no matter how much it cost as it will

fill the demand and satisfaction of the customers.

Meme’s Lechon Manok marketing strategy uses different means of

segmentation to reach an increase in market penetration.

Figure 1: Target Market

Kapalong

Asuncion

Sto. Tomas

Sto. Niño

This figure shows the target demands of the business which are the

residents of Kapalong and its nearby municipalities which includes the

employees, students and household members. The result indicates that 65%

of the respondents are from Kapalong then 25% came from Asuncion and 5%

of it are from Sto. Tomas and the remaining 5% are from Sto. Niño.

Demographic Segmentation

Meme’s Lechon Manok is open to all ages who have the willingness and

ability to purchase their products. Meme’s Lechon Manok as a diverse range of

products for both males and females. Consumers for Meme’s Lechon Manok

according to the marketing strategy are in various lifecycle stages such as

single students, young couples without children, married couples with one to

four children all at home and married couples with one to two children in
 XXII
10

secondary level. As for Meme’s Lechon Manok customers, most of them are

laborers, students, housewives, public and private employees but the business

are still open to all occupations as long as individuals, families, friends or other

social groups have their own source of income that fits the minimum level to

purchase the products. Meme’s Lechon Manok caters even in low-income

earners, middle class and above.

Psychographic Segmentation

Meme’s Lechon Manok focuses on every individual who wanted to eat

and buy lechon manok. The customers are not afraid to try new things, products

and services in life.

Geographic Segmentation

The focus of Meme’s Lechon Manok remains on the rural part of the

population.

Behavioural Segmentation

The marketing strategy for Meme’s Lechon Manok specifies the

personality traits of its customers such as hardworking, confident, kind, friendly,

adventurous, humble, helpful. In addition, Meme’s Lechon Manok’s target

market consists of regular and frequent customers of the product. Consumers

of Meme’s Lechon Manok are very loyal and have a strong emotional

connection to the brand

There are several lechon manok stalls around the area in Maniki,

Kapalong such as, Bermudez Lechon Manok and Michael Queens which are

considered as direct competition of Meme’s Lechon Manok. The strengths of

these businesses are its strong brand name and larger space for it’s stall. They

also offered other products such as atsara. The weakness of these business is
 XXIII
11

that their stalls are not visible and cannot easily attract to possible customers.

The product prices of Bermudez Lechon manok Php 170.00 to Php 180.00

while Michael Queens product prices starts in Php 170.00 to Php 200.00

depends on the sizes of the chicken.

Things that make Meme’s Lechon Manok products unique are the

engaging appearance of the product as well as its taste. Through their secret

ingredients, they make their product tastes different from other brands. They

used their ingredients as many as other competitors, but they still manage to

sell it at affordable price unlike the other brands. Thus, they only used eco-

friendly bags for the products, never use plastics or cellophane which make

them an eco-friendly brand.

Due to the fact that lechon manok business are already known worldwide

it wouldn’t be difficult for the competitors to copy the product or service. Thus,

this kind of business is not that hard to manage so anyone with determination

can build this business and serve the same product.

Since Meme’s Lechon Manok doesn’t stop only on the lechon manok

products, they were able to produce another types of products like, sliced crispy

chicken and lechon belly roll. Their competitors may observe of what will be the

outcome for the new launch products. If they found out that it can engage more

customers, that will be the time they take action. The estimating time that the

competitors can copy the products offered by Meme’s Lechon Manok will be in

a week. Before it happens, Meme’s Lechon Manok always make sure that their

product tastes best and they also treat their customers wisely to gain their trust.

Thus, they also maintain to make all their products affordable.

 XXIV
12

Meme’s Lechon Manok located at Purok 10 B, Maniki, Kapalong Davao

del Norte wherein the business is renting a stall and situated along national

highway in which customers can easily recognize its location. Further, the

location in very accessible and visible as it is also a walking distance to the

target market which are the student, public and private employees who are

studying and working to the nearby schools and offices, the by-passers and

travelers, the household of Kapalong and nearby municipalities and also the

families who are bonding together.

The price of Meme’s Lechon Manok products are cheap and affordable

unlike the other competitors, which is good and suitable for the buyers with

average income level. They offer deliciously tasty and juicy lechon manok that

is considered as all-time favorite for all generations.

Table 3: PRICING STRUCTURE OF COMPETITORS

BUSINESS NAME PARTICULAR PRICE

Bermudez Lechon Premium size (7’8) Php 170.00

Manok
Jumbo size Php 180.00

Michael Queens Premium size (7’8) Php 170.00

Jumbo size (9’1) Php 200.00

 XXV
13

CHAPTER IV

OPERATIONAL AND TECHNICAL CHARACTERISTICS

Business Model

Meme’s Lechon Manok follows a retail business model wherein the store

competes locally. The business has direct access to customers who are mainly

local residents. The owner buys a set of goods from the supermarket and

suppliers such as chicken, lemon grass, garlic, soy sauce, vinegar, Kalamansi,

sugar and pepper, salt, oil, spring onion, fish sauce, and chayote, thus paying

these products at a low price and sells them back in the market as lechon

manok products. The business was able to generate revenue through selling

the products directly to the customers. In this way, they can establish a strong

relationship with the local community to build a profitable business.

Figure 2: Business Model

Suppliers:
Meme’s
Tagum Public Market CONSUMERS
Lechon
Survivor from
Manok
Kapungagan
Kapalong Public
Market

Marketing and Sales Strategy

Meme’s Lechon Manok offered the best quality of lechon manok in an

affordable price. Thus, they have consistency of the products taste and color,

that makes the product good enough to meet satisfaction of every customer.

Subsequent regression seen analysis demonstrated that taste and presentation

were the two greatest contributors to customers satisfaction and behavioral

intentions. According to (Namkut, et.al.,2007). In particular, the consequence

of satisfaction may encourage customers to repurchase specific products or

 XXVI
14

services. Meme’s Lechon Manok helps people in rural areas who have an

average income acquire affordable and accessible products. The products of

Meme’s Lechon Manok are not only affordable but also delicious that can

definitely meet customers satisfaction and makes them buy again.

Meme’s Lechon Manok uses direct distribution strategy in the location

where it operates. They also make use of e-commerce to sell the products.

Meme’s Lechon Manok has been able to improve market penetration and

accessibility for consumers by using direct distribution.

Meme’s Lechon Manok uses direct cash transaction for payment

methods of the customers. Cash transactions are the most basic and

convenient for all parties. Although new payment methods are constantly

refined there will always be a market for cash transactions, which all businesses

should be aware. In addition, Meme’s Lechon Manok also used cash on

delivery terms to pay for the products upon delivery.

Distribution Channel

In Meme’s Lechon Manok, the customers are the one who choose on

their desired location in which they are comfortable. They can choose whether

face to face transactions or thru online orders.

Figure 3: Distribution Channel

Meme’s Lechon
Suppliers Customers
Manok

Order via
Online or
Call
 XXVII
15

Production | Operating Requirements

The Transaction starts when the customers visit the area where the

business is located. They will be entertained by the employees and queries will

be answered politely.

Production Process

The production will start on buying the needed ingredients w/c will be

purchased from the suppliers and supermarket. The process flow of the product

will go through production process before being ready to serve to the customers

Figure 4: Production Process

START

The owner/purchaser will go to the supplier

and supermarket.

Get and buy the product from the supplier

and supermarket.

Inventory all the product.

For Take -out

Purchase the needed ingredients and start

grilling.
The Lechoneros will chop the chicken then
pack it.

The Cashier will receive the payments from

the customers.

END
 XXVIII
16

Location

The location of Meme’s Lechon Manok is at Purok 10B Maniki,

Kapalong, Davao del Norte wherein the business is renting a space and they

are the one who construct the store. Also, the business is situated along the

national highway and w/in walking distance of some private and government

establishments, making it visible to potential clients.

Suppliers

The supplier of the goods that will be needed to produce products will be

from the direct suppliers and nearby public markets who are the distributors and

wholesales. In case that there will be a shortage of stocks w/ the necessary

ingredients, public market will be the second option.

Table 4: List of Suppliers

Ingredients Suppliers

Chicken Tagum Public Market

Survivor from Kapungagan

Kalamansi Different vendors
Spices Tagum Public Market
Kapalong Public Market
Soy Sauce Delivered by various sources
Kapalong Public Market

Tagum Public Market

Flour & Cornstarch Tagum Public Market

Grand Mall

Kapalong Public Market

 XXIX
17

Management and Personnel Requirements

Personnel

Meme’s Lechon Manok is a manageable business which does not

require a lot of employees, it only require someone who will maintain and

monitor day-to-day operations of the business. It requires one (1) manager

doing supervisory leadership and management of business operations and

employees. To manage day-to-day operations, keep track of budgets and

spending, and make ensuring that personnel are productive and growing

professionally. Design a growth strategy and defined goals, and most

importantly, provide leadership for the staff to oversee this function with a

monthly salary of Php 12,000 a month. three (3) lechoneros which must be at

least 18 years old and above and at least high school graduate who will

marinate and grill the chicken with a monthly salary of Php 7,500.00 one (1)

cashier which is at least high school graduate who will hold the record and

receive the payments from the customers with a monthly salary of Php

7,500.00. Consequently, employees will be paid twice a month.

Table 5: Job Description and Qualification

Position Job Description Job Qualification

Manager ⚫ Motivator ⚫ Ability to handle

⚫ Provides directional functions pressure well
⚫ Has a capability to manage ⚫ Communicate
the business honestly
⚫ Help develop
employees’ career
⚫ Good people and
management skills
 XXX
18

Lechoneros ⚫ Has a capability to manage the ⚫ At least high school

production process
⚫ Hardworking
⚫ Ensure cleanliness
graduate 18 years
old and above
⚫ Good management
skills
⚫ Physically fit
⚫ Have cooking skills

Cashier ⚫ Collects payments ⚫ At least high school

⚫ Manages transactions with graduate 18 years
customers old and above
⚫ Honest and hardworking ⚫ Good in basic math
skills
⚫ Experience
operating a cash
register

Organizational Structure

The Meme’s Lechon Manok will be a sale proprietorship type of

business. The business will be run by the manager/owner. The line represents

the cashier, who will be in charge of all sales. One (1) manager, one (1) cashier,

three (3) lechoneros work at Meme’s Lechon Manok to assists the business

operations.

Figure 5: Organizational Structure

MANAGER

CASHIER LECHONERO LECHONERO LECHONERO

1 2 3

Regulations / Environment issues

The government regulations that the business must obey are determined

by the industry and location. Meme’s Lechon Manok complied all government

requirements before it operates. The business is aware of the laws and

regulations thus abides w/ all regulation s particularly labor laws, anti-

 XXXI
19

discrimination law and employee safety law. Further, Meme’s Lechon Manok

also ensures environment safety in all it’s operations.

SWOT ANALYSIS

SWOT analysis is a framework used to evaluate a company’s

competitive position and to develop strategic planning. SWOT analysis

assesses internal and external factors, as well as current and future potential.

In Table 4, it indicates the external and internal factors that may reflect the

operation of the business by using 4Ps if marketing mix such as, Product, Price,

Place, and Promotion. These factors serve as a basis that Meme’s Lechon

Manok uses to pursue its marketing objectives and promote it’s product in the

market.

Table 6: SWOT Analysis

Factors Strengths Weaknesses Opportunities Threats
Product • Uses fresh • Shortage of • Home meal • Customers
from the farm supplies of delivery change of
ingredients. the needed taste and
• High quality ingredients preferences.
of product. when there’s
an economic
crisis.
Price • Affordable • Unstable • A favorable • Fluctuation
product prices for raw chance for a of prices of
prices. materials. cheaper and supplies due
direct supplier to pandemic.
of raw
materials.
Place • Located in Not enough • Visible to the • Possible
accessible space to target market increase of
locations. accommodate and to the by- rent.
customer passers.
vehicles.
Promotion • Online • Not enough • Satisfied • Negative
advertising promotional customer’s feedback
through materials and feedback. from
Facebook. strategy. unsatisfied
customer.
 XXXII
20

CHAPTER V

FINANCIAL PROJECTIONS

Financial plan

When running a business, the most critical factor to consider is the

financial aspects of the operation. To launch the business the owner provided

a total of Php 176, 500 as required to fund the operations. The money is critical

to the success of the business since without it, the company would not be

founded and will not achieve its goals.

Meme’s Lechon Manok owner has an important assumption these are the:

⚫ Sales increase by 10% per year

⚫ Rent expense will remain constant until year 5

⚫ Utility expense assumes to increase by 2% every year

⚫ Repair and maintenance expense will increase by 2% per year

⚫ Salaries and wages will increase by 1% per year

⚫ Renewal of permits and licenses will be 10% of increase per year of

business operation.

Table 7: Start-up Cost and Capitalization

START-UP EXPENSES AMOUNT

RENT EXPENSE 4,5000
UTILITIES EXPENSE 6,000
PERMITS AND LICENSES 14,200
EQUIPMENT 50,000
FURNITURE AND FIXTURE 7,800
MERCHANDISE INVENTORY 89,250
SUPPLIES EXPENSE 3,250
TRANSPORTATION EXPENSE 1,500
TOTAL EXPENSE 176,500
OWNER’S CAPITALIZATION
OWNER’S EQUITY 176,500
 XXXIII
21

Sales Forecast

The prediction of daily sales will be based on the capacity of stall in

accommodating customer. A projected monthly sale will be determined by

multiplying daily sales depending on the number of days in operation the basis

will come up the increase of sales by 10% every year.

Table 8: Sales Forecast

Year 1 Year 2 Year 3

5,084,400 5,592,840 6,152,124

The table showed the projected sales in three consecutive years as it

increases through the demand of the customers.

Projected Three-Years Income Statement

Meme’s Lechon Manok
Income Statement
(In Peso)

For the Year Ended Year 1 Year 2 Year 3

Revenue
Sales 5,084,400 5,592,840 6,152,124
Less: Cost of Sales
Direct Raw Materials 4,284,960 4,370,659.2 4,458,072.38
Manufacturing Overheads 72,000 73,440 74,908.8
Total 4,356,960 4,444,099.2 4,532,981.18
Gross Profit 727,440 1,148,740.8 1,619,142.82
Less: Operating Expense
Salaries Expense 360,000 363,600 362,236
Repairs and maintenance Exp. 3,000 3,060 3,121.2
Permits and Licence 14,200 15,620 17,182
Rent Expense 54,000 54,000 54,000
Transportation Expense 18,000 18,360 18,727.2
Total Expense (449,200) (454,640) (460,266.4)
Earning Before Tax 278,240 694,100.8 1,158,876.42
Less: Provision of Tax
On 250,000
Excess of 250,000 5,648
On 400,000 30,000
Excess of 400,000 73,525.2
On 800,000 130,000
Excess of 800,000 107,662.93
Tax Due (5,648) (103,525.2) (237,662.93)
Earnings After Tax 272,592 590,575.6 921,213.49
 XXXIV
22

Projected Three-Years Cash Flow

Meme’s Lechon Manok
Cash Flow
(In Peso)

For the Year Ended Year 1 Year 2 Year 3

Cash Flows From Operating Activities
From operations:
Net Income 272,592 590,575.6 921,213.49
Add: Depreciation Exp. 4,600 4,600 4,600
Net Cash Provided in Operating Act. 277,192 595,175.6 925,813.49
Cash Flow From Investing Act.
Purchased of fixed assets 73,500
Net Cash Provided by Investing Act. (73,500)
Cash Flow From Financing Activities
Initial Investment made by the Owner 176,500
Withdrawal 0.00
Net Cash Provided by Financing Act. 176,500
Net Increase in Cash 380,192 595,175.6 925,813.49
Cash Balance at the Beg. 380,192 975,367.6
Cash Balance at the End 380,192 975,367.6 1,901,181.09

Projected Three-Years Balance Sheet

Meme’s Lechon Manok
Balance Sheet
(In Peso)

As of Years Ended Year 1 Year 2 Year 3

Assets
Current Assets
Cash Balance 380,192 975,367.6 1,901,181.09
Total Current Assets 380,192 975,367.6 1,901,181.09
Non-current Assets
Fixed Assets 73,500 73,500 73,500
Less: Description Expense 4,600 9,200 13,800
Net Book Value 68,900 64,300 50,700
Total Assets 449,092 1,039,667.6 1,960,881.09
Liabilities and Owner’s Equity
Liabilities 0.00 0.00 0.00
Owner’s Equity
Capital Beginning 449,092 1,039,667.6
Investment 176,500
Add: Net Income 272,592 590,575.6 921,213.49
Less: Withdrawal 0.00 0.00 0.00
Owner’s Equity End 449,092 1,039,667.6 1,960,881.09
Total Liabilities and Owners Equity 449,092 1,039,667.6 1,960,881.09
 XXXV
23

Return on Investment

It is a proportion of net income to investment. A key performance

indicator that business frequently use to determine the profitability of an

investment. It is a metric for determining how much money Meme’s Lechon

Manok have made. It can also assist in determining what is working and what

is not in the business so that changes can be made. It’s a way of asking “How

much money will I make if I put this time and money into business?”. It also

compares what you put in with what you get back.

Table 9: Return on Investment

Return on Investment
(In Peso)
Year 1 Year 2 Year 3
Net Income 272,592 590,575.6 921,213.49
Capital 176,500 0.00 0.00
Investment
154% 100% 100%

Return on investment, as shown in the table above, is a ratio or

percentage that measures the effectiveness of each of those investments rather

than a basic peso amount. Meme’s Lechon Manok investment is paying off with

returns of 154 percent in years two and three.

 XXXVI
24

Financial Ratios and Analysis

Current Ratio

The difference between current assets and current liabilities is known as

the current ratio. A liquidity and efficiency ratio that asses a company’s ability

to repay short term debts using current assets. Thus, this ratio is a general and

quick measure of liquidity of a firm.

Table 10: Current Ratio

Current Ratio
(In Peso)
Year 1 Year 2 Year 3
Current Assets 380,192 975,367.6 1,901,181.09
Current Liabilities 0.00 0.00 0.00
100% 100% 100%

In the table above, it shows that Meme’s Lechon Manok had a healthy

financial as they haven’t acquired current liabilities in years one, two, and three.

Net Profit Ratio

The Net Profit Ratio, also known as the Net Profit Margin Ratio, is a profit

ratio that compares a company’s profits to the overall amoun t of money it brings

in. One of the most crucial markers of a company’s financial health. Aids

investors in determining if company’s management is making enough money

from its sales and whether operating and administrative expenditures are being

controlled.

Table 11: Net Profit Ratio

Net Profit Ratio

Year 1 Year 2 Year 3
Net Income 272,592 590,575.6 921,213.49
Net Sales 5,084,400 5,592,840 6,152,124
5% 11% 15%
 XXXVII
25

After all expenses are eliminated, the percentage of Meme’s Lechon

Manok revenue that is actually profit is shown in the table. Meme’s Lechon

Manok has a poor margin of 5% in the first year. However, in year two and

three, they earned 11% to 15% profit margins, which are considered ordinary

or good margin.

Return of Equity

The company’s ability to generate returns on the investments it reclined

from its shareholders is measured by its Return of Equity. It gives information

on a company’s financial effectiveness - it calculates a company’s profitability

in relation to its stockholder’s equity.

Table 12: Return of Equity

Return of Equity
(In Peso)
Year 1 Year 2 Year 3
Net Income 272,592 590,575.6 921,213.49
Net Equity 449,092 1,039,667.6 1,960,881.09
61% 57% 47%

In this table it shows that Meme’s Lechon Manok has an increasing

Return of Equity is positive. Meme Lechon Manok uses efficiently its

shareholders equity to generate income.

 XXXVIII
26

Table 13: Projected Operating Expense

A. Schedule of Depreciation

Items Cost Useful Year 1 Year 2 Year 3

(In Pesos) life in (In (In (In
years Pesos) Pesos) Pesos)
Freezer 11,000 10 1,100 1,100 1,100
Stove Burner 2,500 5 500 500 500
Lechon 60,000 20 3,000 3,000 3,000
Manok
Grilling
machine
Total 4,600 4,600 4,600
Depreciation
Accumulated 73,500 4,600 9,200 13,800
Depreciation

B. Rent Expense

Particular Cost per Month No. Of Month Amount

(In Pesos) (In Pesos)
Rent Expense 4,500 1 4,500

Year Amount
(In Pesos)
1 54,000
2 54,000
3 54,000

C. Utilities Expense

Particular Cost per Cost per Percentage Amount

Month Year per Year (In Pesos)
(In Pesos) (In Pesos)
Electric Bill 3,000 36,000 2% 36,000
Water Bill 3,000 36,000 2% 36,000
Total 6,000 72,000 72,000

Year Amount
(In Pesos)
1 72,000
2 73,440
3 74,908.4
 XXXIX
27

D. Repair and Maintenance

Particular Cost per Year Percentage per Amount

(In Pesos) Year (In Pesos)
Repair and 31,000 2% 31,000
Maintenance

Year Amount
(In Pesos)
1 3,000
2 3,060
3 3,121.2

E. Salaries and Wages

Position Salary No. of Days Months Year Year Year

(In Pesos) employee 1 2 3
(In (In Pesos) (In
Pesos) Pesos)
Lechoneros 7,500 3 30 12 270,00 272,700 275,42
0 7
Cashier 7,500 1 30 12 90,000 90,900 91,809
Manager 12,000 1 30 12 44,000 145,440 146,88
0
Total 15,000 5 504,00 509,040 514,11
0 6

F. Transportation Expense

Particular Cost per Year Average % of Amount

(In Pesos) increase (In Pesos)
Transportation 18,000 2% 18,000
Expense

Year Amount
(In Pesos)
1 18,000
2 18,360
3 18,127.2

G. Permits and License

Particular Cost per Year Average % of Amount

(In Pesos) increase (In Pesos)
Permits and 14,200 10% 14,300
License
 XL
28

Year Amount
(In Pesos)
1 14,200
2 15,620
3 17,182

H. Supplies Expense

Particula Uni Quantit Price Total Year 1 Year 2 Year 3

(In Pesos) (In Pesos) (In Pesos) (In Pesos) (In Pesos)
r t y
Eco bag Set 2 50.00 100.00 100.00 100.0 100.0
0 0
Food Pcs 3 50.00 150.00
thongs .
Knives Set 2 250.0 500.00
0
Gasul Pcs 2 1,000 2,000 2,000 2,000 2,000
.
Chopping Set 2 280.0 500.00 500.00 500.0
board 0 0
Total 3,250.0 3,250.0 2,100 2,600
0 0

Sales Forecast

Amount % Increase Total Sales

(In Pesos) (In Pesos)
Year 1 5,084,400 5,084,400
Year 2 5,084,400 10% 5,592,840
Year 3 5,592,840 10% 6,152,124

Sales Forecast

Particul Selli Sales Sales/ Sales/Mo Year 1 Year 2 Year 3

ars ng Volu Day nth (In (In (In
Price me (In (In Pesos) Pesos) Pesos)
(In Pesos) Pesos)
Peso
s)
Lechon 190. 50 9,500 285,000 3,420,0 3,762,0 4,138,2
Manok 00 00 00 00
Jumb 170. 20 3,400 102,000 1,224,0 1,346,0 1,481,0
o 00 00 00 40
Premi
 XLI
29

um
Crispy 10.0 100 1,000 30,000 360,00 396,00 435,60
Chicken 0 0 0 0
Slice
Lechon 2,10 2 4,200 50,400 55,440 60,984
Belly 0
Roll (3kls.
)
2,50 1 2,500 30,000 33,000 36,300
0
(5kls.
)
Total 423,700 5,084,4 5,592,8 6,152,1
00 40 24

Cost of Goods Sold

Items Unit Quantity Price Weekly Monthly Annual

(In Cost Cost Cost
Pesos)
(In Pesos) (In Pesos) (In Pesos)
Chicken Pcs. 70 156 76,440 305,760 3,669,120
Onion Kg. 5 50 250 1,000 12,000
Garlic Kg. 5 60 300 1,200 14,400
Spring Kg./grams 5 30 150 600 7,200
Onion
Pepper Kg. 1/2 200 200 800 9,600
Chili Kg. 1 200 200 800 9,600
Lemon Pcs. 60 5 2,100 8,400 100,800
Grass
Chayote Kg. 10 30 300 1,200 14,400
Soy Sauce Gal. 7 150 1,050 4,200 50,400
Vinegar Gal. 5 160 1,120 4,480 53,760
Salt Kg. 5 30 150 600 7,200
Banana Pcs. 60 1 420 1,680 20,160
Leaf
Kalamansi Kg. 7 260 1,800 7,280 87,360
Sugar Kg. 4 40 160 640 7,680
Oil Kg. 20 100 2,000 8,000 96,000
Patis Gal. 1 170 170 680 8,160
Flour Kg. 20 40 800 3,200 38,400
Charcoal Sack 7 120 840 3,360 40,320
Cornstarch Kg. 8 50 800 3,200 38,400
Total 89,250 349,800 4,284,960
Inventory
End
 XLII
30

CHAPTER VI

SUMMARY AND RECOMENDATIONS

When it comes to roasting chicken, Meme’s Lechon Manok has a great

level of consistency. Many of their customers always buy the products over

again because of the quality of the products and the affordable price as well.

This only shows that their process and methods of roasting chicken is effective

in reducing product defects which resulted to a tasty and delicious Lechon

manok products according to the customer’s feedback.

In today’s commercial world, success necessitates a combination of

expertise, determination, and hard work. The Meme’s Lechon Manok owner

must be completely dedicated to the business and have a well-thought-out

business plan to help them succeed. They must also be able to acknowledge

their mistakes and make improvements to what isn’t functioning. To assist in

the development of a profitable and successful Lechon Manok business, try

following the ideas.

Lack of Space. In order to attract more possible customers, the stall

must be appearing to the public eye since this is the first sense that we need to

please subconsciously. For Meme’s Lechon Manok, we recommended that

they have enough space especially when it comes to the parking area, to

accommodate the large numbers of customers at once.

Not enough options and no side dishes. Meme’s Lechon Manok must

also consider implementing the suggestions of the customers such as adding

other kind of sauce like gravy, adding food products to be partnered with the

roasted chicken such as atchara.

 XLIII
31

Improve Promotional Strategy. We recommend that the business will

promote the products in other way such as offering freebies, coupons and

giveaways to the customers in order to foster relationships and inspire loyalty

with existing customers.

A new entry to the Lechon Manok business can benefit from a number

of advantages. First, the business is free to take its market. It is completely free

to take the market and it is not difficult to do so if you have a good location.

Second, Lechon Manok products are consumed on a daily basis. It is prepared

over the course of a year for use at anytime. Lastly, it’s not hard to have a good

location for a franchise. Meme’s Lechon Manok may face challenges

particularly from its competitors. To defeat the competition, a variety of effective

plans and methods may be required. When it comes to running one of those

Lechon Manok business, management accomplishments are crucial. A friendly

crews and quality of products is the foundation of the business. The secret to

success is to have a well-thought-out plan. Keep up with the changes in the

market because they can have an impact on your bottom line.

 XLIV
32

CHAPTER 7

LIST OF APPENDICES

Appendix A (Business Logo)

 XLV
33

Appendix B (Survey Questioner)

CARD MRI DEVELOPMENT INSTITUTE INC.

Prk. Lemonsito, Mankilam Tagum
Tagum City, Davao del Norte

MEME’S LECHON MANOK

Dear Respondents,

Thank you for accepting to participate in this survey voluntarily. The goal

of this question research is to establish the viability and marketability of Meme’s

Lechon Manok in the Municipality of Kapalong and surrounding Municipalities.

It’s possible that this survey will take a few minutes to complete. Your

response will be keep completely private and will only be reported in aggregate.

Your time and thoughts are greatly valued.

1. Do you usually buy lechon manok in Meme’s?

A. Yes B. No

2. If Yes, Why?

3. How often do you buy lechon manok?

A. Weekly B. Every 15 days C. Everyday

 XLVI
34

Appendix C (Location Map)

 XLVII
35

Prenches Suhara A. Jumat

Purok 3, Cambanogoy, Asuncion, Davao del Norte

09556471679

prenchessuharajumat@gmail.com

Personal Information

Name: Prenches Suhara A. Jumat

Birth Date: September 23, 1998

Birth Place: Asuncion, Davao del Norte

Height: 4’9”

Weight: 45 kls.

Sex: Female

Civil Status: Single

Religion: Islam

Nationality: Filipino

Educational Background

Tertiary: Year

CARD-MRI DEVELOPMENT INSTITUTE INC. Present

Secondary: Year

Maryknoll High School of Asuncion 2017-2018

Primary: Year

Cambanogoy Elementary School 2011-2012

 XLVIII
36

Jeane Rose E. Amamio

Purok 1, Sagayen, Asuncion, Davao del Norte

09104424644

jeaneamamiodyo@gmail.com

Personal Information

Name: Jeane Rose E. Amamio

Birth Date: June 20, 2000

Birth Place: Davao Medical Center, Davao City

Height: 5’

Weight: 55 kls.

Sex: Female

Civil Status: Single

Religion: Penticostal

Nationality: Filipino

Educational Background

Tertiary: Year

CARD-MRI DEVELOPMENT INSTITUTE INC. Present

Secondary: Year

CARD-MRI DEVELOPMENT INSTITUTE INC. 2018-2019

Primary: Year

Sagayen Elementary School 2012-2013

 XLIX
37

Gelene L. Goodmalin

Purok 15, Sagayen, Asuncion, Davao del Norte

09973208937

gelenegoodmalin@gmail.com

Personal Information

Name: Gelene L. Goodmalin

Birth Date: March 12, 2001

Birth Place: Davao City

Height: 5’6”

Weight: 62 kls.

Sex: Female

Civil Status: Single

Religion: Roman Catholic

Nationality: Filipino

Educational Background

Tertiary: Year

CARD-MRI DEVELOPMENT INSTITUTE INC. Present

Secondary: Year

Sagayen National High School . 2012-2013

Primary: Year

Datu Magbaad Elementary School 2006-2007

 38L

Leah G. Tonlay

Purok 6, Canatan, Asuncion, Davao del Norte

09639443418

voltlhetonpaps@gmail.com

Personal Information

Name: Leah G. Tonlay

Birth Date: March 05, 1983

Birth Place: Longanapan, Laak, Davao de Oro

Height: 5’0

Weight: 60 kls.

Sex: Female

Civil Status: Married

Religion: Roman Catholic

Nationality: Filipino

Educational Background

Tertiary: Year

CARD-MRI DEVELOPMENT INSTITUTE INC. Present

Secondary: Year

New Corella National High School 1999-2000

Primary: Year

Longanapan Elementary School 1995-1996