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Chapter 1
INTRODUCTION

Background of the Study

Chicharron is a popular Filipino delicacy usually made from deep-fried pork rinds

and is usually served with vinegar dip. It is a snack dish that has been enjoyed by Filipinos

due to its versatility. Chicharron is filled with flavor, perfect to pair with a rice meal, as a

road trip snack, or even late-night drinking sessions. Not only that it satisfies hunger, it

also brings joy as it, at times, serves as a pasalubong. But since it is generally considered

unhealthy, innovations such as vegetable-made chicharrons arose as varieties.

According to a historian named Lillian Borromeo as cited by Castro (2019),

chicharon originated in Spain and is now staple in many of its former colonies, including

the Philippines. There were two kinds of chicharron back in time, separating the rich from

the poor. The Illustrados got “chicharon laman” or the chicharron with lean meat, while

the indios got “chicharon ampaw” or the airy plain pork rind. It is just one of the many

influences left by the Spanish regime that continues to foster up until this day.

Spanish-speaking nations, pay much attention to chicharrón, which is a highly-

valued dish within the Hispanic community. The look, smell, and feel of it all add up to its

richness, in spite of its simplicity as a dish, making it a “delicacy of the Gods”. A version

called chicharron prensado can be bought at local butcher shops in Mexico (The chicharrón

and its peculiar history in Mexico and Latin America, 2022). In addition to that, varieties

like baked and smoked chicharróns were introduced for health and preference reasons

(Dassie, 2022). Nevertheless, eating chicharrón is still associated with health risks.
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The CoViD-19 pandemic transformed the lifestyle of many, making today’s time

an era of health consciousness especially when it comes to food (Health-conscious

Consumers Are Looking to Enjoy It All, 2022). For that reason, vegetable-made chicharrons

like kalabasa chicharon were introduced to encompass the demand of the health-conscious

ones. As compared to pork rinds, kalabasa chicharon is much healthier as squash, according

to WebMd (2022), contains vitamins, minerals, and antioxidants that could help reduce

risk of depression and enhance skin health, to name a few.

Additionally, as cliché as it may seem, squash indeed helps improve eye health

(Health Benefits of Winter Squash and Ways You Can Cook Them, 2023). Moreover,

according to that same article, this widely-known vegetable (which is actually a fruit)

reduces cancer risk and boosts immunity since it contains beta-carotene, a pigment found

in plants, that the body converts into Vitamin A. That only implies that kalabasa chicharon

can be an alternative of the classic pork rind chicharrón as a healthier choice.

In the Philippines, chicharrón is more than just a snack—it is a symbol of Filipino

identity. Chicharon festival is being celebrated every February in Santa Maria, Bulacan,

the Chicharon Capital of the Philippines, recognizing chicharon and the makers themselves

(Mendiola, 2023) (More things to know about the Chicharon Capital of the Philippines,

2021). In addition to that, chicharrón has also been a source of livelihood for many

Filipinos. Manabat (2022), with the reports from Dr. Lea B. Milan, Tarlac State

University’s Food Technology and Research Center (FTRC) along with College of Science

(COS) research and extension representatives supports local enterprises in Camiling,

Tarlac towards a “safe and quality” Chicharon Camiling.

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Chichárón's significance in Philippine culture, however, is far more than just a tasty

snack. Such a prominent presence in social life is proof of shared experiences among

different communities that unite for a common good—since chichárón is indeed loved by

all. Additionally, linking chichárón with festivities such as fiestas, birthdays, and others of

significance attributes to its nature of being a symbol of happiness and celebration.

Furthermore, the elaboration process itself is very manual labor intensive, something that

embodies precepts of labor and tenacity (Castro, 2019).

Despite the modern advancements in cooking technology, chichárón remains a

favored snack of Filipino cuisine, whether in the home or abroad. In the past few years,

there have been efforts to bring chichárón above its street-food standing as chichárón has

begun to be used in gourmet dishes and fusion cuisine by chefs. This shows how chichárón

is both malleable and timeless, which still has potential to change more in the taste of the

times (Austria, 2024). While chicharron in the Philippines is generally made from pork

belly or pork rinds, ingredients like chicken skin, pork ears, omentum (bulaklak), intestines

(isaw), and tuna skin, to name a few, were added to accommodate the diverse preferences

of Filipinos (Delicacies Philippines, 2023).

In addition, kalabasa chicharon offers economic opportunities for local farmers and

producers. Squash is an underrated vegetable crop in the Philippines, only being

incorporated into a few dishes (Candelaria et al, 2020). Through the production of kalabasa

chicharon, squash production will also be promoted, highlighting its nutrient-dense

characteristic. The establishment of Squashicharon will also accentuate local products of

Binalonan, Pangasinan such as vinegar, being a complementary product of chicharon.

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Furthermore, kalabasa chicharon represents an entrepreneurial culture of

improvisation. A culture of not sticking to what is original but striving to adapt to the ever-

changing needs and wants of end users. That reflects a Filipino culture of flexibility and

adaptability as well. Something that makes kalabasa chicharon a worth-buying good,

accentuating cultural relevance.

With the introduction of kalabasa chicharon to the market, opportunities are being

identified. Chips like chicharron are observed to be a trend nowadays; they solve health-

related preferences; and they fill the gap in the marketplace as one of the few healthier

snacks existing. That also serves as a Filipino cuisine breakthrough, offering another yet

better choice of food for health-conscious consumers.

Squashicharon aims to produce a snack that will be loved by everyone not just

because of its taste and health benefits, but also because it touches Filipino identity.

Through the production of this good, trends are being rode on, problems are being solved,

and market gaps are being fulfilled. Squashicharon may sound like a boring business, but

the inspiration of this venture cultivates relevant aspects of entrepreneurship and

patriotism.

Statement of the Problem

This feasibility study aims to evaluate the viability of Squashicharon in the market.

Specifically, it intends to analyze the following:

A. Marketing Aspect

1. What is the description of the proposed business?

2. What is the logo and the tagline of the proposed business?

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3. What is the name of the proposed business?

4. Who is the target market?

5. What is the price of the proposed product?

6. What are the marketing strategies to be formulated and implemented for the

proposed business?

7. What are the strengths, weaknesses, opportunities and threats of the proposed

business?

B. Technical Aspect

1. What is the exact location of the proposed business?

2. What is the production process of the proposed business?

3. What are the facilities and equipment needed for the proposed business to

operate?

4. What is the proper waste disposal management of the proposed business?

5. Who are the suppliers of the proposed business?

C. Organizational and Management Aspect

1. What is the organizational structure of the proposed business?

2. What are the mission, vision, goals and objectives of the proposed business?

3. What are the corresponding duties and responsibilities of the key personnel?

4. What are the policies, rules, and guidelines to be implemented by the owner of the

proposed business?

5. What are the qualifications of the employees of the proposed business?

6. What is the compensation scheme of the proposed business?

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D. Financial Aspect

1. How much is the needed capital in establishing the proposed business?

2. What are the major assumptions to be used?

3. What are the possible sources of capital to be used?

4. What is the projected financial statement of the proposed business in 5 years?

5. What are the expected expenses that the business incurs before and after the

operation?

E. Socio-Economic Aspect

1. Who will benefit from the proposed business?

2. What are the contributions of the proposed business in the society?

3. How can the proposed business contribute to the welfare of the economy?

Scope and Delimitation

This study focuses primarily on determining the feasibility of Squashicharon in

Binalonan, Pangasinan. This study also aims to determine demand for Squashicharon in

the said municipality and to create strategies for the proposed business.

This study will be based on the business aspect.

a) Marketing

b) Technical

c) Organizational

d) Financial

e) Socio economic
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Definition of Terms

The following terms are operationally defined to further understand the context of

the study.

Chicharron - a snack originated in Spain that is usually made from deep-fried pork rinds.

Festival - an event held to celebrate something or someone such as saints, main product of

a place, and such.

Health-conscious - someone who thinks a lot about his health, considering everything

including what he takes in or eats.

Illustrados - a group of Filipinos during the Spanish regime to have the privilege to

consume the better variant of chicharron, which is the one that has lean meat.

Indios - a group of Filipinos during the Spanish regime that consumes the normal variant

of chicharron, which is the airy one.

Pasalubong - a Filipino culture of buying something for loved ones after a vacation to

somewhere.

Squash - a well-known vegetable (which is actually a fruit) that is rich in minerals and

vitamins, popular in improving eye health.

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Chapter 2

MARKETING ASPECT

This chapter encompasses the marketability of the product, which includes the

demand and supply analysis, projected sales, marketing strategies, and SWOT analysis.

Time and effort are required in order for the business to succeed. The proponent of this

study must be creative in order to deliver quality service as well as delicious and nutritious

chicharon product.

Business Description

The proposed business, Squashicharon, intends to penetrate the markets of

chicharon within Binalonan, Pangasinan. Squashicharon is chicharon that is made from a

mixture of squash and starch. This product aims to offer a new delightful and distinct type

of chicharon that will make customers interested. Its business strength is its commitment

to provide exceptional-quality products while maintaining high standards from raw

materials and production up to its expanding number of delighted customers.

The business is a general partnership business managed by seven young individuals

namely Acosta, Lyka May C., Caronan, Jessa Mae R., Castillo, Kristine O., De Guzman,

Abigail M., Gabriel, James C., Madriaga, Valerie Kaye, S., and Magno, Jenny Rose J. The

nature of the business will be a manufacturing business that will feature the production of

chicharon made from squash. The business will be located at Binalonan, Pangasinan where

the target market is accessible. Furthermore, the business will operate from Sunday to

Friday, starting 8:00 a.m. until 5:00 p.m.

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Business Name

The proponents named the business “Squashicharon”. This was derived from the

combination of the words “squash” and “chicharon” which are the main ingredient and the

final product respectively. To make the product remarkable, the proponents came up with

the idea to make a new version of the typical chicharon, now made from squash, which

will provide a nutritious snack that will be worth the purchase. Through its name,

customers will become curious of the taste of the product and will make them have the

interest that would make Squashicharon attract potential customers in the market of

Binalonan. The business name could also be beneficial because it helps the business to

become more recognizable to others and helps in expanding its operation outside

Binalonan.

Business Logo

Figure 2.1 Logo of the business

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Figure 2.1 shows the official logo of Squashicharon. The logo has the feature of

squash on the left side and in the middle which represents the main ingredients of the

proposed product. As a new business, the proponents place the name of the business on the

top of the logo to represent the great pride of the business, and its tagline “Chicharon

Redefined, Kalabasa Perfected” in the center to make a strong impression, capture

attention, and attract potential customers in the market. Furthermore, the proponents also

decided to choose orange as the main color of the logo because it symbolizes the color of

squash and the brightness and the economic success of the business, while white color is

used for the background to represent the safety and freshness of the product.

Business Tagline

“Chicharon redefined, kalabasa perfected” is the tagline for the proposed business.

This tagline use to tell the customers that it is not just a typical chicharon because the

product has been reinvented the traditional chicharon with perfection from the addition of

kalabasa. This represents another aspect of chicharon—representing an improved, new

type that now includes squash.

Competitors’ Profile

In business, competition refers to the struggle between multiple companies offering

comparable products or services. There are two primary types of competition: direct and

indirect competition. Direct competitors provide a product or service that addresses a near

equivalent consumer need, while indirect competitors sell the same product, but have aims

different from that of its competitors (Gafner et. al, 2023).

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Table 2.1
Direct Competitors
Business
Competitors Price Location Product Size
Name
Buguion,
RAMC Kalabasa
A Php 33.00 Calumpit, 75 grams
Food chicharon
Bulacan
Robinson
Squash
B Tastylicious Php 25.00 Place 30 grams
chicharon
Valencia
Bernado
Sitcharon Village,
Squash
C Mang Php 135.00 Mayondon, 70 grams
cracklings
Kalabasa Los Banos,
Laguna

Table 2.1 shows the direct competitors of Squashicharon. These businesses offer

the same product as the proposed business do. This can be used to analyze what sets the

business apart from the competition. Furthermore, it can be used to formulate strategies to

further foster in the market.

Table 2.2
Indirect Competitors
Business
Competitors Price Location Product Size
Name
Jennie’s Sta. Maria, Pork
A Php 40.00 75 grams
Chicharon Bulacan chicharon
PrinceJewel
Mexico, Chicharon
B Chicharon Php 130.00 200 grams
Pampanga Bagnet
Bagnet
Paul’s
Sampaloc, Mushroom
C Mushroom Php 110.00 100 grams
Manila Chicharon
Chicharon
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Table 2.2 illustrates the indirect competitors of Squashicharon. These businesses

sell chicharon as well, but not as specific as kalabasa chicharon. They have little to no

impact to the proposed business, but are still considered competitors.

Presentation and Interpretation of Gathered Data

To gather relevant data which could further help to investigate the feasibility of the

proposed business, the proponents drafted a self-administered questionnaires validated by

internal validators namely Mr. Mark Louie Soriano, MIT and Ms. Czaraine Joyce G.

Lapeña, MAEd from the University of Eastern Pangasinan, and external validators namely

Mr. Glenn S. Veniegas, M.Ed and Mr. Dionisio C. Ganigan Jr., EdD from Juan G.

Macaraeg National High School. The internal validators confirmed that the questionnaire

is valid, with a mean score of 3.9, while the external validators verified it with a mean score

of 5.0, indicating its high validity.

The number of respondents was acquired using the Cochran’s Formula. The result

revealed that with a 95% level of confidence, the respondents should be 382 Binalonan

residents. The proponents gathered data for a week in different barangays of Binalonan,

Pangasinan.

age

15 and below
20% 6%

16-20 years old

42% 21-25 years

old
32%
26 and above

Figure 2.2. Age

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Figure 2.2 presents the age of the respondents. Most of them are aged 16–20 years

old representing 42% of the respondents. Only 6% of them are of the age 15 years old and

below.

sex

44% Female
56% Male

Figure 2.3. Sex

Figure 2.3 shows the sex of the respondents. 56% of them are female, while the

remaining 44% of them are male.

Are you fond of eating

chicharon?

Yes
No

Figure 2.4. Are you fond of eating chicharon?

Figure 2.4 illustrates the answer of the respondents to the question “Are you fond

of eating chicharon?” Majority of them answered yes (92%) and the rest answered no (8%).

That implies that Binalonan residents, represented by the respondents, love to eat chicharon

and that Squashicharon will be a great venture in the market.

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How often do you eat

chicharon?
3% 2%

Everyday
24%
2x a week
40%
2x a month
1x a month
Never
32%

Figure 2.5. How often do you eat chicharon?

Figure 2.5 depicts the answer of the answer of the respondents to the question “How

often do you eat chicharon?” 40% of them answered once a month, 32% responded twice

a month, 24% said twice a week, 3% never ate chicharon, and 2% eats every day. This

infers that most of the respondents are snacks-lover but health-conscious at the same time.

Are you a health-

concious individual?

Yes
No

Figure 2.6. Are you a health-conscious individual?

Figure 2.6 presents the answer of the respondents to the question “Are you a health-

conscious individual?” 80% of them answered yes and 20% answered no. It only indicates

that majority of Binalonan residents, which are the target customers, will most likely

patronize Squashicharon as it offers a healthier version of chicharon.

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If there's a healthier
alternative to pork
chicharon, would you
try it?
5%

Yes
No

95%

Figure 2.7. If there’s a healthier alternative to pork chicharon, would you try it?

Figure 2.7 shows the representation of the answers of the respondents to the

question “If there’s a healthier alternative to pork chicharon, would you try it?” 95% of the

responded yes and only 5% said no. This could mean that 95% of Binalonan residents will

demand kalabasa chicharon offered by Squashicharon, since it is a healthier alternative to

pork chicharon.

Which type of chicharon

do you prefer to try?
Pork Chicharon

Kalabasa
Chicharon
Mushroom
Chicharon
Chicken skin
Chicharon

Figure 2.8. Which type of chicharon do you prefer?

Figure 2.8 illustrates the answer of the respondents to the question “Which type of

chicharon do you prefer to try?” Most of them (48%) answered kalabasa chicharon. It could

mean that Binalonan residents are willing to try kalabasa chicharon. 18% of them wanted

mushroom chicharon, which is also a vegetable-based chicharon.

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What flavor would you

like for kalabasa
chicharon?
0% Plain
7% Spicy
10% 21%
Garlic
14% Cheese
BBQ
8% 37%
Sour cream
Other

Figure 2.9. What flavor would you like for kalabasa chicharon?

Figure 2.9 shows the preferred flavor of the respondents for kalabasa chicharon.

37% of them like it spicy, 21% prefer plain, 14% want cheese, 10% enjoy barbeque flavor,

8% delight garlic flavor, and 7% love sour cream. It could mean that Squashicharon will

start with plain and spicy flavors, but will still offer other flavors in the next years to adapt

with the ever changing preferences of people.

What sensory attributes

of kalabasa chicharon do
you like?

Appearance 24%

Texture 38%

Taste 79%

0% 20% 40% 60% 80% 100%

Figure 2.10. What sensory attributes of kalabasa chicharon do you like?

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Figure 2.10 depicts the answer of the respondents to the question “What sensory

attributes of kalabasa chicharon do you like?” 79% of the respondents value taste the most

and only 24% of them care about the appearance. It could indicate that Squashicharon will

invest more in the taste of the product without compromising its texture and appearance.

What factors influence

your snack choice?

Brand recognition 6%

Healthiness 47%

Price 42%

Taste 56%

0% 10% 20% 30% 40% 50% 60%

Figure 2.11. What factors influence your snack choice?

Figure 2.11 presents the answer of the respondents to the question “What factors

influence your snack choice?” Still, taste (56%) is what they are looking for. Additionally,

healthiness (47%) and price (42%) fascinates them, hence the offer of Squashicharon.

Where do you usually

purchase chicharon?
1%

Grocery Store
42% 49% Bus
Public market
Other
9%

Figure 2.12. Where do you usually purchase chicharon?

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Figure 2.12 shows the answer of the respondents to the question “Where do you

usually purchase chicharon?” 49% of them buy at grocery stores, 42% buy at the public

market, 9% buy at a bus, and 1% buy at other place aside from the mentioned. This implies

that the location of Squashicharon, which is near grocery stores and the public market of

Binalonan, is a good location to attract customers.

How much are you How much are you

willing to spend willing to spend
for kalabasa for kalabasa
chicharon? chicharon?

Classic Flavored
30/50 grams 35/50 grams

Classic Flavored
50/100 55/100
grams grams
Classic Flavored
60/150 65/150
grams grams

Figure 2.13 & 2.14. How much are you willing to spend for kalabasa chicharon?

Figure 2.13 and 2.14 illustrates the answer of the respondents to the question “How

much are you willing to spend for kalabasa chicharon?” Most of them are willing to spend

Php 30/50 grams for a plain kalabasa chicharon and Php 35/50 grams for a flavored one.

Some of them are willing to buy Php 50 (30%) and Php 55 (32%) worth of 100 grams

kalabasa chicharon for the plain and the flavored variant respectively. Only 10% are willing

to spend Php 60 and Php 65 per 150 grams for both the plain and the flavored product. It

could be inferred that Squashicharon will produce more 30gram-packs and less 150gram-

packs to ensure profitability and efficient inventory management.

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Would you recommend

kalabasa chicharon to
others?
3%

Yes
No
97%

Figure 2.15. Would you recommend kalabasa chicharon to others?

Figure 2.15 presents the answer of the respondents to the question “Would you

recommend kalabasa chicharon to others?” Majority of them (97%) responded yes and only

3% said no. This could mean that Squashicharon will not be worrying about promoting the

product intensively as the buyers themselves will do the work.

Demand and Supply Analysis

Demand and supply are microeconomic concepts which are crucial in determining

price in a market. Demand and supply analysis is important to identify the market position

of a business and the measures it will do to stay competitive in the market.

Table 2.3
Projected Population of Binalonan, Pangasinan
Year Projected Population of Binalonan, Pangasinan
2020 56,382
2021 56,781
2022 57,182
2023 57,580
2024 57,986
2025 58,392
2026 58,802
2027 59,214
2028 59,627
2029 60,044
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Table 2.3 shows the projected population of Binalonan, Pangasinan. The data were

based on the given list of the local government unit of Binalonan, Pangasinan duly

requested by the proponents. The population has an increment of 0.007% per year, hence,

the projection.

Demand

Demand is the ability and the willingness of consumers to purchase goods and

services at a specific price (The Investopedia Team). It is the underlying force that drives

growth and development within an economy.

Table 2.4
Projected Demand

Year Projected Demand

2025 55,472
2026 57,136
2027 58,850
2028 60,616
2029 62,434

Table 2.4 presents the projected demand for Squashicharon. Based on the survey

administered, 95% of the respondents are willing to try a healthier alternative to pork

chicharon, hence the demand for 2025. The demand is expected to increase by 3% annually.

Supply

Supply is the entire quantity of a certain commodity (goods and services) offered

to market for consumption (Kenton, 2023). It can be related to the quantity available at a

certain price or the quantity available throughout a range of prices.

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Table 2.5
Projected Supply

Year Projected Supply

2025 44,378
2026 46,597
2027 48,927
2028 51,373
2029 53,942

Table 2.5 illustrates the projected supply of Squashicharon. It is assumed that the

supply will be 80% of the demand, since there is no nearby direct competitor. It is expected

to increase by 5% annually.

Demand-Supply Gap

According to Perner (n.d.), demand side gaps refer to instances within a market

wherein consumers exhibit dissatisfaction with the available goods or services, primarily

due to either insufficient quality of service rendered or prohibitively high pricing.

Conversely, supply side gaps entail scenarios wherein firms offer services that fulfill

consumer needs, albeit these needs can be fulfilled elsewhere at comparatively lower costs.

Table 2.6
Demand-Supply Gap
Demand- Percent
Year Demand Supply
Supply Gap Unsatisfied
PROJECTED
2025 55,472 44,378 11,094 20.00%
2026 57,136 46,597 10,539 18.45%
2027 58,850 48,927 9,923 16.86%
2028 60,616 51,373 9,243 15.25%
2029 62,434 53,942 8,492 13.60%
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Table 2.6 shows the demand and supply gap for the projected years. It is assumed

(based on the survey conducted) that 95% of the projected population will purchase, having

an increment of 3% annually, hence, the demand column. The supply is assumed to be 80%

of the demand with a 5% increase per year. The gap is computed by subtracting the supply

from the demand, and the percent unsatisfied is computed by dividing the gap by the

demand and then multiplied by 100.

Target Market

The target market will primarily be the residents of Binalonan, Pangasinan.

Especially, individuals looking for a healthier alternative to traditional pork chicharon,

vegetarians seeking for vegetable-based snack options, people with dietary restrictions or

preferences, non-pork-eating people, and individuals who are interested in exploring

unique and flavorful snacks, as well as those who value the nutritional benefits and unique

taste of kalabasa. The business also targets local grocery stores and stalls within Binalonan,

Pangasinan. Additionally, the business targets individual whose choice of snacks is

affected by taste, price, and quality because Squashicharon will definitely offer these

factors on a high note. Furthermore, people interested in supporting sustainable and eco-

friendly eating options may find kalabasa chicharon appealing.

Sales Forecast

According to Raeburn (2024), a sales forecast uses historical company data to

project future sales revenue. It can be used to assess financial projections and have a change

in business plan if necessary. Additionally, sales forecast is helpful during project planning

to determine the allocation of resources towards new ventures.

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Table 2.7
Projected Sales
Unit
Year Size and Flavor Quantity Sales Revenue
Price
2025 (Classic) small 30 13,824 packs 414,720
(Classic) medium 50 6,912 packs 345,600
(Classic) large 60 2,304 packs 138,240
(Spicy) small 35 13,824 packs 483,840
(Spicy) medium 55 6,912 packs 380,160
(Spicy) large 65 2,304 packs 149,760
Total 46,080 packs 1,912,320

2026 (Classic) small 31 14,515 packs 449,965

(Classic) medium 51 7,258 packs 370,158
(Classic) large 61 2,419 packs 147,559
(Spicy) small 36 14,515 packs 522,540
(Spicy) medium 56 7,258 packs 406,448
(Spicy) large 66 2,419 packs 159,654
Total 48,384 packs 2,056,324

2027 (Classic) small 32 15,241 packs 487,712

(Classic) medium 52 7,620 packs 396,240
(Classic) large 62 2,540 packs 157,480
(Spicy) small 37 15,241 packs 563,917
(Spicy) medium 57 7,620 packs 434,340
(Spicy) large 67 2,540 packs 170,180
Total 50,802 packs 2,209,869

2028 (Classic) small 33 16,004 packs 528,132

(Classic) medium 53 8,002 packs 424,106
(Classic) large 63 2,667 packs 168,021
(Spicy) small 38 16,004 packs 608,152
(Spicy) medium 58 8,002 packs 464,116
(Spicy) large 68 2,667 packs 181,356
Total 53,346 packs 2,373,883

2029 (Classic) small 34 16,803 packs 571,302

(Classic) medium 54 8,402 packs 453,708
(Classic) large 64 2,800 packs 179,200
(Spicy) small 39 16,803 packs 655,317
(Spicy) medium 59 8,402 packs 495,718
(Spicy) large 69 2,800 packs 193,200
Total 56,010 packs 2,548,445
GRAND TOTAL 254,622 packs 11,100,841
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Table 2.7 presents the projected sales of the product. The unit price is based on the

computed costing; it is expected to increase by Php 1 annually, anticipating inflation and

other factors. The quantity is based on the estimated supply; it can be observed that the

production has a 5% increase per annum. The expected sales revenue is computed by

multiplying the unit price by the quantity.

Marketing Strategies

Marketing strategies intended to assist the business in introducing product

recognition in order to better describe and understand the concepts of the product. This is

a very important step in the introduction of the product because this will give the first

impressions to the customers. The proponents need to have an effective marketing

strategies because it will not be only of great contribution in the success of the business,

but also helps in building business name recognition and meaningful relationship with

target customers.

Product

Squashicharon position itself as a producer of nutritious and crunchy chicharon

made from squash and it consists two kinds of flavors which are classic and spicy. The

product will be served to customers with high quality and good packaging. This snack will

serve as a healthy alternative of junk foods and other kinds of chicharon because squash is

packed with nutrients, vitamins, and rich in organic compound. This chicharon will be

undoubtedly enjoyed by and will delight the taste buds of the customers, especially those

people who are chicharon lovers but are health-conscious at the same time, since this

product is way healthier than that of other chicharon products.

 25

Price

Pricing is important aspect in the business since the price of product sold

immediately impacts the revenue generated by the business. It is also an important aspect

of the production process because pricing can categorize the quality of the products

available in the market. The proponents of the business based the product price on the price

of the ingredients used. Production costs are also considered by the proponents to ensure

that the pricing is profitable and is reasonable for the entity’s target market. Listed are the

prices of Squashicharon products according to different sizes:

Table 2.8
Price

Flavor Size Price

Classic Small (50 grams) Php 30.00

Classic Medium (100 grams) Php 50.00

Classic Large (150 grams) Php 60.00

Spicy Small (50 grams) Php 35.00

Spicy Medium (100 grams) Php 55.00

Spicy Large (150 grams) Php 65.00

Table 2.8 shows the price of Squashicharon products based on the flavor and size.

The price was based on the costing illustrated on the tables below. The price range is from

Php 30 as the cheapest to Php 65 as the most expensive.

 26

Table 2.9

Costing of small-sized Classic Squashicharon (50 g)

Particulars Amount
Raw Materials
1,152 kg Squash Php 34,560.00
48 kg Garlic Powder 8,640.00
48 kg Chicken Powder 12,000.00
120 kg Cornstarch 7,200.00
24 kg Salt 720.00
48 liters Oil 3,360.00
14,400 pcs. Packaging (small) 18,000.00
14,400 pcs. Paper Bag (small) 3,600.00
Total Raw Materials Php 88,080.00
Add: Salaries (1/6 portion) 26,000.00
Total Operating Cost Php 114,080.00
Divided by: no. of packs produced in 1 year 13,824
Cost Price 8.25
Mark-up 21.75
Unit Selling Price Php 30.00

Table 2.9 presents the costing of small-sized classic Squashicharon (50 grams).

Raw materials include squash, garlic powder, chicken powder, cornstarch, salt, oil,

packaging, and paper bag. Salaries are divided in 6 portions since there are six products

available. It is assumed that there are 24 working days in a month, and that will be used as

the basis in computing the production per year.

The proponents cater in one-day production is 4 kg for small-sized classic

Squashicharon. In 1 kg or 1,000 grams of squash after the cooking process, 600 grams of

kalabasa chicharon can be produced. Thus, in 4 kg of squash, there will be a production of

48 packs a day, 1,152 packs a month, and 13,824 packs a year. To get the quantity of squash

needed for a year, 4 kg is multiplied by 24 days and the answer is also multiplied by 12

months, hence the 1,152 kg squash.

 27

Table 2.10

Costing of medium-sized Classic Squashicharon (100 g)

Particulars Amount
Raw Materials
1,152 kg Squash Php 34,560.00
48 kg Garlic Powder 8,640.00
48 kg Chicken Powder 12,000.00
120 kg Cornstarch 7,200.00
24 kg Salt 720.00
48 liters Oil 3,360.00
7,200 pcs. Packaging (medium) 12,600.00
7,200 pcs. Paper Bag (medium) 3,600.00
Total Raw Materials Php 82,680.00
Add: Salaries (1/6 portion) 26,000.00
Total Operating Cost Php 108,680.00
Divided by: no. of packs produced in 1 year 6,912
Cost Price 15.72
Mark-up 34.28
Unit Selling Price Php 50.00

Table 2.10 presents the costing of medium-sized classic Squashicharon (100

grams). Raw materials include squash, garlic powder, chicken powder, cornstarch, salt, oil,

packaging, and paper bag. Salaries are divided in 6 portions since there are six products

available. It is assumed that there are 24 working days in a month, and that will be used as

the basis in computing the production per year.

The proponents cater in one-day production is 4 kg for medium-sized classic

Squashicharon. In 1 kg or 1,000 grams of squash after the cooking process, 600 grams of

kalabasa chicharon can be produced. Thus, in 4 kg of squash, there will be a production of

24 packs a day, 576 packs a month, and 6,912 packs a year. To get the quantity of squash

needed for a year, 4 kg is multiplied by 24 days and the answer is also multiplied by 12

months, hence the 1,152 kg squash.

 28

Table 2.11

Costing of large-sized Classic Squashicharon (150 g)

Particulars Amount
Raw Materials
576 kg Squash Php 17,280.00
24 kg Garlic Powder 4,320.00
24 kg Chicken Powder 6,000.00
60 kg Cornstarch 3,600.00
12 kg Salt 360.00
24 liters Oil 1,680.00
2,400 pcs. Packaging (large) 6,600.00
2,400 pcs. Paper Bag (large) 1,800.00
Total Raw Materials Php 41,640.00
Add: Salaries (1/6 portion) 26,000.00
Total Operating Cost Php 67,640.00
Divided by: no. of packs produced in 1 year 2,304
Cost Price 29.26
Mark-up 30.74
Unit Selling Price Php 60.00

Table 2.11 presents the costing of large-sized classic Squashicharon (150 grams).

Raw materials include squash, garlic powder, chicken powder, cornstarch, salt, oil,

packaging, and paper bag. Salaries are divided in 6 portions since there are six products

available. It is assumed that there are 24 working days in a month, and that will be used as

the basis in computing the production per year.

The proponents cater in one-day production is 2 kg for large-sized classic

Squashicharon. In 1 kg or 1,000 grams of squash after the cooking process, 600 grams of

kalabasa chicharon can be produced. Thus, in 2 kg of squash, there will be a production of

8 packs a day, 192 packs a month, and 2,304 packs a year. To get the quantity of squash

needed for a year, 2 kg is multiplied by 24 days and the answer is also multiplied by 12

months, hence the 576 kg squash.

 29

Table 2.12

Costing of small-sized Spicy Squashicharon (50 g)

Particulars Amount
Raw Materials
1,152 kg Squash Php 34,560.00
48 kg Garlic Powder 8,640.00
48 kg Chicken Powder 12,000.00
48 kg Chili Powder 9,600.00
120 kg Cornstarch 7,200.00
24 kg Salt 720.00
48 liters Oil 3,360.00
14,400 pcs. Packaging (small) 18,000.00
14,400 pcs. Paper Bag (small) 3,600.00
Total Raw Materials Php 97,680.00
Add: Salaries (1/6 portion) 26,000.00
Total Operating Cost Php 123,680.00
Divided by: no. of packs produced in 1 year 13,824
Cost Price 8.95
Mark-up 26.05
Unit Selling Price Php 35.00

Table 2.12 presents the costing of small-sized spicy Squashicharon (50 grams).

Raw materials include squash, garlic powder, chicken powder, chili powder, cornstarch,

salt, oil, packaging, and paper bag. Salaries are divided in 6 portions since there are six

products available. It is assumed that there are 24 working days in a month, and that will

be used as the basis in computing the production per year.

The proponents cater in one-day production is 4 kg for small-sized spicy

Squashicharon. In 1 kg or 1,000 grams of squash after the cooking process, 600 grams of

kalabasa chicharon can be produced. Thus, in 4 kg of squash, there will be a production of

48 packs a day, 1,152 packs a month, and 13,824 packs a year. To get the quantity of squash

needed for a year, 4 kg is multiplied by 24 days and the answer is also multiplied by 12

months, hence the 1,152 kg squash.

 30

Table 2.13

Costing of medium-sized Spicy Squashicharon (100 g)

Particulars Amount
Raw Materials
1,152 kg Squash Php 34,560.00
48 kg Garlic Powder 8,640.00
48 kg Chicken Powder 12,000.00
48 kg Chili Powder 9,600.00
120 kg Cornstarch 7,200.00
24 kg Salt 720.00
48 liters Oil 3,360.00
7,200 pcs. Packaging (medium) 12,600.00
7,200 pcs. Paper Bag (medium) 3,600.00
Total Raw Materials Php 92,280.00
Add: Salaries (1/6 portion) 26,000.00
Total Operating Cost Php 118,280.00
Divided by: no. of packs produced in 1 year 6,912
Cost Price 17.11
Mark-up 37.89
Unit Selling Price Php 55.00

Table 2.13 presents the costing of medium-sized spicy Squashicharon (100 grams).

Raw materials include squash, garlic powder, chicken powder, chili powder, cornstarch,

salt, oil, packaging, and paper bag. Salaries are divided in 6 portions since there are six

products available. It is assumed that there are 24 working days in a month, and that will

be used as the basis in computing the production per year.

The proponents cater in one-day production is 4 kg for medium-sized spicy

Squashicharon. In 1 kg or 1,000 grams of squash after the cooking process, 600 grams of

kalabasa chicharon can be produced. Thus, in 4 kg of squash, there will be a production of

24 packs a day, 576 packs a month, and 6,912 packs a year. To get the quantity of squash

needed for a year, 4 kg is multiplied by 24 days and the answer is also multiplied by 12

months, hence the 1,152 kg squash.

 31

Table 2.14

Costing of large-sized Spicy Squashicharon (150 g)

Particulars Amount
Raw Materials
576 kg Squash Php 17,280.00
24 kg Garlic Powder 4,320.00
24 kg Chicken Powder 6,000.00
24 kg Chili Powder 4,800.00
60 kg Cornstarch 3,600.00
12 kg Salt 360.00
24 liters Oil 1,680.00
2,400 pcs. Packaging (large) 6,600.00
2,400 pcs. Paper Bag (large) 1,800.00
Total Raw Materials Php 46,440.00
Add: Salaries (1/6 portion) 26,000.00
Total Operating Cost Php 72,440.00
Divided by: no. of packs produced in 1 year 2,304
Cost Price 31.44
Mark-up 33.56
Unit Selling Price Php 65.00

Table 2.14 presents the costing of large-sized spicy Squashicharon (150 grams).

Raw materials include squash, garlic powder, chicken powder, chili powder, cornstarch,

salt, oil, packaging, and paper bag. Salaries are divided in 6 portions since there are six

products available. It is assumed that there are 24 working days in a month, and that will

be used as the basis in computing the production per year.

The proponents cater in one-day production is 2 kg for large-sized spicy

Squashicharon. In 1 kg or 1,000 grams of squash after the cooking process, 600 grams of

kalabasa chicharon can be produced. Thus, in 2 kg of squash, there will be a production of

8 packs a day, 192 packs a month, and 2,304 packs a year. To get the quantity of squash

needed for a year, 2 kg is multiplied by 24 days and the answer is also multiplied by 12

months, hence the 576 kg squash.

 32

Place

The business will be located at Binalonan Pangasinan. The said location is perfect

to target customers since it is near schools, the plaza, and the public market. The proponents

also choose this location because it is accessible and there are number of stalls around the

town plaza in which the business can easily distribute and supply the product.

Squashicharon will be using direct distribution, in which the product will be sold directly

to the customers.

Producer High end user

Figure 2.2. Distribution Channel

Promotion

The proponents will employ various promotional strategies to endorse the products

in the market, to make the product trend and to achieve the business desired number of

people to be engaged on the brand itself; these can be achieved through creating

promotional strategy and taking steps and efforts to be known in public. The promotional

tools that the business will be utilizing will be direct marketing and online marketing. For

the direct marketing, flyers and price lists will be printed out. This promotional strategy

aims to make not-so-techy individuals know about the business. For the online marketing,

social media accounts such as a Facebook page and a Tiktok account will be created to

promote the business through the internet as the world is now at its digital age.
 33

Direct marketing

Squashicharon will be using flyers and coupons to raise awareness and encourage

people to buy the product in Binalonan, Pangasinan. The proponents will use the flyers and

coupon before and during the promotion period. The proponents will also provide

promotional deals with discounted prices to be presented on the opening of the business.

Furthermore, the proponents will also be implementing personal selling. Personal selling

is a traditional way of promotion and it is widely regarded as the most successful means of

promoting goods since it involves direct communication between the seller and the buyer.

This technique gives each consumer with particular attention while conveying an

information about the product.

Figure 2.3. Flyers Figure 2.4. Price List

 34

Social media marketing

Nowadays, almost everyone uses at least one social media network, Facebook and

Tiktok being the most popular. By the use of these platforms, the business can easily

promote the product in a wider range of customers. Squashicharon intends to promote the

product in numerous areas inside and outside of Binalonan; one effective way to

accomplish it is through the use social media platforms such as Facebook and Tiktok. This

method is beneficial to the business because it is free and people will have an easy access

to it. This technique also helps to deliver bigger product boost by generating accounts to

share the information about the product offered through video advertisement. Furthermore,

these media will assist the business to easily respond to the comments and feedbacks of

customers regarding the quality of the product.

Figure 2.5. Facebook Page Figure 2.6. Tiktok Account

 35

SWOT Analysis

For the business to continually grow, the proponents will formulate a marketing

strategies. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis will be used to

determine the edge of the product and its competitors. This would help the business to

assess its internal and external factors that could affect to its marketability.

STRENGTHS WEAKNESSES

 Unique product  Limited Market Awareness

 Health benefits  Perishability
 Local sourcing  Distribution Challenges
 Good packaging
 Good service to customers
 Low cost ingredients
 Pioneer in the market

OPPORTUNITIES THREATS

 Product extension  Economic factors

 Health and Wellness Trends  Customers changing
 Partnerships preferences
 Online Presence  Supply disruptions (seasonal
and weather issues)
 Competitors
 Inflation
 Regulatory changes

Figure 2.7. The SWOT Matrix

Figure 2.7 depicts the strengths, weaknesses, opportunities, and threats of

Squashicharon. This aims to investigate the internal factors (strengths and weaknesses) and

external factors (opportunities and threats) that could impact the proposed business.
 36

Strengths

The strengths of Squashicharon are as follows: unique product, which sets it apart

in the market; health benefits that align with the contemporary consumer preferences; local

sourcing, which emphasizes a commitment to the community and enhances the business’

sustainability image; good packaging that complements the quality of the product; good

customer service, that enhances the overall consumer experience; low cost ingredients,

which fosters a competitive edge concerning price; and being a market pioneer, which puts

the business in a good market position. These internal factors help to further improve the

business and can be used to improve market share in the long run. Making the most out of

these strengths would foster the business, and an efficient utilization of them would

establish the brand in the market.

Weaknesses

Squashicharon, despite having a lot of strengths, has weaknesses, too. These

include limited market awareness, as the market barely knows about the product, potential

challenge in educating consumers about it and its benefits might be unfamiliar to some;

perishability, as the natural ingredients in making the product may lead to a shorter shelf

life compared to processed foods that use preservatives; and distribution challenges, as

securing widespread distribution channels for a niche product like kalabasa chicharon may

pose logistical challenges. These internal factors of the business may cause it to recess and

to underperform. Thus, addressing them requires strategic marketing to enhance

awareness, efficient inventory management to mitigate perishability risks, and optimizing

distribution channels to improve product reach and availability.

 37

Opportunities

Squashicharon, being pioneer in the market, has opportunities awaiting for it. These

are product extension, health and wellness trends, partnerships, and online presence.

Exploring product extension presents a profitable opportunity to cater a diverse preference

of consumers as well as the evolving customer needs to expand market share; riding the

wave of health and wellness trends offers a chance to align the product with consumer

preferences for healthier options; engaging into strategic partnerships with complementary

businesses can improve visibility and create synergies; and establishing a strong online

presence is crucial especially in this digital age, enabling broader market reach and

convenient customer access. These external factors could help the business achieve its

goals and objectives, or better yet reach its mission and vision.

Threats

In the field of entrepreneurship, threats are inevitable since they are beyond the

control of the business. Squashicharon has several threats including economic factors,

customer changing preferences, supply disruptions, competitors, inflation, and regulatory

changes. Economic factors such as recessions or currency fluctuations can impact financial

stability; evolving preferences of the consumers necessitate constant adaptation to stay

relevant in the market, and that would not be time and cost efficient; being seasonal of the

main ingredient of the product may disrupt supply, affecting production and distribution;

direct and indirect competitions may need strategic differentiation and innovation for

sustained success; inflation escalates operational costs, resulting in the changes of prices

which could compromise business claims; and changes in statutes introduce uncertainties,

demanding agile compliance.

 38

Chapter 3

TECHNICAL ASPECT

The technical aspect discusses the location of business, layout planning, production

and sales processes, disposal management, pre-operating management, and supplies

information. It contains the supply, tools, and equipment that will be utilized in production,

as well as a further aspect of the development of the layout, measurement, and structures

are presented to identify the business activities. Additionally, the list of supplies, tools, and

equipment are listed along with their respective costs, as well as mentions raw materials

and funding resources.

Business Location

Squashicharon will be located in Antonio Luna Street, Brgy. Poblacion Binalonan,

Pangasinan in front of Binalonan public market, and the exact location of Squashicharon

will be at CNA Square Building. The proponents choose to establish this business in

Binalonan in front of Binalonan public market because most of chicharon sellers are at the

Binalonan public market which makes it easier to introduce the Squashicharon in the

Market. The distribution of the product to the stalls, grocery stores, and to the supermarkets

of Binalonan will become easier.

There is a significant opportunity to introduce Squashicharon in the market because

of the more substantial number of establishments in Binalonan that will produce

Squashicharon that neighboring towns can also patronize because they are new to the

market, but also Binalonan has a considerable impact due to its reputation as a progressive

and competitive town.

 39

Figure 3.1 Actual Location Figure 3.2Vicinity Map

Plant Layout

In order to efficiently carry out a process for the proposed business, a plan layout

must be designed. The Squashicharon shop layout helps the proposed business view and

maximizes the design process of the shop. The proponents will start the business in Brgy.

Poblacion, Binalonan, Pangasinan. There will be a production area, warehouse area, mini

office, and a small storage exclusively for raw materials. In the production area, preparing

the raw materials, cooking and packaging the product will be performed. The warehouse

area will be used in storing the finished products, and on mini office inventory and other

business matters will be performed there. The exact measurement and area of the shop are

13.9 meters long and 18.9 meters wide, and the total area of lot is 255.76 square meters.

Figure 3.3 Plant Layout

 40

Production Process

This part outlines the Squashicharon production process and sales process, detailing

the machinery and equipment utilized, along with various steps involved in transforming

raw materials into customer-ready products and the sales strategies employed to effectively

market the products to target demographics and maximize profitability. Additionally,

product and sales specifications are depicted through a flow chart illustrating the

production process and the sales process.

Service Process Flow Chart

Preparation Slicing Washing

Smashing
Shaping and Mixing Boiling

Boiling Cooling Cutting

Flavoring Frying Drying

Packaging Marketing

Figure 3.4 Service Process Flow Chart

 41

Production process Steps

Step 1: Preparation of all the ingredients and utensils needed.

Step 2: Remove the skin and seeds of kalabasa and slice it in a square.

Step 3: Wash and clean the slices of kalabasa thoroughly.

Step 4: Boil the squash until tender. Step

Step 5: Smash the squash and mix the ingredients (chicken powder, garlic powder, salt)

and add water if needed.

Step 6: Gradually mix cornstarch until it becomes a dough.

Step 7: Knead the dough and shape it.

Step 8: Boil for another 20 minutes in low heat.

Step 9: Let it cool and refrigerate/chill overnight.

Step 10: Cut it as thin as possible.

Step 11: Sundry the cut pieces for 2 days or until completely dry.

Step 12: Fry in low heat.

Step 13: Strain the kalabasa chicharon to remove excess oil.

Step 14: Add chili powder for the spicy variant.

Step 15: Assemble the kalabasa chicharon into the packaging.

Step 16: The finished product.

 42

Order Preparation

Sales
Ship
Invoice

Final
Destination

Figure 3.5. Sales/Revenue Flowchart

Figure 3.5 illustrates the sales/revenue flowchart. The process starts with

customers’ orders. Here, they can personally place their orders or virtually do it via social

media platforms. After that, the preparation of their orders will proceed. The release of

sales invoice follows, where they can pay through cash or cards. When the payment is

settled, the shipment of the orders will commence, and the customers will just have to wait

until the parcel arrives at its final destination—the address that the customers provided.
 43

Disposal Management

Disposal management is the collection, transportation, processing, recycling or

disposal and monitoring of waste materials. The safety of every individual involved in the

business, including customers and staff, depends on proper disposal. To prevent product

contamination, the business must seek to maintain discipline and cleanliness. A business

that has a tidy and well-organized workspace will bring in customers. Trash Bins will be

labeled “biodegradable," "non-biodegradable," and "recyclable." Biodegradable materials

will be disposed of in garbage bags and carried by a roving truck. However, recyclable,

and non-biodegradable items must be sold to junk shops.

Garbage collectors will find it easier to gather waste if trash cans are provided for

them to fill with bags. Furthermore, frequent cleaning of the trash cans will prevent an

unpleasant smell within the store. After the product is used, the equipment used in its

manufacture will also be cleaned. That is why in these ways, it will benefit the company to

look properly for consumers and maintain tidy surroundings, which will enhance the store's

atmosphere and provide a more comfortable buying experience. The environment and

safety for everyone must be maintained in disposing of waste properly.

Pre-Operating Activities

The figure 3.6 outlines the systematic process for determining if it is feasible to

create and carry out the proposed the business. Since the proposed business involves

employing staff, purchasing machinery and equipment, furnishings, and fixtures, as well

as business registration, it takes the longest to implement.

 44

TASKS Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Feasibility
Study

Raise funds

Choosing of
site
Finding
suppliers
Completion of
legal
Requirements
Purchase of
Materials
Purchase of
Supplies and
Equipment
Recruitment
and Selection

Advertising
Start of
Business
Operation
Figure 3.6. Project Schedule Gantt chart

Figure 3.6 presents the Gantt chart, where the pre-operating activities are listed in

a chronological order. First, a feasibility study will be conducted for 3 months (January to

March) to assess the viability of the business. Second, from April to May, the raising of

funds to will be done. Third, choosing of site where the business will be located and finding

suppliers will be administered in June. Fourth, the completion of legal requirements and

the purchase of materials, supplies, and equipment to be used will be accomplished by July.

Fifth, the recruitment and selection process will range from August to September. Sixth,

advertisement will commence in October and will temporarily end in November. Finally,

when everything is completely prepared, the business will start its operation by the end of

December.
 45

CONSUMABLES

Raw materials shown below that would be needed.

Table 3.1
Raw Materials

Monthly Monthly
Description Unit Cost Annual Cost
Requirements Cost

Squash 480 kg 30 pesos per kg ₱ 14,400.00 ₱ 172,800.00

Garlic Powder 20 kg 180 pesos per kg 3,600.00 43,200.00

Chili Powder 10 kg 200 pesos per kg 2,000.00 24,000.00

Chicken Powder 20 kg 250 pesos per kg 5,000.00 60,000.00

Corn starch 50 kg 60 pesos per kg 3,000.00 36,000.00

Salt 10 kg 30 pesos per kg 300.00 3,600.00

Oil 20 liters 70 pesos per liter 1,400.00 16,800.00

TOTAL ₱29,700.00 ₱356,400.00

 46

Other Supplies that are shown below will be needed for cleaning purposes.

Table 3.2
Cleaning Supplies

Items Description Quantity Price Total Cost

Used to put trash

3 pcs. ₱80.00 ₱240.00
and garbage
Trash Bin

Used maintaining

the cleanliness in 2 pcs. 100.00 200.00

Soft Broom the area

Used maintaining

the cleanliness in 2 pcs. 30.00 60.00

Hard broom
the are

A cleaning

material used with 2 pcs. 39.00 78.00

Dustpan
broom to clean

Used to contain
7 packs 79.00 553.00
Trash Bags solid waste
 47

Used to clean ash

10 pcs. 20.00 200.00
and dirty things
Rugs

Uses for cleaning

3 pcs. 50.00 150.00
Dishwashing
dishes
Liquid

Used to clean or
5 pcs. 40.00 200.00
Sponge wash dishes

Used to clean dust 4 pcs. 40.00 160.00

Microfiber duster

Used to disinfect
2 bottles 80.00 160.00
hands
Alcohol

TOTAL ₱618.00 ₱2,241.00

 48

List of office supplies was shown below that would be needed for keeping or

tracking record of sales and making receipts to the customers.

Table 3.3
Office Supplies

Items Description Quantity Price Total Cost

Used to keep
2 pc 65.00 130.00
Records of sales
Record Book

Used in writing
10 pcs 7.00 70.00
records
Ball pens

Used to list of
4 pads 35.00 140.00
order or sale
Receipt

Used to perform
2 pcs 109.00 218.00
Calculator calculations

Used to secure
2 pcs 45.00 90.00
Stapler documents

Total ₱261.00 ₱648.00

 49

Table 3.4
Other Consumable Materials

Items Description Supplier Quantity Price Total Cost

₱1.25 ₱3,000.00
Small(2,400pcs)

Packaging
Used to pack
Hub, 1.75 2,100.00
Plastic the products Medium(1,200pcs)
packaging Shopee

Large(400pcs) 2.75 1,100.00

₱0.25 ₱600.00
Small(2,400pcs)

Used to put Best Buy

purchased PHILS, 0.50 600.00

Medium(1,200pcs)
Paper bags products Shopee

Large(400pcs) 0.75 300.00

Total ₱7,700.00
 50

NON – CONSUMABLES

List of equipment that would be needed in the production process.

Table 3.5
List of Equipment

Items Description Quantity Price Total Cost

Used in frying 2 pcs ₱1,299.00 ₱2,598.00

Deep Fryer
Used in
preparing
ingredients and
2 pcs 2,249.00 4,498.00
in assembling
finished
Food Prep Table products
Uses in
washing tools 1 pc 1,399.00 1,399.00
and dishes
Sink

Used in storing
1 pc 2,350.00 2,350.00
kitchen wares
Commercial shelves

Used in storing
1pc 12,999.00 12,999.00
frozen products
Freezer
Used in
dehydrating 1pc 7,500.00 7,500.00
products
Dehydrator Machine

Used in slicing
1pc 6,500.00 6,500.00
products
Slicer Machine
Total ₱34,296.00 ₱37,844.00
 51

Table 3.6
Other Materials

Total
Items Description Quantity Supplier Price
Cost

Bonus
Used in
supermarket
preparing
12 pcs Urdaneta ₱20.00 ₱240.0
ingredients and
Mixing bowl City
in mixing
Pangasinan

Bonus
Used in
Supermarket
scooping
30 pcs Urdaneta 15.00 450.00
ingredients and
City
spoon in tasting
Pangasinan

Tongs Bonus
supermarket
Used in
6 pcs Urdaneta 30.00 180.00
holding food
City
Pangasinan

Used to blend
ingredients Bonus
together supermarket
quickly or to 10 pcs Urdaneta 28.00 280.00
incorporate air City
whisk into Pangasinan
ingredients

Bonus
scissor supermarket
Used in cutting
3 pcs Urdaneta 115.00 345.00
ingredients
City
Pangasinan
 52

Used in wiping Bonus

off and supermarket
cleaning 10 pcs Urdaneta 10.00 100.00
kitchen City
utensils Pangasinan
Towel

Bonus
supermarket
Used for safety 1 pc Urdaneta 1,500.00 1,500.00
Fire City
extinguisher Pangasinan

Bonus
supermarket
Used to cover
12 pcs Urdaneta 100.00 1,200.00
the clothes
Apron City
Pangasinan

Bonus
supermarket
Used to cover
12 pcs Urdaneta 30.00 360.00
the hair
Hair net City
Pangasinan

Bonus
Used in
supermarket
cleaning tables
15 pcs Urdaneta 15.00 225.00
or to wipe
Rags City
dirt’s
Pangasinan

TOTAL ₱1,863.00 ₱4,880.00

 53

Furniture and Fixture will be used for keeping the product or documents organized.

Table 3.7
Furniture and Fixtures

Items Description Quantity Supplier Price Total Cost

Addessa
Used for Light of Urdaneta
10 pcs ₱155.00 ₱1,550.00
light bulb the shop City
Pangasinan

Addessa
Used to have air
Urdaneta
ventilation in the 4 pcs 1,149.00 4,596.00
City
Ceiling fan shop
Pangasinan

Total ₱1,304.00 ₱6,146.00

Utilities cover the electricity and water bills consumed every month necessary for

the business operations.

Table 3.8
Utility Expenses

Description Monthly Annually

Electricity ₱2,300.00 ₱27,600.00

Water 1.200.00 14,400.00

Total ₱3,500.00 ₱42,000.00

 54

Table 3.9

Other Expenses
Description Monthly Annually

Rent Expense ₱10,000.00 ₱120,000.00

Total 10,000.00 120,000.00

Table 3.10
Taxes and Licenses

Particulars Total Cost

Business Permit ₱ 1,500.00

Barangay Clearance 50.00

BIR( Business Registration) 5,000.00

Mayor's Permit 500.00

Sanitary Permit 500.00

Fire Safety Inspection Certificate 500.00

TOTAL ₱8,050.00
 55

Suppliers’ Information

These are the shops and farms where the Squashicharon buy the ingredients for

their product.

Table 3.10

Suppliers Information

SUPPLIERS
MATERIALS SUPPLIERS NAME
LOCATION

Squash JSC Farm San Ildefonso, Bulacan

Cornstarch MSCS PrimeGoods, Inc. Mandaluyong, Metro

Manila

Garlic Powder 4k spices and mixes, Valenzuela City, Manila

Shopee (via: COD Shopee)

Salt JM Salt Manufacturer Infanta, Pangasinan

Water SUPERB Purified Water Binalonan, Pangasinan

Refilling Station

Paprika Powder 4k spices and mixes, Valenzuela City, Manila

Shopee (via: COD Shopee)

Vegetable Oil Spring Pure Vegetable Quezon City, Metro Manila

Cooking Oil

Chicken Powder 4k spices and mixes, Valenzuela City, Manila

Shopee (via: COD Shopee)

Packaging Packaging Depot Manila Quezon City, Metro Manila

 56

Chapter 4

ORGANIZATION AND MANAGEMENT ASPECT

In this chapter, the organization structure of the business will be shown. This

includes the designation of authority and their respective duties and responsibilities. The

proposed business project would use a corporate structure that will assist the employees

and/or managers in integrating their skills and ambition for growth.

Form of Organization

The Squashicharon is classified as a general partnership form of business. In which,

partners pool money, skills, and other resources, and share profit and loss in accordance

with the terms of the partnership agreement. The partners will have the same amount of

capital to invest in the business and will have to share the profit and loss equally.

Vision

Squashicharon is the best chicharon-selling business nationwide known to provide a

healthier version of chicharon.

Mission

Squashicharon aims to accommodate a diverse preference of food through introducing

a healthier version of chicharon.

Goals

 To have a good market position.

 To expand the market worldwide.

 To provide job opportunities in the community.

 To establish a good brand.

 57

Objectives

 To have an 80% share in the market.

 To investigate franchising for global expansion.

 To hire unemployed citizens within the community.

 To promote the product through conventional marketing and social media

promotion.

Figure 4.1. Organizational Chart

Figure 4.1 illustrates the organizational chart of Squashicharon. The chart includes

finance personnel, human resource personnel, marketing personnel, and operations

personnel at the top-level positions. HR staff, marketing staff, and a cook constitute the

lower-level positions.
 58

Qualifications, Duties, and Responsibilities of Employees

Every business has its different personnel with different qualifications, duties, and

responsibilities. The general partners are delegated to the positions where they are

proficient at. It does not mean, however, that one is superior to another; they just have been

positioned based on their skills and talents.

Finance Personnel

Qualifications:

 Bachelor’s degree in Finance, Accounting, or a related program.

 Strong understanding of financial principles and practices.

 Proficiency in financial software and spreadsheet applications.

 Analytical and problem-solving skills.

 Attention to detail and accuracy in financial reporting.

 Knowledgeable of relevant laws, regulations, and compliance standards.

 Effective communication and interpersonal skills.

 Understanding of economic and financial markets.

Duties and Responsibilities

 Evaluate financial data to provide insights and support decision-making.

 Develop, monitor, and analyze budgets to ensure financial goals are met.

 Predict future financial trends based on historical data and market analysis.

 Prepare financial reports for management, stakeholders, and regulatory

authorities.

 Monitor and control cash flow to optimize liquidity.

 Stay informed about financial laws and regulations to ensure adherence.

 59

Human Resource Personnel

Qualifications

 Bachelor’s degree in Human Resources, Business Administration, or a related

program.

 Strong written and verbal communication skills.

 Problem-solving skills.

 Familiar with employment laws and regulations.

 Experience in sourcing, interviewing, and selecting candidates.

 Can manage employee relations, address conflicts, and foster a positive

workplace.

 Organizational skills.

 Technology proficient.

Duties and Responsibilities

 Source, interview, and hire candidates that align with the organization’s needs.

 Facilitate the orientation process for new hires, ensuring a smooth integration.

 Identify and address training needs, and organize professional development

programs.

 Implement performance appraisal systems and provide feedback to enhance

employee performance.

 Develop, update, and enforce HR policies and procedures.

 Administer employee benefits and manage compensation structures.

 Mediate and resolve disputes between employees to maintain a harmonious

workplace.
 60

Marketing Personnel

Qualifications

 Bachelor’s degree in Marketing, Business Administration, or a related program.

 Able to analyze market trends, consumer behavior, and competitive landscape.

 Able to develop innovative and effective marketing strategies.

 Strong written and verbal communication skills.

 Proficient in digital marketing channels, including social media and online

advertising.

 Data analysis skills.

 Able to understand and anticipate customer needs.

Duties and Responsibilities

 Conduct research to understand market trends, consumer preferences, and

competitors.

 Plan and execute marketing campaigns to promote products or services.

 Generate compelling content for various marketing channels, including websites,

social media, and emails.

 Maintain and enhance the organization’s brand image.

 Monitor and analyze marketing performance metrics, adjusting strategies as

needed.

 Organize and participate in events to increase brand visibility and engagement.

 Manage customer interactions, gather feedback, and improve customer

satisfaction.
 61

Operations Personnel

Qualifications

 Bachelor’s degree in Operations Management, Business Administration, or a

related program.

 Able to analyze processes, identify inefficiencies, and propose improvements.

 Proficient in project planning, execution, and monitoring.

 Understanding of supply chain management and logistic principles.

 Problem-solving skills.

 Meticulous attention to detail to ensure accuracy in operational processes.

 Communication skills.

 Proficient in administering machineries.

 Proficient in implementing quality control.

Duties and Responsibilities

 Identify and implement improvements in operational processes for increased

efficiency.

 Oversee and optimize the supply chain, ensuring timely and cost-effective

delivery.

 Monitor and manage inventory levels to meet demand while minimizing excess.

 Implement and maintain quality control processes to ensure products meet

standards.

 Efficiently allocate resources to meet operational demands and objectives.

 Identify and mitigate operational risks to ensure smooth business operations.

 62

HR Staff

Qualifications

 Bachelor’s degree in Human Resources, Business Administration, or a related

program.

 Strong written and verbal communication skills.

 Problem-solving skills.

 Familiar with employment laws and regulations.

 Experience in sourcing, interviewing, and selecting candidates.

 Can manage employee relations, address conflicts, and foster a positive

workplace.

 Organizational skills.

 Technology proficient.

Duties and Responsibilities

 Job posting.

 Interviewing.

 Hiring.

Marketing Staff

Qualifications

 Bachelor’s degree in Marketing, Business Administration, or a related program.

 Able to analyze market trends, consumer behavior, and competitive landscape.

 Strong written and verbal communication skills.

 Proficient in digital marketing channels, including social media and online

advertising.
 63

Duties and Responsibilities

 Field marketing.

 Social media administration.

 Event promotion.

 Marketing research contributor.

 Marketing data analyst.

Cook

Qualifications

 Proficient at cooking.

 Knife skills.

 Knowledgeable in variety of dishes, ingredients, and cooking techniques.

 Time management skills.

 Has a good taste buds.

Duties and Responsibilities

 Prepare and cook dishes according to established recipes and standards.

 Responsible for maintaining cleanliness and sanitation in the kitchen area,

including equipment, utensils, and work surfaces.

 Responsible for monitoring food supplies, order necessary ingredients and kitchen

supplies, and keep accurate inventory records to prevent shortages or waste.

 Contribute to the development of recipes and suggest to create variations.

 Inspect and ensure the freshness and quality of ingredients.

 Monitor cooking times and temperatures to achieve desired results.

 Follow food safety and sanitation guidelines.

 64

Table 4.1

Working Schedule

Number of Duty
Position Operating Hours Day Off
Days per Week
Finance Personnel 6 days 8:00 AM–5:00 PM Saturday
Human Resource Saturday
6 days 8:00 AM–5:00 PM
Personnel
Marketing 8:00 AM–5:00 PM Saturday
6 days
Personnel
Operations 8:00 AM–5:00 PM Saturday
6 days
Personnel
HR Staff 6 days 8:00 AM–5:00 PM Saturday
Marketing Staff 6 days 8:00 AM–5:00 PM Saturday
Cook 6 days 8:00 AM–5:00 PM Saturday

Table 4.1 presents the working schedule of the partners. The business will be

operating from Sunday until Friday; that is six days per week, hence, the day off on

Saturday. They will be working from 8:00 AM–5:00 PM; that is eight hours a day.

Table 4.2

Compensation Scheme

Position Hourly Daily Weekly Monthly Annually

Finance
₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
Personnel
Human
Resource ₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
Personnel
Marketing
₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
Personnel
Operations
₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
Personnel
HR Staff ₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
Marketing
₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
Staff
Cook ₱67.71 ₱541.68 ₱3,250.08 ₱13,000 ₱156,000
 65

Table 4.2 shows the compensation scheme of the partners in an hourly, daily,

weekly, monthly, and annual basis. They will be compensated equally at ₱67.71 per hour;

that is ₱541.68 a day, ₱3,250.08 a week, ₱13,000 a month, or ₱156,000 a year.

Table 4.3
Business Policies

Business Policies Sanctions

1st offense: verbal warning

No liquor/smoking inside the workplace 2nd offense: written warning
3rd offense: suspension without pay
1st offense: verbal warning
No absent without leave 2nd offense: suspension without pay
3rd offense: termination
1st offense: verbal warning
No tardiness 2nd offense: suspension without pay
3rd offense: termination
1st offense: verbal warning
No bullying 2nd offense: suspension without pay
3rd offense: termination

Theft is strictly prohibited. Immediate termination

Table 4.3 depicts the business policies of Squashicharon and the equivalent

sanctions when violated. Drinking liquor and smoking inside the workplace will have a

sanction of verbal warning for the 1st offense and a suspension without pay for the 3rd

offense. Absent without leave, tardiness, and bullying will have verbal warning for the first

offense and termination of contract for the 3rd offense. Theft will have the heaviest sanction

of immediate termination.