Squarrot Sample Business Plan

CHAPTER I
INDUSTRY AND COMPETITIVE ANALYSIS
Industry Structure and Performance
The proposed product, ‘Squarrot Muffins’, falls under the food industry,
specifically, bread and pastry industry. According to Euromonitor (2017), despite
growing at a slow pace, baked goods still continues to offer growth opportunities for the
growing markets in the world. As a response to people’s demands, trends and innovations
in bread and pastries industry have been produced and created making the industry one of
biggest contributors to the global economic growth. According to a study conducted by
Global Industry Analysts, bread and pastry industry is already a known industry in North
America and Western Europe, and as the consumers from potential markets from other
continents have adapted the western lifestyle, it included western eating habits which
prioritizes bread as their main food. As for the Philippines, innovations and trends in the
baked goods industry remains vital to companies to address Filipinos’ demands. The
development of new products is directed either towards creating something healthier or
something better tasting, and it is not limited to only pastries or cakes, even the famous
‘pandesal’ has its own varieties. The top performing companies in baked goods industry
in the Philippines are Gardenia Philippines Inc., Pan De Manila and Monde Nissin Corp.,
each employing their own marketing strategies to retain their standing. Innovation is the
main key of the major players of this industry to sustain and improve their global and
national value share. The companies address people’s needs and create products that are
healthier and at the same time would benefit the company and the society.
Industry Outlook
As consumers’ lifestyle keeps on changing, demand for different bread and
pastries product will also change as well, alarming the manufacturing companies to make
and innovate products to meet consumer needs. According to Euromonitor (2017), bread
and pastry industry leading the 2013 category with 48% value share sustained its lead
having 47% value share in the next year. From this result, it can be inferred that bread
and pastry is now a wide known industry in the country. A projected CAGR value of 2%
is expected in this industry which determines the possible growth of baked goods in the
market, this is due to the rapid population growth which results to the continuous
growing of depmands and needs of people. Bread and pastry products which are ready for
consumption are one of the most demanded foods of Filipinos, therefore causing the
growth rate of the industry to increase rapidly. Based from these facts, there is a positive
outlook on the bread and pastry industry, especially that the companies under this
industry are looking into merging taste and health through adding fiber, proteins and
vegetable to the main product, revealing their concern towards the consumers of the
products. There is also an expected growth in the number of consumers whose demands
for pastries are being driven by indulgence and flavor innovation, with affordability
remaining a key concern.
COMPETITIVE ANALYSIS
The analysis seeks to identify the strengths and weaknesses of its competitors to
determine their SWOT analysis and to further improve the business. Direct competitors
are companies or businesses that have the same products and are targeting the same
market. As for the bread and pastry industry, bakeries or pastry shops can be direct
competitors especially if the business ventures are offering identical products to same
target market. As for SRM Manufacturing, its possible direct competitors are Junil’s
Bakeshop and Olivarez Plaza Bakery, all offering the same products of same prices but
with different quality and targeting the same market. Indirect competitors are business
that can have the same product but of different market or businesses that have the same
market but different products. In bread and pastry industry, baked goods, breakfast cereal
and biscuit manufacturers may have the same market but of different products. As for
SRM Manufacturing, Goldilocks and Hot Malunggay Pandesal are its indirect
competitors.
Competitor 2
Competitor 1 Competitor 3 Competitor 4
Hot Malunggay
Junil’s Bakeshop Olivarez Bakery Goldilocks
Pandesal
Pandesal/ Baked Bread and
Product Line Baked Goods Bread and pastry
Goods pastry
Muffins- 32
Pricing Starts in 2 pesos 2 pesos Starts in 2 pesos
pesos
Location/
Number of
Olivarez Plaza Olivarez Plaza Olivarez Plaza Olivarez Plaze
Branches
Television
Advertisements/
Advertising and
N/A N/A N/A Radio
Promotions
Advertisements
Financial
Condition Stable Stable Stable Stable
Table 1: Competitors of Squarrot Muffins

CHAPTER II
BUSINESS DESCRIPTION
Background of the Company
Today, numerous people especially kids are strongly influenced by the power of
the uprising technologies that some would prefer to look at their gadgets rather than
eating vegetables. According to Hippokratia Medical Journal, excessive use of computers
and gadgets can lead to eye discomfort, fatigue, blurred vision and headaches, poor
eyesight, dry eyes and other symptoms of eyestrain, which is now a widespread problem.
Along with this, Yngve et al. (2005) stressed that children eat less fruit and vegetables
than recommended as influenced by their eating behaviors, the taste of the fruits and
vegetables and the culture of the society where they belong. Since it is more appealing
and enjoyable to hold gadgets and other forms of technology than holding fruit and
vegetables that are not really appetizing to eat, one’s health is therefore sacrificed-this has
been one of the problems that is still unsolved at the present time.
The SRM Manufacturing is created by eight (8) proponents named Audrey
Beatrice R. Monsobre, Carol Anne P. Mondigo, Cherry Lyn Amor, Jewel Ann M. Gana,
Jhon Carlo Aborquez, John Symon Salvani, Kelvinn U. Alcedo and Nicole Amon, to
address the problem stated above. The proponents came into an idea of transforming
carrots and squash into a totally innovative yet satisfying and healthy muffins which
would catch people’s bread-enthusiastic heart. According to Dr. Ivana Kim, a professor
of ophthalmology at Harvard Medical School, carrots and squash both have Vitamins A,
C and E, also known as “Eye Vitamins”, which are natural treatments for macular
degeneration and cataracts. Having the main problem and these facts, the proponents
have decided to turn carrots and squash into muffins which is known for being one of
people’s favorite snacks. The will be called ‘Sqaurrot Muffins’ which could be a great
and affordable solution to the problem of the world today.
Mission Statement
The SRM Manufacturing aims to provide people much healthier products which
involves transforming vegetable into a very innovative steamed good. The company also
aims to give the masses new taste and new experiences of the common consumed foods.
Vision Statement
The vision of SRM Manufacturing is to be known globally and to be one of the
top performing companies in bread pastry industry.
Nature and Activity of the Business
SRM Manufacturing is a type of manufacturing business. SRM Manufacturing
offers manufactured innovative products specifically, steamed goods made of vegetables.
The company manufactures muffins from several raw materials with the main ingredient
carrots and squash.
Primary Product or Service
SRM Manufacturing introduces a new product that offers benefits to its
consumers. From the old and common muffin recipe, SRM creates an innovated version,
which is healthier and tastier. The product is called the Squarrot Muffin which is made of
squash and carrots.
Unique Selling Proposition
Aside from incorporating mathematical terms in ‘Squarrot Muffins’, the
proponents of this business also prioritized the science of eye health, the product is made
especially for people who experiences symptoms of eyestrain. As compared to other
variations of muffins, this product has less cost of production for the product only
includes squash and carrots that are among the cheapest vegetables sold in the market,
yet, among the healthiest. The business focuses not only on gaining profits but also
providing the society its needs in the most innovative way. The health benefits of the
product are much more than the health benefits of common and known muffins in the
world. Along with this, this product is the best possible solution to the main wide-spread
problem of the world. Unlike common baked goods which prioritizes the luxuries and
demands of the customers to benefit the company, Squarrot muffins brings a mutual
benefit to the customers, the company, and the society at large.
Customers
The expected customers of SRM Manufacturing include people with ages ranging
from seven (7) and above. The product is perfect for customers who are having a sweet
tooth but couldn't sacrifice their health for this little pleasure. The product also suits the
picky children’s taste buds so they could enjoy a sweet treat while they snack on
something that is good for their health.

CHAPTER III
PRODUCTION/OPERATIONS PLAN
Technical Description of the Product
Each Squarrot Muffin contains two (2) grams of squash, two (2) grams of carrots,
seven and seventeen-twentieths (7 𝟏𝟕⁄

𝟐𝟎 ) grams of flour, three and a half (3 ½) grams of
cheese, seven and seventeen-twentieths (7 𝟏𝟕⁄

𝟐𝟎 ) grams of sugar, four and one-fourth (4
¼) grams of egg white and egg yolk, seven-tenths (7⁄10 ) gram of baking powder, one and
four-fifths (1 4⁄5 ) grams of butter and ten and a half (10 ½) milliliters of evaporated milk.
A squarrot muffin has a top-diameter of six (6) centimeters, a height of four (4)
centimeters, and a base-diameter of four and a half (4 ½) centimeters as its dimensions. A
regular sized squarrot muffin approximately weighs twenty-five 25 grams.
Height
Top-diameter
Base-diameter
Figure 3.1: Regular-sized Squarrot Muffin

Each mini Squarrot Mufffin contains one (1) gram of squash, one (1) gram of
carrots, four (4) grams of flour, one and four-fifths (1 4⁄ ) grams of cheese, four (4)
5
grams of sugar, two and one-eight (2 1⁄ ) grams of egg white and egg yolk, two-fifths
8
(2⁄5 ) gram of baking powder, one and one (1) gram butter and five and one-fourth (5 ¼)
milliliters of evaporated milk, forming a mini cupcake with a dimension of four and a
half (4 ½) centimeters for its top-diameter, three and a half (3 ½) centimeters for its base-
diameter and four (3) centimeters for its height. A mini squarrot muffin approximately
weighs fifteen (15) grams.
Height
Top-diameter
Base-diameter
Figure 3.2: Mini Squarrot Muffin

Product Process
Process A: Preparing the ingredients
Prepare 550 grams of flour, 550 grams of sugar, 250 grams of grated cheese, 300
grams of medium sized eggs, 50 grams of baking powder, 125 grams of butter and 370
milliliters of evaporated milk.
Process B: Preparing the squash
Peel the squash and measure 150 grams, cut it into small pieces. Boil the pieces of
squash and wait until it becomes soft, mash the squash afterwards.
Process C: Preparing the carrots
Peel the carrots and measure 100 grams. Grate the carrot and blanch it upon
grating.
Process D: Combine the dry ingredients
Combine 550 grams of flour, 550 grams of sugar and 50 grams of baking powder
all together until well-mixed.
Process E: Mix the wet ingredients
Mix the mashed squash, blanched carrots, 125 grams of butter, 300 grams of eggs,
250 grams of cheese and 370 milliliters of evaporated milk all together until it becomes a
soft, yellow-colored mixture.
Process F: Combine all the ingredients
Slowly combine the two mixtures using the cut-and-fold method. Continuously
mix the wet and dry ingredients until it becomes a sticky, yellowish mixture. While
mixing, let the water in the steamer boil which would usually take more or less 5 minutes.
Process G: Pour the mixture into the molds
Pour 1234353 oz of the mixture to each mini muffin molds and 324244 oz to the
regular sized muffin molds. The mixture can fill up to 100 mini muffin molds or 50
regular sized muffin molds. After filling the molds, sprinkle t133254 grams of chocolate
chips into each mold and put it in the steamer.
Process H: Steaming the muffin
Let the mixture to steam in high heat. After 15 minutes, turn the stove into low
heat and let it steam for another 10 minutes.
Process I: Packaging and Quality Control
Let the steamed muffins cool for about 5 minutes before filling the boxes. Make
sure that all the muffins are of the same size and same weight before putting it into the
boxes.
Production Process
Process Process Name Precedence

A Preparing the ingredients
B Preparing the squash A
C Preparing the carrots A
D Combine the dry ingredients A
E Combine wet ingredients A,B,C
F Combine all ingredients A,B,C,D,E
G Pour the mixture into the molds A,B,C,D,E,F
H Steaming the muffins A,B,C,D,E,F,G
I Packaging and Quality Control A,B,C,D,E,F,G,H
Table 3.1: Production Process
Production Process Flowchart
Figure 3.3: Production Process Flowchart
Tools, Machineries and Equipment
Tools, Machineries and

Sources Prices
Equipment
Mondigo’s Residence
Steamer
Mendez, Cavite
Mondigo’s Residence
Knife
Mendez, Cavite
Mendez Public Market
Grater 50.00
Mendez, Cavite
Chefs and Bakers
Cupcake Molds (regular) 3.00 per piece
Ayala Malls Serin, Tagaytay City
Chefs and Bakers
Cupcake Molds (mini) 2.10 per piece
Novo Jeans and Shirts
Measuring Cups 50.00
Tagaytay City, Cavite
Novo Jeans and Shits
Mixing Bowl 30.00
Sula-Gas Retailer
Liquefied Petroleum Gas 580.00
Mendez, Cavite
Table 3.2: Tools, Machineries and Equipment
The tools and equipment used in making the product are steamer, knife, grater,
cupcake mold, measuring cups and mixing bowl. The steamer and knife were both
available in one of the proponent’s residence and were used in the product-making
instead of buying new ones. Grater was purchased at Mendez Public Market for it offers
cheaper yet durable grater. Twenty-four (24) regular-sized cupcake molds and thirty (30)
small/mini-sized cupcake molds were purchased at Chefs and Bakers, Ayala Malls Serin,
Tagaytay City for the store is well-known for offering affordable but durable baking
needs. Measuring cups and mixing bowl were purchased at Novo Jeans and Shirt,
Tagaytay City Branch, for the products of the store were known to have a good quality
but is of a lower price. Liquefied Petroleum Gas (LPG) was purchased at Sula-Gas
Retailer in Mendez, Cavite for the retail store offers a gas at a lower price as compared to
other stores.
Raw Materials and Supplies
Raw Materials and

Sources Price
Supplies
40.00/kilo
Mendez, Cavite
Squash
Tagaytay Public Market
50.00/kilo
Tagayaty City, Cavite
80.00/kilo
Mendez, Cavite
Carrots
Tagaytay Public Market
90.00/kilo
Chefs and Bakers 55.00
Cake Flour (1 kilo)
Walter Mart 90.00
Walter Mart 48.00

Sugar (1 kilo)
Sunrise Grocery Store
Mendez, Cavite 50.00
Walter Mart
90.00
Cheese (500g)
100.00
Mendez, Cavite
Walter Mart
Baking Powder (50 g) 15.00
Evaporated Milk Walter Mart
24.50
(370 mL) Ayala Malls Serin, Tagaytay City
Eggs (medium-sized) 6.00
Mendez, Cavite
Chefs and Bakers
Butter 60.00/bar
Chefs and Bakers
Cupcake Liner (3 oz) 66.00/ 120 pieces
Chefs and Bakers
Cupcake Liner (1 oz) 36.00/ 100 pieces
Aluminum Foil Chefs and Bakers
34.00
(8 meters) Ayala Malls Serin, Tagaytay City
Chefs and Bakers
Treat Bags 120.00/ 20 pieces
Chefs and Bakers
Cupcake Holder 12.00/ 5 pieces
Chefs and Bakers
Cupcake Tray 48.50/ 5 pieces
Table 3.3: Raw Materials and Supplies
The raw materials and supplies that were used are squash, carrots, cake flour,
baking powder, sugar, evaporated milk, eggs, butter, cheese, cupcake liners and
aluminum foil. Cake flour, butter, cupcake liners, aluminum foil, cupcake holders,
cupcake trays and treat bags were all purchased at Chefs and Bakers in Ayala Malls
Serin, Tagaytay City, for the store offers good quality products all for a cheaper price.
Sugar, cheese, baking powder and evaporated milk were all purchased from Walter Mart,
the supermarket offers products of the same quality and brand as others but at a more
affordable price. Mendez Public Market is more accessible for the proponents as
compared to other markets and sells squash and carrots at a lower price, which explains
why it was chosen to be the business’ supplier. Eggs were purchased from Sunrise
Grocery Store because it is the nearest and cheapest possible supplier for eggs.
Time and Motion Study
According to Wikipedia, time and motion study is a business technique
combining Time Study by Frederick Taylor and the Motion Study of Frank and Lilian
Gilbreth that is commonly used by businesspeople to measure productivity standards of
employees, to eliminate wasteful motion and to measure the exact time used in doing
correct methods efficiently and effectively. This business technique is done by measuring
the time used in the whole production process and doing this for several trials, aiming to
determine the best and fastest way to execute the production process correctly and
efficiently. As for the Squarrot Muffin Manufacturing, the business technique is done to
identify the shortest possible time to finish all the production processes to maximize the
production time per day. It can be inferred from the Time and Motion Study results that
the last trial is the best trial amongst all, requiring only 2435 minutes to produce sixty
(60) mini cupcakes and forty (40) regular-sized cupcakes.

Production Process:
A. Preparing the ingredients
B. Preparing the squash
C. Preparing the carrots
D. Combine the dry ingredients
E. Mix the wet ingredients
F. Combine all the ingredients
G. Pour the mixture into the molds
H. Steaming the muffin
I. Packaging and Quality Control
Time and Motion Study Table
Process Trial 1 Trial 2 Trial 3

2 minutes:30
A 5 minutes 3 minutes
seconds
B 4 minutes 3 minutes 3 minutes
C 2 minutes 2 minutes 2 minutes
D 1 minute 1 minute 1 minute
E 1 minute:30 seconds 1 minute 1 minute
2 minutes:30
F 2 minutes 2 minutes
seconds
G 3 minutes 4 minutes 5 minutes
H 25 minutes 20 minutes 15 minutes
I 10 minutes 8 minutes 8 minutes
Table 3.4: Time and Motion Study Results

Plant Capacity
Process Trial 1 Trial 2 Trial 3

A 5 minutes 3 minutes 2 minutes:30 seconds
B 4 minutes 3 minutes 3 minutes
C 2 minutes 2 minutes 2 minutes
D 1 minute 1 minute 1 minute
1 minute:30
E 1 minute 1 minute
seconds
2 minutes:30
F 2 minutes 2 minutes
seconds
G 3 minutes 4 minutes 5 minutes
H 25 minutes 20 minutes 15 minutes
I 10 minutes 8 minutes 8 minutes
39 minutes:30
TTT
seconds
Table 3.5: Plant Capacity
Plant Capacity = 360 minutes

39.5 minutes/batch
= 9 batches
Plant Layout
Figure 3.4: Plant Layout

Labor Requirements
Time Monday Tuesday Wednesday Thursday Friday Saturday

Preparation Preparation Preparation Preparation Preparation Preparation
7:00am-
for for for for for for
7:30am
Production Production Production Production Production Production
7:30am-
8:30 am
8:30am-
9:30 am
9:30am-
10:30 am
10:30am–
11:30am
11:30am–
Lunch Lunch Lunch Lunch Lunch Lunch
12:30am
12:30pm-
1:30pm
1:30pm-
2:30pm
2:30pm-
3:30pm
3:30pm- Preparation Preparation Preparation Preparation Preparation Preparation
4:00pm for Closing for Closing for Closing for Closing for Closing for Closing
Table 3.6: Labor Requirements
Overall Cost
Monthly Capacity = 11 batches / day
= 11 batches/day (6 days/week)
= 11 batches/day (6 days/week) (4 weeks/month)
Monthly Capacity = 264 batches/month

Price of Materials
Raw Price Daily Monthly Cost

Materials and Unit Price Quantity per Cost (264batches/mont
(11
Supplies batch h)
batches/day)
Squash 40.00/kilogram 150 g 6.00 66.00 1584.00
Carrots 80.00/kilogram 150 g 12.00 132.00 3168.00
Flour 55.00/kilogram 550 g 30.25 332.75 7986.00
Sugar 48.00/kilogram 550 g 26.40 290.40 6969.60
Evaporated
24.50/ 370 mL 2 49.00 539.00 12936.00
Milk
Cheese 90.00/ 500g 250g 45.00 495.00 11880.00
Baking
15.00/ 50g 1 15.00 165.00 3960.00
Powder
Eggs 6.00/piece 6 36.00 396.00 9504.00
Butter 60.00/ 250g 125 g 30.00 330.00 7920.00
Cupcake
0.66/piece 40 26.40 290.40 6969.60
Liner (3oz)
Cupcake
0.36/piece 60 21.60 237.60 5702.40
Liner (1oz)
Aluminum
34.00/ 8m 0.4m 1.70 18.70 448.80
foil
TOTAL
299.35 3292.85 79028.40
COST
Table 3.7: Cost of Materials
Yield for Materials
1 batch 60 mini cupcakes + 40 regular cupcakes
1 batch 140 mini cupcakes
1 batch 70 regular cupcakes

Tools, Machineries and Equipment (TME)
Estimated Monthly
Unit Useful Per Daily Cost at 0.00
TME Quantity Price
Price Life batch Cost ending book
(year/s) value
Cupcake
3.00 24 72.00 1 0.02 0.25 6.00
molds (3oz)
Cupcake
2.10 30 63.00 1 0.02 0.22 5.25
molds (1oz)
Grater 50.00 1 50.00 1 0.02 0.17 4.17
Measuring
50.00 1 50.00 1 0.02 0.17 4.17
Cups
Mixing
30.00 1 30.00 1 0.01 0.10 2.5
Bowl
Liquefied
Petroleum 580.00 1 580.00 1/12 2.20 24.17 580
Gas
TOTAL COST 2.29 25.08 604.56
Table 3.8: Tools, Machineries and Equipment to be purchased
TME Rent Per Batch Daily Rent Monthly Rent

Steamer 0.19 2.08 50.00
Gas Stove 0.19 2.08 50.00
Total Cost 0.38 4.16 100.00
Table 3.9: Tools, Machineries and Equipment to be rented
Salaries of Workers and Employees
Employee Salary per batch Daily Salary Monthly Salary

Employee 1 13.64 150.00 3600.00
Employee 2 13.64 150.00 3600.00
Employee 3 13.64 150.00 3600.00
Total Salaries 40.92 450.00 10800.00
Table 3.10: Salaries of Workers and Employees
Other Expenses
Marketing Expenses:
Marketing Expense Cost per batch Daily Expense Monthly Expense

Printing Business
0.45 5.00 120.00
Card
Pamphlet Printing 2.25 25.00 600.00
Research and
0.90 10.00 240.00
Survey
Total Expenses 3.60 40.00 960.00
Table 3.11: Marketing Expenses
Transportation Expense
Employee Per batch Daily Monthly

Employee 1 1.45 16.00 384.00
Employee 2 1.45 16.00 384.00
Employee 3 1.45 16.00 384.00
Total Expenses 4.36 48.00 1152.00
Table 3.12: Transportation Expenses
Overall Cost per batch
Price of Materials = 299.35
TME to be rented = 0.38
TME to be purchased = 2.29
Salaries of workers = 40.92
Marketing Expenses = 3.60
Transportation Expense = 4.36
Overall Cost = 350.90

Overall Cost Daily
Overall Cost Monthly

CHAPTER IV
MARKETING PLAN
Target Market
The primary target of this market are the residents of Silang East, Crossing
Mendez, or most commonly known as Olivarez Plaza, Tagaytay City. Residents of all
ages are the primary target market of the product, excluding those under seven (7) years
old considering their purchasing power. The primary target market includes the regular
shoppers of the businesses located in the Olivarez Plaza as well as the students of
Olivarez College and the stall vendors and tricycle drivers roaming around Olivarez
Plaza. As for the secondary target market, it includes the students of STI Tagaytay and
the shoppers and employees of nearby establishments. The tertiary market of the product
includes passers-by and tourists in Olivarez Plaza and in other places near Olivarez Plaza.
The product is suitable not only to vegetable-lovers but also to kids or even adults who
don’t really like eating vegetables but love to eat sweets and baked delicacies. Household
incomes of the target market were considered to identify the purchasing power of the
target people. all people whose household income is greater than Php 7,500 were
expected to buy the product for people have spare money to buy squarrot muffins. People
who prefers to have an ideal body also are the target of the product, offering them high
quality and healthy muffins made from the vegetables with proven health benefits and are
usually seen in the market. The product is perfect for customers who are having a sweet
tooth but couldn't sacrifice their health for this little pleasure. The product also suits the
picky children’s taste buds so they could enjoy a sweet treat while they snack on
something that is good for their health.
Product Positioning
Squarrot Muffin is very much different from the usual muffins offered in the
market nowadays. Aside from the business attracting its customers by incorporating
mathematical terms in its name, the business also prioritized the science of eye health
making the product beneficial for everyone especially for people who experiences
symptoms of eyestrain. As compared to other variations of muffins, this product has less
cost of production for the product only includes squash and carrots that are among the
cheapest vegetables sold in the market, yet, among the healthiest. The health benefits of
the product are much more than the health benefits of common and known muffins in the
world. Unlike common baked goods which prioritizes the luxuries and demands of the
customers to benefit the company, Squarrot muffins brings a mutual benefit to the
customers, the company, and the society at large.
Market Study
To measure the acceptability and marketability of the product, survey
questionnaires were given to the possible target market of the product. Slovin’s formula
was used in determining the sample population size of the target market which needs to
be surveyed. According to the formula, fifty (50) respondents must be chosen to represent
the population or the target market of the business. The respondents were asked several
questions regarding their demographic profile and questions about the product itself.
Demographic Profile of the Respondents
Age
66 years old above 0
56-65 years old 3
46-55 years old 7
36-45 years old 10
26-35 years old 9
16-25 years old 12
16 years old below 9
Total 50
Table 4.1: Age of the Respondents
Gender
Male 23
Female 27
Total 50
Table 4.2: Gender of the Respondents
The results written in Table 4.1 showed that nine (9) of the respondents are under
16 years old, twelve (12) of the respondents are between 16-25 years old, nine (9) of the
respondents are between 26-35 years old, ten (10) of the respondents are between 36-45
years old, seven (7) are between 46-55 years old, three (3) are between 56-65 years old
and none of the respondents are 66 years old and above. As shown in Table4.2, twenty-
three (23) of the respondents were male and the rest, twenty-seven (27)
Taste
5 32
4 15
3 3
2 0
1 0
Total 50
Mean 4.58
Standard Deviation 0.602993
Table 4.3: Taste of the Squarrot Muffin
Table 4.3 shows that thirty-two (32) of the respondents liked the taste of the
squarrot muffin very much, fifteen (15) liked the taste slightly and three (3) neither like
nor dislike the taste of the muffin. The mean of the results obtained is 4.58 which falls
between 5 and 4, this means that most of the respondents liked the taste of the squarrot
muffins, some liked it very much and some liked it slightly. The standard deviation of
0.61 implies that the results obtained are not far from the mean which is 4.58, most of the
results were 5 or 4.
Color
5 30
4 18
3 2
2 0
1 0
Total 50
Mean 4.56
Table 4.4: Color of the Squarrot Muffin
Table 4.4 shows that thirty (30) of the respondents liked the color of the squarrot
muffin very much, eighteen (18) liked the color slightly and two (2) neither like nor
dislike the color of the muffin. The mean of the results obtained is 4.56 which falls
between 5 and 4, this means that most of the respondents liked the color of the squarrot
results were 5 or 4.
Size
5 25
4 17
3 5
2 2
1 1
Total 50
Mean 4.26
Table 4.5: Size of the Squarrot Muffin
Table 4.5 shows that twenty-five (25) of the respondents liked the size of the
squarrot muffin very much, seventeen (17) liked the color slightly, five (5) neither like
nor dislike the color of the muffin, two (2) disliked the color slightly and one (1) disliked
the color of the muffin very much. The mean of the results obtained is 4.26 which falls
between 4 and 5, this means that most of the respondents liked the size of the squarrot
results were 4 or 5, but it showed that the respondents liked the color slightly only.
Shape
5 37
4 9
3 2
2 2
1 0
Total 50
Mean 4.62
Table 4.6: Shape of the Squarrot Muffin
Table 4.6 shows that thirty-seven (37) of the respondents liked the shape of the
squarrot muffin very much, nine (9) liked the shape slightly, two (2) neither like nor
dislike the shape of the muffin, two (2) disliked the shape of the muffin slightly. The
mean of the results obtained is 4.62 which falls between 4 and 5, this means that most of
the respondents liked the shape of the squarrot muffins, some liked it very much and
some liked it slightly. The standard deviation of 0.75 implies that the results obtained are
not far from the mean which is 4.62, most of the results were 4 or 5, but it showed that
the respondents liked the color very much.
Texture
5 34
4 14
3 1
2 1
1 0
Total 50
Mean 4.62
Table 4.7: Texture of the Squarrot Muffins

Table 4.7 shows that thirty-four (34) of the respondents liked the texture of the
squarrot muffin very much, fourteen (14) liked the texture slightly, one (1) neither like
nor dislike the texture of the muffin, one (1) disliked the texture of the muffin slightly.
The mean of the results obtained is 4.62 which falls between 4 and 5, this means that
most of the respondents liked the texture of the squarrot muffins, some liked it very much
and some liked it slightly. The standard deviation of 0.62 implies that the results obtained
are not far from the mean which is 4.62, most of the results were 4 or 5, but it showed
that the respondents liked the texture very much.
Packaging
5 38
4 10
3 2
2 0
1 0
Total 50
Mean 4.72
Table 4.8: Packaging of the Squarrot Muffin
Table 4.8 shows that thirty-eight (38) of the respondents liked the packaging of
the squarrot muffin very much, ten (10) liked the packaging slightly and two (2) neither
like nor dislike the packaging of the muffin. The mean of the results obtained is 4.72
which falls between 5 and 4, this means that most of the respondents liked the packaging
of the squarrot muffins, some liked it very much and some liked it slightly. The standard
deviation of 0.53 implies that the results obtained are not really far from the mean which
is 4.72, most of the results were 5, meaning, respondents liked the packaging of the
squarrot muffins very much.

Aroma
5 29
4 13
3 7
2 1
1 0
Total 50
Mean 4.4
Table 4.9: Aroma of the Squarrot Muffin
Table 4.9 shows that twenty-nine (29) of the respondents liked the aroma of the
squarrot muffin very much, thirteen (14) liked the aroma slightly, seven (7) neither like
nor dislike the aroma of the muffin, one (1) disliked the aroma of the muffin slightly. The
the respondents liked the aroma of the squarrot muffins, some liked it very much and
not far from the mean which is 4.4, most of the results were 4, but it showed that the
respondents liked the texture slightly only.
Idea of Squarrot Muffins

5 29
4 17
3 4
2 0
1 0
Total 50
Mean 4.5
Table 4.10: Opinion About the Idea of Vegetable Muffins
Table 4.10 shows that twenty-nine (29) of the respondents liked the idea of the
squarrot muffins very much, seventeen (17) liked the idea slightly and four (4) neither
like nor dislike the idea of making squash and carrots the main ingredients of the muffin.
The mean of the results obtained is 4.5 which falls between 5 and 4, this means that most
of the respondents liked the idea of the squarrot muffins, some liked it very much and
not really far from the mean which is 4.5, most of the results were 5, meaning,
respondents liked the idea of the squarrot muffins very much.
Willingness to Try
5 27
4 17
3 6
2 0
1 0
Total 50
Mean 4.42
Table 4.11: Willingness to Try Squarrot Muffins
Table 4.11 shows that twenty-seven (27) of the respondents are willing to try the
squarrot muffins very much, seventeen (17) are slightly willing to try the muffin and six
(6) of the respondents are neither willing nor not willing to try the squarrot muffin. The
the respondents are willing to try the squarrot muffins, some are very much willing while
some are slightly willing. The standard deviation of 0.70 implies that the results obtained
are not really far from the mean which is 4.42, most of the results were 4, meaning,
respondents are slightly willing to try the muffins made from squash and carrots.
Enticing
5 22
4 18
3 10
2 0
1 0
Total 50
Mean 4.24
Table 4.12: Enticing Squarrot Muffins
Table 4.12 shows that twenty-two (22) of the respondents said that squarrot
muffins are very enticing, eighteen (18) said that the muffins are slightly enticing and ten
(10) of the respondents said that the squarrot muffins are neither or not enticing to fellow
customers. The mean of the results obtained is 4.24 which falls between 5 and 4, this
means that most of the respondents think that the squarrot muffins are enticing to their
fellow customers, some strongly agree while some slightly agree. The standard deviation
of 0.76 implies that the results obtained are not really far from the mean which is 4.24,
most of the results were 4, meaning, most of the respondents said that the muffins are
slightly enticing to fellow customers.
Marketability
5 29
4 18
3 3
2 0
1 0
Total 50
Mean 4.52
Table 4.13: Marketability of Squarrot Muffins
Table 4.13 shows that twenty-nine (29) of the respondents said that squarrot
muffins are highly marketable, eighteen (18) said that the muffins are slightly marketable
and three (3) of the respondents said that the squarrot muffins are neither or not
marketable. The mean of the results obtained is 4.52 which falls between 5 and 4, this
means that most of the respondents think that the squarrot muffins are marketable to
fellow customers, some strongly agree while some slightly agree. The standard deviation
of 0.61 implies that the results obtained are not really far from the mean which is 4.52,
most of the results were 5, meaning, most of the respondents said that the muffins are
highly marketable to fellow customers.
Price
5 pesos per piece 26
8 pesos per piece 12

Others 12
TOTAL 50
Table 4.14: Price of the Squarrot Muffins
Table 4.14 shows that twenty-six (26) of the respondents prefer paying five (5)
pesos for each squarrot muffin, twelve (12) prefer to pay eight (8) pesos for each muffin
while the remaining twelve (12) respondents prefer other prices for each squarrot muffin
which may be lower or higher than the stated price above.

Willingness to Purchase
5 33
4 13
3 4
2 0
1 0
Total 50
Mean 4.58
Table 4.15 Willingness to Purchase Squarrot Muffins
Table 4.15 shows that thirty-three (33) of the respondents are very much willing
to purchase the squarrot muffins, thirteen (13) are slightly willing to purchase the muffin
and four (4) of the respondents are neither willing nor not willing to purchase the squarrot
muffin. The mean of the results obtained is 4.58 which falls between 5 and 4, this means
that most of the respondents are willing to purchase the squarrot muffins, some are very
much willing while some are slightly willing. The standard deviation of 0.64 implies that
the results obtained are not really far from the mean which is 4.58, most of the results
were 5, meaning, respondents are very much willing to purchase the muffins made from
squash and carrots.
Forty (40) of the respondents were from Olivarez Plaza making them as valid
primary target market of the business and ten (10) were passers-by who represents the
tertiary target market of the business. Most of the respondents gave high scores in the
survey questionnaires distributed to them showing how satisfied the target customers are.
The respondents represent the target market of the product and the business making the
survey questionnaires more valid and reliable to use in the market study.
Based from the findings above, the following conclusions are drawn:
1. Most of the respondents liked the taste of the Squarrot Muffin very much.
2. Most of the respondents liked the color of the Squarrot Muffin very much.
3. Most of the respondents liked the size of the Squarrot Muffin slightly.
4. Most of the respondents liked the shape of the Squarrot Muffin very much.
5. Most of the respondents liked the texture of the Squarrot Muffin very much.
6. Most of the respondents liked the packaging of the Squarrot Muffin very much.
7. Most of the respondents liked the aroma of the Squarrot Muffin slightly.
8. Most of the respondents liked the idea of the Squarrot Muffin very much.
9. Most of the respondents are slightly willing to try the Squarrot Muffin.
10. Most of the respondents liked the taste of the Squarrot Muffin very much.
11. Most of the respondents said that the Squarrot Muffin is slightly enticing to fellow
customers.
12. Most of the respondents agreed that the Squarrot Muffin is highly maketable.
13. Most of the respondents prefer to purchase the Squarrot Muffins at five (5) pesos
only.
14. Most of the respondents are very much willing to purchase the Squarrot Muffin.
It can be inferred from the conclusions that the Squarrot Muffin is highly marketable
to the primary, secondary and tertiary target market of the business as shown in the
results obtained from the respondents residing at Olivarez Plaza and in the nearby
establishments. The respondents positively responded to the questions asked in the
questionnaire which is all about the main product, Squarrot Muffins, and its taste and
appearance. The conclusions showed that the proposed business can successfully be a
part of the market and be one of the known muffin manufacturers in Olivarez Plaza.
Marketing Strategy
Product
The Squarrot muffin comes in two different sizes, one is the regular-sized and the
other is mini or small-sized cupcakes. All cupcakes would have same ingredients as the
commercial cupcakes except for the vegetables, squash and carrots, which would be the
main ingredients of the Squarrot muffin. Unlike the common cupcakes, the Squarrot
muffin would be cheesy so that people, especially kids and kids at heart would enjoy the
taste and aroma of the muffin. Squash and carrots, the main ingredients, both have health
benefits to all people especially to those who are having eye problems. The muffins will
be steamed to ensure that the muffins would be healthier and would taste like no other.
The Squarrot muffin will be in two sizes to provide people with choices as to
what size would they prefer to buy and to take into consideration the buying power of
people with respect to their spare money and these considerations have lead the
proponents to come up with a miniature of the product and offer it at a lower price which
would be very affordable to everyone. The Squarrot muffin may have different toppings
varying from cheese to chocolate sprinkles to add more flavoring to the cupcakes and to
be more enticing to customers. The product would also have cupcake liners with unique
designs so the cupcakes would look more appetizing to eat.
The product is also suitable for all ages above three (3) years old and is
recommended to provide all people, especially kids, enough nutrients and vitamins for
everyday living. Squarrot muffin is also not limited only to vegetable lovers but also to
people who don’t really like eating vegetables but love to eat sweet and baked delicacies,
health benefits are ensured in eating a piece of Squarrot muffin.

Product Packaging
Figure 4.1: Contents of Packaging A
Figure 4.2: Packaging A
Figure 4.3: Packaging A Best Before Date

Figure 4.1 shows the contents of the first packaging for the muffins. Aside from
the cupcake liner which may serve as its primary packaging, the muffins will fill a
6in×9in×2in box with a cupcake holder inside which is good for six (6) regular sized
cupcakes. As seen in figure 4.2, the labeling is on the middle of the transparent part of the
box to catch people’s attention more. In figure 4.3, the manufacturing and consume
before dates will be put in the side part or the box for the customers to be aware of the
expiry and manufacturing date of the Squarrot muffins. The proponents chose the box
with cupcake design to give the customers an idea of what is inside the box. The first
packaging which can be seen in figures 3.2 and 3.3 is perfect for people who want to give
gifts to their loved ones, the box is much presentable as compared to other types of
packaging like plastics and others.
Figure 4.4: Packaging B

The second version of the packaging of Suarrot muffins as seen in figure 4.4
contains six (6) mini Squarrot muffins and one (1) regular-sized Squarrot muffin which
would be perfect for gifts and for other purposes. Labeling is on top of the packaging so it
would be more visible for the customers and was not put in the middle to make the whole
packaging look more stylish and classier.
Labeling
Figure 4.5: Squarrot Muffin Logo
Figure 4.6: Squarrot Muffins Labeling
Figure 4.5 shows the business logo which is a representation for the word
“Squarrot Muffin” by using the mathematical symbol square root to represent ‘Squarrot’
and a picture of a cupcake to represent the muffin. This logo is placed below the muffins,
specifically on the back part of the cupcake liner. Figure 4.6 shows the labeling placed on
the packaging of the Squarrot muffins with the business logo, business tagline, Squarrot
muffin ingredients, the manufacturer and the business contact number.
Pricing
Mini Squarrot muffins would cost about four (4) pesos each considering the
overall cost of the product, having a sixty (60%) mark-up rate from the original overall
cost which is two pesos and fifty centavos (2.50). The regular-sized Squarrot muffin
would cost about eight (8) pesos each considering the overall cost of the product, having
a sixty (60%) mark-up rate from the original overall cost which is five (5) pesos. As for
the muffins in the packages, we would sell six (6) cupcakes in a box for only sixty-five
(60) pesos and half dozens of mini muffins and a regular-sized Squarrot muffin in a treat
bag for only forty (40) pesos, taking into consideration the cost of packaging used.
The price of the muffins is much lower than the commercial flavored muffins
which would usually cost thirty-three (33) pesos or more depending on the brand of the
muffins. The owners of the business have decided to just offer the Squarrot muffins at a
lower price considering the target market of the business and also market’s purchasing
power. The marketers of the product will offer discounts such as 8 mini Squarrot muffins
for thirty (30) pesos only, 4 regular-sized Squarrot muffins for thirty (30) pesos only, buy
a dozen of mini Squarrot muffins and get 1 free, and others.

Promotion
Several printed advertisements such as pamphlets and business cards will be
distributed to the target market and to other nearby places for the business and the
product itself to be well-known in the market. The promotions that will be done also aims
to introduce the product into a larger market with a broader scope giving the business
more opportunities to grow and to be more successful. Business cards will also be printed
and distributed not only to the primary target market but also to the secondary and
tertiary target market to further promote the business. Free taste of the product will also
be given to the target market of the business to create a positive impression and
perception of the product for the business believes in the power of word-of-mouth, which
can lead to the indirect promotion and advertisement of the product. Also, marketers of
the product will be the first to reach out the customers to execute direct marketing.
Place
The business is situated in Olivarez Plaza, Tagaytay City, which is known to have
a lot of people especially during weekends. Olivarez Plaza is really accessible for all
target customers especially that it is where most famous stores are located. The products
will be distributed and sold at Olivarez Plaza but the business is open for orders
anywhere especially in nearby towns and cities with corresponding transportation fees.
CHAPTER V
MANAGEMENT PLAN
Form of Ownership
SRM Manufacturing is a business partnership providing totally delicious and
hunger-satisfying healthy muffins made up of mainly squash and carrots. The SRM
Manufacturing is a partnership formed by eight (8) business partners named Audrey
Beatrice R. Monsobre, Carol Anne P. Mondigo, Cherry Lyn Amor, Jewel Ann M. Gana,
Jhon Carlo Aborquez, John Symon Salvani, Kelvinn U. Alcedo and Nicole Amon, aiming
to provide its customers with a healthy snack at an affordable and reasonable price.
The business owners have decided to share the profits and liabilities of the
business equally. The business owners chose general partnership as their form of business
ownership to cater all creative and innovative ideas from each business partner that may
contribute to the overall success of the business, moreover, the partnership that has been
drawn provides a more profitable business venture and a longer-living business. The
business requires several skills of an entrepreneur which could not be performed by a sole
entrepreneur that may lead to the early fall of the business. The business partners have
been persuaded by what Rick Spence (2013) said, the entrepreneur said that no business
will be successful unless it is superb in all categories like finance, planning, marketing
and recruiting. Having this thought, the partners have decided to put up a general
partnership to optimize all skills and resources that can be contributed by the partners. In
the business venture that is to be created, the help of each partner is needed to have a
more successful business offering more creative and innovative products and to achieve a
more desirable profit while reaching the business’ fullest potential. Business partnership
also is flexible in a way that it is easier to form and run and are less strictly regulated as
compared to corporations. In addition, partners share responsibility of running the
business allowing partners to maximize the optimization of resources, skills and abilities.
The most important advantage of business partnership is the easiness to access capital,
providing the business enough fund to run and to continue growing, thus, making more
profits for the business partners.
Organizational Structure
Figure 5.1: Organizational Structure

The business partners have agreed that Carol Anne P. Mondigo will be the
president, Kelvinn U. Alcedo will be the finance manager, Audrey R. Monsobre wil be
the marketing manager, Jewel Ann M.Gana will be the production manager and Symon J.
Salvani will be the human resource manager making the remaing three (3) owners as co-
partners, all sharing equal profits and liabilities.
The partners have chosen to employ a flat organizational structure which includes
only a president and four (4) managers for every department to keep only a few level of
management and a short chain of command. As for the business partners, it would be
much easier to have a flat organizational structure to be able to communicate to all.
Having a short chain of comand makes the decision-making process quick, responding to
opportunities and threats of the business faster than the usual. Problems would be
addressed faster and the few levels of management would be able to provide quick
solution to problems. Aside from the advantages mentioned, flat organizational structure
is also budget-wise and more profitable as compared to hierarchichal structure for it
elimintes unnecessary levels of management and salaries, minimizing the business’
budget costs.
Job Description
President
As a president, it is not enough to supervise personnel in the lower levels, there
are much more duties that a president must fulfill. The president must have the following
skills to perform effectively and efficiently the duties tasked to them, the skills are as
follows:
 Leadership.
 Strategic Thinking
 Problem Solving/Analysis
 Decision Making
 Performance Management
 Results Driven
 Communication Proficiency
 Financial Management
Upon having the skills abovementioned, one must perform the following duties:
 Oversee all other executives and staff within the organization.
 Meet with board of directors and other executives to determine if company is
in accordance with goals and policies.
 Oversee budgets.
 Nominate citizens to boards and commissions.
 Encourage business investment.
 Promote economic development within communities.
 Direct the organization's financial goals, objectives, and budgets.
 Implement the organization's guidelines on a day-to-day basis.
 Preside over quality control.
 Hire, train, and terminate employees.
 Develop and implement strategies and set the overall direction of a certain
area of the company or organization.

 Oversee the investment of funds and manage associated risks, supervise cash
management activities, execute capital-raising strategies to support a firm's
expansion, and deal with mergers and acquisitions.
 Provide visionary and strategic leadership for the organization.
 Collaborate with the board of directors to develop the policies and direction of
the organization.
 Ensure members of the Board of Directors have the information necessary to
perform their fiduciary duties and other governance responsibilities.
 Develop and maintain relationships with other associations, industry, and
government officials that are in the best interest of the company.
 Provide adequate and timely information to the Board to enable it to
effectively execute its oversight role.
 Direct staff, including organizational structure, professional development,
motivation, performance evaluation, discipline, compensation, personnel
policies, and procedures.
All in all, the president is responsible for establishing a company's goals and
strategies and presiding over the entire workforce. The president oversees budgets and
ensures resources are properly allocated and ensures that departments meet individual
goals.
Finance Manager
The skills needed to be the finance manager of the business is the same as the
skills of the president that is enumerated above and those are:

 commercial and business awareness
 excellent communication and presentation skills
 an analytical approach to work
 high numeracy and sound technical skills
 problem-solving skills and initiative
 negotiation skills and the ability to influence others
 strong attention to detail and an investigative nature
 the ability to balance the demands of work with study commitments
 good time management skills and the ability to prioritize
 the ability to work as part of a team and to build strong working relationships
 the capacity to make quick but rational decisions
 the potential to lead and motivate others
 good IT skills
Upon having the skills abovementioned, the finance manager must perform the following
duties:
 providing and interpreting financial information
 monitoring and interpreting cash flows and predicting future trends
 analyzing change and advising accordingly
 formulating strategic and long-term business plans
 researching and reporting on factors influencing business performance
 analyzing competitors and market trends
 developing financial management mechanisms that minimize financial risk

 conducting reviews and evaluations for cost-reduction opportunities
 managing a company's financial accounting, monitoring and reporting systems
 liaising with auditors to ensure annual monitoring is carried out
 developing external relationships with appropriate contacts, e.g. auditors,
solicitors, bankers and statutory organizations such as the Inland Revenue
 producing accurate financial reports to specific deadlines
 managing budgets
 arranging new sources of finance for a company's debt facilities
 supervising staff
 keeping abreast of changes in financial regulations and legislation.
To summarize all of the tasks, a finance manager provides support to operations
group through information analyses, prepares operational data/analyses for publication to
various constituents throughout company who rely on/benefit from the information to
make informed business decisions. Primary responsibilities of a finance manager will
include assisting Operations team in the Monthly Operations Review, identification of
areas for cost reductions and operational improvements, annual budget process, periodic
forecasting, and periodic analysis of operations performance.
Marketing Manager
The following is the marketing manager skill set:
 Intimate understanding of traditional and emerging marketing channels
 Excellent communication skills
 Ability to think creatively and innovatively

 Budget-management skills and proficiency
 Professional judgment and discretion that comes from years of experience in the
field
 Analytical skills to forecast and identify trends and challenges
 Familiarity with the latest trends, technologies and methodologies in graphic
design, web design, production, etc.
Having the qualifications of a marketing manager, one is tasked to do the following
duties:
 Managing all marketing for the company and activities within the marketing
department.
 Developing the marketing strategy for the company in line with company
objectives.
 Co-ordinating marketing campaigns with sales activities.
 Overseeing the company’s marketing budget.
 Creation and publication of all marketing material in line with marketing
plans.
 Planning and implementing promotional campaigns.
 Manage and improve lead generation campaigns, measuring results.
 Overall responsibility for brand management and corporate identity
 Preparing online and print marketing campaigns.
 Monitor and report on effectiveness of marketing communications.
 Creating a wide range of different marketing materials.

 Working closely with design agencies and assisting with new product
launches.
 Maintain effective internal communications to ensure that all relevant
company functions are kept informed of marketing objectives.
 Analyzing potential strategic partner relationships for company marketing.
In general, marketing managers are responsible for developing, implementing and
executing strategic marketing plans for an entire organization (or lines of business and
brands within an organization) in order to attract potential customers and retain existing
ones.
Operations Manager
The skills needed to be the operations manager of the business is almost the same
as the skills of other managers that is enumerated above and those are:
 Adequate knowledge of organizational effectiveness and operations
management
 Budget development and oversight experience
 Familiarity with business and financial principles and practices
 Working knowledge of budgets, forecasting and metrics
 Basic IT skills
 Ability to effectively communicate with all levels of the organization
 Leadership and organizational skills
 BS degree in operations management or related field

Having all the stated required skills of an operations manager, one must perform
several duties including:
 Improve the operational systems, processes and policies in support of
organizations mission -- specifically, support better management reporting,
information flow and management, business process and organizational
planning.
 Manage and increase the effectiveness and efficiency of Support Services (HR,
IT and Finance), through improvements to each function as well as
coordination and communication between support and business functions.
 Play a significant role in long-term planning, including an initiative geared
toward operational excellence.
 Oversee overall financial management, planning, systems and controls.
 Management of agency budget in coordination with the Executive Director.
 Development of individual program budgets
 Invoicing to funding sources, including calculation of completed units of
service.
 Payroll management, including tabulation of accrued employee benefits.
 Disbursement of checks for agency expenses.
 Organization of fiscal documents.
 Regular meetings with Executive Director around fiscal planning.

The role of the Operations Manager is a senior position in any organization and is
there to ensure that all the parts of the production process come together to deliver the
correct quality of final product. By liaising and understanding all aspects of production,
Operation Managers can oversee the quality of outputs. Overall, the role of an operations
manager is vital for ensuring that a strong reputation is maintained in the marketplace.
Human Resource Manager
The skills needed to be the human resource manager of the business is almost the
same as the skills of other managers that is enumerated above and those are:
 Proven working experience as HR manager or other HR executive
 People oriented and results driven
 Demonstrable experience with humanr resources metrics
 Knowledge of HR systems and databases
 Ability to architect strategy along with leadership skills
 Excellent active listening, negotiation and presentation skills
 Competence to build and effectively manage interpersonal relationships at
all levels of the company
 In-depth knowledge of labor law and HR best practices
 BS/MS degree in Human Resources or related field
Having all the stated required skills of an operations manager, one must perform
several duties including:
 Develop and implement HR strategies and initiatives aligned with the overall
business strategy
 Bridge management and employee relations by addressing demands, grievances
or other issues
 Manage the recruitment and selection process
 Support current and future business needs through the development, engagement,
motivation and preservation of human capital
 Develop and monitor overall HR strategies, systems, tactics and procedures across
the organization
 Nurture a positive working environment
 Oversee and manage a performance appraisal system that drives high performance
 Maintain pay plan and benefits program
 Assess training needs to apply and monitor training programs
 Report to management and provide decision support through HR metrics
 Ensure legal compliance throughout human resource management
Human resource managers are the overseers of the human resources department
and insurers of the functions and tasks being carried out by the HR team. They are often
seen as the link between an organization’s management and its employees, as their work
runs the gamut from providing consultation on strategic planning with top executives to
recruiting, interviewing, and hiring new staff.

CHAPTER VI
FINANCIAL PLAN
Sales Projection
Squarrot Muffins Sales Forecast
Uni ts Sol d Jan-18 Fe b-18 Mar-18 Apr-18 May-18 Jun-18

Mini Sqaurrot Muffin 8000 8400 8820 9261 9724 10210
Regular Squarrot Muffin 4870 5116 5371 5640 5922 6218
Package A 288 302 318 333 350 366
Package B 432 454 476 500 525 551
Uni t Pri ce
Mini Sqaurrot Muffin ₱5.00 ₱5.00 ₱5.00 ₱5.00 ₱5.00 ₱5.00
Regular Squarrot Muffin ₱10.00 ₱10.00 ₱10.00 ₱10.00 ₱10.00 ₱10.00
Package A ₱60.00 ₱60.00 ₱60.00 ₱60.00 ₱60.00 ₱60.00
Package B ₱40.00 ₱40.00 ₱40.00 ₱40.00 ₱40.00 ₱40.00
Sal e s Growth Rate

Mini Sqaurrot Muffin 0% 5% 5% 5% 5% 5%
Regular Squarrot Muffin 0% 5% 5% 5% 5% 5%
Package A 0% 5% 5% 5% 5% 5%
Package B 0% 5% 5% 5% 5% 5%
Re ve nue
Mini Sqaurrot Muffin ₱40,000.00 ₱42,000.00 ₱44,100.00 ₱46,305.00 ₱48,620.00 ₱51,050.00
Regular Squarrot Muffin ₱48,700.00 ₱51,160.00 ₱53,710.00 ₱56,400.00 ₱59,220.00 ₱62,180.00
Package A ₱17,280.00 ₱18,120.00 ₱19,080.00 ₱19,980.00 ₱21,000.00 ₱21,960.00
Package B ₱17,280.00 ₱18,160.00 ₱19,040.00 ₱20,000.00 ₱21,000.00 ₱22,040.00
Total Re ve nue ₱123,260.00 ₱129,440.00 ₱135,930.00 ₱142,685.00 ₱149,840.00 ₱157,230.00
Uni t C O GS
Package A ₱38.02 ₱38.02 ₱38.02 ₱38.02 ₱38.02 ₱38.02
Package B ₱23.28 ₱23.28 ₱23.28 ₱23.28 ₱23.28 ₱23.28
Margi n Pe r Uni t
Package A ₱22.98 ₱22.98 ₱22.98 ₱22.98 ₱22.98 ₱22.98
Package B ₱16.72 ₱16.72 ₱16.72 ₱16.72 ₱16.72 ₱16.72
Gross Profi t
Mini Sqaurrot Muffin ₱22,720.00 ₱23,856.00 ₱25,048.80 ₱26,301.24 ₱27,616.16 ₱28,996.40
Regular Squarrot Muffin ₱27,661.60 ₱29,058.88 ₱30,507.28 ₱32,035.20 ₱33,636.96 ₱35,318.24
Package A ₱6,618.24 ₱6,939.96 ₱7,307.64 ₱7,652.34 ₱8,043.00 ₱8,410.68
Package B ₱7,223.04 ₱7,590.88 ₱7,958.72 ₱8,360.00 ₱8,778.00 ₱9,212.72
Total Gross Profi t ₱64,222.88 ₱67,445.72 ₱70,822.44 ₱74,348.78 ₱78,074.12 ₱81,938.04
Table 6.1: Squarrot Muffins Sales Forecast January-June 2018

Squarrot Muffins Sales Forecast
Year 1
Units Sold Jul-18 Aug-18 Sep-18 O ct-18 Nov-18 Dec-18 Total Units Sold
Mini Sqaurrot Muffin 10720 11257 11820 12411 13031 13683 127337
Regular Squarrot Muffin 6529 6855 7198 7558 7936 8333 77546
Package A 384 404 424 445 467 490 4571
Package B 579 608 638 670 704 739 6876
Avg Unit Price

Unit Price
Mini Sqaurrot Muffin ₱5.00 ₱5.00 ₱5.00 ₱5.00 ₱5.00 ₱5.00 ₱5.00
Regular Squarrot Muffin ₱10.00 ₱10.00 ₱10.00 ₱10.00 ₱10.00 ₱10.00 ₱10.00
Package A ₱60.00 ₱60.00 ₱60.00 ₱60.00 ₱60.00 ₱60.00 ₱60.00
Package B ₱40.00 ₱40.00 ₱40.00 ₱40.00 ₱40.00 ₱40.00 ₱40.00
Avg Growth Rate

Sales Growth Rate
Mini Sqaurrot Muffin 5% 5% 5% 5% 5% 5% 5%
Regular Squarrot Muffin 5% 5% 5% 5% 5% 5% 5%
Package A 5% 5% 5% 5% 5% 5% 5%
Package B 5% 5% 5% 5% 5% 5% 5%
Total Revenue
Revenue
Mini Sqaurrot Muffin ₱53,600.00 ₱56,285.00 ₱59,100.00 ₱62,055.00 ₱65,155.00 ₱68,415.00 ₱636,685.00
Regular Squarrot Muffin ₱65,290.00 ₱68,550.00 ₱71,980.00 ₱75,580.00 ₱79,360.00 ₱83,330.00 ₱775,460.00
Package A ₱23,040.00 ₱24,240.00 ₱25,440.00 ₱26,700.00 ₱28,020.00 ₱29,400.00 ₱274,260.00
Package B ₱23,160.00 ₱24,320.00 ₱25,520.00 ₱26,800.00 ₱28,160.00 ₱29,560.00 ₱275,040.00
Total Revenue ₱165,090.00 ₱173,395.00 ₱182,040.00 ₱191,135.00 ₱200,695.00 ₱210,705.00 ₱1,961,445.00
Avg CO GS
Unit CO GS
Regular Squarrot Muffin ₱4.32 ₱4.32 ₱4.32 ₱4.32 ₱4.32 s ₱4.32
Package A ₱38.02 ₱38.02 ₱38.02 ₱38.02 ₱38.02 ₱38.02 ₱38.02
Package B ₱23.28 ₱23.28 ₱23.28 ₱23.28 ₱23.28 ₱23.28 ₱23.28
Avg Margin
Margin Per Unit
Regular Squarrot Muffin ₱5.68 ₱5.68 ₱5.68 ₱5.68 ₱5.68 ₱5.68 ₱5.68
Package A ₱22.98 ₱22.98 ₱22.98 ₱22.98 ₱22.98 ₱22.98 ₱22.98
Package B ₱16.72 ₱16.72 ₱16.72 ₱16.72 ₱16.72 ₱16.72 ₱16.72
Total Gross Profit

Gross Profit
Mini Sqaurrot Muffin ₱30,444.80 ₱31,969.88 ₱33,568.80 ₱35,247.24 ₱37,008.04 ₱38,859.72 ₱361,637.08
Regular Squarrot Muffin ₱37,084.72 ₱38,936.40 ₱40,884.64 ₱42,929.44 ₱45,076.48 ₱47,331.44 ₱440,461.28
Package A ₱8,824.32 ₱9,283.92 ₱9,743.52 ₱10,226.10 ₱10,731.66 ₱11,260.20 ₱105,041.58
Package B ₱9,680.88 ₱10,165.76 ₱10,667.36 ₱11,202.40 ₱11,770.88 ₱12,356.08 ₱114,966.72
Total Gross Profit ₱86,034.72 ₱90,355.96 ₱94,864.32 ₱99,605.18 ₱104,587.06 ₱109,807.44 ₱1,022,106.66
Table 6.2: Squarrot Muffins Sales Forecast July-December 2018
Tables 6.1 and 6.2 show SRM Manufacturing- Squarrot Muffin’s monthly Sales
Forecast for the year 2018. Table 6.3 shows SRM Manufacturing- Squarrot Muffin’s 5-
year sales projection.

Year-to-Year Comparison
Units Sold 2018 2019 2020 2021 2022

Mini Sqaurrot Muffin ₱127,337.00 ₱133,704.00 ₱140,389.00 ₱147,498.00 ₱154,779.00
Regular Squarrot Muffin ₱77,546.00 ₱81,423.00 ₱85,494.00 ₱89,769.00 ₱94,258.00
Package A ₱4,571.00 ₱4,800.00 ₱5,040.00 ₱5,292.00 ₱5,556.00
Package B ₱6,876.00 ₱7,220.00 ₱7,581.00 ₱7,960.00 ₱8,358.00
Unit Price
Mini Sqaurrot Muffin ₱5.00 ₱5.00 ₱5.00 ₱5.00 ₱5.00
Regular Squarrot Muffin ₱10.00 ₱10.00 ₱10.00 ₱10.00 ₱10.00
₱60.00 ₱60.00 ₱60.00 ₱60.00 ₱60.00
Package B ₱40.00 ₱40.00 ₱40.00 ₱40.00 ₱40.00
Sales Growth Rate

Mini Sqaurrot Muffin 5% 5% 5% 5% 5%
Regular Squarrot Muffin 5% 5% 5% 5% 5%
Package A 5% 5% 5% 5% 5%
Package B 5% 5% 5% 5% 5%
Revenue
Package A ₱274,260.00 ₱287,973.00 ₱302,371.65 ₱317,490.23 ₱333,364.74
Package B ₱275,040.00 ₱288,792.00 ₱303,231.60 ₱318,393.18 ₱334,312.84
Total Revenue ₱1,961,445.00 ₱2,059,517.25 ₱2,162,493.11 ₱2,270,617.77 ₱2,384,148.66
Unit COGS
Package A ₱38.02 ₱38.02 ₱38.02 ₱38.02 ₱38.02
Package B ₱23.28 ₱23.28 ₱23.28 ₱23.28 ₱23.28
Margin Per Unit

Package A ₱22.98 ₱22.98 ₱22.98 ₱22.98 ₱22.98
Package B ₱16.72 ₱16.72 ₱16.72 ₱16.72 ₱16.72
Gross Profit
Package A ₱105,041.58 ₱110,293.66 ₱115,808.34 ₱121,598.76 ₱127,678.70
Package B ₱114,966.72 ₱120,715.06 ₱126,750.81 ₱133,088.35 ₱139,742.77
Total Gross Profit ₱1,022,106.66 ₱1,073,211.99 ₱1,126,872.59 ₱1,183,216.22 ₱1,242,377.03
Table 6.3: 5-year Sales Forecast

Expense Forecast
Expense Forecast
January February March
Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00
Rent -- Plant and Store ₱ 3,000.00 ₱ 3,000.00 ₱ 3,000.00
Repairs and Maintenance ₱ 200.00 ₱ 200.00 ₱ 200.00
Salaries ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00
Supplies ₱ 79,632.96 ₱ 79,632.96 ₱ 79,632.96
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00
Total Expenses ₱ 96,744.96 ₱ 96,744.96 ₱ 96,744.96
Other Expenses
Depreciation ₱ 22.09 ₱ 22.09 ₱ 22.09
Total Other Expenses ₱ 22.09 ₱ 22.09 ₱ 22.09
Total Fixed Operating Expenses ₱ 96,767.05 ₱ 96,767.05 ₱ 96,767.05
Table 6.4: 2018 Expense Forecast First Quarter
Expense Forecast
April May June
Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00
Salaries ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00
Supplies ₱ 79,632.96 ₱ 79,632.96 ₱ 79,632.96
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00
Total Expenses ₱ 96,744.96 ₱ 96,744.96 ₱ 96,744.96
Other Expenses
Depreciation ₱ 22.09 ₱ 22.09 ₱ 22.09
Table 6.5: 2018 Expense Forecast Second Quarter

Expense Forecast
July August September
Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00
Salaries ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00
Supplies ₱ 79,632.96 ₱ 79,632.96 ₱ 79,632.96
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00
Total Expenses ₱ 96,744.96 ₱ 96,744.96 ₱ 96,744.96
Other Expenses
Depreciation ₱ 22.09 ₱ 22.09 ₱ 22.09
Table 6.6: 2018 Expense Forecast Third Quarter
Expense Forecast
October November December Annual Totals
Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00 ₱ 11,520.00
Rent -- Plant and Store ₱ 3,000.00 ₱ 3,000.00 ₱ 3,000.00 ₱ 36,000.00
Repairs and Maintenance ₱ 200.00 ₱ 200.00 ₱ 200.00 ₱ 2,400.00
Salaries ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00 ₱ 129,600.00
Supplies ₱ 79,632.96 ₱ 79,632.96 ₱ 79,632.96 ₱ 955,595.52
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00 ₱ 13,824.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 12,000.00
Total Expenses ₱ 96,744.96 ₱ 96,744.96 ₱ 96,744.96 ₱ 1,160,939.52
Other Expenses
Depreciation ₱ 22.09 ₱ 22.09 ₱ 22.09 ₱ 265.08
Total Other Expenses ₱ 22.09 ₱ 22.09 ₱ 22.09 ₱ 265.08
Total Fixed Operating Expenses ₱ 96,767.05 ₱ 96,767.05 ₱ 96,767.05 ₱ 1,161,204.60
Table 6.7: 2018 Expense Forecast Fourth Quarter
Tables 6.4, 6.5, 6.6, and 6.7 show SRM Manufacturing- Squarrot Muffin’s
quarterly Expense Forecast for the year 2018. Table 6.8 shows SRM Manufaturing-
Squarrot Muffin’s 5-year expense forecast.

Expense Forecast (5 years)
2018 2019 2020 2021 2022
Expenses
Advertising ₱ 11,520.00 ₱ 11,520.00 ₱ 11,520.00 ₱ 11,520.00 ₱ 11,520.00
Rent -- Plant and Store ₱ 36,000.00 ₱ 36,000.00 ₱ 36,000.00 ₱ 36,000.00 ₱ 36,000.00
Repairs and Maintenance ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00
Salaries ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00
Supplies ₱ 955,595.52 ₱ 955,595.52 ₱ 955,595.52 ₱ 955,595.52 ₱ 955,595.52
Transportation ₱ 13,824.00 ₱ 13,824.00 ₱ 13,824.00 ₱ 13,824.00 ₱ 13,824.00
Utilities ₱ 12,000.00 ₱ 12,000.00 ₱ 12,000.00 ₱ 12,000.00 ₱ 12,000.00
Total Expenses ₱ 1,162,139.52 ₱ 1,162,139.52 ₱ 1,162,139.52 ₱ 1,162,139.52 ₱ 1,162,139.52
Other Expenses
Depreciation ₱ 265.08 ₱ 265.08 ₱ 265.08 ₱ 265.08 ₱ 265.08
Total Other Expenses ₱ 265.08 ₱ 265.08 ₱ 265.08 ₱ 265.08 ₱ 265.08
₱ 1,162,404.60 ₱ 1,162,404.60 ₱ 1,162,404.60 ₱ 1,162,404.60 ₱ 1,162,404.60
Total Fixed Operating Expenses
Table 6.8: 5-year Expense Forecast
Income Statement Projection
Tables 6.9, 6.10 and 6.11 show SRM Manufacturing- Squarrot Muffiin’s Income
Statement Projection for the year 2018. Table 6.12 shows SRM Manufacturing – Squarrot
Muffin’s Income Statement Projection for five (5) consecutive years.

January February March April
Revenue
Mini Squarrot Muffins ₱ 40,000.00 ₱ 42,000.00 ₱ 44,100.00 ₱ 46,305.00
Regular Squarrot Muffins ₱ 48,700.00 ₱ 51,160.00 ₱ 53,710.00 ₱ 56,400.00
Package A ₱ 17,280.00 ₱ 18,120.00 ₱ 19,080.00 ₱ 19,980.00
Package B ₱ 17,280.00 ₱ 18,160.00 ₱ 19,040.00 ₱ 20,000.00
Total Revenue ₱ 123,260.00 ₱ 129,440.00 ₱ 135,930.00 ₱ 142,685.00
Cost of Goods Sold
Package A ₱ 10,949.76 ₱ 11,482.04 ₱ 12,090.36 ₱ 12,660.66
Package B ₱ 10,056.96 ₱ 10,569.12 ₱ 11,081.28 ₱ 11,640.00
Total Cost of Goods Sold ₱ 59,326.12 ₱ 62,296.28 ₱ 65,425.56 ₱ 68,668.90
Gross Margin ₱ 63,933.88 ₱ 67,143.72 ₱ 70,504.44 ₱ 74,016.10
Payroll ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00
Operating Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00 ₱ 960.00
Repairs and Maintenance ₱ 200.00 ₱ 200.00 ₱ 200.00 ₱ 200.00
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00
Total Operating Expenses ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00
Income (Before Other Expenses) ₱ 46,821.88 ₱ 50,031.72 ₱ 53,392.44 ₱ 56,904.10
Other Expenses
Depreciation ₱ 238.75 ₱ 238.75 ₱ 238.75 ₱ 238.75
Net Income Before Income Tax ₱ 46,583.13 ₱ 49,792.97 ₱ 53,153.69 ₱ 56,665.35
Income Tax ₱ 5,019.97 ₱ 5,501.44 ₱ 6,005.55 ₱ 6,532.30
Net Profit/Loss ₱ 41,563.16 ₱ 44,291.53 ₱ 47,148.14 ₱ 50,133.05
Table 6.9: Income Projection January-April 2018

May June July August
Revenue
Package A ₱ 21,000.00 ₱ 21,960.00 ₱ 23,040.00 ₱ 24,240.00
Package B ₱ 21,000.00 ₱ 22,040.00 ₱ 23,160.00 ₱ 24,320.00
Total Revenue ₱ 149,840.00 ₱ 157,230.00 ₱ 165,090.00 ₱ 173,395.00
Cost of Goods Sold
Package A ₱ 13,307.00 ₱ 13,915.32 ₱ 14,599.68 ₱ 15,360.08
Package B ₱ 12,222.00 ₱ 12,827.28 ₱ 13,479.12 ₱ 14,154.24
Total Cost of Goods Sold ₱ 72,115.88 ₱ 75,657.96 ₱ 79,439.28 ₱ 83,443.04
Gross Margin ₱ 77,724.12 ₱ 81,572.04 ₱ 85,650.72 ₱ 89,951.96
Payroll ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00
Operating Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00 ₱ 960.00
Repairs and Maintenance ₱ 200.00 ₱ 200.00 ₱ 200.00 ₱ 200.00
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00
Total Operating Expenses ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00
Income (Before Other Expenses) ₱ 60,612.12 ₱ 64,460.04 ₱ 68,538.72 ₱ 72,839.96
Other Expenses
Depreciation ₱ 238.75 ₱ 238.75 ₱ 238.75 ₱ 238.75
Net Income Before Income Tax ₱ 60,373.37 ₱ 64,221.29 ₱ 68,299.97 ₱ 72,601.21
Income Tax ₱ 7,088.50 ₱ 7,665.69 ₱ 8,277.49 ₱ 9,063.40
Net Profit/Loss ₱ 53,284.87 ₱ 56,555.60 ₱ 60,022.48 ₱ 63,537.81
Table 6.10: Income Statement Projection May-August 2018

September October November December Annual Totals
Revenue
Mini Squarrot Muffins ₱ 59,100.00 ₱ 62,055.00 ₱ 65,155.00 ₱ 68,415.00 ₱ 636,685.00
Regular Squarrot Muffins ₱ 71,980.00 ₱ 75,580.00 ₱ 79,360.00 ₱ 83,330.00 ₱ 775,460.00
Package A ₱ 25,440.00 ₱ 26,700.00 ₱ 28,020.00 ₱ 29,400.00 ₱ 274,260.00
Package B ₱ 25,520.00 ₱ 26,800.00 ₱ 28,160.00 ₱ 29,560.00 ₱ 275,040.00
Total Revenue ₱ 182,040.00 ₱ 191,135.00 ₱ 200,695.00 ₱ 210,705.00 ₱ 1,961,445.00
Cost of Goods Sold
Package A ₱ 16,120.48 ₱ 16,918.90 ₱ 17,755.34 ₱ 18,629.80 ₱ 173,789.42
Package B ₱ 14,852.64 ₱ 15,597.60 ₱ 16,389.12 ₱ 17,203.92 ₱ 160,073.28
Total Cost of Goods Sold ₱ 87,599.68 ₱ 91,974.82 ₱ 96,574.94 ₱ 101,387.56 ₱ 943,910.02
Gross Margin ₱ 94,440.32 ₱ 99,160.18 ₱ 104,120.06 ₱ 109,317.44 ₱ 1,017,534.98
Payroll ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00 ₱ 10,800.00 ₱ 129,600.00
Operating Expenses
Advertising ₱ 960.00 ₱ 960.00 ₱ 960.00 ₱ 960.00 ₱ 11,520.00
Repairs and Maintenance ₱ 200.00 ₱ 200.00 ₱ 200.00 ₱ 200.00 ₱ 2,400.00
Transportation ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00 ₱ 1,152.00 ₱ 13,824.00
Utilities ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 12,000.00
Total Operating Expenses ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 75,744.00
Income (Before Other Expenses) ₱ 77,328.32 ₱ 82,048.18 ₱ 87,008.06 ₱ 92,205.44 ₱ 812,190.98
Other Expenses
Depreciation ₱ 238.75 ₱ 238.75 ₱ 238.75 ₱ 238.75 ₱ 2,865.00
Total Other Expenses ₱ 238.75 ₱ 238.75 ₱ 238.75 ₱ 238.75 ₱ 2,865.00
Net Income Before Income Tax ₱ 77,089.57 ₱ 81,809.43 ₱ 86,769.31 ₱ 91,966.69 ₱ 809,325.98
Income Tax ₱ 9,961.25 ₱ 10,905.22 ₱ 11,897.19 ₱ 12,936.67 ₱ 100,854.67
Net Profit/Loss ₱ 67,128.32 ₱ 70,904.21 ₱ 74,872.12 ₱ 79,030.02 ₱ 708,471.31
Table 6.11: Income Statement Projection September-December 2018

Income Statement Projection (5 years)
2018 2019 2020 2021 2022
Revenue
Package A ₱ 274,260.00 ₱ 287,973.00 ₱ 302,371.65 ₱ 317,490.23 ₱ 333,364.74
Package B ₱ 275,040.00 ₱ 288,792.00 ₱ 303,231.60 ₱ 318,393.18 ₱ 334,312.84
Total Revenue ₱ 1,961,445.00 ₱ 2,059,517.25 ₱ 2,162,493.11 ₱ 2,270,617.77 ₱ 2,384,148.66
Cost of Goods Sold
Package A ₱ 173,789.42 ₱ 182,478.89 ₱ 191,602.84 ₱ 201,182.98 ₱ 211,242.13
Package B ₱ 160,073.28 ₱ 168,076.94 ₱ 176,480.79 ₱ 185,304.83 ₱ 194,570.07
Total Cost of Goods Sold ₱ 943,910.02 ₱ 991,104.81 ₱ 1,040,660.05 ₱ 1,092,693.05 ₱ 1,147,327.70
Gross Margin ₱ 1,017,534.98 ₱ 1,068,411.73 ₱ 1,121,832.32 ₱ 1,177,923.93 ₱ 1,236,820.13
Payroll ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00
Operating Expenses
Advertising ₱ 11,520.00 ₱ 11,520.00 ₱ 11,520.00 ₱ 11,520.00 ₱ 11,520.00
Repair and Maintenance ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00
Transportation ₱ 13,824.00 ₱ 13,824.00 ₱ 13,824.00 ₱ 13,824.00 ₱ 13,824.00
Utilities ₱ 12,000.00 ₱ 12,000.00 ₱ 12,000.00 ₱ 12,000.00 ₱ 12,000.00
Total Operating Expenses ₱ 75,744.00 ₱ 75,744.00 ₱ 75,744.00 ₱ 75,744.00 ₱ 75,744.00
Income (Before Other Expenses) ₱812,190.98 ₱ 863,067.73 ₱ 916,488.32 ₱ 972,579.93 ₱ 1,031,476.13
Other Expenses
Depreciation ₱ 2,865.00 ₱ 5,730.00 ₱ 8,595.00 ₱ 11,195.00 ₱ 14,325.00
Total Other Expenses ₱ 2,865.00 ₱ 5,730.00 ₱ 8,595.00 ₱ 11,195.00 ₱ 14,325.00
Net Income Before Income Tax ₱ 809,325.98 ₱ 857,337.73 ₱ 907,893.32 ₱ 961,384.93 ₱ 1,017,151.13
Income Tax ₱ 100,854.67 ₱ 105,897.40 ₱ 111,192.27 ₱ 116,751.89 ₱ 122,589.48
Net Profit/Loss ₱708,471.31 ₱ 751,440.33 ₱ 796,701.04 ₱ 844,633.04 ₱ 894,561.65
Table 6.12: 5-year Income Statement Projection
Cash Flow Statement Projection
Table 6.13, 6.14 and 6.15 show SRM Manufacuring- Squarrot Muffin’s Cash
Flow Statement Projection for the year 2018. Table 6.16 shows Manufacuring- Squarrot
Muffin’s Cash Flow Statement Projection for the years 2018-2022.

Cash Flow Statement Projection (Year 1)
January February March April
Beginning Balance (Capital) ₱ 500,000.00 ₱ 528,536.91 ₱ 573,067.19 ₱ 620,454.08
Cash Inflows
Cash Sales ₱ 123,260.00 ₱ 129,440.00 ₱ 135,930.00 ₱ 142,685.00
Total Cash Inflows ₱ 123,260.00 ₱ 129,440.00 ₱ 135,930.00 ₱ 142,685.00
Cash Outflows
Investing Activities
New Fixed Asset Purchases ₱ 13,265.00 ₱ - ₱ - ₱ -
Cost of Goods Sold ₱59,326.12 ₱62,296.28 ₱65,425.56 ₱68,668.90
Operating Activities
Operating Expenses ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00
Payroll ₱10,800.00 ₱10,800.00 ₱10,800.00 ₱10,800.00
Taxes ₱5,019.97 ₱5,501.44 ₱6,005.55 ₱6,532.30
Total Cash Outflows ₱ 94,723.09 ₱ 84,909.72 ₱ 88,543.11 ₱ 92,313.20
Net Cash Flows ₱ 28,536.91 ₱ 44,530.28 ₱ 47,386.89 ₱ 50,371.80
Operating Cash Balance ₱ 528,536.91 ₱ 573,067.19 ₱ 620,454.08 ₱ 670,825.88
Ending Cash Balance ₱ 528,536.91 ₱ 573,067.19 ₱ 620,454.08 ₱ 670,825.88
Table 6.13: Cash Flow Statement Projection January-April 2018

May June July August
Beginning Balance (Capital) ₱ 670,825.88 ₱ 724,349.50 ₱ 781,143.85 ₱ 841,405.08
Cash Inflows
Cash Sales ₱ 149,840.00 ₱ 157,230.00 ₱ 165,090.00 ₱ 173,395.00
Total Cash Inflows ₱ 149,840.00 ₱ 157,230.00 ₱ 165,090.00 ₱ 173,395.00
Cash Outflows
New Fixed Asset Purchases ₱ - ₱ - ₱ - ₱ -
Cost of Goods Sold ₱72,115.88 ₱75,657.96 ₱79,439.28 ₱83,443.04
Operating Expenses ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00
Payroll ₱10,800.00 ₱10,800.00 ₱10,800.00 ₱10,800.00
Taxes ₱7,088.50 ₱7,665.69 ₱8,277.49 ₱9,063.40
Total Cash Outflows ₱ 96,316.38 ₱ 100,435.65 ₱ 104,828.77 ₱ 109,618.44
Net Cash Flows ₱ 53,523.62 ₱ 56,794.35 ₱ 60,261.23 ₱ 63,776.56
Operating Cash Balance ₱ 724,349.50 ₱ 781,143.85 ₱ 841,405.08 ₱ 905,181.64
Ending Cash Balance ₱ 724,349.50 ₱ 781,143.85 ₱ 841,405.08 ₱ 905,181.64
Table 6.14: Cash Flow Statement Projection May-August 2018

September October November December Totals
Beginning Balance (Capital) ₱ 905,181.64 ₱ 972,548.71 ₱ 1,043,691.67 ₱ 1,118,802.54 ₱ 9,280,007.05
Cash Inflows
Cash Sales ₱ 182,040.00 ₱ 191,135.00 ₱ 200,695.00 ₱ 210,705.00 ₱ 1,961,445.00
Total Cash Inflows ₱ 182,040.00 ₱ 191,135.00 ₱ 200,695.00 ₱ 210,705.00 ₱ 1,961,445.00
Cash Outflows
New Fixed Asset Purchases ₱ - ₱ - ₱ - ₱ - ₱ 13,265.00
Cost of Goods Sold ₱87,599.68 ₱91,974.82 ₱96,574.94 ₱101,387.56 ₱ 943,910.02
Operating Expenses ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 6,312.00 ₱ 75,744.00
Payroll ₱10,800.00 ₱10,800.00 ₱10,800.00 ₱10,800.00 ₱ 129,600.00
Taxes ₱9,961.25 ₱10,905.22 ₱11,897.19 ₱12,936.67 ₱ 100,854.67
Total Cash Outflows ₱ 114,672.93 ₱ 119,992.04 ₱ 125,584.13 ₱ 131,436.23 ₱ 1,263,373.69
Net Cash Flows ₱ 67,367.07 ₱ 71,142.96 ₱ 75,110.87 ₱ 79,268.77 ₱ 698,071.31
Operating Cash Balance ₱ 972,548.71 ₱ 1,043,691.67 ₱ 1,118,802.54 ₱ 1,198,071.31 ₱ 9,978,078.36
Ending Cash Balance ₱ 972,548.71 ₱ 1,043,691.67 ₱ 1,118,802.54 ₱ 1,198,071.31 ₱ 9,978,078.36
Table 6.15: Cash Flow Statement Projection September-December 2018
Cash Flow Statement Projection (5 years)

2018 2019 2020 2021 2022
Beginning Balance (Capital) ₱ 500,000.00 ₱ 1,198,071.31 ₱ 1,954,976.64 ₱ 2,760,007.68 ₱ 3,615,570.72
Cash Inflows
Cash Sales ₱ 1,961,445.00 ₱ 2,059,517.25 ₱ 2,162,493.11 ₱ 2,270,617.77 ₱ 2,384,148.66
Total Cash Inflows ₱ 1,961,445.00 ₱ 2,059,517.25 ₱ 2,162,493.11 ₱ 2,270,617.77 ₱ 2,384,148.66
Cash Outflows
New Fixed Asset Purchases ₱ 13,265.00 ₱ 13,530.00 ₱ 13,795.00 ₱ 14,060.00 ₱ 14,325.00
Cost of Goods Sold ₱ 943,910.02 ₱ 991,105.52 ₱ 1,040,660.80 ₱ 1,092,693.84 ₱ 1,147,328.53
Operating Expenses ₱ 75,744.00 ₱ 75,744.00 ₱ 75,744.00 ₱ 75,744.00 ₱ 75,744.00
Payroll ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00 ₱ 129,600.00
Taxes ₱ 100,854.67 ₱ 105,897.40 ₱ 111,192.27 ₱ 116,751.89 ₱ 122,589.48
Total Cash Outflows ₱ 1,263,373.69 ₱ 1,315,876.92 ₱ 1,370,992.07 ₱ 1,428,849.72 ₱ 1,489,587.01
Net Cash Flows ₱ 698,071.31 ₱ 743,640.33 ₱ 791,501.04 ₱ 841,768.04 ₱ 894,561.65
Operating Cash Balance ₱ 1,198,071.31 ₱ 1,941,711.64 ₱ 2,746,477.68 ₱ 3,601,775.72 ₱ 4,510,132.37
Ending Cash Balance ₱ 1,198,071.31 ₱ 1,941,711.64 ₱ 2,746,477.68 ₱ 3,601,775.72 ₱ 4,510,132.37
Table 6.16: 5-year Cash Flow Statement Projection

Balance Sheet Projection
Balance Sheet Projection (5 years)

ASSETS 2018 2019 2020 2021 2022
Current Assets
Cash ₱ 1,198,071.31 ₱ 1,941,711.64 ₱ 2,746,477.68 ₱ 3,601,775.72 ₱ 4,510,132.37
Inventory ₱ - ₱ - ₱ - ₱ - ₱ -
Supplies ₱ - ₱ - ₱ - ₱ - ₱ -
Total Current Assets ₱ 1,198,071.31 ₱ 1,941,711.64 ₱ 2,746,477.68 ₱ 3,601,775.72 ₱ 4,510,132.37
Fixed Assets
Equipment ₱ 13,265.00 ₱ 13,530.00 ₱ 13,795.00 ₱ 14,060.00 ₱ 14,325.00
Other ₱ - ₱ - ₱ - ₱ - ₱ -
Total Fixed Assets ₱ 13,265.00 ₱ 13,530.00 ₱ 13,795.00 ₱ 14,060.00 ₱ 14,325.00
(Less Accumulated Depreciation) ₱ 2,865.00 ₱ 5,730.00 ₱ 8,595.00 ₱ 11,195.00 ₱ 14,325.00
Total Assets ₱ 1,208,471.31 ₱ 1,949,511.64 ₱ 2,751,677.68 ₱ 3,604,640.72 ₱ 4,510,132.37
LIABILITIES & EQUITY

Liabilities
Accounts Payable ₱ - ₱ - ₱ - ₱ - ₱ -
Commercial Loan Balance ₱ - ₱ - ₱ - ₱ - ₱ -
Commercial Mortgage Balance ₱ - ₱ - ₱ - ₱ - ₱ -
Credit Card Debt Balance ₱ - ₱ - ₱ - ₱ - ₱ -
Vehicle Loans Balance ₱ - ₱ - ₱ - ₱ - ₱ -
Other Bank Debt Balance ₱ - ₱ - ₱ - ₱ - ₱ -
Line of Credit Balance ₱ - ₱ - ₱ - ₱ - ₱ -
Total Liabilities ₱ - ₱ - ₱ - ₱ - ₱ -
Equity
Capital ₱ 500,000.00 ₱ 1,198,071.31 ₱ 1,954,976.64 ₱ 2,760,007.68 ₱ 3,615,570.72
Net Income ₱ 708,471.31 ₱ 751,440.33 ₱ 796,701.04 ₱ 844,633.04 ₱ 894,561.65
Total Equity ₱ 1,208,471.31 ₱ 1,949,511.64 ₱ 2,751,677.68 ₱ 3,604,640.72 ₱ 4,510,132.37
Total Liabilities and Equity ₱ 1,208,471.31 ₱ 1,949,511.64 ₱ 2,751,677.68 ₱ 3,604,640.72 ₱ 4,510,132.37
₱ - ₱ - ₱ - ₱ - ₱ -
In or out of balance?
Balanced! Balanced! Balanced! Balanced! Balanced!
Table 6.17: 5-year Balance Sheet Projection
Table 6.17 shows SRM Manufacturing – Squarrot Muffin’s Balance Sheet
Projection for years 2018-2022.
Break-even Point
Mini Squarrot Muffin
Yearly BEP in units = Fixed Cost ÷ Margin per unit
= 66609 ÷ 2.84
= 23454 units
Yearly BEP in pesos = Break-even point in units × Unit Price
= 23454 units × ₱5.00/ unit
= ₱ 117,270.00
Monthly BEP in units = Fixed Cost ÷ Margin per unit
= 5550.75 ÷ 2.84
= 1954 units
Monthly BEP in pesos = Break-even point in units × Unit Price
= 1954 units × ₱5.00/unit
= ₱ 9,770.00
Weekly BEP in units = Fixed Cost ÷ Margin per unit
= 1387.69 ÷ 2.84
= 489 units
Weekly BEP in pesos = Break-even point in units × Unit Price
= 489 units × ₱ 5.00/unit
= ₱ 2.445.00
Daily BEP in units = Fixed Cost ÷ Margin per unit
= 231.28 ÷ 2.84
= 81 units
Daily BEP in pesos = Break-even point in units × Unit Price
= 81 units × ₱ 5.00/unit
= ₱ 405.00
Regular Squarrot Muffin
= 66609 ÷ 5.68
= 11726 units
= 11726 units × ₱10.00/ unit
= ₱ 117,260.00
= 5550.75 ÷ 5.68
= 977 units
= 977 units × ₱10.00/unit
= ₱ 9,770.00
= 1387.69 ÷ 5.68
= 244 units
= 244 units × ₱ 10.00/unit
= ₱ 2.440.00
= 231.28 ÷ 5.68
= 41 units
= 41 units × ₱ 10.00/unit
= ₱ 410.00
Package A
= 66609 ÷ 22.98
= 2899 units
= 2899 units × ₱65.00/ unit
= ₱ 188,435.00
= 5550.75 ÷ 22.98
= 242 units
= 242 units × ₱65.00/unit
= ₱ 15,730.00
= 1387.69 ÷ 22.98
= 60 units
= 60 units × ₱ 65.00/unit
= ₱ 3,900.00
= 231.28 ÷ 22.98
= 10 units
= 10 units × ₱ 65.00/unit
= ₱ 650.00
Package B
= 66609 ÷ 16.72
= 3984 units
= 3894 units × ₱45.00/ unit
= ₱ 175,230.00
= 5550.75 ÷ 16.72
= 332 units
= 332 units × ₱45.00/unit
= ₱ 14,940.00
= 1387.69 ÷ 16.72
= 83 units
= 83 units × ₱ 45.00/unit
= ₱ 3,735.00
= 231.28 ÷ 16.72
= 14 units
= 14 units × ₱ 45.00/unit
= ₱ 630.00

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CHAPTER I

INDUSTRY AND COMPETITIVE ANALYSIS

Industry Structure and Performance

specifically, bread and pastry industry. According to Euromonitor (2017), despite

biggest contributors to the global economic growth. According to a study conducted by

development of new products is directed either towards creating something healthier or

As consumers’ lifestyle keeps on changing, demand for different bread and

remaining a key concern.

Table 1: Competitors of Squarrot Muffins

Background of the Company

eating vegetables. According to Hippokratia Medical Journal, excessive use of computers

The SRM Manufacturing is created by eight (8) proponents named Audrey

and affordable solution to the problem of the world today.

The vision of SRM Manufacturing is to be known globally and to be one of the

top performing companies in bread pastry industry.

Nature and Activity of the Business

SRM Manufacturing is a type of manufacturing business. SRM Manufacturing

offers manufactured innovative products specifically, steamed goods made of vegetables.

carrots and squash.

Primary Product or Service

SRM Manufacturing introduces a new product that offers benefits to its

squash and carrots.

Unique Selling Proposition

Aside from incorporating mathematical terms in ‘Squarrot Muffins’, the

especially for people who experiences symptoms of eyestrain. As compared to other

benefit to the customers, the company, and the society at large.

something that is good for their health.

Technical Description of the Product

seven and seventeen-twentieths (7 𝟏𝟕⁄

cheese, seven and seventeen-twentieths (7 𝟏𝟕⁄

centimeters, and a base-diameter of four and a half (4 ½) centimeters as its dimensions. A

regular sized squarrot muffin approximately weighs twenty-five 25 grams.

Figure 3.1: Regular-sized Squarrot Muffin

weighs fifteen (15) grams.

Figure 3.2: Mini Squarrot Muffin

Process A: Preparing the ingredients

milliliters of evaporated milk.

Process B: Preparing the squash

Process C: Preparing the carrots

Process D: Combine the dry ingredients

all together until well-mixed.

Process E: Mix the wet ingredients

soft, yellow-colored mixture.

Process F: Combine all the ingredients

chips into each mold and put it in the steamer.

Process H: Steaming the muffin

heat and let it steam for another 10 minutes.

Process I: Packaging and Quality Control

Process Process Name Precedence

Figure 3.3: Production Process Flowchart

Tools, Machineries and Equipment

Tools, Machineries and

Raw Materials and Supplies

Raw Materials and

Walter Mart 48.00

Time and Motion Study

According to Wikipedia, time and motion study is a business technique

Gilbreth that is commonly used by businesspeople to measure productivity standards of

(60) mini cupcakes and forty (40) regular-sized cupcakes.

A. Preparing the ingredients

B. Preparing the squash

C. Preparing the carrots

D. Combine the dry ingredients

E. Mix the wet ingredients