Executive-summary.docx

I.

EXECUTIVE SUMMARY Name of Business

:

Piece of Cake

Location

:

Labo Central Terminal, Labo, Camarines Norte

Name of Proponents

:

Eugene Balindan Gerwin Dioneda

II.

Form of Business Organization

:

Partnership

Payback Period

:

2 Years and 6 Months

Source of Fund

:

Partner’s Contribution

Project Target Implementation

:

January, 2018

VISION AND MISSION Presented below are the vision, mission, and objectives of the proposed business which can that helpthe proponent to motivate himself in the daily business operations. A. Present Situation Today, business industry in the Philippines is rapidly growing. Almost every day, a new business is born. We all know that the Philippines has one of the fastest growing economies in the world, expanding by an incredible 6.1% in the first quarter of this year. In a relatively short amount of time, the Philippine economy has changed almost beyond recognition. Money is flooding into the nation, many are enjoying a higher standard of living than they would ever have dreamed possible, and opportunities are cropping up all

over the place for eager entrepreneurs. While growth is generally occurring in many sectors, there are a few key industries which are shoring up and boosting this economic miracle – the fastest growing of which are explored below. It is cause by the lifestyle of the people and technology which changes from

time

to

time.

www.smallbusinessidear.com/the-fastest-growing-

industries-in-the-philippines/ To be part of the business industry, the group decided to establish a food business. They choose to create a food establishment which will sell cakes, not the ordinary one but a mix of cake, healthful fruits, and sweet cotton candy. The idea of creating variety of cake flavors from the usual cakes available in the market comes from the curious observation on the cakes serve within the country. The business is a food establishment that caters a wide range of candy cakes, in orange, mango, strawberry and an original flavor of cotton candy. One objective of the business is to provide a well satisfying and healthful food for customers. Since the product is a food which happen to be the basic need of man, the proponents believe that this business is profitable. Positive responses are also given to the group that made them more enthusiastic and more optimistic in developing the business. Location is one of the important factors to consider in establishing a business. Piece of Cake will be located at Labo Central Terminal, Labo, Camarines Norte.

The business is a partnership wherein the members agreed to share equal business profits and losses. The owners are also equally liable for the business debts. The two members will be the business managers because both of them have the capacity and able to handle the flow of the business because of the theories they have taken on their course. They will be a great foundation of the organization and management of the business. There may be some instances that the market may refuse on eating the usual, so the group propose to transform their main products into a healthful dessert but still the sweetness, the taste of the combination of fruit and cotton candy will make the people crave for more, right after the first bite. The product proposal of the group is not after the profit but to give their prospected buyers, the taste of satisfaction. Aside from all of these, the group just want to attain its business goals and objectives. B. Vision Piece of Cake envisions to be known as one of the primary producer of cakes in Labo, Camarines Norte. It also envisions to build a unique identity among other cake establishments in the country’s food business industry. C. Mission The Piece of Cake shall provide a delicious cake products that will satisfy the customer’s cravings at the most affordable price.

D. Objectives Piece of Cake aims to be one of the most competitive food business in Daet, Camarines Norte. The goal is : 1. to expand the business by adding more products, enhancing the facilities and hopefully, 2. to put – up branches to its nearby towns and cities.

III. COMPANY OVERVIEW In this chapter, the proponent discussed the company overview of the proposed business including the name, nature,and location; legal business description; licensing and other requirements; and list of the proponent. A. Name, Nature, and Location of Business The group decided to put – up a food business. They believe that having a sweet tooth and being health conscious is hard, since too much sweet may lead into illness. To make it easy, the group agree to build – up a business for everyone to love, cakes with fruits flavors , to make it healthy, and the trademark of the business, cotton candy, to maintain the youthful vibe of the product. Piece of Cake is the entity’s name. It is derived from the business’ unique ingredient namely cotton candy. The products to be sold will be a variety of fruit flavors and cotton candy cake. Piece of Cake will be located at Labo Central Terminal, Labo, Camarines Norte. After careful observation on the target location, the group decided to rent enough space for the business to operate

To start the business operations, the group estimated capital is Php 800, 000.00. The said capital will be shared equally by the two associates of the entity which amounts to Php 400,000.00 each as an initial investment for the business. Each of the associates will either get money from their savings along with their own source of income like their other business and employment salary, or borrow funds from the bank and other microfinancing company. B. Legal Business Description Below is the legal business description of the proposed business including the permits and licenses, and list of proponents. C. Permits and Licenses The issues coordinated in putting up a new business are: applying for the business name and the completion of the requirements needed. The requirements are as follows: 1. Barangay Business Clearance 2. Annual Building Inspection Clearance 3. Fire safety Clearance 4. Locational Clearance 5. Health Clearance 6. Sanitary Clearance 7. Garbage Fee 8. Business Plate/Stickers 9. Community Tax Certificate 10. Mayor’s Permit

11. Securities and Exchange Commissions (SEC) 12. Bureau of Internal Revenue (BIR)

D.

List of Proponent The proposed business will be owned and managed by the proponents : 1.

GERWIN L. DIONEDA, a part – time college instructor at Sta. Elena

(Cam. Norte) College, a business – owner, and a student of Master in Business Administration (MBA) in Camarines Norte State College (CNSC). He is a graduate of Bachelor of Business Administration (BBA) at the Polytechnic University of the Philippines – Sta. Mesa, Manila. 2.

EUGENE L. BALINDAN, a Certified Public Accountant (CPA), a

regular employee at LANDBANK – Labo Branch, and a student of Master in Business Administration (MBA) in Camarines Norte State College (CNSC). He is a graduate of Bachelor of Science in Accountancy (BSA) at the Polytechnic University of the Philippines – Sta. Mesa, Manila. The proponents has the acquired relevant skills and knowledge especially in fiscal management to be able to run a business with liquidity.

IV.

PRODUCTION PLAN A. Manufacturing Process

LISTING OF INGREDIENTS • All ingredients in manufacturing the cotton candy cakes and rolls are listed.

PURCHASING OF ITEMS • Acquiring all those listed ingredients needed for the enterprise. This will be done once a week. Ingredients sold will have to create 199 cakes in a week, 66 cakes a day (10356cakes per year/156 days) • *156 days will be the number of days that the baker will report for duty in a year that is 3times a week.

STORING PURCHASED ITEMS • Purchased items that are not yet needed in the process will be stored and may be used in other days.

COTTON CANDY CAKES PRODUCTION PROCESS • Cleaning of utensils to be used • Preparation of Ingredients • cakes will be done in an hour or less. • ovens' capacity are from 8-10 cakes per 30-40 minutes.

Figure 1 Manufacturing Process for Piece of Cake

Sift flour, sugar, baking powder, and salt together into bowl. Make a well in center.

Preheat oven to 325 degrees F (165 degrees C)

Put egg yolks, vegetable oil, flavoring, fruits or cotton candy (depending on what flavor of cake and vanillaPuP into well. In a large bowl, beat egg whites and cream of tartar in mixing bowl until very stiff.

Using same beaters, beat egg yolk – flour mixture until smooth. Pour batter into pan.

Bake in oven for 60 to 70 minutes

Figure 2

Production Process for Piece of Cake

Remove from pan. Finish with the icing like cotton candy on top and in the middle, and other flavors if any.

Operation Process

The service crew on duty will greet the customer upon arrival.

The service crew on duty then takes the customers' orders.

Do the suggestive selling.

The service crew must repeat the orders and say the total amount clearly.

The service crew will get the right amount of payment.

The service crew will prepare the order.

The service crew will get the order in the refrigerator.

If the order is a round cake or roll, the cake will be put to the cake's corresponding box. If it is a slice, the crew will put it in a cake slice canister.

Present the order to the customer. Then, thank the customer and ask them to come again.

Figure 3 Service / Operation Process

Store Location

Figure 4 Map Location

Figure 5 Selling Area/Plant Area for Piece of Cake

V. MARKETING PLAN

The two associates will conduct its business at Labo Central Terminal, Daet, Camarines Norte, thus having the people on their departure and arrival, and those who passing along the area will be its target market. Along with the business location, there are other cake’s store and establishment in the nearby towns like in Daet. Having a real fruits on the main course of the product and paired it with coffee, it is known that the cake’s nutrients content is a necessity to the passengers and tenant’s health. Being paired with coffee, it can boost the body condition of customers as they went through a long day. The group will be able to conduct its business after getting and completion of their business

permits and other legal requirements and documents. The

location has somehow had a never ending passers – by who would be Piece Cake’s possible customers. This scenario will be very advantageous to the business. The spending capability of consumers has a connection with the age bracket and lifestyle. Ages fall under 16 – 21 whose allowance is limited for the bracket which are mostly students which may not frequently buy the product. Ages 22 – 30 may have their own money but still quite limited for them to buy the product because of their salaries. Ages 31 and above have the potential to spend and buy the product often because they got regular jobs.

IV. ORGANIZATION AND MANAGEMENT In this chapter, the proponents discussed the organization and management of the proposed business including its organizational structure, list of officers, job descriptions, and compensation allowance of officers. A. Proposed Organizational Structure The proposed organizational structure shows the hierarchical arrangement of lines of authority, communications, rights, and duties of the team members. The said structure determines how the roles, power, and responsibilities are assigned, controlled, and coordinated; and how information flows among the different levels of management. The proposed business will be composed of the managers as the overall head of the organization, a bookkeeper which will also serve as the financial officer, a head baker, an assistant baker , and the service crew. All of them will also act as production worker who will help in the operations of the business to ensure that it is being run effectively and efficiently. One important factor of the business process is the labor force. Piece of Cake must have good, cooperative and loyal employees and a well-coordinated management team in order to work efficiently and effectively, as well as to provide quality products to customers and to maintain good relationship and good environment for their satisfaction.

MANAGERS

BOOKKEEPER

PRODUCTION AREA

HEAD BAKER

STORE AREA

ASSISTANT BAKER

SERVICE CREW

Figure 6 Proposed Organizational Structure

B. Organizational Policies

Production Policies The policies and guidelines of the production area of the company are as follows: 1.

Working hours start from 10:00 A.M. – 6:00 P.M. Mondays to Sundays.

2.

Employees must make sure that the equipments and other tools for production are clean and are in good condition.

3.

The Head Baker and the Assistant Baker will report to duty every Monday, Thursday and Saturday.

4.

Tardiness for three (3) times a month will be considered one absent and it will be deducted from their salaries.

5.

The management will only allow three (3) absences per month, if the employee will exceed the total number of allowed absence, he/she will be dismissed from work. Absence will be deducted from their salaries.

6.

When in work, the employees should wear the required uniform and they must wear the company ID to be easily recognized.

7.

Any employee, who, in time of work, meets an accident that will cause him to be temporarily out of service shall be entitled to his/her salary during temporary disability.

8.

Employees who have completed annual service will receive 13th Month Pay.

9.

At the end of working hours, employees should make a daily report and submit this the following day for the record of the bookkeeper.

C. Store Area Policy The policies and guidelines for Piece of Cake’s store area are as follows: 1.

Working hours start from 9:00 A.M. – 9:00 P.M., from Monday to Sunday.

2.

There will be shifting of work for the service crews. First shift is from the store’s pre-opening, 8:00 A.M., respectively, to 3:00 P.M. Last shift is from 3:00 P.M. to the store’s closing time, 9:00 P.M. but will stay until 10:00 P.M. for the store’s daily inventory.

3.

Any employee, who, in case of tardiness of the counterpart will be entitled to additional Fifty (50) Pesos per hour that the counterpart is late.

4.

Employees, during work hours, must wear the required uniform and the company ID for easy recognition.

5.

Tardiness for three (3) times a month will be considered as absent and will be deducted from the employee’s salary.

6.

Only three (3) absences per month will be allowed by the management. If the employee exceeds to the total number of allowed absence, he/she will be dismissed from work. There will be deduction in the salary in case of being absent.

7.

Any employee, who, in time of work, meets an accident that will cause him to be temporarily out of service shall be entitled to his/her salary during temporary disability.

8.

Employees who have completed annual service will receive 13th Month Pay.

9.

Each employee, at the end of each shift, shall prepare an ending inventory and submit it the following day for the records of the bookkeeper.

D. Staffing and Costing Bookeeper Job Qualification 1.

Graduate of Accountancy or Banking and Finance

2.

Must have at least two years of experience

3.

Worthy of trust

4.

Must be hardworking

5.

Practices punctuality Head Baker

Job Qualification 1.

Must be 25 – 30 Years Old

2.

Must have at least Five (5) years experience in baking and cake decorating

3.

Must be hardworking

4.

Practices punctuality

5.

Must present a self-baked cake on the interview to show expertise. Assistant Baker

Job Qualification 1.

Must be 20 – 25 Years Old

2.

Must have at least 2 years experience in baking and cake decorating

3.

Must be hardworking

4.

Practices punctuality

Service Crew Job Qualification 1.

Must be at least 18 – 25 Years Old

2.

With pleasing personality

3.

Should be flexible and can perform multi-tasking works

4.

With good communication skills

JOB REQUIREMENTS 1.

Comprehensive resume with recent 2” x 2” picture

2.

NBI Clearance

3.

Police Clearance

4.

Medical Certificate

5.

Barangay Clearance

6.

SSS

7.

Philhealth

STAFF REQUIREMENT

BOOKKEEPER

1

HEAD BAKER

1

ASSISTANT BAKER

1

SERVICE CREW

1