Final Business Simulation.docx

ABOUT ORGANIZATION

Gummyabas Sister Partnership, an arranged group in which six individuals will share the profits and liabilities of this business venture. This organization was incorporated last 2017 for their tasked in their subject research. Luckily, the product they come up with, showed a potential for having it as a business. As a result, they took the risk and come up with the decision to pursue this research into something profitable and beneficial not just only for the entrepreneurs but also to their target market. Their aim is to provide nutritious, affordable and “makamasang” candy for the community. The “Nutri-Gummyabas Candy” or simply “Gummyabas” featured a unique flavor of guava or “bayabas”. They choose to have this fruit to be converted into candy since at some degree candies are appealing at all ages and easy to consume. Gummyabas Sister Partnership is a manufacturing type of business. A manufacturing business that will use components, parts or raw materials to make a finished good, the “Gummyabas Candy”. These finished goods will be primarily sold directly to the target market, students and faculty of Honorato C. Perez Sr., Memorial Science High School and will ensure that they will give delightful and quality candies at all times. Gummyabas Sister Partnership is new to the business world, also the entrepreneurs consisting the partnership organization are still in the process of learning how to handle things when it comes to the day-to-day operation, management of the task given to each partner and making the needed financial reports of their chosen business. However, they did not see this concept as a major problem for this will serve as a tool for them to gain knowledge and experience battling with the real business competition. And in the near future they will be the young entrepreneurs are one of known for being innovative and that can withstand the upheaval competition in the market.

MISSION AND VISION STATEMENT

To provide nutritious, affordable and “makamasang” candy for the community. Gummyabas young entrepreneurs are one of the most tantalizing business entrepreneurs known for being innovative that can withstand the upheaval competition in the market.

OBJECTIVES 1. To sell budget-friendly guava candy that will provide customer’s value. 2. To earn profit without sacrificing the benefits that the customers will acquire. 3. To establish good customer relation to fully understand their needs and wants.

SWOT ANALYSIS

Strengths: Featuring a unique flavor known as bayabas turn into a candy consumed by many Filipinos. Next, the nutritional value given by the Premiere Medical Hospital dietician that certifies the health benefits of the candy specifically the Vitamin C component. Third, the affordable price that will be released in the market will favor the customers particularly the students. The process of gaining profit quickly is at high chance, for the needed starting capital is small. Surveys always say that candy is appealing at all ages, the probability of loss has a small chance.

Weakness: Since the entrepreneur chose to introduce a new product it will be challenging for them to establish its image. Second, varieties of candies were already released in the market having different flavors. The market location is too small for selling the product tendency is that the number of customer is limited. However, we could barely turn these minor weaknesses into strengths. First, guava is a unique flavor of candy, the satisfaction and curiosity of students of what guava taste likes will surely contribute to our sales for this candy will provide answer to their questions. Having to establish our image will be the concept in our stepping stones. Second, varieties of candies were already released but recently the ABM research teams conducted a forum showcasing different products

Opportunities: The possibility for the product to be known as well as to promote healthy candies for the public. Gummyabas can tie up it known businesses such as Edna’s Cakeland, NE Cakes and Restaurant and other school canteens by improving its packaging and presenting its nutritional benefits.

Threats: The selling period of the product is in a short period of time so the chance of improvement of the product and the business itself is very limited. The competitors from ABM- Ford and ABM- Pacioli comprising of different groups is hard for the entrepreneurs to sell their products. The product will be sold inside the school premises but there are two established stores such as, the school canteen and Mang Rey’s store that serves as the greatest competitor for all the groups.

PEST ANALYSIS

Political: In this case, the school administration will set as the government that will apply its set of rules and regulations. The planned activities of the target market (students) will surely affect the business period. Thus, the permission of the assigned teacher in order to sell is necessary.

Economic: The economic status of students at HCPSMSHS resulted to be at the average level. According to the survey conducted by the entrepreneurs, the student’s allowances was ranging from P100 to P150 pesos and the budget allocated for snacks costs P40-p60 PESOS. In short, affordable snacks will only be suited in this price range.

Social: The social/ typical life of the students will also influence why most of them will tend to purchase the product. Most of the students do not eat raw guava fruit and they are not aware that this fruit contains Vitamins. The concept of Gummyabas was made because of this reason.

Technological: The social media will serve as a platform in their marketing strategies as well as to promote the candy having its benefits. For the production, blender is used for extracting the guava juice easier and faster. Laptop, mobile phones, Internet, USB, printer and PC’s are necessary for advertising and producing necessary documents such as financial reports, business plans, documentation and powerpoint presentations.

4P’s ANALYSIS Product Description: Gummyabas is a soft, chewy, creamy and milky guava-flavored candy that your sweet tooth will not want to miss. It has a promising rainbow-like colors that will not just attract your taste buds but also your sense of sight. The Gummyabas will come into a clean and transparent packaging so that your cravings will get triggered. 

Value it will bring to the consumers:

Since students are the target consumers of the product, it will definitely satisfy their cravings and provide an affordable snack while studying. According to the research conducted, the product Gummyabas is considered to be high source of Vitamin C as stated by a dietician. Thus, consumers will obtain nutritional benefits from the product. 

Subsequent tactical plan on how to reach consumers (4Ps):  Product Gummyabas is a guava-flavored candy that offers delicious taste with a twist that the consumers will surely like compared to the guava fruit. Gummyabas is a pastillas-like candy in a round shape coated with powdered skimmed milk. It has variety of colors such as orange, reddishpink, yellow, green, blue and violet that will made the product more appealing and will indeed catch the attention of sweet/candy lovers. The packaging for the product will be a clear, medium-sized plastic that is typically used by local manufacturers of pastillas and will be sealed correspondingly. There will be a small tag which includes the product’s name and other information relevant for customers that is interested in purchasing and giving comments about the product. The entrepreneurs considered the customer’s preference in formulating the taste, texture and the overall appearance of the candy.  Price Gummyabas will cost fifteen pesos (P15) per pack, consisting of ten (10) pcs. Compared to other existing candies that uses preservatives, the price estimated is competitive enough in the market to be brought by the average students.  Place The entrepreneurs will distribute the product inside the school premises, more specifically inside Honorato C. Perez Sr., Memorial Science

High School located in Mabini Extension, Cabanatuan City. The entrepreneurs will sell the product to the final customers which are mostly students. The students will also be given the privilege of ordering online to purchase conveniently.  Promotion The entrepreneurs will advertise the product by means of room-to-room promotion. The Gummyabas will be based on the student’s preferences on the candy’s taste and appearance. Since internet marketing is inexpensive, social media will be used as a platform in introducing the product through the use of facebook and twitter, thus, will attract a larger potential customer to the business. Moreover, on our opening day, there will be free-tastes that will be given to our target customers.



Sales Forecast

For the first day of selling the product, there will be thirty (30) packs to be sold. The income will amount to P450.00 and the generated profit for the will be P231.00. For the succeeding days, there will be additional 5-10 packs of increase that will be sold for a day. This will depend on the customers’ purchasing power and their desire to consume the product. The range of the additional income per succeeding days will be P75.00P150.00, resulting to added profit of P38.50-P77.00. If there will be changes in the economic activity, the entrepreneurs are open for changes whether it will be inflation or deflation.

ORGANIZATIONAL CHART

Dania Grace F. Gonzales CEO

Ma. Judith H. Batisan VP for Marketing

Hannah Pamela R. Legaspi VP for Financing

Lady Jaleine R. Espino Assistant VP for Marketing

Maria Liana V. Cervantes VP for Production

Joash Natalie S. Ocuaman Assistant VP for Production

CAPITAL REQUIRED

Unlike other manufacturing type of business that the required capital is costly. This business will be needing a small amount compared to other since the materials/ ingredients essential in producing the product is low-cost. For Instance, guava, the main component is widely available here in the Philippines and can be seen at the backyards of Filipinos. In relation to what is stated, producing a candy product is not costly in account of it will just need most of our time and effort. The estimated capital computed by the entrepreneurs will be P 2,500. 00- P 3,000.00 pesos. This required capital in putting up the business will be divided into the six members of the organization. The projected profit after selling the product in the period of 10 days will be P 1, 900.00 – P 2,200. 00 pesos, and same process will be applied, it will also be equally divided into six.

If and only if loss is incurred, it will also be correspondingly parted into six. But, it will leave the entrepreneurs the lesson of “You won’t do everything right. Just Start. Make mistakes. Learn from them and keep moving forward.”

COST OF PRODUCTION

PARTICULARS Guava Cassava Powder Flour Sugar Condensed Milk Food color Plastic for packaging Candle for plastic sealing Stove Gas Pan Strainer Plates Ladle Blender Knife Spoons Black bag Utilities Basin Dishwashing soap with sponge Tissue Total Amount ( Operational) Contingency Fund Transportation Fund Total

QUANTITY ¼ kilo 1 kilo ¼ kilo ½ kilo 1 can 3 colors- Red, Green and Blue 100 pcs or 1 pack 1 piece- large Single burner Mini 1 regular in size 1 piece 2 pieces 1 piece 1 piece 1 piece 1 set 1 piece Specifically Water 1 piece 1 piece 1 roll

AMOUNT IN PESOS P 15.00 P 50.00 P 8.00 P 30.00 P 26.00 P 5.00 P 15.00 P 5.00 P 450.00 P 300.000 P 150.00 P 15.00 P 20.00 P 15.00 P 700.00 P 50.00 P 25.00 P 5.00 P 80.00 P 25.00 P 40.00 P 20.00 P 2,144.00 P 300.00 P 80.00 P 2, 324.00

VALUE STATEMENT

Listed above are the ingredients and equipment that will be used in the production of the Gummyabas Candy. Also, indicated above are the quantity with its corresponding estimated prices. The total estimated cost of the operational expenses is P 2,144.00. The additional expenses which includes the contingency fund that will serve

as the money to be used on unexpected expense that will be encountered, the allotted budget is P 300.00. The transportation fund of the entrepreneurs will be P 80.00 with a total of P 380.00. This will be added to the operational expenses to get the over-all cost of P 2, 324.00.

OPERATIONAL PLAN

Gummyabas Candy is a new, fresh, delicious and nutritious food, snack or candy that will provide satisfaction to student’s cravings at a reasonable and affordable price. This candy concept is developed mainly to provide customer the unique and delightful taste of the fruit “bayabas”. The chosen business will run for about two weeks on a day to day school basis, from Mondays to Fridays starting from 9:00 am to 12:00 pm, this time period is usually the snack time of the students, the primary customer of the business. The business would be found at the gymnasium of Honorato C. Perez Sr. Memorial Science High School so that Junior and Senior High School students will easily locate our stall. The management will also consider to peddle the product similarly at the school grounds so that many customer will possibly be reach by the product being offered. After conducting a feasibility study, the team will consider every data as a foundation of this business such as: the average daily allowances of the student, the allocated budget for snacks and the suggested price bracket for the candy. This information is a great help to achieve all the objectives of the business which to: attain an increasing targeted profit per day, to fill in the wants and needs of the customer, to offer a cheap but pleasurable product promising the warm welcome of our services for the management value customer relation. The goals set by the team should be realized and by achieving those they should think wisely. The team should find suppliers that will give them quality products at a cheaper price and deliberate the concept of purchasing the needed materials in the production in wholesale rather than retail. Having the list of possible supplier and where to locate them is an advantage for a business starting up. For our marketing approach, which is very essential, the team will use several methods to market our business since it is new and the feedback of the customer is important for the business improvement. The team will use social media as a platform for introducing the product for it is cheaper compare to other technique but surely will reach a wide range of customer.

For the process of creating the Gummyabas Candy, the necessary ingredients in order for the product to be made possible would be the following: ¼ kg freshly picked guavas, ½ kg sugar, ¼ kg flour, 1 kg cassava powder, 1 can of condensed milk, may also be added with skimmed milk which is optional based on the preferred choice of the intended customers and food colors for the variation of the Gummyabas Candy to be more appealing. The said ingredients will be gathered and collected practically without sacrificing its quality to be able to make the best of Gummyabas Candy. The tools, utensils, equipment and other materials that are essential for the production of the Gummyabas Candy includes blender, stove, gas, pan, strainer, plates, ladle, knife and spoons. For the packaging of the product, plastics will be used and candles to be used for plastic sealing. The cleanliness of the business place as well as the materials will be properly maintained with the use of paper tissues, black bags, basin and dishwashing liquid with sponge for cleaning utensils. The total amount of one hundred pesos is allocated for the contingency fund reserved for cases of shortage of financial support, sudden additional needs, and other possible risks that may happen during an operational day of business. Checking the records of inventory would be a regular habit daily in order to avoid any discrepancies of materials and ingredients needed to create the product. The business team consists of 6 women. Batisan, Ma. Judith Cervantes, Maria Liana Espino, Lady Jaleine Gonzales, Dania Grace Legaspi, Hannah Pamela Ocuaman, Joash Natalie The business will be managed by the said ABM students of Honorato C. Perez Sr., Memorial Science High School. The management team has the background information in accounting and business organization that will perfectly match the success of the business. Allocation of work and Duty Each team member will have a work allocation that is manageable within the ordinary hours of work (15 hours per week). Maria Liana V. Cervantes and Joash Natalie

Ocuaman will be assigned for the production of the candies as well as the sanitation of the working place. Ma. Judith Batisan and Lady Espino will be in charged of the marketing area where in they will be promoting the product to their target customers. And for the over-all management and financial managing, Hannah Legaspi will be entrusted. Customer Service The team and the business itself will assure the customers that the product Gummyabas will be made from freshly picked guavas. The team will offer affordable, nutritious and delicious candy in one product, the Gummyabas Candy to be able to satisfy and go beyond the expectations of the customers. The team will also be open to suggestions and opinions of the customers by listening to their feedbacks for the improvement of the product offered by the business.