Mania-empanada.docx

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A FEASIBILITY STUDY Presented to the College of Management and Accountancy PHINMA Araullo University

___________________

In Partial Fulfillment of the Requirements for the Degree BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATIONMARKETING MANAGEMENT ___________________

By Queenie May Alfonso Angelica Antonio Royse May Liwag Lexter Rodriguez Shiena Lou Sindanum Asnia Sultan Charles Earl Tabije Henessey Tabilon

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CHAPTER I INTRODUCTION AND BACKGROUND OF THE STUDY

Introduction Many countries around the world claim the empanada as one of their own. Empanadas are in Spain, Portugal, Caribbean, Latin America, and in Philippines and empanada is very essentially stuffed pastry. From morning, most of us frequently buy breads from a vendor who used bike or other vehicles to sell their products across different streets or we usually buy breads to our valid home based bakeries, bread can also be at snack time it

can

be

partnered

with

hot

Choco,

fruit

juices

or

other

beverages. Empanadas are complete little meals unto themselves; everything you need is meat, vegetable, cheese, sauce -that is neatly wrapped into a tasty crust, ready to travel. Like all great street food, empanadas can be eaten on the go with little fuss or mess. They taste good at room temperature, but they heat up quickly in the microwave or toaster oven, making them ideal for breakfast on the go. Their flaky crust soaks up the flavor of the filling and enhances it, whether it's vegetable, chicken, beef or seafood. The name comes from the Spanish verb empanar, meaning to

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wrap or coat in bread. Usually the empanada is made by folding a thin circular-shaped dough patty over the stuffing, creating its typical semicircular shape. Empanadas are also known by a wide variety of regional names. It is likely that the Latin American empanadas were originally from Galicia, Spain, where an empanada is prepared similar to a pie that is cut in pieces, making it a portable and hearty meal for working people. The empanada is usually prepared with cod fish or chicken.

This feasibility will provide satisfaction to the students and employees of PHINMA - Araullo University by making different variety flavors of empanada. The researchers will aim to know what variety of flavors does the individual wants by conducting evaluation and strategies. Review of Related Literature Foreign Related Literature Pierre Polaine Bakery, 1932 Established by Pierre Poilane of Pierre Poilane bakery in 1932,

this

bakery

continues

to

bake

Sourdough

bread

has

stood

bread

baked

in

from

the

test

the

original

stone-ground

of

time.

Son

wood-fired

flour

is

Lionel oven.

especially

4

here,

as

are

exquisite

butter

cookies.

The

unique

online

ordering system offers potential original gifts, or the chance to keep up your bread habit of your trip to Paris is temporary.

Winner of the 2010 prize for best baguette in Paris, this prestigious bakery located in the heart of Montmartre is run by Michael Galloyer, a member of France’s “AcademieCuliniaire”.

Reference:http//www.newyorker.com/magazine/2012/12/03/breadwinner

Local Related Literature Building a household name: The success story of Julie's Bakeshop An ordinary housewife making ends meet by selling bread did not expect she could build a corporation and then some. “I asked God for only one,” says Julia Gandionco, her grateful way of saying she was given much more. Indeed, the community bakeshop turned

bakery

chain

that

is

Julie’s

Bakeshop

is

not

just

a

simple family venture but a household name. A bakery chain that traces its roots from a small town in Mandaue City in Cebu, Julie’s Bakeshop grew from a small store that supplied bread to canteens to become the country’s largest network of bakeshops with

a

total

of

more

than

500

branches

to

date.

Joseph Gandionco, president and CEO of Julie’s Franchise Corp.,

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saw how the family’s humble bakery came to be what it is now. “From Day 1, I was there helping [my mother Julia]. I was the one available at that time. The older ones were all working, the younger ones were studying. I just graduated then,” he says. This was in the 1970s, and Julia was managing three canteens that

needed

a

steady

supply

of

bread.

With nothing to do just yet, young Joseph helped out by picking up bread from various bakeshops. During one of those deliveries, a baker suggested they put up their own bakeshop since they needed so much bread every day.

Without any bakery

experience, Julia took up the idea. Source:

http://pinoyandpeso.blogspot.com/2012/01/julies-

bakeshop-success-story.html 

Capital



Location



Preparation time and operating hours



Staff



Product shelf life



Sanitation and safety

6

Conceptual Framework The framework

researchers of

the

use

study

the

that

IPO will

Model serve

in as

formulating a

guide

the

for

the

how

the

researchers in doing the entire study. INPUT



   

PROCESS

Demographic profile of the respondents:  Name  Course  Gender  Age Marketing Aspect Technical Aspect Management Aspect Financial Aspect

OUTPUT

Survey Questionnaire and Data analysis

A FEASIBILITY OF ESTABLISHING “EMPANADA MANIA” IN PHINMAARAULLO UNIVERSITY

Figure 1 Paradigm of the Study Figure

1,

Paradigm

of

research will be conducted.

the

study

shows

the

way

7

Statement of the Problem 1.)

How the feasibility of the Marketing Aspect of this study be described in terms of:

2.)



Market Description



Demand Analysis



Supply Analysis



Demand and Supply Analysis



Competitive Position



Marketing Program



Projected Sales

How the feasibility of the Technical Aspect of this study be described in terms of: 

Product Description



Manufacturing/Production Process



Plant Size and Production Schedule



Machinery



Plant Location



Plant Layout



Building and other facilities



Raw materials and supplies



Utilities/Facilities

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 3.)

How

Waste Disposal

the

feasibility

of

the

Management

Aspect

of

this

study be described in terms of:

4.)



Form of business organization



Capitalization



Organizational structure



Personnel and manpower requirements



Duties and responsibilities of personnel



Qualification standards of personnel



Legal requirement



Company policies

How the feasibility of the Financial Aspect of this study be described in terms of:

5.)



Total project cost/Capital requirement,



Sources of funds,



Terms and conditions of creditors,



Projected financial statements,



Schedules,



Financial analysis?

How the Project Implementation and time table of the project be described?

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Significance of the Study This research will be studied to know if it is effective to construct the “EMPANADA MANIA” in PHINMA- Araullo University. The result of the study will greatly benefit the following: Students - The result of the study will be a great help for the students in order for them to gain knowledge about how to put this kind of business and to give them satisfaction from the product. The

Researchers-

information

to

This

study

may

contribute

the

researchers,

thus,

formerly

unknown

increasing

their

knowledge. Future Researchers- this study will help the future researchers for the reason that they may use this as their guide in their future researches. Scope and Limitation The researchers will conduct this study within the campus of PHINMA-Araullo, Brgy. Bitas, Cabanatuan City and the students are

the

gathering personal

respondents data

of

through

interviews

and

the

study.

conducting will

be

semester of school year 2016-2017.

This

survey conducted

study

focused

questionnaires during

the

in and

first

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Chapter II Market Study

Market Description PHINMA

-

Araullo

University

is

one

of

the

most

leading

universities in Nueva Ecija by continuously giving affordable and high quality education with the belief of “Making Lives Better”. Through the years, PHINMA Araullo University acquire a large number of enrollees every year. The growing population of PHINMA Araullo University indicates the increase in demand for food/snacks inside the university. The proposed business the “Empanada Mania” is related in providing

snacks

particularly

breads

inside

PHINMA

Araullo

University with the continuously growing population of students and by providing them an affordable and healthy snacks for the students and employees of the university. Research Design The

researchers

used

a

descriptive

method

of

research

because it is the most appropriate and convenient method to use. Descriptive research is a fact-finding approach with adequate and accurate presentation, analysis and interpretation of the data gathered from the respondents. Descriptive research, also known

as

the

statistical

research,

describes

data

and

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characteristics studied.

about

Descriptive

the

population

research

answer

or

the

phenomenon

question

being

who,

what,

where, when and how. Materials and Instrument The researchers used questionnaire in collecting data from the respondents of PHINMA Araullo University. A questionnaire is a research instrument consisting of a series

of

questions

and

other

prompts

for

the

purpose

of

gathering information from the respondents (Tan, 2010). The purpose of using a questionnaire in the study is that it is practical; it can collect information from a small or large number of

people in a

relatively

effective

cost

short

way;

and

period of time it

can

be

and in a

analyzed

more

scientifically and objectively than other forms of survey. The formulated questionnaire was preceded by a cover letter that

introduces

the

researcher,

explains

the

purpose

of

the

research and it solicits assistance in providing the required information.

After

the

cover

letter

follows

the

two-part

questionnaire; the profile of the respondents that enclosed the individual’s

information

makes

up

the

first

part

of

the

questionnaire. The second part of the questionnaire encompasses the questions pertaining on establishing a kiosk of Empanada Mania.

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To whom it may concern, The researchers respectfully request your kind permission to answer the questionnaire in relation to our Business Planning and Research subject in studying the Project Feasibility Study on Establishing “Empanada Mania in PHINMA Araullo University”. Your cooperation will surely be appreciated. Thank you for your kind consideration. Respectfully yours, Researchers

Survey Questionnaire Name (Optional): _____________________________ Course/Department:___________________ Age: _______

Gender:

Male

Female

Instruction: Shade/Check the box for the choice of your answer. 1. Do you eat empanada? Yes

b

No

If No, do not proceed to the next questions. 2. How often do you eat empanada? Everyday

Once a week

Twice a week

Once a month

3. What variety of empanada do you prefer to eat? strawberry sisig ube tuna

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4. How much are you willing to pay for an empanada? 12php

22php

20php

30php

5. If we establish a kiosk of empanada Mania inside PHINMA Araullo University will you patronize it? YES

NO

COMMENTS AND SUGGESTIONS From

the

choices

and

questions

above,

do

you

have

any

comments and suggestions? If any, please write on the space provided.

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SURVEY QUESTIONNAIRE DEMOGRAPHIC PROFILE GENDER TABLE 1 NO. OF RESPONDENTS

PERCENTAGE

MALE

11

22%

FEMALE

39

78%

TOTAL

50

100%

AGE TABLE 2 NO. OF RESPONDENTS

PERCENTAGE

15-20 YEARS OLD

47

94%

21-30 YEARS OLD

3

6%

30 AND ABOVE

0

0%

TOTAL

50

100%

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TALLY SHEETS 1. Do you eat empanada? TABLE 3 NO. OF RESPONDENTS

PERCENTAGE

YES

50

100%

NO

0

0

TOTAL

50

100%

2. How often do you eat empanada?

TABLE 4 NO. OF RESPONDENTS

PERCENTAGE

EVERYDAY

0

0%

ONCE A WEEK

4

8%

TWICE A WEEK

10

20%

ONCE A MONTH

36

72%

TOTAL

50

100%

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3. What variety of empanada do you prefer to eat?

TABLE 5 NO. OF RESPONDENTS

PERCENTAGE

STRAWBERRY

8

12.30

SISIG

18

27.69

UBE

15

23.08

TUNA

24

36.92

TOTAL

65

100%

4. How much are you willing to pay for an empanada?

TABLE 6 NO. OF RESPONDENTS

PERCENTAGE

12php

26

52%

20php

20

40%

22php

3

6%

30php

1

2%

TOTAL

50

100%

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5. If we establish a kiosk of empanada Mania inside PHINMA Araullo University will you patronize it? TABLE 7 NO. OF RESPONDENTS

PERCENTAGE

YES

49

98%

NO

1

2%

TOTAL

50

100%

Comments and Suggestions: 

“I LOVE EMPANADA”



“ALSO ADD GINILING FLAVORED EMPANADA FOR MORE VARIATION”



“IN THE QUESTION 4 WE OR US WOULD LIKE TO BUY A CHEAPEST FOOD. AND I WILL BUY YOURS.”  

WHAT IS EMPANADA?

“FOR ME YOUR PRODUCT IS NOT EMPANADA ITS EMPANADITA”

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Demand Analysis Demand analysis is a marketing study used to determine what type of customers are willing to buy a particular product and how many units they are likely to buy and at what price range. This information

is

then

used

to

plan

advertising

strategies,

determine selling cost and make product modifications.

Historical Population of PHINMA Araullo University for the Past Five Years TABLE 8 Average No.

Average No.

of Students

of Employees

2011-2012

5,314

176

5,490

2012-2013

5,505

185

5,690

2013-2014

6,027

180

6,207

2014-2015

6,952

189

7,141

2015-2016

7,639

263

7,902

YEARS

TOTAL POPULATION

The table above shows the historical number of students and employees of PHINMA Araullo University for the past five (5) years. It indicates from the year 2012 – 2016 and this will used to determine the population growth rate of the university.

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Growth Rate of Annual Population of PHINMA Araullo University

TABLE 9 YEAR

POPULATION

GROWTH RATE

2011-2012

5,490

2012-2013

5,690

3.64%

2013-2014

6,207

9.09%

2014-2015

7,141

15.05%

2015-2016

7,902

10.66%

TOTAL GROWTH RATE AVERAGE GROWTH RATE

0

38.43% 9.6%

The table shows the growth rate, the total growth rate and the average growth rate of the historical number of population of PHINMA Araullo University for the year 2012-2016. By using this table, the researchers projected the number of population for the next five year.

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Projected Population of PHINMA Araullo University for the next five years (2016-2021) TABLE 10 YEAR

POPULATION

2015-2016

7,902

2016-2017

8,661

2017-2018

9,492

2018-2019

10,403

2019-2020

11,402

2020-2021

12,497

The table shows the projected number of population of PHINMA Araullo University for the next five years. The researchers used the

formula,

the

projected

demand

for

the

year

2016

by

multiplying the number of population for the year 2015 by the average growth rate of 1 + 9.6%. And the formula applies for the next five years (2016-2021). A positive growth rate indicates an increasing number of populations annually.

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EFFECTIVE DEMAND TABLE 11 Projected Number of Population

Year

Question no. 1

Potential Demand

100% 2016-2017

8,661

8,661

8,661

2017-2018

9,492

9,492

9,492

2018-2019

10,403

10,403

10,403

2019-2020

11,402

11,402

11,402

2020-2021

12,497

12,497

12,497

Question no. 1 –Do you eat bread? 100% answered YES. Table Question

shows no.1.

the Using

market the

demand

table,

and

the

the

percentage

researchers

got

projected demand of “Empanada Mania” for the next five years.

Effective Demand = Projected Population X Question no. 1

of the

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Projected Demand for the next five years (2016-2020) 2016-2017 TABLE 12

EFFECTIVE DEMAND

% OF RESPONDENTS

POTENTIAL DEMAND

FREQUENCY Every day (200 days) Once a week (40 weeks) Twice a week (80 days) Once a month (10 months)

8661

0%

0

8661

8%

692.88

8661

20%

1732.2

8661

72%

6235.92

TOTAL

100%

8661

EFFECTIVE DEMAND PER CHOICES 0 27715.2 138576

62359.2

228650.4

2017-2018 TABLE 13 EFFECTIVE DEMAND

% OF RESPONDENTS

POTENTIAL DEMAND

FREQUENCY Every day (200 days) Once a week (40 weeks) Twice a week (80 days) Once a month (10 months)

9,492

0%

0

9,492

8%

759.36

9,492

20%

1899.2

9,492

72%

6,834.24

TOTAL

100%

9,492

EFFECTIVE DEMAND PER CHOICES 0 151872 151936

68342.4

372150.4

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2018-2019 TABLE 14 EFFECTIVE DEMAND

% OF RESPONDENTS

POTENTIAL DEMAND

FREQUENCY Every day (200 days) Once a week (40 weeks) Twice a week (80 days) Once a month (10 months)

10,403

0%

0

10,403

8%

832.24

10,403

20%

2080.6

10,403

72%

7490.16

TOTAL

100%

10,403

EFFECTIVE DEMAND PER CHOICES 0 33289.6 166448

74901.6

274639.2

2019-2020 TABLE 15 EFFECTIVE DEMAND

% OF RESPONDENTS

POTENTIAL DEMAND

FREQUENCY Every day (200 days) Once a week (40 weeks) Twice a week (80 days) Once a month (10 months)

11,402

0%

0

11,402

8%

912.16

11,402

20%

2280.4

11,402

72%

8209.44

TOTAL

100%

11,402

EFFECTIVE DEMAND PER CHOICES 0 36486.4 182432

82094.4

301012.8

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2020-2021 TABLE 16 EFFECTIVE DEMAND

% OF RESPONDENTS

POTENTIAL DEMAND

FREQUENCY Every day (200 days) Once a week (40 weeks) Twice a week (80 days) Once a month (10 months)

12,497

0%

0

12,497

8%

999.76

12,497

20%

2499.4

12,497

72%

8997.84

TOTAL

12,497

100%

EFFECTIVE DEMAND PER CHOICES 0 39990.4 199952

89970

329912.4

The tables show the total demand for the next five years in frequency,

by

multiplying

the

percentage

of

respondents

who

answered every day, once a week, twice a week, and once a month to the projected market demand for the year 2016, 2017, 2018, 2019 and 2020. By using this table, the researchers got the Demand and Supply Gap.

Competitive Advantage The proposed project had a great opportunity to have a competitive advantage on the market and be position on the mind of

its

target

market

because,

at

the

first

place

it

offers

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affordable,

high

quality

and

healthy

products

that

consumers

consider. SWOT ANALYSIS FIGURE 2 STRENGTH  

WEAKNESS

Affordable price Has

different



variety

Limited capitalization

of

flavors 

No competitors



Easy to prepare

OPPORTUNITIES 

THREATS

Student’s craving for new taste No entrants of competitors



Referrals

from

students

regarding the product Growing students University

Number of Market Participants







population inside

of the

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STRENGTHS Affordable prices- affordable price attracts customer and that is one of the main reasons why we chose to have an affordable price but never sacrificing the quality of the products. Different variety of flavors- students want to experience new products

and

they

always

want

to

try

everything,

we

offer

different variety of flavors for them to have an options and to offer something new that will truly satisfy to their hunger. Easy to prepare- empanada is easy to prepare, and when it’s easy to prepare we could serve the product for customer as quick as we can. WEAKNESSES Limited capitalization-The business will have a limited capital to expand the business into other places. OPPORTUNITIES Individual’s

Favorite-

people

are

curious

especially

the

students, it will serve as an opportunity to attract them to buy our different flavors of empanada. No entrants of competitors- This might be a good opportunity to grab if you have no competitors in the market, you will have an opportunity to dominate the market and make profit.

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Annual Increasing population of students- because of its growing population, it is an opportunity to have a large amount numbers of customers. THREAT Number of Market Participants- A numerous number of market participants that offers direct and substitute product indicates a stiff competition and result to the customer to have a low level in switching cost that result to easy change of mind.

Distribution Channels

Distribution Channel of “Empanada Mania”

The above figure shows the Channel Distribution of Empanada Mania. The proposed business had its own supplier that serves as the source of ingredients that is needed to produce the product.

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Since

Empanada

is

a

common

product

in

the

market,

the

proposed business chose this kind of channel distribution which is to sell the product direct to its customer.

Marketing Programs A marketing program is a coordinated, thoughtfully designed set

of

activities

that

helps

achieve

the

marketing

objectives. Marketing objectives are strategic sales goals that fit the strengths and are a good way to stretch your business in its

current

situation.

In

order

to

build

strong

customer

relationships and maximize the sales, it will need to put every possible marketing tool that will work. A. Product The

researcher

will

offer

an

Empanada

with

different

variety of delicious flavors that will lead into satisfaction for the students of PHINMA Araullo University.

EMPANDA MANIA EMPANADA SISIG EMPANADA UBE TUNA EMPANADA STRAWBERRY EMPANADA TABLE 17

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B. PRICES The

researchers

will

offer

empanada

products

with

affordable price with satisfying feeling to every students of PHINMA Araullo University.

EMPANDA MANIA

PROJECTED PRICES

EMPANADA SISIG

P 12 PER PIECE

EMPANADA UBE

P 12 PER PIECE

STRAWBERRY EMPANADA

P 15 PER PIECE

TUNA EMPANADA

P 15 PER PIECE

TABLE 18 C. Place The researchers chose to locate the business in Cabanatuan City. The exact location is inside PHINMA Araullo University, main

campus,

located

Cabanatuan City.

in

Brgy.

Bitas,

Maharlika

Highway,

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D. Promotion The

researchers

of

the

proposed

project

used

different

marketing strategy in order to introduced The Empanada Mania to get the attention of the prospective customer.

These are some promotion strategies:

A. Banner

B. SOCIAL MEDIA

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Chapter III Technical Aspect

In this aspect, the objective is to determine to what extent the proposed

business

meets

the

technical

feasibility,

which

includes the supply of raw materials to be used, the list of equipment product,

and the

tools labor

required needed

for

and

the

other

preparation

of

the

requirements

that

are

necessary to operate the business.

Product Design The business provides a line of homemade empanada products. We all know that Filipino loves different flavors, so Empanada Mania will offer five flavors of empanada; sisig empanada, tuna, shrimp and ube empanada and caramel de apple empanada that will surely catch the taste buds of every customer. Empanada

DESCRIPTION

Sisig An empanada filled with delicious pork sisig.

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Ube An empanada filled with Filipinos old time’s favorite sweetened ubehalaya.

Tuna An empanada filled with deliciously Filipino’s favorite typical tuna.

STRAWBERRY An empanada filled with tasty flavor of strawberry.

TABLE 19

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Packaging

The picture above shows the sample package for the proposed product.

Manufacturing and Procedure TABLE 20 BREAD DOUGH 4.2 kg 1st Class Flour

1/2 kg Brown Sugar

1/2 tbsp. Salt

1/4 kg Shortening

2 L Water

3 tbsp. Instant Dried Yeast

2 tbsp. Bread Improver

2 tbsp. Anti-Mold

34

Procedure: Step 1: Prepare all the ingredients and materials needed Step 2: Put together all the dry ingredients on the mixing bowl: the flour, brown sugar, salt, instant dried yeast, shortening, bread improver and anti- mold then mixed Step 3: Add the water and the margarine then stir it until it becomes soft solid dough Step 4: Then cut for the desired sizes and set aside

Machinery and Equipment TABLE 21 Utensils

Wooden Spoon set

Tong

Function

It is used for mixing, serving and preparing foods.

It is used for holding, cooking and serving foods.

Supplier

Quantity

Unit Cost

Total Cost

Novo Ecijano

1

₱150

₱150

Novo Ecijano

2

₱30

₱60

35

Hand Whisk

This tool helps to easily beat the ingredient s, like eggs.

Novo Ecijano

1

₱100

₱100

Abenson

1

2500

2500

Hongkong Bazaar

1

2000

2000

Oven Used to bake the empanada

Table

Used for preparing the breads

Total: 4,810

SANITARY NEEDS TABLE 22 Sanitary Pot Holder

Cleaning Towel

Function A piece of textile used to hold hot kitchen equipment like pots and pans. Used to dry hands

Supplier

Quantity

Unit Cost

Total Cost

Robinson’s Department

5pcs./pack

₱95

₱95

36

and for sanitation purposes.

Dishwashing Liquid (250ml)

Sponge and Scrub

Disposable Gloves

Trash Bin

Used to wash plates and utensils and other materials.

Used to clean plates and other utensils.

Used for handling product to avoid contaminat ion.

Robinson’s Department

15pcs./pac k

₱34

₱34

Robinson’s Supermarke t

2

₱69

₱138

Robinson’s Supermarke t

2

₱37

₱74

3

₱25

₱75

2

₱120

₱240

Robinson’s Department

Used for garbage disposal. Robinson’s Department

37

Broom

Dustpan

Apron

Hairnet

TOTAL: 1,192

Used to sweep the floor.

Used to collect dust and waste.

It is a protective garment used to protect clothes from stains during food preparatio n It is used to prevent hair falling on food product.

Robinson’s Supermarke t

1

₱211

₱211

Robinson’s Department

1

₱80

₱80

Robinson’s Department

2

₱70

₱140

3

₱35

₱105

Robinson’s Department

38

SUPPLY TABLE 23 Supplies Ball pen

Calculator

Log Book

Scotch tape

Scissor

Function Used in writing important details or documents.

Supplier

Quantity

Unit Cost

Total Cost

Ang Tiaga

2

₱3

₱6

Ang Tiaga

1

₱159

₱159

Ang Tiaga

2

₱40

₱80

Ang Tiaga

1

₱6

₱6

Ang Tiaga

2

₱20

₱40

Used for computation.

Used for recording and reference purposes.

It is used to tighten the packaging of the breads. It is used for cutting purposes.

39

Paper Bag

It is used to hold the bread and serve it. Ang Tiaga

Tissue

100 pcs./pack

₱25

₱25

100pcs./p ack

₱50

₱50

For sanitary purposes. Robinson’s Supermarke t

TOTAL: 366.00

Raw Materials and Supply TABLE 24

Raw Materials

All Purpose Flour

Function

Quantity

Unit Cost

Total Cost

It is the main ingredients in special

5.2 kg

44/kg

228.8

40

breads like crinkles and ensaymada.

Brown Sugar

It is used to sweeten the ordinary breads and dough mixture.

1.3 kg

42/kg

54.6

Baking Powder

A kind of leavening agent and usually in powder form also it is used in the production of cakes, quick breads and others. It is used to make dough, more often this ingredient is used to avoid the stickiness of the dough to the sheet pan. Used in making special breads.

0.045 kg

90/kg

4.05

0.27 L

110/L

29.7

66 pcs.

6/pc.

396

Corn Oil

Egg

41

Ube

Tuna

Sisig

Shrimp

TOTAL: 1703.15

To be filled in the dough as the flavor

To be filled in the dough as the flavor

2kl

45/kl

90

3kls

50/kl

350

200

200

Made of giniling to be filled in the dough as the flavor

To be filled in the dough as the flavor

50pcs

7/pc

350

42

Land and Location Layout FIGURE 4.

PHINMA ARAULLO UNIVERSITY

Empanada Mania will be located at Administration Lobby of PHINMA Araullo University.

Kiosk Layout FIGURE 5

43

Kiosk Dimension FIGURE 6

Stall Materials for Kiosk

Materials

Supplier

Plywood 3/4

Grand Capitol & LC Construction Center

Nail (size 2 ½ )

Grand Capitol & LC Construction Center Grand Capitol & LC Construction Center Grand Capitol & LC Construction Center

Nail (size 2 ) Stil wel 1/2 L

Unit Cost 1,150 /pc

Quantity

Total Cost

5

5,750

50/kg

1 kg

50.00

50/kg

1 kg

50.00

115/L

1/2 L

115.00

44

Paint PreMix Paint (Umbrella Design) TOTAL: 6,349

Grand Capitol & LC Construction Center Ang Tiaga

62/L

2

124.00

26/10 ml

10

260.00

KI OSK LABOR Labor for Kiosk TOTAL: 4,500

Utilities

Monthly

Annually

Electric Bill

1000

12000

Water Bill

500

6000

Rent

3500

42000

Total

5000

60000

The approximate costs incurred monthly are as follows: Electricity: Water: Rental:

1000 500 3500

45

Waste Disposal

The

researchers

wanted

to

give

the

customers

a

100%

satisfaction in cleanliness in all areas of the store.

Empanada Mania will provide one trash bin inside the store for temporary keeping of garbage. The accumulated garbage per day will be collected by iClean maintenance personnel inside the campus.

46

CHAPTER

IV

Management Aspect

The success of the business primarily lies on effective management

and

structuring

and

working hand,

organization. integrating

together

management

with is

Organization

of

various

independent

the

refers

activities

relationship.

planning,

organizing

of

On

and

to

the

the

people other

controlling

activities towards certain activities. The purpose of management is to achieve certain specific goal to maintain or improve the viability

of

an

organization

for

an

effective

and

efficient

means in achieving such objectives. In this chapter, the researchers organization, requirements, standards

organization duties

discuss the form of business

structure,

and

personnel

responsibilities,

and

manpower

qualification

of personnel, legal requirement, compensation package

and company policies.

Form of Business Organization The simplest form of business is the sole proprietorship, a business owned and operated by one person. An Empanada Mania is

47

a

business

service

oriented

which

is

easy

to

set-up

and

a

minimal amount of capital needed to set a business like this. Therefore, the ideal form of business organization for this is Sole Proprietorship which is simpler compared to the other forms of

business

organization.

staff/personnel,

the

The

business

Empanada owner

Mania

will

not

had be

a

limited

having

an

experience of hard time to managing and operating the business. There are some necessary adjustments in terms of capital and personnel/staff that will take place depending on the demand for the business product.

Organizational Structure

48

The business organizational structure that shall be composed of the Manager (owner) of the proposed business and represents the Baker, and staffs will fill the lower level management.

Manpower Requirements DUTIES AND RESPONSIBILITIES The

duties

and

responsibilities

of

the

personnel

in

the

organization are as follows: PROPRIETOR/MANAGER 

Managers are responsible for merchandising baked goods and quality control, which requires an eye for aesthetics.



Should oversee baking standards are enforced.



In charge of hiring, developing and terminating staff.



Generally responsible for scheduling employees and ensuring payroll stays within the bakery's budget.



Overseeing inventory like ordering and rotating ingredients such as flour, sugar, and butter; it involves receiving and unloading deliveries.



Tracking inventory including calculating the proper amount of ingredients necessary for production of baked goods on a given day or week.

staff

to

ensure

the

bakery's

49



Manager must keep an eye on demand for each kind of pastry to know how much to supply.



Manager will be sometimes required to add new items to the list of the bakery's offerings.



Responsible for ensuring the profitability of a This means they must work within the confines bakery's budget in order to maximize sales.

bakery. of the

HEAD BAKER  Prepare all of the prepared goods for sale at the bakery, store or other specialty shop 

Preparing, baking and wrapping of the items so that they are ready to go out the door



To meet the day's production goals for baked goods



Ensure that ingredients are ready for use each day



Make sure that baking equipment is cleaned and maintained properly



Ensure compliance with food safety standards

SALES STAFF 

Greeting customers who will buy the products



Involved in stock control and management

50



Assisting customers to find the goods and products they are looking for



Responsible for processing cash and card payments



Answering queries from customers



Reporting discrepancies and problems to the owner/manager



Giving

advice

and

guidance

on

product

selection

to

customers 

Keeping the store tidy and clean, this includes hovering and mopping



Responsible dealing with customer complaints



Working within established guidelines, particularly with cleanliness



Attaching price tags to merchandise on the shop floor



Responsible for security within the area



Receiving and storing the delivery of large amounts of stock



Keeping the display well organized and clean

QUALIFICATIONS OWNER/MANAGER

51



Good in planning, organizing, leading, and controlling and should at least have a background in managing a business.

HEAD BAKER 

18 years old and above



Male or female



Must have working experience in the same field (bakery) for at least 2 years.



Must

be

responsible

and

hardworking

and

willingness

working with a desire of personal career growth. 

Must have good moral character

STAFF 

Male or Female



Must have knowledge in this kind of business



At least High School graduate



18 years old and above



Have a good moral character



Must have pleasing personality

COMPENSATION BAKER Per day php200.00 Monthly php5000.00

in

52

Annually php 60,000.00

STAFF Per day php 150.00 Monthly php 3,750.00 Annually php 45,000.00

Time Schedule POSITION

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

MANAGER

8:00AM

8:00AM

8:00AM

8:00AM

8:00AM

TO

TO

TO

TO

TO

12:00NN

12:00NN

12:00NN

12:00NN

12:00NN

1:00PM

1:00PM

1:00PM

1:00PM

1:00PM

TO

TO

TO

TO

TO

5:00PM

5:00PM

5:00PM

5:00PM

5:00PM

4:30AM

4:30AM

4:30AM

4:30AM

4:30AM

TO

TO

TO

TO

TO

7:00AM

7:00AM

7:00AM

7:00AM

7:00AM

8:00AM

8:00AM

8:00AM

8:00AM

8:00AM

TO

TO

TO

TO

TO

12:00NN

12:00NN

12:00NN

12:00NN

12:00NN

1:00PM

1:00PM

1:00PM

1:00PM

1:00PM

TO

TO

TO

TO

TO

BAKER

STAFF

53

5:00PM

5:00PM

5:00PM

5:00PM

5:00PM

Capitalization The

proposed

business

will

be

financed

by

the

business

administration student graduates.

Legal Requirements The Empanada Mania complies with all the legal requirements in establishing the business. The project proponents have consulted a representative from Business Permit and License of Cabanatuan City Municipal Hall regarding

legal

matters.

The

representatives

permit and license application

give

a

business

that must be complied with other

requirements to accomplish legal existence of the business.

Certificate of Clearance/Compliance is accomplished through: 1. Registration

for

fire

inspection

for

the

safety

of

the

firm, and to check if it obeys the rules regarding this matter. 2. Registration

for

building

design of the establishment

inspection

for

the

over-all

54

3. Registration in Health and Sanitary Department to ensure the health security and safety of employees and to check that employee’s work is not hazardous. 4. Registration of the name of employees in Zoning Department at City Planning and Development Office for the employee to be registered on SSS for private employees and GSIS for public employees to ensure their benefits.

The

business

Department requirement.

of

registered

Trade

and

the

Industry

name

of

(DTI)

the as

firm another

at

the

legal

55

CHAPTER V FINANCIAL ASPECT

Financing

a

business

is

one

of

the

major

reasons

on

how

investor creates its wealth. In this section, it involves an analysis of the cash flow profile of the project. The Major Assumptions

used

in

making

a

projection

to

the

financial

statements i.e. Projected Income Statement, Projected Cash Flow, and Projected Balance Sheet with supporting schedules. The total project cost, and also the analysis of financial statements in terms of Liquidity, Solvency, Profitability and Break-even.

MAJOR ASSUMPTIONS USED 

The Projected timetable/schedule is set at 5 years.



The Projected Sales is set to increase to 5% annually.



The Cost of sale shall increase by five percent (5%) annually.



The Depreciation is computed based on a Straight Line Method, its Salvage value is 10% of its cost.

56



The utilities are assumed based on the use of existing bakery.



Tax rates used is based on the prevailing tax rates set by the Bureau of Internal Revenue.



All sales/expenses are collected/paid in cash.



Utilities expense like Water and Electricity are included in the Rental Expense of the Company.



The

Owner

will

be

allowed

to

withdraw

5,000

pesos

a

month. 

The

business

will

only

be

financed

by

the

owner;

no

assumed liabilities will be incurred.

Mania Empanada Projected Income Statement Coverage period of five years Year 1

Year 2

Year 3

Year 4

Year 5

Sales Cost of sales Gross profit

648,000 374,525 273,475

680,400 393,251 287,149

714,420 412,914 301,506

750,141 433,559 316,582

787,648 455,237 332,411

Salaries expense (baker and staff) Utilities Depreciation expense Legal requirements Other expenses Total operating expense

105,000

105,000

105,000

105,000

105,000

60,000 2,165 4,616 5,000 176,781

60,000 2,165 5,000 172,165

60,000 5,000 170,000

60,000 5,000 170,000

60,000 5,000 170,000

96,695 29,008

114,984 34,495

131,506 39,452

146,582 43,975

162,411 48,723

Income before tax Tax expense (30%)

57

Net income after tax

67,686

80,489

92,054

102,607

113,688

Year 4

Year 5

Mania Empanada Projected Balance Sheet Coverage period of five years

Year 1

Cash in bank

Year 2

Year 3

17,967

1,998

13,458

23,900

34,865

2,003

2,103

2,208

2,319

2,435

15,907

15,907

15,907

15,907

15,907

2,646

481

481

481

481

38,522

20,489

32,054

42,607

53,688

Contributions, net of withdrawals

(29,164)

(60,000)

(60,000)

(60,000)

(60,000)

Accumulated income

67,686

80,489

92,054

102,607

113,688

Total liabilities and equity

38,522

20,489

32,054

42,607

53,688

Inventory Prepayments and other current assets Machinery and equipment, net Total assets

58

Mania Empanada Projected Cash Flows Coverage period of five years Year 1 Contributions from researchers

30,836

Year 2

Year 3

Year 4

Year 5

-

-

-

-

Collection from sales

648,000

680,400

714,420

750,141

787,648

Rent

(42,000)

(42,000)

(42,000)

(42,000)

(42,000)

Security deposit

(3,500)

-

-

-

-

Machinery and equipment

(4,810)

-

-

-

-

Cost of sales

(374,525)

(393,251)

(412,914)

(433,559)

(455,237)

(2,003)

(2,103)

(2,208)

(2,319)

(2,435)

Utilities

(18,000)

(18,000)

(18,000)

(18,000)

(18,000)

Start-up costs

(17,023)

Purchase of inventories

Salaries

-

-

-

(105,000)

(105,000)

(105,000)

(105,000)

(105,000)

(5,000)

(5,000)

(5,000)

(5,000)

(5,000)

Tax expense

(29,008)

(34,495)

(39,452)

(43,975)

(48,723)

Owner withdrawals

(60,000)

(60,000)

(60,000)

(60,000)

(60,000)

17,967

20,550

29,846

40,288

51,253

Other expenses

Projected cash at the end of the year

59

Costing for Legal Requirements DTI

P515.00

Mayors Permit (Business Permit)

P2,365.00

Sanitary Permit Fee

P200.00

Health Permit Fee

P300.00

Barangay Clearance

P30.00

Fire Safety Inspection

P60.00

Zoning Fee

P50.00

Sign board and bill board fee

P60.00

Annual Inspection Fee and others

P536.00

BIR

P500.00

TOTAL

P4,616.00

60

Chapter 6 Implementation and Time Table

This chapter discussed the implementation or Ghant Chart of the study. It includes the promotion and time activities that the proposed business will do for the whole year.

IMPLEMENTATION J

F

M

A

M

J

J

A

S

O

N

D

A

E

A

P

A

U

U

U

E

C

O

E

N

B

R

R

Y

N

L

G

P

T

V

C

E

Y

I L CAPITALIZATION LEGAL REQUIREMENTS ESTABLISHING/ MANUFACTURING (KIOSK) HIRING EMPLOYEES START BUSINESS

OF

T

61

Chapter 7 CONCLUSION AND RECOMMENDATION This

chapter

covers

the

derived

conclusion

and

some

recommendation to the management for the successful continuance of its operations. CONCLUSION Researchers concluded that starting a business is a complicated process because it requires preparation, familiarity with the industry,

financial

funding,

and

knowledge

of

appropriate

business. There are really many moving parts to consider, all of which come under your jurisdiction as the business owner.

Based on the analyzation of gathered data, we also concluded that most of the students of Araullo University want to try and taste our proposed study which is establishing an Empanada Mania inside

the

opportunity

campus to

of

earn

Araullo

University.

profit

because

the

It

was

also

University

our was

continuously growing because of its good marketing strategies. Although empanada is new to the market, based on the survey, there is a high possibility that the product would be in demand.

62

It is also our chance to give them a high satisfaction because we will make our products tastier to make them crave more.

RECOMMENDATION As

mentioned

above,

starting

a

business

is

not

easy;

we

recommend that before putting up a business, I strongly suggest that would-be entrepreneurs do a business plan. As a result of completing the plan you will be much better prepared and know whether or not your business idea is feasible. We also recommend that find a right time to enter in the competition or market. Also find out how to make people crave about your products and become an expert at what you do.