Mang Inasal

I. Executive summary
Mang Inasal is a locally owned fast food restaurant in the Philippines that will be soon, positioned as
an international franchise through our creative approach to the companys image and detail
presentation. Mang Inasal will provide a combination of excellent food at value pricing, with fun
packaging and atmosphere. Mang Inasal is the answer to an increasing demand for BBQed fast
food, to be consumed while having quality time with your friends or family in the shopping mall. In
todays highly competitive environment, it is becoming increasingly difficult to differentiate one fast
food outlet

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from another due to its variety of product line and services. Dubai, a city state, is now becoming the
model metropolis in the Middle Easts new economic boom.
With more than a total population of 2.106 million (2013), mainly from neighboring countries
(Malaysia, Indonesia, Thailand and the Philippines), Dubais import in meat, vegetables and so on in
its sector is the strongest in the region. Our main priority is to establish one fast food restaurant in a
crowded mall, preferably in one of prominent shopping malls in Dubai. Later, our effort will be a
further development in our service and product line in the surrounding area. This plan is prepared to
obtain a location for the initial launch of this concept. Additional financing will need to be secured for
the fast food restaurant.
The financing, in addition to the capital contributions from shareholders, will allow Mang Inasal to
successfully open and expand. The initial capital investment will allow Mang Inasal to provide its
customers with a value-driven, entertaining experience through the creativity of its founders. Mang
Inasal will entice the diverse culture to bring their friends and family with our innovative environment,
fresh-cut Chickens, and selection of unique signature sauces.
II.

Business

overview

A. Business profile
History
Mang Inasal (Ilonggo term for Mr. Barbecue), the Philippines fastest growing barbecue fast food
chain; serving chicken inasal, pork barbeque and other Filipino favorites, was first established on
December 12, 2003 in Iloilo City by businessman Edgar Sia II.

Apart from the usual food presentations of multinational food company copycats, Mang Inasal
endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice
wrapped in banana leaves, a marinade concocted out of local spices and herbs, bamboo sticks for
skewers, and the ambience that encourage skinamot (Ilonggo term in eating with the hands)
whenever chicken inasal is served. In the year 2014, seven marketers decided to franchise Mang
Inasal . They decided to penetrate the new market in Dubai, with the use of their experiences in the
marketing field, they will try to capture the new market of the Middle East to patronage Mang Inasal
to the population of Dubai.
They will try to use the cultural, economic, political, and technological environment of their market
area for their advantage in order for them to achieve their objectives and goals as a marketeer, with
the use of the cultural diversification of the country we marketeers will try to cater this diverse
cultured by offering new product lines such as grilled lambs and chicken for Muslims and original mix
recipe of Mang Inasal such as pork inasal and chicken inasal for non-Muslim customers. In using our
SWOT matrix we will try to consider our strengths and opportunities in gaining new insights,
marketing strategies, and programs to adapt and improve our brand equity towards our market.
B. Background of the product
Mang Inasal is a fast food restaurant chain; its vision is to be the first choice and leading fast food
chain everywhere nationwide. Its mission is to provide great tasting products and quality services to
our customers with a great pinoy ambience fast food chain nationwide. Develop, motivate and retain
employees in providing benefit programs, employment security and good working environment by
applying new technologies for better and easy way of serving. Do our best to provide good quality
products and services to our franchisees with fairness and integrity. And provide livelihood programs
to the community by treating them as our business partners.
If you want a great deal to satisfy your enormous appetite, the Mang Inasal
Menu is the one to choose from. With the most reasonable prices covering a variety of meals, the
Mang Inasal menu will make you feel like a winner! Really, your moneys worth is guaranteed with
filling and satisfying meals. Have you ever heard of unlimited items offered by restaurants? Well, the
Mang Inasal Menu offers unlimited rice and thats the best deal a Pinoy can ever want. Eating big
servings of chicken and pork is gratifying with cups and cups of rice. Mang Inasal is a Filipino
restaurant chain that offers delicious chicken barbecue as the main product. Its recipe is uniquely
delicious with big chicken servings marinated, skewered over charcoal and served over banana
leaves; its a real Pinoy recipe everybody loves. The Mang Inasal Menu is excellent; everything in it
is 100% delicious.
Mang Inasal has a variety of product line raging from BBQed Chicken legs to Grilled Fish with
unlimited rice, and its desserts are the Leche Flan, Toron Split served with a two scope ice cream
covered in choco syrup, and the famous Halo-Halo Filipino Styled dessert, served drinks are Sago at

Gulaman, Iced tea, Coca cola and hot coffee. It has been one of the most favorite eateries
nationwide with over 445 branches and growing, and a staggering 10,000 employees system, it has
become famous and profitable for any individual to finance as a business.
During Mang Inasal s reign in the fast food chain it has consistently growing over the past year
finishing in the top 3 in the most visited fast food chain in the Philippines and Edgar Sia aim is to be
top two in the Fast food chain industries beating Chowking in its position.
Below are some menus that Mang Inasal serves to its customers:
PABORITO/FAVORITE
PM1

MEALS
Chicken

Barbecued

chicken

PM1.5

(UnliRice)

Leg
leg

and

w/
thigh

Chicken

with

Leg

Rice
unlimited

(spicy)

rice
w/Rice

Barbecued chicken leg and thigh with unlimited rice (in spicy flavor) PM2 Chicken Breast w/ Rice
Barbecued

chicken

PM3

breast

and

Pork

wing

with

Inasal

unlimited
w/

rice
Rice

3 sticks skewering pork, barbecued in inasal way, unlimited rice PM4 Sizzling Fish w/ Rice
Sizzled

Bangus

PM5

with

Sizzling

Sizzled

PM7

Bangus

liempo

marinated

rice

w/
with

Grilled

Rice

unlimited

Fish

boneless

rice

w/

with

Roasted

Roasted

unlimited

Pork

pork

PM6

Grilled

fish

Rice

unlimited

rice

Liempo

with

sweet

and

spices

with

w/Rice
unlimited

rice

Others

Bangis

Sisig

Sizziling

Pork

Ensaladang Talong
SULIT/AFFORDABLE
SM1

1pc

MEALS
Chicken

Inasal

w/

Rice

Chicken Inasal is a grilled chicken dish and one of the well-known Ilonggo dishes with unlimited rice
SM2

2pcs

Pork

Inasal

w/

Rice

Pork Inasal is a grilled pork dish and one of the well-known Ilonggo dishes with unlimited rice
MERIENDA/SNACK
Pansit

MEALS
Bihon/Bijon

Pancit Bihon or Pancit Guisado is a Filipino noodle dish and is a staple second to rice. Dinuguan at
Puto
Pork blood stew, blood pudding stew, chocolate meat served with 3 puto cake

Cake

DRINKS/Beverages
Sagot

Gulaman

Sago at gulaman drink is sweet, thirst-quenching and popular during the sizzling summer months.
Softdrinks
Mang Inasal serves some of the most popular fast food chain such as sprite, coke and royal Iced
Tea
Freshly brewed each day from a premium blend of tea leaves. Tea is a natural source of protective
antioxidants

Coffee

Mang Inasal serves piping hot brewed coffee for our customers
DESSERTS
Halo-Halo
Halo-halo is a popular Filipino dessert with mixtures of shaved ice and evaporated milk to which are
added various boiled sweet beans, jelly and fruits. It is served in a tall glass or bowl. Leche
Flan/Creme Caramel
Crme caramel flan or caramel custard is a custard dessert with a layer of soft caramel on top, as
opposed

tocrme

brle,

which

is

custard

with

hard

caramel

top.

Turon

Split

is a dessert made out of banana concealed in a lumpia wrapper

With Mang Inasal s variety of product line and with a very high value brand name and profitable
institution it can compete with other fast food chain nationwide, but can this ever growing business
be used in other countries, can its business practices and product lines and system be brought on
foreign soil not just to challenge its competitors head on but to prosper as a fast food chain and
complete its vision as the leading BBQ fast food chain in the country? Below is an analysis of the
environment of where Mang Inasal Branch will prosper, its analysis includes Company analysis,
Competitor Analysis, Customer analysis, and Environmental analysis which includes the PEST or
Political, Economic, Social or cultural and Technological analysis in which the Franchised Mang
Inasal branch will launch.
C.

Background

of

the

Market

The destination of where Mang Inasal will prosper will be in the nation of UAE specifically in Dubai.
Why Dubai? Why did choose the country Dubai instead of any other country? Because Dubai is the
mecca for growth is the no.1 country in the oil business giving us an advantage in making use of its
economic growth? And it stands in having the highest imports in any other UAE capitals in all of the
Middle East but above all we choose Dubai for one single purpose.
And that purpose is Food. People in Dubai love to eat, and as a fast food chain business that is one
great news for us, but what separates us from our competitors is the product line that we offer
because statistic shows that people in Dubai likes to eat rice since rice is the best side dish when
eating meat with sauce or vegetables. The imported food of Dubai consisted mainly of fish, rice,

bread, dates, yogurt, homegrown vegetables, and meat from sheep, goats, and camels. And this are
most consumed food that people eat in Dubai
D.

Situational

Company

analysis
Analysis

Goals
The goal of our company is to be the first choice and leading barbequed fast food chain of
everywhere nationwide, and to provide great tasting product and quality services to our customers
with the use of different kinds of products we will try to capture the large market in our new market
area and cater their culture by offering new product lines that are made from lamb/sheep products.
With the use of our marketing expertise we will try to analyze what is our opportunity and threats in
our environment to maximize our growth in the fast food industry.
Focus
Our restaurant focuses on customers who loves to eat food, whose customer classes are mostly
class Cs Ds and Es since the product of Mang Inasal are affordable and cheap, and whose
customers that has an active lifestyle in eating, our restaurants new product line are specialize in
chicken, pork and possibly new product line lamb with unlimited rice to align its food chain culture
towards the culture of our target market.
Strengths
Our strengths as a fast food chain is endorsement, large target market, market leader in barbeque
fast food chain, accessibility, and strong commissary system in which case we can utilize these
strengths to create new marketing strategies and programs in developing new product and services
to offer in our growing and diverse market.
Weaknesses
Our weakness as a fast food chain is unhealthy food, Filipino culture, brands under the Mang
Inasal , commissary struggle, and lack of research for other countries since Mang Inasal is under
Jollibee Corporation McDonalds can consider us as a threat in the market area and that the lack of
technology can cause a delay in our R and D in improving our restaurants products and services.
Customer Analysis
Number
The total population of Dubai is 2.106 million (2013) Approximately 85% of the expatriate population
(and 71% of the emirates total population) was Asian (chiefly Indian, Pakistani, Filipino, Bangladeshi
and Sri Lankan). About 3% of the total population of Dubai was categorized as Western. In
addition, 16% of the population (or 288,000 people) lived in collective labor accommodation were not
identified by ethnicity or nationality, but were thought to be primarily Asian. Approximately 85% of the
expatriate population (and 71% of the emirates total population) was Asian (chiefly Indian, Pakistani,
Filipino, Bangladeshi and Sri Lankan). About 3% of the total population of Dubai was categorized as

Western. In addition, 16% of the population (or 288,000 people) lived in collective labor
accommodation were not identified by ethnicity or nationality, but were thought to be primarily Asian.
Type
Our restaurant focuses on the market area of Dubai a fast growing country, whose cultural heritage
of the people are both religious and hospitable people, but in Dubai as their culture diversifies and
meets new culture that will conflict their own belief, our restaurant will try to manage and use this
diverse culture in our favor, such as using the most delectable food of Dubai: Lamb as our new
product line.
Value Drivers
As our value drivers we will use our variety of products and combine some of them to create new
promos and products such as free upsize drinks, Pancit bihon/bijon perfect combo, Solve sarap and
many more value propositioned products.
Decision Process
We will use our traditional advertising to let our restaurant be known to the target market, with the
use of controlled advertisement of every six months monitoring to see how customers respond to our
billboard, flyers, and TV advertisement but statistic shows that Mang Inasal favorable ways of
advertising are through Social media, TV, Events and Experience and Word of mouth. Next is trying
to penetrate the new market through the use of discounts and promos due to our grand opening in
the new target market for the first month, and maintain its standard customers a day and invest in
improvement towards the target market.
Competitor

Analysis

Market Position
As a threat our competitors has the advantage to be the first known fast food chain in the country
such as McDonalds, Burger king, Del Taco, Wendys, Hardees, KFC and Pizza hut. But what
separates our restaurant towards our competitors is the unique product line that we offer, since we
offer BBQed and Filipino styled desserts products with the use of the most popular side dish that the
food industry can offer which is Rice, we can patronage and capture the market through the use of
our product line and cater new product line to adapt to the culture of Dubai.
Strengths
The strength of our competitor is Cost advantage, strong management, real estate, pricing power,
innovative culture. Financial leverage, asset leverage, supply chain, size advantages, economies of
scale, cost advantages, unique products, technology. The strength of our competitors can cause
major problems in our brand recognition process of our restaurant, since some of our competitors
are known brands; it can cause problems in the decision process strategy and in our brand
awareness towards our competitors.
Weakness

The weaknesses of our competitors are Negative publicity, Unhealthy food menu, Job and high
employee turnover, and Low differentiation. The weaknesses of our competitors that are mostly
towards its employees can be an advantage for our restaurant, in which case we can use this to
offer new jobs and programs for our workforce.
Collaborators
Mang Inasal is currently under Jollibee food corp. who owns 70% of Mang Inasal s market share but
as a fast food chain Mang Inasal is now currently profitable since the owner of its large market share
is the no.1 leading Fast food chain in the Philippines with over thousands of branches both nationally
and internationally making it a main player in the Fast food chain industries, with its other fast food
subsidiaries such as Greenwich, Red Ribbon, and other businesses.
III.
E.

Target
Market

Market
Segmentation

Geographic Segmentation
Dubai is located on the Persian Gulf, in the northeast of the United Arab Emirates. Dubai is the
second largest emirate with an urban area of 3885 sq. km and the city is roughly 35 sq km. However
it will expand to twice that size with the addition of the man-made islands; the Waterfront, the three
Palms, the World, the Universe, Dubai land, as well as the construction in the desert.
Psychographic Segmentation
The UAE culture mainly revolves around the religion of Islam and traditional Arab culture. The
influence of Islamic and Arab culture on its architecture, music, attire, cuisine and lifestyle are very
prominent as well. Five times every day, Muslims are called to prayer from the minarets of mosques
which are scattered around the country. Since 2006, the weekend has been Friday-Saturday, as a
compromise between Fridays holiness to Muslims and the Western weekend of Saturday-Sunday.
Behavioral Segmentation
Dubai buying behavior: Consumers in the three largest emirates tend to shop more at hypermarkets
and frequent the smaller shops and convenience stores for last-minute food needs. In the more
distant suburbs and the less-populated areas of the federation, smaller grocery and convenience
stores play an important role in food shopping. The number of hypermarkets is increasing steadily
with retail chains such as Carrefour, Spinneys and Lulu dominating the big format supermarket
trade. These key retailers tend to partner with foreign companies to procure imported food
products directly, while small format grocery retailers rely on consolidated deliveries for replenishing
their stock levels.
The continued growth in both affluence and the expatriate population has created the need for a
diverse range of food products in the UAE the food retail sector has responded by providing a range
of foods and ingredients suiting the tastes of the different ethnic groups in the country. Data monitor

has evaluated a number of food categories and projected growth at retail in most areas, particularly
chilled foods, bakery/cereal products, savory snacks and pasta/noodles.
F.

Macro

Environment

PEST

ANALYSIS

Political and Legal Environment

Overview of the Political System of United Arab Emirates: The United Arab Emirates is made up of
seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras al- Khaimah and
Fujairah. The United Arab Emirates gained its independence from the UK on December 2, 1971. Its
constitution was established on independence, and was made permanent in 1996. The form of
government can be referred to as a federal presidential elective monarchy, as the president is
elected from among the absolute monarchs who rule each of the seven emirates.
Economic Environment
The UAE, the worlds eighth largest oil producer, maintains a free-market economy with minimal
restrictions on private-sector activities, international trade and capital movements. Despite the
impact of the global economic downturn, the UAEs economy has proved to be remarkably resilient.
Higher oil prices, increased government spending and a noteworthy resurgence in tourism, transport
and trade have contributed to the upswing in the economy. In addition, the successful restructuring
of debt owed by high-profile companies, solidarity among the emirates and accommodative
monetary and fiscal policies have all played a role in bringing stability to the market. The Economy of
Dubai is mostly in the tourist sector
and
of
10%

other
the

finances
countries
in

of
finance

real-estate,

the
is

country
covered
12%

with
and
in

over
5%

50%
in

oil

transportation

and communication and 13% manufacturing.

Social and Cultural Environment
Dubais culture is rooted in Arabic and Islamic tradition Dubai is built on foundations that are rich in
history and tradition. Dubai is a forward-looking society that is equally bound to its culture and
heritage. Dubai has always been renowned for its tolerant outlook; Dubai has built a reputation for
being open to new ideas and ways of doing things. This has enabled Dubai to become a global
center for innovation, tourism and business. Sophisticated: Dubai is a city with style and charisma.
Dubai has successfully fused sophistication with charm. It has redefined the meaning of luxury with
its stunning hotels, award-winning restaurants and its position as an international shopping
destination. Energetic: Dubai has an aura of vitality and a get-up-and-go spirit.
Visitors are struck by the ingrained optimism and spirit of adventure and innovation that permeates
through all layers of the community. To a holidaymaker, a business traveler or a resident, Dubai is a
place where there is always something exciting to see and do. Embracing: Dubai aims to bring
together the best in people Dubais success is based on the vision and commitment of its leadership,

the generosity and aspirations of its people and the contribution of many people from different parts
of the world, many of whom have chosen to make Dubai their permanent home. This creates a blend
of many cultures that coexist peacefully. But in a religious country Dubai is a very conservative
country having a strict dress code and with a very diverse culture in its social class.
Technological Environment
Dubai is today recognized as an international trading port. While rapid sophistication of the 21st
century technology has changed the face of Dubai from timeless deserts to a thriving economy with
strengths in trade, services, manufacturing and technology, Dubai maintains a fine balance of
cultural legacy and a modern metropolis.
G.

SWOT

Analysis

Strengths
Endorsements
Large
Market

Target
Leader

in

Market

Barbeque

Fast

Food

Chain

Accessibility
Strong Commissary System
Weaknesses
Filipino

Culture

Unhealthy

food

Brands

under

the

Mang

Inasal

Commissary
Lack

struggles
of

Research

for

other

countries

Opportunities
Local

Culture

and

Tradition

Cultural

Diversity

Philippines-

Agricultural

New

Nation

Brand

Acquisition

Urban

Development

Threats
Foreign-owned

and

Global

Political Instability
H. SWOT Matrix

SMEs

Financial

Increase
Sanitary

Local

in
Issues

Crisis
Oil

Standards/

Health

Prices
and

Safety

Strengths
1.

Endorsements

2.
3.

Large
Market

Target

Leader

in

Barbeque

Market
Fast

Food

4.

Chain
Accessibility

5.

Efficient

Commissary

System

Weaknesses
1.

Filipino

2.

Unhealthy

3.

Brands

under

4.

Culture
food
the

Mang

Commissary

5.

Lack

of

Research

Inasal
struggles

for

other

countries

Opportunities
1.

Local

Culture

2.

Cultural

3.

Brand

4.

and

Tradition
Diversity
Acquisition

Urban

Development

5. Philippines being an Agricultural Nation

SO

Strategies

(S3+05+03)

Consider

raising

their

own

chickens

(S3+S2+04) Expand network of stores to newly developed areas in the country (S3+03) Acquire
business

in

order

to

penetrate

new

WO

market
Strategies

(W2+03) Acquire restaurants that serve healthy food and introduce a healthy product line. (W5+02)
Intensity research on other countries culture in order to cater effective marketing strategy towards
customers culture and lifestyle Threats
1.

Foreign-owned

2.

Global

3.
4.
5.
ST

Sanitary

Standards/

and

Local

SMEs

Financial
Health

and

Crisis
Safety

issues

Oil
Political

Prices
Instability
Strategies

(S5+T3) Continue adherence to standards and become a benchmark in the government sanitary
health standards (S2+S3+T5) Strengthen advertising to reinforce market leadership amidst (S3+T2)
Create more affordable meals towards the target market (S1+S3+T1) Intimidate competitors by
reinforcing market dominance through the use of specialized BBQ product line WT Strategies

(W5+T1) Intensify research on culture and develop marketing strategies to cater diverse market
preferences (W2+T1) Can cater new product lines for a new market segment to fill in the gap
between healthy foods and unhealthy foods
IV.

Marketing

Strategies

1. Product/Service Strategy
For our Product strategy we will use the most common strategy of Mang Inasal which is the Product
development strategy As seen in the analysis of Mang Inasal operations the past years, this
strategy has been proven beneficial to the company. With good research and development, Mang
Inasal is capable of continuing to produce products that fit well to the taste of their market. They
could also continue innovating their current product line so as to continuously remain ahead of its
competitors. And to compliment this strategy: Cost Leadership strategy Best value strategy. In this
strategy we can create a new product line to cater to a unique segment of their market. For example,
creating a healthier product line for those who are weight and health conscious would be ideal.
2. Pricing Strategy
For the pricing strategy our cost leadership would be best since our product are already affordable
for the market, all we need to consider is the new product line that we have to offer towards our
customers in order for us to capture new market segments and to achieve our goal in being the
leading BBQed specialized fast food chain in the country. And with our new product line we can
assess the gap between the healthy foods and unhealthy foods, and cater the culture of non-muslim
by offering non pork products such as lamb and goat.
3. Place/Location Strategy
For the location strategy we will place our restaurants near hotels or inside malls but more
specifically the Zamatao mall in Dubai which houses many competitors such as McDonalds, Burger
king, Hardees, Wendys and so on, but these competitors are just indirect competitors since their
product line differs from us, as a competitive edge, our fast food chain will be placed in front of other
fast food restaurant to intimidate our competitors and in order for us to capture our desired target
market with the use of our new product lines and unique product position, since our products differ
from their product line we can have the advantage of product positioning
4. Promotional Strategy
In our promotional strategy we will use a controlled advertising having a 6 month monitoring towards
the reaction of the customers in our advertisement to do further study in analyzing negative and
positive factors in our promotional strategy and focusing on the positive reaction and lessen the
negative factors of our advertisements and through the use of online and TV advertisement we can
make our product known to the target market.
5. Positioning Strategy

With the use of the diverse market we can cater and create new product lines to capture new
segments of the market, and we should keep to our new market for now, and should avoid risk in the
new market to prevent any major financial problems towards our restaurant in order for us to keep
an update in our budgeting and opportunities in gaining new technology/insights in our environment
to use as an advantage for our restaurants, and with the use of new insights we can raise new
supply system in the new market to eliminate unnecessary cutbacks/problems in the inventory of our
products and services.
I. Financial Statement
Requirements

to

become

franchisee

If you are interested in becoming a franchisee of Mang Inasal, there are a few requirements you
need to look into. Here are the franchise details of Mang Inasal: Franchise fee: Php 15 to 30 million
Franchise fee inclusive of: use of brand, operational support, opening marketing support, and
training

support

Product

Franchise

security

term:

deposit:

Php

years,

800,000.00
renewable

Store space requirement: 150 square meters to 200 square meters Advertising fee: 2% of gross
sales
Royalty:

5%

of

gross

sales

Estimated cost of renovation: Php 7 million to Php 9 million

Cash Flows from Operating Activities:
Operating

Income

(EBIT)

7,000,000
Depreciation

Expense

800,000
Loss

on

Sale

of

Equipment

70,000
Gain

on

Sale

of

Land

(500,000)
Increase

in

Accounts

Receivable

(300,000)
Decrease

in

Prepaid

Expenses

(200,000)
Net

Cash

Flow

from

Operating

Activities

6,870,000
Cash Flows from Investing Activities:
Sale
700,000

of

Equipment

Sale

of

Land

of

Equipment

3,000,000
Purchase
(500,000)
Net

Cash

Flow

from

Investing

Activities

3,200,000
Cash Flows from Financing Activities:
Payment

of

Dividends

(250,000)
Payment

of

Bond

Payable

(300,000)
Net

Cash

Flow

from

Financing

Activities

(550,000)
Net

Change

in

Cash

500,000
Beginning

Cash

Balance

400,000
Sending

Cash

Balance

10, 420,000.00
J.

Balance

Sheet

ASSETS
Current

Assets:

Prepaid

Expense

Inventories
Other current assets
1,800,000
1,700,000
500,000
Total

Current

Assets

4,000,000
Noncurrent
Property
Deferred
Other noncurrent assets
1,500,000
1,000,000

Assets:
And

equipment
tax

(Fixed

assets)
assets

500,000
Total

Noncurrent

Assets

AND

EQUITY

3,000,000
TOTAL
7,000,000
LIABILITIES
Current

Liabilities:

Accounts

payable

and

Credit

accrued

expenses

Card

Payable

Current

Liabilities

Loan payable
3,000,000
2,000,000
500,000
Total
5,500,000
Equity:
Capital

Stock

Additional

Paid-In

Capital

Retained Earnings
425,000
350,000
725,000
Total

Equity

TOTAL
1,500,000
7,000,000
V.

Breakeven

point

In the Breakeven point our price per unit is Php 115 our variable cost is Php 99 and our estimated
total fixed cost is Php 600,000:
Price

per

Variable
Total
600,000
600,000
37,500

unit
cost

fixed

cost

(115

Php

115

Php

99

Php

600,000

99)
(16)
units

115

37,500

Php

4,312,500

The breakeven point in sales is 4,312,500 per month

VI.

EXIT

PLAN

For our exit plan strategy, we decided to sell-out the company in case of bankruptcy or other major
financial problems, because sell-out is the most easy way in earning back the owners equity and the
same time earn dividends afterwards it clearly is in our interest to ensure our firm is a good fit for
the buyer and therefore more likely to prosper. In other words we would create a win-win situation for
both our company and the firms who are willing to buy the companys asset and other subsidies.