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A Feasibility Study
Submitted to:
Prof. Edgar Laurente

POTATO CRAVERS

The Faculty of The National Teachers College


College of Accountancy & Business
Manila

In Partial Fulfillment of the Requirements for the degree of


Bachelor of Science in Business Administration
Major in Marketing Management

Salvador, Samuel A.
Josue, Marla Marie
Enovero, Danica
Espadero, Ramonchie
Sy, Angelica Shyne
Junio, Raymon

OCTOBER 17,2015

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Table of Contents

I. Executive Summary
1. Type of Business
2. Nature
3. Name
4. Product/Service
A. Management, Marketing and Financial Highlights
B. Socio-economic Contributions
II. Marketing Plan
A. Product and Service to Sell
B. Target Market
1. Area Coverage
2. Consumer/Customer
C. Demand and Supply Analysis
1. Total Potential Demand
2. Present Supplier/Competition
D. Projected Sales
1. Per Month
2. Per Volume/ In Pesos
E. Marketing Program/Strategies
1. Practices of Competitors
2. Own Marketing Program/Strategies .
F. Marketing/Selling Expenses
III. Production/Operation Plan
A. Technical Production Description
B. Production Operation by Process
C. Production Schedule
D. Labor Requirement
E. Machinery/Equipment Requirement
F. Raw Materials Requirement
G. Plant/Factory Location

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H. Plant Lay-out
I. Waste Disposal System
J. Quality Control System
K. Production Cost
1. Total Production per Year
2. Total Production per Unit
IV. Organizational Plan
A. Legal Form of Business
B. Organizational Structure
C. Qualification of Officers
D. Office Equipment
E. Gantt Chart
F. Administrative Expenses
V. Financial Plan
A. Total Project Cost
B. Sources of Financing
C. Projected Financial Statement
1. Projected Cash Flow Statement
2. Projected Income Statement
3. Projected Balance Sheet
D. Profitability Indices
1. ROI
2. Payback Period
3. Net Income to Sales ratio
4. Breakeven Point
5. List of Assumption Used

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EXECUTIVE SUMMARY

A. TYPE OF BUSINESS

1. Nature

Our Company is a food retail and manufacturing business. And because of that,

we are responsible in doing all the tasks involving innovating, manufacturing

and producing our products. We are the one who personally communicate with

our customers. As all-in-one company this will serve as our advantage from

other competitors. Our Company is a Partnership.

2. Name

Every company, organization and institution has its own unique name or

identity that makes a distinction with others. Regarding this matter, our

Company end up to an extraordinary name and that is Potato Cravers. It is

derived from our daily doing which established through an extraordinary

friendship in unexpected situation. There are businesses that had been

established through friendship as well and in that case we can proudly say that

Potato Cravers was born by unique friendship that unites for a desire to

innovate new product.

Potato Cravers, a group of friends who are fond of eating potato snack like

French Fries and Potato Chips even when reviewing and watching movie. We

decided why dont we make or innovate a simple potato into a unique and

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tasteful potato snack that will really suite for everybodys taste and it came out

as Potato de Rollo. Potato Cravers is the name of our company because our

product is primarily made of potato, so we decided to put Potato in our

company name so that people will think that we are selling potato products. We

add the word Cravers so that people who are craving or hungry for potato

snacks will definitely go to our location once they will hear it.

3. Products / Services

It is called Potato de Rollo because of how it is presented. Our company decided

to choose a product name which is very suitable and that can be easily recalled

by our customer once they hear it. Our Potato De Rollo is mashed potato that has

cheese inside of it so that the cheese will make the product more tasteful. We

rolled the mashed potato and wrapped it with bacon and then fry it to be more

appetizing and delightful. Potato de Rollo can be a snack or appetizer.

B. Management Marketing and Financial Highlights

In the management, Our company describe the different legal structures of busines

s as well as the organizational structure and the qualification of the officers of the co

mpany, the equipment needed and administrative expenses forecasted and the orga

nize schedule of all the activities of the company.

In our marketing, our company provides description of the product that we sell

to the market, the advantaged of Potato de Rollo together with its primary and seco

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ndary use. In addition, we also presented our target market, demand and supply ana

lysis, projected sales, the marketing strategies of the company and our competitors.

It covers the general business condition, competitive condition, target market, dema

nd, supply, product pricing strategy, promotion and packaging. This area represents

about structured questionnaire floated to the respondent and the result determined

by demand and supply and for the partners to know whether the product will penet

rate the target market.

In the financial plan, it includes financial statement to verify the transactions

that the company undergoes. It will show reports on the company's assets, liabilities

, and ownership equity at a given point in time and the reports on the company's inc

ome, expenses, and profits over a period of time. Furthermore, it will present report

s on the company's cash flow activities, particularly its operating, investing and fina

ncingactivities.

C. Socio-Economic Contribution

Every company should have a socio economic contribution because the main p

urpose of any firm is to gain profit for the growth of their own companies. Fortunat

ely, we still have the Corporate Social Responsibility (CSR). Potato de Rollo can cont

ribute to the growing and increasing economic status of our country because we are

an entity that gains profit or money, we are taxed by the government thats why we

are already helping the country.

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Aside from the taxes obligation, we could also help the whole society by givi

ng employment for others. First is the opening of our new product in the society. Th

e product that our company is offering are quality and delicious food thats why the

society could purchase the product that are different to what they usually purchase t

hat could increase their personal satisfaction and their happiness

Building up business is a great opportunity for an employed person to have a job

and to have another source of income.

This business is expected to give great contribution to the government in the form

of tax. This tax payment from the business would help the localities as well as the ec

onomy in its future projects especially for people that will benefit this would help th

em to more sprightly.

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COMPANY LOGO

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COMPANY LOGO DESCRIPTION

Potato Cravers Company is offering food product in the market. As you can see in our

company logo, it has an image of group of friends that represents on us. We like to eat

potato so we made a product which is the Potato de Rollo. Our Company chose to belong in

the food industry. In spite of its increasing population, we are challenge to innovate a

product that would really give Filipinos a quality and delicious food. Our product is called

Potato de Rollo with the abbreviation PDR. Potato de Rollo is a potato with bacon and

cheese as the main ingredient.

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PRODUCT LOGO

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PRODUCT LOGO DESCRIPTION

Potato De Rollo is a product which is generated by the Potato Cravers Company.

The Potato has a hat or SALAKOT because it represents our product Potato de
Rollo that is made by Filipinos.

Mouth Cheese shows that our product has cheese inside the Potato that gives flavor
on it.

Bacon Hands indicate that Potato de Rollo is wrapped with bacon.

The background is color brown because it reflects the color of Filipinos.

TAG LINE:

Mapaparrrrrrolyokasasarap means that after you ate Potato de Rollo you will feel

contentment and satisfaction like when you are riding in the roller coaster.

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D. BRAND STORY

Potato Cravers Company was found on July 11, 2015. One afternoon when our group hang

out to sort ideas on what we can offer in the market. As a group of friends who loves to eat

potato dish like French fries and Mashed potato. The thought comes to our mind why cant

we innovate an ordinary potato into a new product, since there is no mashed then fried

potato products yet, we decided to try it and we put cheese inside the potato ball to be more

tasty and wrapped bacon around it to look more delightful and thats how Potato de Rollo

was invented. Since our product is potato we decided that our company name will have a

Potato and because we are fond of eating potato, we decided to use Cravers because we

always crave for potato snacks. So thats how Potato Cravers is discovered.

Our inspiration to make Potato de Rollo is the customers in the market. We want them to

satisfy their needs and also for them to experience what Potato de Rollo can give to them.

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E. VISION

To be one of the leading manufacturer and retailer of POTATO DE ROLLO in the

Philippines by 2020.

F. MISSION

To provide our customer a quality, healthy, delicious and innovative snacks at

reasonable and affordable price. Our Company is dedicated to promise in serving

the best and innovative food snack.

G. CORE VALUES

CUSTOMER/ CLIENT Our Company are serving high quality and best service to

our valued customer in return of their continuous patronizing our product in the

industry. It is our will to accommodate and serve our delight customer because they

serve as our life blood in the market. Without them, our product would not be able

to recognize of its existence.

HOSPITABLE: Potato Cravers are giving warmth welcome to our valued customer

once they will visit and purchase our product. It is our way in order to maintain the

good relationship between our customer and us.

RESPONSIBLE: Our Company is accountable to every single process that we

undertake inside the organization in order that we can render high quality product.

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INTEGRITY: Every employee embodied honesty and truthfulness dealing with the

customer. Company employees always seek and preserve their natural integrity as

they are responsible enough to distinguish what is right and wrong in the company.

Through these, customer will believe us based on the attitude we are showing to

them.

SAFETY AND SECURITY: Our Company assures that were serving a safe and good

quality of food so that our consumers will not be able to worry when trying the

product, because it is tested by BFAD and other sanitary inspections.

TRUSTWORTHY: Potato Cravers have been served high quality food standard

because we are sure that were serving a clean and tasteful product so that many

customers will patronize it.

III. MARKETING PLAN

A. Products / Service to Sell

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1. Product Description

Potato Cravers Company offers a unique innovative product in the market and our

main product is Potato de Rollo. It is not just a typical potato because the mashed

potato is wrapped with bacon and has a cheese inside of it to make it delightful and

to give a new innovative version for a simple/plain potato.

Potato de Rollo is nutritious because potatoes are rich in Vitamin C, Potassium, and

Vitamin B-6. It is also a good source of Calcium, Iron, Magnesium, Phosphorus,

Niacin, Folate, Choline and Zinc.

2. Primary Use

It can be a snack.

3. Secondary Use

It can be an appetizer.

4. Picture of the Product

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5. Unique Selling Proposition

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Potato De Rollo is unique than other ordinary potato products. Common potato

snack like French Fries and Potato Chips is far different from Potato de Rollo.

Since there is no mashed then fried potato snack yet, this is one of the

uniqueness of our Potato De Rollo. The mashed potato is rolled and has a cheese

inside then we wrapped the bacon around it and fry it to become more

appetizing. Second uniqueness of Potato de Rollo is that, bacon is very unusual

ingredient for potato snacks but Potato de Rollo has bacon so that it will make

the customers be satisfied and it will give them a new taste of food. Potato de

Rollo is much affordable than the other potato snack.

B. Target Market

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1. Industry Analysis

Potato is one of the four largest produced crops in the Philippines and grown by

small and large scale. At present, Philippines is one of the worlds largest potato

crop producer which ranked as the fourth after India, Uganda and China.

According to data, the statistics shows that in the year 2014, the Philippine has

produced more than 9.2 million tones of potatoes; this composed almost 6

percent of the global production

Potato processing Industry in the Philippines

Potatoes are used mainly as main dish in the restaurants and snacks in almost

food servings on side dish such as fries, mashed potato and other cooked food.

Around 66% of the potato production is consumed in the local market of the

Philippines distributed as follows: 16.5% for processing as a by- product of

potatoes; 45.5% are sold fresh in wet market as table potatoes. In the recent

years, the processed products of potatoes available in the market are potato

fries, mashed and other more. It has been a very lucrative business. This report

presents data on the potato production and consumption trends in the

Philippines. It analyzes Potato products consumption volume and values at

market and category level them. According to Canadian Potato Chips Market in

the Philippines, market profile to 2017 provides data on the Philippines Potato

Market, providing marketers with essential tools to understand their own and

their competitors position in the market. Thus allowing them to use the

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information to accurately identify the area where they want to compete in the

future.

A root crop native in the Philippines, potato is one of the most important

crops in the country. Potato is the sweet tasting root vegetable or crop which

belongs to the Conculvalcaea family. In Cordillera region, farmers cultivate the

crop as alternative to rice areas the latter is difficult to grow. As potato is

abundant in tropical countries like in the Philippines, it is good source of

carbohydrates and has long been considered as staple as it is source of daily

filling, especially in developing countries where resources such as materials are

scare. In addition, in the province of Aurora where the primary industry is

agriculture, product development projects of crops are much needed. Although

most are coconut farmers in the province, potato production runs fourth in the

major crops. However, because potato is just one of the many major crops

produced in the province, appropriate information on production is lacking.

Potato farmers are plagued not only with the lack of knowledge in its cultivation

but also in product development, which can bring their families additional

income.

Based on the analysis, Potato Cravers make the product Potato De Rollo

because company want to serve our valued customer a new variety of snack that

can give new taste and healthy food that surely they will enjoy not only by adults

but also by young individuals. Our company would like to introduce variety of

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flavors that consumers that would not normally taste of the potato food.

Nowadays, people would prefer to eat new flavor of foods that has less

nutritional content over conventional food that is said to be good for health

lifestyle that is available in the market. Potato Cravers promote a healthy and

innovative food snacks by introducing a new set of flavor of potato which is

Potato De Rollo to the market which can give a benefit for consumers.

1.1 SWOT Analysis (Company and Product)

STRENGTHS WEAKNESSES

Affordable New in the market

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Innovative Lack of Brand Awareness

Availability of Raw Materials No experience in distribution of


Potato de Rollo

OPPORTUNITIES THREATS

Good Market Natural Phenomena

No classes

Competition

Imitation

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1.2 Survey Result


1. Profile of Respondents:

1% Age Bracket
12%
15-20
87% 21-25
26-30

Most of our respondents answered that their age bracket are from 26-30 years old. Age 21-

25 got a 12%, followed by 1% for age 15-20 years old.

2. What is the age of the respondents?

Age

42%
Female
58%
Male

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Most of our respondents are female with a percentage of 58, while male respondents got

42%.

Daily Allowance
1% 14%
0-50
22%
63% 51-100
101-150
# of respondents

Most of our respondents answered that their allowance range from 101 to 150 a day with a

percentage of 22, followed by 14 percent for the respondents who chose 51-100 as their

daily allowance, while 0-50 only got 1%.

Female respondents whose daily allowance are worth 0-50 got a percentage of 3% and 2%,

while Male got a percentage of 1.

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1. Do you eat potato?

Do you eat potato?


2%

98% Yes
No

Based on the result, 98% of the total respondents answered yes. 58% of these

female respondents answered yes, they eat potato while for male 42% said yes.

Most of our respondents age range from 15-20 with 87%, while 12% for 21-25

years old, and 1% for 26-30 years old.

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2. How often do you eat potato?

How often do you eat potato?


11%
11%
46%
Once a week
32% Twice a week
Four times a week
Others

Out of 100 respondents, 46% said they eat potato once a week. 32% answered twice

a week, followed by 11% for those who eat four times a week and 11% answered others.

Female respondents who eat once a week got 30% while male respondents got 16%.

Female respondents who eat twice a week got 19% while male respondents got a

percentage of 13.

Female respondents who eat four times a week got 6% while male respondents got

5%

8% of the female respondents and 5% for male answered others as their choice

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3. What potato dish do you prefer to eat?

What potato dish do you prefer to eat?


3% 4% 14%
Mashed potato
79% Fried potato
Baked potato
Others

Most of the respondents answered they prefer fried potato with a percentage of

79%, while 14% said they prefer mashed potato, followed by 4% for others and 3% said

they prefer baked potato.

Female respondents said that they prefer mashed potato with a percentage of 11%

while male respondents got 3%.

For fried potato as their choice, female respondents got 42% while male

respondents got 37%.

For baked potato as their choice, female respondents got 2% while only 1 percent

for male.

Age 15-20 answered mashed potato with a percentage of 30. Age 21-25 got a

percentage of 1.

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Age 15-20 answered fried potato with a percentage of 67. Age 21-25 got a

percentage of 11 and 26-30 only got 1%.

For baked potato, age 15-20 got a percentage of 3.

Others whose ages range from 15-20 got a percentage of 4.

4. How much do you spend for your snack in a day?

How much do you spend for your snack in a


day?
11% 38%
16%
20-40

35% 41-60
61-80
81-100

Most of the respondents answered 20-40 pesos with a percentage of 38% as their

budget for a snack in a day. This is followed 41-60 pesos with a percentage of 35%. 61-80

pesos got a percentage of 16% while 11 percent said their budget for a snack in a day is

worth 81-100 pesos.

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5. Does the product name Potato de Rollo catches your attention?

Does the product name "Potato de Rollo" catches


your attention?

21%

Yes
79% No

Most of the respondents answered yes with a percentage of 79, while 21% said no, it

doesnt catch their attention.

6. Variables in a scale of 1-5. Where 5 are the highest and 1 is the lowest.

50
45
40
35 Very Dissatisfied
30
25 Dissatisfied
20 Average
15
10 Satisfied
5 Very Satisfied
0
Taste Texture Packeging Presentation Price
of the
Product

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The graph shows the percentage of the outcome feelings of the 100 respondents

after they ate Potato de Rollo.

For the taste proportion, 41% feels very satisfied. 48% said they were satisfied. 8%

felt average. 0% was dissatisfied and 3% feels dissatisfied.

In gender, 1% female and 2% male answered very dissatisfied. 3% female and 5%

male answered average. For satisfied 30% answered female and 18% male. While 24%

female and 17% male said they were very satisfied. For age, 15-20 has 2%, 1% 21-25

answered very dissatisfied.

In average 8% aging 15-20. Satisfied has 44% has an age 15-20 and 21-25 has 4%.

For very satisfied 33% aging 15-20, 21-25 has 7% and 1% in 26-30.

Texture, 30%answered they were very satisfied. 50% answered they were satisfied.

20% said it was average.

In our packaging, 29% said they were very satisfied. 50% of them were satisfied.

20% is in the average.1% of the tally percentage was very dissatisfied.

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In the presentation of our product, 38% is very satisfied.43% said they were

satisfied. 18% of them were average. 1% of the respondents were very dissatisfied

Lastly, on our price survey, 41% is very satisfied. 40% of them were satisfied. 13%

is average. 6% of them are dissatisfied.

7. How likely are you to purchase the product?

How likely are you to purchase the product?

0% 1% 1%
42% Very Likely
Somewhat Likely
56%
Unlikely
Somewhat Unlikely
Very Unlikely

The graph shows how our respondents are likely to purchase the product. 42% of

the respondents answered very likely. 56% is somewhat likely. 0% of them said unlikely.

1% is unlikely and 1% said very unlikely.

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8. Which of the following drinks do you prefer?

Which of the following drinks do you prefer?


16% 23%
11%
Shake

50% Juice
Tea
Others

The graph shows what kind of drinks they prefer. The shake drink got 23%. Juice

got 50%.While, tea got 11%. And 16% of respondents answered other.

9. What flavor do you prefer for your drinks?

What flavor do you prefer for your drinks?


12% 9% 16%
Apple
19% Lemon
44%
Pineapple
Orange
Others

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The graph shows what flavor of drinks that our 100 respondents prefer. The apple

flavor got 16%. Lemon got 44%. Pineapple got 19%. Orange got 12%. And 9% of

respondents answered other.

10. Would you prefer to purchase a combo meal?

Would you prefer to purchase a combo meal?


8%

Yes
No
92%

Out of our 100 respondents, 92% said yes, while 8% said no, they dont prefer a

combo meal.

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2. Area Coverage

The manufacturing plant of Potato Cravers Company is located at R. Papa St.

Sampaloc, Manila.

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3. Consumer / Customer

Our customers are basically belongs to Class C and D, students and young

professionals ages 15-25 who are studying and working near the location site .

C. Demand and Supply Analysis


1. Total Potential Demand
Total Population is 341,641

341,641
X .03(NICHE)
10,249.23 (TPD PER MONTH)
/ 26 (WORKING DAYS)
394.2011538 (TPD PER DAY)

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2. Present Supplier / Competition


PUREGOLD
Address: Claro M. Recto Avenue, Manila

ULTRAMEGA SUPERMARKET
Address :Narra St. Recto, MAnila

FOR POTATOES: the supplier of the potatoes that we will use in the production
of Potato Cravers will be in Blumentritt and Divisoria Market in Manila.
Address :Tabora St. Ylaya, Tondo Manila
Contact # : 09157648938

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D. Projected Sales
1. Per Month
Target Market x Production Cost x Working Days = Sales
394 x 10 x 26 = 102,440

2. In Volume and in Pesos


In Peso
102,440 x 12 = 1,229,280

In Volume
Target Market x Working Days
394 x 26 =10,244

E. Marketing Program Strategies


1. Practices of Competitors
POTATO GIANT
Product: Potato Bites/Potato Balls
Price: 30-49Pesos
Place: Concepcion Aguila Street Corner 1st St. Mendiola, Manila
Promotion: Through Social Media
POTATO CORNER
Product: French Fries
Price: 35-150Pesos
Place: St. Thomas Square, MoraytaSampaloc, Manila
Promotion: Through Social Media
KFC
Product: Mashed Potato
Price: 30Pesos

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Place: 844 Nicanor Reyes St. MoraytaSampaloc, Manila


Promotion: Through Social Media and TV Advertisement

2. Own marketing Program / Strategies

2.1 Pricing Strategy

Potato Cravers sets up the price through mark-up pricing.

2.2 Distribution Strategy

Retailer Consumer

Distribution Strategy is an important aspect of marketing strategy because it is the process

of moving the products from the firm to the consumers. Potato Cravers is a retailer because

Potato Cravers sell the products directly to the consumers. Our company wants to serve the

products directly so that Potato Cravers can preserve the freshness and the nutrients of Pot

ato de Rollo.

2.3 Positioning Strategy

Potato de Rollo has more nutrients compare to other simple potatoes that Potato Cravers

see in the market. Our Company make sure that our Potato de Rollos is not just a typical

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potato like the other potatoes. The potatoes that we will use are fresh, the bacon and cheese

helps to add taste to the product. Our product is very affordable and it is delicious and is

made of high quality.

2.4 Promotions Strategy

2.4.1 Radio Commercial

Sa unangtinginikaymapapatikim,

Sasarapnitoikaymapaparolyo

Potato de Rollo

Angpotatongmagpaparolyosayosasarap

The Potato de Rollo radio advertisement states that when a consumer first

encounters this product, the consumer tastes it forcibly. And after the eating

of Potato de Rollo, the consumer will feels satisfied.

2.4.2 Video Commercial

In the commercial of Potato de Rollo, there are two students who are

chatting at each other which is the target market of Potato Cravers

Company. On that scene, the boy asks the girl if she wants to eat the Potato

De Rollo but the girl responds that she doesnt know what that is because

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the girl notices that it is new in industry. Alongside, there is a scene

featuring the product. In the last scene, the boy goes to the girls place to give

his Potato de Rollo. After the girl taste it, she feels satisfied which is shown

in the scene.

The reason why a new product has a commercial:

The commercial gives a:

Humor that definitely the most-ft used word to describe what makes a

commercial memorable.

Other words that came up a were tagline and jingle

Many mentioned an iconic-type character as being an integral part of

making a commercial stand out front ha pack.

Another person took it a step further and look into the heart of the

advertising matter in Advertising, especially TV commercials can get

customers in the door only one time. After that, its up the seller to build

trust and loyalty.

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2.4.3 Brand Jingle

Ito angpotatong may 40atednasaya

Potatongsiksiksakeso may bacon pa

Mapaparolyokasasarapnglasa

Halinatmagpotato de rolyo nan a kayo

2.4.4 Social Media

Social Media nowadays plays a great influence in our lives. Potato Cravers

want to keep in touch with its target market. We will use the social media in

order to communicate and reach our target market.If we want to get

information about products or services from companies we can use the

social media in order to obtain information. Potato Cravers will use the

Social Media so that consumers can keep in touch and get more information

about the products well sell and as well as the company.

2.4.4.1 Facebook

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Our Facebook fan page is Potato De Rollo.

Potato Cravers has a Facebook Fan Page where people can see the

background information about the company. Our company used this

networking site because most Filipinos have a Facebook account especially

students and teenagers. In order to know their feedbacks and comments

about our product they can interact with us by leaving a feedback or

comment/s. From this, our company will know what aspect needs an

improvement.

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2.4.4.2 Twitter

Our Twitter account is Potato Cravers

Potato Cravers has a Twitter account where customers can express their

feelings towards our product. We used this networking site so that people

can easily interact with us and use a hashtag #PotatoCravers. By searching

our company name @PotatoCravers customers can tweet or send direct

message to us.

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2.4.4.3 Instagram

Our Instagram account is Potato Cravers.

As of now we have 700 followers. Potato Cravers has an Instagram account

where people can see the latest pictures of our product. Our company used

this networking site so that our customers can be updated with our promos

and if we want to add more flavors on our product.

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2.4.4.4 Website

Our website name is Potato Cravers

We used website because in here, our customers can order directly to us.

The website has all the information needed like the history, product

pictures, general information, delivery methods and they can also leave a

comment.

2.4.5 Seasons Promo

In every business, it is important to have seasonal promos. Having a theme

will provide an interest to every customers. Turning this into a promotion

will add more value. Potato Cravers have 4 seasonal promos namely

Christmas season promo, Mothers day promo, Fathers day promo, and

Valentine s Day promo.

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2.4.6 Opening Grand Launch Plan

For the grand opening of Potato Cravers, For the first 20 customers that will

purchased 3 pieces of Potato de Rollo, they will get 1 for free.

Marketing Selling Expenses

Advertising expense Price per set/pieces Total

Flyers 500pcs x 3pesos 1500.00


POSTERS 30pcs x 50pesos 1500.00

TOTAL 3,000.00

IV. PRODUCTION / OPERATIONS PLAN

A. Technical / Production Description

The technical plan of Potato Cravers compromises the Product Description,

Product Processes, Equipments& Materials, Plant Location and Plant Layout. In

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this area, it discusses how the product Potato de Rollo is produced, what

ingredients and equipments are needed. Potato De Rollos production is done

by using masher, frying pan and electric/gas range. There are about two persons

to do the product.

B. Production Operations Process

1. Step by Step Procedure

Step Picture Description

1 Peel and wash the


potatoes.

2 Add 2 tbsp of salt and


boil.

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3 Mashed the potatoes


and add all purpose

4 Put cheese inside the


potato and then roll it
until it becomes round-
shape.

5 Roll the potato in the


egg and in bread
crumbs

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6 Wrap the bacon around


the potato and secure
with toothpick.

7 Fry it until golden


brown, and use the
strainer to filter the
excess oil.

2. Durations per Step per Batch

STEP NO. PROCEDURE DURATION


Step 1 Brush, Wash and peel the potatoes well. 5 minutes
Step 2 Boil the potatoes and add salt. 25 minutes
Step 3 Mash the potatoes and add all-purpose flour. 10 minutes
Step 4 Put cheese inside the potato and then roll it 3 minutes
until it becomes round-shaped.
Step 5 Roll the potato in the egg and bread crumbs 1 minute
Step 6 Wrap the bacon around the potato and the 1Minute
secure it with toothpick.
Step 7 Fry it until golden brown, and use the 3-4 Minutes
strainer to filter the excess oil.

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3. Labor and Machine Requirement per Step

Machinery Picture Laborer Procedure


Labor 1 First,clean the
Peeler potatoes and peel
it, Then boil it .

Labor 1 Second, Mash the


Masher boiled potatoes.

Knife Labor 1 Third, Slice the


cheese into cubes.

Measuring Spoon Fourth, measure


Labor 1 the ingredients like
mashed potato,
flour, bread
crumbs.
Mixing bowl Labor 1 Fifth, roll the
measured mashed
potato into
scrambled egg and
roll it again to
bread crumbs. After
that cover it with
bacon.

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Fryer Labor 2 Then fry it. And


wait until it turns
into golden brown.

Tong Labor 2 Get the Potato De


Rollo using tong.

Plate Labor 2 Lastly, arrange it in


a plating and serve
it.

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C. Production Schedule

1. Monthly Schedule

Operating Hours 10 hours

Operating Days Monday to Saturday 9am 7pm

Total Production Per Day 400pcs

Total Production Per Week 2,400pcs

Total Production Per Month 10,400pcs

Total Customers Per Day 394

Total Customers Per Month 10,244

Total Customers Per Year 122,928

D. Labor Requirement

1 person in mashing the potato, making the Potato de Rollo

1 person in frying andserve the products

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E. Machinery / Equipment Requirement

EQUIPMENTS PRICE USES


MASHER P100.00 Masher is used to mash the boiled
potato.

KNIFE P120.25 Knife is used for slicing the bacon,


cheese and other ingredients.

CHOPPING BOARD 179.80 Chopping Board is used to place the


ingredients for slicing like the bacon,
oreo and cheese.

PLATE P30.00 Plate is used to put all the sliced


ingredients on it like the bacon, cheese
and oreo in different plates.

MIXING BOWL P50.00 Mixing Bowl is a bowl used for mixing


of all the ingredients like the mashed
potato and all-purpose flour. It can
also used to put the scrambled egg and
bread crumbs in a separate bowl.

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MEASURING SPOON P79.95 Measuring Spoon is used to measure


the ingredients like salt and all
purpose flour.

PEELER P20.00 Peeler is used to peel the potatoes.

TONG P49.75 Tong is used for the purpose of


cooking the food/products.

FRYER P4,500 Fryer is used for frying the products.

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F. Raw Materials

POTATO BACON CHEESE

P30/kilo P175/500grams
P43.95/165grams

ALL PURPOSE FLOUR SALT OREO

P24.55/200grams P8.50/150grams P34/137grams

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BREAD CRUMBS EGG TOOTHPICK

P27.15/230grams P4.50/pc P10/100pcs.


Palm Oil 177/2 liters

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G. Plant Layout/Factory Layout

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H. Store Layout

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I. Waste Disposal System

In our manufacturing plant, we have a system of garbage disposal, the THREE

BIN SYSTEM. In this system, were going to use three colors of garbage bin.

GREEN, YELLOW, BLACK. In the place designated for garbage, GREEN bin would

be for the Dry recyclable wastes such as Plastics (bottles, containers, and

wrappers),Metals(Aluminum and steel cans) and Paper & Cardboards(different

kinds of paper, paper bags, boxes, cardboard packaging, catalogues, newspapers

and magazines.) YELLOW bin for the Organic Wastes (Food/Kitchen waste.), this

includes, Food scraps, food soiled paper and garden waste. GREY/BLACK bin

would be for the Residual Wastes, or the remaining wastes from the BLUE and

BLACK bins. This system is designed to segregate garbage, also to avoid food

contamination.

Potato Cravers Company is paying fees to the City Hall of Manila for the garbage

collection which is the Leonel Waste Management. There will be a daily

collection of garbage to avoid harmful effects to people as well as to maintain

cleanliness in our store and in the entire community.

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J. Quality Control System

POTATO: clean the potato to remove dirt using a food brush and water. To

maximize the water, we will use the basin containers 1, 2,3 and we made sure

that were using fresh potatoes that doesnt have dark spots and we assure that

after boiling the potato it will still look fresh.

BACON: make sure that it is preserve well for the freshness of the meat.

Suppliers must have an of expiry date.

CHEESE: make sure that expiration date should be at least a year and a half

gap in the present year. Suppliers must present the proper tagging of expiry

date.

Potato de Rollo can last until 1 day from the day it was purchased

K. Production Cost

1. Total production per year

4.9 x 394 target market = 1,930.6

1,930.6 x 26working days = 50,195.6

50,195.6 x 12 = 602,347.3

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2. Production Cost per Unit

INGREDIENTS COST UNIT OF COST UNIT QTY. PER COST


MEASURE PER ING. PER PER
MEASURE MEASURE UNIT

POTATO 30 1000grams 0.03 30g 09

BACON 87 250grams 0.35 2g 0.7

CHEESE 10.3 35grams 0.3 1g 0.3

SALT 5 150grams 0.03 0.5g 0.015

BREAD 27.15 230grams 0.12 2g 0.24


CRUMBS

EGG 4.50 6ml 0.75 1.25ml 1

PALM OIL 28.35 250ml 0.1134 6.25ml 0.71

DIP 22 320grams 0.07 5g 0.35

TOTAL 4.15

+ PACKAGING 0.75

TOTAL 4.9

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V. Organizational Plan

A. Legal Form of Business

Partnership

Each of one of the partners will receive a monthly salary inclusive of SSS, Phil Health,

and Pagibig.

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B. Organizational Structure
Samuel Salvador
GENERAL MANAGE
Samuel Salvador
GENERAL MANAGER

SAMUEL SALVADOR
GENERAL MANAGER

MARLA JOSUE ANGELICA SY RAYMON JUNIO DANICA RAMONCHIE


ACCOUNTING SALES ADVERTISING ENOVERO ESPADERO HUMAN
MANAGER /MARKETING MANAGER PRODUCTION RESOURCEMANAG
MANAGER MANAGER ER

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C. Qualification of Officers

A. Position Information

Position Title: General Manager

Immediate Supervisors:

Subordinates: All the managers of the departments

Department/Section: Executive Department

B. Position Requirements

1. Job Summary

The general manager will enforce and uphold the cooperatives credit policy. Authorized to

perform the overall strategies of the company, implementing companys goal, controlling

the work force, examines the budgets and ensuring that all the resources are in good

condition and has a back up plan in case of emergency to achieve the goal of the company.

2. Major Responsibilities

To ensure the day-to-day operations of the company running effectively

To develop and implement effective systems of administration, finance and information

record keeping.

To provide relevant information to individuals and groups and to ensure that good

standards are maintained.

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Develop and implement strategies for overall direction of the company.

To ensure that all information is effectively recorded and shared

To ensure that financial records are accurate and up to date using manual and

computerized systems

Look over the investments funds and manage issues and problems

Implement harmonious relationships with the society, suppliers, investors and customers

Direct the organizations financial goals, objectives and budgets

To create, maintain and update the membership database

To maintain and update information on the website

To attend Board meetings

To assist in the production and distribution of regular news bulletins for the membership

To process and update information gathered from research surveys and feedback

To oversee the operation of membership services as and when specified by the

Chairperson

To supervise the staff members in the office and ensure that best practice in Human

Resource Management is implemented particularly in relation to policies and procedures

To be flexible in approach to work and undertake any other duties that may be required

with the remit of the organization

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C. Job Specifications

Education

Graduate of any four year degree course or has a masteral degree in business course

Degree/Diploma in recreation and leisure management

Experience

- Minimum of five years managerial experience

Competencies

Leadership and managerial skills

Good communication skills

Information technology skills

ECDL or similar qualifications and proficient at using a range of IT packages including

Word, Access, Excel and Sage

Efficient and effective at devising and implementing new office systems

Excellent communication skills and strong customer relations focus

Excellent organizational skills and motivated to work on own initiative

A constructive, positive and progressive attitude to working as part of a team

An interest in sport is desirable but not essential

Experience of working with voluntary, community and/or statutory sector

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POSITION INFORMATION

Position Title: Marketing/Sales Manager

Immediate Supervisor: General Manager

Subordinates: Marketing Staffs

Department/Section: Marketing Department

B. Position Requirements

1. Job Summary

Provide the planning and leadership to the Marketing Department by ensuring that the

appropriate structures, systems, competencies and values are developed in order to meet

and exceed the goals of the Marketing plan. They are also responsible for managing

marketing, advertising and promotional staff and activities at a company or organization.

Takes steps measure, enhance and enrich the position and image of a company through

various goals and objectives and take calculated risks.

2. Major Responsibilities:

Use sales forecasting and strategic planning to increase the sales and profitability of

products

Researching and reporting on external opportunities

Understanding current and potential customers

Initiate market research for the development of new product or service

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Managing the customer journey (customer relationship management)

Developing the marketing strategy and plan

Developing guidelines

Making customer focused decisions

Develop pricing strategies

Evaluate the financial aspects of product development

Manage advertising opportunities

C. Job Specification

Education

Have bachelors degree in marketing or a related field required

Masters in Business or Marketing Preferred

Experience

10 years of progressively more responsible positions in marketing, preferably in a similar

industry in two different firms.

Experience supervising and managing a professional staff of seven.

Competencies

Effective communication skills

Computer skills

Leadership skills

Negotiating skills

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POSITION INFORMATION

Position Title: Finance/Accounting Manager

Immediate Supervisor: General Manager

Subordinates: Accounting Staffs

Department/Section: Accounting Department

B. Position Requirements

1. Job Summary

The Finance/Accounting Manager is responsible for all areas relating to accounting

functions and financial reporting. This position will be responsible for daily, weekly and

monthly accounting tasks and activities. The Finance/Accounting Manager is also expected

to make recommendations to the CEO for developing and maintaining accounting

principles, practices and procedures to ensure accurate and timely financial reporting. The

Finance/ Accounting Manager supervises one staff accountant. This position must meet

tight deadlines and a multitude of accounting activities including general ledger preparation

and financial reporting. Furthermore, extensive care must be taken to ensure that financial

practices are in line with all statutory legislation and regulations. Financial managers may

also be known as financial analysts or business analysts.

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2. Major responsibilities:

Apply a thorough understanding of the financial reporting and general ledger structure

Ensure an accurate and timely monthly, quarterly and year end close

Take the lead to complete the quarterly NCUA Call Report

Prepares monthly schedule of accounts and receivable

Ensure the timely reporting of all monthly financial information

Initiate budget and forecasting activities

Verifies daily cash position reports to secure proper implementation of cash handling

Monitor and analyze department work to develop more efficient procedures and use of

resources while maintaining a high level of accuracy

Interface with other departments to verify transaction report data and issues

Advise staff regarding the handling of non-routine reporting transactions

Respond to inquiries from the CEO regarding financial results, special reporting requests

and the like

Checks and counts petty cash fund handled by accounting representatives

Work with the retained CPA firm to ensure a clean and timely year end audit

Ensure all financial reporting deadlines are met

Assist in development and implementation of new procedures and features to enhance the

workflow of the department

Provide training to new and existing staff as needed

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Work with direct report to establish performance goals and objectives for each year and

monitor and

Advise on the progress to enhance the professional development of staff

C. Job Specification

Education

BA/BS in Accounting or Finance or Business Management

CPA, preferably MBA ( Masters of Business Administration )

Experience

Five to seven years prior supervisory experience in the accounting/financial reporting

areas. Experience working in a credit union or other consumer-oriented financial institution

is required.

Competencies

Must be PC proficient and. Experience with large automated accounting system

Must have strong experience with Microsoft Excel and Word. Interface with Similar core

processing or similar system required.

Strong verbal and written communication skills.


Strong interpersonal, supervisory and customer service skills required.
Ability to multi-task, work under pressure, meet deadlines and be able to thrive in a fast-
paced work environment.
Position Information

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Position Title: Human Resource Manager

B. Position Requirements

1. Job Summary

The Human Resources Director guides and manages the overall provision of Human

Resources services, policies, and programs for the entire company.. The HR Manager

proactively advises on best practice HR and where necessary takes a hands-on role in

dealing with case work.

The HR Manager supports the people management functions that underpin the business

culture. They are also responsible for the benefits, compensation, reward, professional

growth and improvement of all the members of the organization.

2. Major Responsibilities:

Benefits and Compensation

Recruiting and Hiring

Plan and conduct new employee orientation to foster positive attitude towards

organization objectives

Compliance and Protection

Negotiate bargaining agreements and help interpret labor contracts

Employee Development

Represents organization at personnel-related hearings and investigations

Internal Communication

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C. Job Specification

Education

Bachelors degree in Human Resource, Business or other related field

Masters in Business or Human Resource management or a related

Experience

7-10 years of progressively more responsible positions in human resource

Experiencing supervising and managing a professional staff

Competencies

Communication/Interpersonal skills

Teamwork skills

Leadership skills

Strong effective communicator in writing, business presentations and in interpersonal

communication.

Highly developed, demonstrated teamwork skills.

Demonstrates a high degree of confidentiality and unusual common sense.

Able to direct the efforts of a team of diverse human resources professionals.

Demonstrated ability to increase productivity and continuously improve methods,

approaches, and departmental contribution while being cost-sensitive.Commitment to

continuous learning.

Expert in employment law and employee relations and communication.

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Demonstrated ability to see the big picture and provide useful and strategic advice and

input across the company and on the senior executive team.

Ability to lead in an environment of constant change.

Experience working in a flexible, employee empowering work environment. Structured or

large company experience will not work here.

Familiarity and skill with the tools of the trade in human resources including HRIS,

Microsoft Office suite of products, file management, and benefits

Administration.

Experience in organization development and change management.

Experience in multiple locations and globally is a plus.

Position Information

Position Title: Production Manager

Immediate Supervisor: General Manager

Subordinates: Production Supervisor and Assistant

Department/Section: production

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B. Position Requirements

1. Job Summary

A production manager is involved with the planning, coordination and control of

manufacturing processes. They ensure that goods and services are produced efficiently and

that the correct amount is produced at the right cost and level of quality.

Major Responsibilities:

Plan a production schedule for the job

Implement and control the production schedule

Make decisions about equipment use, maintenance, modification and procurement

Work out and implement standard operating procedures for production operations

Ensure efficient collaboration between relevant departments including

procurement, distribution and management

Determine and implement improvements to the production process

Monitor and set quality standards of product

Analyze production and quality control to detect and correct errors.

C. Job Specification

Education

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Bachelors degree - Business Administration, Management, Engineering and

Industrial Technology

Experience

Experience in production and manufacturing process and techniques

Machines and tools handling

Competencies

Computer skills

Critical thinking and problem solving skills

Planning and organizing skills

Communication skills

Negotiation skills

Attentive to details

Position Title: ADVERTISING MANAGER

A. POSITION REQUIREMENTS

1. Job Summary

Advertising managers are in charge of promoting, marketing and advertising a companys

products. They maintain close working relationships with all departments within a

company as well as working intimately with the marketing department.

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2. Major Responsibilities

To provide information to the consumer about the companys products and services

3. Job Specifications

Education

Must be a graduate of Business Administration Major in Marketing or Mass

Communication major in Journalism courses

Experience

At least 2-5 years experience in the field

Competencies

Leadership and Multitasking skills

Creative Skills

Good interpersonal skills

Communication skills

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GANTT CHART
DURATION JAN FE B MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1. Register and obtain 1-31 Days


Business licenses and of Jan. and
permits. 1-28 Days
of Feb.
2. Constructing the 1-7 Days
store

3.Planning of activities 1-31


days

4. Implementing the 1-31days


plan

5. Purchasing the 1-28days


supplies.
6. Placing the 1-28days
equipment and supplies
7. Start of operation 1-31days

8. Purchasing the raw 1-31days


materials
9. Production of 1-30days
Potato De Rollo
10. Opening and Selling 1-31days

11. Dealing with 1-31days


customers
12. flyers and posters 1-30days

13. Planning of 1-31days


promos.
14. Implementing of 1-30days
promos.

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15. Maintaining the 1-31days


operation
16. Planning of Activities Dec &
continuing

F. Administrative Expense

Expenses Amount

Salaries Expense 124,800.00

Rent 60,000.00

Supplies (office) 2,973.72

Supplies (kitchen) 869.75

Utilities Expense 7,800.00

Permit and license 3,000.00

Advertising 12,000.00

Total:
211,443.47

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V. FINANCIAL PLAN
A. TOTAL PROJECT COST
Total project costs are allowable direct and indirect costs incurred by the institution
to carry out approved project or activity. The total project cost of POTATO CRAVERS
includes the Operating Expenses amounting to a total of 211,443.47 ( including the
rent, supplies, light and water, gas and oil, taxes and licenses and advertisement
expenses ), Salaries expense.

Expenses Amount

Cost of good sold 451,584.00

Salaries Expense 124,800.00

Rent 60,000.00

Supplies (office) 2,973.72

Supplies (kitchen) 869.75

Utilities Expense 7,800.00

Permit and license 3,000.00

Advertising 12,000.00

Total:
663,027.47

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B. Source of Financing
One of the most important issues facing all business whether a business is in the
start-up phase or well-established, it is the obtaining of appropriate levels of
financing. One of the Partner contributed 75,000 and other partners has a
contribution amounting to 45,000 from our savings and the 300,000 was borrowed
from the bank.

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C. Projected Financial Statement


1. Projected Cash Flow Statement

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2 . Projected Income Statement

3. Projected Balance Sheet

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Note: Owners equity is divided into percentage by 6 partners whom the General
Manager has 25 % of the total shares while the 5 partners have 15% of the total
shares.

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Note: Owners equity is divided into percentage by 6 partners whom the General
Manager has 25 % of the total shares while the 5 partners have 15% of the total
shares.

Partners Year 1 Year 2 Year 3 Year 4 Year 5


General 125, 000.00 125, 000.00 125, 000.00 125, 000.00 125, 000.00

Manager
Partner 1 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Partner 2 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Partner 3

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Partner 4 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00


Partner 5 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00

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D. Profitability Indices
1. ROI = Earnings Initial Investment / Initial Investment
500,000 / 296,318.37 = 1.69 ( I year and 7 months)

2. Payback Period = Initial Investment / Cash Inflow per Period

= 0.87

3. Net Income Ratio = Net Income / Net Sales

206,318.37 / 998,400 = 0.27

4. Break-even Point = X = FC / P V

Fixed Cost 124,800 ( Salaries Expense)

Price 10

Variable - 4.9

124,800 / 5.1 = 636,480

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E. List of Assumptions Used


All transactions are on cash basis

Unit sold increases by 10% every year

Unit selling price increase by 10% at the start of year 4

Ending inventory for the year should be 20% of the estimated unit sold of the
following year

Cost per unit increases by 5% at the start of 3rd year

Expenses, other than salaries and wages, increases by 2% every year due to inflation

Salaries and Wages increases by 5% every year at the start of year 4

The partners divide all profit

Note: Owners equity is divided into percentage by 6 partners whom the General
Manager has 25 % of the total shares while the 5 partners have 15% of the total shares.
Partners Year 1 Year 2 Year 3 Year 4 Year 5
General 125, 000.00 125, 000.00 125, 000.00 125, 000.00 125, 000.00

Manager
Partner 1 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Partner 2 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Partner 3
Partner 4 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Partner 5 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00

Income Tax Rate is 30%

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F. Schedules
1. Projected Sales for the year 2015
Per Month
Target Market x Production Cost x Working Days = Sales
394 x 10 x 26 = 102,440
In Peso
102,440 x 12 = 1,229,280
Projected Volumes

Target Market x No. of Operating Days

394 x 26 = 10,244

5. Projected Cost of Production/ Operations

Expenses Amount

Cost of good sold 451,584.00

Salaries Expense 124,800.00

Rent 60,000.00

Supplies (office) 2,973.72

Supplies (kitchen) 869.75

Utilities Expense 7,800.00

Permit and license 3,000.00

Advertising 12,000.00
Total:
663,027.47

The College of Accountancy & Business envisions itself to be a leading institution for business studies | 89
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5. Projected Cost of Gold Sold


INGREDIENTS COST UNIT OF COST UNIT QTY. PER COST
MEASURE PER ING. PER PER
MEASURE MEASURE UNIT

POTATO 30 1000grams 0.03 30g 09

BACON 87 250grams 0.35 2g 0.7

CHEESE 10.3 35grams 0.3 1g 0.3

SALT 5 150grams 0.03 0.5g 0.015

BREAD 27.15 230grams 0.12 2g 0.24


CRUMBS

EGG 4.50 6ml 0.75 1.25ml 1

PALM OIL 28.35 250ml 0.1134 6.25ml 0.71

DIP 22 320grams 0.07 5g 0.35

TOTAL 4.15

+ PACKAGING 0.75

TOTAL 4.9

The College of Accountancy & Business envisions itself to be a leading institution for business studies | 90
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6. Schedule of Material Purchases

MONTHLY RENT EXPENSES

MONTH JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL
COST 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

MONTHLY GAS EXPENSES


MONTH JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL
COST 500 500 500 500 500 500 500 500 500 500 500 500 6,000

MONTHLY OIL EXPENSES


MONTH JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL
COST 150 150 150 150 150 150 150 150 150 150 150 150 1,800

MONTHLY SALARY EXPENSES (2 WORKERS)


JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC TOTAL
10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,400 10,4000 10,4000 124,800

The College of Accountancy & Business envisions itself to be a leading institution for business studies | 91
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7. Projected Administrative and Selling Expenses

Expenses Amount

Salaries Expense 124,800.00

Rent 60,000.00

Supplies (office) 2,973.72

Supplies (kitchen) 869.75

Utilities Expense 7,800.00

Permit and license 3,000.00

Advertising 12,000.00

Total:
211,443.47

The College of Accountancy & Business envisions itself to be a leading institution for business studies | 92
.

The College of Accountancy & Business envisions itself to be a leading institution for business studies | 93

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