1

Introduction

Space matters. It is a good thing to feel when one can move around freely.

To move around freely, it is a must for someone to have more optimization of space

and maximizing the dimensions of your room. Jam-packed room will make anyone

unable to walk conveniently and fast. Not just the size of coverage is concerned,

but also the comfortability and flexibility.

According to Forest Service Research Paper, when looking for a furniture,

the criteria most frequently mentioned in their findings is the functionality or use.

In relation to this, practicality is one of the most notable attitude of a Filipino. A

furniture must be strong enough to serve the intended use/s.

A home without a chair is incomplete. As widely used all over the world for

centuries, the main purpose of a chair is to be sat down onto. However, making

the chair alone, with the only purpose of being a seat, is ordinary. Here in the

Philippines, with a massive growth of population, a space really concerns people.

The proponents had thought of making an ordinary chair into a chair with multiple

purposes.

With a home of limited space, a chair, a desk, and shelves will cover most

of the area. To decrease the crowdedness, these furniture will be made as one.

The proponents had thought of a combination of a chair, desk, and shelves.

Serving multiple purposes and functionalities, this all-in-one chair can also save

space, in a way this furniture is foldable and ready-to-assemble (RTA).

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2.0 Marketing Aspect

2.1 Product

2.1.1 Product Description

The multi-functional chair is a foldable chair which can be

used in different ways; for studying, working and storing stuff. This

chair has the perfect size to fit in any room. It is collapsible so it can

be carried anywhere you want it transferred.

2.1.2 Product's Benefits

The multi-functional chair will meet the highest quality

appropriate with the reasonable price. It has a unique design and

features that will be easy to transfer and carry around. Since it is

collapsible, it wouldn't take so much space when stored. It is also

made with a sturdy framework which for sure wouldn't be easily

broken. This chair at many uses will cover different purposes of the

customer's will.

2.1.3. Product Testing

The proponents will conduct a test marketing to know what

the market wants and needs, and to ensure that the proponents will

be able to achieve those product features within the business reach.

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Also, a consultation to Forest Products Research and Development

Institute will be made to check whether the product has passed the

standards, legally and physically.

2.2 Marketing Mix

2.2.1 Product

2.2.1.1 Primary Features

This chair will be made of wood and leather. With this product,

the chair is foldable or collapsible. At the beginning of the assembly,

this furniture will be presented as a box. This furniture box will be

portable. When opened, the box can be fixed into a chair and a desk,

with shelves and other drawers inside for storage.

2.2.1.2 Added Value Compared to Competitors

Multi-functional chairs are made to lessen space consumption

especially for those living or working in a small area. These chairs

will be particular to people who looks for furniture that takes less

dimensions. Also, this all-in-one chair is portable, as it was presented

as a box at the beginning.

2.2.2 Place

2.2.2.1 Distribution Channel

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As a pioneer, the proponents will create social media

accounts or pages, such as Facebook pages, Twitter, and

Instagram, where it can display the illustration of multi-functional

chair and show the features of the business product. Social media

will be the main medium of purchasing the product. Proponents also

planned to create partnership with some furniture distributors like

Furniture Manila, and SM Home.

2.2.2.2 Strategic Placing in the Market

Proponents chose social media because of its strong

influence in today's generation. Majority of people are using social

media for communication, work purposes and educational purposes.

Proponents see social media as an opportunity since most of people

are using social media.

2.2.3 Promotion

2.2.3.1 Sales Promotion

The proponents’ method of promotion is by giving 10%

discount to all the products on January for New Year Sale and after

that another 30% discount for Back-to-School promo, this will be

applicable for the month of May.

2.2.3.1.1 Personal Selling

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The proponents selling method is by personal and online

selling. Both methods are necessary because Modernio Company

want to expand its reach and name to everyone and be known and

also have a way of directly communicate on people preferences.

2.2.3.1.2 Public Relations

Philippine International Furniture Show will be a great chance

to showcase the product. The proponents will be in partnership with

Philippine Institute of Interior Designers, Inc. (PIID). Also, the Multi-

functional furniture will be in partnership with Agriculture Training

Institute for using materials such as wood, fibers supplied by farmers

to help the developing community of naturalists. A collaboration for

exhibition preview will happen at Philippine School of Interior Design.

2.2.3.2 Methods and Message

2.2.3.2.1 Type and Media Used

Sella will be using social media, flyers, and public relation

concerning about the furniture in relation with environmental awareness

campaign, multi-purpose, and practicality to promote its product.

“Sella, ang 3-in-1 upuan for every Juan!”

2.2.3.2.2 Message Conveyed

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Since the unique selling proposition of Sella is its multi-

functionality, the 3-in-1 feature of which relates. The term “Sella”

derived from silya, a Tagalog term for chair, is connected to Juan, a

noun referred to Filipinos. All ages of all diversity is not limited to this

multi-functional chair since it can serve to many uses.

2.2.3.3 Spending and Timetables

2.2.3.3.1 Advertising and Promotions

To bridge the gap between the product to its customers,

advertising and promotions will play a huge part in the process.

Comprehensive and sufficient information and details of the product

will be spread through proper media platforms like flyers, and social

particularly paid Facebook advertisement.

As a basis for schedule of promotions, a timetable will be

made accordingly and to be implement and fulfilled. The following

diagram is the Gantt chart schedule for Sella Advertisement and

Promotional Campaigns.

1-Jan 31-Jan 28-Feb 31-March 30-April 31-May 30-June 31July31August

Public Relations

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Video Commercial

Flyers

Based on the chart above, public relations will be involved in

the whole month of March, since the Philippine International

Furniture Show happens annually every March. For the months of

July and August, an exhibit preview will be done at Philippine School

of Interior Design, which can serve as a chance to flaunt the product

and collaborate with several designers.

Video commercial will be done for the whole months of

January, February, and March. This is for the reason that people are

busy on these months and is quite impossible to reach on hand. With

a video advertisement to be posted on Facebook, Twitter, YouTube,

and Instagram, it will help reach potential customers online.

Lastly, flyers will be distributed on the peak months. These will

be given personally since majority is on vacation, which makes it

possible to reach on hand. Also, on the month of January, special

discounts will be given since people just had got over the busy

holiday seasons, and as a manifestation of new life. For the months

of May and June are also in need of flyers to spread discounts and

promos.

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2.2.4 Pricing

2.2.4.1 Pricing Strategy

Sella will use the “cost based pricing”. A reasonable mark-up

will be added to the unit price. However, if the product will be in

demand in the future, a minimum increase in price would be

probable. The proponents considered the cost of production and

distribution and establish the desired profit to come up with the final

pricing.

2.2.4.2 Gross Profit Margin

Monthly Sales = Unit Price X Daily Demand X Approximate no. of days

monthly

Unit Price = ₱ 3,402.49

Daily Demand = 1pc

Approximate No. of Days = 30 days

Computation:

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Daily Sales = ₱ 3,402.49 X 1 pcs = ₱ 3,402.49

Monthly Sales =₱3,402.49 X 30 days = ₱ 102,074.7

Cost of Sales = Unit Cost X Daily Production X No. of Days of Operation

Unit Cost = ₱ 2,346.55

Daily Production = 1 pcs

No. of days of Operation = 22 days

Computation:

Daily Production = ₱ 2,346.55 X 1 pcs = ₱ 2,346.55

Monthly Cost of Sale = ₱ 2,346.55 X 22 days = ₱ 51,624.1

Monthly Gross Profit = Monthly Sales – Monthly Cost of Sales

= ₱ 102,074.7– ₱51,624.1

= ₱ 50,460.6

Gross Profit Margin = Monthly Gross Profit / Monthly Sales

= ₱ 50,460.6 / ₱51,624.1

= 97.75 %

2.3Market Environment

2.3.1 Target Market

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2.3.1.1 Target Market Profile

Sella’s target markets are both male and female young adult

from ages 23 and above since they are employed for wage and has

the capacity to buy. Students and home owners are expected to buy.

The proponents chose this segment of market because the product

is designed for the condominium, dorm, office, and even in a house.

2.3.1.2 Product's Benefits to its Customer

Sella’s customers will definitely patronize this upholstered

furniture because of the reasonable pricing strategy, highest quality

possible, unique structure, and multiple usages.

2.3.2 Business-to-Customer Market

2.3.2.1 Target Markets Demographic Profile

Age
2%
8% 15%

75%

23-25 yrs.old 26-30 yrs.old 31-35 yrs.old 36 above

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As shown in the data above – people who are 36 years old

above is 2% out of 100 respondents of the survey that the proponent

conducted. The highest number of target market belongs to 23-25

years old, which is 75%, followed by 15% from 26-30 years old and

31-35 years old with 8%. The age percentage of the

Gender

55% 45%

Male Female
respondents will help us to decide the design that is mostly being

demanded in the market.

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Based on the shown data above, Female respondents

captured 55% of the market while Male respondents were the

remaining 45%. This only means that the Filipino women are the one

who has the ability to choose and decide when it comes on buying a

furniture in their places. That is one of the reasons why the

proponents have prioritized women to be the primary consumer.

2.3.2.2 Psychographic Segmentation

Majority of people wished to be organized in all of their things

especially women. Although the target market was considered both

men and women, the main target market was considered as women

since women are more organized than men.

2.4 Competitors

2.4.1 Direct and Indirect Competitors

Multi-Functional Desk direct competitors are Dura box,

Orocan, Ikea and Philux. In online marketing, direct competitors are

furniture posted in Lazada, Sulit.com, Amazon, and Olx. Indirect

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10%
4%

5%
33%

5%

25%
6% 12%

Altum Kennethcobonpue
Philux Maze
Mandaue Foam Furniture Republic
competitors would be in-house carpentry, and famous interior

designers.

2.4.2 Market Share

The proponents conducted a survey to gather information

regarding the direct competitor market share. The proponents also

survey 100 respondents from ages 23 years old and above based on

the data that we have gathered we come up with the following

results.

2.4.3 Key Barrier to Entry

“Sella” key barriers to entry would be the number of

competitors that was already established their brands. Consumers

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would prefer usage of furniture in their houses than to buy a new one

when they already have one.

2.4.4 Uniqueness of the Product compared to Competitors

The similarities between the competitors’ product and Sella is

the wood property, excluding the leather. However, typical chairs

made are of one purpose. In Sella’s case, the upholstered furniture

is meant to be multi-functioned, as it was a combination of a chair,

desk, and a storage. It is portable and collapsible. Presented as a

box at first, this furniture can be transformed into its three

components.

2.5 Industry

Chairs at home is usually made of wood or durable plastic,

and that is one basic function of Sella since this upholstered furniture

is made of wood. According to Forest Service, U.S. Department of

Agriculture, people purchase more general-purpose desks than any

other single item of furniture.

Spacious and ordinary chairs are always present in the

market. Moreover, competitors focus more on the trendy designs. As

it was said by Stewart,C. on her Market Research regarding the 5

Top Trends in the Furniture Industry, the versatility of a furniture is

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gaining popularity Also supported by LinkedIn, the search for smaller

sizes of furniture is also growing. Philippines has a constant growing

population, houses in urban and rural are also increasing in number.

Since houses are becoming smaller, smaller furniture is what people

are looking for. “Due to the fact that single- and two-person

households are increasing, the demand for smaller (and portable)

furniture is growing,” states Jürgen Derieuw, a Sales and Marketing

Writer in LinkedIn.

3.0 OPERATING AND TECHNICAL ASPECT

3.1 Production and Operating Requirements

3.1.1 Manufacturing Process

The Sella's wood supplier will be Uni-Wood Lumber and

Construction Supply, at Shaw Boulevard Corner Samat Street 1500

Mandaluyong. JM Roof and Foam Enterprises, located Ortigas

Avenue, corner Meralco Avenue, Barangay Ugong, Pasig City, will

be the foam supplier. And Leather World, located at 295 E dela Paz

St, Sto Nino, Marikina, to be the leather supplier.

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The production process starts at acquiring the pieces of wood,

foams, and leather. A cutting of wood, foam, and leather is to be done

according to the pattern and sizes. After that, an assembly of the

woods is need and attaching it will be supported by nails and hinges.

The foam and the leather can now be attached as a seat. Finally, a

varnish is to be done for the final touches. The multi-functional chair

is now ready for distribution.

Acquisition of
Drying of the
wood, foam, and Wood varnishing
wood
leather

Measuring of Attachment of
Assembling the
wood, foam, and the foam and
pieces of wood
leather leather

Cutting the wood Cutting the foam

into respective and leather Distribution
sizes proportionally

3.1.2 Place of Production

The proponents will set-up the business operation at Doniti

Bldg. Sierra Madre St., Mandaluyong City, Metro Manila (NCR) for

the whole production process. Also, the proponents will also

establish a small office inside it.

3.1.3 Intended Space

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The intended space of Sella production, small office, and

show room will be rented. The allotted amount will be ₱ 4,000.00

monthly.

3.1.4 Materials and Equipment

The proponents will purchase and use wood, foam and

leather as their main materials. The proponents will also purchase a

varnish for the coating of the multi-functional chair, accessories such

as books, bond papers, pencils, marker and ballpens necessary for

the completion of the product.

3.1.5 Manufacturing Process and Procedure

The space for Sella would be enough for its warehousing

since the product is foldable, and this allows the proponents to stock

and hold more products. The provision of materials like pieces of

wood, foam and leather will be coordinated with the respective

suppliers.

Leather World 0910 313 3320

JM Roof and Foam Enterprises (02) 633 8053

Uni-Wood Lumber and Construction (02) 531 6121

Supply

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3.1.6 Outsourced Production

3.1.6.1 Source of Supplies

Sella’s source of materials will be coming from Uni-Wood

Lumber and Construction Supply for the pieces of wood, JM Roof

and Foam Enterprises for the foams, and Leather World for leathers.

All are available for purchase.

3.1.6.2 Terms and Contract

The proponents had engaged into an agreement with its

suppliers and a written contract has been made which stipulates the

terms with regards to termination or modification. Terms of payment,

Delivery, Risk of Loss, Limited Warranty, Suppliers Identification,

Buyer's Identification, Insurance, Force Majure, Confidentiality,

Governing Law, and Miscellaneous.

3.1.6.3 Business Process Protection

Sella would like to apply patent for the process of its products,

regarding its protection.

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3.2 Intellectual Property

3.2.1 Trademark Process

Trademark is the representation of the company or its product.

This gives the company or its product a distinction among others. As

it was stated by Intellectual Property Office of the Philippines

(IPOPHIL) on its website, a trademark is a tool used that

differentiates goods and services from each other, which is an

important marketing tool that makes the public identify goods and

services.

However, this grant of property right requires registration,

which according to IPOPHIL, gives the trademark owner the

exclusive right to use the mark and to prevent others from using the

same or similar marks on identical or related goods and services.

Invention Patent Application Procedures

1. Filing of an Application for Trademark

2. Search and Examination

3. Issuance of Registrability Report

4. Decision to Grant Trademark Registration or Decision of

Refusal

5. Publication

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6. Issuance of the Certificate of Registration

7. Second Publication

3.3 Start-Up Schedule

3.3.1 Gantt Chart Schedule on Product Development Cycle

3.3.2 Phases of Product Completion

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Step 1: Finalizing orders of pieces of wood, foams, and leather.

The proponents need to put orders 3 days ahead from the

depositing date

Step 2: Measuring the wood parts

Upon purchasing the ply board, a measurement of the wood

according to the size of the chair is needed.

Step 3: Cutting

Once the measurements are complete, the wood will be cut

according to the sizes.

Step 4: Putting the parts together

The cut woods will be put together using the finishing nail and

hinges.

Step 5: Applying varnish

An application of varnish is to be done after the setup, to make

the chair look more presentable.

Step 6: Adding up the foam and leather

Once the varnish is dry, it is now ready to put the foam for the

seat and have it covered up with the leather.

3.3.3 Relationship of Events

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July 2017- The proponents will start developing the design of

product.

September 2017- The proponents will conduct a survey.

November 2017- The proponents will conduct online advertising and

will create a website for the product.

January 2018- The proponents will hand out flyers featuring the

product’s promo and discounts to be availed on the launching date.

February 2018- The proponents will start a test marketing by

launching its advertisements and participating in public relations.

January 2018- The proponents will launch their product online.

4.0 ORGANIZATION ANG MANAGEMENT ASPECT

4.1 Vision

Modernio Company is inspired from the employees who have produce

furniture based product with great functionality and surprising result. To be

able to see people using Modernio”s Multi-functional chair in good use and

making people comfortable using it, to promote wellness of nature and gain

some acknowledgement from the masses is what we aspire to have. 3 years

from now Modernio’s brand of innovative product will be known and the market

of Mordernio’s sales will increase due to multifunctional because who else

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does not want two things at the price of one and because the availability of the

raw materials we have access to. Modernio Company will go farther in

economic market on furniture based product to become one of the leading

brands in the market. We are not making one but two for the price one.

4.2 Mission

To create valuable and customized design furniture through passionate

and persistent performance, reliability, innovation, affordability and flexibility.

Modernio Company assures every experience to be worry-free and

comfortable through trust.

We will provide trustworthy furniture’s by making sure that the safety

and satisfaction of the customer will be met.We will provide complete honesty

and dealing with the materials used to make sure that the customer really get

what they deserve for what they have paid for.

To our consumers

Modernio Company strives to enhance the perception of the end

consumer that good furniture can contribute to improve their quality of life

through comfort and satisfaction through providing an innovative lifestyle to

customers.

We want our customers to have a good experience while using our

furniture. We want to make sure that we provide them the best comfort and

satisfaction they’ll need with our Sella furniture.

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To our community

To make meaningful contributions in the community and connect

people by offering furniture and habitat solutions which involves functionality

in furniture.

We will make sure that the materials used in our Modernio furnitures

are eco-friendly. We will make meaningful contributions in the community by

serving people an affordable price with an outstanding performance our

products offer.

To our associates

To work together to achieve a profitable company that can provide

associates with job security, the means to support themselves and their

families, and to attain professional and personal growth as part of the

Modernio Company.

We will make sure that our associates will be provided the best job

security and enough salary to provide their families’ needs too. They will be

also given more opportunity to grow within our company and to be part of the

Modernio Company family.

4.3 Pre-Operating Period

4.3.1 Legal and taxation Requirements

Time to
Procedure Associated Costs
Complete

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Verify and reserve the company name with the
1 1 day ₱40
Securities and Exchange Commission (SEC)
Deposit paid-up capital in the Authorized Agent
2 Bank (AAB) and obtain bank certificate of 1 day No cost
deposit
Notarize articles of incorporation and
3 1 day ₱ 500
treasurer's affidavit at the notary
₱2,665 (₱1,667.99 filing fee equivalent to 1/5 of 1% of the authorized capital stock or the
Register the company with the SEC and subscription price of the subscribed capital stock, whichever is higher but not less than
4 receive pre-registered Taxpayer Identification 3 days ₱1,000 + ₱16.68 legal research fee (LRF) equivalent to 1% of filing fee but not less than
Number (TIN) ₱10 + ₱500 By-laws + ₱150 for registration of stock and transfer book (STB) required for
new corporations + ₱320 STB + ₱10 registration for SEC bulletin)
5 Obtain Barangay Clearance 1 day ₱500 (between ₱0 - ₱600)
After issuance of the SEC certificate of
incorporation, pay the annual community tax
6 1 day ₱500
and obtain the community tax certificate (CTC)
from the City Treasurer's Office (CTO)
Obtain the business permit application form
7 from the Business Permits and Licensing Office 1 day No cost
(BPLO)
₱4,939 (₱2,084.98 business tax (25% of 1% of paid-up capital) + ₱200 mayor’s permit +
Obtain the business permit to operate from the
8 6 days ₱150 sanitary inspection fee + ₱50 signboard fee + ₱250 business plate + ₱100 QCBRB +
BPLO
₱545 zoning clearance + ₱1,300 garbage fee+ ₱259.5 FSIC (10% of all regulatory fees)
9 Buy special books of account at bookstore 1 day ₱ 400
Apply for Certificate of Registration (COR) and
10 2 days ₱ 115 (₱1,000 certification fee + ₱15 documentary stamp tax)
TIN at the bureau of Internal Revenue (BIR)
Pay the registration fee and documentary
11 1 day 3 days
stamp taxes (DST) at the AAB
Obtain the authority to print receipts and
12 1 day No cost
invoices from the BIR
13 Print receipts and invoices at the print shops 7 days ₱ 3500
Have books of accounts and Printer's
14 Certificate of Delivery (PCD) stamped by the 1 day No cost
BIR
15 Register with the Social Security System (SSS) 7 days No cost
Register with the Philippine Health Insurance
16 1 day No cost
Company (PhilHealth)

TOTAL ₱ 17,829.00

4.4 Form of ownership

General Partnership is the type of proponents that organization

agreed upon by consisting of five members. This partnership practices on

legal relation in which each member contributes equal money, property,

labor, or special skills and each partner shares in the profits and losses from

the business. With this, different partners are responsible to provide

payment for their own utility expense and free to make their own decisions

pertaining to their business operations which maximizes the productivity

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given that each partner of product and material management with access

to more manpower to be used for future benefit.

4.5 Management and Personnel

Maricel Serato
General Manager

Anne Nicole Evite

Finance Specialist

Wayne Ching
Khyle Nicole Polo
Operation and Production
Sales and Marketing Specialist
Manager

Jan Terrence Salinas

Production Supervisor

4.5.1 Forecast and Personnel

The proponents will expand its operations by having outlet

stores in the malls. Modernio Company will hire additional manpower to

meet the growth standards of the company's operations by predicting the

number of employees to be hired and also by estimating and knowing their

quality.

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4.5.2.1 Job Qualifications and Job Descriptions of Future Employees

Needed

Wood Worker

Qualifications and Requirements

 Must be a graduate of Business Management or equivalent

 2-5 years of progressively responsible experience in manufacturing

industry or a directly related area during which professional capability

has been clearly demonstrated

 Strong attention to detail

 Proven ability to establish, prioritize and accomplish goals

 Demonstrated ability to work both independently and cooperatively

 Knowledge of business operations and development strategies

 Strong personality and leadership skills

 Ability to work under pressure with little or no supervision

 Ability to document and review business processes

 Strong planning skills

 Microsoft Word and Excel skills

 Excellent interpersonal and communication. skills

 Good organization and administrative skills

Job Description

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 Increases management's effectiveness by recruiting, selecting,

orienting, training, coaching, counseling, and disciplining managers.

 Develops strategic plan by studying technological and financial

opportunities.

 Accomplishes subsidiary objectives by establishing plans, budgets,

and results measurements.

 Coordinates efforts by establishing procurement, production,

marketing, field, and technical services policies and practices.

 Builds company image by collaborating with consumers,

government, community organizations, and employees; enforcing

ethical business practices.

 Maintains quality service by establishing and enforcing organization

standards.

Finance Specialist

Qualifications and Requirements

 Must be a graduate of bachelor's degree in finance, business or

related field; master's degree is common

 Willing to do field work from time to time

 Keen to details

 Team player

 Knowledgeable in Audit Compliance

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Job Description

 Direct annual budgeting and planning process of the organization

annual budget.

 Develop and manage annual budget.

 Oversee monthly and quarterly assessment and forecast of

organization’s financial performance.

 Managing day to day processing of accounts receivable and

payable.

 Recording monthly activity, generating year-ends reports and

fulfilling tax related requirements.

 Managing payroll and employee benefits and organizational

insurance.

 Ensuring that accounting department requests are resolved and

communications in a timely manner to internal and external parties.

 Develop long-range forecast and maintaining long-range financial

plans.

 Prepare annual audit and be a liaison with all outside vendor.

Operations and Production Manager

Qualifications and Requirements

 Must be a graduate of Bachelor of Science in Business Management

 With at least 5 years managerial experience.

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 Good leadership – ability to command compliance and respect from

his subordinates.

 Fast learner, self-motivated and result-oriented, can work under

pressure and flexible.

 Hardworking with lots of initiative and imagination, troubleshooter.

 Highly-analytical and able to generate well-thought out reports.

 Familiarity with Safety Standards & Construction Policies and

Procedures.

 Knowledge and experience in the application of cost and materials

management systems.

 Ability to handle people.

 Customer handling skills – handling difficult customers and

situations, dealing with complaints and customer concerns.

 High competence in computer technology; good command of written

and verbal English.

 Improve the oriental systems, process and policies in support of

organization mission.

 Manage and increase the effectiveness and efficiency and Support

Services.

 Significant role in long-term planning, including an initiative geared

toward operational excellence.

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 Invoicing to funding sources, including calculation of completed units

of service.

Job Description

 Oversees the production of goods and/or provision of services

 Planning and controlling change in production

 Managing quality assurance programs

 Researching new technologies and alternative methods of efficiency

Production Supervisor

Qualifications and Requirements

 College graduate related to Business Studies, Management,

Engineering (Industry)

 Proven leadership skills

 Task oriented, good work ethic

 Able to communicate to any level in the organization

Job Description

 Overseeing and coaching employees

 Translates difficulties and reports from production to Operation and

Production Manager

 Responsible for the systematic and smooth flow of operations in the

production area

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 Promotes and implements the production plan in order

 manufacture cost efficient yield in a timely manager by maximizing

capacity of both manpower and machineries

 Ensures that good manufacturing practices are being observed at all

times in order to maintain the production of quality products.

Marketing Specialist

Qualifications and Requirements

 Graduate of any relevant courses

 Minimum 5 years in Marketing and Brand management position

 Minimum 3 years in sales management position

 Must have at least 3 years direct management of sales programs.

Job description

 Achieves marketing and sales operational objectives by contributing

marketing and sales information.

 Meets marketing and sales financial.

 Determines annual and gross-profit plans by forecasting and

developing annual sales quotas; projecting expected sales volume

and profit.

 Accomplishes marketing and sales by planning, developing,

implementing and evaluating advertising, merchandising and trade

promotion programs; developing field sales action plans.

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 Identifies marketing opportunities by identifying costumer

requirements; defining market, competitor's share and competitor's

strengths and weaknesses; forecasting projected business;

establishing targeted market share.

 Improves product marketability and profitability.

 Provides information by collecting, analyzing, and summarizing data

and trends.

5.0 FINANCIAL ASPECT

This chapter discusses the financial aspect of the business for the first five

years as it specifies the project costs, source of financing, major assumptions

used, and projected financial statements analysis. This chapter gives information

on the profitability of the project and its stability. Furthermore, financial statements

are prepared to meet external reporting obligations and also for decision making

purposes. But the information provided in the financial statements is not an end

and in itself as no meaningful conclusion can be drawn from these statements

alone.

However, the information provided in the financial statements is of immense

use in making decisions through analysis and interpretation of financial

statements. Also, it identifies the financial strengths and weaknesses of the

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business by properly establishing relationships between the items in the balance

sheet and the profit and loss account.

5.1 Capital Requirements and Industry

5.1.1 Pre-Operating Expenses

Table 1

Time to
No. Procedure Associated Costs
Complete
Verify and reserve the company name with the Securities and
1 1 day ₱40
Exchange Commission (SEC)

Deposit paid-up capital in the Authorized Agent Bank (AAB)

2 1 day No cost
and obtain bank certificate of deposit

Notarize articles of incorporation and treasurer's affidavit at

3 1 day ₱ 500
the notary
₱2,665 (₱1,667.99 filing fee
equivalent to 1/5 of 1% of the
authorized capital stock or the
subscription price of the subscribed
capital stock, whichever is higher but
not less than ₱1,000 + ₱16.68 legal
Register the company with the SEC and receive pre-
4 3 days research fee (LRF) equivalent to 1%
registered Taxpayer Identification Number (TIN)
of filing fee but not less than ₱10 +
₱500 By-laws + ₱150 for registration
of stock and transfer book (STB)
required for new corporations + ₱320
STB + ₱10 registration for SEC
bulletin)

5 Obtain Barangay Clearance 1 day ₱500 (between ₱0 - ₱600)

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After issuance of the SEC certificate of incorporation, pay the
6 annual community tax and obtain the community tax 1 day ₱500
certificate (CTC) from the City Treasurer's Office (CTO)

Obtain the business permit application form from the

7 1 day No cost
Business Permits and Licensing Office (BPLO)

₱4,939 (₱2,084.98 business tax

(25% of 1% of paid-up capital) +
₱200 mayor’s permit + ₱150 sanitary
inspection fee + ₱50 signboard fee +
8 Obtain the business permit to operate from the BPLO 6 days
₱250 business plate + ₱100 QCBRB
+ ₱545 zoning clearance + ₱1,300
garbage fee+ ₱259.5 FSIC (10% of
all regulatory fees)

9 Buy special books of account at bookstore 1 day ₱ 400

Apply for Certificate of Registration (COR) and TIN at the ₱ 115 (₱1,000 certification fee + ₱15
10 2 days
bureau of Internal Revenue (BIR) documentary stamp tax)

Pay the registration fee and documentary stamp taxes (DST)

11 1 day 3 days
at the AAB

Obtain the authority to print receipts and invoices from the

12 1 day No cost
BIR

13 Print receipts and invoices at the print shops 7 days ₱ 3500

Have books of accounts and Printer's Certificate of Delivery

14 1 day No cost
(PCD) stamped by the BIR

15 Register with the Social Security System (SSS) 7 days No cost

Register with the Philippine Health Insurance Company

16 1 day No cost
(PhilHealth)

TOTAL ₱ 10,708.00

5.1.3 Supplies

Table 2

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Items Unit Cost Quantity Total Cost

Official Receipt ₱40 2 ₱80

Bond Paper ₱200 2 ₱400

Ballpen ₱10 6 ₱60

Stapler ₱50 1 ₱50

Staple Wire ₱20 3 ₱60

Total Cost ₱650

5.1.4 Fixed Asset

The proponents will purchase a brand new hammer and saw, both from

Stanley Hardware amounting to₱370, and ₱790 each respectively. Five paint

brushes will be bought from Divisoria, amounting to ₱20 each.

Table 3

Particulars Source Quantity Cost

Hammer Stanley Hardware 2 ₱740

Wood saw Stanley Hardware 2 ₱1580

Paint Brush Divisoria 5 ₱100

Total 9 ₱2420

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The proponents will also purchase a laptop (Dell Core 1.5) on its first year of

operation worth ₱10,000.00.

Acquisition of Office Equipment on the 1st Year of Operation

Particulars Source Cost

Laptop Olx.ph ₱10,000

Total ₱10,000

Table 4: Furniture and Fixtures

Particulars Source Cost

Desk Maypajo, Caloocan ₱1,000

Chairs (6 pcs) Divisoria ₱2,100

Total ₱3,100

5.1.5 Inventories

5.1.5.1 Raw Materials Needed

The following is the list of all items needed to production of a multi-

functional chair.

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Table 5

Items Cost Quantity Total Cost

Thick Wood ₱100 4 ₱400

Leather ₱500 1 ₱500

Foam ₱100 1 ₱100

Plywood ₱600 1 ₱600

Nail ₱5 15 ₱75

Varnish ₱50 1 ₱50

Sand Paper ₱20 1 ₱20

Metal Hinge ₱50 6 ₱300

Totals ₱2045

Total cost of materials to create a multi-functional chair is ₱2045

multiplied by units to be produced for a month, which is 22, results to

₱44,990 total materials purchased.

To be able for us to get the cost per unit, the proponents

determined the direct materials used (Total Cost=

₱400+₱500+₱100+₱600), equals to ₱1,600. The proponents don’t hire

any worker so there is no direct labor yet. The manufacturing overhead,

including the indirect materials (total of ₱445), the indirect labor of ₱

107.95 (the quotient of Monthly rate of ₱10,450 by 22 working days,

divided by number of monthly production then multiplied by 5 workers),

and overhead of ₱172.00, is computed with the sum of ₱2,346.55.

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Our unit cost of ₱2,346.55 will be multiplied by the monthly

production of 22 to get ₱51,624.10 as the total inventories.

5.1.6 Capital Contributions

Table 6

Particulars Cost

Pre-Operating Expenses ₱ 17,829.00

Fixed Cost ₱20,520

Inventories ₱51,624.10

Supplies ₱650

Totals ₱90,623.1

Table 7: Partners’ Agreed Capital

MODERNIO
Statement of Changes in Partners' Equity
For the 5 years ended December 31, 2022
Beginning Capital 2018 2019 2020 2021 2022

Serato, Capital
30,000.00 18,646.99 27,931.78 48,138.02 75,460.60
Ching, Capital
30,000.00 18,646.99 27,931.78 48,138.02 75,460.60
Evite, Capital
30,000.00 18,646.99 27,931.78 48,138.02 75,460.60
Polo, Capital
30,000.00 18,646.99 27,931.78 48,138.02 75,460.60
Salinas, Capital
30,000.00 18,646.99 27,931.78 48,138.02 75,460.60
TOTAL
150,000.00 93,234.96 139,658.92 240,690.09 377,303.00

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Add: Net Income

(Loss)
Serato, Capital
(11,353.01) 9,284.79 20,206.23 27,322.58 27,206.32
Ching, Capital
(11,353.01) 9,284.79 20,206.23 27,322.58 27,206.32
Evite, Capital
(11,353.01) 9,284.79 20,206.23 27,322.58 27,206.32
Polo, Capital
(11,353.01) 9,284.79 20,206.23 27,322.58 27,206.32
Salinas, Capital
(11,353.01) 9,284.79 20,206.23 27,322.58 27,206.32
TOTAL
(56,765.04) 46,423.96 101,031.17 136,612.91 136,031.58

Ending Capital
Serato, Capital
18,646.99 27,931.78 48,138.02 75,460.60 102,666.91
Ching, Capital
18,646.99 27,931.78 48,138.02 75,460.60 102,666.91
Evite, Capital
18,646.99 27,931.78 48,138.02 75,460.60 102,666.91
Polo, Capital
18,646.99 27,931.78 48,138.02 75,460.60 102,666.91
Salinas, Capital
18,646.99 27,931.78 48,138.02 75,460.60 102,666.91
TOTAL
93,234.96 139,658.92 240,690.09 377,303.00 513,334.57
Number of Partners:
5.00

The proponents’ initial capital contribution will be ₱150,000. This

will be allotted to all the cost needed to put up the business.

5.2 Financial Assumptions

1. Capital investment is P150,000 broken down into the ff.

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2. P150,000 invested equally by 5 partners.

3. Income are distributable equally.

4. Tax rate is 30% same with current Philippine corporate tax rate.

5. Utilities expense increases 10% annually.

6. Selling price of the product is computed using cost plus method. 45% is

added to the cost to compute SRP.

7. The selling price remains totally the same throughout the 5-year

projection.

8. Annual Supplies Expense & Production supplies annual increase is 10%.

9. (PPE) Property, Plant and Equipment's useful life is 5 years.

10. Taxes and Licenses renewing process: 2% quarterly, 3% semi-annually,

1% annually

11. Advertising Expense, 5000 php with 10% increase anually

5.3 Projected Financial Statement

5.3.1 Balance Sheet

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5.3.2 Income Statement

5.3.2.1 Monthly Income Statement

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5.3.2.2 Yearly Income Statement

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5.3.3 Projected Cash Flow

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5.3.4 Monthly Cost of Good Manufactures

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5.3.6 Monthly Expense Summary

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5.3.7 Yearly Expense Summary

5.4 Financial Analysis

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5.4.1 Break-Even Analysis

5.4.2 Payback Period, Return on Investment and Net Present Value

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6.0 Social Aspect

6.1 Critical Risk Factors
6.1.1 SWOT Analysis

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 Customer Loyalty/Relationship  High transportation costs
 Product quality  Competitors can easily offer
 Affordable Price Range similar products
 Ability to sell online and store
 Wide range of products

OPPORTUNITIES THREATS
 Changing customer tastes due to  Increase in price of inputs
polychromic culture  Increase in competition in market
 Development of proprietary
products
 Continued expansion for online
and store sales

6.1.2 PEST Analysis

POLITICAL ECONOMIC

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 Government Spending  Labor Cost

 Government Stability  Growth Rate

 Taxation  Inflation Rate

 Legislation

SOCIAL TECHNOLOGY

 The students who are currently  To distribute to other forms of

living in dormitories or advertisement (e.g., facebook

condominium, they will benefit and instagram) in order for

“Sella” due to its multi- Modernio’s multi-functional

functional chair. chair to be more known.

 The families who have small

space in their house will benefit

Modernio’s multi-functional

chair because of its efficiency

and portability.

6.2 Regulations/Environmental Issue

6.2.1 Economic aspect of the firm:

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The product helps not only the consumers and proponents, but also

the employees since there is another job opportunity for employees to be

paid. A lot can benefit since the profits could also help the community

because since it is a space-saving furniture, lesser trees can be cut because

it is a 2 in 1 furniture, not only a chair, but also a storage box. Instead of

creating separate furniture, one is enough to help save space and money.

6.2.1.1 The Proponents

The proponents came up with an innovated product that is useful for

people who find it difficult to store or keep objects in certain places. This

also benefit people who live or work in a small area to save space and at

the same time be able to carry around with the help of the furniture when

they need to bring the product somewhere else. This will serve as a source

of profits for the proponents to help them to be organized and efficient

becoming an entrepreneur.

6.2.1.2 Employment
Unemployment is probably one of the biggest problems Philippines

is facing nowadays. The opening of Modernio Company would give

opportunities to unemployed people and might decrease the unemployment

rate. People who can write and read may be enough to be qualified for a

salesman/saleswoman but the product's operation will need people skills

and who have knowledge in designing and creating chairs. Insurances,

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salaries and benefits will be provided to such employees.

6.2.1.3 Government

Paying taxes is mandatory for every organization. Paying tax is an

obligation for every organization so Modernio Company too. Proponents will

be willing to comply every obligation that must be fulfilled including taxes.

Taxes will serve as a way for government to supply the needs and benefit

its whole constituents.

6.2.1.4 Community

Modernio Company will make sure to keep in mind the company

rules and regulation, relationship with providers and the production and

manufacturing of its product state into matter making sure to give only the

best quality and performance to ensure that the future potential customers

will be satisfied and gain good public image on the community about

multifunctional furniture.

6.2.1.5 Customers

Customers will benefit from Modernio Company innovative

multifunctional furniture because of its dual usage and budget friendly cost

benefits include that it is portable, comfortable and easy to assemble taking

into consideration that Sella Multifunctional chair are made of mostly eco-

friendly materials such as wood fibers it will not only it will help the customer

but also reduce over logging in the forest.

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6.2.2 Non-Economic Aspect of the Business Firm:

6.2.2.1 Government Regulations and the Business Compliance

Since this is a business startup involves a series of processes of

registration with the right government agencies and authorities. This

important step is the fundamental and integral step a business must

encounter. This is what makes the company legitimate and duly registered.

The following are the five basic administrative procedures the proponents

will undergo as verified by means of the city survey are.

1. Screening requirements (e.g. check name for uniqueness, commercial

registration, notarize application)

2. Tax related requirements (e.g. local business tax, regulatory fees,

national secure taxpayer, identification number (TIN), registration for Value-

Added Tax (VAT/Non-VAT)

3. Labor standards and social security-related requirements (e.g.

registration for Social Security System (SSS), Phil health, Department of

Labor and Employment (DOLE), and Pag-IBIG)

4. Safety and health requirements (e.g. pass inspections and obtain

certificates related to work safety, building, fire, sanitation, and hygiene)

5. Sector-related requirements (e.g. environment, standards, and other

public interest regulation)

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6.2.2.2 Addressing Environmental Problem
Since the business is located at Doniti Bldg. Sierra Madre St.,

Mandaluyong City, Metro Manila (NCR), a space near the wet market, the

two major factors of environmental issues will be the cleanliness and flood.

Although a place near a market is an advantage, this occupation will risk

the business’ sanitary. However, the proponents guarantee an absolute

hygienic market by proper waste management and right disposal of

biodegradable and non-biodegradable wastes.

Flood is also a risk. The proponents will help lessen the chances of

flood by maintaining the nearest street drainage unclogged as possible.

Possible hazardous and toxic substances used will be kept away from the

environment to ensure safety.

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Forecasted Personnel

Maricel Serato
General Manager

Anne Nicole Evite

Finance Specialist

Wayne Ching Khyle Nicole Polo

Operation and Production Manager Sales and Marketing Specialist

Jan Terrence Salinas

Production Supervisor

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Kiosk Design

Production Layout

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Promo Coupons and Flyers

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Facebook Template

Product Logo

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