CHAPTER I
PROJECT BACKGROUND AND HISTORY
Project Proponents
The proponents of the business are Melody Ocampo Silvertino and ______. They thought of a product that is well known in the market which is Longganisa. The business is named Mel’s Special Longganica because Longganisa is a main dish for Filipinos, and thus, Longganisa is similar to a chorizo and also closely associated with the Portuguese linguiça. Its defining characteristics are interpreted differently from region to region.
Longganisa refers to sausages flavoured with indigenous spices, with each region having its own specialty. Among others, Lucban is known for its garlic-laden longanizas. Guagua for its salty, almost sour, variety. Longganisang hamonado (from the Spanish: longaniza jamonada), by contrast, is known for its distinctively sweet taste.
Unlike Spanish chorizo, Filipino longganisa can also be made of chicken, beef, or even tuna. Commercial varieties are made into links, but homemade sausages may be simple patties
Propose name of the Business
The proposed name of the business is Mel’s Special Longganisa which comes from the proponents name. Mel’s Special Longganisa had been chosen in order to procure the best business with our specialization in servicing the people and giving them the best food product available in the country.
Type of Business Organization
Partnerships
The proposed business will be organized as a general partnership. This partnership will be formed according to the articles of the Civil Code of the Philippines that defines partnership as an organization where two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves.
The partnership will operate based on its partnership agreement in its Article of Partnership specifies the functions and responsibilities of each members.
This type of business ownership is considered because of the following advantages:
• it could easily be formed
• there are more persons to conduct the business and to handle its problems
• and the combined ability and resources of partners are source of strength.
The proposed business will adopt the line type of internal organization. Under this type of organization, there is a direct flow of authority from one top position to immediately subordinate levels. This authority flows to subordinate positions directly below and as it goes down it is subdivided. The line type of organization has clear and distinct channels of authority and responsibility
Location of the Business
The business is located in Barangay Paldit Pangasinan where one of the proprietor was residing. The business would be located in Barangay Paldit Pangasinan where many people are passerby and
Brief History of the Business
The Vigan longaganisa is a small and plump native sausage, good for about two or three bites.
It is garlicky and has a yellowish color. Although it is eaten anytime, even as a bread filling, it is
traditional favored as breakfast fare together with fried eggs and steamed or fried rice. It is best dipped in Ilocos vinegar with plenty of chili, garlic and onions.
Filipinos cook them in a pan with water. The longganisa cooks in its own fat after the water evaporates and is then cooked further until it slightly caramelizes. A tip to avoid crumbling is to place it in the freezer for a while before frying it.
Vigan longganisa is said to be an influence of the Mexican salami. The tradition of making this native has existed since the period of the Spanish galleon trade. It is distinct from other Philippine sausages because of its use of the local sugar cane vinegar and Vigan-grown garlic, which are major products of the city as well.
The Biguenos are so fiercely proud of their longganisa that they have made it as the product they would like to be most known for. They had it recognized as the city’s One Town, One Project (OTOP) selection under this national government program.
They’ve endeavored throughout the years to be the top longganisa producer in the Philippines.
Longganisa (sometimes spelled longanisa, longaniza, langgonisa, langgoniza) are Filipino chorizos or sausages. These cured sausages are known in many Philippine regions. The famous types of longganisa originate from the towns of Vigan , Lucban, and Guagua. Pork is the most preferred meat used in making this sausage. Other alternatives are chicken, beef, and tuna.
CHAPTER II
TECHNICAL STUDY
PRODUCTION DESCRIPTION
Mel’s Special Longganisa is determined to become a daily necessity for local Longganisa in an Eggshell dessert addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet Longganisa in an Eggshell dessert and great service, Mel’s Special Longganisa will capitalize on its proximity to the Barangay Paldit Pangasinan to build a core group of repeat customers. Mel’s Special Longganisa will offer its customers the best prepared Longganisa in an egg shell in the area that will be complimented with other pastries, as well as free books that its patrons can read to enjoy their visit.
PRODUCTION SCHEDULE
In starting the operation of the business, the owners should complete the necessary documents and requirements needed for the legalization; this stage of business is organized in a formal manner, which requires registration in various regulating government agencies.
Before a partnership can operate legally, it must first to comply with certain level registration that are summarized as follows:
Place of Registration
2. Department of Trade and Industry (DTI)
3. City of Municipal Hall Permit (Mayor’s Permit)
4. Bureau of Internal Revenue
5. Social Security System
6. Other Agencies as may be required
In building business there are certain requirements to make specific business legal. If the following cannot be obtained the operation will not function well.
BIR 1902 DTI application
Business Permit For employees: SSS,PhilHealth,Pag- ibig
Barangay Clearance Declaration of real property tax
Fire Inspection CertificateSEC
Sanitary plumbing Permit Building Permit
Manufacturing process
T h e p r o d u c t i o n i s v e r y s i m p l e . I t s m a i n c o n c e r n i s t o e n s u r e t h e q u a l i t y a n d t a s t e o f i t s p r o d u c t .
Figure 1.4 Shows Manufacturing Process of Longganisa in an Egg Shell
Recipe of Longganisa in an egg shell
• 6 large eggs
• 3 cups whole milk
• 1/2 vanilla bean, seeds scraped
• 1/2 cup sugar
• 1 envelope unflavored gelatin (about 2 1/4 teaspoons)
• 1/2 teaspoon salt
Directions
Crack egg shell in two not even and pour leche plan in the biggest part.
Top with the egg shell remaining
Freeze for 30 minutes and serve
Using a paring knife, score eggshells two-thirds of the way up, and carefully crack. Separate egg whites and yolks. Transfer 5 egg yolks to a bowl; reserve egg whites and remaining yolk for another use. Bring a small pan of water to a boil. Add eggshells, and boil 3 minutes. Using a slotted spoon, remove shells, and drain. Scrape out membrane, and discard. Set eggshells aside in an egg carton.
Put milk, vanilla bean and seeds, and sugar into a medium saucepan; sprinkle with gelatin. Let stand until softened, about 3 minutes. Cook over low heat, stirring until sugar and gelatin are dissolved, about 2 minutes.
Whisk salt with egg yolks. Slowly whisk in hot milk mixture until combined, and then pour back into saucepan. Cook over low heat, stirring occasionally, until custard is thick enough to coat the back of a spoon, about 3 minutes. Remove vanilla bean. Pour custard through a sieve into a pitcher; discard solids.
Pour 2 tablespoons custard into each eggshell, and divide remaining custard among six 6-ounce ramekins (alternatively, divide all custard among eight 6-ounce ramekins). Refrigerate until set, about 4 hours.
BUILDING & FACILITIES
EQUIPMENT QTY. UNIT COST TOTAL COST
Computer w/printer 2 25,000 25,000 Telephone 2 1,500 3,000 Wall clock 2 200 400 Fax Machine 1 5,000 5,000 Television 4 5,000 20,000 CD player 1 5,000 5,000
CD rack 1 400 400 Medicine Cabinet 1 550 550 Component 1 19,550 19,550 Emergency light 4 1,450 5,800 Generator 1 12,675 12,675 Office Chairs 2 1000 2,000 Air Conditioner 4 17,000 68,000 Exhaust fan 2 1,800 3,600 Fire extinguisher 4 3,600 14,400 Oven chamber 1 100,100 100,00 Walking chiller 1 98,700 98,700 Griller 1 50,000 50,000 CAKE CABINET 2 60,000.00 120,000.00 WATER SOFTENER 1 8,000.00 8,000.00
Gas range (heavy Duty) 1 15,770 15,770
Water dispenser 1 1,000 1,000
Stainless knives 1set 200 200
Spoodle 4 20 80
Ladle 4 20 80
Measuring cups 1set 30 90
Mortar and pestle 2 40 80
Dessert plates 250 200 50,000 Glasses 250 50 12,500 plates 250 60 15,000 tray 75 200 15,000 Tissue holder 40 30 1,200 Pitcher 3 250 750
Longganisa in an Eggshell dessert Mugs 100 90 9,000
Kettle 2 300 600
Juice dispenser 7 500 3,500
cups 250 25 6,250
Wooden rice spoon 2 30.00 60.00
Set of measuring spoon 1 34.75 34.75
Measuring cup 1 40.00 40.00
Bottle opener 1 85.00 85.00
Food tongs 3 70.00 210.00
WASTE DISPOSAL
In Barangay Paldit Pangasinan especially in the place where the shop is located, the proponents will pay the disposal team which comes everyday to pick up the garbage. Every other day of throwing the garbage will make the environment of the Mel’s Special Longganisa. It will provide customer satisfaction on seeing the environment of the Mel’s Special Longganisa business in neat.
SWOT
Strengths:
1. Demand: The demand for Product and quality products at competitive prices is enormous in Barangay Paldit Pangasinan.
2. Customer base: The customer base which is the main element whilst determining the target market in Barangay Paldit Pangasinan.
3. Location: The location factor as argued by Laurence Mathew (2005) is a critical element for strategic positioning of an organization in the target market. The fact that the Barangay Paldit Pangasinan importance and a shop located there can attract customers from both the national and international market makes the location factor
as a key strength for setting-up a Mel’s Special Longganisa Longganisa in the Barangay Paldit Pangasinan.
Weaknesses:
1. Volatile customer base: The major weakness is the volatile nature of the customer base in the Barangay Paldit Pangasinan. The fact that even though the customer potential in the Barangay Paldit Pangasinan is vast, but ever changing due to the nature of the business in the Barangay Paldit Pangasinan makes the customer potential as a critical weakness as much as it is argued as a strength. Since this is an apparent factor for any shop in Barangay Paldit Pangasinan, the weakness is oblivious in nature.
2. Seasonal business: Another important factor that needs to be considered is that Barangay Paldit Pangasinan caters high level of customers during the periods of holiday making whilst supports only the business travellers at other times. This makes it clear that the business for the Mel’s Special Longganisa Longganisa is seasonal in nature.
Opportunities:
1. Differentiation by Pricing: the demand for quality products at competitive pricing is an increasing demand at the Barangay Paldit Pangasinan especially from the customers visiting from the far east of the world as argued by Laurence Mathew (2005). This demand can1 be harnessed by the Mel’s Special Longganisa Longganisa through providing value-added services and quality products at competitive prices.
The financial analysis in the next section will provide a deeper insight on the pricing of the products.
2. Diverse Target market: The diversity in the market which is merely due to the diversity in the passengers to the Barangay Paldit Pangasinan provides an effective method of attracting a niche market or more than one segment of the market with customised products whilst providing a base line of product range to meet the overall demand of the customers.
3. Promotion through embracing culture: The fact that the Barangay Paldit Pangasinan caters visitors from difference culture makes it clear that the Mel’s Special Longganisa Longganisa can attract customers through embracing its promotions reflecting upon specific culture. This even though might appear niche marketing, is actually a successful method of reaching the wider market where the visitors would appreciate the innovation in the promotion as argued by Laurence Mathew (2005).
Threats:
1. Terrorism: The major threat is the element of disaster that can be caused by terrorist attacks. The fact that Barangay Paldit Pangasinan is a pivotal location for terrorist attack is the major threat faced by any shop in Barangay Paldit Pangasinan. 2. New entrants and costs: The threat of new entrants in the market is a critical element. This is also an increasingly concerning factor with the rapid deployment of the construction project for Barangay Paldit Pangasinan which not only increases the opportunities from development but also the threat of new entrants and stiff competition in the target market.
From the analysis above it is clear that even though there are potential threats and certain weaknesses in starting a Mel’s Special Longganisa Longganisa at the Pangasinan, the strengths and opportunities are out performing the weaknesses and threats thus justifying the investment for a new Mel’s Special Longganisa Longganisa in Pangasinan.
DEMAND AND SUPPLY
DEMAND
Based on the data gathered, the past demand shows an increase from 68,850 in 2010 to 76,260.00 and has annual average increase of 2.58%.
Year Y X X2 EXY 2010 68,880.00 -2 4 -137,760.00 2011 69,700.00 -1 1 -69,700.00 2012 71,340.00 0 0 0 2013 73,800.00 1 1 73,800.00 2014 76,260.00 2 4 152,520.00 EY= 359,980.00 10 EXY= 18,860.00 SOLUTION: Yc = a+ bx Where: A = y/n = 359,980/5 = 71,996 B = xy/x2
= 18,860 / 10 = 1,886 Yc = 71,996 + 1,886x Project demand Year X EXY 2010 3 77,654 2011 4 79,540 2012 5 81,426 2013 6 83,312 2014 7 85,198
The proponents use statistical straight line method to project the demand for five years. The projection shows that the demand of Mel’s Special Longganisa in an Eggshell has annual increase of 2.35% and it increases from 77,654 in year 2005 to 85,198 in year 2009.
C. Supply
The table is presented to determine the supply of Mel’s Special Longganisa Product in Barangay Paldit Pangasinan. The supply shows that the past supply of Mel’s Special Longganisa increased from 52,137 in 2001 to 61,664 in 2005, with an average annual increase of 4.31%.
Past supply of Mel’s Special Longganisa
Year Supply Supply
2010 37,741 52,137
2011 39,654 55,516
2012 40,054 56,076
2013 42,111 58,955
2014 44,046 61,664
Projected supply of Mel’s Special Longganisa
Year Y X X2 EXY
2010 52,137 -2 4 -104,274
2011 55,516 -2 4 -55,516
2013 58,955 -2 4 58,955 2014 61,664 -2 4 125,528 EY=284,348 10 EXY=22,493 Solution : Yc = a + bx Where: A = y/n = 284,348 / 5 = 56.870 B = xy / x2 = 22,493 / 10 = 2,249 Yc = 56,870 + 2,249x Year X Yc 2010 3 63,617 2011 4 65,866 2012 5 68,115 2013 6 70,364 2014 7 72,613
The proponents used statistical straight line method in projecting the supply for the next five years. The period supply for Mel’s Special Longganisa in Barangay Paldit Pangasinan.
This shows an increase from 63,637 in 2005 to 72,613 in 2009 and having an average annual increase of 3.36%,
Demand and supply analysis, demand/supply gap
As a result f an average annual increase of 2.58% in past demand and an average of 4.31% increase in supply for sweets shop, still it is very insufficient to satisfy the demand of Mel’s Special Longganisa in Barangay Paldit Pangasinan.
. The demand and supply gap analysis shows that the supply cannot meet the increasing demand of Mel’s Special Longganisa in Barangay Paldit Pangasinan, the percentage of unsatisfied was presented in the table below.
Year demand supply demand unsatisfied
and supply gap demand
2010 68,880 52,137 16,734 24.31%
2011 69,700 55,516 14,184 20.35%
2012 71,340 56,076 15,264 21.40%
2013 73,800 58,955 14,845 20.12%
Demand and supply analysis
The demand and supply gap analysis from the past gap analysis shows the unsatisfied consumer of Mel’s Special Longganisa in Barangay Paldit Pangasinan, since 2010 having 54.31% to 19.14%. but by entering into the business to contribute the proponents share the unsatisfied consumer and will tend to drop form 18.08% in 2010 to 14.77% in 2012.
Projected Projected demand unsatisfied
Year demand supply and supply gap demand
2010 77,654 63,617 14,038 18.08%
2011 79,540 65,866 13,674 17.19%
2012 81,426 68,115 13,311 16.36%
2013 83,812 70,364 12,448 14.85%
CHAPTER III
THE MARKET STUDY
Demand of product
B a s e d o n t h e r e s e a r c h , L o n g g a n i s a h a s e v o l v e d i n t o o n e o f t h e w o r l d ’ s m o s t p o p u l a r d e s s e r t s , t h a t ’ s w h y t h e d e m a n d f o r t h i s i s v e r y p r o m i s i n g .
Price of the product
L o n g g a n i s a h a s c h o s e n f o r t h e s t u d y b e c a u s e I t h a s p r o v e n i t s w o r t h i n t e r m s o f t a s t e . T h e p r o d u c t w i l l s u r e l y b e l i k e d b y t h e c o n s u m e r s . T h e p r i c e i s c o n s i d e r e d t o b e c h e a p e r t h a t o t h e r p r o d u c t s s u c h a s t o c i n o , h o t d o g s , a n d h a m . I t w o u l d o n l y c o s t a c u s t o m e r P 3 5 . 0 0 f o r a L o n g g a n i s a w i t h 6 d i v i s i o n . S i n c e P a n g a s i n a n o i s a s o n e o f t h e k n o w n p l a c e i n , t h e l o c a t i o n i s c o n s i d e r e d a s a d v a n t a g e . T h e a r e a i s o n e o f t h e m o s t d e s i r a b l e l o c a t i o n s .
The marketing program for the product L o n g g a n i s a i s s i t u a t e d i n t h e a r e a n o t h i g h t r a f f i c c o u n t b e c a u s e i t i s l o c a t e d a t B a r a n g a y P a l d i t P a n g a s i n a n , w h i c h h a s a g r e a t a d v a n t a g e i n a c h i e v i n g t h e k i n d o f a t m o s p h e r e t h e b u s i n e s s w o u l d l i k e t o h a v e . B a s e d o n t h e m a r k e t a n a l ys i s , t h e p r o d u c t h a s a n e d g e o v e r i t s c o m p e t i t o r s . B e c a u s e i t c a p i t a l i z e o n i t s u n i q u e c o n c e p t a n d i t s f l a v o r s g i v e s r e f e r e n c e t o t h e c h i l d r e n i m a g i n a t i o n b y w h i c h a r t , t o g e t h e r w i t h o t h e r c h i l d r e n p a r t s , i s c r e a t e d . Organizational Chart
PROPONENTS
Staff
O V E R A L L O B J E C T I V E S • T o l e n d i t s c o n t i n u i t y a n d v i t a l i t y i n p r o d u c i n g d e l i c i o u s a n d n u t r i t i o u s L o n g g a n i s a c o m p a r e t o a n y s h o p s e x i s t i n g t o d a y. S P E C I F I C O B J E C T I V E S • T o P r o v i d e c u s t o m e r s w i t h a u n i q u e t a s t e o f L o n g g a n i s a • T o g r o w a t a p r o f i t a b l e r a t e t o c r e a t e e m p l o ym e n t • T o m a i n t a i n h e a l t h y i n g r e d i e n t s f o r p e r s o n a l w e l l -b e i n g • T o e s t a b l i s h n e w s t a l l e v e r y 2 ye a r s
C H A P T E R I V M A N A G E M E N T O F T H E S T U D Y L o g o a n d D e s c r i p t i o n T h i s i s t h e c h o s e n l o g o b e c a u s e i t s h o w s t h e p r o d u c t i t s e l f , t h e L o n g g a n i s a . I t i s c o n s i d e r e d t o b e a m o u t h w a t e r i n g p h o t o t h a t c o n s u m e r s w o u l d s u r e l y l i k e t o t a s t e a n d w i l l b e v e r y a f f o r d a b l e f o r e v e r yo n e . Longganisa Recipe
Yield 12 to 15 pieces Prep Time 15 to 20 minutes
Cooking Time 15 to 20 minutes, including boiling and frying
3 tablespoons brown sugar
1 tablespoon minced garlic
1 teaspoon liquid seasoning
1 teaspoon freshly ground black pepper
3 tablespoons local white vinegar
1/2 kilo double ground pork
fresh pork casing (washed very well in water and vinegar; or use synthetic casing, available in stores where ingredients for meat processing are sold)
3/4 to 1 cup water
1 In a bowl, mix brown sugar, rock salt, minced garlic, liquid seasoning, cracked black pepper, and vinegar until well incorporated.
2 Add mixture to the ground pork and blend well so the seasoning is well distributed. Set aside.
3 Knot one end of the casing. Using a funnel, slowly stuff the pork mixture into the casing until the mixture reaches the knotted end; tie the other end to enclose.
4 Using kitchen twine, tie the filled casing at intervals to make 2-inch sausages. Refrigerate until ready to cook.
5 To cook: In a pan, boil sausages in 3/4 to 1 cup of water until water evaporates. Fry in its own oil or add cooking oil until golden brown.
Job titles P r o p r i e t r e s s – R e s p o n s i b l e i n t h e o v e r – a l l o p e r a t i o n o f t h e b u s i n e s s f r o m M a r k e t i n g t o B o o k k e e p i n g t o M a n a g e m e n t o p e r a t i o n . S e r v e r – R e s p o n s i b l e f o r s a l e s r e m i t t a n c e . D o a s s i g n e d t a s k s a n d a s s i g n m e n t g i v e n b y t h e m a n a g e r . D o t h e e n d l i n e j o b s i n t h e o p e r a t i o n s . Plant Lay-out 30sqm
I . 1 . O T H E R M A R K E T I N F L U E N C E S D e s s e r t s l i k e L o n g g a n i s a a r e e x t r a l i t t l e s o m e t h i n g a t t h e e n d o f a m e a l t h a t j u s t s c r e a m s l u x u r y a n d d e c a d e n c e . I t ’ s a l i t t l e b i t o f s e l f i n d u l g e n c e t h a t m a k e u s f e e l g o o d . U n f o r t u n a t e l y, m o s t f o o d a l s o r e l y h e a v i l y o n s u g a r o r o t h e r i n g r e d i e n t s t h a t w e k n o w a r e n ’ t g o o d f o r u s . T h a t g o o d f e e l i n g q u i c k l y t h a t i t t u r n s i n t o g u i l t L o n g g a n i s a i s a s w e e t c o n c o c t i o n m a d e w i t h m e a t a n d f l a v o r i n g s . t i m e i f w e c o u l d m a k e W e l l , t h e t h o u g h t o f m a k i n g e a c h t i n y L o n g g a n i s a j u s t s e e m e d t o o m u c h w o r k . L o n g g a n i s a w o u l d b e e a s i e r . S a m e t a s t e , s a m e t e x t u r e b u t w i t h a m u c h c h e a p e r p r i c e . T h e e s s e n c e o f e - c o m m e r c e i n o u r r e s e a r c h i s r a p i d l y g r o w i n g b u s i n e s s t h a t m o s t p e o p l e a r e n o w e a g e r t o r u n w i t h . A s t h e I n t e r n e t h a s c o v e r e d a l m o s t a l l t h e w o r l d i n c l u d i n g e v e r y n o o k a n d c o r n e r , p e o p l e n o w c a n c o n n e c t w i t h t h e o p p o s i t e p o l e w i t h i n a f e w s e c o n d a t m i n i m u m p r i c e . S o , t h e m a r k e t i n g t h r o u g h i n t e r n e t h a s b e c o m e e a s y a n d a n y p r o d u c t o f a n y p l a c e i s a v a i l a b l e e v e r yw h e r e . I t m e a n s yo u r b u s i n e s s c a n s p r e a d w o r l d w i d e i n s h o r t s p a n . M o r e a n d m o r e b u s i n e s s e s o w n e r s a r e g o i n g f o r o n l i n e b u s i n e s s a s i t c a n b r i n g m o r e p o t e n t i a l c l i e n t s t o t h e m . F o r a n y k i n d o f p r o d u c t , w h e t h e r i t i s m e d i c i n a l , h o m e a p p l i a n c e o r c l o t h i n g , yo u c a n v i e w yo u r r e q u i r e d t h e i t e m s f r o m h o m e w i t h t h e h e l p o f
I n t e r n e t m a r k e t i n g w e b s i t e s a n d p l a c e o r d e r f o r t h e i t e m s yo u w a n t . A n d o n t i m e , yo u w i l l g e t t h e p r o d u c t s a t yo u r t h r e s h o l d . M A R K E T I N G S T R A T E G Y A s t h e c u s t o m e r s t o d a y a r e s m a r t e r t h a n b e f o r e , t h e y l i k e t o h a v e d i f f e r e n t k i n d o f t h i n g s f r o m d i f f e r e n t p a r t o f t h e w o r l d . I n t e r n e t m a r k e t i n g h a s m a d e i t e a s y a n d s i t t i n g a t h o m e , c u s t o m e r s c a n s e a r c h f o r t h e p r o d u c t s t h e y w a n t t o b u y a n d c a n o r d e r i t . B e f o r e g o f o r b u yi n g i t , c u s t o m e r s c a n v i e w t h e p r o d u c t . I n c l u d i n g a l l t h e f a c i l i t i e s a n d c o n v e n i e n c e t h a t b o t h t h e c u s t o m e r s a n d t h e b u s i n e s s o w n e r s m a y g e t f r o m t h e e - c o m m e r c e m a r k e t i n g , t h e r e i s m u c h i m p o r t a n c e o f o n l i n e m a r k e t i n g . Q U A L I T Y A S S U R A N C E T h e s e q u a l i t y s t a n d a r d s w i l l b e b a s e d o n c u s t o m e r e x p e c t a t i o n s w i t h r e g a r d t o : • P e r f o r m a n c e • P r o d u c t l i f e • A p p e a r a n c e • T h e Q u a l i t y A s s u r a n c e P r o g r a m w i l l i n t e g r a t e a l l f u n c t i o n s o f t h e c o m p a n y i s a c o o r d i n a t e d , r e s p o n s i v e , a n d e f f i c i e n t e f f o r t t o a c h i e v e t h i s q u a l i t y g o a l b y: • M a i n t a i n i n g h i g h s t a n d a r d s i n p u r c h a s i n g r a w m a t e r i a l s a n d c o m p o n e n t s .
• C o n t i n u i n g t o i m p r o v e o u r m a n u f a c t u r i n g f a c i l i t i e s e q u i p m e n t a n d m e t h o d s . • M a i n t a i n i n g a q u a l i t y a s s u r a n c e o r g a n i z a t i o n a n d s ys t e m w h i c h w i l l a s s u r e q u a l i t y p r o d u c t s a t o p t i m u m c o s t s . T h e Q u a l i t y A s s u r a n c e o r g a n i z a t i o n s h a l l h a v e t h e p r i m a r y r e s p o n s i b i l i t y f o r m e a s u r i n g q u a l i t y a n d p r o v i d i n g q u a l i t y m o t i v a t i o n ; h o w e v e r , q u a l i t y c o n s c i o u s n e s s i s t o b e a n i n t e g r a l p a r t o f t h e a c t i v i t i e s o f e a c h d e p a r t m e n t w i t h i n t h e c o m p a n y. C o n s e q u e n t l y a l l m e m b e r s o f m a n a g e m e n t a r e t o c o n t i n u a l l y s t i m u l a t e a n d e n c o u r a g e c o m m i t m e n t o n t h e p a r t o f a l l e m p l o ye e s t o f u l f i l l t h e c o m p a n y' s p o l i c y. T h i s c o m m i t m e n t w i l l b e d i r e c t e d t o w a r d t h e f o l l o w i n g p r i o r i t i e s : • Q u a l i t y p r o d u c t s a n d s e r v i c e s • O n - t i m e d e l i v e r y • C o s t
Projected financial statement
Table 1.6 Shows the Projected Balance Sheet of Mel’s Special Longganisa
2012 2013 2014 2015 Assets Current Assets Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00 Prepaid rent 30,000.00 30,000.00 30,000.00 30,000.00 Merchandise inventory 8,410.00 9,251.00 10,176.10 11,193.71 Total Current Assets 692,570.00 1,461,891.00 2,299,792.10 3,213,665.71 Fixed Assets Machineries and equipment 11,520.00 11,520.00 11,520.00 11,520.00 Less: Accu. Depreciation 2,200.00 2,200.00 2,200.00 2,200.00 Total Fixed Asset 9,320.00 9,320.00 9,320.00 9,320.00 Total Assets Php715,610.00 Php1,484,931.00 Php2,322,832.10 Php3,236,705.71 Liabilities and 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71
Projected Balance Sheet
Table 1.6 Shows the Projected Balance Sheet of Mel’s Special Longganisa
2012 2013 2014 2015 Assets Current Assets Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00 Prepaid rent 30,000.00 30,000.00 30,000.00 30,000.00 Merchandise inventory 8,410.00 9,251.00 10,176.10 11,193.71 Total Current Assets 692,570.00 1,461,891.00 2,299,792.10 3,213,665.71 Fixed Assets Machineries and equipment 11,520.00 11,520.00 11,520.00 11,520.00 Less: Accu. Depreciation 2,200.00 2,200.00 2,200.00 2,200.00 Total Fixed Asset 9,320.00 9,320.00 9,320.00 9,320.00 Total Assets Php715,610.00 Php1,484,931.00 Php2,322,832.10 Php3,236,705.71 Liabilities and owner equity 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71 E . ) F i n a n c i a l A n a l y s i s
P r o f i t a b i l i t y
N e t P r o f i t M a r g i n = N e t i n c o m e a f t e r t a x
S a l e s
T a b l e 1 . 7 S h o w s t h e N e t P r o f i t M a r g i n o f Mel’s Special Longganisa
Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 P 2 8 7 , 0 4 0 6 7 2 , 0 0 0 P 3 3 1 , 5 2 0 7 3 9 , 2 0 0 P 3 7 3 , 0 2 4 8 1 3 , 1 2 0 P 4 1 8 , 1 4 4 8 9 4 , 4 3 2 P 4 7 8 , 5 4 2 9 8 3 , 8 7 5 . 4 3 . 4 5 . 4 6 . 4 7 . 4 9 O p e r a t i n g P r o f i t M a r g i n = P r o f i t b e f o r e t a x e s S a l e s
T a b l e 1 . 8 S h o w s t h e O p e r a t i n g P r o f i t M a r g i n o f Mel’s Special Longganisa
Year 1 Year 2 Year 3 Year 4 Year 5
P 3 5 8 , 8 0 0 6 7 2 , 0 0 0 P 4 1 4 , 4 0 0 7 3 9 , 2 0 0 P 4 6 6 , 2 8 0 8 1 3 , 1 2 0 P 5 2 2 , 6 8 0 8 9 4 , 4 3 2 P 5 9 8 , 1 7 8 9 8 3 , 8 7 5 .53 .56 .57 .58 .60 G r o s s P r o f i t M a r g i n = G r o s s P r o f i t S a l e s
T a b l e 1 . 9 S h o w s t h e G r o s s P r o f i t M a r g i n o f Mel’s Special Longganisa
Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 P 2 6 8 , 3 2 0 6 7 2 , 0 0 0 P 2 9 5 , 1 5 2 7 3 9 , 2 0 0 P 3 2 4 , 6 6 7 . 2 8 1 3 , 1 2 0 P 3 5 7 , 1 3 3 . 9 2 8 9 4 , 4 3 2 P 3 9 2 , 8 4 7 9 8 3 , 8 7 5 . 4 0 . 4 0 . 4 0 . 4 0 . 4 0 23
Sources of financing the project
F r o m S a v i n g s a c c o u n t s P 3 0 , 0 0 0 . 0 0
F r o m p a r e n t s 3 5 , 0 0 0 . 0 0
P 6 5 , 0 0 0 . 0 0
P r o j e c t e d C a s h F l o w
Table 1.5 Shows the Cash Flow of Mel’s Special Longganisa
2012 2013 2014 2015 2016 Cash Receipts from operation P672,000 P739,200 P813,120 P894,432 P983,875 Cash Disbursements Purchases 420, 000 462, 000 508, 200 559, 020 614, 922 Salaries 67, 200 67, 200 73, 920 84, 000 84, 000 Rent 120, 000 120, 000 120, 000 120, 000 120, 000 Bonus 5,000 5, 000 6, 000 7, 000 7, 000 Misc. 12, 000 14, 400 15, 600 16, 800 18, 000 Taxes and licenses 5, 000 5, 000 6, 000 6, 500 7, 000 Income tax 71, 760 82, 880 93, 256 104, 536 119,636 Net Cash 712, 960 768,480 836, 976 912, 856 985, 558
Cash Bal. beg. 58, 800 654, 160 1, 422, 640 2, 259, 616 3, 172, 472 Cash Bal. end. 654, 160 1, 422, 640 2, 259, 616 3, 172, 472 4, 158, 030
Current operating expenses
PERMITS AND BUSINESS REGISTRATION
Barangay clearance P 70.0
Business permit (barangay) 250.00
Business tax (local tax) 300.0
Permit fees-Mayor’s permit 300.00
PENRO 500.00
Fire safety 156.00
Sticker/Plate 150.00
Health fee 550.00
Sanitary inspection fee 500.00
BIR 600.00
DTI 500.00
SOCIO ECONOMIC STUDY A ) E m p l o y m e n t M e l ’ s S p e c i a l L o n g g a n i s a C o n t r i b u t i o n t o s o c i a l a n d e c o n o m i c d e v e l o p m e n t i s p r i m a r i l y f o r t h e e m p l o ym e n t o f t h e p e o p l e s p e c i f i c a l l y t o t h e r e s i d e n t o f B a r a n g a y P a l d i t P a n g a s i n a n . B . ) I n c o m e I t s a b i l i t y t o g e n e r a t e c o n s i s t e n t p r o f i t s w i l l u l t i m a t e l y d e t e r m i n e i t s w o r t h i n t h e m a r k e t p l a c e . C . ) T a x e s W i t h t h e t a x e s , M e l ’ s S p e c i a l L o n g g a n i s a w i l l p a y t o t h e M u n i c i p a l H a l l a n d B I R , i t w i l l b e a p a r t o n b u i l d i n g a p r o g r e s s i v e n a t i o n . D . ) S u p p l y o f C o m m o d i t i e s T h e r e i s a l a r g e m a r k e t f o r l o n g g a n i s a . S u p p l y i s l i k e l y p r o m i s i n g . E . ) D e m a n d s o f M a t e r i a l s D e m a n d s f o r m a t e r i a l s a r e c o n s i d e r e d a d e q u a t e
