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CHAPTER I

EXECUTIVE SUMMARY

NAME OF THE FIRM

Bakecohol will make its way in the business industry specifically in the

pastry industry, yearns to capture the market by offering a best quality of pastry

products such as cake. It is not just a normal cake because it has an ingredient

that makes it unique from other cakes. We all know that we, Filipinos love to eat

sweet foods such as cakes, candies, cookies, ice cream and many more. And also,

Filipinos like to drink alcoholic beverages like wines which serve as a staple to

every celebration that we have. A Filipino occasion will not be complete without

beers and alcohols. So, Bakecohol wants to cater in the market products that will

surely hit their taste preference and will give them satisfaction. Our company will

offer in the customer a cake wherein the taste it have a mixed of different varieties

or kinds of alcohol per cake. Our cake contains a high quality of alcohol that will

balance the taste of the cake, because most of the cake that our market in the

Philippines offers has too much sweet. We conclude that we should create a cake

that will balance the sweetness of the cake and we come up to put an alcohol that

will give us a different taste from the ordinary cake that we usually buy in the

market.

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COMPANY’S LOGO

The Bakecohol logo has a profound meaning behind. Using a circle in a logo

symbolizes the number 1 goal of the business which signifies the unending cycle

of the business. Wherein the business will continuously make products which will

be marketed to earn profit that will be used again for production. And also, circle

for having no beginning and end, suggests connection between the people and the

firm. Combination of the colors red, white and yellow are used for red is associated

with strong sensation, love and attraction that the business need to show to the

customer. Color red has a high visibility that can easily attract the eye; it was used

as an accent color to stimulate people to make quick decisions making people

easily consider our brand over the other. White symbolizes the goodness,

cleanliness, and purity we impart in every action we take in every operation we

take in our firm. Yellow gives hope for a new journey. It gives shine to control the

business’ future journey and to guide the target market that they are in good hands.

Cake obviously is the main product that the business wants to offer to the market.

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It symbolizes sweetness wherein the staffs will ensure that they will give sweetness

and happiness to their customers and to give them good quality of customer

service. Lastly, wine makes the taste of the cake balance. It symbolizes nobility

which is also defining the business’ target market – social classes A, B and C.

Another is that it symbolizes sustenance in life which means that the company wan

the business to be maintained and stimulate.

LOCATION

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BRIEF DESCRIPTION OF THE STORE AND LOCATION OF THE STORE

Having a size of 3X3 meters, the store will be composed of tables where the

customers will sit, glass racks where the food will be putted, manager’s office,

kitchen, locker room, storage room and rest room. All the pastry products that the

Bakecohol offers will be putted in a glass rack, making it more visible and captures

the eyes of the people who pass by. And also, the customers will be the one who

will get their own food in order for them to get enough food that they can eat. The

table in which the employee or cashier work will be placed at the upper right corner.

The store of Bakecohol is located in ground floor of SM Sangandaan at Samson

Road Corner, MH Del Pilar St., Caloocan City, Philippines. Store will be open from

Mondays to Sundays, 10:00am to 9:00pm. We chose this location because SM

Sangandaan is one of the top retail areas in Caloocan city and most of the target

market goes there.

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PLANT SITE

BRIEF DESCRIPTION OF THE PROJECT

Our feasibility study “Bakecohol” is a company that will diversify a regular

cake into a new and unique output that is more dipsomaniac and can fascinate the

market.

Our target market is both millennial and post-millennial. The ages of

millennial ranges from 26 years old and above while the post-millennial ranges

from 13 to 25 years old since they are the one who is capable and usually drink

alcoholic beverages and eat sweets such as cake.

Our main purpose is to be a well-known company within the business

industry and to give unique pastry products that will surely patronized by our target

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market. Furthermore, our main product is named BL Cake (Chocolate flavored

cake with a small amount of Black Label). We also have other flavors of cake in

our list of CakeLush such as JaDa Cake (Red Velvet flavored cake with a small

amount of Jack Daniels) and CakeLure (Mocha flavored cake with a small amount

of Bailey’s). We are also offering other pastry products such as Fluffy Rum

(Mamon), Moonshine Cookies and Cookie Pop (Cookies).

MARKET FEASIBILITY

Bakeshop is common in the Philippine market and we, as one of it, are

competing with a new innovated product which makes our target market easily

attracted to buy it but in an affordable price. Our product is new to the eyes and

tastes of the market. Thus, we have an edge against our direct and indirect

competitors in terms of new diversified product of alcoholic cake that will surely

suits for everyone.

TECHNICAL FEASIBILITY

The company will ensure that we will look for employees that are qualified

and attained our company’s standard in terms of giving our customers a good

customer service and relationship. We also examined and test our appliances,

tools, equipment and paraphernalia. We will assure that all of these are working

well and well tested because those are will be very useful in producing our

products.

MANAGEMENT FEASIBILITY

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Bakecohol shop is producing cakes with a twist of beers and wines to serve

outstanding taste to those people who loves drinking alcohol. We want our

customers to experience a high quality of cakes with liquor but still in control

through our shop. We will make sure that the customer will benefit in the taste and

standard of diversified cakes.

FINANCIAL FEASIBILITY

The financial position will be determined; we included the income statement,

balance sheet, cash flow statement and funds flow statement in our study that help

us to make it easy to analyze and to know if our company will be succeeding or

declining.

SOCIO-ECONOMIC IMPACT

The business provides good quality of products made from branded

alcoholic beverages and pastries that can meet the expectation in terms of the

business’ consumer’s preferences. The company will make sure that our materials

and ingredients that we are going to use in creating the company’s product are

clean and safe in order to avoid harmful substance that can cause contamination

of the food.

CHAPTER II

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INTRODUCTION

BRIEF BACKGROUND OF THE STUDY

The history of cake dates back to ancient times. The first cake was very

different from what we eat today. They were more bread like and sweetened with

honey. Nuts and dried fruits were often added.

The first culture to show evidence of advanced baking skills. This is due to

primarily to advances in technology (more reliable ovens, manufacture/availability

of food molds) and ingredients availability (refined sugar). At that time, hoops

round molds for shaping cakes that were placed on flat baking trays were popular.

They could be made out of metal, wood, or paper some were adjustable.

The icing was usually a boiled composition of the finest available sugar, egg

white and flavorings. This icing is pounded on the cake.

Cakes can be large or small, plain of fancy, light or rich and for the beer it

works as a gentle leavened and liquid in a recipe is an alcoholic beverage usually

made from malted cereal grain (such as barley) flavored with hops, and brewed by

slow fermentation and a carbonated non-alcoholic as a fermented slightly alcoholic

beverage with flavoring from roots or other plant parts.

Beer cake is a cake prepared using a beer as a primary ingredient and other

typical cake ingredients. Some gingerbread cakes include beer in their preparation.

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If you are replacing a liquid that has flat like milk or cream with beer, you need to

compensate for that lost fat.

The experimentation has become a key driver in bakery market and a way

to raise interest with younger consumer in particular.

MISSION

Bakecohol intends to educate the public in wine appreciation and wine

quality. And through providing the best quality of products, Bakecohol would

meet the expectation of the market. And also, the company will give the best

services that the customer will surely love. The company will continuously

improve their products.

VISION

As a manufacturing business, Bakecohol foresees grew and attained the

brand awareness in the global pastry market. A company that is a leading

bakeshop in the Philippines and gaining loyal customers that will make inspiration

with others.

OBJECTIVES OF THE STUDY

This study aims to:

 Satisfy the needs and wants of our market by giving and having the

best quality of products;

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 Serve our customers with love and joy and also give them good

customer service; and

 Establish company’s name and image through giving a unique

product that will give a different and unique taste to the market.

OPERATIONAL DEFINITION OF TERMS

 Alcohol – a distilled beverage that can make a person drunk.

 Bakeshop – it is the place where the finish pastry products are

selling.

 Beverage – a drinkable liquid

 Cake – a finish pastry product of a sweet baked food made from raw

materials.

 Diversify – to produce or sell more kinds of products.

 Millennial – modern or new generation

 Paraphernalia – objects that are used to do a particular activity.

 Pastry – dough that is used to make pies and other baked goods.

 Post-Millennial – coming after or relating to the period after the

millennium.

 Sweet – pleasing to the taste buds at the front of the tongue.

 Wines – the alcoholic fermented juice of fresh grapes used as a

beverage.

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SCOPE AND LIMITATION OF THE STUDY

SCOPE

This Bakecohol shop business have the target market which are most

likely millennials which has an age range of 26 above and post-millenials 13-25

years old. The Bakecohol shop will be established and putted at SM Sangandaan

where most of our target market usually goes.

LIMITATION

This study was conducted to determine how we can present new

diversified product such as alcoholic cake and pastries. Also, our product can only

cater social classes A, B, and C because they are the one who can only afford our

product that is being catered to the market.

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Chapter III

Market Study

This chapter is the most important study because it discusses not just the

market situation but also the demand for the product that can be identified through

demand-supply analysis. It also includes the projected sales for the next 5 years.

This chapter includes different strategies that the business will use in order to

capture and gain market that will help the business to become successful.

METHODOLOGY

This study will use the descriptive method which describe and interpret data

and characteristics about the population or phenomenon being studied. The

researchers used this type of research design because they gathered a

quantifiable topic that can be used for statistical presumption through data

analysis.

SAMPLING PLAN

The researchers used the purposive type of sampling. Because the

researchers come up with the idea of putting up the business at SM Sangandaan

where the target market do usually goes. Purposive sampling may also be used

with both qualitative and quantitative research techniques.

SAMPLING SIZE

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The researchers tend to use the Slovin’s formula in getting the sample size.

The following are the value in order to compute for the appropriate sample size.

The researchers gathered the population of the primary target market particularly

South Caloocan with the year 2017 and has a growth rate of 0.0102 given by the

city hall of Caloocan City.

Total population of South Caloocan area as of 2017:

South Caloocan – 118,857

Formula: (Slovin’s formula)

𝑁
𝑛=
(1 + 𝑁𝑒 2 )

Whereas:

n = number of samples

N = total population

e = error margin or margin of error

118, 857
𝑛=
[1 + (118,857)(𝑒 2 )]

118,857
𝑛=
[1 + (118,857)(0.052 )]

118,858
𝑛=
[1 + (118,857)(0.0025)]

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118,857
𝑛=
(1 + 297.1425)

118,857
𝑛=
298.1425

𝑛 = 398.66 𝑜𝑟 399 𝑟𝑒𝑠𝑝𝑜𝑑𝑒𝑛𝑡𝑠

SAMPLING PROCEDURE

We gathered our data in the area near the SM Center Sangandaan,

Samson Road Corner MH Del Pilar St, 1408 Caloocan City, Philippines. However,

the respondents are limited. We come up with a decision that we will only get 399

respondents who will answer the given questionnaires. We conducted the research

in the said area because it is cost-efficient and convenient.

MARKETING ENVIRONMENT ANALYSIS

We identify what factors affecting the market determined that demographic

factor will be the one that has an impact in the study. We determine the social

classes of each customer and who necessarily cannot afford the product we are

offering. Consumers went to know what’s in the cake, how it is made, and where

it comes. We also identified that people have distinctive in the sense of taste.

Another one is Behavioral factor, there are cases which it affects the buying

behavior of consumers. Cakes usually bought when there is a special occasion

such as birthdays, debut, weddings and other celebration that people usually

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celebrates. Wine Cakes are not commonly popular these days; it is in its way in

promoting and making its name to be known by many. There are different types of

people when it comes with their consumer behavior, some choses to have

discounts, promos and freebies while some choses something new to their taste

and unique from other.

TARGET MARKET ANALYSIS

Our target market in this study would be the male and female under the

ages of 13 years old and above with the social classes A, B, and C only. The

persons involve are the student, employees, professionals and unemployed

customer who particularly consider the value and quality with a reasonable price

over all other aspect considered. These people regularly visit SM Center

Sangandaan located at Samson Road Corner MH Del Pilar St. 1408 Caloocan

City, Philippines.

PROJECTED SALES/MARKET SHARE

All businesses face competition and it leads to innovation. Sellers trying to

set each goal in order to achieve it such as increasing profits, market share, and

sales volume by varying the elements of the marketing mix: price, product,

distribution, and promotion.

The projected market share is 20% of the target market.

COMPETITOR ANALYSIS

DIRECT COMPETITORS

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A. Cakeshot

Product

 Wine Cakes, cupcakes

Price

 The price of products from Cakeshot ranges from ₱70.00-₱1,200.00 (cakes

and cupcakes)

Place

 Inside SM North Edsa Located at UG/F City Center Building, SM North

EDSA Quezon City, Philippines

Promotion

 Print and social media advertisements

INDIRECT COMPETITORS

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A. Betsy’s

Product

 Cakes

 Pies

 Burgers

 Chinese Foods

 Pancit Malabon

Price

 Place Price for Birthday Cakes size 8x 12 for round cakes, orange flavor

₱500, for mocha ₱520, chocolate ₱610, marble ₱610

 Price for Birthday Cakes size 10x12 for round cakes, orange flavor ₱620,

for mocha ₱640, chocolate ₱650, marble ₱650

 Price for Birthday Cakes size 12x12 for round cakes, orange flavor ₱770,

for mocha ₱790, chocolate ₱830, marble ₱830

 Price for Birthday Cakes size 12x16 for round cakes, orange flavor ₱950,

mocha ₱980, chocolate ₱990, marble ₱990

 Price for Birthday Cakes size 18x20 for round cakes, orange flavor ₱2400,

mocha ₱2600, chocolate ₱2800, marble ₱2800

Place

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 10 J. P. Rizal Avenue, Malabon City

Promotion

 Print and social media advertisements

B. Baker’s Fair

Product

 Hopia Long Life

 Hopia Moon Cake

 Tuna Pie

 Cheese Split

 Pizza Square

 Egg Pie

 Cinamon Roll

 Beef loaf

 Tikoy Medium

 Cheezy Crème Rolls

 Fruit Cake

 Pianono

 Mamon

 Cake, depends on the size and design

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Price

 Hopia Long Life for ₱15.00

 Hopia Moon Cake for ₱16.00

 Tuna Pie for ₱25.00 per slice

 Cheese Split ₱20.00 per slice

 Pizza Square for ₱35.00 per slice

 Egg Pie for ₱19.00 per slice

 Cinamon Roll for ₱10.00 per pieces

 Beef loaf for ₱45.00

 Tikoy Medium for ₱155.00

 Cheezy Crème Rolls ₱75.00

 Fruit Cake for ₱90.00

 Pianono for ₱10.00

 Mamon for ₱20.00

 Cake price ranges from ₱300 to ₱5,000

Place

 Avenida

 Recto

 Binondo

 Ongpin street

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 Divisoria mall

 Vmall in greenhills

 Farmers Market in Cubao

 Victory mall Caloocan

 Bayan in Malabon

 Sta. Cruz Manila

Promotion

 Print and social media advertisements

C. Goldilocks

Product

 Cakes

 Breads

 Pastries and Pies

Price

 The price of Goldilocks ranges from ₱20-₱3000 (cakes)

 The price of Goldilocks ranges from ₱50-₱300 (pastries and pies)

 The price of Goldilocks ranges from ₱20-₱500 (breads)

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Place

Goldilocks have their branches at different cities and provinces such as:

 Caloocan

 Manila

 Baguio

 Davao

 Mandaluyong

 La Union

 Antipolo

 Cebu

 Bulacan

 Batangas

 Cavite

 Laguna

 Pasay

 Edsa

Promotion

 Print and social media advertisements

 TV Commercials

 Event Sponsorship

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MARKETING STRATEGIES

Product

Our products are unique because of the high class of wine like Black label,

Jack Daniel’s, Tequila, and Rum that we put as an ingredient in the cake. Although

we put different kinds of wine or alcoholic drinks, we assured you that it have a

little amount of it for the people who cannot handle a high percent of alcohols or

wines, and we think that we should make a cake to balance the flavor, because

other cakes that we usually buy in the cake stores are too sweet. In our store you

can buy different variety of cake or pastry product that you like. We also offer

different kinds of wine in our store. We will apply the unique names to attract our

customer to see and taste our products.

You can see our products in Cake Lush or the Menu for our products. The

cakes and pastry that are available in our store are BL cake also known as Black

Label Cake, Jada Cake for Jack Daniel’s, Cake Lure for the tequila flavour. For

mammon, we have the Fluffy Rum. For Cookies, we have Moonshine Cookie and

Cookie Pop. We don’t put wine or alcoholic because we think that for the Cookies

we will offer it for the kids.

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Price

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The price of BAKECOHOL is reasonably affordable. To meet the demand

of the customers, we set our price at their desired level of satisfaction. Our price

was set and based on the total cost plus pricing for our product offer. Under this

approach, the direct material cost, direct labor cost, and overhead costs for a

product are added together and also the 15% markup (to create a profit margin) in

order to derive the price of the product. The price of the cake is ₱1,280.50, per

slice it is ₱160, for our mammon it has a price of ₱70 and the price of the cookies

is ₱30 each and ₱350 per box with 12 pieces of cookies.

Place

The place where our business will be established is in the SM Sangandaan,

Samson Road Corner MH Del Pilar St. Caloocan City. The location of the business

is somewhat challenging and strategic at the same time. Challenging, because

competition is high in the area and competitors are literally all over the place. On

the other hand, There is a lot of competitor that we need to beat and it is strategic

because although the place caters lots of food businesses, it will be a big help to

let the customers know what makes our products unique and what makes it stand

out from the others.

Promotion

Our company use different type of promotion first is through TV commercial

it will be aired between 8-10 pm also known as prime time because our target

market is not just children who likes cakes also adults who's avid drinker of alcohol

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and this time slot is suit for everyone because it’s the time where family is now at

home and watching TV. Second, online advertising a pop-up through social media

like Facebook, Instagram, and Twitter because we all know everyone now consider

social media as necessities and almost all often use it. And last through word of

mouth we will make sure the quality of our products satisfy our consumer and

encourage them to recommend our store their other friend to visit and try our

products.

 Social Media Accounts

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CHAPTER IV

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Technical Study

This section of the study discusses the operational activities of the

company. It will provide the necessary raw materials and supply lists for the

production of the goods. Plant size, layout and production schedule are all

presented for the purpose of identifying the business operation. The product

features, advantages, and benefits of the product, the list of the needed equipment

are enumerated with their corresponding cost are also cited.

TECHNICAL ASPECT OBJECTIVES

 To be able to maximize the use of our resources.

 To determine the equipment and raw materials to be used for the

product.

 To know the appropriate size and layout of the plant.

 To determine the production schedule, utilities, waste disposal, and

direct labor requirements.

PRODUCT

Our product is pastries most specially cakes. It will be made raw ingredients

including wine because it is the secret ingredient that we added in order for us to

be unique to other competitor who is already offering same products we will cater.

We are also going to offer some cookies and mammon so that the customers have

variety of product to choose with.

DESCRIPTION OF THE PRODUCT

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There is a distinct advantage of pastry products that makes them worth

considered. Pastry foods are full of tastes as it cooks more within its own oil, so it’s

very juicy and rich in flavor if cooked with accurate time, temperature and

measured ingredients; otherwise baked item will become too dry, hard and will not

taste good.

PRODUCTION PROCESS

Production Schedule

Our business will operate for mall hours a day, from 10:00 am up to 9:00

pm. All products including the ingredients would be regularly checked and be

included in our inventory of items. The employees on the store will happily serve

the customers. The employees will receive their compensation every 15th and 30th

of the month. All products will be checked every day, the smallest details and also

the inventory will be checked to keep the smooth flow of the operation.

Procedure on making cakes:

Cake is a form of sweet dessert that is typically baked. In its oldest forms,

cakes were modifications of breads, but cakes now cover a wide range of

preparations that can be simple or elaborate, and that share features with other

desserts such as pastries, meringues, custards, and pies. Separate eggs. Allow

egg yolks, egg whites, and butter to stand at room temperature for 30 minutes.

Meanwhile, grease and lightly flour two 9x1-1/2-inch or 8x1-1/2-inch round cake

pans; set pans aside. Mix flour, baking soda, and salt; set aside. In a small

saucepan combine chocolate and 1/3 cup water. Cook and stir over low heat until

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melted; cool. In a large mixing bowl beat butter with an electric mixer on medium

to high speed 30 seconds. Gradually add sugar, beating until well combined.

Scrape sides of bowl; continue beating for 2 minutes. Beat in egg yolks, one at a

time, beating well after each addition (about 1 minute total). Beat in cooled

chocolate mixture and vanilla. Add flour mixture and buttermilk alternately to

beaten mixture; beat on low speed after each addition until combined. Thoroughly

wash the beaters. In a large mixing bowl beat egg whites with an electric mixer on

high speed until stiff peaks form (tips stand straight). Gently fold egg whites into

the batter. Spread batter into the prepared pans. Bake in a 350 degree F oven for

20 to 25 minutes for 9-inch pans. 25 to 30 minutes for 8-inch pans or until a wooden

toothpick comes out clean. Cool cakes on wire racks for 10 minutes. Remove from

pans. Cool thoroughly on wire racks. Spread Coconut-Pecan Frosting over tops of

cakes, stacking layers. It can make 12 to 16 servings.

PLANT LOCATION, GEOGRAPHICAL LOCATION OF COMPETING

COMPANIES

The plant site would be located at SM Sangandaan, Samson Road Corner

MH Del Pilar St. Caloocan City.

Company Location Type of store

Cakeshot SM City North EDSA Physical store

RAW MATERIALS AND SUPPLIES

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Ingredients

Name Picture Quantity Unit Price Total Price

₱500 per
Flour 20 sacks ₱10,000
sack

₱30 per
Sugar 50 kilo ₱1,500
kilo

Baking ₱600 per

10 sacks ₱6,000
Powder sack

₱120 per
Eggs 100 trays ₱12,000
tray

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₱350 per
Milk 10 gallon ₱3,500
gallon

₱48 per
Butter 100 pack ₱4,800
pack

₱250 per
Salt 1 sack ₱250
sack

₱400 per
Olive Oil 2 gallon ₱800
gallon

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Chocolate ₱250 per

5 gallon ₱1,250
Syrup gallon

Red Velvet ₱300 per

5 gallon ₱1,500
Syrup gallon

Black Label 3 box ₱7,200 ₱21,600

Jack
3 box ₱9,000 ₱27,000
Daniels

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Bailey’s 3 box ₱6,300 ₱18,900

Total ₱109,100

Equipment

Unit Total
Name Picture Quantity
Price Price

Baking Pans 3 pcs ₱500 ₱1,500

Parchment
10 pcs ₱100 ₱1,000
Paper

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Wax Paper 12 pcs ₱100 ₱1,200

Oven
1 pc ₱20,000 ₱20,000
Thermometer

Rubber
5 pcs ₱100 ₱500
Spatula

Icing Spatula 5 pcs ₱100 ₱500

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Whisk 7 pcs ₱50 ₱350

Pastry Brush 10 pcs ₱50 ₱500

Bench
5 pcs ₱20 ₱100
Scraper

Mixing Bowl 20 pcs ₱200 ₱4,000

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Mixer 2 pcs ₱3,000 ₱6,000

Cookie
2 pcs ₱500 ₱1,000
Cutter

Rolling Pin 3 pcs ₱100 ₱300

Pastry
2 pcs ₱3,000 ₱6,000
Blender

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Pastry Cutter 2 pcs ₱500 ₱1,000

Pastry
2 ₱1,000 ₱2,000
Crimping

Total ₱45,950

Furniture and Fixtures:

Unit Total
Name Picture Quantity
Price Price

Locker 2 pcs ₱5,000 ₱10,000

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Air
4 pcs ₱20,000 ₱80,000
Conditioners

Sink 2 pcs ₱1,500 ₱3,000

Plant 2 pcs ₱1,000 ₱2,000

Full set of

Wine 2 pcs ₱15,000 ₱30,000

Cabinet

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Wooden

Glass Cake 2 pcs ₱7,000 ₱14,000

Cabinet

Tables 6 pcs ₱3,500 ₱21,000

Mantle 5 pcs ₱500 ₱2,500

Chairs 22 pcs ₱1,500 ₱33,000

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Flower Vase 6 pcs ₱1,000 ₱6,000

Mirrors 2 pcs ₱500 ₱1,000

Liquid Soap 2 pcs ₱50 ₱100

Hand Dryer 2 pcs ₱1,500 ₱3,000

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Cashier 1 pc ₱5,000 ₱5,000

Sofa 1 pc ₱8,500 ₱8,500

Name Plate 1 pc ₱200 ₱200

Carpet 1 pc ₱1,000 ₱1,000

Total ₱220,300

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Utensils

Name Picture Quantity Unit Price Total Price

Plates for

Cake
20 pcs ₱20 ₱400
(medium

size)

Plates for

Mamon 20 pcs ₱15 ₱300

(small size)

Spoon for

Cake
20 pcs ₱12 ₱240
(regular

size)

Fork for

Cake
20 pcs ₱15 ₱300
(regular

size)

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Teaspoon 20 pcs ₱10 ₱200

Bread Knife 20 pcs ₱10 ₱200

Wine Glass 20 pcs ₱20 ₱400

Tea Cups 20 pcs ₱55 ₱1,100

Glass 16 oz. 20 pcs ₱18 ₱360

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Table
200 pcs ₱20 ₱4,000
Napkin

Corkscrew 10 pcs ₱75 ₱750

Total ₱8,250

Other tools and equipment’s:

Name Picture Quantity Unit Price Total Price

Laptop 1 pc ₱25,790 ₱25,790

Display rack 4 pcs ₱950 ₱3,800

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Wall display
3 pcs ₱1,200 ₱3,600
rack

Cash box 2 pcs ₱1,800 ₱3,600

Electric Fan 4 pcs ₱850 ₱3,400

Wall clock 2 pcs ₱350 ₱700

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Battery 3 packs ₱60 ₱180

Fire
3 pcs ₱1,499 ₱4,497
extinguisher

Emergency
2 pcs ₱1,259.75 ₱2,519.50
Light

Total ₱48,086.50

OVERALL TOTAL EXPENSES ₱431,686.50

UTILITIES

Monthly expense

Rental fee (store) ₱10,000

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Electricity Bill ₱8,000

Water Bill ₱580

Internet Fee with Telephone ₱1,299

Total ₱29,879

WASTE DISPOSAL

Proper waste disposal is necessary to maintain the cleanliness of the

surroundings and it will help our environment to preserve for the future generation.

We are making a high quality of cake therefore we should be in pristine condition

and environment to maintain the quality of the cake. The packaging of our product

is categorized as a biodegradable waste and for the waste of the ingredients for

making the cake will be categorized as Non-biodegradable. Since our business

would have wastes that are composed of supplies that are biodegradable like the

box of the cake, egg shells and wine bottle.

Non-biodegradable:

 Box of the cake

 Wine bottle

The company will set a rules and regulation in proper disposal of waste.

Reusing and recycling would be one of the factors to minimize the waste.

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DIRECT LABOR REQUIREMENTS

Our company will hire at 5 workers for the shop – 2 bakers, 1 store manager,

1 social media manager and 1 cashier. The employee for the shop will have a

backup if ever the employee gets sick or would have to take a leave. The

employees will be compensated by the number of cakes, cupcakes or drinks that

they will produce. The employees in the office will be the one to handle all the

online orders. The employees will receive their compensation every 15th and 30th

of the month. There will always be ₱5000 or more it depends on their performance,

position and loyalty to the bakeshop the spare money on the cashier at the

bakeshop.

The employee/s for the bakeshop and office shop must possess the following

requirements:

• Must know how to follow written plans and outlines

• Should have the ability to work accurately and quickly to meet the deadlines

• Should have an eye for detail and concern for quality

• Know the procedures and ingredients on crediting the product

The employees for the store must have the following requirements:

• Must at least have basic mathematics knowledge

• Must have a pleasing personality

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• Knows how to deal with customers

• Should be attentive and alert at all times

CHAPTER V

MANAGEMENT STUDY

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In this section of the study discusses about the managerial requirements of

the business form of business ownership, Capitalization including amount and

source, Organizational structure, Manpower requirements such as job title, job

description and job specification, compensation, Organizational policies and legal

requirements of the business.

MANAGEMENT OBJECTIVES

 Ensure that business resources and systems fit with what is needed in the

future to deliver profitability and sustained growth.

 Generate employment.

 Maintain a good relationship with the employees and the customers.

FORM OF BUSINESS OWNERSHIP

Bakecohol will start out as a partnership type of business which is owned

by two or more person, Mr. James Dimailig, Mr. Vince Sarga, Mr. Lenard Gurion,

Ms. Grace Magayones, Ms. Fame Yamit, Ms. Irish Victoriano, Ms. Rea Abanes

and Ms. Sophia Martin will contribute their assets to run the business and share

its profits and losses with each other.

ADVANTAGES OF PARTNERSHIP:

 two heads (or more) are better than one

 your business is easy to establish and start-up costs are low

 more capital is available for the business

 you’ll have greater borrowing capacity

 high-calibre employees can be made partners

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 there is opportunity for income splitting, an advantage of particular importance

due to resultant tax savings

 partners’ business affairs are private

 there is limited external regulation

 it’s easy to change your legal structure later if circumstances change.

DIS-ADVANTAGES OF PARTNERSHIP:

 the liability of the partners for the debts of the business is unlimited

 each partner is ‘jointly and severally’ liable for the partnership’s debts; that is,

each partner is liable for their share of the partnership debts as well as being

liable for all the debts

 there is a risk of disagreements and friction among partners and management

 each partner is an agent of the partnership and is liable for actions by other

partners

 If partners join or leave, you will probably have to value all the partnership

assets and this can be costly.

CAPITALIZATION

Name Gender Age Position Initial Capital

James Male 17 Main Owner ₱ 350,000

Dimailig

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Vince Male 18 Partner ₱ 100,000

Sarga

Lenard Male 17 Partner ₱ 150,000

Gurion

Grace Female 17 Partner ₱ 140,000

Magayones

Fame Female 18 Partner ₱ 250,000

Yamit

Irish Female 18 Partner ₱ 130,000

Victoriano

Rea Female 18 Partner ₱ 120,000

Abanes

Sophia Female 17 Partner ₱ 110,000

Martin

The total capital that the Bakecohol shop had is ₱ 1,350,000 which is

contributed by James Dimailig who is the main owner together with his other 7

partners that will run the business.

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ORGANIZATIONAL STRUCTURE

Owner

Social
Baker Store
Media Cashier
Manager
Manager (1)
(2) (1)
(1)

MANPOWER REQUIREMENTS

Baker

Job Specifications:

 He/ She must be at least 25 years of age

 He/ She must have a 2 years of experience on baking pastries

Job Description:

 Primarily to bake bread pastries

 Designs the cake with different designs

 Check the finished products for imperfections

 Fit, alter, repair according to the desires of the clients

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Store Manager

Job Specification

 He/ She must be at least 25 years of age

 Contain strong leader skills

 Good in interpersonal and multitasking skills

 Good in math and budgeting

 He/ She must have a 2 years of work experience as a manager

 BS in Communications, Marketing, Management, Human Resources or

Public Relations

Job Description

 Gives and keeps the employees of Bakecohol shop motivated, resolve and

make hard decisions for the employees.

 Maintain employees, customer management. Create schedules, other

supplies and reports as it takes time management.

 Monitors the flow of business sales

 Selecting the right employees to hire to help ensure to maintain an efficient

and motivated team.

 Ability to interact with the customers is crucial for repeat business,

employee morale and the health of the company.

Social Media Manager

Job Specification:

 He/ She must be at least 25 years of age

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 Proven working experience in social media or related field

 Excellent consulting, writing, editing (photo/video/text) and communication

skills

 Knowledge of online marketing

 Positive attitude, detail and customer oriented with good multitasking and

organizational ability

 BS in Communications, Marketing, Business or Public Relations or

Information Technology

Job Description

 Build and execute social media strategy to promote the Red String bags.

 Generate, edit, publish and share daily content that builds meaningful

connections to the target customers of Bakecohol.

 Give daily update about Bakecohol products.

 Create an attractive promotion in online world to encourage the market.

Cashier

Job Specifications:

 Female

 She must be at least 25 years of age

 Customer service oriented with the ability to meet sales goods

 Reliable, hardworking, with ability to perform multiple assignments at the

same time.

 Effective communication with customers.

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Job Description:

 She must will be responsible in assuring good quality of service

 Keep the shop floor clean and tidy

 She must always check the money in the cashier

COMPENSATION

Compensation scheme

The monthly salary of Store Manager is ₱20,000 while for the baker is

₱10,000 each and for the Cashier and Social media manager is ₱7,500.

Employee Benefits

Social Security System (SSS) Contributions

Covered employees are entitled to a package of benefits under Social

Security System Programs in the event of death, disability, sickness and old age.

Basically, SSS provides for a replacement of income lost on account

aforementioned contingencies.

The benefits under SSS Program are:

 Sickness

 Maternity

 Disability

 Retirement

 Death

 Funeral

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Philippine Health Insurance (Phil Health)

Provides financial assistance for inpatient and outpatient hospitalization, as

well as Z Benefit Packages for patients undergoing prolonged hospitalization and

expensive treatments and suffering from Millennium Development Goal (MDG)-

related illnesses.

Home Development Mutual Fund (Pag-ibig Fund)

This entitles employees to avail of a Housing Loan, Calamity Loan, and

Multi-Purpose Loans that aim to provide financial assistance to their needs.

Payments of salaries

 Monthly salary will be released with two payments, first half was on the

fifteenth day and the other half was on the last day of the month with free

lunch meal daily.

ORGANIZATION POLICIES
Rules and Regulations
Penalties

Violations 1st 2nd Offense 3rd Offense

Offense

Tardiness Reminder Oral Considered as

Reprimand absent

Not performing duties Reminder Oral Two (2) days

properly Reprimand suspension

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Absent without notice Reminder Oral Termination

Reprimand

Theft/Fraud/Other Termination ------ -----

Unlawful Act

Working hour’s schedules

Open hours- 10:00am

Break – 12:30pm-1:30pm

Closing hours – 9:00 pm

Time Mon Tue Wed Thu Fri Sat Sun

10:00 AM – 12:30 PM (work hours)

12:30 - 1:30 PM (Lunch Break)

9:00 PM (Closing Hours)

Attendance

To ensure adequate staffing, positive employee morale, and to meet

expected productivity standards throughout the organization, employees will be

held accountable for adhering to their workplace schedule.

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Time record

All employees are required to log in and out personally their Daily Time

Records in a central book (notebook).

 All employees should come on time with their ID inside the premises

 Punctuality and coming on time is a must.

Absences

The employee should notify the manager 1 week before if he/she cannot

attend the assigned/ schedule time/ day of his/her work and it is required by

department notification procedure.

Tardiness

An employee is deemed to be tardy when he/she:

 Fails to report for work at the assigned/scheduled work time. In these

instances, managers may replace the tardy employee for the full shift.

 Leaves work prior to the end of assigned/scheduled work time without prior

supervisory approval.

 Takes an extended meal or break period without approval

 Arrives to work past his/her scheduled start time may be replaced for the

full shift at the discretion of his/her supervisor.

Over time

Minimum wage is based on a work week of 40 hours or 8 hours per day.

The daily 60 minute mandatory lunch break is not included in the 8 hour work day

and is not compensated.

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Overtime pay rates vary depending on when the overtime work takes place:

regular work day, holiday, rest day, or night (between the hours of 10pm to 6am).

Overtime Rates:

 Regular work day: plus 25% of the hourly pay rate.

 Rest day, regular/special holiday: plus 30% of the hourly rate on said day.

Holidays

A shortlist of regular holidays and special days follows:

New Year’s Day - January 1

Maundy Thursday - (Flexible)

Good Friday – (Flexible)

Araw ng Kagitingan – April 9

Labor Day – May 1

Independence Day – June 12

Ninoy Aquino Day – August 21

National Heroes’ Day – August 28

All Saints’ Day – November 1

Bonifacio Day – November 30

Christmas Day – December 25

Rizal Day – December 30

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PARENTAL LEAVES

The Labor Code of the Philippines covers three different types of parental

leaves: maternity leave, paternity leave and solo-parent leave.

Maternal Leave

Whether married or not, each pregnant employee is entitled to a maternity

leave benefit of 60 days for a normal delivery or miscarriage, or 78 days for a

caesarean delivery, for up to four pregnancies.

For the duration of the maternity leave, the employee receives a fraction of

his regular monthly salary from the company which is in turn reimbursed by the

SSS. It is common for companies to give the whole regular pay and shoulder what

is not covered by the SSS.

To benefit from a maternity leave, it is required for the employee to be

registered with the SSS and be employed at the time of the expected delivery.

Furthermore, the SSS must be notified by the employer and at least three monthly

contributions must have been made to the SSS for that employee within the past

year.

The maternity leave benefit being given instead of a regular wage, it cannot

be included in an employee’s 13th month wage.

Paternity Leave

The paternity leave is the cost of the employer and is not repaid by the SSS.

It is where all married male employees are entitled to leave for a 7 day due to

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delivery or miscarriage of his legitimate spouse with whom he must live for up to

four pregnancies.

Solo Parent Leave

The employee must have been working for at least a year to be entitled to

a solo parent leave. It allows parents who have been working at least a year to

leave 7 working days in a year, The Filipino labor code drew a special leave for

solo parent employees where it was described as the Solo Parents Welfare,

Republic Act. No. 8972.

Sick Leave

Sick leave is paid time off work if an employee, their spouse, partner,

dependent child, or other person who depends on them is sick or injured.

All employees are entitled to sick leave if:

 they have six months’ current continuous employment with the same employer,

or

 they have worked for the employer for six months for:

 an average of 10 hours per week, and

 At least one hour in every week or 40 hours in every month.

For each 12-month period after meeting the above, each employee gets at least

five days’ sick leave. If in any year the employee doesn’t meet the criteria, then

they don’t get any new sick leave entitlement, but can use their sick leave balance

which may have carried over. An employee may re-qualify for sick leave as soon

as they meet the criteria.

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Separation Pay

Following the labor code of the Philippines, articles 283 and 284 state that an

employee can claim separation pay if his contract is ended under authorized

causes.

According to article 283 Closure of establishment and reduction of personnel

- the separation pay shall be equivalent to one month pay or at least one-half month

pay for every year of service, whichever is higher. A fraction of at least six months

shall be considered one whole year.

According to the article 284 in the Disease as ground for termination -

Provided, That he is paid separation pay equivalent to at least one month salary

or to one-half month salary for every year of service, whichever is greater, a

fraction of at least six months being considered as one whole year.

Resignation

Resignation is a form of properly gives notice to the employer that the

employee willing to stop working. An employee can resign anytime when the

employee wants to stop his work immediately. The resignation process starts with

the employee put in their notice. The employer:

1. Review the employment agreement to confirm the notice period requirement

2. Accepts the resignation request

3. Calculates the employee’s final pay

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Retirement Pay

Employees may retire from age of 60 up to age of 65, which this retirement

becomes obligation, and it must provide the establishment for at least 5 years.

Retirement pay needs at least an equal amount of the half of their monthly

salary for each year of service and finish of at least 6 months will be considered as

one whole year.

A half month salary must include the following: a) 15 days of salary must base

on the latest salary pay, b) the pay is match of the five days of incentive leave, c)

1/12 of the 13th month pay. Therefore, one ½ month salary is equivalent to 22.5

days.

Minimum Retirement pay = Latest daily pay rate x 22.5 days per month x

number of years of service

LEGAL REQUIREMENTS

Pre – Operation Activities

As to the operation of the proposed business, the proponent must apply to

the Bureau of Internal Revenue and Department of Trade and Industry to sustain

the liability and credibility of the proposed business.

 Department of Trade and industry

 Barangay Clearance

 Bureau of Internal Revenue

 Department of Labor and Employment

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 Social Security System

 Philippine Health Insurance Corporation

 Manila Electric Company

 Maynilad Water Company

 Philippine Long Distance Telephone Company

Cost of Business Registration, Licensing and Permit

DTI Registration
Application Fee 300.00
Documentary Stamp 15.00
BIR Registration
Registration Fee 500.00
Certification 15.00
Documentary Stamp 15.00
Other Related Fees
Barangay Clearance 1000.00
Registration for New Projects 1000.00
Environmental Compliance Certificate 300.00
Utility Expenses
Manila Electric Company 4200.00
Maynilad Water Company 1700.00
Philippine Long Distance Telephone Company 1300.00
Licensing and Permit
Application for new Project 3600.00
Certification of Registration 120.00
Filing approval of application 120.00
Other Documents 120.00
TOTAL P14,305.00

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The project study of the market will begin at the 1st week of January and

soon until the end of month February. The whole month of March will be occupied

by transacting business registrations. April was for selecting and leasing for rent

space. May for the Acquisition of machines, equipment’s, supplies, furniture’s and

fixtures. The 1st week of June is for recruitment and the last week of it will be the

selection of the employees. The whole month of July will be the Promotion and

Preparation for Opening and 1st week of August will be the opening of the

Bakecohol shop.

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CHAPTER VI

FINANCIAL ASPECT

This chapter is discusses the financial aspects of the study, in order for a

business plan understand it needs money. In this chapter, accounting and financial

expertise is needed. This includes source of funds, balance sheet, income

statement, cost of goods sold and cost of sales.

FINANCIAL ASPECT OBJECTIVES

 To determine the capital requirement.

 To determine the total project cost.

 To present the projected income statement.

 To analyze cash flow.

 To present balance statement.

TOTAL PROJECT COST

Considering all the expenses that the business will occur, the total project

cost for our business will be ₱ 1,350,000.

INITIAL CAPITAL REQUIREMENT

Dimailig, Capital ₱350,000

Sarga, Capital ₱100,000

Gurion, Capital ₱150,00

Magayones, ₱140,000
Capital
Yamit, Capital ₱250,000

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Victoriano, Capital ₱130,000

Abanes, Capital ₱120,000

Martin, Capital ₱110,00

TOTAL ₱1,350,000

SOURCE OF FINANCING

SOURCE SELECTED OR PROPOSED BOTH LONG-TERM AND SHORT

TERM

We select to have an investment depending on the amount of money they

can invest in order to establish the said business.

ALTERNATIVES SOURCES

No alternative sources to be used only an investment from the bank will do

in case the initial capital from the partners is not enough.

ASSUMPTIONS

MAJOR FINANCIAL ASSUMPTION

1. The project is projected for 5 years.

2. Training and Seminar Expense will increase by ₱2,500 every year.

3. Facilities, Equipment and other fixed assets are depreciated on a straight

line basis.

4. All sales are subject to 3% discount.

5. Salaries expense is based on the salaries and wages of all employees.

6. Permits and Licenses are expected to increase 2% annually

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7. Increase (Decrease) in Utility is 1% annually.

8. Withdrawal is 30% of Net Income.

9. Promotional expense is subject to 4% increase annually

10. Interest Expense is fixed at 2% a year.

11. Utilities expense is subject to 1% increase every year.

12. Income tax will increase at 5% annually.

13. Additional purchase of ₱1,000 worth of supplies in the succeeding year.

14. Accounts Payable are estimated at 2% of annual sales

Second Semester S.Y. 2017-2018