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I. INTRODUCTION

The soybean or soya bean is a species of legume widely grown

for its edible bean has numerous uses. Soybeans occur in various sizes, and in many

hull or seed coat colors, including black, blue, yellow, and green. The average

worldwide yields for soybean crops in 2012, was 2.5 tonnes per hectare. Cultivation is

successful in climates with hot summer like the Philippines, with optimum growing

conditions in mean temperatures of 20 to 30 degrees centigrade. Soybean seed

contains about 19% oil. To extract soybean oil from seed, the soybeans are cracked,

adjusted for moisture content, rolled into flakes and solvent-extracted with commercial

hexane. Fat-free soybean meal is a significant and cheap source of protein for animal

feeds and many prepackaged meals; soy vegetable oil is another product of

processing the soybean crop.

Soybeans can be processed to produce a texture and appearance similar to

many other foods. For example, soybeans are the primary ingredient in many dairy

product substitutes (e.g., taho, soy milk, tofu, margarine, soy ice cream, soy yogurt,

soy cheese, and soy cream cheese) and meat substitutes (e.g. veggie burgers). They

are considered to be a source of complete protein. A complete protein is one that

contains significant amounts of all the essential amino acids that must be provided to

the human body. The nutritional value of soybean and each cooked staple depends on

the pre-processing and the method of cooking: boiling, frying, roasting, baking, etc.

Most soy protein is a relatively heat-stable storage protein. This heat stability enables
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soy food products requiring high temperature cooking such as taho, soy milk and tofu

to be made. (http://en.wikipedia.org//wiki/Soybeans)

In the Philippines, particularly in Cavite province, the bulk of the soybean crop is

grown for taho production. This study seeks to meet the high demand for soybeans

product like taho that can provide alternate and safe food for consumers particularly for

kids at affordable prices.

In recent years, a major food consumption trend is that more children are eating

more meals especially breakfast outside their homes. This was based on the surveys

conducted by some food establishments and was verified by mothers and their kids on

the interviews conducted to them by some researchers. As a result, the need for

nutritious, delicious and a very affordable food particularly during breakfast or as snack

food could no longer be achieved by most kids due to the fact that food establishments

particularly fast food chains are offering alternative foods like burgers, spaghetti and

pizzas.

Unlike these food products, taho from soybean offers a “complete” protein profile.

A complete protein is one that contains significant amounts of all the essential amino

acids that must be provided to the human body; nutritionally equivalent to animal

protein. (Source: Food and Drug Administration)

II. COMPANY SUMMARY

The proposed project will operate under the name Top

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Star Taho Factory. It will engage in the production of delicious, nutritious, clean, high

quality taho at affordable price. It will have a capital requirement of Php 300,000.00.

The entrepreneur/owner will rent a space area of 100 square meters, just enough to

occupy the production area, a small office and the dispatch area (Please See Exhibit I).

It will be located at Calpo St., San Antonio, Cavite City (just a few meters from Julian

Felipe Elementary School). On its first three years of operation, the business will only

concentrate on taho production, after which an expansion to other business like tokwa

factory will also be considered.

Business operations will be done from Monday to Sunday. Production of taho is

scheduled from 3:00am to 5:00am; preparation for distribution is 5:00am to 5:30am;

actual selling of taho by the peddlers will be from 5:30am to 12:00nn. Afternoon hours

will be used by the owner on the purchase of the needed materials for taho production.

III. TYPE OF BUSINESS ORGANIZATION

The proposed project will be organized as a sole proprietorship.

It is considered by the owner due to the following reasons:

 it requires a limited amount of capital

 it is easy to start

 it does not require so many documents

 there is ease in the operation of a business

The system of management will be that of the owner/manager.

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The manager will see to it that all initial requirements are done during the early stages

of the project. Daily supervision will help things easily assimilated and make sure that

all details of the business are followed. The manager will also perform the duties of a

purchaser. Purchasing will be done once a week and extra purchases will be made if

the need arises.

IV. PERSONNEL ASPECTS

Every organization and business entity’s success is influenced

by the quality of organizational structure it has. It must be transparent as to who will be

the superior and the subordinates; who gives command to whom and who receives

command from whom. Great emphasis must be given to their duties and

responsibilities.

Effective and efficient management can best be gauged with the cohesiveness,

coordination and good relationships of everyone in the organization in the achievement

of its goal.

The business will have the following for its personnel: a manager,

secretary/cashier, 3 production workers and 8 peddlers (2 will be assigned in San

Antonio, 2 in San Roque, 2 in Caridad, 1 in Sta. Cruz and 1 in Dalahican; the selling of

taho will only be done in Cavite City).

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A. QUALIFICATIONS OF THE PERSONNEL

Manager

 Preferably a graduate of a four-year course in Business Administration

 With work experience in managerial position particularly in a food business

 Hardworking and with good leadership qualities

 Must always be neat and clean

 Must have the knowledge about taho production

Secretary/Cashier

 A graduate of a four-year course in Business Administration; preferably

Financial Management major

 Must have at least 2 years work experience

 Computer literate; knowledgeable in files management

 Must be honest

Production Workers (3)

 Must have at least 2 years work experience in taho production

 Must be in good health and hardworking

 Must always be neat and clean

 Must always be conscious about the quality of finished product

Peddlers (8)

 Must be at least high school graduates

 Must be in good health or physically strong

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 Must always be neat and clean

 Preferably male; 20 to 40 years old

 Must be honest and hardworking

B. DEFINITION OF FUNCTIONS

Manager

 He shall oversee all aspects of business operations on a daily basis

 He will organize, plan and implement policies of the business and ensures

good quality products and services

 He will also serve as the purchaser of raw materials of the firm

 In-charge of assigning the peddlers on where to sell taho within Cavite City

 Identifies opportunities for improvement of the business

 He also serves as the quality controller of the production workers

 In-charge also of monitoring the performance of peddlers

Secretary/Cashier

 Responsible for the custodianship of daily funds remitted by peddlers

 Responsible also on the distribution of the “daily commission” of peddlers

 Prepares the payroll of other personnel

 Deposits the daily receipts of cash to the designated bank

 Performs other functions related to her work as assigned by the owner

Production Workers (3)

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 Responsible for the actual preparation and production of taho

 Ensure the quality desired for the finished product

 In-charge of the over-all cleanliness and sanitation of the firm’s premises,

especially in the production area

 Ensure that all garbage and wastes are properly disposed

 Ensure that all taho containers are properly cleaned

 They may also assist the manager in the purchase of raw materials for

production

Peddlers (8)

 In-charge of the actual selling of taho on the designated or assigned areas

within Cavite City which is from 5:30am to 12:00nn

COMPENSATION PLAN

1. Monthly Salary and Wages

Manager – P 12,000.00

Secretary/Cashier – P 9,000.00

* Production Workers – P 7,500.00 each ( A provision in the Labor Code of

the Philippines that below the minimum wage can be provided in some areas or

locality)

* Peddlers – they will be paid on a per container basis; which is 20% of

the total amount of taho per container

2. A 13th month pay equivalent to 1 month salary will be given to them

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3. A Christmas bonus of P 1,000.00 will be provided to all including the 8

peddlers

4. SSS, Pag-ibig and Philhealth will also be provided

5. A 5% increase in the monthly salary will also be given

V. MARKET ANALYSIS

Marketing is the sum of activities involved in directing the flow

of goods and services from producers to customers. Its principal function is to promote

and facilitate exchange. Through marketing, individuals and groups obtain what they

need and want by exchanging products and services with other parties. In addition,

exchange cannot occur unless the firm was able to communicate and deliver what it

can offer to customers.

Marketing a business particularly a product is about how it will be positioned to

satisfy the market’s needs in order to achieve a profit potential.

The market study seeks to determine the following:

1. The size, nature and growth of the total demand for the product;

2. The price of the product to be offered;

3. The supply situation and the nature of competition;

4. The different factors affecting the market; and

5. The appropriate marketing program for the product.

DEMAND ANALYSIS
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The target market of Top-Star Taho Factory will be the residents of Cavite City

(both kids and adults) who are considered consumers of taho.

In a business plan, demand has always been involved together with supply. The

number of customers who will be patronizing this product at a given time and at a given

place is called demand.

Available data to compute for the projected demand for taho product is the

survey coming from the National Statistics Office (NSO), Trece Martirez City, Cavite.

TABLE 1
Projected Population
(Cavite City w/ a 1.51 % Growth Rate)

YEAR Projected Population

2016 115,136
2017 116,875
2018 118,640
TOTAL 350,651

Table 1 shows the projected population of Cavite City from 2016 to 2018. The basis

of the projection is the 2014 population coming from the NSO data which is 111,737

x the growth rate of 1.51%. This will determine if there will be a market for taho

product in the place.

TABLE 2
Projected Demand

YEAR Projected % of Potential Projected

Population Demand
Customers
2016 115,136 25% 28,784
2017 116,875 27% 31,556
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2018 118,640 29% 34,406

In order to come up with the projected demand, a projection was made that in Year 1

there will be 25% who will be buying taho from peddlers of Top-Star in Cavite City. An

assumption was made that there will be a 2% increase on the succeeding years.

TABLE 2.1
Break-down of Projected Demand

YEAR Projected San Antonio San Roque Caridad Sta. Dalahican

Demand Consumers Consumers Consumers Cruz Consumers
(25%) (25%) (25%) Consumers (12.5%)
12.5%
2016 28,784 7,196 7,196 7,196 3,598 3,598
2017 31,556 7,889 7,889 7,889 3,945 3,945
2018 34,406 8,602 8,602 8,602 4,301 4,301

From the data presented in Table 2, the break-down of projected demand of the 6

places in Cavite City were presented with the corresponding percentage for potential

demand.

SUPPLY ANALYSIS

For the purpose of ascertaining the supply for taho product, the researcher was

able to find out that presently there is no taho factory in Cavite City. Those taho

peddlers selling in Cavite City come from Kawit and Imus.

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TABLE 3
Present Competitors

Name of Competitors Address

Mr. Edgardo Ortega Tabon, Kawit, Cavite
Mr. Ely Purificacion Medicion, Imus. Cavite

There are only 2 existing producers of Taho which are considered near and selling in

Cavite City. With this limited number, they could no longer support the demand for

Taho in Cavite City.

TABLE 4
Projected Supply

YEAR Estimated Estimated Total % of Supply Projected

Supply Supply Estimated Increase
from Kawit from Imus Supply
Supply
Producer Producer
(20 %) (10 %)
2016 5,757 2,878 8,635 2% 8,808
2017 6,311 3,156 9,467 2% 9,656
2018 6,881 3,441 10,322 2% 10,528
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Table 4 shows the projected supply of Kawit Taho Producer and Imus Taho Producer

who are selling in Cavite City; with the percentages given by these two producers (20%

and 10% respectively), the bigger percentages of distribution go to their own places.

The % of supply increase was also computed to get the projected supply. This was

based from the interviews conducted to the existing producers of taho in Kawit and

Imus.

DEMAND AND SUPPLY ANALYSIS

The demand-supply analysis insures that the proposed business is very feasible

in Cavite City and needs to fill the bigger gap and must answer the need of uncatered

customers.

TABLE 5
Projected Unfilled Demand

YEAR PROJECTED PROJECTED PROJECTED

DEMAND SUPPLY UNFILLED
DEMAND
2016 28,784 8,808 19,976
2017 31,556 9,656 21,900
2018 34,406 10,528 23,878

Table 5 presents the wide gap between the projected demand and projected supply. It

means that there are many potential customers who would want to consume taho in

Cavite City; since there is no producer of such product in the said place and peddlers
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coming from Kawit and Imus are too limited in number, the establishment of a taho

factory is projected to be feasible in Cavite City.

TABLE 6
Projected Market Share
(No. of Customers)

YEAR PROJECTED % OF MARKET PROJECTED

UNFILLED SHARE MARKET
DEMAND SHARE
2016 19,976 60% 11,986
2017 21,900 65% 14,235
2018 23,878 70% 16,715

Based on the demand gap between the projected demand and the projected supply,

the entrepreneur forecasted to have a 60% market share on its first year of operation

and it will increase by 5% annually.

TABLE 6.1
Projected Market Share
(No. of Customer Consumption Per Year

YEAR Market Share Average Projected

(No. of Consumption Market Share
Customers) Per Year
2016 11,986 48 (4 times per 575,328
month x 12)
2017 14,235 48 683,280
2018 16,715 48 802,320
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From the projected market share as presented in Table 6, interviews were conducted

from the existing customers of taho, according to them an average of 4 times per

month or once a week is the average consumption for such product of every customer.

VI. PRODUCTION PROCESS

It is the process by which goods will be produced. It is the

transformation of inputs into outputs. It also involves the design and implementation of

the system and processes for getting the work done. There are nine (9) steps involved

in the production of taho.

They are the following:

1. Sorting of soybeans

Proper sorting is necessary so that quality soybeans will really produce a good

output.

2. Soaking of soybeans

This will be done for about three hours before the production.

3. Grinding

Grind the soybeans thoroughly until it becomes soft and smooth.

4. Boiling
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Boil eight gallons of water for every pail (regular size) of ground soybeans.

5. Pouring

When water is already boiling, pour the ground soybeans.

6. Stirring

Continuous stirring of ground soybeans while boiling is important to avoid scorching.

7. Straining

After steps 6 and 7, strain the cooked taho using a nylon cloth.

8. Place the cooked taho in peddler’s container. One container is equivalent to 5

gallons of taho.

9. Prepare the syrup with sago. Put one teaspoonful of calcium sulphate in the

syrup to make it smell delicious.

VII. MACHINERIES AND EQUIPMENT

The business will allocate funds for the acquisition of well-

conditioned machineries and equipment including standard tools and supplies to

produce high-quality product. The following machineries, equipment and supplies

together with the cost and quantity are necessary in taho production (See Exhibit II).

Their quantities are sufficient to ensure maximum capacity of production. Costs are

based on their current prices.

TABLE 7
Machineries, Equipment and Supplies
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Machineries, Quantity Unit Cost Total Cost
Equipment and
Supplies
Grinding 1 Php 15,000.00 Php 15,000.00
Machine
Purifier 1 Php 12,000.00 Php 12,000.00
Kawa 4 Php 2,000.00 Php 8,000.00
Pail – small - 10 - Php 100.00 Php 1,000.00
- big - 10 - Php 200.00 Php 2,000.00
Containers for 8 Php 1,000.00 Php 8,000.00
cooked taho
Nylon Cloth 50 pcs. Php 50.00 Php 2,500.00
Peddlers 16 Php 1,500.00 Php24,000.00
Container
Weighing 1 Php 2,000.00 Php 2,000.00
Scale
TOTAL Php74,500.00

VIII. PRICE STUDY

Price has become one of the important and a critical marketing

variable. Competitors and customers may dictate the current price that a firm is offering

in relation to the product to be sold to target market.

Top Star Taho Factory through its peddlers, will set a price that is affordable to all

income levels most especially to low-income groups. The price of taho is so affordable

and with high quality in order to attract more customers.

Each container of taho will be priced at Php 1,200.00. The peddler will sell it at

Php 5.00 per small plastic glass, Php 10.00 per medium-size and Php 15.00 per big

size. The policy of the business is for the peddlers to remit the total amount per

container which is Php 1,200 and they will be given 20% as their daily income. If a
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peddler was able to sell a container of taho earlier than the set time by the business

(which is 12:00 noon, he can get another container of taho to have another 20%

commission).

IX. MARKETING PROGRAM

The aim of marketing is to identify customer’s needs and wants

and meet these needs so well that the product almost “sell itself”. Thus, market study is

the lifeblood of the entire project study.

It is essential for the proposed project to give emphasis on the efficiency and

effectiveness of the marketing program to be implemented. It must be created to sell

the product effectively to the target market and in attaining the project’s objective and

goal. It is expected that the proposed activities will establish good relationship with

customers and peddlers to achieve projected sales.

The following marketing activities that will be undertaken are as follows:

1. Displaying attractive tarpaulin poster to each place of distribution as a form of

advertising tool.

2. Free-uniform for peddlers (a T-shirt with the name of the business printed on

it) to inform buyers of taho about who and where this product came from.

3. Ask help from school administrators of public schools in Cavite City if Top-

Star can also sell its product during recess time and give donations during

Christmas.
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4. Maintaining the desired product quality (taste and cleanliness).

5. Promotional give-aways for regular customers such as calendars during

Christmas season.

X. FACTORS AFFECTING THE MARKET

Every business enterprise is susceptible to problems brought

about by several forces, most of which is beyond the control of the business owner. It

is therefore imperative for the management to take a proactive stance and anticipate

possible situations that may challenge the competitive standing of the enterprise and

from there, create the best possible actions to mitigate its unfavorable impact on the

company.

 Price of Raw Materials

In the Philippines, increasing prices of basic commodities and raw materials is a

common occurrence. Clearly, this has tremendous impact on the business and

almost always compels owners to adjust their price levels. In any event that price

increases, Top Star Taho Factory will try its best to continuously serve taho at a

price favorable to both the customers and peddlers. The firm will exercise

diligence in securing a long list of credible suppliers to increase their options

when selecting the most budget-friendly raw materials provider.

 Competition
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The curse of the competitive market theory dictates that any business venture

that clicks will most likely be duplicated by individuals looking for business

opportunities. As new entrants come in and excite customers, lower profit and a

reduced market share can be expected. The company will anticipate this by

continuously providing quality products at a reasonable price.

 Bad Weather

If there are typhoons or bad weather, there is a possibility that taho could not be

sold by the firm’s peddlers. Under this condition, the owner may request the

peddlers to double their selling of taho a day/s after since they will be benefited

on the commissions to be received.

XI. FINANCIAL ASPECT

According to the firm’s conservative estimates, Top Star Taho

Factory, is expected to maintain a healthy financial position over the next three years.

Financial Assumptions

1. 1% of the current year’s sales will be collected on the following year,

2. The average price of P10 was used in computing the taho revenue.

3. The equipment and machineries have a depreciable life of 3 to 5 years.

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4. The inventory on hand for both supplies and raw materials are maintained at 2%

of current year’s production requirement.

5. Some operating expenses increased by 10% as the level of production increase.

6. Prepaid rent is P20,000, one month advance and one month deposit.

Top-Star Taho Factory

Income Statement
for the 3-year ended December 31, 2018

Sales Revenue 2016 2017 2018

Taho Sales Revenue 5,753,280.00 6,832,800.00 8,023,200.00

Less: Expenses
Organization Cost 30,000.00 - -
Salaries 565,500.00 565,500.00 565,500.00
Benefits 59,788.00 60,988.00 60,988.00
Professional fees 72,000.00 72,000.00 72,000.00
Rent 120,000.00 132,000.00 145,200.00
Utilities 600,000.00 660,000.00 726,000.00
Factory Supplies & Parts 150,000.00 165,000.00 181,500.00
Advertising 60,000.00 66,000.00 72,600.00
Peddler's Commission 1,150,656.00 1,265,721.60 1,392,293.76
Repairs and Maintenance 100,000.00 110,000.00 121,000.00
Production Costs 2,301,312.00 2,733,120.00 3,209,280.00
Supplies 287,664.00 341,640.00 401,160.00
Depreciation 20,166.67 20,166.67 20,166.67
Total Expenses 5,517,086.67 6,192,136.27 6,967,688.43
Net Income 236,193.33 640,663.73 1,055,511.57

Top-Star Taho Factory

Statement of Changes in Equity
for the 3-year ended December 31, 2018

2016 2017 2018

Capital Beginning - 536,193.33 1,176,857.06
Investment of Owner 300,000.00
Withdrawal by owner
Add Net Income 236,193.33 640,663.73 1,055,511.57
Capital End 536,193.33 1,176,857.06 2,232,368.63
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Top-Star Taho Factory

Statement of Financial Position
for the 3-year ended December 31, 2018

2016 2017 2018

ASSETS
CURRENT ASSETS
Cash in Bank 352,547.68 992,867.20 2,045,927.84
Accounts Receivables 57,532.80 68,328.00 80,232.00
Prepaid Rent 20,000.00 20,000.00 20,000.00
Production Materials 46,026.24 54,662.40 64,185.60
Supplies Inventory 5,753.28 6,832.80 8,023.20
 
Total Current Assets 481,860.00 1,142,690.40 2,218,368.64

LONG TERM ASSETS

Equipment (Net) Php54,333.33 34,166.66 13,999.99

Total Non Current Assets 54,333.33 34,166.66 13,999.99

TOTAL ASSETS 536,193.33 1,176,857.06 2,232,368.63

OWNER'S EQUITY
Owner's Capital 536,193.33 1,176,857.06 2,232,368.63
 
TOTAL LIABILITIES & EQUITY 536,193.33 1,176,857.06 2,232,368.63

Schedule 1
Cash Outflow from Operating Activities

Organization Cost 30,000.00 - -

Salaries 565,500.00 565,500.00 565,500.00

Benefits 59,788.00 60,988.00 60,988.00

Professional fees 72,000.00 72,000.00 72,000.00

Rent 140,000.00 132,000.00 145,200.00

Utilities 600,000.0 660,000.0 726,000.0
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0 0 0

Factory Supplies & Parts 150,000.00 165,000.00 181,500.00

Advertising 60,000.00 66,000.00 72,600.00

Peddler's Commission 1,150,656.00 1,265,721.60 1,392,293.76

Repairs and Maintenance 100,000.00 110,000.00 121,000.00

2,347,338.2 2,741,756.1 3,218,803.2
Production Costs 4 6 0
293,417.2 342,719.5 402,350.4
Supplies 8 2 0

Cash Outflow from Operating Activities 5,568,699.52 6,181,685.28 6,958,235.36

Schedule 2
Machineries, Equipment and Supplies Total Cost Life Depreciation
Grinding Machine Php15,000.00 5 Php3,000.00
Purifier Php12,000.00 5 Php2,400.00
Kawa Php8,000.00 5 Php1,600.00
Pail – small Php1,000.00 3 Php333.33
- big Php2,000.00 3 Php666.67
Containers for cooked taho Php8,000.00 3 Php2,666.67
Nylon Cloth Php2,500.00 3 Php833.33
Peddlers Container Php24,000.00 3 Php8,000.00
Weighing Scale Php2,000.00 3 Php666.67
TOTAL Php74,500.00 Php20,166.67