Capstone Business

Simulation Report

Antonio G. Alforque Jr.

Angelo Mariano S. Fajardo
Marcus Thaddeus M. Santos
Arvin Isaac D. Vinluan
12-B

La Salle Green Hills

March 2020
 TABLE OF CONTENTS
Introduction ………………………………………………… 1
Vision – Mission ………………………………………………… 1
Summary of Business Plan ………………………………………………… 1
Environmental Analysis ………………………………………………… 6

Implementation Report ………………………………………………… 8

Human Resource Management ………………………………………………… 8
Operations ………………………………………………… 8
Marketing ………………………………………………… 9
Financial Resources ………………………………………………… 9
Innovation ………………………………………………… 11

Evaluation of the Simulation ………………………………………………… 12

Human Resource Management ………………………………………………… 12

Operations ………………………………………………… 12
Marketing ………………………………………………… 12
Financial Resources ………………………………………………… 14
Innovation Techniques ………………………………………………… 14
Corporate Social Responsibility ………………………………………………… 14

Challenges and Group Reflection ………………………………………………… 15

Challenges ………………………………………………… 15
Group Reflection ………………………………………………… 15

Recommendations ………………………………………………… 17

References ………………………………………………… 18
 INTRODUCTION

VISION – MISSION
Mission
To promote new and trending tastes to Filipinos using the favorite traditional siomai
snack. The objective of this concept is to offer consumers with affordable, convenient and
innovative products. Since the basis of the flavors that the business offers are from the flavors
of the chicken wings and knowing the prices of the chicken wings that the market is offering
today, it makes other people find alternative foods to consume. The business was able to find
alternative meat for the chicken wings and was able to think of siomai and knowing the size of
the siomai and how convenient it is to consume. The business was able to mix the ideas and
come up with the differently flavored siomai, that can be conveniently consumed.
Vision
To create a new variation for the already famous Filipino snack for customers to enjoy.
The business is aiming to add new innovative flavors that will be added to the variation of their
differently flavored siomai. Since by this time the product will already be known for its
convenience and taste. The business will aim to have a vegetarian section of their menu in
order to widen their target market and at the same time offer their consumers with healthy
options.

SUMMARY OF BUSINESS PLAN

Owner and His Goals
The owners, Angelo Fajardo, Antonio Alforque, Marcus Santos and Arvin Vinluan would
want to create a successful business from scratch and to leave their name in the market
industry. The owners will do their best to make decisions that will help the business to grow
CM.A.M.A’s The Greatest Siomai

further. They would also lead the business properly and ensure that the workplace is a
comfortable place for every employee to be in.
Making profit is also one of the main goals of the owners, but at the same time use that
profit for the benefits of the needy. The owners want to expand on The Greatest Siomai to
more areas. The owners would also want to start other businesses to coexist with The Greatest
Siomai. The owners want to be social entrepreneurs, where they still make a profit but also
make an effort to help communities in need.
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 Another goal the owners would want to happen is to become successful in the business
industry, but not just successful, the owners would want to help the unprivileged as much as
possible by helping them with little things such as a simple donation. The company decided to
help the PWDs in order for them to have work and privilege in life. Their specialty is very
special for the company and they are welcome to work for the company.
The owners would also be focusing on positivity in the workplace. With that, they will be
the one to initiate conversations with their fellow workers, will lead the activities that will help in
making the employees be close with one another. They will always have time to whenever their
fellow employees have problems that they want to talk about and will always be there
whenever they have problems.

The Service/Product
This product is a personalized siomai not like the other siomai houses or stores that
have fixed flavors and meal but with the new siomai shop, customers are free to choose which
meat would be inside of their siomai, what wrapper would be used, steamed or fried, which
flavor and which rice would it be paired with. For the meat, customers are free to choose
among the three: beef, pork, and chicken. Another feature for this siomai will be the different
types of flavors such as Classic Buffalo, Garlic Parmesan and Cheesy BBQ. It will then be served
with either rice with many choices of flavors like garlic rice, teriyaki rice, java rice, and plain
rice, or sides like fries or onion rings. The rice will be formed like a square and would be
compact enough so that customers could just use a wooden skewer or a fork whenever they
are eating the siomai meal.

Target Market and Reason

The target market of the product is the commuters and workers. The reason for them CM.A.M.A’s The Greatest Siomai
being the target market is that they are the ones who are most affected by the horrendous
Metro Manila traffic and also the lackluster public transportation of the country. These problems
cause more problems; like the meals, they have to skip just to avoid rush hour. The siomai
offers convenience to the workers and commuters to prevent them from skipping meals. The
Greatest Siomai offers on-the-go food that also hungers.

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Specific Methods and Business Tools
The specific marketing methods that the business will use will be mainly social media.
This will be the most effective way of marketing since it is cheap compared to other methods of
advertising and it is accessible to everyone. Another business tool that the company will use is
the place of the stall. The business will look to put up a stall in jeep terminals and MRT stations
because it will be most accessible by the target market.

ENVIRONMENTAL ANALYSIS
Politico-legal
The business must pay the necessary tax given by the government. The business will
follow all necessary tax laws like the TRAIN, SSS and Pag-ibig funds. The company will not
practice tax avoidance and tax evasion. The business owner will ensure that all taxes will be
paid fairly.
The permits that will be needed for the business must obtain all necessary permits to
ensure the opening of the business (e.g BIR permit, Business permit, etc.). Without the
necessary permits, the opening of the business will not happen at all.
Labor law
In accordance with the Labor Law, the business will ensure that the workers will be
compensated justly, they will not be exploited. The business owners will ensure employee
welfare. Employees will be treated just will not be abused. The owners will pay just wages to
the employees, not going below the minimum wage.
The business must apply for the necessary license to begin its operations based on the
Food safety act (RA 10611). The business must do this because it is stated in the law and it
could make the business illegal if they do not apply for the licenses. CM.A.M.A’s The Greatest Siomai
The business must adopt measures to ensure a safe supply of food that was based on
the Food, Drug and Cosmetic Act (RA 3720). The business will conduct quality control to ensure
food safety and quality. The business will not serve anything that can endanger the customers’
health. The supplies that the business will use will be fresh and healthy for consumption
Economic
The implementation of Train Law will increase the salaries of the workers will allow them
to purchase more products and services. This would result in more sales for the business.

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 The inflation and deflation of the Greatest Siomai will rely on products coming from the
market, the prices of goods will rely on inflation and deflation rates. This will be a factor of
business because this will determine the price that the raw materials will be sold at.
Social
Customers are mostly found in malls because of the variety of products and services
found there. Malls are accessible to everyone and most of the malls contain food services,
restaurants, stalls, and fast food chains. Ensuring the uniqueness of The Greatest Siomai from
other siomai businesses will yield the business more customers.
Foreigners visit the country regularly; they require businesses to appeal to them as well
to attract their attention to the product. One of the reasons why people from other countries go
here in the Philippines is to try the products that the Filipino people produce and since the
siomai meal has an appealing visual, smell and taste then it will be one of the options as a
must-taste product for the foreigners.
Filipinos will also be a target since they are the ones who visit various places. The
Filipino people will be interested in the innovation as it will present them with something new.
The Filipino people who eat siomai regularly will have a profound eagerness to try the
innovated siomai.
Technological
Social media sites such as Facebook and Twitter can be used to further spread
awareness of the product and is a good medium to advertise products. Social media is also the
most cost-efficient since it will cost less compared to fliers and billboards. Social media is also
accessible to anybody who has a connection to the internet, making it easy to reach customers.
The advancement of food equipment will help produce food products easier and more
efficiently. It would also reduce costs as well as waste due to its being more accurate and
precise. Reducing wastes and costs will yield the business more profitable than usual. CM.A.M.A’s The Greatest Siomai
Environmental
The packaging that will be used in packing the product is environmentally friendly.
Biodegradable diner trays and boxes would be the packaging of the product and as much as
possible, the business will be preventing the usage of plastic in order to have a healthy
environment.

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 IMPLEMENTATION REPORT

HUMAN RESOURCE MANAGEMENT

Angelo Fajardo as the CEO oversees all business activities occurring in the organization
and also decides the long-term decisions of the company. The decisions the CEO will be making
for the company is crucial because it may further grow the company or cause its downfall. So,
as the CEO of the company, it is his duty to know what is best for the company to further grow
and improve.
Marcus Santos as the Vice President for Production and sales monitors the production
and sales of the company and makes sure that the products are served with high quality.
Contacts the suppliers and customers who order original materials/ products made in our
company. He is also the one who is in charge of picking the supplier they interact with. He
chooses the best supplier in terms of quality and price.
Arvin Vinluan as the Vice President for Marketing is in-charge of the creation of
advertisements in the company such as videos, pictures and the one in charge of the company's
website. Since the company will be using Facebook as its platform for the advertisement that
will require them to pay 700 weekly in order for Facebook to spread the sponsored created
videos and pictures to the people that are using Facebook.
Antonio Alforque as the Manager views the reviews of the customers online. Double
checks the materials delivered from the suppliers and sometimes assists & monitor the staff.
May take-over whenever both staffs are on leave. He is also the one who interviews, evaluate
and hire the people that are applying. The bridge from the top-level management, the CEO and
the vice presidents, to the low-level management, the staffs.

OPERATIONS
CM.A.M.A’s The Greatest Siomai

The business first and foremost would purchase the necessary ingredients to create the
siomai and as well as the other ingredients needed to implement the flavors inside the siomai.
The appearance of the siomai on how it is wrapped by the molo wrapper would depend on its
flavor. Once the siomai is formed and wrapped, they will be frozen to prevent spoiling and will
be steamed and air-fried on the location itself to be prepared for selling.

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MARKETING
Product
The product that the business will be selling is a siomai meal consisting of flavored
siomai like the garlic parmesan, cheesy bbq, and cube rice. The business would also be selling
separate siomai and rice for customers who only want either of the two.
Price
The business will be targeting middle-class workers that commute every day. With that,
the price of the siomai meal will be reasonable both to the business and its consumers. The
business was planning to make the price per meal as 50 pesos but since they still have to
consider some expenses like rent, advertising, utilities, packaging and salaries for their workers.
They were able to finalize the cost of their product as 75 pesos per meal and each meal will be
consisting of five siomai, 5 cube rice and 8oz. iced tea. For solo orders, five siomai will cost 50
pesos each and 5 pieces of cube rice will cost 10 pesos per serving.
Promotion
The business aims to maximize the scope of their promotions by using both word-of-
mouth and social media to advertise and influence the customers to purchase the product. The
promotion will be posted on Facebook, which includes photos and information regarding the
product that the business would be selling. They are also planning to print flyers and posters to
further reach out to the possible customers who did not see the online advertisement.
Place
The location of the business is located inside the Benilde gym cafeteria of La Salle Green
Hills. It can be seen beside the entrance of the cafeteria. This location is chosen because there
are a lot of students, teachers and visitors alike who enter and leave the cafeteria. Basing on
that factor, the business expects to make a profit from them.

CM.A.M.A’s The Greatest Siomai

FINANCIAL RESOURCES
The production of the siomai will cost approximately 4 pesos per piece. The cube rice costs 2
pesos per 5 pieces. The utilities total cost is 2.66 pesos per piece, 1.21 pesos for the electricity and 1.45
pesos for the water, there will be no gas expenses because the equipment used will all be electronic.
Lastly, 1.33 pesos for the labor cost per piece of siomai made.

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Marketing Cost (all marketing materials)
The marketing cost of the product will start relatively low because it will mainly utilize
social media and word of mouth. 400 pesos will be utilized per month for advertisement for
social media.

Cost to sell (location, sales team)

There is no cost to sell since the stall will be provided by La Salle Green Hills.

Customer support (maintenance)

There will be no budgeting regarding customer support since no maintenance
happened.

INNOVATION
The main innovation of the product is the variety by adding flavor to the regular siomai.
The added variety of siomai will attract regular siomai eaters because it will activate their sense
of curiosity. The flavors of the siomai are Garlic Parmesan and Cheesy BBQ. The flavors are the
main focus of the product giving a new sense of a variety of the regular siomai. The product is
not only innovative because of the flavors but it is also innovative as a meal because the
differently flavored siomai will be partnered with cube rice that can be eaten with just the use
of a wooden skewer. The product not only offers innovative flavors but also convenience to the
consumers that will be consuming their product.

CM.A.M.A’s The Greatest Siomai

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 EVALUATION OF THE SIMULATION
HUMAN RESOURCE MANAGEMENT
The business performed well during the simulation; they were able to surpass their
breakeven for their production costs. The business had also sold out their entire inventory
within 2 hours prior to the simulation beginning. All the members were able to do their jobs
properly. The VP for production and sales was able to ensure that the products were in good
quality before being sold to the customers, the CEO was able to watch over and make decisions
on what they were supposed to do, the VP for marketing was able to promote the stall to the
customers and the manager was able to organize the orders of the customers. However, there
were some cases in which the manager was not able to get the orders of some customers since
a lot of them were swarming the stall, another is that the VP for marketing was not able to
utilize social media to further boost the promotion of the business. To improve this, the group
should have made the customers fall in line and wait for their turns to ensure that everybody
gets to purchase the product and they should have made a social media page to further boost
the business’ promotion.

OPERATIONS
The flavors that were sold during the business simulation were garlic parmesan and
cheesy bbq. Everything was prepared before the simulation started so there were no problems
regarding the ingredients not yet ready. But since the product still needs to be steamed and
then air fried, the business was only able to sell the steamed ones immediately rather than the
fried one since it takes time to air-fry the product. However, the delivering of the product to the
customers were swift. In short, the business was able to run properly but not really smoothly.
CM.A.M.A’s The Greatest Siomai

MARKETING
Product
The business sold their product through a meal for 74 pesos during the simulation itself
and as well as solo orders of the product which costs 50 pesos with the addition of add-ons,
however the original plan was supposed to be only the meal which costs around 50-60 pesos,
no solo orders or any add-ons, just the meal. This was done to further entice the customers to
purchase the product, since there were already additional add-ons in the meal, while also

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allowing the consumers who only wants the solo kind to purchase as well. However, there were
no tarpaulins used by the business to further promote the product, but they used word-of-
mouth to advertise the product which led to a lot of customers to visit the stall, purchase the
product and as well as spread to others about the business.

Price
The business experienced net profit during the end of the business simulation. 75 pieces
of both garlic parmesan and cheesy bbq flavors were sold. Those were the entire stock of the
business including the emergency stock during the business simulation. The business sold out
quickly due to the effectiveness of using word-of-mouth advertising they did to the customers,
and as well as the customers who told other possible customers about The Greatest Siomai.
The business however, needed to further consult their practitioner to further improve the
product to further provide customers with an even better product.

Promotion
The business should widen the range of their advertisements since they were focused
on using word-of-mouth advertising as their main tool for advertisement during the simulation
and serve free taste samples for their consumers to try the product. The business chose the
Adult Night Highschool as their community in which they would hire the deaf students after
their graduation as their staff. They chose to work with them because people with disabilities
are having a hard time having a job because of their capabilities and there are people that can
work better and more flexible than them.
CM.A.M.A’s The Greatest Siomai

Place
The location that was given to the business was inside the Benilde cafeteria. That was a
strategic location since there were a lot of students, teachers and parents alike who entered the
cafeteria, which increased the number of customers the business had served their products to.
The only problem of the location was that not all students entered the cafeteria, some were
seated outside of the cafeteria, while some were far from the stall’s location for them to see.

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Other than that, the business was able to sell their product to the point of exhausting the
stocks of their prepared number of products.

FINANCIAL STATEMENT
Production Cost
The production cost changed a little during the business simulation. This was due to the
fact that the business no longer used oil in frying the product, but instead used an air-fryer
which lowered the production cost of the product a little bit.
Marketing Cost (all marketing materials)
The marketing cost used by the business was only a little since they focused more on
word-of-mouth to advertise the product. There were some fliers printed, but it was only a few.

Cost to sell (location, sales team)

The cost to sell of the business did not change since the location was provided while the
sales team were the members themselves during the simulation.

Customer support (maintenance)

The business was willing to listen to the complaints of some customers during the
simulation. They also listened to some of the customers’ feedback regarding the product and he
way the business sold the products.

INNOVATION TECHNIQUES
Based on the feedbacks of the customers who actually gave feedbacks, both flavors that
the business sold during the simulation tasted good for them. However, some customers
suggested that we should increase the number of flavors to further enhance the product the
business is selling and as well as differentiate them from the other siomai businesses. CM.A.M.A’s The Greatest Siomai

CORPORATE SOCIAL RESPONSIBILITY

The business would open its doors to try and hire PWD, not just deaf people, as staff for
the business. They would be cooperating with organizations for the PWD in looking for staff to
hire. This would also decrease the number of unemployed people in the Philippines. The
recruitment process for the PWD will be the same as the people without disabilities. The
business will not hesitate to accept PWD that are willing and are able to work. Which is why the

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business chose to partner up with Adult Night Highschool as their community which teaches
PWD students academics.

CM.A.M.A’s The Greatest Siomai

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 CHALLENGES AND GROUP REFLECTION

CHALLENGES
The business faced a lot of challenges before reaching this stage, but these challenges
did not stop them from trusting their product. First, the business faced the doubts of their
fellow classmates and teachers. Second, the gaining year of the business, the business has to
wait after 1 year until they start gaining profit. Third, the data gathering process of the
business that involved free samples for the consumers that made them worry about the taste of
the sample since it was cooked the night before and might greatly affect the overall taste and
texture of the siomai.
There are numerous challenges that the group faced another one is that they have to go
through a lot of research about their product. Since siomai has only limited RRLs, it gave them
a hard time to find the right RRL and it cost a lot of time. Another challenge that the group
faced is that when they tried to propose The Greatest Siomai, the teachers thought that siomai
is not that innovative and it is not fit for a capstone project. The group experienced numerous
rejections from the teachers, and it gave the researchers a hard time to find a way to make the
product possible. This gave them frustration and they had a hard time to finalize their decisions.
The last problem was the making of the prototype of the product. There were a lot of trials and
errors that the group underwent to actually achieve the product that they wanted.

GROUP REFLECTION
After facing these challenges, the group was able to reflect on the things that they have
done in order to accomplish all requirements needed and solve the challenges that they are
facing. The business was able to overcome this challenge by brainstorming until they could
defend the integrity of their proposed product. First, they were able to reflect that when they CM.A.M.A’s The Greatest Siomai

trust fully their proposed product other people will follow but before defending their product,
they were able to come up with the right supporting factors in order to defend their product.
Second, patience was needed in order to reach the gaining year of the business. Third, before
the business made their respondents taste their free samples, they were doubting whether the
respondents will like their product or not but they were able to reflect at that moment that the
respondents actually liked the product and have positive responses regarding it.

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 The problems were present since the beginning. When thinking of the product, the
group proposed a lot of ideas and experienced a lot of rejection. The Greatest Siomai was
eventually accepted, however, there were still a lot of doubts from the teachers and students.
People thought it was a lackluster idea. The group overcame this by doing a lot of research, but
even this was difficult due to the lack of RRLs about siomai. However, the group dug deeper
and eventually found the necessary resources for the research. The product faced a lot of
doubts, so the group wanted to overcome the doubt. They tried to make a prototype. It took a
lot of mistakes like the flavor, texture etc., but eventually, the group managed to make the
product that they wanted. The group held a survey to get teachers to an opinion about the
siomai, and they ended up liking it.

CM.A.M.A’s The Greatest Siomai

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 RECOMMENDATIONS
Opportunities
For the opportunities of the business, they would ensure that the ingredients bought
and used in making the product would always be fresh. The location that the stall will be put up
will be in UV, jeep and possibly MRT terminals; this will allow the stalls to be accessible to
commuters and workers. Since the Greatest Siomai is a new brand, this will attract attention to
consumers with the help of the new innovation. The Greatest Siomai will have the opportunity
to make a name for itself as a new name in the market.

Threats
Since the business is still new to the market, certain threats still lurk around the
business. One such threat would be that customers might not like the taste or the siomai the
business would be selling. Some would still prefer buying and or are loyal to the already present
and known siomai businesses in the market and they should improve the operations and
logistics flow to ensure the quality and safety of the product that will be sold in the market

Recommendation
Based on the opportunities and threats of the business, the business owners will look to
capitalize on the existing opportunities and avoid existing threats. The business wants to make
a product that will give sufficient nutrients to commuters and at the same time apply an
innovation that is unique to the product. Earning profits from new innovated and unique
products will be hard since it is still new in the market and having loyal customers will also be a
tough challenge to the starting business.

CM.A.M.A’s The Greatest Siomai

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 REFERENCES
Bureau of Inter Revenue. (n.d.) Tax Information. Retrieved from
https://www.bir.gov.ph/index.php/tax-information.html

Tax Changes you Need to Know. (n.d.). Retrieved from

http://www.ntrc.gov.ph/images/Publications/train/tax-changes-you-need-to-know.pdf.

Foreign Citizens. (n.d.). Retrieved from https://psa.gov.ph/tags/foreign-citizens.

What is Social Media Marketing? (n.d.). Retrieved from https://buffer.com/social-media-

marketing.

Cameron, S. (2019, February 11). What Is Eco-Friendly Packaging? Retrieved from

https://bizfluent.com/facts-6743400-eco-friendly-packaging-.html.

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