1.

Business Overview
1.1 Description of the Business

Kreamchu is the name of the business and it comes from two different desserts
which are Ice cream and Churros. KreamChu is a food service of dessert or
snack which provides good quality of product. The product is a combination of ice
cream and churros inspired from Filipino flavors. Since it was a combination of
two desserts, the product is in a single container which it is more convenient to
the buyers of the product. It is located at 870 M.F. Jhocson, Sampaloc, Manila,
1008 Metro Manila.

1.2 Vision and Mission

Vision

KreamChu seeks to be known globally and to be remembered by all the people

around the world because of its Filipino Spirit. It envisions a great impact to the
economy and through it; we foresee a more progressive business by having a
strong image to the market, by creating more opportunities and having good
benefits for the people.

Mission
KreamChu aims to achieve these tasks:
• Satisfy the consumers by making the best quality of the product,
• Promote the business locally and overseas,
• Conduct more business opportunities to produce more jobs and
• Help the charities all across the Philippines.

1.3 Core Values

1.4 Form of ownership
KreamChu business is formed by a partnership consisting of five person who all
have the title of ownership to the KreamChu business. Each member gives
 contribution for the business and every plan of operating the business is always
discussed and executed by all the members of the partnership business.

1.5 Management and Personnel

Every owner has the responsibility to contribute funds for the capital of the
business. For production, the owners take charge for monitoring and supervising
the employees. The operating head on the other hand checks the efficiency of
creating the product. In financial, owner is responsible for monitoring the cash
flow of the business. Lastly the marketing head owner focuses on promoting the
business and trends of consumers.
Management and Personnel

List of personnel, titles, qualifications, responsibilities, skills and

. experiences, Job Qualification and Job Description of Employees

General Manger
Duties and Responsibilities
• Oversees daily operations of the business
• Ensures the development of programs and the business plan
• Develops strategies to improve overall quality and productivity
• Assists and manages all the managerial departments
• Maintains quality service by establishing and enforcing policies
• Evaluates the performance of each department
• Responds to employee concerns in timely manner
Qualifications
• Holds a bachelor degree in business administration
• At least 7 years of experience in any managerial field
• Leadership Skills & analytical Skills
• Decision-Making Skills
• Effective communication skills
Financial Manager
Duties and Responsibilities
• Collecting, interpreting and reviewing financial information
• Producing financial reports of financial statements
• Reviewing, monitoring and managing budgets
• Overseeing cash flows and financial instruments
Qualifications
• Holds a degree in accountancy, finance, economics or mathematics
• Experienced several years in the financial field
• Analytical skills
• Negotiation skills
• Excellent problem solving

Marketing Manager
Duties and Responsibilities
• Conducting and handling Marketing Campaign from its concept to
executing it.
• Organize business plans and giving strategic ways to implement.
• Collaborate with other managers from different departments like in order
to execute marketing programs.
• Responsible for resolving issues that may occur in Marketing programs to
execute it well.
• Come up with other strategies or practices that may aid for executing the
marketing programs.
Qualifications
• Has a degree in BSBA major in Marketing or any degree that are related
in the marketing field
• At least 5 years or more of experience in the field of marketing.
• Has experience of working in social media platforms.
• Has the set of skills to resolve problems efficiently
• Expert in using of HTML and MS Office.
• Versatility in managing and conducting of Marketing projects.
• Has editing and writing skills.

Operations Manager
Duties and responsibilities
• Improve the existing procedures for outgoing and incoming resources and
track inventory for the warehousing department.
• Reviewing the budgets and the cost in business
• Finding new technologies for producing the product
• Finding an alternative solution of efficiency
Qualifications
• Have a bachelor's degree in operations management or related to
operations management degree
• Leadership skills
• Excellent in communication
• Analytical skills

Production Manager
Duties and responsibilities
• Supervising the work of junior staff
• Organizing training sessions for staffs
• Ensuring the health and safety regulations for the customers and workers
 • Monitoring the service quality of the staff
Qualifications
• Have a degree of Business management, Business administration or Food
technology
• Have leadership skills
• Excellent communication skills
• Knows health and safety procedures

2. Industry Scan
2.1 Industry Profile
According to J&J snack Foods (2016), today, people innovates churros and
many different styles that appear in the market. From the version of original
churros (cinnamon and sugar), now there are more varieties like cajeta or dulce
de leche, with ice cream, and oreo churros. In oreo churros, the flavour of the
churros is Oreo cookies filled with the cream of the Oreo. As of this unique
flavour of these churros, people are enjoying it on the market. According to
Technomic, the variety of churros in the market increased by 10% in past two
years and up until the some operator of the business would like to add more
ethnic options to their menus. In line with the business, it is showed in the article
that people now are innovating churros. With the help of the article, we will able
to know the status of the churros itself in the market and we can think more new
style because of the existing style of churros.

2.2 Environmental Scanning

2.2.1 Macro-environment (External analysis)
A. STEEPLED ANALYSIS
3.5 STEEPLED Analysis (Socio-Cultural, Technological,
Economic, Environmental, Political, Legal,
Ethical and Demographic Factors)
Social
Chua (2017) stated top 10 unique food combinations. First in the
list is the Lemonade Coldbrew which can be found at the Habitual
Coffee. It is made of cold brew, lemon juice and honey. Second,
was the Salted Egg Caramel Parfait that is sold at Le Petit Souffle.
It is ice cream filled of vanilla beans, salted caramel fudge and
candied walnuts. Third, is the Ketchup Mayo Ice Cream plus Salt
and Pepper Fried that can be found at Freezer Burn, it is a
combination of ice cream made of ketchup and mayo, and salt and
pepper fries. Fourth, is the Chocolate Xiao Long Bao that is sold at
Din Tai Fung, it is a dimsum with chocolate filling inside. Fifth, is the
Purple Potato Latte that can be found at Subspace Coffee House. It
is a coffee made by purple potato or also known as “kamote”. Top
six, is the Sinigang with Watermelon that is sold at Manam. It is
made of beef with watermelon sauce. Next, is the Bleu Cheese Ice
Cream at Carousel Creamery, a side from Bleu cheese flavor, they
offer Beer & Chicharon, Honey Lavender and more. Top eight, was
the Chili choco bites offered at Slice, it is made of chocolate and
chili flavor, a side from that they also have 8 more flavors. Ninth in
the list, is the Soda Coffee in Caravan Black, the beverage is called
Miami Vice which is made of coffee and soda. And lastly, the
Candied Bacon Ice Cream sold at Merry Moo, it is an ice cream
with small bacon included.
This article is related in the business because first, costumers will
get curious about the features of the product because of its
uniqueness. Second, our product is also a combination and this
article helped us to decide unique flavors. And lastly, the business
is also ensuring that the flavors are health. KreamChu also wants to
encourage customers to try the flavors originally made in our
country.
It is stated by (MacFadden, 2011) from business inquirer that the
consumers are now setting standards towards purchasing products
specifically, foods and drinks in the market in terms in quality of the
product, packaging of the product and especially in health
according to the research report, Philippines Food and Drinks
Market: Emerging Opportunities. The Philippines is not the only
country that demands changes in terms of food and drinks, there
other countries like China, India and other Southeast Asian
countries which also wants to demand eco-friendly products. Also,
people from the Philippines are now engaging to new flavor trends
of food and drinks in the market which the products are the set of
standards that the consumer wants. That is why Companies are
now trying to come up a set of business ideas in order to sell their
products to the market that consumers demanded.
To further explain and relate this article to our business plan, this
can affect on how we will sell our product which the product that the
marketing team sells is food. In order for us to sell our products well
to the market, then the marketing team should create new business
ideas or innovating ideas that we can add or change to our product
which that consumers may want to in terms from their demands
towards food and drinks. Also, to contribute to the Economy of the
Philippines, it is not just our business should do game changing
ideas for our product but other businesses as well that can give
what the consumers wants especially businesses that sells foods
and drinks. Therefore, the economic growth of the Philippines can
increase and be consistent in a long run.
Technological
According to Mohammed (2012) the attitude of consumers toward
online advertising can affect their perception about online
advertisements. Also, it can change the purchasing habits, likings
and can have an impact in our exposure about online
advertisements. As stated by MacKenzie and Lutz (2010)
consumers attitude about an online advertising denotes his/her
reaction about a particular online advertisement. Consumers will
determine a positive or negative attitude towards online advertising
based on their experience (Schiffman and Kanuk, 2007). And lastly,
it is stated in the study that the attitude of the consumers is very
influential because it reflects their thoughts and feelings about
online advertising.
The study is related in our business because in promoting our
product we will used social media. A lot of people can see our
product and they can be persuaded to buy if we know how to
determine what the crowd mostly wants. In promoting online, we
can easily access the consumers because it is very convenient in
contacting people to be able for them to know about our product. It
can also show the creativity of our ideas because we will be making
posters that will be post online.
As reported by BobsGuide (2016), top leading companies and more
technological establishments are now enabling payments through
their own platforms. Facebook has extended its person-to-person
payments through Messenger in UK. Michael Kent from Azimo app
mentioned that tech companies desire to help online users by
offering them a more convenient way of dealing with payments
since technology has been a part of the users' daily living. Kent also
believes street bank branches disappearing will be one of the
greatest effect of their desired action. Marieke Flament is also now
developing her app where users can settle their payments through
text messages. Facebook defended that even if 92% of consumers
are reluctant to share financial information, the company have
added more steps for a bank level security in terms of financial
aspects in Messenger.
Relatively, KreamChu can use online platforms when connecting
with their customers. The business can sign up on one of the online
platforms so consumers that are distant can easily pay their orders
and be more convenient to any consumers.

Economical
It was profound by Jimenea (2018) from Philstar, that the
administrator of Sugar Regulatory Administration has a positive
vision for the new Train tax law when it comes to local sugar
because companies that sell soft drinks products are planning to
use local sugars like Coca-cola, pepsi, and RC are now stopping
from using high fructose corn syrup (HFCS) which the tax demand
is 12 pesos per bottle under Train tax. Now, they are now planning
to use local sugar which the tax demand is 6 pesos per liter
compare to (HFCS).
Furthermore, this will affect the business plan to budget the capital
that will use to purchase the supplies that it needs to run the
business including sugar which it as an ingredient for making
churros and by using the local sugar, it will be convenient for the
business to purchase more other supplies or materials for the
business.
As stated from Philstar (2017), the rate of unemployment in the
Philippines, got higher by 5.0 percent in October 2017 as reported
from the Philippine Statistic Authority. This shows also the lowered
ratings of labor force, underemployment rate, and employment rate
which labor was estimated 62.1 percent from last reading 63.6
percent, underemployment rate computed 15.9 percent from 18.0
percent of people registered and also employment rate that is now
computed 95.0 percent from 95.3 percent which a million was
removed.
This explains that there are many people who are unemployed that
are looking for jobs and the business will produce the jobs that one
of these people may get which the jobs that the business needs to
run.
The inflation rate of consumer prices got higher this year, 2018
according from the article (Cabuenas, 2018). It also stated that it is
the fastest increase of rate of consumer price in the last five years.
The inflation rate from 2017 which is 2.4% increased quickly to
5.2% in June 2018 up to the current rate of Consumer price which
is 5.7% in July 2018. Furthermore, mark-up prices got higher as
well in alcoholic beverages and tobacco to 21.9%, transport to
8.9%, housing, water, electricity and gas goes up as well to 8.2%.
Prices increases in non-alcoholic, health, clothes, footwear and
communication as well. Mark-up prices outside of NCR goes up to
5.5% from 5.1%. However, from recording of fast annual mark-up
not all organizations are recorded such as indices of recreation and
culture and education stated from PSA. This event wasn’t
mentioned. Also, other reports that economist, Emmanuel Leyco
that fast inflation will affect the food industry because it stated that it
was “fuel-based”.
Base from the article, it will affect the business because from the
statement from the economist Emmanuel Leyco, the food may
affect from the inflation rate which the needed ingredients or
supplies for our product, will increase its price therefore the
expected selling price for our product should cover the expenses in
order to earn profit.
Environmental
It is stated from the article of (Chua, 2018) that environmental
changes in the world cannot be controlled and we should adapt to
these situations and find a way to overcome it, countries around the
world are now starting to create new ways of energy for them to
use it. The Philippines should take into action as well about
environmental changes especially we are one of the countries that
affects environmental changes that always comes with destructive
situations specifically climate change. In order to overcome this
situation, the Philippines must join and build projects that should
change the way we handle the environment. Therefore, we can be
introduced to other opportunities to develop the Philippine economy
towards the environment and technology. Also, climate change
affects the health of the children where they can get Zika Virus from
climate change, Extreme weather events also damage food
supplies including crops. That is why the Philippines should take
into action for creating new innovative ways to get energy in order
to be industrialize and help the environmental problems in the
Philippines which it was proposed that the Philippines should take
green energy source since clean energy are now implemented to
China and Europe, the Philippines should join as well to promote
and implement clean energy to the country.
To the relation of the marketing team's business to this article is the
effect of environment for our supplies specifically because it said
that extreme weather causes damage to food supplies and know
this, will affect our process producing our products because there is
lack of supplies however there are opportunities that can come in
terms of technology where if the Philippines negotiate with other
countries about the changes of the environment, there technologies
that may help our business to sell. Therefore, when it comes to the
environment, it can be a negative or a positive effect to the
marketing team's business.
In the article of Chanco (2018) Piki stated Philippines experiences
issue on geothermal operations because it was damaged and
interrupted by the typhoon. It causes billions of interruptions in
business and damaged to the property. The article also stated that
people need to start doing a plan especially millennials concerning
the environment since millennials are the largest consumer
segment and increase purchasing power. For that we need to be
prepared for the limits of the planet as we now know it is being
reached. The climate change not only will affect the water cycle,
sea levels, health and etc. but it also affects the supplies of the food
which can lead to a major problem to enterprises leading to
relocation of population and conflict in the displacement.
In line with KreamChu, the business needs to be prepared in
dealing with climate change and to act before the disasters come.
The business needs to take precautions on how to carry out this
issue. As Piki laments, “Our massively warmed climate and
environment is driven by a capitalist system that keeps stimulating
excess consumption, rewards growth irrespective of the
consequences, and doesn’t price in the external costs of that
growth like damage to lives, environment, or the waste associated
with it.”, Kreamchu will also experience the consequences done by
the climate change that’s gives the action for the business to be
wiser with the decisions made so the business will run as smoothly
as possible despite the circumstances.
Political
According to DOF (2017), the TRAIN law or republic act no. 10963
is a law that helps to establish infrastructure and other programs
held by government. The provisions of TRAIN law are reduced
income tax rate of regional headquarters, regional operating
headquarters, offshore banking units, petroleum service
contractors. The second is zero rating of goods and services. The
third provision is the sales not exceeding 500,000 pesos will be
exempted in tax.
This is beneficial to the business because Kream Chu is exempted
in tax since this is a micro business and knowing that we are
exempted in tax, the business will focus on purchasing supplies for
the product to produce more. Also, the government may help the
business to establish more projects for the business so that the
presence of the business will be known to other places in the
Philippines.
Almerino (2016) mentions that there is a law for micro business that
help the owners of the business. This law is Barangay Micro
Business Enterprise Act of 2012 which helps the Micro businesses
to grow in our country. In this law, owners of micro businesses will
be exempted by paying income tax, minimum wage exemption and
easier access from loans. But before you qualify as a BMBE
(Barangay Micro Business Enterprise) and acquire all the benefits
from the law, you must register your micro business in your
municipality.

To further explain, the article is connected to the business because

it is stated in the article the effects of BMBE Act of 2012 for the
owners of micro businesses and it also shows that Philippine
government is supporting micro businesses which is also one of the
effects of having a micro business.
Legal
Department of Finance (DOF, 2017) stated that in support with the
Department of Health, Sugar-Sweetened Beverages provides
unhealthy calories. DOF imposes tax on SSB in order to limit the
people in buying unhealthy products, since it is available in every
convenience store. SSB excise tax is a health measuring platform
that will encourage everyone on living a healthy life style.
This will benefit the business and the consumers because the
business will use sugar that can provide a healthy product. In
providing a healthy product, it will attract more customers knowing
that the business is offering a healthy and satisfying dessert
product.
Micro, small and medium enterprises (MSME) according to
research conducted by several firms are the biggest beneficiaries of
the tax reform program because of the decrease of tax rate
according to Jiao (2018). Tax system was simplified for the ease of
the business owner. In paying taxes, Bureau of Internal Revenue
made the system of paying taxes easy and owners don’t need to
pay and hire accountants in order to file their income tax return.
This will benefit the small business in the Philippines including
KreamChu, because KreamChu as a small business, will be paying
smaller taxes and it will be more convenient in filing in BIR. The tax
reform system is a small-business-friendly-system because it was
reform to ease the process and make it a hassle -free process.

Ethical
Transparency and fairness must apply in every aspect of business
(Co, 2018). According to Co (2018), Viloria said that having a good
attitude gives a positive impact in business because suppliers,
dealers, and customers would prefer to the companies or small
businesses that apply ethical behaviour especially to the
product/service that they offer. Furthermore, businesses or
companies who practices ethical behaviour are the attractive one
from investors.
In line with the group’s business, Kream Chu must practices the
ethical behaviour because this factor gives an opportunity to the
business just like what Viloria said that suppliers and customers
prefer businesses who apply ethical behaviour in every aspect of
business. Furthermore, practicing ethical behaviour will help to
motivate the employees to do their job in a good manner that
customers will have a reason to patronize your product.
From the article of (Moran, 2012), business ethics are now in the
verge of disappearing because most employees in the business are
now being confident to break any rules in order to get results from
the customers. The cause of this is the perception of their leaders
about ethics which makes the employees pressured to do unethical
ways to handle customers. It is also stated by Michael Josephson
the president of the Josephson Institute which gives products and
services to increase ethical awareness and behavior of a business
that, ethics should be taught very well to the employees which you
build understanding and application. Such as when you teach
ethics make sure that the leaders’ expectations are very clear, be
specific of what you want your employees to do and what kind of
result that it needs to be shown, that is where understanding the
ethics will come from where employees will know what to do. Also,
the leader should enforce your policies when there is a mistake we
should not tolerated it but knowing that there will be consequences,
discipline will be shown, in order to not tolerate unethical ways
again. Lastly, be your own change agent, being the leader must
take action as well put your teachings at work, they look up to you
and if they saw and understand of what you want them to do, they
will know their task as ethical employees.
To further relate this article to our business, if we establish
employment to the marketing team's business, it is essential to
teach the right ways to run the business by the employees
especially dealing with customers, being the leader should teach
them specifically of what we want to establish for the business by
doing the ethical way of serving them such as the right way to
communicate to the customers, the ethical way to deal the
problems of the customers and being respectful to them always. If
the employees apply all of these ethical behaviors, the business
can get loyal customers and new customers.
Demographic
In Philstar’s computation according to Canlas (2014), parents could
spend 25,000 to 30,000 pesos in 18 weeks. For normal students,
the average amount of allowance that students receive per day is
150-250 pesos without including transportation allowance. As Mark
Canlas stated (2014) the average budget of students for their lunch
is 50 to 100 pesos. For the students who are studying in exclusive
schools like Ateneo and DLSU, their allowance is higher than the
typical students because it surrounded by expensive eating places.
Knowing the allowance of students is important because the target
customers are teenagers which are mostly students.
The article is related to the business as it is stated the allowance of
Filipino students which are mostly teenagers. With the help of this
article, we will able to know if our product’s price can afford by the
teenagers in the Philippines and we can easily to know if we will
adjust our product price.

From the report of Osorio (2012) The TRU Study results show that
the over 15 million Filipino teens and approximately 9 million young
adults in their early twenties, who represent 16 percent and 9
percent of the total population, respectively, continue to be an
extremely potent market. Filipino teens’ average weekly spending is
now estimated at P327, amounting to a total annual value of
P268.8 billion, roughly 18 percent higher from last year’s P278
average spending per week or P224 billion annually. On the other
hand, the young adult segment, which is just about half of the teen
population, is estimated to have a P322 billion annual spending
capacity. TRU made a face to face interview gathering 1,200
Filipinos in age of 12 to 24 across the nation, involving the urban
and rural areas. The research revealed that 15 million teens and
approximately 9 million young adults represents 16% and 9%,
respectively of the total population of Philippines, makes them the
most powerful market in the country. This study is allowed to share
in different companies to know the behavior, preferences and
purchasing habit of teens which can help them in building their
company and how to effectively talk and connect with their desired
audience.
 Therefore, the marketing team concludes that KreamChu may be
able reach its goal by being aware of what are the demands of
consumers in the market, knowing the target consumers in which it
affects the business greatly and taking advantage of current
technologies that can promote the business in order to be well
known. KreamChu also gives impacts to its surroundings such as
giving opportunities to people and seeking collaborations to other
businesses however, the surroundings also give impact to the
business in which the business should adapt and be managed well
from natural causes. Laws that also give KreamChu to be assured
of operations, supplies and promotion are under to its limit. Lastly,
the KreamChu business should also prioritize the proper or ethical
way of selling the product to the market in order to be successful.
B. Porter’s Analysis
Competitive Rivalry (High force)
Kream Chu will face tough competition in the market because
dessert products in the market are already a hit. There are lots of
brands that offers the same kind of product in the market.
According to FranchiseManila, a website which offers different
franchises in manila, in that website many dessert businesses
offers a franchise. In this force, it is a high force because of the
high rate competition out there in the market. Kream Chu must take
innovative steps to make its name a hit.

Bargaining Power of Costumers/Buyers (High Force)

According to Ocampo, Churros are a big hit in terms of being a
merienda or desserts in the Philippines. It can be enjoyed anytime
of the day. Its prices vary upon Php 80.00 up to Php. 200.00, which
make it cheap and affordable. Costumers will easily find churro
products that are fit for their budget. The influence that will be
brought by the target market are highly affecting the way of pricing
the product because of certain kind of factor like their daily
allowance and such. Kream Chu must address this force because
costumer is the heart of the market and in order to make the
business grow it must attract and sustain a lot of costumers.
Bargaining Power of Costumers is surely a high force for Kream
Chu.

Bargaining Power of Suppliers (Moderate Force)

According to Guevara, an author of wheninmanila.com, stated that
there are a lot of store for baking supplies but there is one store
that offers the best baking supplies; Top Chefs. Even though
supermarkets and wet markets offer the same kind of supplies, it is
still different. For Kream Chu, Power of suppliers is a moderate
force because of many different suppliers that offers the same
quality of supplies but vary in prices which makes it easier for
Kream chu to find an avid supplier.

Threat of Substitutes (High Force)

Substitutes for Kream Chu are many and it’s a significant concern
for Kream Chu because the high rate of availability of the same
kind of product in the market. According to Ocampo, there are
many churro businesses already and the market but with different
ranges of prices. It is High Force for Kream Chu because of
different products that are available in the market which is similar to
Kream Chu’s product.

Threat of New Entrants (High Force)

New Entrants can affect Kream Chu because it only needed a small
amount of investment in order to run a dessert business. Also, the
effect of being new to the market is appealing to the consumers
because of the newness of factor of it. According to
 franchisemanila, dessert businesses only needs a small amount of
money in order to operate which makes it available for other
entrepreneur who would like to start their own business.

Threat of new
Entry
(High Force)
-Low rate of initial
investment
-newness of the
product

Threat of
Threat of Substitute
Bargaining Power of
Competitive rivalry (High Force)
Suppliers
(High Force) -Consumer
(Moderate Force)
-numerous number switching costs
-moderate amount raw
of competitors are low
suppliers in the market
-popularity of the -many available
-different supplies varies
product substitute product
on its quality
-insignificant loyalty -indistinct
-availability of the supplies
of the costumer costumer loyalty

Bargaining Power of
Buyers/Costumers
(High Force)
-High influencial
factors to adjustment
of prices
-uniqueness of quality
against competitors

2.2.2 Micro-environmental (Internal Analysis)

A. SWOT Analysis
B. Competitive Analysis