Batangas City

BUSINESS PLAN AND FINANCIAL STUDY FOR THE ESTABLISHMENT OF

BARAKO MILKTEA POPS

A Project
Presented to the Faculty of the
College of Engineering, Architecture and Fine Arts
Batangas State University
Gov. Pablo Borbon Main Campus II
Alangilan, Batangas City

A Partial Fulfilment of the Requirements in

ENGG 406 Engineering Management

Proponents:
Barcenas, Aaron John M.
Cena, Phoebe Kates B.
Dolor, Marica G.
Hernandez, Ranen A.
Perea, John Rafael L.
Razon, Raymond C.
Rubia, Jeminah Ruth G.
Sastado, John Franklin P.
Valencia, Ma. Paula F.

BSEE-3309

ENGR. MONIQUE M. ADATO

Instructor

August 2021

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ACKNOWLEDGEMENT

The researchers would like to thank the following individual for his or her invaluable assistance

and contributions to the proposal's success.

To their advisor, Engineer Monique M. Adato, for her guidance and perseverance. Without her,

this proposal would not have been feasible.

To the researcher's family, for their unreserved love, unwavering support, encouragement, and

comprehension.

To the researcher's peers and friends who were always there to inspire and encourage them.

Above all, to the Almighty God for providing them with the intelligence, strength, and health

to work on this proposal. To God be all the glory!

Aaron John

Phoebe Kates

Marica

Ranen

John Rafael

Raymond

Jeminah Ruth

John Franklin

Ma. Paula

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TABLE OF CONTENTS

TITLE PAGE i

ACKNOWLEDGEMENT ii

TABLE OF CONTENTS iii

LIST OF FIGURES vi

LIST OF TABLES vii

CHAPTER

I. BACKGROUND OF THE BUSINESS AND INDUSTRY

Brief History of the Business 8

Nature of Business 8

Corporate Goal 9

Mission 9

Vision 9

Positioning Statement 9

Executive Summary 9

II. MARKET ANALYSIS

Description of Venture 11

Product 11

Size of Business 12

Promotional Strategy 12

Names of Suppliers of Raw Materials 13

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TABLE OF CONTENTS

III. TECHNICAL SPECIFICATION

Logo and Description 14

Office Equipment and Personnel 14

Waste Management 16

Statement of Financing Needed 16

Price List from Suppliers 16

Physical Plan 17

Machinery and Equipment 19

Production Plan 19

Manufacturing Process 23

IV. COMPETITORS AND STRATEGIC ANALYSIS

SWOT 26

V. STRATEGIC ACTION PLAN

Distribution 28

Promotion 28

Controls 29

New Technologies 29

Contingency Plan 30

Awareness Training 31

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TABLE OF CONTENTS

VI. ORGANIZATIONAL AND MANAGERIAL SPECIFICATION

Forms of Business Organization 32

Organization Structure 32

Roles and Responsibilities 33

The Entrepreneurs 34

The Suppliers 34

Terms and Conditions 34

Legal Requirement 37

Basic Permits 38

Policies 41

Policies Concerning Employees 41

Policies Towards the Customers 42

VII. FINANCIAL PLANS

Financial Plans 44

Pricing 43

VIII. SOCIO-ECONOMIC CONTRIBUTION

Contribution to the Economy 46

Employment Generation 47

Supplier 47

Consumers 48

Environment 48 v|P ag e
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LIST OF FIGURES

Figure No. Title Page

1 Logo 14

2 Floor Plan 18

3 Location Plan 18

4 PPE 19

5 Coffee Grinder 20

6 Freezer 20

7 Mixing Bowl 21

8 Molder 21

9 Sealing Machine 22

10 Table 22

11 Peral Cooker 23

12 Organization Structure 32

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LIST OF TABLES

Table No. Title Page

1 InJoy Philippines 16

2 Pris’s MiniMart 17

3 Pricing 43

4 Project Income Statement 44

5 Projected Balance Sheet 45

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CHAPTER I

BACKGROUND OF THE BUSINESS AND INDUSTRY

Brief History of the Business

The word "Barako" is derived from their product's primary ingredient, "Kapeng barak o," which

also means strong. The analysts and entrepreneurs chose to call their company "Ba rako Milktea Pops."

Tom's Place, D. Silang, Poblacion, Batangas City will be the business address.

Nature of Business

Over the past few years, milk tea, also known as bubble tea, has gained popularity among

Filipino customers. Numerous milk tea booths and shops have sprung up as a result of its popularity,

and numerous restaurant chains now offer it on their menus. (Business News, PH)

Since milk tea gained popularity, we created a new kind called Boba tea ice pops that is ideal

for our sweltering heat. Frozen foods like boba ice cream/pops are typically consumed as a dessert or

a snack. It is an ice cream bar that is covered in boba chunks. Since we are creative and have faith in

our ethnicity, we used Kapeng Barako as one of the main ingredients of our Milk tea pops. Ice cream

is typically made from dairy products, like milk and cream, and can be flavored with other ingredients,

like green tea, thai tea, etc. However, since we are innovative and have faith in our ethnicity, we used

Kapeng Barako. We can support the declining Kapeng Barako industry in our province via this

platform.

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Corporate Goal

We are committed to producing inexpensive ice cream pops with excellent flavor.

Mission

Our goal is to provide high-quality Ice Pops with an affordable cost.

Vision

Inspiring people to have healthier lifestyles without depriving them with sweet treats.

Positioning Statement

“A sweet treat for a sweet smile”

Executive Summary

The Barako Milktea Pops was created to satisfy customers' needs through a unique tea popsicle

experience which promotes refreshing milktea that meets costumer’s expectation. To ensure that the

customer's needs are met, variety of flavors are being offered along with healthier options like frozen

yogurt, especially ones marked as low-fat. The new enterprise Barako Milktea Pops will be situated in

Tom's Place, D. Silang, Poblacion, Batangas City (2nd floor), targeting teenagers who are large

consumers of milktea.

No matter their circumstances, teenagers continuously choose luxury ice cream products, thus

our main objective is to concentrate on making them happy. Additionally, since adults frequently stick

with their favorite iced tea, if a child enjoys this frozen treat, he or she will probably continue to do so

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as an adult. Through our Facebook page, Barako Milktea Pops, customers will have the chance to

experience our milktea pops.

In order to please regular customers, they partnered and took a risk to start this business. The

price of the milktea pops will range from 13 and 18 pesos. If realized, the annual earning will be Php

864,000.

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CHAPTER II

MARKET ANALYSIS

Description of Venture of the Barako Milktea Pops

A. Product

According to Weiner (2009), individuals are eager to attempt new things, fresh taste and flavor

experimentation. They adore everything new, interesting, and advantageous to them. Since milk tea

was on-trend and fresh to the market, it is apparent that there is a continual need for the sector. Since

Taiwanese milk tea reached the mainland market, milk tea has progressively acquired popularity

among the general population. This kind of milk tea is not the same in the past, milk tea was prepared

by brewing milk tea powder, which lacked flavor and distinguishing qualities; however, as the

economy has developed, people now want milk tea with more flavor and character.

Furthermore, pay increased attention to the quality and features needs for milk tea. Due to the

widespread popularity of milk tea, many well-known online milk tea companies attract a large

number of customers and have a position in people's everyday lives. Batangueos were given the slur

"Barako." Although the name has been connected with a certain kind of coffee, it has continued to be

used by individuals of other cultures. This study examined the representations, origin, and properties

of the word "Barako" as seen by 111 psychology students around Batangas City, chosen using the

convenience sample approach (Evangelista, 2012). Due to the popularity of Milk Tea and Kapeng

Barako, researchers created Barako Milktea Pops that Batanguenos would like. This ice pop is

elevated due to the usage of trendy beverages: milktea and our renowned Barako coffee. It may have

whatever taste you like. A barako coffee and milktea ice pop will be created. This ice pop has a

modest quantity of sugar. Due to the little quantity of sugar, this ice pop is appropriate for both

children and adults.

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Furthermore, pay increased attention to the quality and features needs for milk tea. Due to the

widespread popularity of milk tea, many well-known online milk tea companies attract a large number

of customers and have a position in people's everyday lives. Batangueos were given the slur "Barako."

Although the name has been connected with a certain kind of coffee, it has continued to be used by

individuals of other cultures. This study examined the representations, origin, and properties of the

word "Barako" as seen by 111 psychology students around Batangas City, chosen using the

convenience sample approach (Evangelista, 2012). Due to the popularity of Milk Tea and Kapeng

Barako, researchers created Barako Milktea Pops that Batanguenos would like. This ice pop is elevated

due to the usage of trendy beverages: milktea and our renowned Barako coffee. It may have whatever

taste you like. A barako coffee and milktea ice pop will be created. This ice pop has a modest quantity

of sugar. Due to the little quantity of sugar, this ice pop is appropriate for both children and adults.

B. Size of Business

Microbusiness. Barako milktea pops. This store will employ individuals. a mean of at least

three employees (cashier, waiter, etc.) The five stockholders employ an average of at least three persons

or staff (cashier, waitress, etc.) their many departments would be managed. The expected cost of

constructing a store. equates to the needed capital for a cottage, which is roughly 400,000PHP A

company that must have a minimum of 50,000PHP and a maximum of 1,000,000PHP in capital.

Capital of 500,000PHP according with Magna Carta for Small Enterprise (R.A. 6077).

Promotional Strategy

The purpose of promotion is to increase brand awareness, generate interest, generate sales, and

foster brand loyalty. The most important function of a promotion is to distinguish a business from its

competitors.

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Currently, social media has a significant impact on the community, making it an effective

method for advertising businesses and services. Using social media platforms such as Facebook,

Twitter, and Instagram, we can reach a broader audience with our products. Additionally, by

collaborating with Food Panda and other food delivery riders, it is accessible to a large number of

customers. Utilizing referrals from users increases the business's popularity. By obtaining their

opinions on our product, we can encourage more customers to purchase it.

Names of Suppliers of Raw Materials

A supplier is an individual or company that offers an item or service to a customer. a distinct

entity. Throughout the whole product lifetime, suppliers play a crucial role. Companies must work

closely with their suppliers to get the most out of their goods. This includes procuring raw materials,

assisting with production ramp-up, and identifying better possibilities for raw materials when the

market becomes saturated. For the manufacture of Barako Milktea Pops, InJoy Philippines was deemed

to be the primary raw material supplier. InJoy Philippines is the preferred brand of the Filipino negosyo

entrepreneur who is intelligent, successful, and frugal. InJoy's goods are scrumptious, simple to

prepare, and affordably priced, making them the ideal choice for people in search of ingredients for

their own food company. Kapeng Barako will be supplied by inhabitants of Batangas City who still

manufacture kapeng barako; its primary source will be the local market.

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CHAPTER III

TECHNICAL SPECIFICATION

Logo and its Description

FIGURE 1

The Entrepreneurs chose this logo as it symbolizes their main product – Ice Pops. The

word Barako, on the other hand, means strong in tagalog.

Office Equipment and Personnel

In the process of establishing a company, office furnishings and equipment are very

important to the requirements of the staff or staffs It is essential that staff be provided with high-

quality equipment in order to achieve optimum levels of both comfort and productivity. The

following types of office equipment are necessary for the operation of the company:

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 Chairs, Tables and Cabinets – one of the basic necessities in the office. Regardless of the size

of the workplace, there are some pieces of furniture that are required to have. It is essential that

the office furniture adhere to the designated color scheme. The furniture ranges from more

conventional pieces made of wood to more up-to-date and contemporary pieces made of metal

and glass. They are portable, simple to handle, and take up a very little amount of space.

 Network & Internet Connectivity - Internet connectivity is absolutely essential for any

modern business. An internal network is also essential, allowing for communication between

machines, shared storage, printer/scanner access and more. You’ll need a few basic pieces of

office equipment to connect to the internet and get your network up and running.

 Label Maker - like a laminating machine, may appear like an unnecessary piece of office

equipment, but if this is the case, it may just be that one does not grasp the extent of what can

be accomplished with such a helpful tool.

 Uniform - A collection of principles that makes it simple for workers to know what is proper

to wear to work is what is referred to as a "uniform policy." In addition, it may assist businesses

in ensuring that their staff members present themselves in a positive manner during meetings

and other contacts with clients and consumers.

 Computers / Desktop - A computer is an absolute need in any workplace. In point of fact,

every worker in your business will probably need access to a computer. What you want to

perform with the computer is the most important factor to consider when deciding what kind

of computer would best meet your requirements. If you will just be using the computer at your

business, a desktop computer may be the most suitable option. You will benefit from having a

portable device such as a laptop if your work sometimes requires you to travel to far-flung

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Waste Management

Proper waste management is necessary for a healthy and sustainable environment. To maintain

the cleanliness of the area and for the safety of the people, trash is routinely discarded. Regularly, waste

collectors collect it. All types of liquid and solid waste are potential waste products. To maintain the

cleanliness of the environment, the store will ensure that proper waste management procedures are in

place.

Statement of Financing Needed

The fund source of the business plan is covered in the Statement of Financing Needed. Nine

partners in the Barako Milktea Pops company will each invest P50,000, for a t otal of P450,000. The

SSS Loan, which will be repaid monthly, and individual savings will m ake up the majority of the

initial investment.

Price List from Suppliers

TABLE 1: inJoy Philippines

Material/Ingredient Amount Price (PHP)

Tapioca Boba Pearls 1kg 90.00
Caramel Sugar Milk Tea 500g 135.00
Powder
Chocolate Milk Tea Powder 500g 121.00
Caramelized Sugar Syrup 750g 80.00

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TABLE 2: Pris’s MiniMart

Material/Ingredient Amount Price (PHP)

Kapeng Barako 250g 245.00
Jello 10 12.00
Condensed Milk 4 can (300ml) 240.00
All Purpose Cream 4 packs (250ml) 248.00
Brown Sugar 500g 40.00
Plastic Packaging 36.00
Stickers and Printout 80.00

Physical Plan

Tom's Place, Second Floor, D. Silang, Poblacion, Batangas City, will serve as the location site of the

business. Since it is easily available to anybody craving ice pops, the group decided to post it on this

website. The Milktea Pops shop would have its own kitchen with equipment such as a freezer, stove,

sink, etc., a storage area where all the shop's needs will be kept, a serving area where all the products

offered are displayed, a long table with chairs for the customers, and a cashier area where all the money

entering and leaving the business would be kept.

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Figure 2. Barako Milktea Pops Floor Plan

Figure 3. Barako Milktea Pops Location Plan

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Machinery and Equipment

The production process of the product requires assembly of equipments to make the production

efficient make the work done quickly. This proposal will bestow the different needed in the operation

of the making process of the milk tea product.

Aprons / hair nets / Gloves - employed to ensure the hygiene of employees.

Figure 4

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Coffee Grinder - Used to produce a fine powder of kapeng barako.

Figure 5

Freezer - an equipment use to store frozen things in quantity, such as ice pops.

Figure 6

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Mixing bowl - used for mixing components.

Figure 7

Popsicle Producer/Molder – the equipment that will mold the milk tea mixture into popsicles.

Figure 8

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Sealing Machine – used to seal the plastic packaging of the popsicles

Figure 9

Tables - a horizontal work surface where you can prepare ingredients needed.

Figure 10
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Pearl Cooker – the equipment that will be use in cooking the tapioca pearls

Figure 11

Production Plan of the Proposed Barako Milktea Pops

Manufacturing Process

In the process of manufacturing, the different raw materials will undergo a long process of

experimenting, testing and tasting to create into a new product. The procedures are well planned

Before, procedures are meticulously established to assure quality and safety. This has been done to

protect the people around the business inside the workspace and also to secure that the product is safe

before handling it to the prospect customers. Ensuring that the product will be safe is one of the

business’s main priority.

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The making process of the Barako Milktea Pops started at accumulating the needed

machineries, equipments, and ingredients through finding out first the possible supplier of all the things

needed aforementioned. For the product itself, the ingredients needed are tapioca pearls, jello, brown

sugar, black tea bags, heavy cream and lastly the native coffee that is popular here in the province of

Batangas, also known as kapeng barako which is the main ingredient of this proposal. On the other

hand, regarding to the packaging, purchasing of plastic wraps, disposable plastic wares and boxes are

also needed.

The process of creating the milktea will be discuss below:

For the Coffe jelly flavor of the milktea the ingredients that will be needed are:

 White unflavored jelly powder

 Water

 Brown sugar

 Condensed milk

 All purpose cream

 Kapeng Barako

The steps in making the product are as follows:

1. Combine water, kapeng barako, sugar, and gulaman. Simmer gently until dissolved.

2. Pour the mixture into the container and let it cool for about half an hour.

3. When the Jelly mixture is cold, cut it into cubes and set it aside.

4. Combined the mixed all purpose cream and condensed milk and coffee jelly

5. Combined the mixed all purpose cream and condensed milk and coffee jelly
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Moreover, there is also another flavor of the product. The milktea flavor, this flavor needs the following

ingredients:

For Tapioca Pearls: •

 Black tapioca pearls

 Brown sugar For Milktea Based:

 Milktea Powder

 All purpose cream

 Condensed milk

The steps in making the product are as follows:

1. Bring the cups of water to boil in a small saucepan with a medium-high heat and add the tapioca

pearls

2. Reduce the heat to medium low and continue to rapidly simmer until the pearls are swelled and

soft all the way through, about 20 minutes.

3. Remove the pan from the heat, cover, and let sit for 15 minutes.

4. Bring another cups of water to boil in a small saucepan. Add brown sugar until it dissolved

5. Pour the sugar syrup over the reserved tapioca pearls and stir to combine.

6. Mix the all purpose cream and condensed with milk tea powder.

7. Pour the tapioca pearls first into ice pop mold and pour the milktea base after. Seal and freeze

overnight

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CHAPTER IV

COMPETITORS AND STRATEGIC ANALYSIS

Assessment of Risk of the Barako Milktea Pops

SWOT

A SWOT analysis is a list of your company's advantages, disadvantages, opportunities, and

threats. A SWOT analysis' primary goal is to assist organizations in developing a complete

understanding of all the factors involved in making a business decision (Schooley,2019). Barako

Milktea Pops Use SWOT analysis to discover recommendations and strategies, with a focus on

leveraging strengths and opportunities to overcome weaknesses and threats.

Strength

The product itself is one of Barako Milk Tea Pops' strengths. Customers will be drawn in by

its novelty and uniqueness. And, because Milk Tea is a trend and Barako is a well-known product in

Batangas City, having extremely strong growth margins, being prominent on social media, and

especially being able to sell items online at an inexpensive price is a significant benefit. Another

advantage of Milk Tea Pops is that they have state-of-the-art facilities and equipment that are

positioned to handle product demand. It's also simple for them to locate the materials and maintain a

large stock.

Weakness

Since it's Milk Tea ice pop, one of the dangers that the entrepreneurs face is the quality risk. A

popsicle's design comprises of a mix of color, flavor, and pop form. Varieties and colors tend to remain

consistent throughout a variety of milk tea flavors. To avoid quality failure, businesses will have

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adequate practice to obtain high-quality milk tea ice pop. This also minimizes reputation harm.

Seasonal Sale is another factor. Because it's popsicle, rainy weather or chilly winters may have a

detrimental impact on sales. To avoid the entrepreneur thinking of another product to mix with ice

pops. Or provide a discount to avoid a sales slump.

Opportunities

Businesses must continue to uncover new methods and technological developments in order to

flourish in the industry. Product development or diversification will be used by Barako Milk Tea Pop;

the company must add more products and flavors to their product. Because Milktea is a fad,

competition might be so intense and overpowering that growth within the existing market is

impossible. A company's earnings cannot be increased unless it finds new customers for its products.

Competitors might also provide an excellent opportunity. Barako Milk Tea pops businesses

would collaborate with local milk and ice cream stores. Where they could offer Barako MilkTea pop

to a larger customer base and in higher markets. In the future, the company plans to expand by creating

more branches.

Threats

The threat that will most likely confront us is the fact that other entrepreneurs will most likely

create comparable businesses in the same place as ours. Another issue is inflation, which leads

businesses to get a smaller return than they projected. One of the causes is rising raw material prices.

For example, caramel syrup or boba pearl. Because of demand, the initial price may climb. The owner

of Barako Milk Tea Pops is well aware of the hazards and is willing to face them. Plan B will be

implemented by the entrepreneurs. The goal of this backup plan is to keep the business running and to

recoup the loss.

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CHAPTER V

STRATEGIC ACTION PLAN

Distribution

Distribution refers to the procedure we use to make the product or service accessible to the final

customer. Distributions in business economics refer to the distributing of items to the recipients.

Distribution, in its broadest sense, refers to all actions that permit the transfer of resources and/or

economic control over tangible and intangible products from one economic subject to another.

(Wirtschaftsleyikon24.net, 2011). Barako Milktea Pops has a physical location so they can interact

with customers and provide them with good service. In order to easily communicate with customers

about how they purchase the products, the proprietors have created a facebook profile. Additionally,

the proprietors are open to anyone who wants to franchise the aforementioned company in order to

have better channels for distribution. On top of that, franchising will help the company grow and

succeed.

Promotion

All of the activities that inform consumers about a product, brand, or service are referred to as

promotions. The goal is to raise awareness, draw customers in, and persuade them to choose the

product over rivals. Promotion is intended to raise awareness, pique interest, drive sales, or foster brand

loyalty. (Coleman,2020).

Barako Milk Tea Pops will make use of social media, one of the easiest and most successful

digital marketing tools that can be used to raise brand awareness. Social networking is a major benefit

because Milktea is popular. Entrepreneurs will make sure their Facebook and Instagram accounts are

robust and showcase a flawless presentation of Barako Milktea pops.

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Barako Milktea Pops also ensures that the packaging is beautiful in order to draw in more

people. A Loyalty Stamp Card, which allows consumers to collect stamps each time they make a

purchase, is how Barako Milk Tea Pops came up with the idea to increase the number of repeat

customers. They receive a free gift after finishing the card.

Barako Milk Tea Pops will also employ personal selling. The most successful and expensive

form of promotion. The buyer and seller converse face-to-face, and the seller can adapt his or her

promotional strategies to the circumstances in this case. In addition, the feedback is immediate, and

they also develop the crucial element of trust with the customer.

Controls

There must be controls in place to keep an eye on the success of a marketing campaign in order

to maximize return. The controls are continuously examined to compare the strategy's actual

performance to the projections as a marketing plan develops. Based on the study of marketing controls,

any necessary adjustments are made. Budgeting and monitoring spending, target market sales, tracking

customer feedback, and market share milestones are the marketing controls. When you first establish

a business, these are crucial.

New Technologies

Technology has a significant impact on corporate operations. Regardless of the size of your

business, technology provides both real and intangible benefits that can help you generate money and

deliver the outcomes your customers want. A company's culture, efficiency, and connections are all

influenced by its technological infrastructure. Oklahoma SBDC, 2015. A Food Kiosk is an example of

modern technology. Self-service checkout kiosks are common in fast food restaurants because they

make the ordering procedure more efficient. The goal is not to recruit fewer people, but to repurpose

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them in jobs that would improve the customer experience. Order accuracy and customization can also

be aided by food kiosks. If you've ever tried to replace a usual item at a fast- food restaurant, you know

how annoying it can be. On a kiosk, though, you may simply add/delete ingredients and specify how

you want your dish made. (2018, UpServe)

Contingency Plan

Food Poisoning

How Can I Prevent Food Poisoning from Occurring?

The simplest method to deal with food poisoning charges is to avoid them in the first place.

You may reduce your risks of serving dangerous food by doing the following:

 Providing your food service employees with the proper food safety training and certification;

 Choosing food and equipment vendors that have been audited;

 Making certain that food is prepared, served, and kept at the proper temperatures; and

 Maintaining records of all actions taken by your food business to maintain maximum food

safety.

How Should I Handle a Food Poisoning Complaint?

Step 1: If a consumer claims to suffer food illness as a result of eating food from your restaurant:

 Assure the consumer of this. Your company takes the complaint seriously;

 Keep a record of the time and date the consumer delivered the complaint;

 Request permission from the consumer to record details that will aid in your complete

investigation of the situation.

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Step 2: Investigate the Allegation

As Food Safety Supervisor, you must collect evidence from your company operations to

determine the veracity of the food poisoning allegation and to avoid additional harm to the health of

your consumers if the claim is genuine.

Step 3: Report the Incident

If many persons claim to have acquired food poisoning from your establishment on the same

day, report the matter to your state or territory authorities or local council.

Step 4: Compensate the Customer

Whether or not your company is to blame for the sickness, it may be a good idea to reimburse

the client for 'dissatisfaction,' or to present a gift card for a future purchase, in order to maintain a

positive connection with the consumer.

Natural Calamities such as Earthquake Evacuation and Rescue

After an earthquake, your employees must know where to gather so that you can account for

everyone. Building Check

Set up a plan for inspecting your workplace and building for damage and putting out any minor

fires triggered by the earthquake. If the building has been damaged, you must also turn off the gas and

electricity.

Awareness Training

Set up training seminars to assist staff learn what to do if an earthquake strikes, such as hiding

behind a strong desk or table. Discuss the actions indicated in your strategy for resuming operations

after the office and building have been judged safe.

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CHAPTER VI

ORGANIZATIONAL SPECIFICATION

Forms of Business Organization

A partnership is an agreement between two or more people to operate a business as co-owners

for profit. The collaboration of two or more owners, the conduct of business for profit, and the sharing

of profits, losses, and assets by the joint owners are the basic aspects of this company type. Because

Barako MilkTea Pops has 9 proprietors, it is competent to engage into a partnership form of company.

A general partnership is the type of partnership in which all partners have equal responsibility for the

debts and liabilities of the firm. Furthermore, all partners are permitted to participate in business

management. In reality, unless otherwise stated in the partnership agreement, each partner has equal

rights to govern and operate the firm. It is an unincorporated business, which means you do not need

to register it with the state to lawfully operate. According to Gage, David, a general partnership occurs

by default when two or more persons get into a business together with the purpose of profit (Basic

Book, 2004).

Organization Structure
General Manager

Barcenas, Aaron John

Finance Service Marketing Operation

Cena, Phoebe Kates Hernandez, Ranen Razon, Raymond Sastado, John Franklin

Staffs

Dolor, Marica
Perea, John Rafael
Rubia, Jeminah Ruth
Valencia, Ma. Paula
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Roles and Responsibilities of Members of the Organization

Barcenas, Aaron John

His roles and responsibilities include effective planning, delegation, coordinating, staffing,

organizing, and decision making in order to achieve desired profit-making objectives for an

organization.

Cena, Phoebe Kates and Dolor, Marica

Their tasks and responsibilities include ensuring that the company achieves all of its

compliance standards, including tax concerns, budgeting, and cash flow monitoring. They are also

keeping an eye on market trends.

Hernandez, Ranen and Perea, John Rafael

Their tasks and responsibilities include providing exceptional customer service, maintaining

good connections with consumers through communication, and assuring return customers by upselling

items.

Razon, Raymond and Rubia, Jeminah Ruth

Their duties and responsibilities include developing plans for product promotion and

advertising. Tracks all marketing and sales data, generates thorough written reports, and makes

necessary adjustments to marketing campaigns and plans.

Sastado, John Franklin and Valencia, Ma. Paula

Their duties and responsibilities include product creation, product receipt, delivery, and product

quality. They are also responsible for ensuring that health and safety requirements are fulfilled.

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The Entrepreneurs

 Barcenas, Aaron John – San Antonio, San Pascual, Batangas

 Cena, Phoebe Kates – Conde Labac, Batangas City

 Dolor, Marica – Pook ni Banal, San Pascual, Batangas

 Hernandez, Ranen – Latag, Tumaway, Talisay Batangas

 Perea, John Rafael – 107 - Rizal Ave., Barangay 3, Batangas City

 Razon, Raymond – 150, Matingain II, Lemery, Batangas

 Rubia, Jeminah Ruth – Batangas Heights Subdv. Bolbok, Batangas City

 Sastado, John Franklin – Bukal, Ibaba, Batangas City

 Valencia, Ma. Paula – Nonong Casto, Lemery, Batangas

The Suppliers

 Injoy Philipines – 426 Quirino Ave, Baclaran, Parañaque, Metro Manila

 Paolo’s MiniMart – Carmel Compound, Bolbok, Batangas City

Terms and Conditions

PURPOSES:

That premises hereby leased shall be used exclusively by the LESSEE for residential purposes only

and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are

used for other purposes, the LESSOR shall have the right to rescind this contract without prejudice to

its other rights under the law.

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TERM:

This term of lease is for ONE (1) YEAR. from (Date) to (Date) inclusive. Upon its expiration, this

lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties,

written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7)

days prior to the expiry date of the period herein agreed upon.

RENTAL RATE:

The monthly rental rate for the leased premises shall be in PESOS: AMOUNT IN WORDS (P

00,000.00), Philippine Currency. All rental payments shall be payable to the LESSOR.

DEPOSIT:

That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an

amount equivalent to the rent for THREE (3) MONTHS or the sum of PESOS: AMOUNT IN WORDS

(P 00,000.00), Philippine Currency. wherein the two (2) months deposit shall be applied as rent for the

11th and 12th months and the remaining one (1) month deposit shall answer partially for damages and

any other obligations, for utilities such as Water, Electricity, CATV, Telephone, Association Dues or

resulting from violation(s) of any of the provision of this contract.

DEFAULT PAYMENT:

In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored,

the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the

right to padlock the premises when the LESSEE is in default of payment for One (1) month and may

forfeit whatever rental deposit or advances have been given by the LESSEE.

SUB-LEASE:

The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied

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in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights

hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on

or vested in anyone by the LESSEE without the LESSOR'S written approval.

PUBLIC UTILITIES:

The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, association dues and other

public services and utilities during the duration of the lease.

FORCE MAJEURE:

If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning,

typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render

the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this

lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice

in writing to the other.

LESSOR'S RIGHT OF ENTRY:

The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right

to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to

examine the same or make repairs therein or for the operation and maintenance of the building or to

exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may

deem necessary.

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EXPIRATION OF LEASE:

At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will

promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and

tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable

furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE

will give the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises

and compel the LESSEE to pay rent therefrom at the same rate plus Twenty-five (25) % thereof as

penalty until the LESSEE shall have complied with the terms hereof. The same penalty shall be

imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease

or termination for any reason whatsoever.

JUDICIAL RELIEF:

Should any one of the parties herein be compelled to seek judicial relief against the other, the losing

party shall pay an amount of One Hundred (100) % of the amount clamed in the complaint as attorney's

fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which

the said party may be entitled to under the law.

Legal Requirement

Certain legal paperwork must be completed prior to launching a business for it to operate smoothly. In

the Philippines, the legal requirements for establishing a business vary by firm type and industry. Prior

to launching a business, several prerequisites must be satisfied.

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Basic Permits

Barangay Clearance

The barangay clearance certifies that your business meets the requirements of the barangay

where it is located. You can obtain a barangay clearance by visiting the barangay office in the location

of your business.

Mayor’s Business Permit

Businesses are required to obtain either a Mayor's Business Permit or a permit from the local

government office where they are located and conduct business. Different cities and municipalities

have varying requirements for obtaining a Mayor's Business license. Before issuing a certificate of

registration, the BIR requires this authorization as well.

a. Location sketch of the proposed business

b. Sworn capital investment of the partners

c. If the firm is exempt from payment or free of tax, a certificate attesting to the due tax or free

exemption is required.

d. A certificate from the person in charge of creating the proposed business division according to

the new rules and regulations.

e. Tax clearance that shows the operation has paid all its tax obligation

f. Two passport size pictures

g. The applicant is accountable if he or she presents a community tax certificate and a receipt for

the payment of professional tax occupation fees.

h. Lease contract if the building is rented

i. Barangay clearance

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SEC Certificate of Registration

Corporations and partnerships must obtain a certificate of incorporation or certificate of

partnership from the Securities and Exchange Commission in order to be considered legal or juridical

entities (

SEC). These certificates are also necessary for registration with the Internal Revenue Service,

the Mayor's Office, and other government agencies. It is essential to understand that government

registration is not required for sole proprietorships.

The following requirements must be reported to the Securities and Exchange Commission (SEC).

a. Name Verification Slip

b. Articles of Partnership

c. Understanding to Change name

d. Registration of Data Sheet

e. Before a notary public, the partners should always take an oath and not recognize the articles

of partnership of limited liability.

f. Clearance from government agencies must also be secured.

g. Acquisition of Barangay Clearance where the business is to be located so that it will be

considered as a legal entity.

These are the procedures for registering with the Securities and Exchange Commission (SEC).

a. Secure name verification slip from records division.

b. Proceed to cashier for payment of filing rate.

c. Submit documents to the receiving unit of Records Section.

d. The documents will be sent to the company's Registration and Monitoring department. The

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entity must acquire an application form with the SEC and make reservations for the registration

of the entity's name.

DTI Business Name Registration Certificate

This is the certificate of registration for your business's trade name. It permits you to operate

under your registered business name. It also prevents other businesses from copying and registering

your company's name. Keep in mind, however, that DTI registration only grants you permission to use

your company's trade name, not a license.

SSS Employer’s Registration

According to Republic Act No. 8282, also known as the Social Security Act of 1997, businesses

and business owners who use the services of another person or workers in commerce, trade, industry,

or other enterprise must register with the SSS.

BIR Certificate of Registration

Each business must register with the Bureau of Internal Revenue in order to comply with

Philippine tax laws. A TIN will be assigned to the company or business owner, allowing them to issue

official receipts and invoices and register their books of account. To register with the BIR, visit the

BIR office with jurisdiction over your location.

PAG-IBIG Employer’s Registration

Employers must also register with the HDMF in order to obtain a Pag-IBIG Employer

Identification Number and provide the proper benefits to their employees, who must be HDMF

members.

PhilHealth Employer’s Registration

All businesses and employers must register with PhilHealth in order to provide health insurance

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DOLE Registration

Companies with at least five employees are encouraged to register with the Department of

Labor and Employment so that compliance with labor laws can be monitored. Companies with 50 or

more employees are required to register with the Bureau of Local Employment, which oversees

establishment registration, of the Department of Labor.

Policies Towards Administrative and Personnel

1. The store will be open between the hours of 8:00 AM and 8:00 PM.

2. The management has chosen to implement biometric attendance in order to prevent

violations of the shop attendance policies.

3. Monday through Friday will be the days of operation.

Policies Concerning Employees

1. Every employee must report to work on time and at the designated time.

2. There must be a high level of cleanliness in the workplace environment.

3. Employees must always wear their PPE.

4. The smoking ban applies to the workplace.

5. Each and every transaction must be meticulously recorded.

6. They are required to wear the proper uniform.

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Policies Towards the Customers

1. Consider the concerns of your customers.

2. Ensure that everything is in order for your valued clients.

3. Ensure the complete satisfaction of each customer.

4. Always maintain a professional demeanor and be approachable with customers.

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CHAPTER VII

Financial Plans

Pricing
A company's pricing strategy is the approach it takes to decide how much to charge

for itsgoods and services. Pricing strategy is a crucial component of financial modeling since

it affects the revenues generated, the profits made, and the sums invested in the expansion of

the business to ensure its long-term existence. (Bonnici,2015).

Table 3

BARAKO MILKTEA POPS

Name of Item Quantity Amount Unit Yield Price per Ingredient

Used

Milktea Powder 500g 300 g 50 ₱ 59.40

Condensed Milk 600ml 600 ml 50 ₱ 120.00
All Purpose 500ml 500 ml 50 ₱ 124.00
Cream
Total 50 ₱ 303.40
For Toppings
Tapioca Pearls 1000 1000 g 50 ₱ 74.00
Brown Sugar 250g 250 g 50 ₱ 20.00
Total 50 ₱ 94.00
For Packaging
Plastics 50pcs 50 pcs 50 ₱ 18.00
Stickers and 50pcs 50 pcs ₱ 80.00
Printout
Total ₱ 98.00

TOTAL PRICE ₱ 495.40

MARK-UP COST ₱ 891.72
(80%)
PROFIT ₱ 396.32
MARKED-UP COST ₱ 17.8344
PER PIECE
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Financial Plan of the Barako Milktea Pops

This chapter shows the financial performance and potential of the business in the

firstyear of the operation and thus, such financial statements can be gleaned below.

Table 4

For the first year of operation, the venture will be earning P875,068.27, meaning

in amonth, the business should earn at least 72,922.36. In a day, it should earn, P2,430.74.

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Table 5

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CHAPTER VIII

This chapter introduces the projected business project's Barako Milktea Pops. It portrays the

ramifications or influence of the milktea shop. This chapter also shows how the company can benefit

as well as the society on whom the company will rely.

Businesses like ours help the economy by giving a freshly authorized product a positive impact

on firm performance in the community where it dwells. It also contributes to economic progress by

offering employment opportunities to those who might otherwise be unemployed by larger

corporations. Sales tax collection is another way that small enterprises help the local economy develop.

Local companies can serve as the foundation for special taxation districts that focus on various

initiatives, such as lighting and sidewalk restorations, are being implemented to rehabilitate historic

retail locations and attract new customers by imposing a sales tax based on their location.

Contribution to the Economy

Small businesses are crucial to local communities because they enable individuals to purchase

and sell with their neighbors and acquaintances. The Economic Advantages of Purchasing the

importance of small enterprises in rural areas and major cities is reflected locally. In certain towns and

villages, the only type of business that can operate while serving a limited population is a small one.

Small businesses in major cities often have a broader range of services range of products or specialize

in providing unique or tailored client experiences small businesses also create new job opportunities

and serve as the foundation for the country's large corporations.

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Employment Generation

Employment rates has been a major issue in the country since its inception, particularly in the

rural areas. Unemployment is rampant in these times when few businesses are recruiting specially

during this time of pandemic. Barako Milktea Pops will provide the opportunity for the local residents

should have the opportunity to work. These individuals will be hired and trained by the business in

order for them to be suitable for the job. This will assist to alleviate the impact of unemployment in the

local economy will benefit since the business will favor those who live close to the shop.

Supplier

Businesses' primary priority is on establishing customers’ loyalty, but it isn't the only

connection that should be managed. A good working connection with your suppliers is equally crucial.

In fact, not getting one can make operating your business feel like riding off-road in a family car

managing relationships with suppliers is one area in which all firms must excel. well at since it has a

big impact in relationships with suppliers is the structured, marketplace assessment of suppliers' assets

and abilities in relation to the overall strategy, the determination of what activities to engage in with

different suppliers, and the preparation and implementation of all interactions with suppliers, in a

coordinated fashion across the relationship life cycle, to maximize the value realized through those

interactions. The goal is to establish two-way, mutually beneficial partnerships with strategic

supply, partners to produce higher levels of competitive advantage and innovation than could be

accomplished by operating independently or through a standard transaction purchasing arrangement.

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Consumers

Barako Milktea Pops will act as a worker's training and working area in order to provide the

best finest and comfortable experience for their clients. Customers will be able to visit a soothing

environment where they may discover their sweet spot to rest, study, or simply pass the time.

Environment

Running an ecologically friendly business allows us to minimise the negative influence on the

environment and protect natural resources. The business may benefit the environment in a variety of

ways. For example, the materials to be utilized will be in as many plastic containers as possible. Paper

bags and boxes will also be utilized as receptacles for take-away orders from the sale of electrical tools,

materials, and equipment. Proper waste management will also be observed, such as garbage segregation

and recycling.

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