Chapter 1: Business Description

1.1 Company Summary

Orchid Pastries is a boutique pastry shop dedicated in crafting artisanal

pastries that tantalize the taste buds and captivate the senses. Founded in 2024, our

shop is nestled in the heart of General Santos City, where we draw inspiration from

the vibrant local culture and culinary traditions. At Orchid Pastries, we believe that

every pastry tells a story. Our skilled pastry chefs blend time-honored techniques

with innovative flair to create an array of delectable treats, ranging from classic

cookies and decadent cakes to whimsical cupcakes and seasonal specialties. Using

only the finest ingredients sourced from trusted suppliers, we ensure that each bite is

a harmonious symphony of flavor and texture. Beyond our commitment to culinary

excellence, we pride ourselves on delivering exceptional customer experiences.

As a company, we are deeply rooted in our community. We believe in giving

back and strive to be responsible stewards of our environment. From sourcing locally

whenever possible to minimizing waste and supporting charitable initiatives, we are

dedicated to making a positive impact both locally and globally. Looking ahead, we

are committed to continued growth and innovation. Through ongoing refinement of

our offerings, expansion into new markets, and investment in our team members, we

aim to solidify our position as the premier destination for artisanal pastries, beloved

by pastry connoisseurs and casual indulgers alike.

To become the top choice for discerning pastry enthusiasts seeking

unparalleled quality, innovation, and service, and to establish Orchid Pastries as a

beloved institution renowned for its unwavering commitment to craftsmanship,

creativity, and customer satisfaction.

1.2 Business Description

Mission Statement

Vision

To redefine the pastry experience by continually pushing the boundaries of

flavor, artistry, and sustainability. We envision a world where each pastry is a

masterpiece, each interaction a cherished memory, and each bite a celebration of

life's sweetness.

Mission

To craft moments of joy through artisanal pastries, infusing passion,

creativity, and care into every delightful bite. We strive to be a beacon of indulgence

and hospitality, enriching the lives of our customers, community, and team members

alike.

Goal

Orchid Pastries main goal is to create a community of pastry avid people that

is healthy and budget friendly

1.3 Key to Success

The following are the key success factors of Flawless chic in the business

industry.

Good Managerial Skills will help to oversee or to insight the capacity of the

business to grow in the business industry. It is responsible for getting the job done

and motivating people, to overcome issues such as limited resources and time.

Customer Relationship Management will help increase profitability by

solidifying customer satisfaction, loyalty, and advocacy. It brings together information

from all data sources within an organization (and where appropriate, from outside the

organization) to give one, holistic view of each customer in real-time which helps the

company to gain more customers.

Humane Treatment of Employees It will contribute to the success of the

company by increasing employee satisfaction and satisfaction with their work

environment. As a result, they were able to carry out their duties effectively.

Work Specialization It will assist in determining the division of labor in the

organization. It is a tool that aids in increasing the productivity and efficiency of

businesses. For a company to be successful, its productivity must rise and remain

stable.

Teamwork is important to an organization to build teamwork within the groups

because it helps to develop good relationships inside the organization and help to

achieve certain objectives and goals.

Good Customer Service is about bringing customers to come back and

about sending them away happy and satisfied through positive feedback about the

business which may encourage other customers to patronize the business.

Good Location is an important decision a business owner should consider

that requires precise planning and research. It involves looking at demographics,

assessing your supply chain, scoping the competition, staying on budget,

understanding state laws and taxes, and much more.

Effective Marketing Strategy focuses on acquiring and retaining customers

as a means of increasing sales. To get the word out about this new venture, radio

ads and direct mail would be used.

Good Governance helps the business to be directed and controlled which

will ensure success and sustainability.

Quality Management Team is a group of people who oversee all activities

and tasks in the company needed to maintain a desired level of excellence. This

includes creating and implementing quality planning and assurance, as well as

quality control and quality improvement.

Chapter 2 Industry Analysis/Market Strategies

2.1 Market Analysis

Market Size

To estimate the market size for pastries in General Santos City, we begin by

defining our target demographic, such as adults aged 18-65 with disposable income

who are likely to purchase pastries regularly. Let's assume our target city has a

population of 500,000 people. We estimate that about 3% of this population fits our

target market. If this demographic purchases pastries 1-2 times per week, we could

potentially have 15,000 to 30,000 monthly purchases. However, it's essential to note

that this calculation is simplified and doesn't account for factors like competition

analysis, market trends, and consumer behaviour studies, which are crucial for

making accurate estimates. Additionally, the accuracy of the data used is critical for

reliable market size estimation.

2.2 Costumer Analysis

Orchid Pastries caters to a diverse range of customers with varying tastes,

preferences, and lifestyles. Through comprehensive market research and analysis,

we have identified several key customer segments that comprise our target

audience:

1. Urban professionals, typically aged between 25 and 45, prioritize convenience

without compromising on quality. They seek quick yet satisfying options for

breakfast, snacks, and occasional indulgences during work breaks or commutes,

valuing premium quality and innovative flavors.

2. Food enthusiasts and students, all ages actively seek unique culinary

experiences, embracing creativity and exploration. They appreciate artisanal

craftsmanship and visually appealing products, often sharing their discoveries on

social media platforms. Families and celebratory occasions represent another

significant segment, seeking indulgent treats and desserts to mark special moments

and create lasting memories. They look for customizable options and family-friendly

offerings that cater to diverse tastes and dietary preferences.

3. Health-conscious consumers, prioritize wellness and mindful eating habits,

preferring lighter, lower-sugar, and gluten-free alternatives without compromising

flavor or quality. They appreciate options such as whole-grain pastries, fruit-based

desserts, and vegan selections that align with their dietary needs.
2.3 Target Market

From the sample target market the target markets indicators are urban

professionals, food enthusiast, students and Health-conscious consumers within the

age group of 8 to 40. The table below shows that 9% of the population are health-

conscious consumers, 18% are urban professional, 27% food enthusiast, and 46%

are students.

Target Market Percentage

9%
18%

urban professional
food enthusiast
students
health-conscious consumer

45% 27%

Table1: Target Market Percentage

2.4 Target Market Segment Strategy

The company Orchid Pastries would use behavioural, geographic and

psychographic strategies in taking account what would be the prior course in pinning

consumers attention, with this it would be affectively determine how this product

could alter the course of feasibility of the baked goods to the people mainly to the

targeted audiences. Furthermore, this strategy would allow us to define data for

further use.

2.5 Business Location

The Orchid Pastries will be located in Sampaloc St. Brgy. West General
Santos City, it would be a single storey building that has its own manufacturing plant,

storage and a store, located in the heart of General Santos City.

Figure 1: Location within the city

Figure 2: Floor plan

2.6 Products of the Company

Orchid Pastries as an artisanal pastry shop that create healthy pastry food

choices thus the created products came from intensive research and consideration

of the company to ensure a decisive and complete product that can satisfy not just

your tummy but also your health bar

Product Description

Smurfin (Blue Muffin)

Introducing Smurfin, the whimsically delightful blue muffin that's sure to brighten up

your day! With its vibrant hue and delectable taste, Smurfin is not just any muffin; it's

a delightful twist on a classic treat. Imagine sinking your teeth into a moist and fluffy

muffin, bursting with the flavor of sweet blueberries, complemented by a hint of

vanilla and a touch of magic. Each bite of Smurfin takes you on a journey of

indulgence, transporting you to a world of enchantment and happiness.

Ingredients

2 cups all-purpose flour

3 teaspoons baking powder

½ teaspoon salt

¾ cup white sugar

1 egg

1 cup warm milk with blue tarnate

¼ cup vegetable oil

Choco-nana Cake Bites

Choco-nana Cake Bites, a heavenly fusion of rich chocolatey indulgence and

the natural sweetness of ripe bananas. This delectable treat offers a tantalizing twist

on the classic cake, infusing it with the irresistible flavor of freshly mashed bananas.

Each bite of Choco-nana Cake Bites is a symphony of flavors, with moist, smooth

chocolate cake melting in your mouth, perfectly complemented by the subtle hints of

banana woven throughout.

Ingredients

½ cup unsalted butter

⅔ cup semisweet chocolate chips

1 large egg

⅔ cup packed light brown sugar

1 small ripe banana, mashed

½ teaspoon vanilla extract

¼ teaspoon salt

¾ cup all-purpose flour

Other Products

Products that goes along with the pastry industry are already on research,

thus this is not included in the first hand of introduction of product, further more

products like cookies, cakes and other more will be released within the same section

of ingredients to assure quality.

2.7 Supplier and Inventory Management

The Suppliers

Raw material will be supplied by the general market of General Santos and

Sweets Unlimtd Baking Depot located in 020 Mangga, General Santos City, 9500

South Cotabato, along with this inventory will be supplied and stored in the main

warehouse located in Sampaloc St. Brgy. West General Santo City.

Inventory

The proposed business will encode all the products order from the suppliers

then it will be monitor and control base on the needs of the business. It will be also

monitor to confirm that the stocks are complete, high-quality, and really suit to the

standard needed by the business. The products will be also control to avoid

overpowering of stocks. The inventory of the product will be bought daily as per

demand of the products making sure 100% quality of the products.

Suppliers Order Flow

The proposed venture will inquire from the identified suppliers about the

availability of the baking needs and supply for more exotic material such as banana

flour and blue ternate. If it is available, the suppliers will accommodate and try to

buy as much on the demand entailing the manufacturing of the product and its

availability, the proposed business will purchase the products then the suppliers will

prepare the total cost for billing and then the proposed business will pay it through
cash, then the suppliers will pack the items and ready to be pick up by the proposed

business or to be delivered to the location of the proposed business.

This figure 7 shows the service flow to the customers.

Inquiry

Accommodation

Checking of Orders

Preparation of Orders

Billing, Payment and

Delivery / Pick-up

Figure 3. Suppliers Order Flow

Product Cost To Make Total Product Made Price/Product

Choco-nana Cake 728 pesos 12 packs 125 pesos/pack

Bites

Smurfin 600 pesos 32 muffins 20/muffin

Pricing

We will not entail the detailed prices per ingredients as the suppliers want to keep it

hidden for their own sake thus we want to comply to the set rules.

Chapter 3: Competitive Analysis

Marketing Strategy and Implementation Summary

3.1 Competitive Advantage

Orchid Pastries is a start-up business mainly focusing in the uniqueness of

the product, there may be products that are made within that scope of decisiveness

but using unique local product is a whole lot of new level. On the other hand, Orchid

Pastries will further focus on the online segment of the market as because 70% of

the market in the Food industry is on the online market making these things will turn

competitiveness up notch. Alongside it, Orchid pastries will be available on orders

within the local market making it available for buyers this thing may be trivial and

simple but simplicity is what makes the business going.

3.2 Competitive Differentiation

The company Orchid Pastries would use behavioural, geographic and

psychographic strategies in taking account what would be the prior course in pinning

consumers attention, with this it would be affectively determine how this product

could go within the market, and the data collected will be used for further

development. Additionally Orchid Pastries will be one of the healthiest pastry

provider in General Santos City as per the main ingredients of our pastries are

healthy substitutions for pastry making.

Major Players in the Industry

1. Aunt Ludi Bakeshoppe

Aunt Ludi is a famous bakeshop for their amazing treats and sweets which

are halal certified, located in 458J+F4P, San Miguel St, General Santos City, South

Cotabato, specifically located within the SM Mall of General Santos.

2. Berro Delight Store

If its cakes and cupcakes Berro Delight is one of the major players for giving

yummy cakes and cupcakes with trendy aesthetics located in Upper Guinto Street

Purok Malakas General Santos City, Soccsksargen, Philippines, General Santos

City, Philippines, 9500, it is rated 2nd for most famous cake shops in town.

3. Chuleekee Siopao

A pastry and siopao haven in the center of GenSan, Chuleekee Siopao is a

store that gives both pastries, sweets and meat based breads located in City Hights

branch, Aparente street. Beside Riavin Gas Station.

3.3 S.W.O.T Analysis

Strengths:

1. High-quality products: Offering delicious pastries made with premium

ingredients can set the shop apart from competitors.

2. Unique offerings: Specializing in unique and innovative pastry creations can

attract customers looking for something different.

3. Skilled staff: Employing experienced pastry chefs and staff who are

passionate about baking can ensure consistency and quality in products.

4. Convenient location: Being situated in a high-traffic area or near other popular

establishments can increase visibility and foot traffic.

Weaknesses:

1. Limited product range: Offering a limited variety of pastries may deter

customers seeking more options.

2. Price sensitivity: Higher prices for premium pastries may limit the customer

base, particularly in areas with lower income demographics.

3. Dependence on skilled labor: Relying heavily on skilled pastry chefs may

pose challenges in terms of recruitment and training.

4. Equipment maintenance: Regular maintenance of specialized baking

equipment can be costly and time-consuming.

Opportunities:

1. Online presence: Expanding the shop's online presence through social media

and e-commerce platforms can reach a wider audience and increase sales.
 2. Collaborations: Partnering with local cafes, restaurants, or businesses for

cross-promotions can expand the customer base and increase visibility.

3. Diversification: Introducing new product lines such as cakes, cookies, or

beverages can attract different customer segments and increase sales.

4. Health-conscious options: Incorporating healthier pastry options, such as

gluten-free or vegan pastries, can cater to growing consumer trends towards

healthier eating.

Threats:

1. Competition: Facing competition from other bakeries, pastry shops, cafes, and

even supermarkets selling pastries can impact market share and profitability.

2. Economic downturns: Economic recessions or downturns may lead to

decreased consumer spending on discretionary items like pastries.

3. Changing consumer preferences: Shifts in consumer preferences towards

healthier or alternative snacks may affect the demand for traditional pastries.

4. Supply chain disruptions: Disruptions in the supply chain, such as ingredient

shortages or price fluctuations, can impact production costs and availability of

products.

3.4 Intellectual Property

In accordance to it the trademark for the recipe, name and logo of Orchid

Pastries will be protected by the Intellectual Property Code of the Philippines R.A.

8293.
Chapter 4: Operation and Management Plan

4.1 Company Diagram

The Founder

The Company has been created by the collaborative and intuitive minds of Mr.

John Paul Condesa, Mr, Rommel Orilla, Mr, Carlo Sarmiento, Mr. Ian Penol, Ms.

Cristin Literal, Ms. Jowerra Momo and Mr. Vincent Dela Cruz. With their collaborative

effort Orchid Pastries are created, they started as classmates in the same school

and the same course after taking National Certification for TESDA GenSan, an idea

generated to create a new and healthier pastry with their skills and expertise the

company started.

Expertise and Experience

 NC II Holder for Bread and Pastry Production (BPP) 2024

 Experienced baked product producers

 Handled events with sweets and pastries

 2022 skills demo participant for TESDA

 With 2 years of experience in Bread Making

 Company Framework

OWNERS

FLOOR MANAGER MASTER BAKERS

OFFICE AND FLOOR WORKERS KITCHEN UTILITY

4.2 Business Type

The Business Orchid Pastries will be general partnership type of business

where owners have equal share and footing within the business.

4.3 Work Description

1. CEO (Chief Executive Officer):

 Develop and implement the company's vision, mission, and strategic goals.

 Provide leadership and direction to all departments and employees.

 Oversee financial management, including budgeting, forecasting, and

financial reporting.

 Build and maintain relationships with stakeholders, including investors,

partners, and customers.

 Monitor industry trends and competitors to identify opportunities and risks.

  Ensure compliance with regulations and ethical standards.

 Make high-level decisions that impact the overall success and growth of the

business.

2. Manager:

 Supervise daily operations of the pastry shop, including staff scheduling,

inventory management, and customer service.

 Train and mentor employees to ensure high-quality service and product

standards are met.

 Monitor sales performance and implement strategies to achieve sales targets

and maximize profitability.

 Coordinate with suppliers to maintain adequate inventory levels and negotiate

pricing.

 Handle customer inquiries, feedback, and complaints in a timely and

professional manner.

 Implement marketing initiatives to promote the pastry shop and attract new

customers.

 Ensure compliance with health and safety regulations and sanitation

standards.

3. Master Baker:

 Create and develop recipes for a variety of pastries, cakes, and desserts.

 Oversee the production process to ensure consistency and quality in all baked

goods.
  Train and supervise kitchen staff in baking techniques, recipe execution, and

food safety protocols.

 Manage inventory of baking ingredients and supplies, ensuring adequate

stock levels and freshness.

 Experiment with new ingredients, flavors, and techniques to innovate and

improve pastry offerings.

 Maintain cleanliness and organization in the bakery kitchen, adhering to

sanitation and hygiene standards.

 Troubleshoot issues with recipes, equipment, or processes to ensure efficient

and smooth operations.

4. Kitchen Staff:

 Assist the master baker in preparing dough, batters, and fillings for pastries

and desserts.

 Operate baking equipment such as ovens, mixers, and dough sheeters safely

and efficiently.

 Follow recipes and instructions accurately to ensure consistency and quality

in baked goods.

 Monitor baking times and temperatures to achieve desired results and avoid

over or under-baking.

 Assist with decorating pastries, icing cakes, and packaging finished products

for display or sale.

 Maintain cleanliness and organization in the kitchen area, including washing

dishes and sanitizing work surfaces.

  Collaborate with other kitchen staff to streamline workflow and meet

production deadlines.

5. Logistics and Utility:

 Manage incoming and outgoing shipments of ingredients, supplies, and

finished products.

 Coordinate with suppliers and freight carriers to schedule deliveries and

pickups.

 Maintain accurate records of inventory levels, including stock counts and

storage locations.

 Monitor storage conditions, such as temperature and humidity, to ensure

product quality and freshness.

 Assist with loading and unloading trucks, palletizing goods, and storing items

in designated areas.

 Perform routine maintenance and repairs on equipment, machinery, and

facilities as needed.

 Ensure compliance with safety regulations and procedures to minimize

accidents and injuries.

6. Floor Workers:

 Greet customers warmly and provide assistance in selecting pastries and

desserts.

 Handle cash transactions, process orders, and issue receipts accurately.

 Maintain cleanliness and organization in the front-of-house area, including

display cases and seating areas.

 Answer customer inquiries about menu items, ingredients, and allergens.

 Upsell additional products or promotions to increase sales and customer

satisfaction.

 Monitor and replenish inventory of packaged goods, drinks, and condiments.

 Collaborate with kitchen staff to ensure efficient service and timely order

fulfillment.
5 Marketing Strategy and Implementation Summary

5.1 Marketing Strategy and Positioning

Orchid Pastries will focus in three core strategies in building the business

mainly Quality Positioning strategy, Convenience-based strategy and Customer-

based positioning strategy these strategies will allow us to independently forgo in the

market as we all know a good quality, convenient product and a friendly employee

makes a product booming. The Orchid Pastries will focus on the online market

sector which comprises the 70% of the market .

5.2 Traditional and Online Marketing and Advertising

Advertising Channels

 Campaign media

Social media- Short video clip of every mobile app like Facebook, YouTube

and etc.

Flyers

 The purpose of the fliers is to help your product to be well known were the

information and product benefits well-being communicated. Also include the

Special offers like coupon codes, discounts, sale details, and other relevant

information.

Brochure

 A brochure is an informative paper document (often also used for advertising)

that can be folded into a template, pamphlet, or leaflet. A brochure can also

be a set of related unfolded papers put into a pocket folder or packet.


5.3 Sales Strategy and Forecast

Pastry industry is booming from day to day, sales will be depicted in an

orderly manner by day to day purchase, based on table 2 by the first quarter it is

forecasted to have 36% in sales profit, proceeding by the next quarter would be 25%

as per notion in consumer would likely to credibly assess the product but by the

succeeding quarter would have rising degrees on sales as for the reason that the

product is already stable in the market.

Sales Forecast
80

70

60

50

40

30

20

10

0
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales forecast

Table 2: Sales Forecast

Chapter 6: Financial Plan

6.1 Start up cost

START UP COST In peso

Legal Fees PHP 2,500.00

Incorporation and Trademark Registration PHP 10,000.00

Consultant PHP 15,000.00

Fliers and Brochure PHP 10,000.00

Materials and Equipment PHP 25,893.00

Machineries PHP 108,613.00

Grand Total PHP 172,006.00

Table 3: Start-up cost

6.2 Material and Equipment cost

Equipment

Quantit

Item y Price per piece Total

Cake board 10 150 1,500

Measuring spoons and cups 5 250 1,250

Mixing bowls 20 150 3,000

Baking Pan (set) 12 193 2,316

Wooden spoons 5 188 940

Spatula (set) 5 236 1,180

Pastry brush 7 70 490

Whisk 7 66 462

Rolling pin 6 125 750

Chef’s knife (set) 5 758 3,790

Parchment paper 5 185 925

Utility bowl 50 35 1,750

Spoon and fork 15 49 735

Cake cover 10 250 2,500

Bench scraper 7 98 686

Cooling Rack 5 175 875

Flour Sifter 7 122 854

Muffin tin 10 189 1,890

Grand Total 25,893

TABLE 4: Material and Equipment Cost

Item Quantity Price per piece Total

Mixers 5 1,399 6,995

Oven 2 12,000 24,000

Proofer 1 15,000 15,000

Refrigerators 2 16,499 32,998

Bread slicer 1 17,390 17,390

Blender 5 1,258 6,290

Digital weighing scale 10 594 5,940

Grand Total 108,613

6.3 Machineries Cost

Table 5: Machineries Cost

6.5 Annual Break Even Analysis

Break Even Analysis states that in mid of quarter 2 the sales are starting to

increase by 315% and by quarter 3 and quarter 4 the revenue are steadily
increasing. Thus means that as the sales revenues increases so as the profit margin

of the company. Also by quarter three to four the start up cost will be evened out by

profits. Additionally by Q4 we will now see profits

200,000

180,000

160,000

140,000

120,000

100,000 start up
Sale Forecast
80,000

60,000

40,000

20,000

0
Q1 Q2 Q3 Q4

Table 6: Break Even Chart

6.6 Income and Loss Chart

As per the breakeven chart of table 6 there would be loss by the first two

quarters as per this is the start-up of the business but by the middle of the third

quarter profit would be seeable and minimum loss would be accounted and by fourth

quarter profit margin would be significantly higher by 50%

 180000
160000
140000
120000
100000 Income
80000 Expenses
60000 Revenue
40000
20000
Revenue
0 Expenses
Q1 Q2 Income
Q3 Q4

Table 7: Income and Loss Chart

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Income

Store Sales PHP 20,000 PHP 30,000 PHP 100,000 PHP 80,000

Online Sales PHP 10,000 PHP 15,000 PHP 60,000 PHP 90,000
Total PHP 30,000 PHP 45,000 PHP 160,000 PHP 170,000

Expenses

PHP
rent PHP 3,000.00 PHP 3,000.00 PHP 3,000.00
3,000.00

PHP
Employee fees PHP 12,000.00 PHP 26,000.00 PHP 26,000.00
26,000.00

Legal and
PHP 12,500.00 PHP 6,700.00 0 0
Insurance

PHP
Machineries PHP 4,000.00 PHP 4,000.00
PHP 108,613.00
4,000.00

PHP
Utilities 0 PHP 3,300.00 PHP 2,400.00
5,400.00

Equipment and PHP

PHP 7,000.00 PHP 4,600.00
PHP 25,893.00
Supplies 6,600.00

Marketing Spend PHP 10,000.00 PHP 10,000.00 0 0

PHP
Total Expenses PHP 172,006.00 PHP 60,000.00 PHP 40,000.00
45,000.00

PHP -
Cash Balance PHP -142,006.00 PHP -42,006 PHP 87,994.00
157,006.00

6.7 Projected Cash flow

6.6 Business Ratio

The Orchid Pastries will be using Current Ratio which is 2:1 ratio in the

business in where 2 parts of assets versus 1 part of liabilities this will make sure that

the business will produce more equity while time is running, with this we can make

that the business is going in the right path and do not go into bankruptcy.