Baker Bros Feasibility Study

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The feasibility study evaluates the viability of opening a confectionary store called BakerBros owned by five college friends. It discusses the business concept, location, market analysis, organizational and operational plans.

The feasibility study is being conducted to determine the viability and profitability of opening a confectionary store called BakerBros. It aims to present the business concept, location, market analysis, organizational and operational plans to help secure approval and funding for the business venture.

The proposed location for BakerBros at Don Antonio Sports Center in Quezon City provides several advantages such as stability of electric and water supply, accessibility to suppliers and target market, availability of strong internet access, and favorable traffic situation.

ASIAN INSTITUTE OF COMPUTER STUDIES

ENTREPRENEURSHIP DEPARTMENT

BakerBros

__________________

A Feasibility Study
Presented To The Faculty Of The Entrepreneurship Department
Asian Institute of Computer Studies

__________________

In Partial Fulfillment Of The


Requirements For The Degree
Bachelor of Science in Entrepreneurship

__________________

By

Jonvi Desuasido
Karl Royce Escoto
Justin Patrick Floria
Allan Loreto
Joshua Agasi Samson

March 2017
ASIAN INSTITUTE OF COMPUTER STUDIES
ENTREPRENEURSHIP DEPARTMENT

APPROVAL SHEET

This feasibility entitled, “BakerBros” prepared and submitted by Jonvi


Desuasido, Karl Royce Escoto, Justin Patrick Floria, Allan Loreto and Joshua Agasi
Samson, in partial fulfillment of the requirements for the degree of Bachelor of Science
in Entrepreneurship is hereby recommended for oral examination.

Ms. Nida Motoyama


Adviser

Date : March 14, 2017

Approved as partial fulfillment of the requirements for degree of Bachelor of


Science in Entrepreneurship with a grade of ______.

Nena F. Famocol, PhD.


Chairman

Jesus Victor Lacerna, MIT Manuel Luis de los Santos, MSCS


Member Member

Accepted as partial fulfillment for the degree of BACHELOR OF SCIENCE IN


ENTREPRENEURSHIP.

Nena F. Famocol, Ph.D.


Dean, Entrepreneurship Department

ii
ACKNOWLEDGMENT

The proponents are delighted that this Feasibility Study has been accomplished

the best way they know how. Their deepest gratitude goes to the Almighty God for the

gift of wisdom, patience, endurance and physical strength. Without which this

undertaking will not be a success.

Likewise, the proponents would like to thank the following people for their

various contributions to the project:

T heir parents for their unending support, financial assistance and encouragement;

Dr. Nena F. Famocol, Dean of Entrepreneurship Department, for her guidance in

ensuring that this feasibility will be prepared according to the standards of the

department.

Ms. Nida R. Motoyama, who has greatly shared her knowledge and sustained

encouragement all throughout the final preparation of this feasibility.

Ms. Sarah Floria, the Owner of Swirls & Twirls Cakes and Cupcakes, for

sharing pertinent information about the ins and outs of doing and managing a

confectionary store.

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EXECUTIVE SUMMARY

BakerBros is a confectionery store located at the heart of Quezon City.

Confectionary products will be offered in a variety of flavours, frostings, sizes, styles,

topping and decorations. The store will contain a comfortable seating area allowing

customers to stop in and enjoy the confections.

The owners of the company are college friends banking on their BS

Entrepreneurship degree as a strong head start for the success of this business venture.

Key management positions will be handled by the owners themselves under the General

Partnership form of ownership. While non-management personnel will be hired base on

the pre-defined qualifications.

BakerBros will be located at Don Antonio Sports Center, Barangay Holy Spirit

Quezon City and a location providing extremely high visibility as well as direct entry and

exit from a primary national access road.

The location alone provides BakerBros the following advantages. Stability of

electric and water supply, accessibility to suppliers (from ingredients, packaging to

furniture), availability of strong internet access, traffic situation and accessibility to the

target market.

BakerBros will be providing the community with high-end baked products made

from high grade ingredients. BakerBros customer value proposition is to provide

customers with baking goods based on fine quality, supreme taste, and unique and

original design. As a differentiated product and service provider, BakerBros will be

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positioned at a higher price point, but much affordable than the products from the leading

competitors.

To the community, the company will contribute in increasing the employment rate

by hiring at least 18 employees.

To the environment, Bakerbros will ensure that the product and processes of the

company are environmental friendly and will not cause any hazard at all.

In terms of technology, the company will utilize the power of technology by

providing worry-free and secured purchasing option through its online store.

Financing of the project cost will depend on the cash capital contribution of the

partners to have a total amount of P 7,500,000.00. A five year projection is prepared an

annual increase of 10%. An estimated annual sale was computed based on sitting capacity

of the establishments. Cost of sales and operating expenses likewise increase by 5%

yearly. Our return of investment is 22.31%.

v
TABLE OF CONTENTS

Preliminary Pages Title Page

Title Page i
Approval Sheet ii
Acknowledgment iii
Executive Summary iv
Table of Contents vi
List of Tables vii
List of Figures vii

Chapter

1 THE BACKGROUND AND RELATED STUDY 1


Introduction 1
Logo 3

2 MANAGEMENT AND ORGANIZATIONAL STUDY 4


The proponents 4
Capital Investment 5
Types of organization 20

3 MARKETING STUDY 32
Marketing mix 46
Competitors 46
Promotion and Advertising 44

4 PRODUCTION AND TECHNICAL STUDY 49


Title Heading - Building Layout 50
Title Heading – Production 64

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Title Heading – supplier 71
Raw Materials 69

5 SOCIO-ECONOMIC STUDY 81
Family 81
Government 81
Community 81

6 FINANCIAL STUDY 73
Project Cost 73
Income Statement 75
Balance Sheet 77
Statement of Cash Flow 76
Ratio Analysis 78

APPENDICES 83

Government Requirements 91

BIBLIOGRAPHY 99

CURRICULUM VITAE 101

LIST OF TABLES

Table No. Title

1 Proponents 4
2 Capital Investment 5
3 Management Personnel 18
4 Management Personnel 19
5 Duties, Responsibilities and Minimum Qualification 21
6 Net Pay 29
6.1 Common Bases of Market Segmentation 33
7 BakerBros Market Segment 34
8 BakerBros Daily Demand Per Product 35
9 BakerBros Demand Projection Per Product 35

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10 Demand vs Supply 37
11 BakerBros Projected Sales Report on its 1st Year of Operation 38
12 Average Sales Per Product 38
13. Competitor’s Sales Report 40
14 Comparative Average Daily Sales of Competitors 40
15 Competitors Analysis 46
16 Pricing 48
17 Location Details 50
18 Office Equipment 57
19 Kitchen Equipment and Machineries 59
20 Restaurant Furniture and Equipment 62
21 Raw Materials 70

LIST OF FIGURES

Figure No. Title

1 Company Logo 3
2 Organization Chat 20
3 Administrative (Hiring Process) 30
4 Supply and Demand Analysis 37
5 BakerBros 5-year Plan 42
6 The Marketing Mix 46
6.1 Market Share 47
7 Location Map 50
8 Proposed Layout 51
9 Basic Ingredients and Common Procedures 65
10 Production Flow 66
11 Service Flow 67
11.1 Floor Plan 69
12 Packaging Supplier 73

viii
1

CHAPTER I

THE BACKGROUND AND RELATED STUDY

Introduction

The business will be named BakerBros, a short term for Baker Brothers. The

proponents are long-time friends since their 1st year in AICS and consider themselves to be

‘brothers’. Similarly, the confection store targets families, friends and ‘brothers’ as their

customers.

The project feasibility may form the basis of an important investment decision and

in order to serve this objective, the document/study covers various aspects of project

concept development, start-up, and production, marketing, finance and business

management.

The products would be cakes, snacks, sweets, biscuits, bread and other sugar-free

confection items that will be uniquely BakerBros. To entice more dine-in customers,

BakerBros will also offer pasta, cold concoctions, hot and cold coffee, fruit shake, sundae

and ice cream.

The proponents conceptualized this feasibility study because of the growing popularity

of confection products like cakes and cupcakes nowadays. It used to be that these

confection items can only be seen and enjoyed during special occasions such as birthdays

and weddings.

However, the recent years proved that cupcakes and other confection products have an

increasing demand, while cakes are fast becoming an item even in ordinary occasions.
2

Furthermore, BakerBros will also introduce sugar-free confections for those health-

conscious customers.

We from BakerBros are positive that our products will be a hit to the masses not

just because eating sweets are a thing today or in other words trendy, but also because it is

in our culture. Based from our study, Filipinos are enticed about the idea of sweets

especially pastry, a thing passed from generation to generation starting from our Malay

ancestors.

The importance of baked goods in Philippine tradition is undeniable. With so many

foreign influences that made their mark in how baking developed in the Philippines, there

is no definitive answer really, to how it all began. What we do know, is the importance of

this wonderfully delicious art, and how it has since been vital in every Filipino’s life, that

is why here in BakerBros we give our one of a kind services to the fullest.

It is very difficult to put an exact date on when baking, cake making and

decorating began, although it is thought that the Babylonian’s taught the Egyptians the art

of baking. A painted panel of around 1175 BC, depicted the court bakery of Ramesses III,

illustrates the preparation of several types of cakes, as well some bread. There are also

indications that confectionery sweetened with sugar was on sale in Egypt around 700 BC.

Today we serve specially decorated cakes to celebrate many different occasions:

weddings, christenings, engagements, anniversaries, birthdays and Christmas. Christmas

cakes have a long history and were baked by the rich in the eighteenth century as Twelfth

Night cakes. A bean and a pea would be hidden and baked in the rich fruit mixture.

Whoever found the bean was crowned ‘king of the feast’ and the finder of the pea ‘queen
3

of the feast’. But it is wedding cakes that have the longest tradition and the story of their

changing development the best illustrates the history of cake decorating as an art.

Figure 1: Company Logo

The BakerBros logo in the above figure symbolizes everything that the company

represents. The male image represents the masculinity of the proponents/investors, (all of

them are males). The image holding a tray of cupcakes highlights the product, as well as

it reinforces that even strong, muscled men can show their ‘sweet side’. The different

cupcakes represent the various confection products that the store will be offering. The

tagline meant to defy the norm that only women can love sweet products and the kitchen

is entirely a women’s domain. In totality, the logo is meant to capture the male market,

since women and children seems to be an automatic market for these types of products.
4

CHAPTER II

MANAGEMENT AND ORGANIZATIONAL STUDY

The Proponents

The proponents chose a General Partnership as the type of business ownership

because the partners are all involved in the whole operations of the business. They

combined their knowledge and skills to manage the business. They share together to

contribute their money into a common fund with the intention of dividing profits among

themselves.

Table 1: Proponents

NAME ADDRESS
Jonvi Desuasido Ilang-ilang St., Batasan Hills, Brgy. Batasan, Quezon

City
Karl Royce Escoto Blk 5 Lot 5 Dona Isidora St., Don Antonio Heights,

Diliman, Brgy. Holy Spirit, Quezon City

Justin Patrick Floria Blk 5 Lot 167 Ph 1k-1 Kasiglahan Village, San Jose,

Rodriguez, Rizal
Allan Loreto #220 Don Faustino St., Don Antonio Heights,

Diliman, Brgy. Holy Spirit, Quezon City


Joshua Agasi Samson #9 Bill St., Talanay C, Batasan Hills, Brgy. Batasan,

Quezon City
5

Partner Investment

Table 2: Capital Investment

OWNERS CAPITAL % CONTRIBUTION

CONTRIBUTION

(in Php)
Jonvi Desuasido P 1,500,000 20%
Karl Royce Escoto P 1,500,000 20%
Justin Patrick Floria P 1,500,000 20%
Allan Loreto P 1,500,000 20%
Joshua Agasi Samson P 1,500,000 20%
TOTAL P 7,500,000 100%

Objectives of the Project Study

The main objective of the study is to prove that the business of interest to the

proponents is feasible and will be profitable. The proponents plan to: offer to the general

market improved version of popular confection products; introduce innovative confection

products that will be uniquely BakerBros; break away from the traditional ‘restaurant set-

up’ as a means to offer products. BakerBros will offer its confection products via e-store to

reach a much bigger market; ultimately, the BakerBros confection products will become a

common household name.

Mission Statement
6

BakerBros mission is to enrich the lives of our guests, our employees and owners.

We do this through superior quality confectionaries, legendary customer service, and sales

growth, cost controls and treating our employees like family. We believe that our

employees are our most important resource and our success depends upon creating and

retaining a staff capable of delivering an exceptional service to every customer, every

time.

Vision Statement

Our Vision is to position ourselves as a cutting-edge brand in confectionary market.

Values Statement:

Quality-Oriented and Goal-Oriented

We deliver on our promises in accordance with quality standards and in support of our

company goals.

Customer-Oriented

We effectively foresee, understand and meet the needs of our customers ensuring

maximum satisfaction.
7

Open

We openly share our knowledge, ideas, suggestions and responsibilities.

Innovative and Dynamic

We are a company that is constantly and rapidly learning, adapting, developing and

adding value to its industry through its progressive ideas.

Efficient and Consistent

We continuously improve our efficiency in every area and strive to create sustainable

added value for our stakeholders and enable our customers to obtain quality products at

reasonable prices.

Reliable and Principled

We strive to gain and maintain the justified trust of our employees, customers and

business partners through our open, honest and principled approach.

Sense of Belonging

We establish long-term and value-added relations with our employees, customers and

business partners.
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Teamwork

As a family, we display effective teamwork by providing the necessary support for

each other and make the most of our differences in knowledge, skills and experience

through mutual respect and insight.

Management during the Pre-operating Period

In the pre-operation stage, BakerBros management shall do the following:

 conceptualize the project study

 document the various business processes

 secure necessary government permits

 formalize service agreements with key suppliers

 purchase equipment, raw materials and furniture

 outsource construction agency for the renovation of the establishment

 finalize marketing materials to be used for the soft and grand opening

 finalize signage design, product offering and pricelist

 select and hire initial manpower requirement

Management during the Operating Period

The proponents chose a General Partnership as the type of business ownership

because the partners are all involved in the whole operations of the business. They

combined their knowledge and skills to manage the business. They share together to
9

contribute their money into a common fund with the intention of dividing profits among

themselves.

On Sharing Profits

A partnership agreement signed by owners will formally and legally document the

manner in which profits and losses are to be shared.

On Management and Control

Each general partner has an equal right to participate in the management and

control of the business. Each will be given a specific position to manage as defined under

Chapter II - Personnel. While, in case of disagreements among general partners, discourse

will be dealt with through a votation; wherein the course of action are decided by the

majority of the partners.

On Transferability

No one can become a member of the partnership without the consent of all partners.

However, a partner may assign his share of the profits and losses to another person by

executing a formal document duly notarized.


10

Management Style

Among the three most popular management styles: Autocratic, Paternalistic and

Democratic, BakerBros will adapt the Democratic Management Style because the

management believes in the following concepts:

Delegation of Responsibility

A democratic leader will delegate responsibility among members of his or her team

to facilitate member participation in making decisions.

Empowerment of Group Members

It is incumbent on leaders to empower their team members in order that the

members will be properly equipped to accomplish their tasks. Included in the

process of empowerment is the provision of the education and training required for

the completion of delegated tasks.

Aiding the Process of Group Decision Making

A significant role played by the democratic leader is ensuring that democratic

deliberation takes place when group decisions are being made. This indicates that

the leader is supposed to serve as a mediator and facilitator between members of

the group, make sure that the members are psychologically well and there is a

respectful environment at all times.


11

However, just like any management styles, Democratic Leadership has its own

weaknesses, which include the following: be given an Employees Handbook. Please refer

to Appendix C for the complete Employee Handbook.

Aside from the handbook, all employees will be required to sign a Confidentiality

Agreement Contract. This “non-disclosure agreement” document is designed to protect the

“confidential” information of BakerBros. Information that are treated confidential are

those pertaining to BakerBros recipe, baking and production procedures, marketing

strategies including the list of BakerBros clients and suppliers. Please refer to Appendix D

for the copy of the Non-Disclosure Agreement Form.

Staff Development Programs


In support of the BakerBros Mission and Vision Statements, the company supports

staff development and has put in place a comprehensive Staff Development Program to

ensure that BakerBros staff will grow with the company. The result of the periodical

appraisal will be the basis of merit increase. The Appraisal will be divided into 2 parts.

The 1st part will measure staff’s performance vis-à-vis Key Performance Indicators, while

the 2nd part will measure staff’s Behavioral Competence. The purpose of this appraisal is

not undermining the capabilities of staff, but more importantly, staffs are appraised to

determine the following:


a. Strength
b. Weaknesses
c. Training needs
d. Mentoring requirement
e. Pay increase
Please refer to Appraisal E for the copy of the Staff Appraisal Form.

Administrative Department Facilities, Equipment and Machineries


12

Similar to other businesses, the administrative function at BakerBros will be handled

by the Admin and Operations Department. The Admin and Operations Department will be

the one in charge of the following:

f. Selection and hiring of applicants


g. Time keeping and payroll
h. Communicating information, reminders and instructions to staff.
i. Manpower projection
j. Inventory management of ingredients and supplies
k. Requisition of supplies, equipment and machineries

As a start-up business, BakerBros invested in kitchen equipment and machineries

that are heavy-duty and are considered to be of ‘industrial quality’. The equipment listed

below might be pricey but since they are durable. The lifespan of these items on the

average will last for 5 to 10 years.


13

Salaries and Compensation Benefits

1. Government Mandated

a. Social Security System

Covered employees are entitled to a package of benefits under the Social Security

and Employees' Compensation (EC) Programs in the event of death, disability, sickness,

maternity and old age. Self-employed and voluntary members also get the same benefits

as covered employees, except those benefits under the EC program.

Basically, the SSS provides for a replacement of income lost on account of the

aforementioned contingencies. The benefits under the Social Security Program are:

 Sickness

 Maternity

 Disability

 Retirement

 Death

 Funeral

b. Pag-IBIG

It’s a deplorable fact: A lot of Pag-IBIG Fund Members, especially the employees,

are not aware of the benefits they can derive from becoming (forcibly, since it is

mandatory) a member of the Pag-IBIG Fund. For some, getting a payroll deduction for

Pag-IBIG contribution is an automatic acceptance of something that is unavoidable – no


14

questions asked, no complaint unless the net salary is already far too low to even pay for

electric bill. After all, there must be some deductions to the salary just like Income Tax,

SSS or GSIS, right?

c. PHILHEALTH

PhilHealth have six major membership categories covering nearly the entire

population. Those who count under the "Formal" sector are workers employed by public

and private companies and other institutions. "Indigents" also called "Philhealth sa Masa"

are subsidized by National Government the National Household Targeting System for

Poverty Reduction."Sponsored Members" are subsidized by their respective Local

Governments (LGU). "Lifetime" (non-paying members) is retirees and pensioners and

have already paid premiums for 120 months of membership and are 60 or older. "Senior

Citizen" under RA 10645 that all citizen ages 60 years old above are eligible to have free

philHealth coverage. The "Informal Economy" is composed of Informal Sectors, Self-

Earning Individuals, Organized Group, Filipino with Dual Citizenship, Naturalized Born

Citizen. Although treated separately, the Overseas Filipino Workers (OFW) program or

Migrant Workers is as part of the Informal Economy. Migrant Worker is sub-categorized

as whether Land Based or Sea Based (for Sea Fearers)


15

2. Company Benefits

a. Retirement pay

Upon the age of 60 years or more, the employee who has served at the

establishment for at least five years may be granted a retirement pay equivalent to at least

one-half month of salary for every year of service. A fraction of at least six months is

considered as one whole year.

The “one-half month salary” includes:

1. 15 days salary based on the latest salary rate;

2. Cash equivalent of 5 days of service incentive leave;

3. One-twelfth (1/12) of the 13th month pay

b. Overtime pay

The employee who renders overtime will be given additional compensation

equivalent to his regular wage plus at least 25% premium. Overtime pay for holiday or

rest day shall be paid an additional compensation from the rate of the first eight hours on a

holiday or rest day plus at least 30%. On a Special Non-Working day, or rest day, an

additional compensation of 30% premium will be paid in addition to the rate of the first

eight hours on holiday or rest day.


16

c. Night shift differential (NSD)

Applies to employees who work between 10:00 p.m. and 6:00 a.m. An additional

10% premium is applied for every hour at work. While sick leave and vacation leave

benefits are not specifically stated under the law, it stipulates that private employees are

allowed to provide employees a yearly Service Incentive Leave of five days with pay. This

applies to employees with work tenure of at least one year within the company.

d. Maternity Leave

Any pregnant woman employee who has worked with the company for at least six

months will be granted a maternity leave of at least two weeks prior to her due date

(expected date of delivery) and four weeks after normal delivery or miscarriage with full

pay based on her regular salary. A total of 60 days is granted for government employees,

and 60 to 80 days for employees in the private sector. The Maternity Leave benefit is

effective up to the first four deliveries of the woman employee working in the company.

e. Paternity Leave

The R.A No. 8187, or Paternity Leave Act of 1996, grants seven days of fully paid

leave to married fathers. This is effective up to the first four deliveries of the legitimate

spouse. Parental Leave for Solo Parents, or Solo Parenting Leave (SPL) Seven days leave.
17

Personnel (Administrative)

BakerBros will be managed by the five (5) owners by holding key positions in the

company, namely:

 General Manager
 Finance Manager
 Research & Development Manager
 Marketing Manager, and
 Operations and Admin Manager

Assignment for the position will be based on the skills and expertise of the individual

owners. Hands-on as they are, the owners, just like their staff, will report to work 6-days a

week.

BakerBros will be an innovative, as well as a very dynamic company. On the 1st few

months of operation BakerBros will operate on a limited capacity. The office hours and the

production area will work on a single shift only and may start from 8am and end at 5pm.

On the other hand, the dining section will operate on 2 shifts: 6am to 3pm and 3pm to

12mn. New shifts will be introduced depending on future demands.

Table 3: Management Personnel


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Position # of Personnel

Management Personnel 5

General Manager 1

Research & Development Manager 1

Finance Manager 1

Marketing Manager 1

Admin & Operations Manager 1

Table 4: Management Personnel

Labor Skills or Staff Level 19


19

Administrative Personnel 4
Secretary 1
Office Staff 3
Production 6
Pastry Chef 1
Assistant Pastry Chef 1
Production Staff 4
Restaurant Staff 8
Servers 6
Security Guard 2
Company Driver 1

Figure 2: Organization Chart


20

Proposed Job Requirements, Responsibilities & Function

*Minimum Requirement is only applicable to new hires and non-investor.

Generally, the 5 proponents of this feasibility will also be the investors / owners of

BakerBros. Each will hold one of the key management positions as laid-out in the Table of

Organization (Figure 4). However, in this documentation, these key management positions

is open to new hires, but only in the case when the investor holding the position opted to

resign as a management personnel. Thus, the minimum qualification for all management

positions were identified and included in the table below

Table 5: Duties, Responsibilities and Minimum Qualification

GENERAL MANAGER
21

Duties & Responsibilities *Minimum Qualification


 Responsible for overseeing and  Must be a graduate of a 4-year course,

supervising the BakerBros overall preferably Management or Business

activities and personnel. Administration course.


 Responsible for increasing  Excellent in spoken and written English.
 Preferably with managerial experience of
management’s effectiveness by
at least 2 years.
communicating company values,  Key skills: Customer service, leadership

strategies, and short and long-term and interpersonal communication skills;

objectives. office management skills, understanding


 Responsible for assigning
payroll procedures; food management
accountabilities; planning, monitoring,
skills and knowledge of food safety and
and appraising job results.
sanitation regulations

RESEARCH & DEVELOPMENT MANAGER


Duties & Responsibilities *Minimum Qualification
 Responsible for product development  Must be a graduate of any 4-year

and enhancement. Management course.


 Responsible for identifying new  Excellent in spoken and written English.
 Preferably with managerial experience of
market trends in the confection
at least 2 years.
industry and proposing new products  Key skills: Customer service, leadership
22

to keep up with the competition and interpersonal communication skills;


 Responsible for ensuring that all
office management skills and familiarity
products are within the Quality
with variety of the food industry’s
Standard set by the BakerBros
concepts, practices and procedures.

FINANCE MANAGER
Duties & Responsibilities *Minimum Qualification
 Responsible in keeping the Financial  Must be a graduate of any 4-year

Record of BakerBros accurate and Finance or Management course.


 Preferably a Certified Public Accountant
updated.
 Responsible in managing the funds of holder.
 Excellent in spoken and written English.
BakerBros to maximize return on  Preferably with managerial experience of

investment while minimizing the risks. at least 5 years.


 Responsible in ensuring that adequate  Key skills: Customer service, leadership

control structure are in place over the and interpersonal communication skills;

transfer and/or investment of funds on keen attention to details, financial


23

new products. aptitude and familiarity with electronic


 Responsible in financial analysis in
spread sheets.
such areas as forecasting, budgeting,

engaging in cost reduction analysis by

periodically reviewing operational

performance.
 Responsible in benchmarking the

salary scheme of personnel across the

confection industry and recommending

incentive programs as needed.

ADMIN & OPERATIONS MANAGER


Duties & Responsibilities *Minimum Qualification
 Responsible in managing the day-to-  Must be a graduate of any 4-year

day operation of BakerBros Business or Management course.


 Excellent in spoken and written English.
production.  Preferably with managerial experience of
 Responsible in recruiting, selecting,
at least 2 years in the same industry.
orienting, training, coaching,  Key skills: Customer service, leadership

counselling and disciplining rank and and interpersonal communication skills;

file personnel. office management skills and general

understanding of the food and restaurant

industry
24

MARKETING MANAGER
Duties & Responsibilities *Minimum Qualification
 Responsible in identifying new and  Must be a graduate of any 4-year

future markets for BakerBros Business or Management course.


 Responsible in conceptualizing and  Excellent in spoken and written English.
 Preferably with managerial experience of
rollout of marketing campaigns
 Responsible in pricing strategy at least 2 years in the same industry.
 Key skills: Customer service, leadership
development to ensure that the
and interpersonal communication skills;
products are strategically priced to
office management skills and general
be on top of the competition.
 Responsible in developing customer understanding of the food and restaurant

feedback mechanism tool and industry

submitting a comprehensive

customer feedback report to

management for necessary action.


25

PASTRY CHEF
Duties & Responsibilities Minimum Qualification
 Responsible in creating delicious  Senior high school diploma at minimum;

dessert masterpiece. certificate, associate's degree and


 Work with Marketing and R&D in
apprenticeship programs
conceptualizing new confection  At least 5 years related experience.
 Must be able to exhibit skills during a
products
 Responsible in performing food demo.
 Key skills: Customer service, leadership
administrative duties such as
and interpersonal communication skills;
preparing budgets and ordering
kitchen management skills and general
pastry supplies.
understanding of the food and restaurant

industry

PRODUCTION STAFF
26

Duties & Responsibilities Minimum Qualification

 Responsible in planning, organizing  Senior high school diploma at minimum;

and controlling production to ensure certificate, associate's degree and

that goods are produced efficiently, on apprenticeship programs.


 At least 2 years related experience.
time and within budget.  Must be able to exhibit skills during a food
 In charge in preparing and presenting
demo.
food quickly and efficiently.  Key skills: Customer service, leadership
 Responsible in ensuring that the
and interpersonal communication skills;
kitchen is kept clean, hygienic and tidy
kitchen management skills and general
at all times.
understanding of the food and restaurant

industry
27

RESTAURANT STAFF

Duties & Responsibilities Minimum Qualification

 Responsible in providing courteous  Senior high school diploma at minimum;

and efficient food and beverage service certificate, associate's degree and

to customers. apprenticeship programs.


 In charge in welcoming customers,  At least 2 years related experience.
 Must be able to exhibit skills during a
presenting menu, take orders,
practical demo.
recommend appropriate options, bill

and collect payment as necessary.


 Responsible in performing general

housekeeping and cleaning duties.


28

Proposed Salary and Benefits

Table 6: Net Pay

Job Title Required Average SSS Philhealth Pagibig Gross Pay


Personnel Monthly Contribution Contribution Contributio

n
Salary
General 1 P35,000 P581.30 P437.50 P100 P33,881.20

Manager
R&D 1 P30,000 P581.30 P375 P100 P28,943.70

Manager
Finance 1 P30,000 P581.30 P375 P100 P28,943.70

Manager
Marketing 1 P30,000 P581.30 P375 P100 P28,943.70

Manager
Operation & 1 P30,000 P581.30 P375 P100 P28,943.70

Admin Manager
Office Staff 4 P15,000 P545.00 P187.50 P100 P14,167.50
Pastry Chef 1 P20,000 P581.30 P250 P100 P19,068.70
Assistant Chef 1 P17,000 P581.30 P212.50 P100 P16,106.20
Production Staff 3 P15,000 P545.00 P187.50 P100 P14,167.50
Restaurant Staff 6 P14,000 P508.70 P175 P100 P13,216.30
Security 2 P12,766 P472.30 P150 P100 P12,043.70

Personnel
Company 1 P13,000 P472.30 P162.50 P100 P12,265.20

Driver
The salary structure of BakerBros was based on the industry standard of high-end

restaurants. The salary noted for Management Personnel are separate from the profit that

will be equally divided among investors. It is only appropriate that the investors get a

salary for working as a management personnel at BakerBros. This process of identifying

the salary of each personnel, management level or otherwise, ensures that the financial

structure of the company is reasonable.


29

During the first few months of operation, the investors may opt to suspend their

salary by issuing and affixing their signature in a Management Order.

Aside from their monthly salary and overtime pay, the employees are also entitled to 13 th

month pay as mandated by law and an additional yearly cash incentive, which will be

determined by the top management.

Figure 3: Administrative (Hiring Process)


30

Forms
1) 8 hours. At BakerBros, all overtime rendered will be subject to prior approval by

the Leave Form – this form is used to document and monitor Leave Requests made

by the employees.
2) Over Time Form – this form is used to file for overtime or work hours in excess of

the regular Operations and Admin Manager.


3) Time Card – is a very important time keeping tool to monitor the availability and

timeliness of staff. To ensure accuracy and data integrity, BakerBros will use

Biometric System to record the time In and Out of all personnel. Management

personnel will enjoy flexi-hours but must render at least 8 hours per day. While,

Pastry Chef and rank and file personnel will have a grace period of 15-minutes.
4) Reimbursement Form – a form to be used by BakerBros in compensating someone

for an out-of-pocket expense by giving them an amount of money equal to what

was spent.
5) Invoice Form – The invoice form is commercial document issued to be issued by

BakerBros to a buyer, relating to a sale transaction and indicating the products,

quantities, and agreed prices for BakerBros products and services. Payment terms

are also usually stated on the invoice


6) Purchase Order Form – this form is used to monitor and control purchases. Proper

documentation of PO will be a great help to accurately set a Daily Petty Cash

Fund. At BakerBros, big purchases require endorsement by the Operations and

Admin Manager to the Finance Manager.

CHAPTER III

MARKETING STUDY
31

Marketing Study was conducted in order perceive, understand, stimulate and

satisfy the needs, wants and expectations of the ‘would be’ customers of BakerBros. This

chapter will detail the following, target market vis-à-vis the various market segments

present in the area, analysis of the demand and supply of BakerBros products, general

marketing practices versus proposed marketing programs of BakerBros and projected

sales.

General Market Description

Geographically, the location of the proposed business is in the heart of Quezon

City, a highly-dense urban area. However, the proponents are not only targeting customers

from the immediate vicinity of the confection store. As mentioned, BakerBros products

will be offered and made accessible through the use of e-store in order to capture a much a

bigger market. Likewise, part of the plan of BakerBros is to be the supplier of confection

products of hotel chains and high-end restaurants. With the intensive product development

of ‘sugar-free’ confection products, the proponents are also aiming for the endorsement

and approval from the health sector, including fitness gurus.

Demographically, BakerBros will not limit its market based on the usual market

segmentation of age, marital status, gender, religion and occupation. Never the less, the

proponents of this project were able to establish that income and lifestyle can determine

their immediate market.

Market Segmentation
32

There is no specific way to segment a market. Even big companies use different

segmentation variables and approach to find the best way to identify their market.
33

Table 6: Common Bases of Market Segmentation

Similarly, instead of just focusing on a particular method or approach (usually by

identifying the age bracket of would-be market), BakerBros utilizes the different aspects
34

in market segmentation to have a clearer understanding of the market and essentially to be

able to ensure that the marketing and positioning strategies will be to advantage of

BakerBros.

Table 7: BakerBros Market Segment

Demand

There are no existing studies documented to establish the general demand for

confection products in general or in the immediate vicinity of BakerBros. The market is

expected to grow from mere store visits to e-store purchase. In line with this, store

personnel will be kept to a minimum, while production staff is expected to grow.

The projections used in the table below were derived from the analysis
2 of the

annual report of competitors.


35

Table 8: BakerBros Daily Demand Per Product

To get the Demand Per Product, the average daily sales of the competitors were

used. Please note that a mark down of 20% was pegged since the company is not yet

expected to be as popular as the competitors in its first few months of operation.

Formula:

Demand Per Product = Average Daily Sales Per Product of Competitors – 20%

The demand is expected to increase annually by 10% as a result of the marketing

initiatives of the company. The 10% mark-up projected is conservative considering the

30%++ attained by the top 2 players in the market (refer to Table 10).

Table 9: BakerBros Demand Projection Per Product


2
2
36

Supply

Location of biggest suppliers of confection ingredients can be easily tapped.

Specialty stores like Chocolate Lovers (P. Tuazon, QC) and All About Baking (Quezon

Avenue, QC) offer wholesale high-end confection ingredients. Purchase of ingredients can

be done at their respective stores or they can be ordered online and then picked up later.

For companies with established credit lines, the items can be delivered free-of-charge. In

addition, long-time local stores in Quiapo, such as Killion and New Sin Kian Heng can

also address bulk orders. In fact, Goldilocks and Red Ribbon order their supplies from

New Sin Kian Heng. In line with this, it is safe to say that because there are established

suppliers of raw materials and ingredients, it would be easy for BakerBros to supply even

the increasing demand of its customers. To establish the target number of products or

supply that the BakerBros production area should meet, the Admin and Operations group,

together with the Finance Department will monitor and rigorously document the daily

sales of BakerBros to be able to determine which product should be produced more and in

what quantity should the production for each product be maintained. In a nutshell, the

proponents used the demand data presented in the previous page to determine if the initial
2
manpower of BakerBros can produce the projected requirement. Under the Staff Count,

the specific personnel to handle the preparation of a particular product has been identified.
37

Whereas, under Staff Capacity, the minimum number a particular staff can

prepare/produce has been based from an interview with Swirls & Twirls’ Pastry Chef (QC)

and the Restaurant Manager of Aria, Cucina Italiana (BGC).

Table 10: Demand vs Supply

Demand – Supply Analysis

Figure 4: Supply and Demand Analysis


38

*Figures are presented in pieces

Based on the chart presented, the initial manpower of BakerBros can produce

almost twice the volume of the projected demand. As mentioned previously, manpower

requirement of Production Staff shall increase depending on the actual demand of products

in the future.

 Projected Sales – Per Product

The figure below presents the cumulative sales of Red Ribbon, Goldilocks and

Starbucks in all of their store outlets. These figures were used to compute for the average
2
sales per outlet and the average increase in sales. The data were used to project the store

sales of BakerBros.

Table 11: BakerBros Projected Sales Report on its 1st Year of Operation
39

Table 12: Average Sales Per Product

Note that in the assumption of sales, the projected 2018 sale of BakerBros is lower

by 12 to 14% from its top 2 competitors. However, as a result of the marketing strategies

of the company, the annual sale is expected to increase conservatively by 10% annually.

Competitive Position

 Unique Selling Proposition

The following aspects separate BakerBros from its competitors:

o Widest selection of cakes and confectionary product


o Premium service and unique dining experience
o Confectionary products can be ordered on-line
 Patent / Trademark Protection

For the purpose of securing the intellectual property of BakerBros, the government

agencies will be tapped:

o Security & Exchange Commission – company name (BakerBros)


40

o Intellectual Property Office of the Philippines (Trademark) – company logo

and catch phrase or tagline


o Intellectual Property Office of the Philippines (Patent) – BakerBros unique

recipes
 Understanding the Market
To be able to have a clearer picture of the future demands of BakerBros, the proponents

gathered information from its biggest competitors, namely Red Ribbon and Goldilocks.

Table 13: Competitors’ Sales Report

www.jolibee.com.ph/downloads/repub/2014/annual_2014.pdf

www.goldilocks.com.ph/business-opportunities

The source of the annual competitor’s reports even provided the details pertaining

to the price range of the popular products as well as the average number of items sold per

product.

Table 14: Comparative Average Daily Sales of Competitors


41

The data in the tables presented above have been the key information used by the

proponents in projecting the future demand, capacity requirement and sales projection of

BakerBros.

Marketing Strategy

 General Marketing Practices

Well-known bakeshops have print, TV and radio advertisements that are carefully

spread out the entire year. But in terms of frequency and volume, most ads are being aired

or printed during the holiday season.

Local bakery doesn’t usually engage in marketing activity. While, restaurants normally

have leaflets, well-budgeted signage, tarpaulins and posters as part of their opening

practice.

 General Marketing Programs

As part of its marketing strategy, the store of BakerBros will be specially designed

to capture middle to high-end market. The dining restaurant will have a modern design

outside, yet the interior will have a Victorian touch. Dinners can enjoy the following:

 Free newspaper and magazines


 Free wifi
 Free brewed coffee in the 1st 2-hours of daily operation
42

In its 1st year of operation, part of the marketing initiatives of the company is to

ensure that BakerBros’ will have strong presence in popular social media sites such as

Facebook and Twitter. These are avenues for free and paid advertising. On its succeeding

year and as the company grows, BakerBros can also launch a tri-media campaign.

To increase the visibility and popularity of BakerBros, the company will

participate in trade fairs, cooking shows and call center job fairs.

The company will also invite Confectionery Chef and trusted food bloggers to

visit, dine for free and write food reviews for BakerBros.

Posters and tarpaulins can also be strategically placed near the places that the

target market are usually frequenting and if possible, in their work places.

BakerBros 5-year plan is presented below:

Figure 5: BakerBros 5-Year Plan

Year 1 - Product Development


43

In its store operation, BakerBros will offer and sell regular products with above

standard product presentation. On the management side, the first year of BakerBros will

be focused on Product Development, which includes the following activities:

 Create and develop confection products that will be uniquely BakerBros


 Conduct food tasting and assessment/survey on products developed
 Develop pricing scheme for retail and bulk orders
 Liaise with reliable packaging company for high-quality packaging materials that

can endure and safe keep the BakerBros confection even on a long travel.

Please note however that BakerBros will continue to develop and innovate products to
3
remain competitive. Product Development will be spearheaded by Research and

Development and Pastry Chef. Since the Pastry Chef will be involved in a highly critical

activity

Year 2 – Branding

It’s expected that in BakerBros second year of operation, most of the products have

already been developed. In this case, the company can focus on Branding, which will be

spearheaded by the Research and Development and the Marketing Manager. The Branding

activities will include but are not limited to the following:

 Develop Branding strategies that is anchored not solely in ‘selling a product’ but

more so in ‘creating a lasting customer experience’.


 Although upon hiring, all staff will undergo a rigid Customer Service Training,

part of the Branding activity will still include development of company policies

and customer service strategies geared on creating an optimum customer

experience.
 Acquiring customer feedback in a form of a survey.
44

 Work hand-in-hand with Marketing in developing schemes to invite in-store

purchase to increase customer awareness of the BakerBros brand of products and

make the customer experience optimum customer service.


 Launch of BakerBros website which allows customer data and feedback to be

collected for analysis


3
Year 3 – Tri Media Campaign & Customer Acquisition

At the onset of its operation, BakerBros will be active in social media and will use

free advertising on Facebook, Twitter and other networking site to promote BakerBros.

However, on its third year of operation, the company is expected to recoup from its initial

investment and have the financial capability to launch a tri-media campaign. The

following activities will be led by the Marketing group:

 Participation in trade fairs and cooking shows.


 Partner with Call Center companies during job fairs where BakerBros can

showcase and give free samplers of its confection products.


 Engagement in paid advertising --- facebook, twitter, food magazines, movie

theatre and TV ads


 As part of its Customer Acquisition initiatives, the company may launch a

Customer Loyalty Program, Discount Schemes and giving away merchandising

items to loyal customers.

4th Year – BakerBros E-Store


45

By this time, the company should focus on creating an efficient e-store business.

This part of the business plan is geared towards embracing and serving a much larger

market. The activities included in this leg are:

 Partnering with a reliable freight and forwarding companies to handle the delivery

of BakerBros products
 Development of e-store guidelines
 Creating an efficient and customer friendly e-store with the help of a reliable

vendor
 Inclusion of the e-store in the company’s website
 Open Visa, Mastercard and Paypal accounts for on-line banking

5th Year – BakerBros International

In this leg the company has already established itself in terms of its e-store and

delivery services. As such, the company can already go international, which means:

 Tapping the OFWs. They may place their order via e-store and pay thru on-line

banking for BakerBros confection products that will be delivered to their friends 3

and families here in the country.


 Launching a marketing campaign targeting OFWs via international SMS,

billboards along airports and POEA, social media sites and TV ads for TFC and

Pinoy TV.

Marketing Mix

Figure 6: The Marketing Mix


46

Competitor Analysis
Table 15: Competitor
47

Analysis

Market Share

Figure 6: Market share


48

The Market Share was derived from the Competitor Analysis performed by the

proponents. According to the report mentioned in Goldilocks Annual Stockholders Report,

the Cake industry generates a total of P64 million in average annual store sales. The pie

chart presented was the result of the following given:

Pricing Strategy
49

The business owner will first calculate the cost of production based on the

ingredients used then will use a straight mark-up computation, which is common to all

cakes and pastry shop, by adding 150% to 200% mark up. After which, the amount will be

compared with the prices of similar products being offered by competitors. Adjustments

will be made to make sure that BakerBros prices will stay competitive.

Table 16: Pricing


50

CHAPTER IV
4
PRODUCTION AND TECHNICAL STUDY

This study discusses about the process of production and the activities of the

business. It also identifies the machineries and equipment used in production and other

aspects pertaining to bringing the raw materials into a finished product ready for selling.

The layout of the production area is also presented for the purpose of further identifying

the business operation. Likewise, flowcharts of the various production processes are also

included in this document. The list of machineries, tools and equipment are enumerated

with the corresponding cost.

Location

The BakerBros office and production site will be co-located for easy monitoring. This is

deemed to be the best option for start-up business since all of the owners will be able to

perform their duties and responsibilities, as well as monitor the daily operation of the store

and the production area. More importantly, most of the owners also live nearby.

The shop will have a sizeable posh and comfortable dining facility to accommodate

customers; it will also house a pick-up area for bulk orders. The location will also have a

showroom to highlight the various confection products of BakerBros. The location of

BakerBros was chosen because of its accessibility to its target market. Likewise, the

customers will not be inconvenienced since the road leading to the shop is not congested

by traffic and there are a lot of parking areas in the vicinity.

Considerations made in choosing the location include:

 Stability of electric and water supply


51

 Accessibility to suppliers (from ingredients, packaging to furniture)


 Availability of strong internet access
 Traffic situation
 Accessibility to the target market

Table 17: Location Details

101 Ground Floor, Don Antonio Sports Center,


Address
Barangay Holy Spirit, Quezon City
Landmark Beside 7-11 and BDO
Rent per month Php 35,000
Floor Area 750 square foot (1st Flr) & 500 square foot (2nd Flr)
Terms and Condition 3 months deposit with 1 year renewable standard contract

Figure 7: Location Map

Figure 8: Proposed Layout


52

Product
53

Being a confectionery store, BakerBros product offerings are concentrated on

cakes, cupcakes, pastries, biscuits, bread and sugar-free confections. All products will be

prepared and/or baked directly from the production area of BakerBros.

Aside from offering on-line store where customers can place and pay for their

orders, the BakerBros shop will also offer a casual dining

Below are the initial offerings of BakerBros:

 Cakes  Bars & Squares  Icecream

 Muffin  Cupcakes  Frappes

 Shortbread  Cookies  Pastry

 Pies & Tarts  Bread


48

Muffins

o Pumpkin Cream Cheese Muffin

A delicious combination of a 4
flavourful pumpkin muffin with a
cream cheese filling

o Mocha Muffin

Two favorite flavors in one


yummy muffin! These
multitasking Double Chocolate-
Mocha Muffins include your daily
dose of chocolate—plus the
added espresso leaves no need
for a coffee run.

o Chocolate Chip Muffin

Chocolate Chip Muffins adds


chocolate chips to a moist and
flavourful vanilla scented batter.
The final touch is a sprinkling of
cinnamon sugar.
49

Pies and Tarts

o Apple Crisp

Sweet cinnamon scented apples


held in buttery crispy oatmeal
cup and crunchy sweet topping.

o Fruit Tart

This classic French Fruit Tart has


a sweet pastry crust that is filled
with a rich and creamy pastry
cream and topped with seasonal
fresh fruit.

o Boston Crème Pie

Enjoy this rich traditional dessert


made with a wonderful
combination of cake, cream and
chocolate glaze.

o No Bake Cheesecake

Get an ideal treat for summer


days, holidays & more with no-
bake cheesecakes!
50

o No Bake Blueberry Cheesecake

Rich, velvety cheesecake


combined with plump, ultra sweet
blueberries makes for one of the
most delectable desserts you'll
ever eat. 4

Bars and Squares

o Date Squares

Date Squares are a delicious


combination of pureed dates
sandwiched between layers of
buttery oatmeal crust.

o Nanaimo Bars

This layered bar is originally from


Nanaimo (pronounced nah-
NIGH-moe), a city on Vancouver
Island in British Columbia.
51

o Brownies

Delicious, classic chocolate


fudge brownies complete with a
healthy dose of pecans.

o Lemon Bars

With the tanginess of lemons and


a sweet angel-dusting of
powdered sugar, these must-
bake lemon bars take your
dessert from good to best!

Shortbread Cookies

o Scottish Shortbread

Scottish Shortbreads makes a


very fine Christmas cookie with
its rich buttery flavor and tender
yet crumbly texture.
52

o Chocolate Shortbread

The combination of a buttery rich


round of Chocolate Shortbread
covered with a chocolate glaze
and pieces of crunchy nuts is
hard to resist.

o Alfajores

Just imagine two buttery crisp


shortbread cookies sandwiched
together with a sticky and gooey
caramel-like filling (Dulce de
Leche).

o Raspberry Shortbread

Two buttery sweet shortbreads


that are filled with white
chocolate and raspberry jam.
They look very festive and make
an ideal cookie during the
Christmas season or for
Valentine's Day with their white
coating of powdered sugar and
the red raspberry jam poking
through the cut out.
53

o Shortbread Tarts with Cream Filling

Make your next celebration


memorable with these colorful
and tasty tarts

Bread, Cakes & Cupcakes

o Cream Cheese Filled Banana Bread

Something about the sweet


cream cheese filling and crunchy
cinnamon sugar topping puts the
classic banana bread up to rock
star status!

o Croissant Club Sandwich

Croissant club sandwiches


layered with avocado, bacon,
Swiss cheese, and chicken are
to-die-for versions of the
traditional club sandwich
54

o French Baguette

Croissant club sandwiches


layered with avocado, bacon,
Swiss cheese, and chicken are
to-die-for versions of the
traditional club sandwich

o Doughnuts

We hand-craft our doughnuts


fresh from scratch daily using
real, expensive ingredients and
no preservatives.

o Soft Pretzels

Peanut butter is whipped into the basic


recipe to come up with moist banana
bread with a hint of nutty flavor. A small
amount of chopped roasted peanuts offers
delightfully surprising crunch. Customers
can enjoy this sumptuous delight in loaf
and cupcake form.
55

o Blueberry with Lemon Glaze (Loaf Bread – P250.00 / Cupcakes – P70.00)

This delicious bread is stuffed with


 blueberries, and deliciously
flavored with vanilla and lemon
zest.

o German Bauernbrot (Loaf Bread – P120.00 / Cupcakes – P40.00)

Bauernbrot or Farmer’s Bread


uses 100% whole grains, pumpkin,
sunflower and sesame seeds for a
dense, moist loaf.

Unique Feature/Service of BakerBros

The quality of the product is an integral part of any business. For that reason,

BakerBros will use multiple methods to ensure product quality. All confectionary products

will be made from scratch with fresh ingredients. The production team will ensure that

baking procedures will be followed and any expired products will be disposed of properly.

In terms of cleanliness and sanitation, the production team will be required to observe

proper dress code to and they will keep the production area sanitized and orderly at all

times.
56

Innovations will also be part of BakerBros offerings. One way in which this will be

achieved is by creating new flavors, designs and frostings. Each month, BakerBros will 5

present new offerings. This will allow the business to assess and test saleability of new

products and have an understanding of what the customer wants. The Executive Chef and

the Research Department will be in charge in determining the special product of the

month.

 Machinery
As a start-up business, BakerBros invested in kitchen equipment and machineries

that are heavy-duty and are considered to be of ‘industrial quality’. The equipment

listed on the next page might be pricey but since they are durable. The lifespan of

these items on the average will last for 5 to 10 years.

Table 18: Office Equipment & Furniture

UNIT TOTAL
ITEM USES QUANTITY
COST PRICE
57

Desktop For encoding of 9 P 28,888 P 259,992

Computer documents and sales

reports

For 5 managers and 4

office staff

Telephone For placing and 2 P 3,000 / P 6,000 /

receiving calls month month

Printer, Scanner, For printing, faxing and 1 P 22,000 P 22,000

Fax, Photocopier scanning of documents

Paper Shredder For shredding 1 P 1,200 P 1,200

confidential documents

Office Table & For the General 1 P 23,000 P 23,000

Desk Manager

Office Cubicles For the managers & 2 (set of 4) P 75,000 P 75,000


58

staff

Conference Table For holding meetings 1 P 44,000 P 44,000

and conferences
59

Table 19: Kitchen Equipment and Machineries

UNIT TOTAL
ITEM USES QUANTITY
COST PRICE

Two Deck For baking cakes, 2 P 56,000 P 112,000

Oven cupcakes and bread.

Pastry Sheeter For maintaining and

keeping the sizes of 1 P 36,000 P 36,000

pastry and pasta dough

consistent
High Speed

Mixer For mixing dough and

batter 2 P 42,000 P 84,000

Stainless Steel 3 P 14,000 P 42,000

Work Table Working table

Electric Fryer 1 P 22,000 P 22,000

For frying doughnuts,


60

fries, ice cream etc

Ice Cream

Machine

For making gelatos 1 P 65,000 P 65,000

Freezers

3-door cold storage 1 P 294,000 P 294,000

ITEM USES QUANTITY UNIT TOTAL

COST PRICE
Hand Mixer For mixing small 3

portions of batter and P 800 P 2,400

dough
Dishwasher For washing baking 1 P 114,000 P 114,000

pans and other cooking

and baking tools

Moulds Various non-stick P 30,000 P 30,000

molding and baking

pans
61

Tools Various utensils, cutter

and shapers P 20,000 P 20,000

China Wares Various plates in

different sizes for

displaying and serving P 120,000 P 120,000

cakes and other

products
Silver Wares

Various silver wares P 50,000 P 50,000

and serving spoon

Glass Wares Various glass wares for P 50,000 P 50,000

serving drinks and

concoctions

Mugs & Tall Various mugs and tall

Glasses glasses for serving cold P 30,000 P 30,000

and hot coffee and

chocolate drinks

Table 20: Restaurant Furniture and Equipment

ITEM USES QUANTITY UNIT TOTAL


62

COST PRICE
P 64,000

(including

Point of Sales For recoding of daily 1 P 64,000 P2,500

sales monthly

maintenance

fee)

Ice Cream For showcasing gelato

Showcase products 1 P 43,000 P 43,000

Cold Display For showcasing 1 P 48,000 P 48,000

various products

Hot Display For showcasing 1 P 32,000 P 32,000

various products

Display Counter For showcasing

various products 2 P 31,000 P 62,000


63

Chairs and Tables For dining at the 12 P 30,000 P 360,000

restaurant

CCTV To aid in the security 1 P 31,614 P 31,614

of the facility,

personnel and

customers

Package = P15,614

4 Addl. Camera =

P4,000 each

Proper Handling of Machines and Equipment

To keep the employees and customers safe, all personnel of BakerBros are

encouraged to practice safety precaution for handling heavy equipment and materials.

 Only trained personnel will be allowed to use and handle heavy equipment..
 Implement operational and safety guidelines for machinery and equipment.
 Proper tagging or pulling out of defective equipment.
64

Manufacturing / Production Process

Each product has a unique preparation and baking procedure. However, the most

basic ingredients and general procedure for all products are shown in the figures below:

Figure 9: Basic Ingredients and Common Procedures

5
65

Figure 10: Production Flow

To be able to establish control in the restaurant area, the following procedure has been

established:
66

Figure 11: Service Flow

Plant Size and Production Layout


67

Initially, all products of BakerBros shall be produced at 101 Ground Floor, Don

Antonio Sports Center, Barangay Holy Spirit, Quezon City.

 Store Layout

Then production area is tactically designed to support the smooth operation of

BakerBros. Store area will house all the finished products of the shop. This will also be

the restaurant area where customers may dine and enjoy the products and the posh
68

ambiance. The Office area will house the executive and administrative personnel of the

company. While, the biggest area will be allotted for the production of all the products of

BakerBros.

 Structure

The location doesn’t require a full scale construction as it is already ready for

occupancy. Minimal cost will be allotted for the renovation of the store to fit into the

requirement of running the operation smoothly.

BakerBros business location was also selected for its expansion opportunity. The

pantry can be transferred to the 2nd floor, while the restaurant/store can be expanded to be

able to accommodate its growing customer base.


69

Figure 11: Floor Plan

*The floor area is 750 square foot (1st floor) and 500 square foot (2nd floor).

Raw Materials (Ingredients)

BakerBros will offer a variety of confectionary products that use a number of high quality

ingredients. Although some of the products to be offered by BakerBros are foreign-

sounding and would use imported ingredients, the suppliers listed above have these

ingredients. This will ensure availability of the ingredients throughout the year.

Estimated monthly consumption of the basic ingredients is listed below:


70

Table 21: Raw Materials

Items Quantity Unit Cost Amount

All purpose Flour 2 sacks Php 800.00 Php 1,600.00

High Gluten Flour 1 sack 1,200.00 1,200.00

Eggs 20 trays 120.00 2,400.00

Baking Powder 10 kls 45.00 450.00

Butter 50 40.00 2,000.00

Sugar 2 sacks 3,000.00 6,000.00

Creamcheese 5 lbs 240.00 1,200.00

Yeast 2 kls 300.00 600.00

Baking Soda 5 kls 45.00 225.00

Chocolate 80 lbs 80.00 6,400.00


71

Items Quantity Unit Cost Amount


Milk 6 gallons 240.00 1.440.00
Apples 1 crate 250.00 250.00
Blueberries 50 cans 120.00 6,000.00
Cranberries 50 cans 120.00 6,000.00
Lemons 1 crate 350.00 350.00
Nuts 5 lbs 600.00 3,000.00
Peach 50 cans 75.00 3,750.00
Strawberries 50 cans 80.00 4,000.00
Vanilla 2 gallons 120.00 120.00
Honey 1 gallon 500.00 500.00

Key Suppliers

The location of plant and the restaurant is strategically located near its major suppliers,

namely:

 Killion, Quiapo Manila


 All About Baking, Welcome Rotonda, Quezon City
 Chocolate Lovers, Tuazon, Quezon City
72

The great thing about the chosen suppliers is that they accept online orders and also offer

delivery service for bulk orders. As verified with them, all key ingredients required by

BakerBros are available all throughout the year since these suppliers are major suppliers

too by other big cake stores, namely Goldilocks and Red Ribbon.
62
Packaging Materials

Packaging plays an important role in BakerBros branding strategy. The packaging to be

used was chosen for the following factors:

 Materials are locally available


 Eco-friendly (biodegradable)
 Simple yet classy design

Please refer in the Appendices for the proposed packaging.

These special customized packaging will be produced and supplied by RM Boxes on a

consignment basis. RM Boxes is located at Sta, Mesa, Manila


73

Figure 12: Packaging Supplier

Utilities

To sustain the operation of BakerBros, the following utilities must be available:

 Electricity – must see to see to it that the electric cables, fuse box, as well as the

generator system are heavy duty and can support the high voltage operational

requirement of the business.


 Water
 Internet
 Telephone lines
 CCTV
 Cable service
 Gas

Waste Disposal

Just like in any restaurant or bakery business, proper sanitation is very important. To

ensure safety of the ingredients from pests and rodents, regular fogging and pest control
74

activity will be observed. In terms of waste disposal, proper segregation will be strictly

implemented according to waste type:


1

 Glass
 Paper
 Plastic
 Food

waste

(Bio)
 Cans &

Metals
 Non-

Biodegra

dable
73

CHAPTER V 6 59

FINANCIAL STUDY

This chapter discusses the probability of success with respect to the soundness of

the financial aspect of the business plan. To determine the financial stability of

BakerBros, a five year plan is presented below which includes the sources of funds,

balance sheet, income and loss statement and cost of sales.

PROJECT COST
74

SOURCE OF FUNDING
6
OWNERS CAPITAL INVESTMENT % CONTRIBUTION

(in Php)
Jonvi Desuasido P 1,500,000 20%
Karl Royce Escoto P 1,500,000 20%
Justin Patrick Floria P 1,500,000 20%
Allan Loreto P 1,500,000 20%
Joshua Agasi Samson P 1,500,000 20%
TOTAL P 7,500,000 100%

FINANCIAL ASSUMPTIONS

BakerBros will operate based on the following financial assumptions:

 All financial data were presented using PESO as the currency denomination.
 Projection of 5-year annual sales is presented with 10% increase in sales revenue
 Cost of sales increased by 5% per year
 Rental is pegged at P35,000 per month with a 3-month deposit
 Income Tax Rate is 30%
 Depreciation expense is computed in a straight line basis with the estimated useful

life of:
o Equipment = 7 years
o Tools and Utensils = 5 years

66
Income Statement

For the Period Ending 2018, 2019 and 2020


75
76

67
Statement of Cash Flow

For the Period Ended 2018, 2019 and 2020


77

Balance Sheet

For the Period Ended 2018, 2019 and 2020


78

Where:
CA = Current Assets
CL = Current Liabilities

 Acid Test Ratio


79

Where:
I = Inventory
A. Profitability
 Total Assets Turnover

Where: *S = Sales *TA = Total Assets

 Return on Investment (ROI)


80

Where:
NPAT = Net Profit After Taxes
TI = Total Investment

CHAPTER VI

SOCIO- ECONOMIC STUDY

This chapter discusses the socio-economic benefits of the proposed business.

Although BakerBros plans to start small in terms of capital investment, the proponents

are aware of the business’ impact on the socio-economic development of the community

and the country, as a whole.

Benefits to the Government and Economy


81

This business is expected to give significant contribution to the government in the

forms of taxes and government fees. Likewise, being a law abiding company, BakerBros

will also subject its employees to standard government taxes. Bakerbors will contribute

approximately an average of 800 thousand pesos per year in Income Tax.

Benefits to the Community

The business is expected to hire 18 employees. And, as the business grows, the

influx of customers to the BakerBros shop will also drive infrastructure improvement, at

the very least, in the immediate vicinity of the business.

To the local business sectors, BakerBros is committed to import ingredient only if

it is not locally available. BakerBros is also committed in using alternative ingredients

that are locally produced.

Benefits to the Environment

As the company’s commitment to protecting the environment, BakerBros will

only transact with suppliers with the same business etiquette and values. Bakerbros will

see to it that all its processes and the products it will use and produce are all

environmental friendly.

Benefits to the Technology

Since BakerBros is a company that will utilize the power of internet for its online

store, the company can help provide the customers with worry-free and secured

purchasing option through digital means that will be secured by the leading financial
82

security software available in the market, furthermore the BakerBros will be focusing on

gradually improving the overall technology state of BakerBros by scouring the market

every year for new additions to our equipments.

APPENDICES

Schedule of Computation

Schedule 1 – SALES
83

Formula:

Sales Breakdown = Demand Projection x Price


7
Schedule 2 – COST OF SALES

Formula:

Cost of Sales = Cost of Actual Ingredients x Projected Demand


84

Schedule 3 – SALARIES AND WAGES

76
85

Schedule 4 – UTILITIES

*with 10% projected increase per year

*presented in PHP
86

Schedule 5 – PRE-OPERATING

Schedule 6 – PROPERTY, PLANT & EQUIPMENT AND ACCUMULATED

DEPRECIATION

*presented in PHP
87

Schedule 7 – DEPRECIATION

Schedule 8 – INCOME TAX EXPENSE & INCOME TAX PAYABLE


88

Pre-Operating Expense

EQUIPMENT, FURNITURE AND TOOLS


89

RESEARCH AND DEVELOPMENT – PRE OPERATING

MARRKETING AND PROMOTIONS – PRE OPERATING

Note:

 Leaflets will be inserted to telecommunication bills and newspaper


 Billboard to be paced along Commonwealth near the Technohub, Edsa Cubao,

Edsa Makati and BGC


 Billboard Will Only Be Placed For A Year Thus The Prepaid Rental Was Pegged

At 12 Months
 10 Directional Signages will be placed along Commonwealth to help customers

locate BakerBros
 Daily Facebook Ads will be placed with a budget of 1,000 per day equivalent to

3,000 subscribers who will see the ads.


 The Facebook daily ad to be covered by pre-operating expense will run for 6

months
90

Appendix A – Images

DISPOSAL SYSTEM

PACKAGING

8
91

Appendix A – Permits

Business Permit

Sanitary Permit
92
93

DTI
94

Appendix B- Contribution Schedules

SSS Contribution Table


95

Philhealth Contribution Table


96

Pagibig Contribution Table

Withholding Tax Table


97

Appendix C – Forms

Purchase Order Form

Invoice
98

Leave Request Form

Overtime Request Form

Reimbursement Form
99

BIBLIOGRAPHY

1. Internet Sources

www.jolibee.com.ph/downloads/repub/2014/annual_2014.pdf

www.goldilocks.com.ph/business-opportunities

https://www.philhealth.gov.ph/benefits/

http://www.pagibigfinancing.com/articles/2010/benefit-of-becoming-pag-

ibig-fund-members/

https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=ssbenefits

https://www.ecomparemo.com/info/heres-a-full-list-of-mandatory-benefits-

for-regular-employees-in-the-philippines/

2. Books
100

Jonvi Desuasido
#245 Ilang-Ilang St. Batasan Hills, Quezon City
#09983144688
desuasido123@gmail.com

Objectives:

I am seeking employment with a company where I can use my talents


and skills to grow and expand the company.

Personal Information:

Date of Birth: July 23, 1996 Place of Birth: Quezon City


Age: 20 Gender: Male
Mother: Veronica Deswasido Occupation: Housewife
Father: Dean Aleksi S. De Mesa Occupation: Head Supervisor
Religion: R. Catholic

Educational Attainment:

College Degree : Asian Institute of Computer Studies (Commonwealth


Branch)
Bachelor of Science in Entrepreneurship
S.Y. 2015-2017 (Present)

College Level : Asian Institute of Computer Studies (Commonwealth


Branch)
2-yr Associate in Business Information Management
S.Y. 2014-2015

Secondary Education: Batasan Hills National High School


S.Y. 2012-2013
Elementary School: San Diego Elementary School
S.Y 2008-2009
101

Experience:

OJT- National Kidney and Transplant Institute (NKTI)


 300 hours completed as a encoder
(December 2, 2014 – March 2, 2015 )

OJT- Maynilad
 180 hours completed as a encoder
(October 10, 2016 – November 16, 2016 )

Introduction to Call Centers


 April 25, 2015

Skills:

 Good Communication
 Computer Literate
 Can work flexible and Multi-tasking

Character Reference:

• Ysel Boniel Teacher 09425568240


• Darwin Cadiente Crew 09463571572
• Aileen Camba Employee 09091674582

Jonvi Desuasido
Applicant Signature
102

Karl Royce O. Escoto


Blk #5 Lot #5 doña isidora st., Quezon City
#09099694520
karl-royce17@yahoo.com

Objectives:

To apply my skills, experience and knowledge to a company that is my ability to


learn quickly, and my ability to work well with others and amity.

Personal Information:

Date of Birth: Feb 17, 1997 Place of Birth: Quezon City


Age: 19 Gender: Male
Mother: Jane Eyre O. Escoto Occupation: Exhibitor
Father: Rolando Escoto jr.
Religion:Catholic

Educational Attainment:

College Degree : Asian Institute of Computer Studies (Commonwealth


Branch)
Bachelor of Science in Entrepreneurship
S.Y. 2015-2017 (Present)

College Level : Asian Institute of Computer Studies (Commonwealth


Branch)
2-yr Associate in Business Information Management
S.Y. 2014-2015

Secondary Education: Ramon Magsaysay High School


S.Y. 2012-2013
Elementary School: Legarda Elementary School
S.Y 2008-2009
103

Experience:

OJT- National Kidney and Transplant Institute


 300 hours completed as an encoder
( December 2, 2014 – March 2, 2015 )

OJT- Maynilad
 180 hours completed as a encoder
(October 10, 2016 – November 16, 2016 )

Introduction to Call Centers


 April 25, 2015

Skills:

 Good Communication
 Computer Literate
 Can work flexible and Multi-tasking

Character Reference:

Mr. Alex Asia Cabales College Instructor AICS (+63) 09215504042

Leo Fready Alota College Instructor AICS (+63) 09102565773

Karl Royce O. Escoto


Applicant Signature
104

Justin Patrick G. Floria


justinpatrick.floria@yahoo.com
09173177649 / 505-7878

Objectives:
To be a part of a stable organization where I can hone my skills, contribute ideas and grow with
the company.

Personal Information:

Date of Birth: April 19, 1997 Place of Birth: Quezon City


Age: 19 Gender: Male
Mother: Sarah Jane Floria
Occupation:Advertising/Promotions Department Manager
Religion: Catholic

Educational Attainment:

College Degree : Asian Institute of Computer Studies (Commonwealth


Branch)
Bachelor of Science in Entrepreneurship
S.Y. 2015-2017 (Present)

College Level : Asian Institute of Computer Studies (Commonwealth


Branch)
2-yr Associate in Business Information Management
S.Y. 2014-2015

Secondary Education: St. Joseph’s College (Quezon City)


Graduate 2009 - 2013

Elementary School: St. Joseph’s College (Quezon City)


Graduate 2002 – 2009
105

Experience:

 OJT- Global Zenith (2014-2015) 300 hours completed as a encoder


 OJT-Jezreel Travel and Tours (2016-2017) 180 hours completed as
encoder

Skills:

 Basic knowledge in Microsoft Office applications such as Word, Excel and Powerpoint.
 Basic knowledge in drafting business correspondences and reports.

Character Reference:

Ms. Ma. Tita Ferrer Brgy. Captain – West Kamias, QC 434-1814


Mr. George Laigo Jr. .Assistant Manager – Advertising &
Promotions Department

Justin Patrick FLoria


Applicant Signature
106

Allan S. Loreto
#220 Don Faustino St. Don Antonio Hts. Diliman Quezon City
Mobile #: 0907289483

Objectives:

To join a reputed organization where I can utilize my 5 years of experience in


managing the major activities of the departments, leading the organization to
accomplish new heights and ensure that all goals are met.

Personal Information:

Date of Birth: April 18, 1990 Place of Birth: Quezon City


Age: 26 Gender: Male
Mother: Elsie Loreto
Father: Geronimo Loreto
Religion: R. Catholic

Educational Attainment:

College Degree : Asian Institute of Computer Studies


(Commonwealth Branch)
Bachelor of Science in Entrepreneurship
S.Y. 2015-2017 (Present)

College Level : Asian Institute of Computer Studies (Commonwealth


Branch)

Secondary Education: Marinduque National High School


S.Y 2004-2008

Elementary School: Sawi Elementary School


S.Y 1996-2003

Experience:
107

Rustans Supercenter’s Inc.


Shaw Blvd. Mandaluyong City
Sales Representatives

United Limsun Trading Corporations


18 Ave. P. Tuason Cubao Quezon City
Sales Associate

Phillipine Gadget and Accessories


West Ave. Quezon City
Sales Representatives

Wilcon Builder’s Depot


Balintawak Quezon City
Sales Associate

Skills:

 Good Communication
 Computer Literate
 Can work flexible and Multi-tasking

Character Reference:

Russel Casimiro Supervisor 09304552162


Jussel Millena Area Supervisor 09327272163

Allan S. Loreto
Applicant Signature
108

Samson, Joshua Agasi D.


#9 Bill St. Talanay Area C Batasan Hills, Q.C.
09755651401
samsonjoshua102014@gmail.com

Objectives:

To fully develop and optimally utilize my skills in Business Information Management,


specifically time keeping, book keeping, encoding, and visual basic for application
programming

Personal Information:

Date of Birth: June 5, 1997 Place of Birth: Mandaluyong City


Age: 20 Gender: Male
Mother:Ellen Samson Occupation: Service Associate
Father: Oliver Samson Occupation: Housewife
Religion: Catholic

Educational Attainment:

College Degree : Asian Institute of Computer Studies (Commonwealth


Branch)
Bachelor of Science in Entrepreneurship
S.Y. 2015-2017 (Present)

College Level : Asian Institute of Computer Studies (Commonwealth


Branch)
2-yr Associate in Business Information Management
S.Y. 2014-2015

Secondary Education: Batasan Hills National High School


S.Y. 2009-2013

Elementary School: Saint Anthony De Padua School


Senatorial Road, Batasan Hills
S.Y 2008-2009
109

Experience:

OJT- National Kidney and Transplant Institute (NKTI)


 300 hours completed as a encoder
(December 2, 2014 – March 2, 2015 )

Seminars/Training attended:

job induction july 7 to 12,2014 Ma’am, Annie

coping with college life, july14 to 19 2014 Sir leo alcaraz

career motivation august 11 to 16,2014 Sir celestino

National Kidney and


Transplant Institute, December 2, 2014
–april 6 2015 Sir amado a saul

NCIII Bookkeeping
TESDA Passer March 20, 201 ,Ma’am Marjorie De Vera

Millar Villasis Pangilinan


Law Office,November 25, 2016 to Jan 18 2017 Arveck Palmiery

Skills:

• Leadership communication skills


• Business leadership skills
• Technical and technological skills
• Organizational skills
• Project management skills

Character Reference:

Mr. Alex Asia Cabales College Instructor AICS (+63) 09215504042

Leo Fready Alota College Instructor AICS (+63) 09102565773

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