CHAPTER I: MANAGING ASPECT

Company Profile

Malunggay Delicate Company is a small type of food manufacturing and merchandising

company which produces delicacies and other food containing malunggay extracts. This is

founded by Rafael Vallejos, Annestlie Dela Pena, Aivy Valencia, Regine Del Rosario, Cee Jhei

Agra, Genelle Gerobin, Marsha Jurlano, Noralyn Lutero and Alma Reyes. The type of the

business is general partnership and the partners are also the managers of the company. Rafael

Vallejos as the manager, Anneslie Dela Pena as the Financial Supervisor, Aivy Valencia as the

Production Supervisor, Alma Reyes as the Marketing Supervisor and Genelle Gerobin as the

Purchasing Officer. On the other hand, Cee Jhei Agra, Marsha Jurlano, Noralyn Lutero and

Regine Del Rosario are as the staff. The business endows in food manufacturing and

merchandising industry and the first product line is “Malunngay Cookies”, other product line

descriptions with regards in delicacies and other food will be created as the business go big.

Company Vision, Mission, Values Statements

Mission:

To create and promote good-tasting, healthy, and in fine fettle delicacies using miracle

plant “Malunggay.”

Vision:

A delicate world and its holistic people.

1
Objectives:

The objectives of the Malunggay Delicate Company is to serve, innovate, manage,

develop, and promote product that will be essential for people’s health and well-being.

Core Values:

Creativity Optimism

Compassion Innovation

Values or Positioning Statement:

The proponents want to include a product in the market that is nutritional, tasty and

affordable by people. A food, particularly in delicacies like cookies, which will me be mixed up

with Malunggay (Moringa oleifera) extracts to make it contain more beneficial ingredients that

is suitable for daily necessities of any kind of consumers. It is favorable for these cookies will

help consumers to take energy from snack that can be eaten anytime; in work, in school, etc., as

malunggay is well known in comprising a lot of substantial nutrients.

Tagline: “Aim high, with Malunggay !!!”

2
Form of Ownership

Malunggay Delicate Company (MDC) will be a General Partnership for the proponents

are legible in meeting the requirements of establishing a partnership. Below is the list of partners

of MDC Company and the contributions of each proponent.

Name Nationality Address % Ownership Limited/General

Parter

Vallejos Rafael Filipino Caloocan City 40% General Partner

Dela Pena Filipino Caloocan City 30% General Partner

Annestlie

Valencia Aivy Filipino Quezon City 10% General Partner

Alma Reyes Filipino Quezon City 10% General Partner

Genelle Gerobin Filipino Quezon City 10% General Partner

Business Requirements and Permits

The following Business Requirements and Permits that MDC needed to operate are on
appendix page.

3
Project Schedule

The following are the project schedules of MDC Company, the timeline, resources and

plans for each project.

Project Conceptualization and Preparation for Project Feasibility Study from June 2018 –

August 2018

In this phase, business concepts and ideas will be planned and generated; from the

ingredients of the product up until to its selling. Then, MDC will research on the business

concepts’ capability to succeed and be patronized by market. The company will focus first in

producing delicacy cookie, as it is the first product line the proponents want to do so. Gathering

of essential information will be done such as Market Analysis, Strategies, Industry Analysis,

Situational Analysis, Product Capacity, Technical Needs, etc.; all the needed data will be

brainstormed by the proponents before proceeding to next steps.

Release of Finances from the Proponents and Ordering of Machines and Equipment from

September 2018 – October 2018

Once the project is approved, funding the first parts of operation is the first thing to do.

Proponents’ capital contribution will start. After contributing, planned ideas for the machines and

equipment will be placed and ordered.

4
 Legal Registration, License and Arrangement of Operations on November 2018

MDC will look for good locations where the Business can operate. Renting is the process

of arranging the business in the market, since it’s just a starting business and Capital

Contribution wouldn’t be that big to buy its own place. It will be put up accessing the entire near

possible target market where potential demands are big. This could be the SM Fairview, in

Quezon City, Fairview and a food cart near school like STI College Fairview. In addition,

processing of business permits will be finished in this period, this will be necessary to be able to

operate the business legally.

Release of Finances from the Proponents for the Buying of Raw Materials, Last Business

Preparation, Designing, Stall and Food Cart on December 2018.

In this phase, MDC will ready itself and buy the needed Raw Materials in producing the

product “Malunggay Cookies.” From baking up until its packaging will be practiced by the

laborers. Also, uniform for the employees will be created. Designed Fixtures will be made in the

Rented Space and in the Food Cart. Last actions for the Business techniques and strategies will

be oriented for the whole firms’ readiness on its dry run operation,

Dry run to Normal Operation from January 2019 – onwards

5
 In this phase, normal operation will be done. There will be signage and banners that will

be posted before the opening. MDC wants to operate as New Year comes, to be able to see

clearly the changes in terms of progress every year if it happens that the company will succeed.

This is to serve as enabling tool to fully make a plan to succeeding months of the year like

February.

Gant Chart

6
 M
D
C
JUL
2018 2019
JUNE AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY
P Y
R
O Release of
Finances
J from the
E Legal Proponen
C Project Release of Finances Registrati ts for the Dry run to
T Conceptualization from the Proponents on, Buying of Normal
and Preparation for and Ordering of License Raw Operation
S Project Feasibility Machines and and Materials,
Study Equipment Arrangem Last
C ent of Business
H Operation Preparati
E s on,
D Designing
U , Stall and
L Food Cart
E

Organizational Chart

7
 MALUNGGAY DELICATE COMPANY

RAFAEL VALLEJOS
MANAGER

ANNESLIE DELA ALMA REYES AIVY VALENCIA GENELLE

PENA MARKETING PRODUCTIION GEROBIN
FINANCIAL SUPERVISOR SUPERVISOR PURCHASING

REGINE DEL MARSHA CEE JHEI AGRA NORALYN

ROSARIO JURLANO STAFF LUTERO
STAFF STAFF STAFF

Person Involved in the Management

8
 Staff Position Responsibilities

Rafael Vallejos Manager Accountable in organization

Financial Manager management, communication and
coordination of all the employees inside
the firm
Supports in making of financial
statements and position of the company.

Annestlie Dela Pena Financial Manager Responsible in making

organization’s financial statements and
analysing operating data to detect
business trends.

Aivy Valencia Production Supervisor Monitors the logistics services and

products of the company and its
purchasing department. Facilitates quality
control and productions.

Alma Reyes Marketing Supervisor Marketing of new/existing products/

services. Development of new products.
Lease with ad agencies and suppliers.
Assigned in production of marketing
material.

Genelle Gerobin Purchasing Officer Responsible in making monthly

production plan and material
requirements plan. Source, negotiate and
purchase raw materials and consumables.

Regine Del Rosario Responsible in following the rules and

Employee regulations implemented by the business.
Marsha, Jurlano They are the one to sell the product in the
stalls.

Cee Jhei Agra Tasked to make the product. They are

Direct Labor the ones who will be mostly present in
NoralynLutero the actual operation of the Business
Product.

9
Employees Status

Malunggay Delicate will employ staff under skills and abilities needed by the business

wherein they will determine and analyze some important principles in preparing pastries and

sweets; they will undergo regulation. The other employees will develop an understanding of

basic principles of sanitation and safety, food preparation within the area under contractual.

Regularization of Employee

The firm will regularize an employee. It means that the employee qualifies for the

permanent position in the company. A regular employee is one who employs the security of

tenure and may not be terminated without authorized cause. In the other hand, if employee is

illegally terminated, the employee may be entitled to have a back wages.

The employer shall review and examine the performance of the probationary employee

before the end of probationary contract. If the employee meets the standard performance required

for the job, the employee shall regularized to become regular employee. Hence, there are a lot of

factors whereby employees may automatically be considered as a regular employees.

• There was no evaluation of the employee’s work performances throughout the

probationary period.

• The employer will conducting a reviews and assessing employee performance prior to

granting full employees status

• The employee is allowed to continue working after the expiration of the probationary

employment contract.

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Regularization Policy

The Malunggay Delicate Company have 6 months probationary period and the applicant

will undergo evaluation criteria, and the evaluation methodology. Upon regularization,

employees will receive benefits. It may include vacation leave, maternity and paternity leave

benefit, PhilHealth insured and other.

Promotions and Appraisal

To motivate employees MDC will promote them once the company increase in number of

employees.

When to Promote Employees

MDC will promote employees based on the performance, skill and performance of the

employee. There are a lot of factors below affect the management’s decision in promoting

employees:

*Performance

*Merit and ability

*Educational attainment

*Training

Rules and Regulations

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 ●All laborers and employees will wear all required proper clothing for selling or doing

their products while at their workplace.

●All laborers and employees who sell or do the products must have long hair tied back to

avoid sweating in the body.

●All equipment will be in use or will be stored at their proper location at all times, no

equipment are to be left in any location where they are not being used or being restored.

●All equipment is to be kept clean.

●All equipment is to be shut down when not in use.

●All areas of the stalls are to be kept clean and organized.

●All areas of the stalls are to be kept properly lit when anyone is selling.

Time-in and Time-out

All employees are required to use the time clock to know how many hours their

worked for the product by selling it in the stalls.

Non-exempt employees are required to time in and out for attendance purposes.

Also employees need to be responsible by selling and doing their product on time

Methods of Disciplinary Action

A corresponding disciplinary action to the employees will be given if ever they

disobey the rules, regulations and policy of the firm. The following are the disciplinary actions

applicable:

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Verbal warning Corrective Actions

Counseling Official written reprimand

Disciplinary meeting with appropriate supervisor or manager

Final written warning Detraction of benefits

Indefinite suspension or demotion Termination

13
 CHAPTER II: MARKETING

Introduction

This aims to introduce MDC’s product to its potential target market. The firm’s objective

is to nourish customers in little ways and satisfy them at the same time. It’s also an objective to

increase the company sales within 3 years.

To introduce the product in the market, technology will be used in advertising. Aside

from direct advertising to customers, internet is an effective platform of advertising, particularly

in social media. So this will help the company in reaching wide range of potential customers

through careful placing of web banners, ads, etc. In addition, it’s free and easy to create a page in

Facebook, account on Twitter, Instagram and many more. Through social medias, MDC will

post everything that is about the product, from its ingredients, places of stores, price, etc. The

said platforms will be used as promotional strategy to increase the people who knows the product

and to increase also the sales. MDC will strengthen the operation regarding the product to ensure

a high quality of product for the customers.

Industry Analysis

Industry Description

This industry analysis will help in reaching the industry wherein MDC will be landing in

as its field. Since MDC is in manufacturing and merchandising industry, opportunities are

widely spread for every aspiring same kind of businesses. Though there’s a pervasive

competition, it is clearly seen in different studies that huge opportunities are still in favor for

14
merchandising industries, either retailers or wholesalers. What’s good to this, is the production of

NEW TRADE OF GOODS in this industry marked up the highest percentage since 1996.

The following tables of statistics are according to “State of Competition in the Wholesale

and Retail Sector” by Ma. Teresa Dueñas-Caparas, DISCUSSION PAPER SERIES NO. 2005-05

The propagation of large and small establishments in the business of selling food,

clothing, and medicines is not a surprising since these products constitute the core of household

spending of a typical Filipino.

In connection to this, sales and revenues are also collectively related. Dueñas-Caparas

stated that total revenue generated by the distribution sector amounted to P1.1 billion in 1997.

From 1990 until 1997, revenue has been growing, on annual average, by 12.9 per cent. The share

of retailing to total revenue is approximately 50 per cent in 1997, where a bigger majority

operates on a large-scale basis. Food, beverage and tobacco retailers, together with the textile

15
and garment retailers are the largest retailing group in terms of revenue generation. Combined

sales revenue of these two retailing groups amounted to P354 million in 1997, approximately 60

per cent of all Philippine retail sales.

On retailing aspect of Merchandising and Manufacturing Industry, “Food Beverages and

other retail of New Products” topped the list, proving that food innovation is highly pondered by

Filipinos.

With these statistics, knowing that a lot of business entrepreneurships are preparing to

enter the market, the chance to grow and progress is still present. This would give MDC a hint to

push the business not just for the sake of the earning revenues but also for being known and

performing its mission and vision to the country, rather to the world.

Economic

Economic conditions impact all the businesses; little movement in the economy will

typically provide a lot of new opportunities and the opposite around not just for the businesses

16
but also for the people in the society. As a Socially Responsible Business, it’s the firm duty to

site important factors that it needs to consider and be prepared with.

One of these, is the food industry present in the Philippines, narrowing down specifically

is the availability of food for the children, students in small areas and schools. Prevalent numbers

of street vendors and stores are selling these individuals food that is quite unsure with the proper

nutrition they are offering with them and this causes a big factor that is just unseen when

customers buy it. Why they buy? Because they can afford it.

According to the Philippine Ministry of Health, nearly 1/2 of all reported deaths among

infants and children are through age 4, and about 1/2 of the accelerated death rate among

those age 5 and younger is related to malnutrition, compounded by diarrhea and measles. The

primary cause of this problem is the food available near the areas the victims is present, and

these are following:

a. Junk Food

b. Soft Drinks

c. French Fries

d. Street Food

From that, a conclusion can be made, wherein malnutrition and poverty is really

interconnected. Poor families tend to buy food they can only afford and contents of those

beverages will not be a big deal anymore as long as it can fade away their starvation.

This economic issue would be an opportunity for MDC, for the product it would be

producing can be a substitute to the mentioned unhealthy food earlier. It is just with the same

17
price affordable for any type of consumers, especially children; providing them the food they

would like and nourishing them at the same time.

Legal

In the country Philippines, there are a lot of laws and regulations that businesses should

follow from registration, operation, up to termination. MDC will of course follow to avoid

punishments, charges and penalties from the authorities that are enforcing these.

The following are the laws and regulations needed.

1. Intellectual Property Code of the Philippines ( R.A. 8293) which states that the

registration of patents, trademarks and copy right and the enforcement of the

intellectual property rights in the Philippines.

2. The Securities and Exchange Commissions (SEC) is the agency of the Government of

the Philippines responsible for the regulating the securities industry in the Philippines.

In addition to its regulatory functions, the SEC also maintains the country’s company.

3. Social Security Act of 1997 (R.A. No. 8282) – the law mandates employers to

register their business and their employees with the Social Security System (SSS).

4. Labor Code of the Philippines (Presidential Decree No. 442) is the law that governs

employment practices and the labor relations in the Philippines.

5. National Health Insurance Act of 1995 (R.A. No. 7875) – the act that mandate

employers to register their business and their employees with the Philippine Health

Insurance Corporation or Philhealth.

6. The Magna Carta for Micro, Small and Medium Enterprises (MSMEs), as amended

(R.A. 9501) – an Act to promote entrepreneurship in the Philippines by strengthening

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 development and assistance programs to Micro, Small and Medium Scale Enterprises

in the Country.

MDC must comply the following requirements appropriate with its industry in order to

strengthen the brand image, ensure compliance and build competitive advantages.

Profit Potential

Profit potential can be determined by performing a five forces analysis which is the

rivalry, buyers, substitutes, new entry and suppliers.

Competitive Forces

Threat of substitutes

There could be a lot of substitute to the product of MDC, any bread-like product from

bakeries can be a substitute. But what makes Malunggay Cookies different is the nutritional

content of it. Malunggay Pandesal can be a substitute for they both contain malunggay extracts

and they price the same, but this is just available during morning and in villages, making it less

threat. The location, uniqueness and price would prizefight these threats.

Threat of New Entrants and Rivalry among Existing Firms

This poses a medium to high threat to the industry. Since this is a just a starting business,

MDC expects to see same businesses that would just start also. Those businesses can be present

in the location of MDC, having the same product lines, etc. Marketing strategies would be the

tool to cope up with these threats in order to gain customers and get a big demand to the product.

19
And as it grows, there will be likely many new entrants into the market; to compete with this

kind of industry, MDC would need large amounts of funding.

Bargaining power of Suppliers

Suppliers pose a low threat to the business. It would just be a big threat if it’s a large

scale of business. MDC depends on suppliers to support the business, but it is free to choose

from different potential suppliers for the ingredients of the product. MDC will just base on the

contract agreement that it wanted to be implemented to avoid forward integration

Bargaining Power of Buyers

This is a big factor to the industry, they hold the demand. Location consideration is

needed, once the demographic segmentation is properly applied and conducted, and then there

can be a big amount of buyers the product can get in a daily operation and that would be very

good to help the business be known and grow.

Market Analysis

MDC offers a quality product, a delicacy specifically cookies, that would favorable in

taste, appearance and texture for the target markets of the business. It would be different to the

usual chocolate cookies present in stores and groceries. This would be desirable and satisfying to

all the health conscious customers in the market for its substantial content and assured good

taste.

These are the characteristics of MDC’s target market:

 Children * Health Conscious Consumers

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  Students specially in kindergarten * Sweets Lovers

 STI College Fairview Students

 People inside SM Fairview

Situation Analysis

SWOT Analysis of Malunggay Delicates

STRENGTHS WEAKNESSES

Nutritious- Malunggay Delicate secure that New Entrants- Since Malunggay Delicates

every cookies that made have nutrients content. is new in the food industry; it can encounter

As one of the component ingredients is the numerous hindrances as time goes by.

Malunggay.

STRATEGY- aim to reach wider possible and

Place – The place where the product will be potential customers through the power of social

located can strengthen the business for the target media by using social media pages for the sake

markets are also present in it of the product awareness. The firm will promote

. the product and its uniqueness and why it is

Promotion - Malunggay Delicates will be worthy to buy.

offering different kinds of promotion for the

product. Many Competitors - Malunggay Delicates

is a small business wherein bigger competitors

Ordering Process- Malunggay Delicate are just on the other side of the business. As time

accept whole sale orders via different social goes by, many business minded will build a

media pages. business with the same product as Malunggay

21
 Delicates selling.

Patent – MDC is a registered and licensed

business, it is legal to operate. STRATEGY- Promotional Mixing and

other marketing strategies will be set up to cope

Advantages - promotion, such as advertising, up with those bigger companies. Power of social

public relations, word of mouth and point of sale media, ensuring the quality of the product and

will be considered. service to the customers will be emphasized to

handle this weakness.

OPPORTUNITIES THREATS

Wide Range of Customer- Malunggay Competitor’s product- considering

Delicate offers the product that suitable for all competitors’ products, it might be a huge threat

types of customers including the gender and ages for the company since our generation is very

as long they want to eat sweets like cookies. idealistic when it comes to put a business.

Pricing - Malunggay Delicate offer the Threat of substitutes

product with the reasonable price since the

company secure the healthy lifestyle of the Threat of New Entrants and Rivalry among

customers. Existing Firms

Celebrations and Seasons – The company can Bargaining power of Suppliers

get more customers during valentines and

Christmas seasons. Special celebrations or days Bargaining power of Powers

can be a source of more customers for the

product is perfect for a food gift to someone

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Business Opportunity

Opening a business for a starter will never be easy it takes a lot of you to build it and

become successful. The product itself is a big factor on starting a business. Since building a new

business would be a little hard because there are already businesses offering the related product

as yours. A product should be unique for a starting business to succeed and to be a business that

continuously working.

Demand Analysis

MDC conducted a survey to analyze the company’s target market and their requirements.

The following are the results of the survey.

Out of 50 random senior high school students 50 random people from mall who

we’re asked to take the survey about the product, ninety-six (96) or ninety-six percent (96%)

said yes to the question “Do you like cookies?”, while the remaining four (4) or four percent

(4%) said no, it only means that most of the respondents like cookies.

Also, they were asked with the question “Do you like to have something new in

terms of health benefits to the usual food you eat?”, again ninety-six (96) or ninety-six percent

(96%) said yes and four (4) or four percent (4%) said no, it only means that most of the

respondents are in favor of innovation of food in terms of health benefits.

From the 96 respondents who like cookies were asked with the question “Would

you still like to buy and eat cookies even if it has malunggay?”, eighty-six (86) or ninety (90%)

said yes, while the remaining ten (10) or ten percent (10%) said no. Adding reasons to their

23
answers, 32 or thirty-three percent (33%) would still buy because it’s less expensive, 38 or forty

percent (40%) because its nutritious, and the remaining thirteen 26 or twenty-seven percent

(27%) are just because they want to try something new leading to a conclusion that most of them

would still buy because of different factors.

These statistics will not be bad to serve as a part of demand analysis in related to the

innovation of the product and how customers will react on it.

Potential Demand

Malunggay delicate will offer their product in STI College-Fairview students which is

one of the main targets of the product. It would be easy to sell the product which is cookies to the

school itself because there are lots of students will be willing to buy it because of its price, taste,

and healthy benefits.

The business will do a page where they can be connected by the product. The social

media was a big help to sell the product which everyone can see and get information about the

product. Social media also was one of the easiest way to

share and spread to everyone about the product.

Since the business plan to build a stall at SM

Fairview which is good thing because mall is one of the

place where people go and buy things. Having a stall at

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SM Fairview would be a great idea for the business because everyone has a chance to buy and

taste our product.

As what said in the Strength of SWOT analysis, there’s a wide-range of customers who

will buy the product, any kind of customers can eat cookies. The potential demand will be high

also. The location of stalls can contribute to the number of potential demand for the product and

since it is mall and school, the potential demand are the following:

1. Students

2. Children

3. Elders

4. Sweets lovers

5. People near the school

6. Health conscious consumers

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Supply Analysis

Malunggay Delicate has it supplier on creating the product. The quality of the ingredients

must be the first priority on choosing the right supplier. Also the value of money must be

prioritized. Quality of the ingredients and the value of money are one of the main concerns when

buying and choosing a supplier. These are the list of criteria on buying and choosing a supplier.

Criteria for the suppliers:

 Quality

 Price

 Size

 Capacity

 Payment

 Turnaround Time

 Problem Resolution Process

 Reputation

Supplier Selection

Bagong Silang Phase 5 Market is one of the places where suppliers of the business are

present. Most of the ingredients will be bought in bulk in a one specific supplier only. In order to

expense less, buying in bulk and buying in market rather than stores will be applied.

26
 Some supplies that aren’t present in the market needs direct suppliers. Factories can be

the direct suppliers of the business other ingredients. The ingredients for the direct suppliers are

way more profound than the ingredients in the market, so higher standards for the direct

suppliers must be made.

When it comes to the materials or equipment that the business will need, branded

equipment will be highly prescribed, so the quality of the product will be maintained. Since

equipment is a non-current asset, ordering of another set of equipment regularly is not needed, if

it happens that the business will be successful, higher quality of machines and equipment will be

ordered in used.

Raw Materials from Local Supplier

27
 Materials Source Year in the Market Supplier Capacity

Oven 1 (for the 1 year)

Bowl and Mixing,
handlers and other Hanabishi 2 sets ( for 1 year)
31 Years
baking Materials
Shaping and other
2 sets (for 1 year)
designing Materials
Container/s Boxes Wonder Bake 5 years 1500 units per month
1411.5 Kilos per unit
Powder Ingredients AlingMinda’s Store 8 years
per month
Liquid Ingredients Chabelita’s Store 8 years 15 units per month
90 kilo per unit per
Flavor Ingredients F3 Factories 8 years
month
Egg Marshan’s Egg 8 years 3600 units per month

The following suppliers are can be found in Bagong Silang, Caloocan City like the

AlingMinda’s Store, Chabelita’s Store, F3 Factories and Marshan’s Egg except from the Juander

Bake and Hanabishi for they are branded and can be found around Quezon City, specifically in

SM Fairview.

Location Analysis

28
STI COLLEGE FAIRVIEW

MDC will locate its business at SM Fairview Corner Regalado Avenue, Quirino

Highway, Lungsod Quezon, KalakhangMaynila (renting stall) and at STI College Fairview 70

Regalado Avenue, Novaliches, Quezon City, 1121 Metro Manila for the food cart. The Company

had chosen these locations for the target market and wider-range of customers are present in this

place.

Competitor Analysis

29
 Malunggay Delicates' direct competitors are Chips Delight, Butter Cookies, Oreo

Cookies, Chips Ahoy, Chunkee and the Complete Cookies while it's indirect competitors are the

Binggo Biscuits, Pretsel Biscuits, Voice Biscuits and the Malunggay Pandesal.

Demographic

Firm's target market ranges from any ages, male or female whether it is a student or

professional as long as they eat or like sweets delicacies. Firm's product provides sweet cookies

with Malunggay to satisfy their sweets craving with nutritional content.

Geographic

Aside from age range, the firm is marketing the product based on craving satisfaction of

the customers and geographical areas. Most of the people belongs in the middle class are mostly

the students and professional going to school and work. Firm decided to build a store near

wherein there are a lot of possible customers. The Company also wants to build the store near

areas where children are present for this product would be perfect for children’s sweet needs and

health.

Competitor Advantage

Customers Relationship Management Strategy

Customers’ relationship management (CRM) are practices and strategies that companies

use to manage and analyze interactions and data throughout the customer’s lifecycle, with the

30
goal of improving business relationships with customers, assisting in customers and driving sales

growth.

• The firm will post on social media accounts and other internet websites including the

video ads, pictures and where to buy it to gain more than thousands likes and to inform the

people especially the students and children.

• The firm will give fliers in the location of the business.

• The firm will make customers make feel satisfied to feel better.

 Its MDC’s employee’s responsibility to smile while serving the customers with politeness

and delicate attitude.

Marketing Strategy

Marketing Mix

Product Name

MDC’s 1st product line as it starts is cookie. The product will be named as

“Malunggay Cookies” came from the company’s main ingredients malunggay, and a

delicacy cookie. To describe the product in short, Malunggay Cookie is a healthy and

tasting delicacy.

POSITIONING

High Price

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 Low Quality High Quality

Low Price

The green circle represents the MDC with a high quality product and affordable price.

While the other circles represent the competitors like Delight Cookies (indigo), Butter

Cookies(orange), Oreo Cookies(red), Chips Ahoy(blue), Chunkee(brown) and the Complete

Cookies(black).

PRODUCT

Malunggay Cookies are not just like the usual cookies available in stores; it will taste

near the same like the other cookies but will be containing more nutrients as it will have

Malunggay extracts in it. It would be having different flavors including chocolate, strawberry,

peanut butter and pandan. More innovations and improvements regarding the flavor will be made

as the business goes big over the years. The business will serve this “Malunggay Cookies” as the

first product line of the company.

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 Malunggay Cookies flavors of Chocolate and Butt

Why Malunggay?

According to the Department of Science and Technology, “Malunggay is "miracle plant"

Malunggay, known scientifically as Moringa oleifera Lamk, is one of the world's most useful

plants.. It is also called mother's best friend, and miracle vegetable by many who know

malunggay's beneficial uses.”

33
 According to ANKRAH High Quality Food Supplement, these remarkable leaves

“contain 7 times the vitamin C found in oranges, 4 times the calcium in milk, 4 times the vitamin

A in carrots, 2 times the protein of yogurt, 25 times the iron in spinach, and 3 times the

potassium in bananas.”

Its leaves are said to contain:

1271% of daily dose of iron

272% of daily dose of vitamin А

22% of daily dose of vitamin C

5% of the daily dose of calcium

61% of daily dose of magnesium

41% of daily dose of potassium

Moreover, a number of studies “show that moringa leaves possess anti-tumor and anti-

cancer activities, due in part to a compound called niaziminin.

PACKAGING

MDC will be packaging the product into a container or box. Malunggay Cookies are

inside of a transparent box with matching design like ribbon. Additional marketing strategy will

be made with the packaging. Candies and other handy products nowadays have their attractive

and catchy packaging in terms of putting messages related to love, friendship, family, God, etc.

34
 Aside from the design and logo, a short message inside the will be seen as the customer

open it up. This kind of technique will somehow attract the customers.

PLACE

Malunggay Delicacies is located along Regalado Highway, in STI College Fairview.

MDC choose this place because it can be easily reach by our target customers. There are no

many competitors or store selling the same as our product in that place because of showing a

defensive strategy and the other one in mall to have a wider range of customers.

PEOPLE

The company and the business’s partners assure that every single worker will be

dedicated on their job that can make the product more resourceful and worth it. Every single

personnel inside the business are well trained even they have the skills that suits on what the

company have.

35
PROMOTION

The promotion strategy that MDC will be used in the product is Point-of purchase signs,

posters and leaflets because the product are using poster to introduce or to promote what are

product is all about. Another strategy is to give discount the customers in terms of buying a box

of the product.

PRICE

The Malunggay Cookies will be in fair price. Costing of the product will be discussed in

financial aspects. Each cookie will cost up to P 4.00, and twelve pieces for P 48.00.

SURVEY GRAPH

1. Is the Pricing Strategy are reasonable with the product? Yes or No?

Pricing Strategy Frequency

Yes 88
No 12

Table 1.1

The result only shows that out of 100 respondents, 88 or eighty eight percent

(88%) said Yes it is reasonably, while the remaining 12 or twelve percent (12%) said

No. It only shows that some of the customers said that we must higher the price

because our product is satisfied enough.

36
 2. What is your satisfaction with the taste of our product? Rate 1-5, 1 as the lowest and 5

as the highest

Rate Frequency
1 0
2 0
3 30
4 42
5 28

Table 1.2

The result shows that out of 100 respondents, 30 or thirty percent (30%) rate 3 the taste of

the product, 42 or forty two percent (42%), while fourteen 28 or twenty-eight percent (28%) rate

5. It only shows that the majority of the customers satisfied with the taste.

Food cart

37
 This food cart will serve as the store that will be located near the school. The renting for

the place where to put this food cart will cost up to P 2, 500 every month. This food cart will

depreciate 20 % annually for 5 years.

CHAPTER III: OPERATIONS

Purchasing Process

There is the process where the company will purchase the needed ingredients in order to

make the product. The company will purchase ingredients which depend on the order quantity.

The company’s primary sources of purchases are in the market. Therefore, the company will be

able to be thrifty. Also, the company is open to purchase in factories and malls if there is a lack

of production or unavailability in the wet market. The steps that will be able to guide the

company in ordering and purchasing of the needed ingredients are follows;

1. Purchasing Officer

The purchasing officer is always responsible for the purchasing process of the

ingredients.

2. Identify the Ingredients needed

38
 This step is developing the list of all the needed ingredients in order to purchase

from the market. The needed ingredients should be listed also with the number of

ingredients needed.

3. Purchase order from

Once the list of ingredients is done, it can be passed to the upper management for

the approval.

4. Choose Supplier

In choosing supplier, the firm are looking a branch in market where in the

supplier is having a discount for every ingredients, the quality, and quick response

5. Purchasing

This is where the purchase team will buy all the needed ingredients from the

chosen supplier, such as the chosen branch in the market.

6. Receiving Order

This receipt will be given to the finance supervisor in order to record purchased

materials for the future inventory.

39
 CHAPTER IV: TECHNICAL

Product Design and Description

Product Offering

40
• Quality Ingredients is only premium ingredients make the cut for any of our products.

The finest ingredients make the finest treats, which is why we don’t use anything less.

• Quality Baking: Freshly baked every day at each store, our cookies offer what the

competitors can't: fresh, handmade dough.

• Quality Details: decorating cookies is what makes them so special and memorable,

adding a personal touch to your customers’ experience.

Business Logo

This Is the MDC’s Logo showing the

malunggay leaf on the left side as the main

ingredients of the product that will be producing.

The business put Cookies to give it an importance

as the first product line and hearts around to show

the delicate hearts of the employees and other

people in the firm as they serve their customers.

Location of the Business

41
 This would be the place in mall that the stall of MDC will be located. The renting price

will be about to P 21, 500 including the process of renting.

Utilities

WATER

It is important to have maintained water supplies for basic hygiene and also for

emergency purposes. Especially water is the important for washing of the working area, and for

the cleaning of the other equipment. Water supplies would be limited as much up to 20 pesos a

day.

ELECTRICITY

Electricity is needed to make equipment work that the firm has. Since it has two stalls,

the one inside the mall will be sub-metered to the watts or amount of consumption of electricity

every month. An amount of P 3000 will be adjusted and budgeted for electricity.

INTERNET

Since the MDC is promoting the product using Facebook and other social media pages,

using internet connections is very important to support all of the transactions online operated by

the managers.

42
Machine and Equipment

The production of the product will be operated in the residency of one partner in the

business, finish products will be then just transported to the mall and to the stall.

The equipment that will be used for the operation are the following:

43
 Oven

Ingredients Mixer

44
Name of Equipment

1. Baking Pans

2. Dough Hook

3. Measuring Spoons and Cups

4. Mixing Bowl

5. Mixing Bowl

6. Plastic Wrap/Kitchen Towel

7. Rolling Pin

8. Rubber Spatula

9. Ruler

10. Serrated Knife

11. Wire Cooling Rock

12. Wooden or Metal Spoon

13. Kitchen Food Weighing scale

14. Oven

15. Ingredients Mixer

45
 The following machines and equipment will be costing up to P 50,000 pesos. This has

already two sets except from oven are to be ordered for the operations of the business. Other

details for computation of the prices will then be showed to financial aspect.

QUALITY MAINTANANCE OF THE PRODUCT

In order to be able to create each cookie in same quality and taste the following

equipment will be calibrated and adjusted.

1. Correct weighing of each ingredient will be assured in each mixing process.

2. To ensure the quality of solution of all of the ingredients, mixing machine will be used.

3. After mixing, scooping of the product and shaping it to a form will be made. To be able

to have the same weigh of each cookie, kitchen weighing scale will be used.

4. Then the designed cookie will be placed inside the oven with a limited time of 4 minutes

and 30 seconds in a temperature 320 degree Celsius to ensure that the cookies will not be

that so stiff, that so soft, but just enough crisp and softness that the customers will love.

46
 CHAPTER V: FINANCIAL ASPECT

Organization Cost
COST
SEC Registration 5000
Baranggay Clearance 500
Sanitary Permit 250
Mayor's Permit 1000
DTI (Business Name Registration) 2500
Raw Materials: PER DAY PERMONTH
22 Kilos of Flour 550.00 16,500.00
9 kilos of White Sugar 450.00 13,500.00
9 Kilos of Brown Sugar 450.00 13,500.00
6 Kilos of Butter 450.00 13,500.00
600 grams of Malunggay Extracts 60.00 1,800.00
500ml of Vanila 70.00 2,100.00
3 Kilos of Flavor Ingredients 280.00 8,400.00
250grams of Baking Soda 10.00 300.00
120 eggs 500.00 15,000.00
200 grams of oatmeal 150.00 4,500.00
Containers 350.00 10,500.00
TOTAL 3,320.00 99,600.00
Labor/Man Power -
2 Laborers -
(2 bakers ) 1,024.00 30,720.00
Lights/Electricity 180.00 5,400.00
Water 20.00 600.00
Internet 100.00 3,000.00
Prepaid Rent( 3 months ) 800.00 72,000.00
Offi ce Supplies 50.00 1,500.00
FoodCart 12,000.00
Equipment 50,000.00
Furniture and Fixture 15,000.00

TOTAL 299,070.00
Contingent Fund 50,930.00 47

TOTAL INVESTMENT 350,000.00

The initial investment of the company will be amounting up to P 350, 000

PRODUCT COSTING

Raw Materials: PER DAY PERMONTH

22 Kilos of Flour 550.00 16,500.00
9 kilos of White Sugar 450.00 13,500.00
9 Kilos of Brown Sugar 450.00 13,500.00
6 Kilos of Butter 450.00 13,500.00
600 grams of Malunggay Extracts 60.00 1,800.00
500ml of Vanila 70.00 2,100.00
3 Kilos of Flavor Ingredients 280.00 8,400.00
250grams of Baking Soda 10.00 300.00
120 eggs 500.00 15,000.00
200 grams of oatmeal 150.00 4,500.00
Containers 350.00 10,500.00
TOTAL 3,320.00 99,600.00
Labor/Man Power
2 Laborers
(2 bakers ) 1,024.00 30,720.00
Lights/Electricity 180.00 5,400.00
Water 20.00 600.00
Rent 800.00 24,000.00
Internet 100.00 3,000.00
Transportation 300.00 9,000.00
TOTAL COST 5,744.00 172,320.00

48
 This is the total cost of the production daily and monthly including the overhead

cost and direct labor. Internet will be a part of costing and will be included in overhead

cost for MDC will be receiving orders online and respond to the customers.

PRODUCTION CAPACITY

INVENTORY
Pieces of Cookies TOTAL PIECES Amount Monthly
Boxes 50 12 600 2400 72000
Per Piece 1600 6400 192000
TOTAL PIECES 2200 8800 264000

Each laborer is capable of making 138 pieces of cookies every hour, since there

are 2 employees, around 245 cookies can be made. There would be 8 hours of working so

the total number of cookies can be made is 2200.

Ending Inventory
Daily Amount Monthly Anually
100 PHP 400.00 PHP 12,000.00 PHP 144,000.00

There would be up to 100 pieces of cookies that will not be sold each day, ending

inventory will be up to P 400 each day, P 12,000 monthly, P 144,000 annually.

49
 SELLING PRICE COMPUTATION
Daily Monthly
TOTAL COST PHP 5,744.00
PIECES CAN MAKE AND BE SOLD 2100 25,200.00
PRICE PER PIECE PHP 2.74
MARK UP (50%) PHP 1.37
SELLING PRICE PER PIECE PHP 4.10

Each cookies will be sold for P 4.00 including the mark up of 50% to the total

cost per piece which is P 2.74. There would be 12 pieces in a box of cookies for 48 pesos

SALES
Daily Monthly
Sales PHP 8,800.00 PHP 264,000.00
Total Cost PHP 5,744.00 PHP 172,320.00
Income PHP 3,056.00 PHP 91,680.00

Daily sales will be around to P 3,056, while monthly sales will be projected up to

P 264,000.

50
 Malunggay Delicate Company
January 31 2018 AMOUNT ANUALLY

Gross Sales 264,000.00 3,168,000.00

Less: Cost of Good Sold 172,320.00 2,067,840.00
Gross Profit/Margin 91,680.00 1,100,160.00
Less: Operating Expenses -
Salaries Expense (2 sellers) 30,720.00 368,640.00
Rent Expense 24,000.00 288,000.00
Utilities Expense 9,000.00 108,000.00
Advertising Expense 3,000.00 36,000.00
Supplies Expense 1,500.00 18,000.00
Transportation 300.00 3,600.00
Depreciation 15,400.00
Sanitary Expense 301.67 3,620.00
Miscellaneous 1,000.00 12,000.00
Total Operating Expense 69,821.67 837,860.00
Total Operating Income 21,858.33 262,300.00

Net Income after Tax(employee)

30% Tax Deduction 78,690.00
Net Income 183,610.00

The projected Income Statement above is for the first month which is January,

multiplying to 12 months, the specified income statement above annually will be P 183,

610.

51
 Income Statement
Malunggay Delicate Company
January 31 2018
January February (20%^) March April May
Gross Sales 264,000.00 316,800.00 264,000.00 264,000.00 264,000.00
Less: Cost of Good Sold 172,320.00 206,784.00 172,320.00 172,320.00 172,320.00
Gross Profit/Margin 91,680.00 110,016.00 91,680.00 91,680.00 91,680.00
Less: Operating Expenses -
Salaries Expense (2 sellers) 30,720.00 36,864.00 30,720.00 30,720.00 30,720.00
Rent Expense 24,000.00 28,800.00 24,000.00 24,000.00 24,000.00
Utilities Expense 9,000.00 10,800.00 9,000.00 9,000.00 9,000.00
Advertising Expense 3,000.00 3,600.00 3,000.00 3,000.00 3,000.00
Supplies Expense 1,500.00 1,800.00 1,500.00 1,500.00 1,500.00
Transportation 300.00 360.00 300.00 300.00 300.00
Depreciation
Sanitary Expense 301.67 362.00 301.67 301.67 301.67
Miscellaneous 1,000.00 1,200.00 1,000.00 1,000.00 1,000.00
Total Operating Expense 69,821.67 83,786.00 69,821.67 69,821.67 69,821.67
Total Operating Income 21,858.33 26,230.00 21,858.33 21,858.33 21,858.33

June July August September(20%^) October(20%^) November(20%^) December(20%^) TOTAL

264,000.00 264,000.00 264,000.00 316,800.00 316,800.00 316,800.00 316,800.00 3,432,000.00
172,320.00 172,320.00 172,320.00 206,784.00 206,784.00 206,784.00 206,784.00 2,240,160.00
91,680.00 91,680.00 91,680.00 110,016.00 110,016.00 110,016.00 110,016.00 1,191,840.00
-
30,720.00 30,720.00 30,720.00 36,864.00 36,864.00 36,864.00 73,728.00 436,224.00
24,000.00 24,000.00 24,000.00 28,800.00 28,800.00 28,800.00 28,800.00 312,000.00
9,000.00 9,000.00 9,000.00 10,800.00 10,800.00 10,800.00 10,800.00 117,000.00
3,000.00 3,000.00 3,000.00 3,600.00 3,600.00 3,600.00 3,600.00 39,000.00
1,500.00 1,500.00 1,500.00 1,800.00 1,800.00 1,800.00 1,800.00 19,500.00
300.00 300.00 300.00 360.00 360.00 360.00 360.00 3,900.00
15,400.00 15,400.00
301.67 301.67 301.67 362.00 362.00 362.00 362.00 3,921.71
1000 1000 1000 1,200.00 1,200.00 1,200.00 1,200.00 13,000.00
69821.67 69821.67 69821.67 83,786.00 83,786.00 83,786.00 83,786.00 907,681.71
21,858.33 21,858.33 21,858.33 26,230.00 26,230.00 26,230.00 26,230.00 284,158.29

30% Income Tax Deduction 85,247.49

Net Income 198,910.80

52
 The following amount will be the projected net income in each month for seasons

and celebrations affect the operation. So in February and Ber-Months, the expenses and

sales will rise up to 10%. Depreciation expense only applies every year. Summing it up,

the annual net income is P 198, 910.80

2019 2020(10%^) 2021(10%^)

3,432,000.00 3,775,200.00 4,152,720.00
2,240,160.00 2,464,176.00 2,710,593.60
1,191,840.00 1,311,024.00 1,442,126.40
- - -
436,224.00 479,846.40 527,831.04
312,000.00 343,200.00 377,520.00
117,000.00 128,700.00 141,570.00
39,000.00 42,900.00 47,190.00
19,500.00 21,450.00 23,595.00
3,900.00 4,290.00 4,719.00
15,400.00 15,400.00 15,400.00
3,921.71 4,313.88 4,745.27
13,000.00 14,300.00 15,730.00
907,681.71 998,449.88 1,098,294.87
284,158.29 312,574.12 343,831.53

85,247.49 93,772.24 103,149.46

198,910.80 218,801.88 240,682.07

In year 2010, the expenses will increase up to 10% except from the depreciation expense

and same thing goes with the year 2021.

53
 Cash Flow Statement
Malunggay Cookies

OPERATING ACTIVITIES 2019

Net Income 198,910.80

Add: Depreciation Expense 15,400.00
214,310.80
Less: Increase in Current Asset
Offi ce Supplies 1,500.00
Prepaid Rent 72,000.00
Inventories PHP 500.00
TOTAL 74,000.00
Add; Increase in Current Liabilities
PAG IBIG 14,745.60
SSS 41,640.00
PHILHEALTH 9,000.00
WITHHOLDING TAX
TOTAL 65,385.60
Cashflow from Operating Activities 205,696.40

INVESTING ACTIVITIES
Food Cart 12,000.00
Machines and Equipment 50,000.00
Furniture and Fixtures 15,000.00

Cashflow from Investing Activities 77,000.00

FINANCING ACTIVITIES
Partner's Capital 350,000.00
Additional Investment
Less: Drawings
Cashflow from Financing Activities 350,000.00

TOTAL CASHFLOW 478,696.40

54
 The same thing goes with the balance sheet, each year accounts will increase up

to 10%

Malunggay Delicate Company

Projected Cash Flow Statement
Statement of Financial Position

Current Asset 2019 2020(10%^) 2021(10%^)

Cash 335,196.40 547,648.29 779,805.36
Office Supplies 1,500.00 1,650.00 1,815.00
Prepaid Rent 72,000.00 79,200.00 87,120.00
Inventories PHP 144,000.00 158,400.00 174,240.00
Net Current Asset 552,696.40 786,898.29 1,042,980.36
Fixed Asset
Food Cart 12,000.00 12,000.00 12,000.00
FC Accumulated Depreciation (2,400.00) (4,800.00) (7,200.00)
Machines and Equipment 50,000.00 50,000.00 50,000.00
BE Accumulated Depreciation (10,000.00) (20,000.00) (30,000.00)
Furniture and Fixture 15,000.00 15,000.00 15,000.00
FF Accumulated Depreciation (3,000.00) (6,000.00) (9,000.00)

Net Fixed Asset 61,600.00 46,200.00 30,800.00

TOTAL ASSET 614,296.40 833,098.29 1,073,780.36

Liabilities and Owners Equity

PAG IBIG 14,745.60 14,745.60 14,745.60

SSS 41,640.00 41,640.00 41,640.00
PHILHEALTH 9,000.00 9,000.00 9,000.00
WITHHOLDING TAX

TOTAL 65,385.60 65,385.60 65,385.60

TOTAL LIABILITIES

Owners Equity
Partners' Capital 350,000.00 548,910.80 767,712.69
Additional Investment
Plus Net Income 198,910.80 218,801.88 240,682.07
TOTAL OWNERS EQUITY 548,910.80 767,712.69 1,008,394.76
TOTAL LIABILITIES AND OWNERS EQUITY 614,296.40 833,098.29 1,073,780.36

55
 FINANCIAL SCHEDULE

Account Name: Salaries Expense Monthly

January 30,720.00
February 36,864.00
March 30,720.00
April 30,720.00
May 30,720.00
June 30,720.00
July 30,720.00
August 30,720.00
September 36,864.00
October 36,864.00
November 36,864.00
December 73,728.00
TOTAL AMOUNT 436,224.00

Each employee will receive a minimum wage which is P 512.00, multiplying it by two

annually including the projections each month will sum up to P 436, 224

Account Name: Rent Expens e Mont hl y

J anua r y - Mar ch, 2019 72, 000. 00

Apr i l 24, 000. 00
May 24, 000. 00
J une 24, 000. 00
J ul y 24, 000. 00
Augus t 24, 000. 00
Sept e mber 24, 000. 00
Oct ober 24, 000. 00
November 24, 000. 00
December 24, 000. 00
TOTAL AMOUNT 288, 000. 00

RENT EXPENSE

56
 JANUARY TO FEBRUARY INCLUDES THE PREPAID RENT AND THE

REMAINING MONTHS REGULAR PAYING OF RENT WILL HAPPEN.

Accoun t Name: Utilities Exp ense Daily Mon th ly Anu ally

Water 20 .0 0 6 0 0.0 0 7 ,20 0 .00

Electricty 1 80 .0 0 5,40 0.00 6 4,8 0 0.0 0
In ternet 1 00 .0 0 3,00 0.00 3 6,0 0 0.0 0
TOTAL AMOUNT 3 00 .0 0 9,00 0.00 10 8,00 0.00

Accoun t Name: Advertising Expense Daily Mon th ly An ually

Stickers 50 .0 0 1,50 0.00 1 8,0 0 0.0 0

Fliers 50 .0 0 1,50 0.00 1 8,0 0 0.0 0
TOTAL AMOUNT 1 00 .0 0 3,00 0.00 3 6,0 0 0.0 0

UTILITIES EXPENSE

Accou nt Name: Sup plies Expen se Mon th ly An u ally

Pap ers 5 00 .0 0 6 ,0 0 0.0 0

Folders 5 00 .0 0 6 ,0 0 0.0 0
Pen s 3 00 .0 0 3 ,6 0 0.0 0
Oth er Su p p lies 2 00 .0 0 2 ,4 0 0.0 0
TOTAL AMOUNT 1 ,50 0 .0 0 1 8,0 00.0 0

SUPPLIES EXPENSE

57
 Accoun t Name: Transportation Exp en se Monthly Anu ally

Freigh-In 3 00 .0 0 3,60 0.00

TOTAL AMOUNT 3 00 .0 0 3,60 0.00

TRANSPORTATION EXPENSE

Accou n t Name: Dep reciation Exp ense An u ally

FoodCart 2 ,40 0.00

Equ ipmen t 1 0,00 0 .0 0
Fu rniture an d Fixtu re 3 ,00 0.00
TOTAL AMOUNT 1 5,40 0 .0 0

Depreciation expense will be up to 20% of the total plant assets. The time value is

5 years, each year the depreciation will be up to P 15, 4000.

Accou nt Name: Sanitary Exp en se Daily Monthly An ually

Mop 1 ,5 00 .0 0
Dust p an 5 00 .0 0
Soap an d related cleaning materials 4.50 1 35 .0 0 1 ,6 20 .0 0
TOTAL AMOUNT 3 ,6 20 .0 0

58
 SANITARY EXPENSE

Accoun t Name: Miscellan eous Expense Mothly Anu ally

Budget for Adjustmen t 1,0 00.0 0 12,000.00

TOTAL AMOUNT 1,0 00.0 0 12,000.00

MISCELLANEOUS EXPENSE

FINANCIAL RATIOS

LIQUIDITY RATIOS

Current Ratio
Current Assets: 552,696.40
Current Liabilites 65,385.60
Current Ratio 8.45

This represents the proportion between Current Assets and Current Liabilities

which readily available funds can pay off current liabilities. Potential creditors use this

ratio as a measure of a company's liquidity and how easily it can service debt and cover

short-term liabilities.

59
 Quick Ratio
Cash, Marketable Securities, Accounts Receivable 478,696.40
Current Liabilites 65,385.60
Quick Ratio 7.32

This represents the proportion between selected Current Assets and Current Liabilities

and it measures current (short term) liquidity and position of the company”

Total Debt to Owners Equity

T otal Liabilities 65,385.60
Owners Equity 548,910.80
T otal Debt to Owners Equity 0.12
This

represents the proportion shows the proportion of equity and debt a firm is using to

finance its assets, and the extent to which shareholder's equity can fulfill obligations to

creditors in the event of a business decline. A low debt-to-equity ratio indicates lower

risk, since debt holders have less claim on the company's assets

PROFITABILITY RATIOS

Return on Sales
Net Profit After T axes 198,910.80
Sales 1,191,840.00
Return on Sales 0.17

17%. Measures how

much a company can mark up sales above COGS. Also called as “Operating margin” is the

percentage of sales left after covering additional operating expense.

60
 Return on Assets
Net Profit After T axes 198,910.80
Assets 614,296.40
Return on Assets 0.32

32% . Refers to net

profit or net income, the amount of earnings from sales after all costs, expenses and taxes.

Return on Equity
Net Profit After Taxes 614,296.40
Owners Equity 548,910.80
Return on Equity 1.12

This measures the ability of earning return on their equity investments.

ACTITIVITIES RATIOS

Asset T urnover Ratio

Sales 1,191,840.00
T otal Sales 3,432,000.00
Asset T urnover Ratio 0.35

Current Asset T urnover Ratio

Sales 1,191,840.00
Current Asset 552,696.40
Current Asset T urnover Ratio 2.16

Fixed Asset Turnover Ratio 61

Sales 1,191,840.00
Net Fixed Asset 61,600.00
Fixed Asset T urnover Ratio 19.35
 Inventory Turnover Ratio
Cost of Good Sold 2,240,160.00
Inventory 1,788,000.00
Inventory Turnover Ratio 1.25

62
CHAPTER VI – BUSINESS EXPANSION PLAN

All successful business startups eventually face the issue of handling business expansion

or growth. Business expansion is a stage of a company’s life that is fraught with both

opportunities and perils. On the other hand, business growth often carries with it a corresponding

increase in financial fortunes for owners and employees alike.

The First year of MDC

The firm will post on social media accounts and other internet websites including the

video ads, pictures and where to buy it to gain more than thousands likes and to inform the

people especially the STI students. The firm will give fliers in the location of the business and in

the STI College Fairview. the promotion strategy that we used in our product is Point-of

purchase signs, posters and leaflets because our product are using poster to introduce or to

promote what are product is all about. Another strategy is that we use is publicity like internet

and social through this way we can easily spread out our product and it has the greatest chance to

be more popular and number one in the market.

Different product line will then be made but with the same ideas of putting Malunggay

Extracts in it, since it’s in the company’s name. The following are the next product line of the

business.

63
 1. Malunggay Shakes

2. Malunggay biscuits

3. Malunggay Cupcakes

4. Malunggay Juice

5. Malunggay Pastillas

6. Malunggay Chocolates

7. Malunggay Candies

8. Malunggay Polvoron

9. Malunggay Ice Cream

10. Malunggay Soup

The MDC would like to create different varieties of delicacies comprising malunggay

extracts in it. The next focus of the company is to create shakes with different flavors but still

containing extracts of MoringaOreifera. The next one is the malunggay biscuits which will then

be marketed to different stores, this is a biscuit with fillings combined with malunggay and can

be bought by P 5.00 for 3 pieces.

Within the 8 year-operation of the company, the business aims to cover a larger scale of

location where the product will be distributed and at the same time, MDC will plan to come up

to its own shop.

Malunggay Delicate Company will assume to be known in the food manufacturing

industry, including online coverage after 10 years of production but during its 8 th year of

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operation the company will be having its Corporate Social Responsibility. These are the

following:

1. Reaching out program to areas where Malnutrition is in high percentage.

2. Charity for Children with difficulties in terms of health

3. Scholarship program for children with financial needs with using ¼ of the total

profit of the company.

The company will always strive for the best in each operation and will always be finding

improvement to continue to satisfy the changing need, likes and wants of the customers.

Malunggay Delicate Company envisions as the most known seller of food and delicacies that are

healthy in the taste of the tongue and at the same time healthy for the heart and whole body.

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Business Requirements and Permits

The following are the Business Requirements and Permits that MDC needed to operate:

Malunggay Delicate, General Partnership

VALLEJOS, RAFAEL

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 Malunggay Delicate

General Partnership 167 Quirino Highway, Quezon City

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Malunggay Delicate 167 Quirino
Highway, Quezon City Vallejos, Rafael

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Malunggay Delicate

Rafael Vallejos

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Malunggay Delicate, General Partnership

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