Feasibility Study on HEXAFOOD CO.

7/23/2019 Feasibility Study on HEXAFOOD CO.

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Dr. Filemon C. Aguilar Memorial College of Las Piñas

HEXAFOOD CO.

A Feasibility Study

Presented to the Faculty of

College of Business Administration


In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Business Administration

Major in Financial Management

By:

Mary Anne Keith L. David

Mary Elaine B. Escandor

Lady Marianne D. Mallari

Yna Jesseca D. Maniquis

Shaira O. Nadal

Lie Ann M. Polidario

March 2015



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APPROVAL SHEET

The feasibility study entitled “The Feasibility of Jell-Oh Cakes”, prepared and

submitted by Mary Anne Keith L. David, Mary Elaine B. Escandor, Lady Marianne

D. Mallari, YnaJesseca D. Maniquis,Shaira O. Nadal, and Lie Ann M. Polidario in

partial fulfillment of the requirements for the Degree of Bachelor of Science in Business

Administration Major in Financial Management has been examined and is

recommended for oral presentation.

Prof. Marilou B. Lleno, MBA, DMS

Adviser

Approved by the PANEL OF EXAMINERS on oral examination on February 23,

2015 with the grade of ___.

Prof. Virgilio Seballe, CPA, MBA, CISA, CFSA, CIA

Chair

Prof. Rommel Antonio Mazon, AB Major in Literature – MALit

Member

Accepted in Partial Fulfillment of the requirements for the Degree of Bachelor of

Science in Business Administration Major in Financial Management.

Ms. Agnes T. Sarabia, MBA

Assistant Vice President for Academic Affairs



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ACKNOWLEDGEMENT

The proponents would like to express their profound gratitude and appreciation to

the people who generously extended valuable assistance, cooperation and encouragement

which made this study feasible. Many thanks to the following:

Prof. Marilou B. Lleno, our adviser, for her patience and guidance, encouragement

and for sharing her expertise in writing this feasibility study;

Prof. Virgilio Seballe, for sharing his expertise in the financial aspects of this study;

Prof. Rommel Mazon, for his very honest opinions on our work and for his

encouragements;

Mr. Jason Bugatan, a long-time friend, for dedicating his time and giving us all the

help that we needed with regards to the financial aspect of this study;

The Santos and Torrente families, for welcoming and accommodating us in their

respective homes;

Our college friends, for their endless help and support, and for always giving us

optimism up until the end;

Our parents and families, for their financial and moral support, and for always

understanding and giving us inspiration all throughout the study;

To everyone who helped us in one way or another, thank you very much;



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Above all, to our Almighty God, for showering us with abundant blessings and

graces, for giving us the strength to stand together as one group; to endure all trials we

have faced during the study; for the inspiration to strive for our dreams and endeavors;

for giving us wisdom, good health, and strength of heart; and for blessing us with all the

people mentioned above, whom without which this study, would not be possible.

MAKD/MEE/LMM/YJM/SON/LAP



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EXECUTIVE SUMMARY

Different businesses already exist in the market. There are companies who

have well-established name that determines their position in the market now days. In

order for a new business to be appealing or attractive in the market, innovation and

creativity are some of the factors to be accounted for.

Jell-Oh Cake is a soon-to-be established company to be owned, controlled, and

operated by four (6) principal proponents.

Hexafood Co. is a new entrant in the food industry that offers a unique jelly

icebox cake created with gelatin, crackers, cream and different varieties of fruits. The

product would be a dessert and at the same time, pastry. The prime component of the

mixture will be the gelatin and the honeyed crackers.

The word Jell-Oh Cake is used by the proponents as the product name that

is derives from the word „Jelly‟, which means a soft or somewhat elastic food product

that is usually made with gelatin and the word „Cake‟ which means a bread like food

made from dough or batter that contains flour and sugar with eggs and food shortening

(Merriam-Webster,2013).

It is based on the proponent‟s great taste for food and most specifically, desser ts.

The Jelly Cake will be Hexaf ood Co.‟s prime product and will be its trademark. The

product was made for the consumption and satisfaction of the masses and sweet lovers

that will be its target market. It will be available on the shop and seeing that in the

future, the business will expand and soon be accepting franchises.



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The proponents also extend its food service, not only for those who have sweet

tooth, but also for those who wanted their desserts customized by them and made with

personal taste.

This product is very much different among the regular cake with gelatin on

top because the whole icebox cake will be covered with gelatin from bottom to top

covered with cream and milk. It contains mostly with natural healthy ingredients mixed

with real fruits to create a tasty and sweet icebox cake dessert that others do not have.



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TABLE OF CONTENTS

DESCRIPTION PAGE

TITLE PAGE ....................................................................................................................... i

APPROVAL SHEET .......................................................................................................... ii

ACKNOWLEDGEMENT ................................................................................................. iii

EXECUTIVE SUMMARY .................................................................................................v

CHAPTER I: INTRODUCTION

Background of the Study ...............................................................................................2

Statement of the Problem ..............................................................................................4

Objectives of the Study .................................................................................................6

Significance of the Study ..............................................................................................8

Research Methodology ..................................................................................................9

Research Design ........................................................................................................9

Research Locale.........................................................................................................9

Review of Related Literature ......................................................................................10

Gantt Chart ..................................................................................................................14

Definition of Terms .....................................................................................................15



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CHAPTER II: MARKETING ASPECT

Introduction .................................................................................................................18

Market Description ......................................................................................................18

Target Market ..............................................................................................................18

Demand Analysis ........................................................................................................19

Supply Analysis ...........................................................................................................20

Competitive Edge ........................................................................................................21

Products ...................................................................................................................21

Employees ...............................................................................................................21

Consumer Taste and Preferences ................................................................................22

Packaging ....................................................................................................................22

Marketing Strategy ......................................................................................................22

Online Marketing ........................................................................................................22

Sales and Promotion ....................................................................................................23

Sales Strategy ..............................................................................................................23

Product .....................................................................................................................23

Place ........................................................................................................................23

Promotions ...............................................................................................................24

Price .........................................................................................................................24



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Distribution Channel System ......................................................................................25

Marketing Budget ........................................................................................................26

Marketing Forms .........................................................................................................27

CHAPTER III: MANAGEMENT ASPECT

Introduction .................................................................................................................31

Company Objectives ...................................................................................................32

Vision and Mission Statement .....................................................................................34

Vision ......................................................................................................................34

Mission ....................................................................................................................34

Form of Business Organization ...................................................................................35

Manpower Requirements ............................................................................................35

Job Title, Job Description and Job Specification ........................................................36

Organizational Chart ...................................................................................................40

Compensation and Benefits .........................................................................................41

Monthly Basic Salary of Employees ...........................................................................42

Schedule of Salary Payment, Cut-Off Periods and Manner of Payment.....................43

Legal Requirements .....................................................................................................43

Management Forms .....................................................................................................44



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CHAPTER IV: TECHNICAL ASPECT

Introduction .................................................................................................................49

Technical Production Description ...............................................................................50

Product ........................................................................................................................51

Product Process ...........................................................................................................54

Production Schedule ....................................................................................................57

Quality Standards ........................................................................................................58

Waste Disposal System ...............................................................................................59

Raw Materials Requirement ........................................................................................60

Machine and Equipment ..............................................................................................61

Utilities Needed ...........................................................................................................62

Production Supplies .....................................................................................................63

Furniture and Fixtures .................................................................................................64

Project Site ..................................................................................................................64

Building Perspective ...................................................................................................65

Floor Plan ....................................................................................................................66

Vicinity Map ...............................................................................................................68

Production Forms ........................................................................................................69



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CHAPTER V: FINANCIAL ASPECT

Introduction .................................................................................................................73

Statement of Financial Position ...................................................................................75

Statement of Comprehensive Income .........................................................................75

Projected Comprehensive Income ...............................................................................76

Projected Cash Flows ..................................................................................................78

Financial Ratios ...........................................................................................................81

CHAPTER VI: SOCIO-ECONOMIC ASPECT

Introduction .................................................................................................................84

Administration .............................................................................................................84

Society .........................................................................................................................84

Environment ................................................................................................................84

Employees ...................................................................................................................85

Consumers ...................................................................................................................85

Recommendation .........................................................................................................86

Conclusion ...................................................................................................................86



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LIST OF TABLES

Table 1. Pre-Operating Activities ................................................................................14

Table 2. Competitors of Jell-Oh Cakes .......................................................................21

Table 3. Advertising/Marketing Costs ........................................................................26

Table 4. Employee‟s Basic Salary ...............................................................................42

Table 5. Payment Schedule .........................................................................................43

Table 6. Serving Sizes .................................................................................................53

Table 7. Schedule of Production .................................................................................57

Table 8. List of Suppliers ............................................................................................60

Table 9. Machine and Equipment Schedule ................................................................61

Table 10. Utilities Schedule ........................................................................................62

Table 11. Supplies Schedule .......................................................................................62

Table 12. Materials Schedule ......................................................................................63

Table 13. Furniture and Fixtures Schedule .................................................................64

Table 14. Partners‟ Contributions ...............................................................................73



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LIST OF FIGURES

Figure 1. Demand Analysis .........................................................................................19

Figure 2. Supply Analysis ...........................................................................................20

Figure 3. Channel System of Hexafood Co. ................................................................25

Figure 4. Business name Logo ....................................................................................28

Figure 5. Brand Logo ..................................................................................................29

Figure 6. Facebook Page .............................................................................................29

Figure 7. OLX Page ....................................................................................................40

Figure 8. Company ID (Front) ....................................................................................44

Figure 9. Company ID (Back) .....................................................................................45

Figure 10. Daily Time Record .....................................................................................46

Figure 11. Leave Form ................................................................................................47

Figure 12. Product Prototype ......................................................................................51

Figure 13. Product Size 3” Round ...............................................................................52

Figure 14. Product Size 8” Round ...............................................................................52

Figure 15. Product Size 10 x 12” Square ....................................................................53

Figure 16. Office and Production Building .................................................................65

Figure 17. Office Layout, Ground Floor .....................................................................67

Figure 18. Office Layout, Second Floor .....................................................................68



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Figure 19. Business Location ......................................................................................69

Figure 20. Official Receipt ..........................................................................................70

Figure 21. Delivery Receipt ........................................................................................71

Figure 22. Order Form ................................................................................................14



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REFERENCES

UNPUBLISHED BOOKS ...........................................................................................87

ONLINE SOURCES ...................................................................................................87



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APPENDICES

Articles of Partnership

BIR Registration For,

BIR Registration Certificate

Business Permit (Mayor‟s Permit)

Barangay Clearance

Sanitary Permit

SEC Reservation Notice

SEC iSEC Business Registration Process

SSS Employer Registration Form (SSS-R1)

PhilHealth Employer Registration Form (ER1 Form)



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CLIPPINGS

Certification

Pre-Defense and Final Defense Pictures of Proponents and Panel

Curriculum Vitae

Mary Anne Keith L. David


Lady Marianne D. Mallari

Yna Jesseca D. Manquis

Shaira O. Nadal

Lie Ann D. Polidario



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BACKGROUND OF THE STUDY

The refrigerated cake or icebox cake is derived from similar desserts such as the

charlotte and the trifle. It was introduced first to the US during World War I. Its

popularity took off in the 1920s and 30s, as it used many commercial shortcuts and

premade ingredients. In response to the dish‟s popularity, companies that manufactured

ingredients for the cake, such as condensed milk and wafer cookies began printing “back

of the box” recipes.

A variation of icebox cake is made using pudding (usually chocolate) and graham

crackers or vanilla wafers layered in a square or rectangular baking dish. Ernestine

Emanuel, an Italian immigrant from New York, has been credited with creating the

graham cracker version. She had originally created the cake after having graham crackers

with chocolate pudding, while on her honeymoon in Atlantic City, NJ. Additional

variations include alternating layers of chocolate and vanilla pudding, or the addition of

sliced bananas or pineapples between the layers. While this can be done with cold

("instant") pudding, if given ample time in the "icebox," the best results come from

assembling the dessert with still-hot stove-cooked pudding, and then refrigerating

overnight.

Fiesta float is a type of an icebox cake which consists of sweetened whipped

cream, graham crackers and fruit cocktail. Perhaps one of the easiest dessert recipes you

can make as itrequires not baking at all. This was introduced by US to the Philippines and

became popular because many Filipinos do not own an oven and this was the next



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best thing to make at home that resembles a baked cake. Having said that if you got

invited in any Filipino special occasion these desserts have a high chance of being

present.

Early in the year 2000s, Graham crackers were introduced to the Philippine

masses. Graham crackers were introduced to the Filipinos by M.Y. San who are known

for their popular honey and chocolate flavored crackers. The company started with

commercials giving quick dessert making lessons with mangoes, peaches and fruit

cocktails with the use of whipped cream and condensed milk. After a couple of months,

M.Y San introduced Crushed Grahams, which are the crushed version of the crackers that

made their recipe even more versatile.

Gelatin desserts are well known in the country even in the 60s. One of the most

known desserts made by gelatin is the Cathedral and the Crema de Fruta.



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STATEMENT OF THE PROBLEM

The general problem of the study is to know if Jell-Oh Cakes is feasible or not.

The proponents will try to answer the specific question designated to each aspect of this

feasibility study. Since the pastry and delicacy trends in food services have emerged from

changes in the Philippine food industry, more Filipinos are eating sweet desserts and

cakes have been growing in popularity. With this understanding, it is helpful to determine

whether it is feasible or not to put up a pastry-type of business. In particular, this study

seeks to answer the following questions in each aspect:

Marketing Aspect

1. Who are the target markets of the business?

2. How would the proponents ensure stable market share?

3.

How would the business be feasible?

Management Aspect

1. What form of business organization will the business proponents adapt?

2. What is the business‟s mission and vision?

3. What are the duties and responsibilities of each staff? How would they be

compensated?



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Technical Aspect

1. What are the products and services the business will offer to the target market? What

are its respective costs and profits?

2. How would the business proponents ensure the smooth flow of operations?

3. What are the operational processes and expenses to be realized?

Financial Aspect

1. Where will the business‟s initial funds come from?

2. What is the primary goal of the business?

3. How would the business prepare itself for future risks?

Socio-economic Aspect

1. How would the business improve the quality of life of the local community?

2. How would the business practice good business ethics with their stakeholders?

3. How would the business support the socio-economic projects of their local

community?



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OBJECTIVES OF THE STUDY

The general objective of the study is to know more about the feasibility of the

delicacy business and its marketability in the masses. To determine the objectives of the

different aspects under this study are outlined hereafter.

Marketing Aspect

1.

To identify the target market of the proposed business

2. To formulate marketing strategies and programs

3. To determine the statistics of the total demand, supply situation, and the nature of

competition of the proposed business

Management Aspect

1.

To determine the form of business organization that will be beneficial to this kind of

business

2. To know the mission and vision of the business

3. To determine the duties and responsibilities of each staff and establish the appropriate

salary and wage administration policy

Technical Aspect

1. To describe the products and services the business will offer to the target market and

its respective costs and profits

2. To come up with the necessary plant size, plant layout, and service processes of the

business



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3. To determine the operation schedule of the business and to know the expenses to be

incurred in its operation

Financial Aspect

1. To determine sources of funds

2. To maximize profit and market share and to minimize expenses

3.

To forecast future cash flows and its corresponding risks through projections

Socio-economic Aspect

1. To contribute to the employment growth of the local community in the business‟s

proposed location

2. To practice corporate social responsibility in the operations of the business

3.

To find ways to minimize wastes and maximize available resources



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SIGNIFICANCE OF THE STUDY

The purpose of this study is to determine the feasibility of the proponents‟

proposed business.

Economy

The taxes to be paid will help the local government the business establishment is

located.

Ecosystem

The business will help reduce waste through proper solid waste management.

Existing Industries

It could help generate additional profit for local vendors and other small

businesses in its locale such as those in wet and dry markets.

Students

This study would help students of Business Administration Major in Financial

Management who would like to put up their own delicacy business. This would help

them know the factors of a good service that could satisfy customers.



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RESEARCH METHODOLOGY

Research Design

This feasibility would be significant to the proponents as it provides information

and ideas on how to put up a delicacy business and what type of service it has to offer,

that in turn, may affect customer loyalty, satisfaction and revenue.

The business proponents will make use of survey questionnaires for them to

determine the different factors that would affect the market of their proposed business.

The results of the survey will provide a descriptive analysis of the target market by

studying the samples of individual units from a given population using the Sloven‟s

formula. Research will be conducted within the vicinity of the business‟s proposed

location.

Research Locale

The business will be located at Alabang – Zapote Rd., Las Piñas City, in front of

University of Perpetual Help System DALTA – Las Piñas Campus.



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REVIEW OF RELATED LITERATURE

The proponents used the internet to research for topics/clippings related to the food

industry.

According to a recent review of related literature in the Psychological Bulletin, one

study reported that subjects given a varied four-course meal ate 44% more food and 60%

more calories than subjects given only one food for each of the four courses. The results

of another study showed that participants consumed much more yogurt per course when

offered three flavors instead of one. Texture, taste and appearance of food may all be

related to the amount of food a person consumes. It‟s no secret that we‟re all tempted to

overeat when given a choice between varieties of foods. The message is clear: Stay away

from the buffets! You can still eat a variety of foods, but select from vegetables and fruits

(“good carbs”) and low-fat, protein-rich items (skinless turkey, chicken, fish, soy/ tofu).

Minimize the “bad carbs”: breads, pasta and rice, and make sure that those you do eat are

whole-grain products.

The most important factors consumers consider when choosing a restaurant

ranking is food quality, service, value, and cleanliness whether their food is prepared the

way they desire itor prepared according to the food service quality standard. When

customers choose food based on a “brand” or reputation. The gap is reduced between the

customer‟s expectation of food and the actual food delivered ( Rodriguez, 2011). In

addition, Rodriguez stated that the reputation of food service operations in the Philippines

with convenience and practicality have been successful in increasing sales, improving

food quality, assuring customer satisfaction, and increasing profitability.



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In George R.R. Martin's novel A Game of Thrones, the desserts most commonly

served are of the "just" variety. When recently asked to interpret the book in pastry, Chris

Desens, program director of the Culinary Institute at Hickey College landed on

mincemeat-meringue tart with cranberry compote.

Desen'sedible interpretation of the fantasy novel is just one of many pastries

inspired by famous of works of literature at A Taste of Fiction, a fundraiser event for St.

Louis Public Library Foundation, on Fri., March 7 from 6:30 to 8:30 p.m. at Central

Library. The event will feature desserts made by 12 St. Louis pastry chefs, each inspired

by a different piece of literature, from classics such as Faust and A Midsummer Night's

Dream to modern favorites The Hunger Games and Life of Pi.

For Martin Lopez , executive pastry chef of Piccione Pastry, creating a dessert for

the event meant drawing from the flavors of his childhood. Lopez was born in Mexico

City to an Italian mother and grew up cooking with the flavors of both countries.

"I like to infuse a lot of Italian and Mexican flavors to create my cuisine and my

pastries," Lopez says. "We chose Faust for our inspiration [for A Taste of Fiction]. The

story is about a devil, evil and a lot of good stuff in abundance. We chose to make a

devil‟s food chocolate cake infused [with] cayenne pepper to make it spicy. We have

some Mascarpone cheese and we glazed [the cake] with cherries as well, so when you

bite into the cake you get the sweetness of the chocolate, the creaminess of the

Mascarpone cheese but you also get the after bite of spiciness."



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Dessert is a typically sweet course that concludes an evening meal. The course

usually consists of sweet foods, but may include other items. In world cultures there are a

wide variety of desserts including cakes, tarts, cookies, biscuits, gelatins, pastries, ice

creams, pies, puddings, custards, sweet soups and candies. Fruit is also commonly found

in dessert courses because of its naturally occurring sweetness.

Many different cultures have their own variations of similar desserts around the

world, such as in Russia, where many breakfast foods such as blint, oladi, and syrniki can

be served with honey and jam to make them popular as desserts. The loosely defined

course called dessert can apply to many foods. (Delp, Valorie. "History of Desserts".Love

to Know Gourmet. Love to Know Corp. Retrieved 18 October 2012.)

They have changed from natural candies and nuts to complex souffles and multi-

layered cakes. The ingredients available affect the range of desserts that can be made in

each region. The first desserts required minimal effort or preparation since ancient

cultures were more focused on the nutrition in foods in order to survive. Now, however,

modern day cultures have more options in the desserts available. Ice Cream went from

being a shaved ice substance with flavoring to the dairy based, sweet treat modern

children crave. (Maxwell, Alexander 31 August 2012. "Desserts Shouldn't Have to Come

Last")

The Industrial Revolution in America and Europe changed desserts (and food in

general) because they began to be mass-produced, processed, preserved, canned, and

packaged. The iconic foods soon became a staple in many households because of their

availability. Frozen foods became very popular starting in the 1920s when freezing

http://en.wikipedia.org/wiki/Candy

http://en.wikipedia.org/wiki/Nut_%28fruit%29

http://en.wikipedia.org/wiki/Souffles

http://en.wikipedia.org/wiki/Cakes

http://en.wikipedia.org/wiki/Ice_Cream

http://www.iowastatedaily.com/opinion/article_b72e764a-f2bf-11e1-b81d-001a4bcf887a.html


http://en.wikipedia.org/wiki/Industrial_Revolution

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Industrial_Revolution




http://en.wikipedia.org/wiki/Ice_Cream

http://en.wikipedia.org/wiki/Cakes

http://en.wikipedia.org/wiki/Souffles

http://en.wikipedia.org/wiki/Nut_%28fruit%29

http://en.wikipedia.org/wiki/Candy



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emerged. Also around the 1920s lunch counters and fast food restaurants were

established with increasing popularity. These processed foods became a huge part of diets

in many industrialized nations. Food has always varied with each culture and area, and,

despite the boom in mass-produced processed desserts, they have still represented

regional and ethnic cultures. Many countries have desserts and foods distinctive to their

nations or region. ( Mintz, Steven. "Food in America". Digital History.Retrieved 18 October

2012.)

The American satirist and mathematician Tom Lehrer has been rumored to have

been the first to invent the gelatin shot in the 1950s while working for the National

Security Agency, where he developed vodka gelatin as a way to circumvent a restriction

of alcoholic beverages on base. ( San Francisco - News - That Was the Wit That Was)

http://en.wikipedia.org/wiki/Lunch_counters

http://en.wikipedia.org/wiki/Fast_food_restaurants

http://www.digitalhistory.uh.edu/historyonline/food.cfm

http://en.wikipedia.org/wiki/Tom_Lehrer

http://en.wikipedia.org/wiki/National_Security_Agency


http://en.wikipedia.org/wiki/Vodka

http://www.sfweekly.com/2000-04-19/news/that-was-the-wit-that-was/



http://en.wikipedia.org/wiki/Vodka




http://en.wikipedia.org/wiki/Tom_Lehrer

http://www.digitalhistory.uh.edu/historyonline/food.cfm

http://en.wikipedia.org/wiki/Fast_food_restaurants

http://en.wikipedia.org/wiki/Lunch_counters



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GANTT CHART

Table 1 – Pre-Operating Activities

GANTT

CHART

2014 2015

Duration Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

1.) Project

planning/

Feasibility

Study 4 mos.

2.)Choosing of

Production

site and

productdevelopment 2 mos.

3.) Markettesting and

conduction

of survey 2 mos.

4.) Release

of financesfor project 2 mos.

5.)

Business/

Company

registration 1 mo.

6.)Purchasing

of

machineries,

tools,

equipmentand other

supplies 1 mo..

7.) Hiring

and trainingof personnel 1 mo.

7)Start ofoperations 1 mo.



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Table 1 shows the projected schedule for the project. A Gantt chart is one of the

most popular and useful ways of showing activities (tasks or events) displayed against

time. This detailed planning will help the proponents ensure that the schedule is workable

and effective.

DEFINITION OF TERMS

The following terms are defined for a better apprehension of the feasibility study:

Economy – deals with the production, distribution, and consumption of wealth, and with

the various related problems of labor, finance, taxation, etc.

Feasibility Study – an analysis and evaluation of a proposed project to determine if it (1)

is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable.

Feasibility studies are usually conducted where large sums are at stake

Gantt Chart - illustrates the start and finish dates of the terminal elements and summary

Proponent – a person who puts forward a proposition or proposal

Research Design – typically include how data is to be collected, what instruments will be

employed, how the instruments will be used and the intended means for analyzing data

collected

Research Locale – refers to a specified area and/or subject that is being studied in a

research project



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Research Methodology – used to collect information and data for the purpose ofmaking

business decisions

Stakeholder – a person, group or organization that has interest or concern in an

organization



17




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INTRODUCTION

The feasibility‟s marketing aspect is shown in this chapter. All of the information

gathered was all analytically arranged and the sequence of questions rose in the statement

of the problem.

Marketing involves a distinguished range of processes concerned with finding out

what our target market want and to be able to provide such products or services that will

meet their satisfaction that benefit the business‟s profit. This also involves the four key

elements, which are preferred to as the 4P‟s or the marketing mix.

MARKET DESCRIPTION

HEXAFOOD CO. views itself as a competitive company with its prime products,

the scope and level of satisfaction it provides to the customers and the efficiency of the

company as a whole. Geographically, the company will locate its efforts in KM17

Alabang-Zapote Rd., Talon II wherein the area is composed of households, employees

and students residing in Las Piñas.

TARGET MARKET

The target market of the Jell-Oh Cakes will be the residents of Talon II and its

nearby communities.



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DEMAND AND SUPPLY ANALYSIS

Barangay Talon II has more than 552,000 numbers of households including more

than a hundred of private companies and a hundred of establishments. This can create a

big demand for delicacies. Jell-Oh Cakes being a lot cheaper and having good services

can persuade this market.

Figure 1 - Demand Analysis

Figure 1 shows the percentage of willingness to buy Jell-Oh Cakes. Based on the

data obtained from 200 respondents, 91% of the respondents had a positive response with

regards to our product. On the other hand, only 9% of the respondents were reluctant and

indifferent when asked if they would be willing to buy or even try Jell-Oh Cakes.

91%

9%

Willing to buy

Indifferent



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Figure 2 – Supply Analysis

Figure 2 shows the consistency of the supply of Jell-Oh Cakes to its customers.

Hexafood Co. assures the supplies of the product will be sufficient from the very start of

the business operations. According to the Law of Supply and Demand, the availability of

the product and the desire for such affects the price. Therefore, Hexafood Co. will always

see to it that they can meet the demand for the product by providing sufficient supply to

the public.

Total Potential Demand

With the 42,855 of population in Barangay Talon II, Las Piñas City, Hexafood Co.

has gathered high percentage of positive responses stating that Jell-Oh Cakes would be

most likely entertained. Hexafood Co. has accumulated data from 200 respondents

consisting of students, employees, and households.



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COMPETITIVE EDGE

Table 2 – Competitors of Jell-Oh Cakes

Brand Price Food Quality Eco-friendly

Jell-Oh

Cakes

Low Yes Yes

Shakey‟s

Restaurant

High Yes Yes

Sinangag

Express

Medium Yes Yes

Table 2 shows the competitors of Jell-Oh Cakes and its competitive edge against

other companies that offer similar products, although the two competitors listed only

offers desserts as their side menus. Jell-Oh Cakes aims to be one of the top dessert bars

that offer the best food quality for cheaper and affordable prices.

Products

Jell-Oh Cakes will offer refrigerated cakes varying in flavors and sizes. Jell-Oh

Cakes will also serve to cater in birthdays and other similar events.

Employees

Hexafood Co.‟s employees will enjoy a friendly and productive work environment

and experience benefits they are entitled to.



22


Price

This is one of the factors that could make a proposed business‟s demand. Prices

will vary depending on its size and flavor. The prices of the event packages will depend

on the quantity the customer needs.

CONSUMER TASTE AND PREFERENCES

The consumer‟s varying taste and preferences will affect the market demand. To

deal with such changes, Jell-Oh Cakes are willing to make other variations depending on

the changes to be seen in the market.

PACKAGING

The over-all look of a certain food or dish affects the enthusiasm of the consumers

in patronizing a product. Nowadays, a lot of costumers post pictures of their meal on

Instagram and other social media sites, thus making an additional advertisement for the

company itself.

MARKETING STRATEGY

To further promote Jell-Oh Cakes to the market, the following marketing strategies

are to be used in addition to the price and promotion.

ONLINE MARKETING

Social media sites such as Facebook will be used to widen the promotion and

advertisement of Jell-Oh Cakes. We will also make use of online blogs, search engine

marketing, advertising, and electronic-mail for a more convenient means of

communication.



23


SALES PROMOTION

This includes communication activities that give additional value to customers.

The following forms will be used:

a) Free Taste: Bite-size pieces will be offered to customers that pass by the stall.

b)

Discounts: This will be given for bulk orders and event packages.

SALES STRATEGY

Hexafood Co. aims to deliver satisfaction to its customers. A new twist in the usual

refrigerated cakes at an affordable price will attract and satisfy the market. The four (4)

P‟s of the marketing mix will be observed as follows:

Product

Jell-Oh Cakes adds a twist in your usual refrigerated cakes. Sandwiched layers of

fruits, cream, and jell-o covered with icing and topped with more fruits, this dessert is a

must-taste for everyone!

Place

The proponents have chosen KM17 Alabang-Zapote Rd., Talon II..Establishments

nearby are households, schools, and other businesses.



24


Promotions

Promotions are intended to inform and persuade customers to buy a certain

product. The following tools will be used by the proponents to expand their market:

Sales Promotion: This includes communication activities that give additional value to

customers. The following forms will be used:

a)

Free Taste: Bite-size pieces will be offered to customers that pass by the stall.

b) Discounts: This will be given for bulk orders and event packages.

Aside from such, the proponents will also make use of the advertising to make

impressions and attract more customers. The following mediums will be adapted:

a) Print Advertising: This includes flyers and tarpaulins.

b) Online Marketing: Jell-Oh Cakes will be advertised through OLX.ph and blogs,

e.g. Tumblr and Blogger.

c) Social Media Advertising: Different social media sites will be used such as

Facebook.

Price

Jell-Oh Cakes are affordable desserts that range from P60.00 for 3” cake and

P220.00 for the 8”round cakes and P300.00 for the 10x12” cakes.



25


HEXAFOOD CO.

(Manufacturing)

JELL-OH CAKES

(Food Store)

CONSUMERS

DISTRIBUTION CHANNEL SYSTEM

Figure 3 – Channel System of Hexafood Co.

Figure 3 shows the three-level channeling process of Hexafood Co. The

distribution starts with the manufacturing process; the finished goods will be delivered to

the food store, then to the consumers. Direct sales to the customers may be made through

bulk orders and event packages.



26


MARKETING BUDGET

Table 3 – Advertising/Marketing Costs

Advertising/Marketing

MaterialsQty.

Unit

Cost

Total

Cost

Flyers 95/month

(95x12 =

1,140)

15

17,100.00

Tarpaulins 2 450 900.00

TOTAL ADVERTISING/MARKETING COST 18,000.00

Table 3 illustrates the budget allocation for advertising and market promotions. A

total of Php18,000 will be used for such expenses.



27


MARKETING FORMS

Figures 4 to 9 display the proposed marketing forms and screenshots of social

media pages utilized by the business to promote Jell-Oh Cakes

Figure 4 – Business Name Logo



28


Figure 5 – Brand Logo



29


Figure 6 – Facebook Page

Figure 7 – OLX Page



30




31


INTRODUCTION

The management aspect covers the organization and the coordination of the

activities of a business in order to achieve defined objectives. Management is often

included as a factor of production along with machine, materials, and money. The size of

the management can range from one person in a small organization to a broader set of

directors.

It also focuses on the human resource of a firm. Human Resource Management

(HRM) is the process of hiring and developing employees so that they become more

valuable to the organization. It attends to the recruitment, selection, and management of

people who work in the organization. HRM includes conducting job analyses, planning

personal needs, recruiting the right people for the job, providing benefits and incentives,

evaluating performance, resolving disputes, and communicating with all the employees at

all levels, from the rank and file to the managerial positions. A superior HRM has the

following core qualities: extensive knowledge of the industry, leadership, and effective

negotiation skills. Effective HRM enables all employees to work productively towards

the company‟s goals and objectives.

Overall, the management aspect seeks to coordinate the efforts of people to

accomplish goals and objectives using available resources efficiently and effectively.



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COMPANY OBJECTIVES

Goals and Objectives

Year-long goals and objectives

Goal: To satisfy customers by meeting their wants, needs and demands, and exceeding

their expectations

Objectives:

To be able to continue developing and innovating the product with the current trends

To develop an effective marketing strategy that will persuade the masses

Short-term goals and objectives

Goal: To be able to compete and get ahead with the competitors‟ offered products

Objectives:

To be able to compete locally or within our target market

To establish a trademark among the residents of Las Piñas City.



33


Medium goals and objectives

Goal: To be able to make a huge market share with our prime product

Objectives:

To expand the business‟s property, plant, and equipment (PP&E) and to be able to

widen the company‟s operation in other areas

To be able to get potential investors that would like to invest in the company

Long-term goals and objectives

Goal: To be the leading and well-known dessert company in producing delicious yet

affordable jelly-cake dessert in the Philippines that will eventually see itself exporting its

product in other countries

Objectives:

To be able to compete globally

To be able to gain 50% - 70% of the current market share within the industry.



34


VISION AND MISSION STATEMENT

Hexafood Co. visualizes itself as one of the leading dessert companies in the

country. It envisages itself giving customer satisfaction that exceeds their expectations.

To achieve its vision, Hexafood Co. promises to offer quality products that will be both

efficient and effective on the part of the consumers.

Vision

Hexafood Co. intends to provide our customers with the best food services from

beginning to end, with friendly and productive personnel, delightful and delectable food

quality, brief and careful delivery of such, and prices that equal the value of our products‟

quality, surpassing our competitors in the shortest time possible.

Mission

Hexafood Co. provides delicious and delectable desserts with the best food

services at affordable prices and with a faster turnaround time than our competitors.

Hence, the business will offer customer satisfaction to its consumers to create enough

repeat customers to develop a stable client base and bring about sufficient profits to meet

the needs of the business and the financial goals of the partners.

Hexafood Co. values a culture of warmth and belongingness, courage to try

beyond the status quo in order to grow, and accountability for our actions, making us

strive to do our best in everything we do.



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FORM OF BUSINESS ORGANIZATION

Hexafood Co. is limited partnership in nature where there are at least three (3)

people managing, controlling, and supervising the business operations. Each partner will

conform to a pro rata share in profits and losses.

MANPOWER REQUIREMENTS

Hexafood Co. will need an estimate of eight (8) staff members to be directly

involved in the business operations. One of the partners will occupy the top management

positions, namely the General Manager. Other positions include the Cashier and his

associate, and the Confectioner and his assistant, two service crews, and a security guard.

A General Manager has broad, overall responsibility for a business or organization. He is

in charge for providing strategic leadership for the company by working with the top

management to establish long-term goals, objectives, strategies, and plans for the firm. A

Cashier is responsible for recording the financial transactions of the firm. He shall give

regular reports to the General Manager about the inflows and outflows of cash of the

business. A Confectioner mixes, shapes, and cooks sweeteners and other ingredients to

produce confectionery.



36


JOB TITLE, JOB DESCRIPTION AND JOB SPECIFICATION

Job Title: General Manager – a person who provides strategic leadership for the

company by working with his subordinates to establish long-range goals, strategies, plans

and policies.

Job Description: A General Manager is responsible in creating, communicating and

implementing the organization‟s vision, mission, and overall direction. He plans,

develops, organizes implements, directs, and evaluates the organization‟s fiscal function

and performance.

Job Specification:

Male or Female 21 years old and above

Have at least college degree with related business course

Strong interpersonal skills with the ability to manage, implement and monitor

effective business and financial system and procedures

Job Title: Cashier – provide last-desk customer service by taking payments from the

customers in exchange of goods or services

Job Description: A Cashier is expected to greet the customers as they arrive, provide

them with information regarding products and direct them accordingly. They scan

merchandise, accept cash payments, and disburse cash with approval of the General

Manager.



37


Job Specification:

Preferably female, 18 years old and above

Must have attained at least two years in college, much preferable with a business

related course

Have basic mathematical, analytical, and accounting skills

Job Title: Confectioner – one who prepares the cakes and other confectioneries.

Job Description: A Confectioner conducts general confections making, assists in the

fulfillment of production goals, maintains quality control, and complies with health and

safety standards.

Job Specification:


Have at least college degree with related a course

Displays an aptitude for food production

Able to discern different flavors

Have an appreciation for sweets and other confectioneries

Job Title: Service Crew – one who directly serves and delivers enjoyable experience to

the diners.



38


Job Description: A food service crew is made up of variety of workers who provide

customer service and gets the order and acts as a waiter or waitresses.

Job Specification:


Have at least a two-year college degree

Displays an aptitude for customer service

Able to empathize and give the needs of the customers

Have a bright and cheerful personality

Job Title: Security Guard – one who ensures the safety of the employees and the diners.

Job Description: A food Security Guardmaintains safe and secure environment for

customers and employees by patrolling and monitoring premises and personnel.

Job Specification:

High School diploma or GED equivalent

One (1) year of experience as a security guard or police officer; or a combination of

education, training, or work experience which provides the required knowledge, skills

and abilities to perform the duties of this position.

Ability to providing quality customer service.

Ability to handle typical and crisis situations efficiently and effectively at client site.

Knowledge in security techniques and procedures.



39


Neat and professional appearance.

Friendly and professional demeanor.

Ability to prepare clear and accurate reports and be able to speak and write

effectively.

Negative result on pre-employment drug screen.

Ability to maintain satisfactory attendance and punctuality standard.

Ability to work under stressful conditions, have keen observation qualities to

remember details on incidents and locations.

Ability to perform all physical requirements of the position; agree to maintain a

Drug-Free workplace.

Ability to perform essential functions of the position with or without reasonable

accommodation.

Work cooperatively, courteously, yet firmly with all segments of the general public.

Ability to establish and maintain effective working relationships with other

employees, Community Officials, and the general public.



40



(General Manager)

Head Cashier

AssistantCashier

HeadConfectioner

AssistantConfectioner

Service CrewServiceCrew

SecurityGuard

ORGANIZATIONAL CHART

Line-staff organizational structure has been used which according to Judge (2006)

is a type of structure that combines the flow of information from the line structure with

the staff departments that service, advice and support them.

Figure 11 - Organizational Structure of Hexafood Co.

Figure 11 shows the organizational chart of Hexafood Co. that represents the

proponent‟s division of works, functions, duties and workflow of individuals in each

department. Mary Elaine Escandor is the General Manager who has overall responsibility

for managing both the revenue and cost elements of a company‟s income statement. She

usually oversees most or the entire firm‟s marketing functions as well as the day-to-day

operations of the business. The Head Cashier who oversees the monetary transactions of



41


the business. The Assistant Cashier coordinates with the Head Cashier in handling the

company‟s cash balances. The Head Confectioner makes sure that the quality of the

products is maintained. The Assistant Confectioner who assists the Head Confectioner in

the production process. Two Service Crews and one Security Guard directly report to the

General Manager.

COMPENSATION AND BENEFITS

EMPLOYMENT STATUS

Contractual Employees

o Employees will be given a six-month contract. As the contract expires, they will be

informed through issuance of a “Notice of Expiration of Service Contract”. If he/she

would be extended, he/she will receive a “Notice of Extension of Service Contract”.

o The following are the benefits of the employee:

Social Security System (SSS) contribution is a government program aimed at

providing basic needs to citizen who are retired, unemployed or unemployable

due to a disability or disadvantage.

Pag-Ibig Contributionis a provident savings system for employees, private or

public employees, with housing as primary investment.

PhilHealth insures a sustainable national health insurance program for all people.



42


MONTHLY BASIC SALARY OF EMPLOYEES

Table 4 - Employee’s Basic Salary

POSITION MONTHLY SALARY

General Manager Php 2,500

Head Cashier 13,980

Assistant Cashier 13,980

Head Confectioner 15,000

Assistant Confectioner 13,980

Service Crew (Php13,980 x 2) 27,960

Security Guard 13,980

TOTAL Php 101,380

Table 4 shows the basic salary of the employees who worked in Hexafood Co. It

was arranged according to the person in-charge in the higher position down to the entry

level positions.



43


SCHEDULE OF SALARY PAYMENT, CUT-OFF PERIODS, AND MANNER OF

PAYMENT

Table 5 – Payment Schedule

Schedule of Salary Payment Every 15th

and 30th

of the month

Cut of Period Every 13th

to 28th

of the month

for the first cut-off

Manner of Payment Cash card/ATM card

LEGAL REQUIREMENTS

Companies need to conform to such requirements in serving business permits. It

must be done in a week before business operations starts.

Barangay Clearance Php 75.00

Mayor's Permit 2000.00

Sanitary Permit 80.00

BIR Registration 1000.00

Articles of Partnership 100.00

Securities and Exchange Commission 120.00

Initial Deposit for Bank ATM 500.00

TOTAL Php 3,875.00



44


MANAGEMENT FORMS

Figure 8-11 are the different forms to be used by the Hexafood Co. for its daily

operations.

Figure 8 – Company ID (Front)



45


Figure 9 – Company ID (Back)



46


Figure 10 – Daily Time Record

HEXAFOOD CO.

KM17 Alabang-Zapote Rd. Talon II, Las Piñas City

0917-3855746

MONTH:

Employee's Name:

Designation:

DATE TIME INTIME

OUT

OVER

TIMESGN

1

2

34

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

3031

APPROVED BY:

Authorized Officer



47


Figure 11 – Leave Form



48




49


INTRODUCTION

Hexafood Co. is a new entrant in the food industry that offers a unique jelly icebox

cake created with gelatin, crackers, cream and different varieties of fruits. The product

would be a dessert and at the same time, pastry. The prime component of the mixture will

be the gelatin and the honeyed crackers.

The word Jell-Oh Cake is used by the proponents as the product name that is

derives from the word „Jelly‟ , which means a soft or somewhat elastic food product that

is usually made with gelatin. And the word „Cake‟ which means a bread like food made

from dough or batter that contains flour and sugar with eggs and food shortening

(Merriam-Webster 2013). It is based on the proponent‟s great taste for food and most

specifically, desserts. The Jelly Cake will be HexaFood Co.‟s prime product and will be

its trademark. The product was made for the consumption and satisfaction of the masses

and sweet lovers that will be its target market. It will be available on the shop and seeing

that in the future, the business will expand and soon be accepting franchises. The

proponents also extend its food service not only for those who have sweet tooth but also

for those who wants their desserts customized by them and made with personal taste.

This product is very much different among the regular cake with gelatin on top

because the whole icebox cake will be covered with gelatin from the bottom to top and

covered with cream and milk. It contains mostly with natural healthy ingredients mixed

with real fruits to create a tasty and sweet icebox cake dessert that others don‟t have.



50


TECHNICAL PRODUCTION DESCRIPTION

This will discuss the technical necessities of the business, highlighting the cost of

raw materials, labor, supplies and utilities needed in the operation. It will also discuss the

waste disposal, the number of laborers and the quantity of product that will be distributed.

1. The quantity and quality of the product to be produced

The product‟s quantity will be entirely dependent on the one day production a

week settled and scheduled by the company‟s management.

2. Specification of raw materials

The raw materials to be used in the production of the Jelly cake will be mainly

crackers, gelatin, fruits and cream that is personally made by the company‟s

patisserie.

3. Labor needed

The production of the Jelly cakes requires a two working hours of labor. The

employees will be given trainings on the right handling and shelf life of the products

in order to be able to give satisfactory service to the customers that is needed for the

business. The production needs two (2) patisseries.

4. Waste disposal

The proponents are advocates of solid wastes disposal management; therefore, the

waste generated from the production and overall operation of the business is going to



51


be properly disposed and segregated in biodegradable and non-biodegradable wastes.

The unnecessary part of the fruits can be turned and used as a fertilizer since it is a

form of a biodegradable waste. The non-biodegradable wastes such as the milk cans

and other wastes are going to be recycled properly or converting it to cash by selling

it to junk shops.

PRODUCT

Figure 12 – Product Prototype

(Classic Mango Float Cupcake)

The consumer will have 3 sizes to choose from: the cupcake size (3”

round.), the round cake (8” round), and the square cake. (10 by 12” square). These sizes

have its corresponding serving size. (See Table 6).



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Figure 13 – Product Size 3” Round

Figure 14 – Product Size 8” Round



53


Figure 15 – Product Size 10 by 12” Square

Table 6 – Serving Sizes

SERVING SIZE NO. OF

SERVINGS

Cupcake 3” round 1 person

Round Cake 8” round 12 persons

Square Cake 10 by 12” square 24 persons (cut

4x8)



54


PRODUCT PROCESS

1. Preparing the clean utensils and equipments needed.

2. Prepare all ingredients needed and inspect raw materials in the production.

3. After ensuring the quality of raw materials and utensils the next step is to

proceed with the making of the Jell-Oh Cake.

Equipment:

Measuring cups, Baking tools, Kitchen utensils

Procedure:

CLASSIC MANGO FLOAT

1. Cook gelatin, let it set at the bottom of the container.

2. Mix together the all-purpose cream, condensed milk, and orange pulp. Add food

coloring to the mixture until desired color is achieved.

3.

Layer graham crackers on the gelatin. Make sure the gelatin is already settled.

Line the container with mango. Spread about an inch of the orange-cream

mixture. Sandwich the filling with another layer of graham crackers and finish

with the remaining cream mixture. Top with mangoes.

4. Chill before serving.

STRAWBERRY SURPRISE


2. Mix together the all-purpose cream, condensed milk, and strawberry jam. Add

food coloring to the mixture until desired color is achieved. Set aside.



55


3. Layer graham crackers on the gelatin. Make sure the gelatin is already settled.

Spread about an inch of the strawberry-cream mixture. Sandwich the filling with

another layer of graham crackers and finish with the remaining cream mixture.

Top with strawberry slices.


MOCHA MAGNIFICO


2. Mix the all-purpose cream, condensed milk and dissolved coffee. Set aside.


Spread about an inch of the coffee-cream mixture and sprinkle with crushed

chocolate wafer sticks. Sandwich the filling with another layer of graham crackers

and finish with the remaining cream mixture. Top with Knick Knacks and

remaining wafer sticks.


KIWI CLOUD CAKES

1.

Cook gelatin, let it set at the bottom of the container.

2. Mix together the all-purpose cream, condensed milk, cream cheese and calamansi

juice. Set aside.


Spread about an inch of the calamansi-cream mixture. Sandwich the filling with



56


another layer of graham crackers and finish with the remaining cream mixture.

Decorate with kiwi wedges and crushed graham crackers.


UBER UBE


2. Mix together the all-purpose cream , condensed milk and ube. Set aside.

3.

Layer graham crackers on the gelatin. Make sure the gelatin is already settled.

Line the container with macapuno. Spread about an inch of theube-cream mixture.

Sandwich the filling with another layer of graham crackers and finish with the

remaining cream mixture.




57


PRODUCTION SCHEDULE

Table 6 shows the production schedule. Production schedule is for responding to a

production order by generating the daily production schedule, generating raw material

requisitions for all production order scheduled for the next day.

Table 7 – Schedule of Production



58


QUALITY STANDARDS

To ensure the quality of the products, the proponents chose “Kaizen”or continuous

improvement quality. It is a technique used to establish and maintain quality environment

in an organization. The proponents made use of the following check points using the rule

of TQM;

1.

Structuralize

Dispose or return materials that are not needed in the production.

The „needed things‟ must be stored in a low, medium and high usage manner.

Treat defects, leakage, breakage and their causes right away.

2. Systemize

Everything must have a designated name and place.

The working place must always be kept clean and organize.

Filing standards and master lists.

A first in, first out usage of consumption of raw materials must be followed.

Proper zoning and placing marks.

Easy-to-read notes/notices

3.

Sanitize

“Clean As You Go” policy is needed for the employees.

Often cleaning and sanitary inspection.

Clean even the areas where people do not notice.

Cleaning inspections and correct minor problems.



59


4. Standardize

“Staff Only” signs and marks to prohibited areas.

Fire extinguisher and “Exit” signs.

Work instructions and “Passed” labeled cooking equipments.

Proper electrical wiring and switch labels.

Energy preservation.

Transparent containers for easy inventory.

Prevent noise at work place.

Office labels and name plates.

Practice drilling with emergency situations.

Organizational charts and performance indicators.

Quarterly 5S Audit and Improvements.

WASTE DISPOSAL SYSTEM

The proponents are advocates of solid wastes disposal management; therefore, the

waste generated from the production and overall operation of the business is going to be

properly disposed and segregated in biodegradable and non-biodegradable wastes. The

unnecessary part of the fruits can be turned and used as a fertilizer since it is a form of a

biodegradable waste. The non-biodegradable wastes such as the milk cans and other

wastes are going to be recycled properly or converting it to cash by selling it to junk

shops.



60


RAW MATERIALS REQUIREMENT

Table 8 - List of Suppliers

Name of the Company Address

3L‟s Fruit Stand Stall #55 Lozada Market,

Alabang-Zapote Rd. Las Piñas

City

Bong and Omas Fruit Stand 203, Alabang-Zapote Rd. Las

Piñas City

Puregold 399 Real St., Talon I, Las

Piñas City.

Super8 Grocery Warehouse Uniwide Metro Mall, 43 Real

Street, Pamplona I, Alabang-

Zapote Road, Las Piñas City

Proline Plastic Company First Valenzuela Industrial

Company, Kadiwa, BancalExtension

Meycauayan, Bulacan, Metro

Manila

Meridien Plastic Manufacturing

Corporation

26, Impex Compound, Las

Piñas, 1700 Metro Manila



61


MACHINE AND EQUIPMENT

The proponents canvassed for machineries and equipments to be used in the

business operations. These are to be estimated to have a five-year useful life except for

some items that are recurring every year. The proponents made sure that the items listed

below are heavy-duty and of high quality to ensure longer life spans.

Table 9 – Machine and Equipment Schedule

Item Price/unit Qty TotalUseful

Life

COFFEE MAKER 1149.75 1 1149.75 5

AIRPOT 249.75 1 249.75 5

REFRIGERATOR 20245 2 40490 5

BLADE CEILING FAN 244.75 1 244.75 5

LIGHTING FIXTURES 1000 9 9000 1

CALCULATOR 300 1 300 1

WATER DISPENSER 5599.75 1 5599.75 5

CASH REGISTER 20000 1 20000 5

Total 77034



62


UTILTIES NEEDED

The proponents would be needing water for hygienic purposes in the production

area and as well in the whole business itself. They would also be using electricity and

telephone connections to better serve their customers.

Table 10 – Utilities Schedule

ITEMS Monthly Annual

POWER ANDELECTRICITY 5368.6 64423.2

WATER 540 6480

TELEPHONE

CONNECTION 3500 42000

Total 9408.6 112903

PRODUCTION SUPPLIES

The following are needed in the day-to-day operations of the business.

Table 11 – Supplies Schedule

Supplies Schedule:

Item Price/unit Qty Total

BALLPEN 40 3 120

BONDPAPER 77 1 77

RECORD BOOK 120 1 120

PLASTIC GLOVES 100 8 800

Total 1117



63


Table 12 – Materials Schedule

Item Price/unit Qty Total

ALL-PURPOSECREAM 44 22.2 L 2640

LIBERTYCONDENSEDMILK 38.5 11.25 L 1443.75

GRAHAM

CRACKERS 29.5 18.75KGS 1106.25

CRUSHED

GRAHAM 33.5

11.25

KGS 753.75

GULAMAN 30 1.125KGS 753.75

MANGO FRUIT 15 135 PCS 2025

ORANGEFLAVORING 26.25 450 mL 590.63

STRAWBERRYFRUIT 45 38 PCS 843.75

STRAWBERRYJAM 44.5

9.375KGS 1668.75

OREOOVERLOAD 39.45 5.14 KGS 1479.38

CHOCOLATESYRUP 50 7.5 KGS 1875

CALAMANSI 159.375KGS 562.5

CREAM CHEESE 48.25 3.75 KGS 1809.38

GREEN FOODCOLORING 26.25 750 mL 984.38

UBE HALAYA 50.3512.75KGs 1888.13

SWEETENEDMACAPUNO 39.15 7.5 KGS 1468.13

STIK- O 35 8 PCS 262.5

NESCAFECLASSIC

COFFEE 28.8 8PCS 216KNICK-KNACKS 25.95 8PCS 195.63

Total 22567



64


FURNITURES AND FIXTURES

The following table shows the list of furniture and fixtures to be used in the

business operations. An estimated useful life of five years is projected.

Table 13 – Furniture and Fixtures Schedule

PROJECT SITE

The production site of “Jell-Oh Cakes” is located at Km17 Alabang-Zapote

Rd.,Talon II, LasPiñas City. They chose this location for it is around the school, offices,

and residential area. The consumers are nearby so it will give the distribution channel of

Jell-Oh Cakes.



65


BUILDING PERSPECTIVE

Figure 16 – Office and Production Building

The figure shows the office and production‟s building perspective of Jell-Oh Cakes.



66


FLOOR PLAN

The next two figures show the floor layout of the business location. The ground floor is

the dining area, together with the toilet and kitchen while the second floor is for the office of the

store manager and the partners.

Figure 17 – Office Layout, Ground Floor



67


Figure 18 – Office Layout, Second Floor



68


VICINITY MAP

Figure 19 – Location of Hexafood Co.

The figure shows the location of Hexafood Co. and how the customers outside and

inside Las Piñas can locate the office if ever they have inquiries. It is along the Alabang-

Zapote road. Customers may easily take a jeep, bus, or their own car to get there.



69


PRODUCTION FORMS

The figures below shows the different production forms to be used for the daily

operations of the business. It consists of the Official Receipt, Delivery Receipt and Order

Form.

Figure 20 – Official Receipt



70


Figure 21 – Delivery Receipt



71


Figure 22 – Order Form



72




73


INTRODUCTION

Financial study includes the overall computation of the business operation. It

includes the assets of the business, expenses and its income. Here the proponents will

focus to the income statement, cash flow, operating expenses, balance sheet and ratio

analysis.

Objectives:

1. To know the profit and loss distribution of each partners.

2. To know if the business will become profitable in the future.

3. To know the inflows and outflows of the business.

A. Sources of Financing

The sources of funds were obtained from the agreement of the partners to have an

initial investment of P 100, 000.00 each.

Table 14 – Partners’ Contributions

Name of Partner Kind Investment

David, Mary Anne Keith L. Capitalist P 100,000.00

Escandor, Mary Elaine B. Capitalist P 100,000.00

Mallari, Lady Marianne D. Capitalist P 100,000.00

Maniquis, YnaJesseca D. Capitalist P 100,000.00

Nadal, Shaira O. Capitalist P 100,000.00

Polidario, Lie Ann M. Capitalist P 100,000.00

TOTAL P 600,000.00



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B. Legal Requirements

Barangay Clearance Php 75.00

Mayor's Permit 2000.00

Sanitary Permit 80.00

BIR Registration 1000.00

Articles of Partnership 100.00

Securities and Exchange Commission 120.00

Initial Deposit for Bank ATM 500.00

TOTAL Php 3,875.00



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HEXAFOOD CO.

PROJECTED STATEMENT OF FINANCIAL POSITION

DECEMBER 31,2015-2019

ASSETS

CURRENT ASSETS: 2015 2016 2017 2018 2019

CASH 517208 677030 1036038 1611608 2311134

Inventory 128867 138216 144991 152021 159401

Total Current Assets: 646075 815247 1181028 1763629 2470535

NON-CURRENT ASSETS:

Tools 10000 10000 10000 10000 10000

Furniture and Fixtures 44700 44700 44700 44700 89400

Less: Accumulated Depreciation 8940 17880 26820 35760 44700

Carrying Amount 35760 26820 17880 8940 44700Equipment 77034 77034 77034 77034 154068

Less: Accumulated Depreciation 22847 36394 49940 63487 77034

Carrying Amount 54187 40640 27094 13547 77034

Total Noncurrent Assets: 99947 77460 54974 32487 131734

TOTAL ASSETS 746022 892707 1236002 1796116 2602269

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES:

PROVISION 47660 49840 52123 54520 57037

SSS PREMIUM PAYABLE 10980 11529 12105 12711 13346

PHILHEALTH PREMIUM PAYABLE 2325 2441 2563 2691 2826HDMF PREMIUM PAYABLE 1400 1470 1544 1621 1702

WITHHOLDING TAXES 1542 1619 1700 1785 1874

SALARIES PAYABLE 98880 103824 109015 114466 120189

LIGHT,POWER & WATER PAYABLE 9409 9409 9409 9409 9409

VAT PAYABLE 12841 32724 34223 35796 38665

FINAL WITHHOLDING TAXES 2885 14255 33657 55979 81339

INCOME TAX PAYABLE 9896 61094 144245 239910 348598

TOTAL LIABILITIES 197817 288205 400584 528887 674986

PARTNERS' EQUITY

David, Capital 86848 91731 125717 193186 298695

Escandor, Capital 113963 145846 206832 301301 433810Mallari,Capital 86848 91731 125717 193186 298695

Maniquis, Capital 86848 91731 125717 193186 298695

Nadal, Capital 86848 91731 125717 193186 298695

Polidario,Capital 86848 91731 125717 193186 298695

TOTAL PARTNERS' EQUITY 548205 604502 835417 1267228 1927283

TOTAL LIABILITIES AND PARTNER’S

EQUITY 746022 892707 1236002 1796116 2602269



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HEXAFOOD CO.

PROJECTED STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31,2015-2019

CASH FLOWS FROM OPERATING

ACTIVITIES: 2015 2016 2017 2018 2019

NET INCOME 23090 142552 336573 559790 813394

ADD: DEPRECIATION-EQUIPMENT 22847 22847 22847 22847 22847

DEPRECIATION- FURN. AND FIX 8940 8940 8940 8940 8940

DEPRECIATION- TOOLS 16311 16311 16311 16311 16311

INC. IN ALLOWANCE FOR

NORMAL SPOILAGE 28407 1420 1491 1566 1644

INC. IN ALLOWANCE FOR

UNANTICIPATED LOSSES 19253 760 792 831 873

INCREASE IN SS PREMIUMPAYABLE 10980 549 576 605 636

INCREASE IN WITHHOLDING

TAXES PAYABLE 1542 77 81 85 89

INCREASE IN PHILHEALTH

PREMIUM PAYABLE 2325 116 122 128 135

INCREASE IN HDMF PREMIUM

PAYABLE 1400 70 74 77 81

INCREASE IN VAT PAYABLE 12841 19883 1498 1573 2869

INCREASE IN INCOME TAX

PAYABLE 9896 51198 83152 95664 108688

INCREASE IN SALARIES PAYABLE 98880 4944 5191 5451 5723INCREASE IN UTILITIES PAYABLE 9408.5 0 0 0 0

SUBTOTAL 243030.1 127115 141075 154079 168835

TOTAL 266120 269667 477648 713869 982230

LESS: INCREASE IN RAW MATERIALS 56814 3977 3062 3193 3352

INCREASE IN FINISHED GOODS

INVENTORY 72053 5372 3712 3837 4027

SUBTOTAL 128867 9349 6774 7030 7380

NET CASH FLOW FROM OPERATING

ACTIVITIES 137253 260318 470873 706838 974850

CASH FLOWS FROM INVESTINGACTIVITIES:

Acquisition of Furniture and Fixtures -44700 0 0 0 -44700

Acquisition of Equipment -77034 -9300 -9300 -9300 -86334

Acquisition of Tools -26311 -16311 -16311 -16311 -16311

NET CASH FLOWS FROM INVESTING

ACTIVITIES -148045 -25611 -25611

-

25610.5 -147345



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CASH FLOWS FROM FINANCING

ACTIVITIES:

INITIAL INVESTMENTS OF THE OWNERS 600000 0 0 0 0

DRAWINGS OF THE OWNERS -72000 -72000 -72000 -72000 -72000

FINAL WITHHOLDING TAX AGAINST

PARTNERS' CAPITAL 0 -2884.8

-

14255.2

-

33657.3

-

55979.0

NET CASH FLOWS FROM FINANCING

ACTIVITIES 528000

-

74884.8

-

86255.2 -105657 -127979

NET CASH FLOWS 517208 159822 359007 575571 699527

ADD: CASH BALANCE, BEGINNING 0 517208 677030 1036037 1611608

CASH BALANCE,ENDING 517208 677030 1036037 1611608 2311134



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81


HEXAFOOD CO.

Ratio AnalysisFor years ending December 31,2015-2019

2015 2016 2017 2018 2019

PROFITABILITY

RATIOS

Gross Profit Ratio 4526259 4978885 5476773 6024451 6626896

Sales 3530609 3793849 3975739 4163765 4361110

Cost of Sales 995650 1185036 1501034 1860686 2265786Gross Profit

Margin 22.00% 23.80% 27.41% 30.89% 34.19%

Gross Profit

Margin

Net Profit Margin 23090 142552 336573 559790 813394

Net Income 4526259 4978885 5476773 6024451 6626896

Sales 0.51% 2.86% 6.15% 9.29% 12.27%

Return on Equity

Net Income 23090 142552 336573 559790 813394

Equity 548205 604502 835417 1267228 1927283

4.21% 23.58% 40.29% 44.17% 42.20%

Return on Assets

Net Income 23090 142552 336573 559790 813394

Total Average

Assets 373011 819364.5 1064355 1516059 2199193

6.19% 17.40% 31.62% 36.92% 36.99%



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LIQUIDITY RATIOS

Current Ratio

Current Assets 646075 815247 1181028 1763629 2470535

Current Liabilities 194932 273950 366927 472908 593647

3.31 2.98 3.22 3.73 4.16

Quick Ratio

Current Assets 646075 815247 1181028 1763629 2470535

Inventory 128867 138216 144991 152021 159401

517208 677031 1036037 1611608 2311134Current Liabilities 194932 273950 366927 472908 593647

2.65 2.47 2.82 3.41 3.89

LEVERAGE RATIOS

Debt Ratio

Total Liabilities 197817 288205 400584 528887 674986

Total Assets 746022 892707 1236002 1796116 2602269

0.27 0.32 0.32 0.29 0.26

Equity Ratio

Total Equity 548205 604502 835417 1267228 1927283

Total Assets 746022 892707 1236002 1796116 2602269

0.73 0.68 0.68 0.71 0.74



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INTRODUCTION

Hexafood Co. is committed in providing high quality food products that will

contribute in the cakes and pastry world. The daily operations of the business will be very

much concerned on the needs of the administration, employees, customers and the

environment. The proponents will consider all its actions that could help lessen the

problems regarding the society and economy for its welfare.

ADMINISTRATION

Hexafood Co. will be a responsible private company of the country wherein we

pay the right amount of taxes imposed by the Bureau of Internal Revenue. These taxes to

be paid by the business and its incorporators will help the government or the current

administration in acquiring more funds to be used in implementing government projects

and providing community programs for the wellbeing of the Filipinos.

SOCIETY

The proponents will ensure that the community can gain by using the manpower of

the country. It will acquire and give jobs to more or less five jobless people in the country

and with that, it can help the growth of the community.

ENVIRONMENT

Hexafood Co. is an advocate of environmental marketing, making the stale and

inconsumable parts of the fruits as a soil fertilizer.



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EMPLOYEES

Employees play a very huge part in the business organization and operations. The

proponents will ensure that all of its employees will receive their just and proper salaries

and compensation benefits under the Labor Code of the Philippines. Benefits of the

employees provided under the law:

Social Security System (SSS)

PAG-IBIG

PhilHealth

CONSUMERS

Hexafood Co. will ensure that its prime product Jell — Oh Cakeis affordable, safe

for mass consumption and high quality. The proponents are dedicated in providing

quality products to its customers while at the same time, creating a good customer service

relationship with its customers by giving them good quality of services that the company

can offer.



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RECOMMENDATION

The proponents recommend in innovating and discovering new ways of how to

make plain and simple desserts into new and creative way by using all of the available

products in the market that the society used for a very long time. Its creating a new and

exciting product that the masses will surely love. This study will be able persuade new

food entrepreneurs to crater into the food business.

CONCLUSION

Hexafood Co. is a newly established private organization composed of six (6)

principal members that focus on creating a new product out of the traditional way of

making holiday desserts into something new called “Jell -Oh Cakes”.

Jell-Oh Cakes, where the name simply means Jelly is a modernized dessert that

comes from graham crackers and gelatin mixture that mixes well with fruits which comes

from different flavors and sizes to choose from.

Jell-Oh Cakes production is headquartered in KM17 Alabang-Zapote Rd., Talon

II, Las Piñas City, the location has been chosen due to the number of employees and

students of Perpetual and at the same time, the residents of Manila Times Village.

Hexafood Co. aims to help the economy by giving jobs to those who are qualified

for the job description and aims to help the government in making the environment clean

and waste free.



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REFERRENCES

UNPUBLISHED THESIS

Sheenovation Co. Regine V. Batino

Jumel R. Bautista

Marcelina S. Butlig

Maria Liza D. Fernandez

Kerstin Joy A. Marquez

Angela Mae O. Villafuerte

Seams Perfect Ronnie H. Baltazar

Kimberly T. Casim


Edileen Mae P. Legaspi

Jheane Pauline C. Marquiña

Carlo E. Morallos

ONLINE SOURCES

Delp, Valorie. "History of Desserts". Love to Know Gourmet. Love to Know Corp.

Retrieved 18 October 2012 (http://gourmet.lovetoknow.com/History_of_Desserts)

Maxwell, Alexander 31 August 2012. "Desserts Shouldn't Have to Come Last"

(http://www.iowastatedaily.com/opinion/article_b72e764a-f2bf-11e1-b81d-

001a4bcf887a.html )

Mintz, Steven. "Food in America".Digital History. Retrieved 18 October 2012

(http://www.digitalhistory.uh.edu/historyonline/food.cfm)

San Francisco - News - That Was the Wit That Was (http://www.sfweekly.com/2000-04-

19/news/that-was-the-wit-that-was/ )

Dessert – Wikipedia, The Free Encyclopedia (http://en.wikipedia.org/wiki/Dessert )



88


ARTICLES OF PARTNERSHIP

OF

HEXAFOOD CO.

KNOW ALL MEN BY THESE PRESENTS

That ,we undersigned, all of legal age and residents of the Republic of the

Philippines have agreed to amend a general partnership under the terms and conditions

herein after set forth and subject to the provisions of existing laws of the Republic of the

Philippines

AND WE HERE BY CERTIFY:

ARTICLE I. That the name of the Partnership shall be

HEXAFOOD CO.

ARTICLE II. That the principal office of the Partnership shall be located at KM17

Alabang-Zapote Rd., Talon II, Las Piñas City.

ARTICLE III. That the names, citizenship and residence of the said partners are as

follows:



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NAME CITIZENSHIP RESIDENCE

Mary Anne Keith L.David

Filipino 10 Gumamela St., VergonvilleSubd.,Pulanglupa II, Las Piñas City

Mary Elaine B.

Escandor

Filipino 3 Taliba St., Mla. Times Vill., Pamplona III,

Las Piñas City

Lady Marianne D.

Mallari

Filipino Blk. 11 Lot 4 Marang St., Talon V, Las Piñas

City

YnaJesseca D.

Maniquis

Filipino Blk. 22 Lot 39 Area S, Queen's Row Subd.,

Molino, Bacoor, Cavite

Shaira O. Nadal Filipino 774 San Jose St., Manuyo I, Las Piñas City

Lie Ann M. Polidario Filipino Blk. 2 Lot 1 Ilang-ilang St., Paramount Vill.,

Talon III, Las Piñas City

ARITICLE IV. That the term for which said Partnership is to exist five (5) years from

the original recording of the said Partnership by the Securities and Exchange Commission

(SEC)

ARTICLE V. That the purposes for which said partnership is formed as follows:

1. To promote effective use of indigenous materials in support of agricultural, industry

and recycling metallic/nonmetallic products in the Philippines.

2. To articulate the concerns of disposal of waste materials in the Philippines and

creating usable and efficient product that will be valuable to customers and hence, are

eco-friendly.

3. To develop techniques and standards for the improvement of these types of products;

and,

4. To cooperate with other organizations with similar aims.



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ARTICLE VI. That the capital of this partnership shall be Six Hundred Thousand Pesos,

Philippine Currencycontributed in cash by the partners as follows:

NAME AMOUNT CONTRIBUTED

Mary Anne Keith L. David P100,000

Mary Elaine B. Escandor P100,000

Lady Marianne D. Mallari P100,000

YnaJesseca D. Maniquis P100,000

Shaira O. Nadal P100,000

Lie Ann M. Polidario P100,000

TOTAL P600,000.00

That no transfer which will reduce the ownership of Filipino citizens to less than the

required percentage of capital shall be recorded in the proper books of the partnership;

ARTICLE VII. That the profits and losses shall be divided pro-rata among the partners;

ARTICLE VII. That the firm shall be under the management of Mary Elaine B.

Escandor as General Manager and as such he/she shall have charge of the management

of the affairs of the partnership.



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ARTICLE IX. That the partners undertake to change the name of the partnership

immediately upon receipt of notice or directive from the Securities and Exchange

Commission that another partnership, corporation or person has acquired a prior right to

the use of that name or that the name has been declared misleading, deceptive,

confusingly similar to a registered name, or contrary to public morals, good customs or

public policy.

IN WITNESS WHERE OF, we have here unties tour hands this _____ day of

2015 at Las Piñas City, Philippines.

MARY ANNE KEITH L. DAVID MARY ELAINE B. ESCANDOR

TIN TIN

LADY MARIANNE D. MALLARI YNA JESSECA D. MANIQUIS

TIN TIN

SHAIRA O. NADAL LIE ANN M. POLIDARIO

TIN TIN

Signed in the presence of:

__________________________ ________________________



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BIR Registration



93




94


MAYOR’S PERMIT



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BARANGAY CLEARANCE



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SANITARY PERMIT



97


SEC RESERVATION NOTICE



98




99




100




101




102




103




104




105




106




107




108


SSS Employer Registration Form (SSS-R1)



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PhilHealth Employer Registration Form (ER1 Form)



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February 23, 2015

Certification

Dear Ms. Marilou B. Lleno:

This is to certify that the feasibility study entitled,

The Feasibility of Jell-Oh Cakes

of

David, Mary Anne Keith L.

Escandor, Mary Elaine B.

Mallari, Lady Marianne D.

Maniquis, YnaJesseca D.

Nadal, Shaira O.

Polidario, Lie Ann M.

has been edited by the undersigned.

____________________________

Prof. Rommel Antonio Mazon

AB Major in Literature – MALit



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Pre- Defense

Proponents of Hexafood Co.

The figure above shows the proponents of Hexafood Co.; from left to right: Mary

Anne Keith L. David, Mary Elaine B. Escandor – General Manager, Lady Marianne D.

Mallari, Shaira O. Nadal, YnaJesseca D. Maniquis, Lie Ann M. Polidario.



112


Pre-Defense

Panel

The figure above shows the proponents of Hexafood Co.; from left to right: (top)

Mary Anne Keith L. David, Mary Elaine B. Escandor – General Manager, Lady

Marianne D. Mallari, Shaira O. Nadal, YnaJesseca D. Maniquis, Lie Ann M. Polidario,

(bottom)Prof. Marilou B. Lleno – Adviser, Prof. VirgilioSeballe, and Prof. Rommel

Mazon.



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Final Defense

Proponents of Hexafood Co.

The figure above shows the proponents of Hexafood Co.; from left to right: Mary

Anne Keith L. David, Mary Elaine B. Escandor – General Manager, Lady Marianne D.

Mallari, YnaJesseca D. Maniquis, Shaira O. Nadal, Lie Ann M. Polidario.

Feasibility Study on HEXAFOOD CO.

Documents

Transcript of Feasibility Study on HEXAFOOD CO.