1.0 1.0 1.

PROJECT TITLE: Its Cookie Time! Sugar Free Oatmeal Cookies PROJECT TYPE: PROPONENTS: Food Production

3.1 Types:

Private Sector Group SEC- Registered Partnership/ Profit (Corp. /Asso.) Its Cookie Time!

3.2 Name:

3.3 Address: 2nd Floor Camiling Public Market 4.0 Coverage 4.1.1. 2nd Floor Camiling Public Market 4.1.2 Our intended market is people of all ages. 4.2 Product: Our product is cookies which refers to a small and hard, often sweetened, flour based product. 5.0 Duration 5.1 Pre Implementation: To complete all the requirements in putting up our business we need at least six months. 5.2 Implementation: We are targeting at least 2 to 3 years so that the project will be implemented.

4.1Location: Region III Province of Tarlac

6.0

Funding Requirement:

6.1 Equity: Charmaine P20,000 RegieGlaizaTotal: 7.0 Contact Person: 7.1 Name: Its Cookie Time! 7.2 Address: 2nd Floor Camiling Public Market 7.3 Phone #: 09465448416 7.4 E-mail: itscookietime@yahoo.com P15,000 P15,000 P50,000

8.0The Project 8.1. Justification Its Cookie Time! That is the name of our business. Our business will produce healthy and delicious cookies. It is just an ordinary cookie which the main ingredients is oats and honey but we assure everybody that it will change the eating lifestyle of people who will go to buy our product. It will also help the progression of the town. The government and private sector groups will help the sub sectors in advertising our product. Our product will be known in the community or it will be just like the other product in the market. By the consistency of the policy, the business will be successful. They cannot immediately notice our product because they think its just an ordinary cookie. The direct benefits with the proponents will be the profit of the business monthly and the indirect benefits will be the increase of the productivity. We all know that there are so many people who suffer from diabetes and we assure everybody that our cookies will change their eating lifestyle because our cookies will give them an extra ordinary impact that will contribute health benefits to them. By giving discounts and freebies to the customers are the strategies that we will implement in our business. The negative impact of our project to the people in the environment is they cannot easily get what our product wanted to imply. If our product will be known in our town it will help people to enhance their healthy eating lifestyle. The impacts of our product in any interested groups are they will love our product because it is sugar free and healthy. Our product will make the people realize that instead of eating junk foods or any kind of food which is not healthy, they just buy our cookies and eat it because it is healthy. Private sector groups will help to determine whether our product is really healthy and sugar free cookies. 8.2Project Description: Cookies refer to a small and hard, often sweetened, flour based product. Since it is already known in the market, the proponents innovation is to create a product by selecting healthy and beneficial food using oats plus honey and turn them to delicious sugar free oatmeal cookies. 8.3Objectives: 8.3.1. Development Objectives: Our foremost priority is to provide excellent food services to the people and surrounding community by establishing a successful enterprise. Our development objectives are establishing high quality jobs for target food service employees, including good wages and benefits, career advancement opportunities access to training and capacity building, participation in decision making and opportunities for ownership. 8.3.2. Immediate Objectives: We are looking forward that our product will be in the top of the line in healthy eating lifestyle and producing sugar free and nutritious oatmeal cookies. For five years operation, the enterprise can attain more than six branches around the country. And by making a trademark in food

industry of introducing innovated products that observes health benefit products and affordable price to the market. 8.4Beneficiaries: We are going to focus people of all ages who seek for healthy food. We are going to provide sugar free and healthy cookies. Our business will also create opportunity for those who are high school graduate who are looking for job. Our business will also increase tax that Camiling will gain. 8.5 Location:

Its Cookie Time!

The main project is located at the 2nd floor of Camiling Public Market. Busy foot traffic where the number of people who pass by the area. It is important that business will mostly rely on walk-in customers mostly students, employee, professionals and commuters in the town who will be the component of the target market including the health conscious individual and sugar level challenged persons.

8.6 Scope: 8.6.1 In creating this feasibility study, the group concentrated on the financial viability of the project as the primary concern. All business is created with the intent of making money. After this criterion is resolved, the group concentration on the design concept to make sure that the cookie stand is one of a kind. The human factor is also not forgotten, we incorporate design and management aspect that enhance the working condition of the employees above and beyond the set standards of the government. The environment impact of the project was also given quite a consideration. Materials used are environmentally friendly and various type of recycling program is incorporated in the management. 8.6.2 Our strategy will be giving 20% discount to customers who will buy 50pcs. of the product.

Another is posting of banner at least 1meter away before reaching the store. Banners in front of the store will get the attention of the people passing by the business area. 8.8 Budgetary Requirements:

Component/ Activity Putting of Equity Obtaining of Financing Registration Installation of Equipment Start of the Normal Operation of the Business 8.9 Project Analysis: 8.9.1. Competitiveness Aspect

Proponent Component (P) 15,000 10,000 5,000 10,000 10,000

From Other Sources (P) -----------

TOTAL (P) 15,000 10,000 5,000 10,000 10,000

a. The price of our product is affordable compared to other cookies of our competitors. We are able to put low price for the customers can afford to buy our product. b. Our product can be substitute for food which is rich in sugar. c. Our product can be also exported because it is healthy and sugar free. 8.9.2. Market Aspect a. Our product can assure customers that they will benefit from it because it is healthy. b. It is essential to combine the findings on the demand and supply situations. As the demand increases, the supply of the product decreases or vice versa. c. Our target market is those people of all ages. d. Our business must focus on the marketing aspect which the companies 4Ps which are the products, price, place and promotion for the successful outcome of the business. e. Selling Expenses are expenses incurred and related to making sales. The marketing/selling expenses that we think our project will encounter are sales salaries & wages, advertising, travel, rent, utilities, telephone, commissions, depreciation, office supplies, postage, etc. f. Our projected selling price for our product is 8 pesos each. In a small box it has 12 pcs. cookies worth of P100.00, in medium box it has 15 pcs. cookies worth of P125.00 and in large box it has 20 pcs. cookies worth of P150.00. g. Other basic assumptions that are included in our project are frictionless markets, rational investors, and equal access to market prices and information.

8.9.3 Technical Aspect a. If you are selling a product, your reader will want to know what it is, what it does, and its features and benefits. Consider including pictures if they would help your reader get a better understanding of your product. Discuss its size, shape, color, cost, design, quality, capabilities, technological life-span and patent protection. You may also wish to explain how it is produced, the materials required, and the type of labour needed. If you offer your customers a service, explain what that service(s) are, how they work, and what they need address in the marketplace. Where will you operate? What makes your service different? What materials or equipment is needed? What are your days and hours of operation? Explain the steps in your service process and the benefits you offer your clients. Write this section with enough information to satisfy an outsider's need to understand your service without boring them with trivial details.

b. Cookie Delight used a stall for its commercial space it has enough space to produce number of cookies and to serve customers demand. c. Operating Schedule Working Days Monday Tuesday Wednesday Thursday Friday Saturday Total number of Working Hours 8am-5pm 8am-5pm 8am-5pm 8am-5pm 8am-5pm 8am-5pm Number of Hours 9 hours 9 hours 9 hours 9 hours 9 hours 9 hours 54 hours

working hours

d. Recipes for oatmeal cookie sugar free appear in many cookbooks, and the basic ingredients are flour, honey and eggs. Other ingredients may vary depending on the recipe but may include melted butter, salt, vanilla extract and almond extract. Commercial manufacturers may also add baking soda and baking powder. e. Machine and equipment requirements are stall, microwave oven, mixer or hand mixer. Stall Microwave Oven Mixer or Hand Mixer 15,000 18,000 5,000

f. Manpower requirements of our business are baker and cashier/saleslady. g. The requirements needed for the facility and building of our business is the entire machine, equipments and other supplies to be used in our business.

i. Utilities needed in our business are water, electricity, and rental of the commercial space. j. We required that twice a month is the equipment repair and maintenance schedule in our business. k. The best method of managing waste is prevention and reduction, which can be achieved in a number of ways like recycling. l. Production Cost Product Rental Machine and equipments Utensils Packaging Supplies Supplies Registration Cost 2,500 23,000 4,210 12,000 7,100 1,190

8.9.4 Financial and Economic Aspect a. Identification of costs and benefits, and related information/ assumptions The financial analysis of our project can identified as physical goods, labour, contingency allowances and taxes. These purposes can help our project to ascertain the investment of our project. Their function is to paint a current picture of the asset that can be compared to similar businesses or predict future performance based on past performance. The economic analysis of our project also includes working capital, transfer payments and depreciation which also help our project to determine if it will be a successful one. If our business will be able to achieve our goal, it is not impossible that we can put up another branch of it and we will make sure that it will be wider than the first one.

b. Conduct of financial Analysis We conduct financial analysis so that we can determine the viability of our project. Benefit Cost Ratio is one of the discounted measure in our project proposal attempts to summarize the overall value for money. The higher the BCR the better the investment. The net present value (NPV) is the major criterion at which the financial viability of our project is evaluated to. This criterion requires that each component of our project should have a positive NPV to become financially viable since only at this point that our project can expect not only to recover the initial capital investment and to earn a rate of return equal to the discount rate, but also to receive an addition to the real net worth equal to the positive amount of the NPV. The FIRR takes into consideration the initial investments, working capital and cash inflows generated throughout the project life. The FIRR takes into consideration the initial investments, working

capital and cash inflows generated throughout the project life. The purpose of return on investment is to measure per period, rates of return on money invested in an economic entity in order to decide whether or not to undertake an investment. In Break-Even Analysis it can be observed that the cookie production component performs very well as far as achieving breakeven sales is concerned at all the assumed changes of rates in revenues and operating expenses.

Result on this analysis is summarized as follows: Selling Price per box of cookies: (Base on demand) No of box of cookies (Per annum) Assumptions Break Even Sales Projected Sales Projected Profit a P 100.00 P 150.00 b P85.00 P 125.00 c P70.00 P 100.00

Margin at Break-Even P50.00 Sales

P40.00

P30.00

c. Conduct of Sensitivity Analysis The sensitivity analysis is undertaken to determine the effect of changes of important variables in the financial projections. The following hypotheses were considered: Projected revenues increased by 30 and 50 percent. Projected costs decreased by 30 and 50 percent. Estimated interest rate reduced to 6 percent. d. Preparation of projected financial statements: Its Cookie Time! PROJECTED CASH FLOW For the year ended December 31, 2013, 2014, 2015, 2016, 2017 2013 Cash Flows from Oper. Activities: Recipients from Customers Payments to Suppliers Payments for Salaries Payments for other Oper. Expenses 2014 2015 2016 2017

804,630 90,340 96,000 85,689.92

865,900 100,500 96,000 90,000

900,100 120,900 96,000 95,800

930,800 130,650 96,000 100,100

950,000 150,000 96,000 105,600

Cash Generated from Oper. Activities Income Taxes Paid Net Cash used from Oper. Activities Cash Flows Investing Activities: Purchase of Property and Equip. Net Cash used in Investing Activities Cash Flows from Financing Activities: Capital Investment Withdrawal of the Partners Net Cash Flows from Financing Activities Net increase in cash Cash Balance, Beginning Cash Balance, End

532,600.08

579,400

587,400

604,050

598,400

5,106.58 532,600.08 574,293.42

5,106.58 582,293.42

5,106.58 598,943.42

5,106.58 593,293.42

9,210

9,210

50,000 90,000 (40,000) 105,000 105,000 120,000 120,000 130,000 130,000 135,000 135,000

483,390.08

469,293.42 483,390.08

462,293.42 959,683.50 1,421,926.92

468,943.42 1,421,926.92 1,890,870.34

458,293.42 1,890,870.34 2,349,163.76

483,390.08

959,683.50

Its Cookie Time! PROJECTED BALANCE SHEET For the year ended December 31, 2013, 2014, 2015, 2016, 2017 2013 ASSETS Current Assets: Cash Inventory Total Current Assets Non-Current Assets: Kitchen Equipment Accum.Dep.Kitchen Equip. Store Furniture and Fixtures Accum.Dep.F&F 2014 2015 2016 2017

483,390.08 483,390.08

469,293.42 469,293.42

462,293.42 462,293.42

468,943.42 468,943.42

458,293.42 458,293.42

4,210 421 5,000 500

5,000 500 6,000 600

6,000 600 7,000 700

7,000 700 8,000 800

8,000 800 9,000 900

Total NonCurrent Assets TOTAL ASSETS LIABILITIES AND PARTNER'S EQUITY: Income Tax Payable SSS Payable Phil Health Payable TOTAL LIABILITIES: PARTNER'S EQUITY Charmaine, Capital Regie, Capital Glaiza, Capital TOTAL PARTNER'S EQUITY TOTAL LIABILITIES AND PARTNER'S EQUITY

8,289 491,679.08

9,900 479,193.42

11,700 473,993.42

13,500 482,443.42

15,300 473,593.42

5,106.58 2,500 2,500

5,106.58 2,500 2,500

5,106.58 2,500 2,500

5,106.58 2,500 2,500

5,106.58 2,500 2,500

185,626.60 147,972.95 147,972.95 481,572.50

200,981 134,052.92 134,052.92 469,086.84

186,920 138,483.42 138,483.42 463,886.84

198,100 137,118.42 137,118.42 472,336.84

200,100 131,693.42 131,693.42 463,486.84

491,679.08

479,193.42

473,993.42

482,443.42

473,593.42

Its Cookie Time! PROJECTED INCOME STATEMENT For the year ended December 31, 2013, 2014, 2015, 2016, 2017 2013 483,390.08 90,340 393,050.08 2014 959,683.50 100,500 859,183.50 2015 1,421,926.92 120,900 1,301,026.92 2016 1,890,870.34 130,650 1,760,220.34 2017 2,349,163.76 150,000 2,199,163.76

Sales Less: Cost of Sales Gross Profit Less: Operating Expenses Depreciation Utensils Packaging Supplies Advertising Utilities Miscellaneous Rental Pre-tax Earnings Less: Income Tax Expense Net Income

2,400 4,210 12,000 6,000 21,081 10,000 30,000 85,691 5,106.58 302,252.50

2,400 4,210 14,000 6,500 22,100 10,500 30,000 89,710 5,106.58 764,366.90

2,400 4,210 16,000 7,000 23,000 11,000 30,000 93,610 5,106.58 1,202,310.34

2,400 4,210 18,000 7,500 23,900 11,500 30,000 97,510 5,106.58 1,657,603.76

2,400 4,210 20,000 8,000 24,800 12,000 30,000 101,410 5,106.58 2,092,647.18

8.9.5. Socio- Economic Aspect a. An economic analysis was done to determine the projects desirability in terms of its net economic contribution to the society. Data from the market, technical and financial aspects of the project study were utilized to project the economic costs and benefits of the project. Among the items considered were the resource flows emanating from the project, the externalities and other intangible effects of the project. The proposed business will create employment and income for some individuals and become part of the solution to solve the employment problem of the community. b. As a result, economic status of these people will uplift and will increase as well. Government will also benefit from this proposed business through taxes that will be paid by the paid by the company to assist different government projects. The bigger income of the business would mean a bigger tax that will be remitted.

8.9.6. Organizational/Management Aspect: a. OWNER/MANAGER Charmaine Angelica M. Acosta Regie G. Alcala Glaiza Mariz S. Ramilo

BAKER

SALESLADY/ CASHIER

b. JOB TITLE JOB SPECIFICATION JOB DESCRIPTION

BAKER

SALESLADY/ CASHIER

Male/ Female 21- 30 years old At least 1 year experience in baking Passed in Medical Examination Female 21- 25 years old Should be able to repetitious work accurately; Need basic mathematical skills; Need good manual

Bakers mix and bake ingredients to produce cookies.

Cashiers total bills, receive money make change, fill out charge forms, and give receipts at supermarkets, department stores, gasoline service stations, restaurants and many other businesses.

dexterity; Should be appearance;

neat

in

Republic of the Philippines Tarlac College of Agriculture Malacampa, Camiling, Tarlac Institute of Business and Management

A FEASIBILITY STUDY OF COOKIE PRODUCTION

Submitted by: Charmaine Angelica M. Acosta Regie G. Alcala Glaiza Mariz S. Ramilo BSBA IV-B

Submitted to: Orlando H. Locading Jr. Harold DC. Pilot Instructors