EXECUTIVE

SUMMARY
 CHAPTER 1: EXECUTIVE SUMMARY

BACKGROUND OF THE STUDY

In the Philippines, the bakery industry has been on the rise. There is an increasing growth
in the production of high-end baked goods. Pastry shops had been establishing good names for
themselves by providing sweets in various forms and sizes. Along with this is the highly active
lifestyle of most people, this make them look for food that is not only delicious or affordable or
healthy, they also tend to seek for convenient foods that can suit their active lifestyles. These
attributes are certainly met by a certain form of baked good: cupcakes.
In the food industry, there is also a well-established sector for cupcakes, however, a need
for high quality cupcakes offered at affordable prices still exist. The possibility of choosing quality
over price and vice versa has been an issue that is ought to be addressed.
At present, there are a large number of well-known cupcake shops that customers
patronize, this includes Brownies Unlimited and Cupcakes by Sonja. While they have become well-
known among consumers, they still remain under the bars set by established dessert shops such
as Red Ribbon and Goldilocks. This shows that people still choose the more affordable cakes that
are obviously larger than cupcakes and can be consumed by more people.
Under this situation, the cupcake sector will remain an alternative to the more famous
cakes and other sweets like ice creams unless a major change takes place.

BUSINESS NAME
The cupcake shop will be known as Happily Ever Cupcakes. It is the name given to the
business because the proponents of the cupcake shop aims to provide a feeling of satisfaction to
every customer. This feeling of satisfaction or contentment was associated by the proponents to
happy endings. Thus, the phrase happily ever after in most of the well-known fairytales is linked
by the proponents to the word cupcakes, which refers to small cakes, designed to serve one
person and are to be baked in small cups.

JUSTIFICATION OF THE STUDY

The result of this study will be significant to the following sectors:
1. To the customers who are looking for something new about cupcakes. The customers are
assured to acquire quality product at reasonable prices.

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 2. To the investors who intend to pursue this kind of business. The proponents put together
the necessary information to be able to give the students and other readers a well
presented data for them to widen their knowledge on the operation of a cupcake shop.
3. To the management of cupcake shops. This study may serve them as guidelines for
managing their own cupcake shop and in order to formulate policies and to enhance their
management ability.
4. To the researchers. The proponents may be able to widen their knowledge regarding on
how this type of business operates.

BUSINESS LOCATION
Location: Maligaya Drive, Fairview, Quezon City

Happily Ever Cupcakes

Figure 1.1: Business Location

The proposed business will be located at Maligaya Drive, Fairview, Quezon City. The
proponents found it advantageous on establishing the cupcake shop in the said location because

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it is very accessible to customers and it is surrounded by a community and other business
establishments such as SM Fairview, Robinsons Place Novaliches, and Ayala Fairview Terraces,
which are usually filled with countless people, making it the perfect setting for a cupcake shop.

DESCRIPTION OF THE LOGO

Figure 1.2: Business Logo

Proponents agreed to name the business, HAPPILY EVER CUPCAKES and the logo for
important and obvious reasons. The cupcakes below the logo show in an animated version how
attractive the cupcakes offered by the proposed business will be, whereas, the princess at the
right side of the logo represents the Happily ever after portion of the cupcake shop.

GENERAL OBJECTIVES OF THE BUSINESS

As part of the study, the researchers have come up with the following objectives:
a. to have sufficient knowledge and ideas about the background and the operation of the
business;
b. to come up with the appropriate name for the business;
c. to create a logo that will set the business apart from others in the same industry;

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 d. to find out the methods and procedures that are appropriate to be maintained;
e. to be able to provide high quality cupcakes at reasonable prices.
f. to line up with competitors in the industry and one day, be the number one cupcake shop
in the Philippines; and,
g. to earn profit while providing the best goods and services to customers.

RESEARCH AND METHODOLOGY

The proponents used different techniques in gathering information to support the study.
1. Survey
The proponents conducted survey among 400 respondents to get their opinion
regarding cupcakes. These 400 respondents were from the present population of
Fairview, Quezon City and the proponents used the Slovins formula. The survey was
distributed among some of the residents of Fairview, Quezon City. It was used so that the
proponents would be able to know the respondents perception and preferences
regarding their business.
2. Slovins Formula
The group used the Slovins Formula to determine the needed number of
respondent.
Formula:

=
1 + 2
Where:
= the total population of the target respondents
= the margin of error which is 5%
= the number of respondents that are needed from the
population
Solution:

=
1 + ()(.05)2
360 000
=
1 + (360 000)(.05)2
= 399.6

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 3. Sampling Techniques
The proponents used the random sampling technique in gathering information
from the respondents. Surveys and interviews are conducted further to know the market
demand regarding cupcakes from the total population. Four hundred of the total
population is used in the study.
4. Survey Questionnaire.
The instruments used by the proponents are survey questionnaires in gathering
information from the respondents. It was made in a checklist form so that the
respondents will find it convenient to answer. It was used in gathering information about
the demand for the product.
5. Interview
The proponents conducted interviews on several competitors near the area in
order to obtain additional information. Managers of competitors and other business
establishments were interviewed regarding the rental payments and possible layout of
the store. They were also asked on where they get their supply.
6. Research
The proponents used the information from different libraries and surf the
internet as source of their research in order for them to gather information about the
business, the location, and other information that can help the study.

PROJECT SUMMARY
a) Market Summary
The market study was conducted within the vicinity of Maligaya Drive, Fairview, Quezon
City. Surveys and interviews were conducted in order to determine the demand for the product
in the target area. Demand, supply and sales were projected for the first five years of operations
of the business. Factors such as population growth, market acceptability, technological upgrades,
and the business capacity to supply the demand of the population are considered. Also,
competitors pricing and marketing techniques were considered. Based on the gathered data
regarding the market demand and supply, an analysis was made and it was found that the project
is feasible.

b) Technical Summary

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 Cupcakes in a variety of flavors are the main products offered by the business.
Machineries and equipment necessary for the production and serving of the products, as well as
the raw materials and other supplies were also listed with their corresponding prices and
purposes. Based on these, the proponents determined that the project is feasible because the
costs outlay on the project is projected to be recovered in the first five years of operations.

c) Management Summary
A partnership type of business will govern Happily Ever Cupcakes. The business will be
registered in the appropriate government agencies and will seek permits for operations. There
will be a store manager in-charged with the daily operations. The business has a total of four
employees and as the business grows, it is expected that more employees are to be hired. An
organizational structure is developed to create a smooth flow of operation. The project is feasible
in terms of management aspect.

d) Financial Summary
The initial investment for Happily Ever Cupcakes is P 750,000.00. This initial capital
consists of the investments of the partners and a bank loan. The return on assets will be ___, ___,
___, ___ and ___ for the first five years while the return on equity is ___, ___, ___, ___ and ___.
The payback period is within the first five years. Furthermore, the business is expected to have a
net ___ during the first year of operations. However, the capital invested will be recovered in the
next succeeding years of operations. The proponents then found out that the project is feasible.

e) Socio-Economic Summary
Happily Ever Cupcakes will contribute to the benefits of the society. It will provide jobs
for the unemployed and contribute to the funds of the government by paying taxes. It will also
support its suppliers in its income generation. Moreover, it will help promote health
consciousness and environment preservation. Thus, the project is feasible with regards to the
socio-economic aspect.

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