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ACKNOWLEDGMENTS
This research wouldn’t be this successful without these people who helped the researchers done
the paper. The researchers are grateful enough and thankful to all those who supported them all
throughout the said study. The following people who supported the researchers are:
First person the researchers would like to thank is the Lord Jesus Christ who gives the
researchers more strength, knowledge and courage to finish everything on time and with
Second are the families of the researchers for the unconditional love, moral support and
The third person that the researchers are thankful enough is to their Professor, Sir
Ronaldo Reyes for moulding the researchers and pushing them to the best they can to make the
best Strategic Paper at the same time for all the guidance, patience and for all the support to put
on to the researchers.
Lastly, the friends of the researchers who’ve been there to help and give the best
suggestions they can give to make this a successful one, to cheer the researchers up and who
Thank you!
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EXECUTIVE SUMMARY
The following is a business plan on manufacturing the newest product in the market,
Fumbrella. The Philippines is a tropical island, which makes it even hotter than usual especially
small organization made to manage the overall operation of the business. Fumbrella Company
established only two managers composed of business development & operation as well as the
finance. The operation made for this company is through industrial technology. Industrial
technology is the use of engineering and manufacturing technology to make production faster,
simpler and more efficient. It is a field that employs creative and technically proficient
individuals who can help a company achieve efficient and profitable productivity. The marketing
aspect made by the company focuses on the uses of Social Medias since it is rampant today. The
company made assure that all types of social medias are used in advertising the first ever
Financial Statements are projected for the next five years, it was assumed that raw
materials increases 5% per year. Depreciation was computed on a straight line basis with an
estimated useful life of 5years for the furniture and fixtures and 10years for the equipment and
machineries. The partners also projected that sales and demand would increas3e 10% per year.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT ………………………………………………………………………2
B. Location ………………………………………………………………………………6
A. Product ………………………………………………………………………………13
B. Price …………………………………………………………………………………13
C. Placement ……………………………………………………………………………13
D. Promotion ……………………………………………………………………………14
E. People ………………………………………………………………………………..14
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Chapter IV: Technological Aspect
A. Product …………………………………………………………………………..…16
I. Utilities ………………………………………………………………………………31
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I. Summary of Project
Fumbrella Company
B. Location
lease at this area for the reason that it is beneficial for us since it is accessible for
our buying & procurement and at the same time it is the area flooded by the
community.
Vision
To be the best selling & most popular umbrella company that offers the
consumers comfort like no other even when travelling under the sun.
Mission
To provide protection against too much heat and to provide comfort from the
coolness of the air that comes directly from our unique product.
Futuristic
Above and Core Values:
and
Beyond
Innovative
Above and Beyond, the ambition of the company is to rise above the
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D. Brief Description of the Product
through by a battery infused. The product the researchers made are composed of
umbrella, the main product, propeller, and a little box for electric wirings we are
also composed of batteries, wirings and also a switch. Along with the new product
built the product itself add benefit such as make the users comfortable from
It is a field that employs creative and technically proficient individuals who can
that frequently have only one thing in common. The type of organization we
centralized that all the decisions and the processes made by the different
departments will be seen by the head officer. We also want a management that
will be open for all ideas and comments or somewhat collaboration made by all
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E. Organizational Structure
CEO
Business
Finance Department Development &
Operation
Product Demand
Strategic
Communication
Hiring &
Deployment
would be composed of two departments or two managers such as Finance and Business
who would look at the management’s budget, legal advisory at the same time look for auditing
processes. Together with that, the finance department also has the billings section for the sales
and purchasing processes of the company. The qualification required for this position is that they
should have a degree with accordance with the position they’re looking at and at the same time
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with finance department specifically the position of general accountant he/she passed the board
examination or already a certified accountant. Second department is the business development &
communication and recruitment/termination. With this department, the personnel that would be
qualified in this position is that it has a degree of bachelor of science in administration major in
management since it will be based on how he/she communicates and operate the management as
a whole.
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TOWS
Strengths Weakness
Since we are the 1st company established Despite the rainy season our product
Opportunities
with this kind of product the strategy to would still work efficiently because it
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II. Economic Aspect
The target markets of this study are the commuters and those who travel or
go outside of their houses often under the heat of the sun. This includes people of
all ages from the students, employees, men, women, children and adults. In
particular, the target market would actually be the general market specifically
malls, convenient stores and product outlets/branches which is also located in the
same business area. Those people who have been using umbrellas but this time
would give them a better experience with much comfort because of the fan to
bring them coolness under the sun especially this coming summer where the
weather is expected to get hotter and hotter. Our goal is to provide them
satisfaction and the comfort that they deserve and also to make it easier for them
to travel or to commute during those very hot and restless time of the day when
market that affect all properties within that market. These factors are influenced
Economic will be affected in the sense that the purchasing power of the
consumers would depend on the economy. General market factors change over
unemployment in a region could cause office rental rates to decrease and tenant
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factor such as a particular tenant declaring bankruptcy and thus defaulting on his
or her lease.
B. Legal Factor
Legal Requirements The following basic legal requirements are needed in starting
or corporation. This would have an estimated cost of less than 10,000 pesos based
on the 0.10% of the maximum aggregate price of the securities to be offered plus
Legal Research Fee (1% of Filing Fee). DTI registration for registering the
business trade name (BTR) which is “Fumbrella”. Mayor’s business permit for
getting the license to operate in the city or municipality and payment of your local
business taxes. Before starting the operations the permit from the office of the
mayor must be complied with. This would have an estimated cost of 5,000-8,000
pesos. BIR registration for getting TIN, official receipts and invoices, registering
your books of accounts, and paying your national internal revenue taxes (Income
tax, VAT or Percentage Tax, Withholding Taxes, etc.,). The taxes expense would
be based on the projected net income of the company from the sales every month
in the year 2018 the tax expense would be P 2,031,753.66 followed by tax
expense for 2019 which is P2,303,164.86, for 2020 P2,884,805.82 ; for 2021 is
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III. Marketing Aspects
a. Product
The product that our company is going to sell is a newly designed umbrella that
has a fan that operates once you opened the umbrella. This product is designed to help the
users get the comfort that they deserve even while travelling under the heat of the sun.
Our products also have a variety of colors that would make consumer choose what color
or design they want. All other competitors offer umbrellas and portable fans separately
but we are the only one that sells a product with a dual used on just one output.
b. Price
The projected selling price of the product is P599 which is based on our
production cost. This is calculated through the expenses made and all throughout the 12
months operation. We accurately computed all the costs that are to be incurred from the
c. Placement
This product is going to be sold in retail stores, through catalogs, sales calls, Web
pages, or within the working hours telephone services that can process customer orders.
This could be met through the operations in our facility and building that has a specific
room for selling our product and also store outlets located at the malls
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d. Promotion
The promotion for the umbrella with a fan would be through social media
advertisements, pages and websites, billboards and tarpaulins. Since we would start up a
new company and introduce a new product in the market television commercials would
be too expensive that is why we would focus more on the outside or external
e. People
The people who are included in the creation and manufacturing aspect of this product
are the highly skilled workers who are trained well in the different aspects of their work
such as the design team, the electricians and other skillful workers who are assigned to
ensure the quality of our product and to improve each and every product. We intend to
get highly skilled workers by hiring people who are well experienced in this aspect of
that will produce the best overall effect relative to the needs of the advertised brand.
Media planning in general should involve optimum benefits in the long run. The media
mix, in terms of balance of usage for social and print media or other types of media
vehicles, should be such that the best utility of the advertising budget is obtained, and
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Decide Target Market
It is necessary to decide specific market where planned efforts can be directed. The target market
of our company would be the commuters. It could be students, workers, children, youth and/or
adults.
Media Objectives
To generate more sales, there is a need for the company to focus a little more on the different
advertisements such as the social media advertisements, billboards, flyers and other advertising
materials.
The media type would be Promotional Advertising media and Outdoor Advertising media.
The media mix would be 50% social media ads, 25% billboards and 25% flyers and other
advertising materials.
Allocation of Funds
The funds that are allocated for the media types or the advertisement would be P16,500
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IV. Technological Aspect
A. Products
This feasibility study is conducted to analyze and evaluate our proposed project
portable fan which, in our idea to be the first product here in the Philippines. This
product is composite of a large size of umbrella, fan which in our product will just be
an propeller to be easily folded as the umbrella being folded. Batteries are also used to
is also a systemic lever that engages, empowers and enables people to affect business
breakthroughs and deliver profound culture, system, process, product and people
faster business growth and increased business value to enable businesses to flow and
The use of this product is make the user feel fresh and comfortable since now a
day’s our climate is change. This will be a big help for this time since its summer time,
it’s hot and the only thing we need is a fan at the same time being covered by the sun.
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B. Manufacturing Process
Buy
Buy Materials
products Umbrella, battery, wire,
propeller and etc.
wires &elysee/blade
Build
Buildthe
theelectric
electricwirefirst
wiring that
that
will be put on the umbrella
Electrical test
Willthe
Will the wiring
wiring
YES NO
works?
works?
Does it work?
NO
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A flow chart, or flow diagram, is a graphical representation of a process or system that
details the sequencing of steps required to create output. A typical flow chart uses a set of basic
symbols to represent various functions, and shows the sequence and interconnection of functions
We made a flow diagram to show the sequence on how we made our production. In
building up our product the first thing that we did was to buy the needed materials to come up
with our final product. The second thing that we did is to build up the electrical wires and the
battery used to make the fan works. After that, we set the wiring, the next thing we did is
electrical testing to know if the build wires are working well. If the wiring doesn’t work well
with what we’re planning to do, we will redo again the wiring to make the fan work. As we
already knew that the wiring we made is good, we install it on the umbrella at the same time
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C. Plant Size and Production Schedule
Rated annual and daily capacity per shift, operating days per year, indicating
factors used in determining capacity. The estimated number of finished product to be produced
for the first year is 24,000 umbrellas with portable fans, which is equal to 100 products a day.
There would be 240 operating days per year, excluded here are the weekends and holidays. The
number of products that are to be produced indicated here is constitutes the factor that man
power is being used to produce and they are obliged to work for 8 hours daily so that they would
When you have a written plan and schedule, it's similar to maintaining an ongoing "to-do"
list for your business. Completing and checking off the items on your plan will help motivate
you and your employees to accomplish your project goals. Each item you complete represents a
Another benefit of planning and scheduling is that your small company is better prepared in
case of an unexpected occurrence compared with not outlining a plan ahead of time. A thorough
plan contains multiple solutions—one as the main course of action and the rest as backups to that
preferred option. If the unexpected occurs, you can then default to "Plan B" and continue
Expected production volume for the next five years, considering start-up and technical
factors. The expected volume of production is expected to increase by 10% annually. This means
that by the end of five years an estimated of less than 24,000 are to be produced.
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D. Machinery and Equipment
production and manufacturing umbrella with portable fan. The said machines and
equipment is first, the umbrella sewing machine for stitching the umbrella after
assembling the wirings. Second is the printing machine for printing and putting up our
company name. The last machine bought for the production is the packaging machine.
All our machines and equipment will be bought in China at a discounted price.
Umbrella Sewing machine- this would be used for the finishing touches of the umbrella,
Single needle lock stitch machine designed for trailers, sewing establishment and
garment industry
In addition to straight stitch it can be effectively used with special attachment for
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Stitches fine and heavy calicoes, muslin, fine linen cambric shirting, fine and heavy
silk, light/heavy woolen, khaki drill, cotton canvas, terylene, corduroy, upholstery
For stitching hosiery items like shirt, t-shirt, panels, ladies suit, skirt etc.
Printing machine- this machine is used only for the imprints of the brand’s name on each
a print medium (such as paper or cloth), thereby transferring the ink. It marked a dramatic
improvement on earlier printing methods in which the cloth, paper or other medium was
brushed or rubbed repeatedly to achieve the transfer of ink, and accelerated the process.
Typically used for texts, the invention and global spread of the printing press was one of
several areas. Owning equipment eliminates the need for outsourcing, which can often
have huge upcharges compared with in-house production along with uncertain delivery
dates that can affect not only your schedule, but also your customers’. You’re also able to
avoid the minimum quota requirements set by printing companies and print on only what
you need, which will greatly reduce your per job expenses.
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Packaging Machine
Double head umbrella packing machine is made up of stainless steel and at the same time it is
powerless operation since you’ll just need to put the umbrella down and the umbrella will be
sealed. This kind of machine is also efficient since it is easily used at the same time it doesn’t
consume any time considering that you just need to push down the umbrella. Easy operation
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Comparative analysis of alternative machinery and equipment in terms of cost, reliability,
The alternative machine to be used is the sewing machine. It would be more reliable and cost
effective than to use manual labor in sewing the canopy of the umbrella.
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E. Plant Location
The ideal place to build up the building would be at Binondo. We chose to build at that
place since it’s known to be a public market at the same time close enough to “Divisoria”. We
designated at this area since it is also convenient for us since some of our raw material would be
got from that place. We prefer to go there since we don’t have any prospect customer but rather
all people is our prospect even if your rich, middleman or not. We just want to deliver the needs
and wants of each and every consumer that would like to have a refreshing feeling while strolling
everywhere.
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F. Plant Layout
Shipping Door
The plant layout made was to be manufacturing area at the same time an area connected
with the end user. The left part is the opening door or the entrance wherein there will be a
customer service that would help consumer look for what they need. On the bottom side of the
customer service they will all see the fished product display, different designs and colors that
will get their attention. In front of the product outlet there will be a counter, an area where
customers will get the product they want and pay for the price. Lower part of it, is the stock room
for the finished product. We put the stock room beside the counter so that our people would be
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easily got the product demanded by our customers; we did this to make the payment easier at the
same time, time-efficient for the management as well as on our shopper. Inner part of the layout
is the overall processing, here you can see how our products being manage and process through
different sections such as the business development department wherein advertisement and
promos are being talked about, shipping area for those purchasers that doesn’t have time to go on
This will be our inside interior. The designed layout is more intricate and detailed interior.
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G. Building and Facilities
The building type the researcher made was a single storey building with a modern
look interior & exterior with an environmental look to make the atmosphere refreshing. The land
area would be 250 square meters and a 200 square meter floor area. The 200 square meters are
composed of different sections that would be useful on the productions such as the labor;
electrical, machineries equipment and etc. The cost of erection of the building estimated as P399,
950 that would composed the lease price and the furniture & fixtures included in the facility. The
left 50 square meters are used for the parking of our customers, trees, hedges to make the border
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H. Raw Materials
- Php60.00
- Php17.00
signals
- Php25.00
- Php7.50
- Php25.00
f. Screw - a short, slender, sharp-pointed metal pin with a raised helical thread
tightly in place.
- Php0.50
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I. Utilities
The used utility here is the usage of electrical test to assure the availability or if
the install electrical wiring works. Machinery and Equipment used for the production are also
used for the electricity. Water also used for the comfort rooms and for cleaning the area. Utilities
used in the administration or distribution are also included in our manufacturing such as the
lighting of the building as well as outside our vicinity and together with this is the cooling of the
building or the use of air-conditioner. Internet connection is also added in the utilities since it
J. Waste Disposal
In the manufacturing of umbrellas with portable fans, the waste that are needed to
be disposed are scrap fabrics that are used for the umbrella, scrap materials from metals,
fiberglass and/or wood used for the stretcher, shaft and rib, wirings, and other electrical materials
cut out from the assembling of the portable fan. It is estimated to be 50 kilograms of waste
monthly.
The waste disposal method to be used is Waste to Energy (Recover Energy) and Recovery
and Recycling:
Waste to energy process involves converting of non-recyclable waste items into useable
heat, electricity, or fuel through a variety of processes. This type of source of energy is a
renewable energy source as non-recyclable waste can be used over and over again to
create energy. It can also help to reduce carbon emissions by offsetting the need for
energy from fossil sources. Waste-to-Energy, also widely recognized by its acronym WtE
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Resource recovery is the process of taking useful discarded items for a specific next use.
These discarded items are then processed to extract or recover materials and resources or
This is not applicable due to the fact that the operations of the company is based on only one
plant.
The estimated cost of waste disposal would be around 3000-5000 monthly, inclusive of all the
There is no need for a clearance from proper authorities or compliance with legal requirements
about the waste disposal because there are no harmful chemicals or toxic materials being used in
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K. Production cost
24,000 units 26,400 units 29,040 units 31,944 units 35,138 units
Materials
Manufacturing
Packaging
Production cost
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L. Labor requirements
Operation)
General Accountant 1
Factory Worker 4
Guards 2
Cashier 1
Maintenance 2
Truck Drivers 2
The researchers made up 14 employees who are composed of the management personnel,
industrial workers, and staffs for maintenance, security, cashier and drivers. Management
personnel comprise 2 managers which are divided by the departments made, functioning as the
finance department and business development & operation. The wages of our management are
based from their experiences and credentials. The researchers also have 1 general accountant.
The industrial workers are formed of 4 employees who will be our direct laborer known to be the
electricians, packaging personnel, material holders and the quality control personnel. These 4
workers are all around workers, they will be the one who will package, connect the wirings and
identify if the product is good enough to be delivered. The rates for our industrial workers are
based from their daily works and will be based on minimum wages which is P491/day. For the
remaining 7 employees is the cashier, maintenance, guards and truck drivers. The rate of the
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remaining employees will be the same for the wages we indicated on our industrial workers but
for the rate of our truck drivers will be different since there will be no daily deliveries so we
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V. Presentation, Analysis and Interpretation of Data
The study conducted had been analyzed with the cooperation of 45 different people
known to the students, commuters and workers that are applicable with the execution of the
study. In this chapter all responses of our prospect study will be summarized in charts. The
researchers used website to conduct the said survey for the efficiency and for effective way
The first question that was asked about is if the respondents are commuters or not, with
the graph made 93.3% or to be exact 42 respondents said that they are commuters and the rest
are not. The researchers assumed that the 3 respondents that said no are along their workplace or
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The second query that was asked is if the prospect respondents uses umbrella or not at all.
The feedback that the researcher made was 93.3% with a definite number of 42 respondents
The third question that was being asked about if commuters feels sweaty under the sun.
Like the 3 questions above 93.3% responded that as they do some errands they feel sweaty under
the sun.
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The fourth question that was asked about is if the respondents have already seen an
umbrella with a fan. With the graph made, 100% said that they haven’t seen this kind of product
The number of people who are willing to try our umbrella is not a 100% and this
indicates that the company should strive harder to convince those people who are not interested
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VI. Financial Aspect
This chapter discusses the financial aspects of the study, in order for a business
plan to understand it needs money to start. To determine whether the future industry will
Financial Assumptions
AUTOMATIC
UMBRELLA
P599.00
WITH
PORTABLE
FAN
3. Depreciation expense is computed on a straight line basis with an estimated useful life of
5 and 10 years.
5. Fumbrella Company is on a cash basis method. The company record revenue only when a
customer pays for a billed product, and also records a payable only when it is paid by the
company.
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Initial Capital Requirements
The partners agreed to contribute an equal sharing of capital in the amount of
INITIAL CAPITAL
REQUIREMENTS
(in pesos)
PURCHASED OF RAW
MATERIALS (in pesos)
ITEM QNTY. UNIT AMOUNT
PRICE
MONTHLY YEARLY
(PCS) (PCS)
UMBRELLA 2,000 24,000 60
1,440,000.00
PROPELLER 2,000 24,000 17
408,000.00
BATTERY 2,000 24,000 25
600,000.00
WIRES 4,000 48,000 25
1,200,000.00
BATTERY HOLDER WITH COVER 2,000 24,000 7.5
AND SWITCH 180,000.00
SCREW 6,000 72,000 0.5
36,000.00
TOTAL 18,000 216,000 135
3,864,000.00
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Expenses
RENT EXPENSE (in pesos)
MONTHLY ANNUAL COST
30,000 360,000
OFFICE FURNITURE
AND FIXTURES
ITEM QNTY. PRICE AMOUNT ESTIMATED USEFUL DEPRECIATION
LIFE (years) EXPENSE
TABLE 10 5
1,500.00 15,000.00 7,500.00
OFFICE 10 5 2500
CHAIR 500.00 5,000.00
AIRCON 2 5
30,000.00 60,000.00 30,000.00
CABINET 4 5
S 4,950.00 19,800.00 7,920.00
LIGHT 4 5
BULB 3,000.00 12,000.00 15,000.00
TOTAL 30 25
41,950.00 111,800 62,920.00
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EQPMT.
ITEM QNTY. PRICE AMOUNT ESTIMATED DEPRECIATION
USEFUL LIFE EXPENSE
Computer 1
14,998.00 14,998.00 10 1,499.80
Sewing Machine 2
46,000.00 92,000.00 10 9,200.00
Printing Machine 1
48,000.00 48,000.00 10 4,800.00
Packaging 1
Machine 20,000.00 20,000.00 10 2,000.00
Truck 1
60,000.00 60,000.00 10 6,000.00
TOTAL 6
188,998.0 234,998.00 50 23,499.8
0 0
DEPRECIATION
EXPENSE
ITEM COST DEP
2016 2017 2018 2019 2020
FURNITURE &
FIXTURES 111,800.0 22,360.00 22,360.00 22,360.0 22,360.00 22,360.0
0 0 0
EQUIPMENT
234,998.0 23,499.80 23,499.80 23,499.8 23,499.80 23,499.8
0 0 0
TOTAL
346,798.0 45,859.80 45,859.80 45,859.8 45,859.80 45,859.8
0 0 0
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SALARIES AND
WAGES
POSITION COST PER MONTH COST PER ANNUAL
Manager (2)
50,000.00 600,000.00
General Accountant
17,000.00 204,000.00
Truck Drivers (2)
18,000.00 216,000.00
Minimum Wage Earner (9)
88,380.00 1,060,560.00
TOTAL
173,380.00 2,080,560.00
Utilities Expense
Cost Annual
Electricity and
Internet 18,000.00 216,000.00
Water
2,000.00 24,000.00
TOTAL
20,000.00 240,000.00
PROMOTIONAL EXPENSE
COST NO. OF MONTHS ANNUAL COST
Social Media OWN FACEBOOK PAGE
Billboards 20,000 5 100000
Flyer's and 500 7 3500
posters
TOTAL 20,500 103500
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RECORD BOOK 3 370.00
1,110.00
OFFICIAL RECEIPT 1 1,295.00
1,295.00
BALLPEN 50 220.00
11,000.00
BOND PAPER 1 159.00
159.00
STAPLER 2 189.75
379.50
STAPLER WIRE 10 189.00
(BOX) 1,890.00
TOTAL
67 2,422.75 15,833.50
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SUPPORTING SCHEDULE
INVENTORY LEVELS
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Fumbrella Company
Projected Statement of Comprehensive Income
As of the years ended December 31,2016-2020
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COST OF GOODS SOLD SCHEDULE
PROJECTED
DEMAND AND
SALES
DEMAND 2016 2017 2018 2019 2020
FUMBRELLA
24,000.00 26,400.00 29,040.00 31,944.00 35,138.40
SALES
FUMBRELLA
12,938,400.0 14,232,240.0 16,525,212.0 17,986,388.6 19,995,506.5
0 0 0 4 2
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Financial
Ratios
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