Chapter 1: Introduction

I. A Rationale

What used to be a poor man’s timber,

bamboo is becoming a material of choice for

many products across varying industries due

to properties that rival, if not exceed, most

commonly used material in building crafts,

furniture, and other structure. Bamboo is the

tallest perennial grass that belongs to the family of Gramineae. Due to the

long cylindrical structure of the culm, bamboo is a versatile material for a

variety of economic uses such as for handicraft and furniture, farm

implements, fish pen, fish cages, banana props, musical instruments,

pulp and paper, and house construction. Aside from these uses the young

shoots of some species are edible for human consumption (Trees and

their Management, 1992).

Straws are widely used among people

for drinking beverage, juice or other drinks.

Consumers all over the world use plastic

straws. Nowadays, manufacturers are

inclined towards the introduction of

sustainable products which reduces the

 usage of plastic. One such product is bamboo straw, thus preventing

plastics from entering and polluting the environment.

It is in this light that the proponents of this study aim to propagate

the use of bamboos, specifically its species Chinese Bamboo as alternative

material for drinking straws by selling the same to Hotels located in

Bangko Filipino, Paranaque City.

I.B About

the

Organization

B.1 Name of Business

The proponents opt to name the business Luntian Bamboo Product

Trader (LBPT). This is so since the main product to be distributed by the

organization are products made of

bamboo.

B.2 Type and Form of Business

LBPT is in the form of Partnership

which the law defines as “A contract of

two or more persons who bind themselves to contribute money, property

or industry to a common fund, with the intention of dividing the profits

among themselves” (Art. 1767, NCC). The reason for such is that, ts form

of business is generally easier to establish, and requires lesser

formalities as compared to a corporation,

because the corporate by-laws must be

considered at any given time. The

organization will venture on a trading

industry.

In addition, the company will fall under the Barangay Micro

Business Enterprise category under Republic Act 9178which gives the

members the following benefits, among others:

1. Income tax exemption from income arising from the operations of the

enterprise;

2. exemption from the coverage of the Minimum Wage Law;

3. priority to a special credit window set up specifically for the financing

of BMBEs;

4. and technology transfer, production and management training, and

marketing assistance programs for BMBE beneficiaries

Note: Benefits one and two would be capitalized most.

B.3

Company Logo
 The LBPT logo portrays mother earth. Wherein, by simply

distributing bamboo products to individuals, we can help save our

mother earth.

The round shape is the belief of the

organization, i.e. gaining profit can be

accompanied by with an intention to help the

planet where we live as well as its inhabitants.

The green bamboos inside the circle represent

main component of the company-products,

bamboo. In a word, going-concern!

B.4 Company Vision and Mission

Vision
Luntian Bamboo Products Trader envisions itself to be the leading

distributor of bamboo products here in the Philippines, and be an

advocate of a greener environment.

Mission
 Driven by the will to serve, Luntian Bamboo Products Trader commits

itself to distribute to the customers bamboo products of outstanding

quality for the benefit of the users and for mother earth.

B.5 Proponents

The proponents of this study are

Jeremy Grant Ambe and April Joy Nolasco,

both in their fourth year (4th) of study as BS

Accountancy students. The two are adept to Accounting, Bookkeeping

and knowledgeable in the field of Taxation and Commercial laws and

ultimately, have a good sense of knowledge with marketing and running

a business.

Chapter 2: Marketing Aspect

2.1 Description of the product

Our pilot product is reusable Bamboo Straw used to savor one’s favorite

beverages! Aside from being capable of being used repeatedly, our product this

particular straw is hygienic. This is so because it is primarily made from

Bamboo which is considered to be anti-microbial in nature.

 Based on the published article of Journal of Family Ecology and

Consumer Sciences, bamboo viscose fibers have a unique antibacterial quality

due to an antimicrobial bio-agent called “bamboo

kun” which is found naturally in living bamboo fiber.

This “kun” supposedly makes bamboo a naturally

antibacterial, antifungal and odor resistant fiber. This

jibes with the findings of Center for Material and

Fiber Innovation, Institute for Technology Research

and Innovation, Geelong Technology Precint, and Deakin University in

Australia.

The species of bamboo used to produce our bamboo straw is Chinese

Bamboo (Bambusa vulgaris) which is characterized by its distinguishably

golden-yellow color. This plant grows up to 9.3m high with a diameter of 5-15

cm. Its slender culm fits for use as straws. This bamboo normally grows along

riverbanks particularly in Tropical Asia like the Philippines. Straws made from

this material are durable and could last for at

least a year if properly used and cared,

according to Kombucha Kamp, a pioneer in

Bamboo straw industry. Hence, you can use it

again and again!

It is to be emphasized that our bamboo

straws don’t have fix diameter or thickness

because each bamboo is unique and it didn’t

come out from a product-mold. Its length however is quantifiable that is ten

(10) inches.

2.2 Comparison of the Product with its Competitors

How does it compare in quality and price with its competitors? Luntian

Bamboo Products Trader has identified three competitors that will become its

main competition, to wit:

First are plastic straws companies. These manufacturers specialize in

making and distributing straws made from thin tube of paper plastics. The type

of straw they manufacture is the pioneer in the drinking straw industry,

worldwide. In Metro Manila alone, there are at least five (5) huge companies

that produce and distribute plastic straws; these are, among others, Precision

Master Technology Incorporated, Larone Crafts Incorporated, Sanko Plastics

Philippines Incorporated Plastic Consumer Corporation and Donewell

Corporation. They sell their straw products at a

minimum price of Thirty Pesos (P 30.00) per

pack, ranging from 80-100 each. Majority of

retail stores, cafeterias, restaurants and beverage

shop patronize plastic straws because of its easy

availability in the market.

 Second are companies engaging in manufacturing and selling reusable

metal straws such as: Sip PH, Eco Spot, Gubby and Hammy, Ritual Trading,

Eco Sip, Go Zero and Recovery PH. Their product alongside Bamboo Straw was

one of the answers to various advocacies to halt the use of traditional plastic

straws due to its adverse impact to

environment, and to the numerous city

ordinances regarding plastic bans. Cities in

the Metro Manila such as Makati, Quezon,

Pasig, Muntinlupa, Las Pinas and Pasay are

among those who said no to plastics. The

said metal straw distributors and

manufactures sell their straws at prices

ranging from One Hundred Pesos (P 150.00) to Two Hundred Fifty Pesos (P

250.00) per package, i.e. inclusive of pouch and cleaner.

Third are other bamboo straw sellers and distributors.

As regards to Plastic Straws, our Bamboo Straw is superior as to safety

sustainability, and far more eco-friendly!

Plastics straws, when immersed with hot substance, become significant

ingredients of the beverage giving it a bad taste. These also serve as a medium

for toxins to leach since polypropylene and polystyrene are its main

components. Eventually, these materials could intoxicate a person when

exposed too much. Our Bamboo Straw, on the other hand, is safer and more
hygienic due to anti-microbial property inherent to it .Using a natural, organic

straw made from bamboo eliminates the potential for ingesting chemicals and

bacteria without compromising the quality of experience of having a good sip

from one’s drinks.

As to sustainability, Bamboo Straws also surpass Plastic Straws by a

long stretch. Since the former is reusable, it can be used repeatedly again and

again, with proper cleaning, unlike plastic

ones. Straws made from bamboo are also

economical since it precludes users from

buying straws every single time. A single

bamboo straw could last for at least six

months or up to several years!

From an environmental stance, on the

other hand, reusable Bamboo Straws will

begin to compost the moment you decide it’s

ready to go back to nature because of its

organic nature hence reducing pollution and

mass in landfills. Plastic straw, on the other hand, can take thousands of years

to break down into small pieces and will never completely disappear!

As regards Metal Straws, our Bamboo Straw product still surpasses the

former in terms of safety and eco-friendliness!

 Like Plastic Straws, Metal straws, also react

when immersed with hot substance, become

significant ingredients of the beverage giving it a

nasty taste. Also, since this type of straw is

generally made from metal like nickel and

aluminum, there is the presence of danger -

damage to teeth when accidentally bitten

especially by children!

In addition, having metal as its main component, it will still make an

adverse effect to the environment especially in mining and excavating the

metals needed to produce these straws. In a way it defeats the purpose of

alleviating the continuous deterioration and pollution of Mother Earth.

As regards competition with other sellers of Bamboo Straws, while our

products are the same in all material respects, our assurance of quality is our

cutting edge. Each product will be inspected before delivery to ensure that only

the best will go to the vendee’s hands for a cheaper price!

2.3 Location

Our business address is, #8 Grace Street, Remmanville Executive

Subdivision, Betterliving, Brgy., Don Bosco, Parañaque City. This is so because

no manufacturing or processing will be done. Ergo, this is allowed inside the

village. Of the 220 square meters lot area of the address aforementioned, 50

square meters would be devoted for the business with a monthly rental of P

3,000.00. The cheaper rental is given the outmost importance in considering

the space
2.4 Market Area

The target geographic area will be the whole City of

Paranaque.Basing on the data provided by the local

government of the City of Paranaque’s website, the

population is in excess of 500,000.

2.5 Main Customers

The main target customers identified by the proponents are

students of Public High Schools and Elementary Schools within Paranaque

City. As provided by the city website, there are 25 public high schools and 25

public elementary schools.

Secondary markets identified are other residents of Paranaque City not

included in the foregoing.

2.6 Selling Price

The price of our Bamboo Straw would be Php 25.00. A very affordable

price!

Costing Php
Bamboo straw 10.00
Packaging 1.00
Shipping & Expense 1.00
Commission 1.00
Unit cost 13.00
Markup (92%) 12.00
Selling price 25.00
2.7 Sales Forecast

Hereinbelow are the forecasted sales for the years, 2021 through 2023.

This table shows the projected sales annually for the first three years

of operations. In the 1st year of operation the projected sales, came from

nine hundred sixty (960) units of bamboo straw per month which is a very

conservative estimate, multiplied by the selling price of twenty-five pesos

(Php 25.00) per piece of Bamboo Straw which equals to twenty-four

thousand (24,000) pesos per month then multiplied by twelve (12) months.

The projected sales is two hundred eighty-eight thousand (288,000.00) in

the 1st year of operation.

In the 2nd year of operation, the projected sales came 40% potential

market to be captured by LBPT, i.e. (10 sections per level in high school

multiplied by average number of students of 40 times the number of level, 4

multiplied by the target schools monthly, 2) then multiplied by the price of

(Php 25.00). The projected sale in the 2nd year of operations amounts to

three hundred eighty-four thousand pesos (Php 384,000.00).

In the 3rd year of operation, the projected sales came from 50% of the

potential market to be captured by LBPT mentioned above. The projected sale

amounts to four hundred eighty thousand pesos (Php 480,000.00).

2.10 Promotional/Marketing Measures

2.10.1 Promotional Objectives:

 To promote the and create awareness to the product;

 To create repeat customers by meeting their standards;

 Strengthen communication with the target market;

 To attract customers;

 To successfully promote the product;

 To achieve the forecasted sales;

2.10.2 Promotional tools

In order to make the product known to its target market, the

proponents have identified three several advertising and promotion

activities, to wit;
  Tarpaulins. This will be placed in front gate of the village where the

business resides .This will include the following information:

Product and customization available

-Price list

- Company address and contact number

- Company Slogan

 Making use of the Pipe line/Word of Mouth

 Intensive use of Social Media platforms (Facebook, Instagram and

Twitter.)

2.11 Marketing Budget

In order to properly execute the foregoing marketing plan, the company

would be appropriating a one-time yearly budget of Three Thousand Six

Hundred Pesos (Php 3,600.00) for tarpaulins.

Chapter 3: OPERATIONAL PLAN

2.1 Procurement Process

2.1.1 How Bamboo straws are made

Luntian Bamboo Products Trader is a business venturing in

trading operations. Ergo, no production process would be involved. The

only pertinent activity of the business is to purchase inventory from

various suppliers to be use for distribution activities. Even so, to ensure

that the products to be distributed by the organization are of outstanding

quality, the latter opted to know directly to the suppliers how they

manufacture their Bamboo Straws.

As provided by the suppliers, the series of process they follow are as

follows:

Step 1: Our bamboo stalks are harvested when they reach a height of

approximately 3 meters.

Step 2: The bamboo stalks are then dried using drying machines, until
the stalks have hardened into a timber like material.

Step 3: The bamboo stalks are then trimmed to size, before being hand

sanded and cleaned.

Step 4: The final step is to soak the bamboo straws in vinegar, before

being cleaned a final time and the coconut oil polish is applied.
 2.1.2 Materials Procurement

Material Procurement Process

Bamboo straws, pouch & cleaner

Start

Contact Supplier Contact suppliers and make purchases; to be done every third
Friday of the month to provide allowance for 7-day lead time.

Receive goods After 7-day lead time, goods would be delivered.

Random inspection is to be made to ensure quality of the straws

Inspect / Sample received/delivered. Any damaged goods would be returned.

Record Record the goods in the inventory records for accounting & related
goods purposes

Store Goods Store the goods in the warehouse for eventual delivery

End
 2.1.3 Distribution

Operation Process/ Distribution:

Start

Load the straws Place the bamboo straws inside the delivery vehicle rented.

The goods would be brought to the schools for distribution.

Deliver to the
vendees place

Record the sale

&decrease on
After the transaction, the partner in-charged with finances would
inventory
record the sales and corresponding decrease in inventory

End
2.2 Fixed Capital

The partners have identified several properties, pieces of furniture and

equipment necessary to sustain organizational operations. As agreed, the

partners opted to invest to the company fixed capital amounting sixteen

thousand pesos (Php 16,000.00) to be done as part of the organization’s initial

capital. These investments are estimated to have an average useful life of at

least 5 to 10 years. The purchases that the partners will make are brand new

products to ensure longevity of use and no cost, if minimal, for repairs and

maintenance.

The working capital, after a careful deliberation has been made, the

partners amounted to twenty-four thousand pesos (Php 24,000.00) just enough

to cover pre-operating expenses, initial inventory and expenses. The total

capital of LBPT at its inception will be Php 40,000.00.

Table 3.1 Electronic and other Office Equipment

Equipment Specification Quan Cost/Value Amount

tity (PHP) (PHP)

Laptops Asus 1 5,000.00 5,000.00

Screen size: 14.5”
CPU:Intel Atom *at agreed
N2600(1.6 GB)
Memory: 2GB DDR3 value
Memory
Battery: 3-Cell li-on
battery

Calculators Standard 1 500.00 500.00

Cellular Phones Vivo Y69 1 5,000.00 5,000.00

*at agreed

value
Electric Fans
Dowell SF STF8-
218B 1 500.00 500.00
16 inches, stand fan
Model: STF-167B
Color: Red
Power
consumption:
60W60W
Material: Durable
and high quality
material
Motor: Powerful

Total 11,000.00
Table 3.2 Furniture and Fixtures

Furniture/Fixtures Specification Quantity Value/Price Amount

(PHP) (PHP)

Executive Office
chairs and tables 1 3,000.00 3,000.00
with drawers &
lock

Filing Cabinet

Tailee Furniture 1 2,000.00 2,000.00

ST- 400 BDF 4
Layer Utility
cabinet organizer
with lock and
door.
Size: (L x W x H
cm)
118cm x 41cm x
30cm
Weight: 13Kgs

Total 5,000.00
2.3 Life of Fixed Capital

After a thorough consideration of the foregoing fixed capital investments,

the estimated useful lives are estimated to be at least 5 to 10 years.

Conservatism is one of the considerations employed so as not the make the

estimates unreasonable. The degree and frequency of usage are also noted.

2.4 Sources of Fixed Capital

The partners, prior to the inception of business operations have made

due diligence and effort in making their purchases. A number of stores are

identified for these. Quality, price and proximity are the elements considered.

The sources of Equipment as identified are as follows;

Table 3.4 Sources of Fixed Capital

Merchant/Store Fixed Capital to be Contact / Address

purchased

Home and Office Office Tables, Chairs, Home and Office Furniture
Furniture and Filing Cabinet Dr Arcadio Santos Ave.,
Paranaque, 1700 Metro
Manila

Telephone: 829 4330

Abenson Electric Fan Jaka Plaza

National Bookstore Calculators SM Bicutan

2.5 Planned Capacity

Table 3.5 Capacity

Purchases Volume

Monthly 1000 Pieces of Bamboo Straw

Annually 12,000 Pieces of Bamboo straw

The above table portrays the planed capacity of LBPT at its first year of

operations. This was deemed necessary in order to sustain the business, i.e. to

cover all cost associated and make profit, if sold.

2.6 Future Capacity

The partners agreed that the future capacity would be increased by 10%

annually relative to the preceding year capacity. By the fifth year, the

warehouse would be expanded in order to accommodate the increase in

capacity. Procurement of additional labor and, security measures will also be

taken consideration for these are incidental yet vital to ensure that the planned

increase in capacity would thrive.

3.7 Office and Storage Layout

Figure 3.1

The above figure shows the possible set-up of the headquarters of the

business.
2.8 Merchandise Inventories and Prices

The following are the merchandise inventories needed in order to

facilitate the business operations:

Table 3.6

Merchandise Specification Prices

Bamboo Straws Length: 10 inches Php 10.00

External Diameters:

11mm-13mm (medium; for

shakes and juices with

herbs, pulps, an sago)

14mm and above (jumbo/

pearl tea straws)

Ribbon (green) 100% Polyester Php 7.00/yard

 Bond Paper Ultra white bond paper. Php

500.00/ream

2.9 Merchandise Availability

The merchandise can be bought from various suppliers. After exercising

due diligence, the partners identified the suitable vendors for the inventory

needs of the business, to wit:

Table 3.7

Merchandise Supplier (s)

Bamboo Straw Misty Bamboo Products

Batac, Palawan City, Palawan

ECO SHOP PH
Reliance St., Mandaluyong, Metro
Manila, Philippines 1550
 Contact Number: 0956-058-3010

Contact Number: 0925-887-2880

KAWAY BAMBOO STRAW Sapang

Kawayan, Norzagaray, Bulacan

Contact Number: 0917-836-5023

Tutuban Mall in Divisoria, Manila

Ribbon and Bond Paper City

For cost minimization and value- for- money, the partners agreed to buy

in bulk in and will arrange for free delivery of goods in future transactions if

that is feasible.

2.10 Labour

On the outset, the partners are the employees themselves. One of the

partners proposed that since the operation is still manageable, it is prudent

that the task of hauling the merchandises, inspecting, repacking and

marketing of the LBPT Bamboo Straw product will be handled by each of them

according to the agreed given task. There are two (2) partners and all of them

must and be able to deliver the said assignment.

2.11 Cost of Labour

The partners also agreed that they will receive commission based on the

number of Bamboo straws that would be sold.

2.12 Labour Availability and Labour Productivity

Since all the partners are committed to the success of the business

organization, the harmonious relationship of the partners must be ensured

alongside productivity.