De La Salle University-Manila

3rd Term, A.Y. 2018-2019

In partial fulfillment

of the course

in Entrepreneurship

Submitted to:

Mr. Earl T. Escareal

Entrepreneurship Professor

Submitted by:

Chua, Lance Wesley C.

Galamgam, Dave Wilton M.

Montañez, Felix Gabriel S.

Morallos, Frank Lloyd T.

STEM 12-E
I. Executive Summary

Electricity is vital to the lives of people, however, this energy consumption has led to the

use of various fossil fuels. The use of non-renewable fossil fuels has negative effects as it can

lead to pollution and climate change. Solar energy is one of the uprising methods of getting

alternative energy. An estimation of 16TWh of gas and oil power generation will be replaced

by solar power between 2020 and 2025 and expected to rise to 40TWh from 2026 to 2030.

Also, for the past eight years, solar power costs have been reducing globally. (Solar Power

Industry in the Philippines, 2017). However, consumers have encountered the problem of not

knowing how much energy is still accessible while using solar energy. This leads to

inefficient use of solar power as well as not using of all its energy.

Clempire Inc. is a company that is owned and operated by four student-entrepreneurs,

namely Lance Wesley Chua, Dave Wilton Galamgam, Felix Gabriel Montañez, and Frank

Lloyd Morallos. The enterprise started as a practical research project idea, where the optimal

power obtained by a solar panel can be read and measured by an irradiance sensor and its

program. Since the entrepreneurs noticed the need for this product in the market, they wanted

to create something innovative and different from the usual solar panel installations.

With the rise of both alternative energy and technology, the group aims to take a one step

forward and introduce a much better and more efficient way of using solar installations. In

this way, the group aims to be able to encourage more home and business owners to switch to

solar energy to help in reduce global warming and use lesser fossil fuels.

Clempire Inc. will be initially funded by the group themselves, with support from DOST,

DENR, DOE, and other willing sponsors. This includes the first stocks of materials, wages of

workers and miscellaneous fees, such as utility bills and emergency money.
 II. Mission, Vision, Value Proposition

Vision

The top choice in the solar panel industry, in the country and worldwide.

The top company in making the world a better place through solar energy.

Mission

● To develop high quality solar panel installations.

● To create new possibilities with the use of solar panels and solar energy as the

main source of power

● To help rural communities obtain cost-efficient electricity.

● To provide stable jobs to company employees.

● To help the world become better by using the energy of the sun

Value proposition

Customers will have less expenses for their electricity bill due to their

electricity being provided by the solar installation. Additionally, the use of solar energy

reduces the use of non-renewable fossil fuels which cause global warming.

III. Organization Background

Electricity is significant in the daily lives of people, however, electricity

uses the non-renewable resource known as fossil fuels, which is harmful to the
 environment. Solar energy is one of the uprising methods in getting electricity without

using fossil fuels, deeming it clean and sustainable. Clempire Inc. is a corporation owned

and operated by four student-entrepreneurs, namely Lance Wesley Chua, Dave Wilton

Galamgam, Felix Gabriel Montañez, and Frank Lloyd Morallos. The enterprise started as

a practical research project idea, but soon became a business idea when the entrepreneurs

noticed the need for the product in the market, as they wanted to create something

innovative and different from the usual solar panel installations.

Refer to Appendix A for the organizational structure.

IV. People

In order for the company to be successful, it must have the right people managing and

supporting it.

● Suppliers/ Partners

Clempire Inc. will form partnerships with supplier companies in order to

have sustained amount of materials and funds. Examples would be companies that sell

materials for making circuit boards like e-Gizmo, or companies that manufacture solar

panels and sell dealer equipment, like Solaric Philippines.

● Government agencies, local municipalities

Partnership with government agencies such as the DOST, DENR and

DOE must also be done in order to have the support of the local community, as well as

additional funding.

● Investors and/or Sponsors

 People or companies that see the potential of the company. Their

investments will provide as additional funding. A potential sponsor is the De La Salle

University.

● Employees

People that are also crucial to the company are the employees. Employees

work to create the products that the company sells. The recruited and hired employees

may also need to undergo a training program.

● Customers

The people who will buy products from the company. The starting target

of the company would be in the target area which are rural tropical areas and different

power generation companies and later expand nationwide and international.

V. Market Analysis, Industry and Status

As mentioned earlier, the use of solar energy as an alternative source energy is

rising. Nowadays, due to negative effects of fossil fuels and with the rise of solar panels,

an increasing number of people are switching to solar energy to power their homes and

establishments. With that being said, the target audiences of the company are commercial

companies and household, because commercial establishments use an excessive amount

of electricity. The product will help these establishments to save money from electric

bills because they use a large amount of power for the operations it does in a single day.

Households are also the target since they are also regular consumers of electricity.

Another target audience is tropical countries, the company can take advantage of the
 location to gain more consumers in those countries, and encourage them to switch to

solar energy. And since the product is innovative and unique, the entrepreneurs expect

that the company will easily grow and more companies and household will choose

Clempire Inc.

In regards did the development of solar energy usage in the Philippines, it is

revealed according to a Dutch consultancy firm, the Philippines ranked No. 1 among

developing countries in Asia in terms of the use of solar photovoltaic systems for

electricity generation. (Domingo, 2017)

The solar power industry is growing and the solar energy industry is expected to

reach $422 billion (Php 22.2 trillion)by 2022 from $86 billion in 2015, growing at a

CAGR of 24.2% from 2016 to 2022. (Php 4.03 trillion). (Allied Market Research, n.d.)

VI. Competitive Analysis

Direct Competitors

Other companies that offer solar panel installations, as they have the same

products and may offer their own unique features. Potential competitors are SunPower,

ERA Solar, Solar Philippines, Solterra Energy, EcoSolar Industries and others. Some of

these companies offer installations that are cheaper than our product, while others include

special features in their product which ours may lack in

Indirect Competitors
 Companies that utilize and offer other forms of alternative energy for electricity,

and are in the sustainable energy market. Examples are wind energy companies like

Siemens and GE, geothermal companies like Ormat Technologies, or hydroelectric

companies like FG Hydro Power Corporation.

The advantage of Clempire Inc. against other competitors would be the

innovative and unique features compared against common solar panel companies that

helps users to efficiently use solar energy.

VII. Products and Services

The first product offered by the company is the ‘Glorified Solar System’, a solar

panel installation that comes with a solar panel, irradiance sensor, and potentiometer. The

product utilizes energy from the sun and converts it into electricity for appliances. In

addition, the product can estimate the maximum power the panel has obtained, in which

the power generated can also be regulated and controlled to the consumers own liking

and to only what they need to use at a particular time. The company also provides repair

services for defective and/or damaged products. The ‘Glorified Sun Meter’ is comprised

of the irradiance sensor and potentiometer, and is a part of the ‘Glorified Solar System’

package. The ‘Glorified Sun Meter’ reads the amount of sunlight received by the panel,

estimates the maximum power available, and lets the user control the amount of

electricity they want to receive in order to save electricity.

 Raw materials

● The product requires a solar panel for collecting solar energy.

● A solar irradiance estimator circuit comprising of 8 resistors with different values

is needed to receive and read the voltages the solar panel is currently producing

through different resistor values.

● An Arduino circuit board with LCD display and RTC to be programmed is to be

connected to the solar irradiance estimator. It enables the estimator to function

and determine the maximum power. The RTC and LCD are the extra features for

the arduino board. The RTC that will be connected to the arduino enables the

arduino to keep track of the current time, and the LCD display to display current

time and the maximum power.

● A potentiometer will be used to regulate and control the voltage and power going

into the system.

● Resistors, capacitors, and wires are additional materials to be attached to the

product.

VIII. Operations

The raw materials and equipment needed are ordered from our suppliers.

These will then be delivered into our workplace.

The facilities needed are personal computers which will be used for office

works. Also, tables and chairs, and basic and robotic tools are needed for customer

service and manufacturing, respectively. There will also be an initial cost for the
 manufacturing machines which is going to be expensive at first only since they are for

long term use.

The board of directors are needed to supervise to make decisions for the

company. This will consist of the COO for overseeing business operations, the CFO for

financial planning, managing and reporting, the Technical Director for software

developments and technological strategizing and research, and the Marketing Director for

overseeing marketing strategies.

The employees would be the positions under the COO, CFO, Technical

Director and Marketing Director, and workers responsible for assembling and installing

the products. The employees will be hired/ recruited in a job fair, and will undergo

training. For day to day operations, the company will receive the raw materials from the

suppliers and manufacture the products. The company will also continuously perform

researches and experiments to further develop and create new products. Advertising and

selling the products will also be part of operations. Lastly, delivery of products is

necessary to transport the product from the manufacturing plant to the hands of the

customer.

Refer to Appendix B and C for the operational layout.

IX. Marketing and Sales

Product

As mentioned in the previous chapter, the product that the company offers is the

‘Glorified Solar System’, which is a solar panel installation. One unique feature is that
the product can read the optimal power that the panel has received from sunlight. In

addition, the power usage of the installation can be controlled or regulated by the user.

Promotions and Advertising

The company will take advantage of the age of the internet. For

advertisements and promotions, the company will advertise through social media

platforms such as Facebook and Twitter. In the case of not having any social media

accounts, the company will also utilize e-mail address. The company will also have a

website and a mobile app for easier access, updates and for customers to learn more about

the products and the company. The company will also seek partnerships with companies

that seek the same goals for sustainable energy.

Another way for the company to market the product is to exhibit at conventions.

One example is the Philippine World Building and Construction Exposition or

WORLDBEX, which is held at the World Trade Center annually.

Place

An effective marketing strategy for the company will be the target the rural

tropical areas that would benefit using solar energy because of their climate. It can also

be beneficial to them because it gives them reliable energy if they are in off-grid areas.

An example of this strategy being used is the solar home System Program in Bangladesh

which provides the more than 16 million people (Marro, P., & Bretsch, N.,2015). Ideal

business locations would be Laguna or Tagaytay.

 Price

There are three variations of the product, each with varying wattages. The

1.62kW system costs Php 143,000, The 3.25kW system costs Php 260,000, and the

5.2kW system costs Php 420,000.

X. Impact and Evaluation

The status, goals, condition, and points of improvement of the social enterprise

will be closely monitored through regular feedback from the customers in survey form,

which can be accessed in website or product.

For social benefits, Clempire Inc. aims to provide cost efficient electricity to the

less fortunate such as rural communities with poor source of electricity. The

environmental benefit, on the other hand, is to reduce fossil fuel consumption.

Through business surveys or evaluation sheets given to the customers one

month after their purchase, will help us to know what we can improve on and help us

understand the strengths and weaknesses of the business.

XI. Risks and Mitigation

Contingency Plan

It is inevitable for every company to experience material bankruptcy so they get

as much support and suppliers as they can. The company will have 2 primary suppliers

for the raw materials, and 2 backup suppliers for each in case the primary suppliers run
 out of stock. The company intends to have the primary and backup suppliers provide the

same quality of materials of the same price in order for the company to avoid adjustments

in the original selling price and product quality. It is also important to establish close

relationships with suppliers and different companies.

In case the Clempire Inc. fails to obtain a partnership from desired companies like

e-Gizmo and Solaric Philippines as mentioned in the previous chapter, the corporation

will have other backup substitute companies to form partnerships with.

In the case of not reaching the target amount of units to be sold, for example

selling 8000 units instead of the targeted 10000 units a year, the corporation will loan

from the bank, or appeal for additional funding until the company has enough money to

recover.

In the case of a defective product, our company will use the warranty provided to

give services like repair externally or internally. Defects can come from poor quality of

materials, poor assembly of the product, or the program installed. Problems can arise

from accidents which is why it is important to make sure that the company has plans

when these problems appear. Hence the company has a contingency fund to recover.

Refer to Appendix D for the SWOT Analysis table

XII. Financials

2020
 On January 2020, Clempire Incorporated was established by a group of

students who wanted to characterize a solar pv array that will give an estimate of the

maximum power of a PV panel. With the establishment of the company, we aimed to not

just produce a PV array that can estimate but also that can control and regulate the

amount of energy that will be consumed. To obtain capital to start up the business, the

company loaned from the bank and also received funds from sponsors and government

agencies For the capital requirements, we will need a place to build the company and

factories in a big land and a place where there is a huge amount of sunlight. The reason

for this is because there are massive solar panels that when put together can occupy the

size of a field and also open areas are ideal for these panels to maximize the amount of

sunlight it can get. Areas that are not highly urbanized or some province can be

considered like Laguna. Laguna houses numerous factories even international brands

because of the wide lands available in here and we have allocated Php 3,000,000 for the

annual rent.

Regarding the materials and resources, we plan to have primary suppliers and

backup suppliers as well that is locally made. The reason for having a primary supplier is

to be able to have one place to get the materials or wherever the main supplier for a

specific material which will in turn, save us money and with that, to also build that

relationship and trust for a smooth process. Backup suppliers are needed in case the

primary suppliers don’t have the materials available. We want it to be locally made

because 1) it is cheaper than importing and 2) we are able to support local goods and

provide work for them so it is beneficial for us, for the local producers, and the country.

For the start up, we will need to build the building of our company together with the
 facilities where the first few products will be made and to conduct research for

improvements on the products.

2021

The loss of profit will decrease in the following year because the company has

already been established, assuming the business is going as planned. The utility bills will

still be around the same value which is around Php 660,000 annually as well as the

materials which costs around Php 3,000,000 per year also. The wages will also increase

by Php 4,000,000 a year due to having a more stable business and job promotions.

2022

In the third year of operations, the company will have an increase in number of

investors and partnerships due to the company's development and as well as the increase

in the market of solar energy. With more investors and companies using our products,

this will serve as an endorsement to lead more investors and buyers for our company

which will lead to opening of branches in different locations to make it more accessible

for people. Utilities will cost around the same again, and wages will increase by Php

4,000,000 yearly again.

XIII. References

Allied Market Research. (n.d.). Solar Energy Market by Technology (Photovoltaic Cells

and Concentrated Solar Power Systems), Solar Module (Monocrystalline, Polycrystalline,

 Cadmium Telluride, Amorphous Silicon Cells, and Others), Generation (First, Second,

and Third), and Application (Agriculture & Horticulture, Architecture, Transportation,

and Others) - Global Opportunity Analysis & Industry Forecast, 2014-2022. Retrieved

from https://www.alliedmarketresearch.com/solar-energy-

market?fbclid=IwAR0IrJx4SJwp8XHJCcTkJxrjyhRaasgvUBQcaVTj16aHoboO0meXr1

9_3dw

ASEAN Briefing. (2017, June 27). Solar Power Industry in the Philippines. Retrieved

from https://www.aseanbriefing.com/news/2017/06/27/solar-power-industry-

philippines.html

Marro, P., & Bretsch, N. (2015, December). Retrieved from

https://www.adb.org/sites/default/files/publication/177814/ban-making-renewable-

energy-success.pdf

Domingo, R. W. (2017). PH 5th worldwide, top in Asia in solar power. Retrieved from

https://business.inquirer.net/243407/ph-5th-worldwide-top-asia-solar-power

SWOT Analysis – Discover New Opportunities, Manage and Eliminate Threats. (n.d.).

Retrieved from https://www.mindtools.com/pages/article/newTMC_05.htm

XIV. Appendices

Appendix A
Organizational Structure
 Appendix B
Operational Layout

Further
Obtaining Product
Advertising Research and
Supplies and Transporting
Marketing and Development,
Manufacturing and Delivery
Selling Product Creating
Product Processing
Products

Appendix C
Day to Day Operations
 Appendix D
SWOT Analysis
Strengths
● The advantages that this
company have is more than just the
quality of the product and the
quality of service in installing solar
installations. the company’s
“competitive edge” is that the
product has unique innovations
and has made solar installations to
be used more efficiently.
● And as the product is new
and unique to the industry, people
would be attracted thus gaining
customers.
● Starting in a strategic
location
● Cost-efficient
Opportunities
● Competitors might be slow
Weaknesses
● The company is just
starting, has little presence and has
yet to make a reputation
● It would be risky in the
early stages since solar industry
has a very high cost for start up
and the company has limited
budget
● Still vulnerable to staff
leaving
● Small number of staff and
might require training
● Since solar panels are
expensive and for long term use,
current users might take some time
to switch installations to have their
money's worth
Threats
● A large competitor
 to adopt and have better
innovations
● Having the support of
DOST and DENR
● Taking advantage of the
location where there are less
people using alternative energy
● Taking advantage of the
trend of using Solar energy
Appendix E
Balance Sheet
Year 1
launching newer innovation of
solar installation
● Unsuccessful to meet
minimum sales
● Too much large
competitors not only in solar
industry but the whole alternative
energy industry
Year 2
Year 3
 Appendix F
Yearly Income Statement

Year 1
Year 2
Year 3
 Appendix G

Notes to Financial Statement

Note 1 - Net sales

Sales from Service rendered ₱1,742,633,333.33

Net Sales ₱1,742,633,333.33

Note 2 - Cost of Sales

Materials ₱1,568,333,333.33

Cost of Sales ₱1,568,333,333.33

Note 3 - Operating Expenses

Salaries and wages ₱16,800,000

Taxes ₱97,990,000

Rent ₱3,470,000

Utilities ₱876,700

Repairs and Maintenance ₱5,000,000

Training and seminars ₱100,000

Bank charges ₱500,000,000

Total Operating Expenses ₱624,236,700

Appendix H

Business Model Canvas

Supply Management,
Reduce Social Media, Households,
Marketing and

Selling, electricity Email, factories,

Manufacturing
costs, Exhibits house-and-
Suppliers
Reduce lot

Suppliers, Human fossil fuel Website, App, developers,

resources, consumption Company- rural
knowledge, Equity
based store communities

Wages, Transportation, Marketing, Supplies, Profit from selling products

Production, Research Development

Image source: https://141nh047iozd1l75s22eer06-wpengine.netdna-ssl.com/wp-

content/uploads/2013/02/Business-Model-Canvas-Annoted-760.png