Father Saturnino Urios University

BP. PUEBLOS SENIOR HIGH SCHOOL DEPARTMENT

Butuan City

Karylle Julia Alviola

Ferdie Buqueron

Cora Marie Cusap

Pearce Vincent Jacobe

Kathleen Libres

Gwendolyn Salomon

Faith Maan Villanueva

October 2018
 TABLE OF CONTENTS

I. Title
II. Introduction

CHAPTER I. Executive Summary

1.1 Business Background

1.2 Business Philosophy
1.3 Goals and Objectives
1.4 Core Values
1.5 Case Study

CHAPTER II. Marketing Plan

2.1 Products and services
2.2 Location
2.3 SWOT analysis
2.4 Product promotions
2.5 Direct/indirect competitors
2.6 Competitive analysis

CHAPTER III. Production plan

3.1 Production process
3.2 Equipment
3.3 Raw materials

CHAPTER IV. Organization and Management Plan

4.1 Form of business
4.2 Organizational structure

CHAPTER V. Financial plan

5.1 Balance sheet
5.2 Income statement
ii. Introduction

The entrepreneurs in the business will produce Pastries

such as Cupcakes, Cookies, and Coffee, but its highlighted
product would be Chocolate Chip Cookies and their finely brewed
Coffee. Cookies are loved and adored by many no matter the age.
Consumers are attracted to its sweet and crunchy texture. The
cookies are the main course of the business which entrepreneurs
have thought that would be simple yet give a distinctive taste
to its customers. The ingredients that the entrepreneurs
provided are high quality and reliable. Earning the consumers
trust with the fresh taste of the cookies.

Coffee originated for Ethiopia in the 11th century thus,

resulting to modern day consumption of coffee daily in order for
the people to be energized and get ready for the day. This is
also a beverage where one can just relax and have a simple chat
with friends. Coffee is usually served with hot water but we
also serve it cold. Since Philippines mostly have Hot and Sunny
weather, it is only optional for the entrepreneurs to serve Iced
beverages to its consumers.

These products are the highlight of our business because

cookies give the sentimental value of being a kid allover again
and iced coffee which gives the consumer the comfort with the
hot weather when drinking it. With both of these products
together it gives of a sweetness and bitterness taste to comfort
a soul that needs it.
 Chapter I. Executive Summary

Hug in a Mug is a coffee and pastries business which the

entrepreneurs sell pastries such as, buttered cookies, cupcakes
of different flavors (vanilla, chocolate and red velvet), but
mostly will focus with Chocolate Chip Cookies. The business will
also produce coffee such as Lattes, Cappuccinos, and Americano,
serving it Iced or Hot. The Ingredients used for the production
of these will be ensured fresh and of high-quality for a service
like no other to our customers.

The Location of the entrepreneurs business is located near

Father Saturnino Urios University with an average space that
will surely accommodate the need of space for our equipment and
staff all the while giving the customers their desired personal
space. This business will objectively make the entrepreneurs do
their work diligently and give their customers the best service
that they deserve.

1.1 Business Background

The entrepreneurs of this business have found comfort from
food in tough times, two of them being Coffee and Chocolate Chip
Cookies. Reminiscing, they remembered how coffee brought them
comfort through exam periods, and now they have found comfort
from being with their loved ones with a nice hot cup of coffee
talking about life. The name of the business, Hug in a Mug,
aspires to bring comfort to the customers with the taste of
freshly brewed coffee and freshly baked family recipe of
chocolate chip cookies, just like how these foods brought
comfort to the entrepreneurs behind this business.
 The form of this business is partnership because in our
business the entrepreneurs consist of 7 members which when
having profit or loss it will always be divided among partners.
All the entrepreneurs may contribute any fund for the business
(it may be money, property, etc.)

The nature and type of this entrepreneurial venture is

hybrid business because it consist the different characteristics
of business. We buy raw goods [inputs] and make them into
pastries and coffee [outputs] not only that but we also provide
service to our customers to satisfy them

1.2 Business Philosophy

“A mug to hug a tired soul” the entrepreneurs have made

this catchphrase for its main purpose to serve people and give
comfort to them through our coffee which the mug represents.
Coffee is said to relax one’s mind. Tired soul signifies our
customers who are searching for some good ways to freshen up
their minds and we are proud that our coffee does not only relax
minds but also the comforts the soul with every sip.

1.3 Goals and Objectives

The goals of the entrepreneurs are the following:

 To earn profit with this business

 To achieve on selling all our products to our
customers with happy smiles and good first impressions
 To bring comfort to our customers with the interiors
of our café.
 The objectives of the entrepreneurs are the following:

 Satisfy customers with our products and services

 To promote our products well with the right procedures
and tactics
 To be kind and respectful to our customers at all time
 To be diverse and innovative with our products

1.4 Core Values

Integrity - because as an employee of that business we have to

be respectful and give fairness to the customers whether the
customer is rich or poor a relative or not we have to give them
the same respect and service they need.

Authenticity - because we have to make our pastries and desserts

with the best quality ingredients for the customers. We will
also ensure that the desserts that we offer are fresh and
genuine.

Universality - because we wanted our café to be to open everyone

from all ages and all kinds of people and we will give the
people the best quality service and product of reasonable price.
 Chapter II. Marketing Plan

2.1 Products and Services

Hug in a Mug aims to provide a comforting environment to

its customers, thus, having the employees of the business to
serve the costumers the best way to let them feel they are at
home. The owners of the business will provide trainings to its
employees to provide the best it can to its consumers. The café
itself will serve as a comforting space for individuals who need
it. Through the interiors of the café, such as the furniture and
walls that provides a homey feel, it will be a comforting space
to everyone.

Hug in a Mug will produce pastries and coffee suited

for anyone’s taste buds. The business will produce pastries
such as, buttered cookies, cupcakes of different flavors
(vanilla, chocolate, and red velvet), but mostly will focus with
Chocolate Chip Cookies. The business will also produce coffee
such as Lattes, Cappuccinos, and Americano, serving it Iced or
Hot, with the option of not putting any creamer for a strong
coffee taste. The Ingredients used for the production of these
will be ensured fresh and of high-quality for a service like no
other to our customers.

2.1 Location

The location that the entrepreneurs have picked is near the

school of Father Saturnino Urios University it is a commercial
building where there is a vacant space at the 1st floor of the
building. The rent of the said vacant space is 25,000 a month,
it is quite average for a rent expense because it is located in
the city and where a lot of people pass by.
 The seating capacity of the business is 30 where there are
metal and wooden Chairs and dark brown Tables. It is equipped
with air conditioners that will surely satisfy the customer’s
need of a cool place to stay when having a break from school or
their job. The design that we’re going for a business is a cozy
home which can make the customers relax and calm. We wanted our
place to be something that people can always have a break and
enjoy their time in a warm and cozy atmosphere.

2.2 SWOT analysis

Strengths Opportunities
 Location of the shop  Buying Power
 Quality products  Social Media
 Convenient for the  Advertisements
Students
 Customer Service
Weaknesses Threats
 Unavailability of  Other Coffee shop
toilets competitors
 Unavailability of the  Pricing
kitchen
 Unavailability of the
raw materials

2.3 Target Market

Since our products are coffee and pastries Hug in a Mug’s

target consumers are primarily the students, office employees
and all the people between ages of 15 to 70 with our products
that are most likely suitable with the said age bracket. The
reason for this is that the entrepreneur’s location is near
schools and offices and the location is near the center of the
city where a bunch of people roam around.

We have also taken into account the person who doesn’t

want dairy in their coffee so in order for us to know we will
ask them first if they want milk in their coffee in order to
notice the people who want and doesn’t among our customers.

2.4 Product Promotion

These are the following promotions that we are going to

implement to our product:

Internet (Social Media) – The entrepreneurs have decided to

use this kind of promotion because first and foremost we are in
the technological age where we use internet in our daily lives
and also our target consumers are teenagers to adult people and
mostly all of them in that range uses the internet or social
media. We wanted to attract a wide range of people not only in
the physical world but also in the technological world.

Flyers – Flyers are one of the most commonly used types of

advertisement in business. The entrepreneurs used flyers because
not all people can access the internet, for us we have to
consider other people who don’t have access to the internet. To
widen our target of customers in the business

Advertisement – By the use of advertisement; radio or

television, many people will be able to notice and see our
product, the ambiance of our shop and how they will become
comfortable enough when they dine in.

2.5 Direct/indirect Competitors

To begin with, one must determine the concept of

competition in the field of coffee and pastry shop. In our
Industry our Direct Competitors are the Historya by Antigo, Bo's
Coffee, Infinitea, Bon Apptea. On the other hand we also have
our Indirect Competitors which are Dunkin Donuts, Seven eleven,
and Spin 360.

2.7 Competitive Analysis

Hug in a mug is located in a city where the streets are

always busy; it is located behind a university [FSUU] which
gives its competitive advantage. First, there are a lot of
students, teachers and other employees from other
establishments. Coffee is another trend that people could not
resist. Aside from the competitive advantage in location, we
also offer pastries to complement our coffee’s strong natural
taste this will give the flavor and uniqueness of our product.

But given that it is located in a busy street a lot of

competitors are also around. The supposed population of
customers will be divided because of the variety of choices
within the parameter. People have different preferences that
won’t give us the assurance of having all the potential
customers we could have had without the other similar
establishments.
 Chapter III. Production Plan

3.1 Production process

The procedures of baking the cookies are as follows:

Prepare the ingredients, separate the dry ingredients (Flour,
Baking Soda, Yeast, and salt) from the wet ingredients (butter,
eggs, vanilla extract, and the white and brown sugar)

Mix the Dry ingredients together

1. Brown the butter in a pan with medium heat on

2. After the butter browns, start mixing the wet ingredients,
adding a pinch of salt to neutralize the sweetness
3. After the wet ingredients are mixed thoroughly, slowly
incorporate the dry ingredients to the wet ones
4. After mixing the ingredients together, add the chocolate
chips to mix
5. Preheat the oven on 175˚F
6. As the oven preheats, prepare to ball the cookies using an
ice cream scoop to have an even batch of cookies, and put
them in a baking pan
7. Bake for 15 minutes
8. Let the cookies cool in the cooling rack and then it’s
ready to serve!

The procedures of making our coffee are as follows:

1. Brew the tagbina coffee using a coffee maker.

2. Let the hot coffee cool down.
 3. As the coffee cools down, add the evaporated milk also add
the White Sugar then stir until the sugar dissolves and the
milk mixes with the coffee
4. Finally add Ice

3.2 Equipment

The following equipment that we used in baking and making

dishes:

Oven & Stove Measuring Cup and spoons

13,495 php 313.20 php

Whisk Bowls
350.00 php 260.00 php
Containers Coffee maker
1,495.00 php 1,599.75 php

Microwave
5,500.00 php
3.3 Raw Materials

The raw materials that we used in baking and making the

beverages and pastires are:

Tagbina Coffee beans White Sugar

Hot Water Evaporated Milk

Vanilla Extract Baking soda

Eggs Salt

Flour Chocolate chips

 Butter Brown sugar

White sugar
 CHAPTER IV. Organization and Management Plan

4.1 Form of business

The form of our business is partnership because we consist

of 7 members and all of us have contributed assets that can
improve and increase the production of our business. Also, when
there is loss of profit between the mobility of the
entrepreneurs business it will always be shared among partners.

4.2 Organizational Structure

 Pearce
Jacobe
Head Manager

Gwendolyn
Salomon
Finance

Karylle Julia Ferdie Kathleen Cora Marie Faith Maan

Alviola Buqueron Libres Cusap Villanueva
Marketing Human Resource Training Scheduling Inventory

The organizational structure of the business is Pearce

Jacobe being the Head Manager of the business. He has the role
of finalizing the decisions that they have in the business and
sign the necessary paperwork [Business Permits, Projects and
etc.] that they need in order to smoothly run the business. The
salary that was given to this position is 20,000 php which is
the highest salary given in the business.

Gwendolyn Salomon will be in charge of the Finances of the

business. She will be holding the profits of the business and
will fairly allocate the money to the said necessary needs of
the business. The salary that was given to this position is
18,000 php which is the highest salary given in the business.

Karylle Julia Alviola will be in charge of the marketing of

the business. Her role is to provide out of the box ideas in
order to make good ps. The salary that was given to this
position is 12,000 php which is the highest salary given in the
business.
 Ferdie Buqueron will be in charge for looking for employees
in the business. He will be the one conducting job interviews
and look for employees on some vacant positions in the business.
The salary that was given to this position is 15,000 php which
is the highest salary given in the business.

Kathleen Libres will be in charge of the training for the

staffs in the business. She will prepare the staff to enter
trainings, Seminars, competitions for improvement of skills and
attitude in the business. The salary that was given to this
position is 15,000 php which is the highest salary given in the
business.

Cora Marie Cusap will be in charge of the scheduling in the

business. Her role will be organizing and planning the schedules
needed to have fair shift and no crossover of the said shifts.
The salary that was given to this position is 12,000 php which
is the highest salary given in the business.

Faith Maan Villanueva will be in charge of the inventory of

the business. She will be the one who checks the raw materials
and equipment’s daily in order for us to be aware of the things
that needed budget. The salary that was given to this position
is 15,000 php which is the highest salary given in the business.

CHAPTER V: Financial Plan

5.1 Financial Statement

Hug in a Mug
 Income Statement
For the Month Ended October 2018
Sales/Revenue Php 268,900
Less: Cost of Sales Php 108,563
Gross Profit Php 160,337
Less: Operating expenses Php 176,950
Supplies expenses Php 59,803. 50
Other expenses Php 1,286
Profit/Loss Php -77,702.50